Hair Product Line

How Profitable Is A Hair Product Line? (Updated for 2024)

Pat Walls

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Updated: October 6th, 2024

How Profitable Is A Hair Product Line? (Updated for 2024)

So you want to start a hair product line?

And the first question that came to your mind was, “well, are hair product lines actually profitable?”

Especially considering:

You could start a hair product line with as low as $3
Based on our data, hair product lines generate an average of $3.83M per year
You could see gross margins as high as 9% with hair product lines

There’s money to be made. Don’t worry.

But, I don't want to spoil it all. Below we’ll cover everything you need to know when it comes to the profitability of a hair product line.

Let’s dive in!

Is a hair product line profitable?

Yes, a hair product line is generally a profitable business. However, you still need to consider several factors since these things always impact the overall outcome.

For instance, since average revenue is $3.83M per year with an estimated gross margin of 70%, you could expect to recover your investment within 10 months or even less.

But of course, it all comes down to how much you earn compared to the potential revenues of your hair product line.

To determine whether your business is profitable, you should earn more than your expenses in the beginning months. However, while you're in your first month, it can be challenging to know what to expect.

Therefore, you should maintain a record of your monthly expenses and income to determine whether you're meeting your goals. By doing this step, you can see how your hair product line is doing and if any changes or adjustments need to be made to enhance or maintain your efforts.

Is a hair product line worth it?

If you’re wondering if a hair product line is worth it, the answer is a big YES. With hair product lines, you have the potential to earn $3.83M per year (this is based on data reported by real founders).

Further, you could have your initial investment back within months. Simply put, it’s a business worth a shot, especially if you have the resources and make the necessary efforts to achieve or surpass the target.

With a market size of $, it will be possible for you to build something that grows and turns into a flourishing business. As such, it’s the type of business you might want to consider starting.

Of course, you must learn and understand every aspect of running a hair product line to ensure success. Still, as long as you have the initial investment and can endure a few months before your actual gains, this business could be worth it.

You might want to consider reading more specifics about successful hair product lines case studies.

Examples Of Profitable Hair Product Lines

Here are a few examples of profitable hair product lines, and a few more details about them:

1. Urban Betty ($6.6M/year)

Chelle Neff, founder of Urban Betty, started her business by opening her own brick and mortar salon after five years of being in her own salon suite. She gradually expanded her team and transitioned from contractors to all commission-based employees. Eight years later, Urban Betty has two locations and over 50 employees, generating $3.3 million in revenue.

Is it profitable? Yes
What's the gross margin? 9%
How much money it makes: $6.6M/year
How much did it cost to start: $69.9K

How I Went From Hairstylist To Running My Own $3.3M Salon Business

This case study follows the founder of Urban Betty, who started her salon business with only one contractor, and now has two locations with over 50 employees, growing from 1.5 million to 3.4 million in revenue from 2014-2018, and investing around 2% of its gross income every year in Yelp, Google, and Facebook Ads.

Read this case study

Read by 21,639 founders

2. Antonio’s Barber Shop ($1.5M/year)

Antonio Camilleri, a seasoned barber with over 18 years of experience, opened his first barbershop in Leister, UK, after working as an apprentice and further improving his skills in the Netherlands. Recognizing a gap in the market for old-school barbering in Malta, Antonio moved back and opened the official Antonio's Barber Shop with 8 chairs, quickly growing to 14 barbers across 2 locations. With an annual turnover of 1.5 million euros, Antonio's Barber Shop offers top-notch customer service, a range of grooming products, and a barbering academy.

Is it profitable? Yes
How much money it makes: $1.5M/year
How much did it cost to start: $500K

How I Started A $125K Barber Shop, Beard Grooming Brand And Barbering Academy

Antonio Camilleri built Antonio's Barber Shop from a small two-chair operation to two locations servicing over 250 daily clients and €1.5M in annual revenue with a product line generating a 30% profit.

Read this case study

Read by 8,677 founders

Learn more about starting a hair product line:

Where to start?

-> How much does it cost to start a hair product line?
-> Pros and cons of a hair product line

Need inspiration?

-> Other hair product line success stories
-> Marketing ideas for a hair product line
-> Hair product line slogans
-> Hair product line names

Other resources

-> Hair product line tips

How much can you make with a hair product line?

With a hair product line, you can make an average of $3.83M revenue per year (based on data reported by real businesses).

You can start with an initial investment as low as $3. Then, with proper knowledge and sustained effort, you could have an ROI (return of investment) within 10 months.

How much does a hair product line make a week?

Based on our data, average weekly revenue for a hair product line ranges around $79.8K. As such, you could see monthly revenues of $319K.

To know if your hair product line achieves the weekly profit target, you need to keep track of the total earnings you get per day. Afterward, you'll want to consider subtracting the expenses you have daily.

Learning your weekly profit can also show whether you're hitting your target goal for your hair product line.

How much do hair product lines owners make?

The income of a hair product line owner can vary depending on various factors such as location, size, competition, and the owner's business skills.

But to give you some idea, the weekly revenue of an established hair product line is about $79.8K. But this can be lower or higher depending on so many factors - it's almost impossible to say exactly.

While the potential for earning a good income as a hair product line owner exists, success in this field requires a commitment to providing quality products and services and building a strong reputation within the community.

Hair Product Line Profit Margins

Generally speaking, a hair product line can expect profit margin of around 70%. Profit margins refer to the percentage of revenue that remains after deducting all expenses associated with running a business. In the case of a hair product line, profit margins can vary depending on various factors, such as the type and quality of products sold, the size of the store, and the level of competition in the area.

However, these figures can vary depending on the pricing strategy, inventory management, and overall efficiency of the business. To maintain healthy profit margins, hair product line owners must focus on managing costs, negotiating favorable supplier terms, and providing high-quality products and services to attract and retain customers. By doing so, hair product line owners can ensure long-term sustainability and profitability for their business.

Hair product line owner salary

The salary of a hair product line owner is an unpredictable figure. It's significantly influenced by numerous factors, including the store's location, its size, and the degree of competition. An owner of a well-established hair product line, in a prime position, might see an average weekly salary around the ballpark of $55.9K.

But it's worth noting, such numbers aren't always consistent. The earnings can vary wildly, potentially swinging by as much as 80% either way.

Achieving consistent success and maintaining a reliable income stream in this industry requires a deep commitment. It's imperative to offer high-quality products, deliver impeccable customer service, and nurture a trusted bond with the community you serve.

Conclusion

In a nutshell, based on many of our examples, a hair product line may be a promising business to start - but the success of your hair product line mostly depends on your effort and your approach.

If you focus on these, you'll have a much higher chance of a profitable hair product line.

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Starting A Hair Product Line: Everything You Need To Know

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