How Much Does It Cost To Start A Hair Product Line? (In 2024)
Looking to start a hair product line?
But curious about:
- how much it costs to start a hair product line?
- what are the typical hair product line startup costs?
- or the actual cost of starting hair product lines?
Well, we have the data to prove it, supported by real hair product lines and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a hair product line?
Based on our data reported by actual hair product line founders, the average cost of starting a hair product line is between $3 and $5,000,000.
Additionally, our data shows that the the median startup costs for a hair product line are around $30K.
Remember, though, not all hair product lines are the same - and neither are people's budgets. It's important to distinguish between different levels or types of hair product lines
Real World Examples: How much does it cost to start a hair product line?
We asked real hair product line founders and business owners how much it actually cost to get started?
Here is what they said:
Chris Healy
Founder of The Longhairs ($100K/month)
"All told we invested over 1,000 hours each and $10K in the first year, before we ever made a dollar. But we believed."
Chris Healy and Lindsay Barto are the founders of The Longhairs, a business that started in 2014 and is known for Hair Ties For Guys™.
Nathan Failla
Founder of PocketGel ($2.5K/month)
"When I graduated I took all the money that I had set aside in order to start paying my loans off and used that to start my own on the go hair care styling company for travelers, bikers, and everyone who needs their hair styled away from home."
Nathan Failla is the founder of PocketGel, an on-the-go hair care company that aims to provide hairstyling solutions for travelers, bikers, and anyone needing convenient hair care options away from home.
Mikey Moran
Founder of Private Label Extensions ($650K/month)
"When I first got into the industry I was broke, recovering from a previous business failure. We invested only $28,000 in total to get started. I borrowed my half from my mom and have since paid her back."
Mikey Moran is the founder of Private Label Extensions, a hair distribution and technology company that helps entrepreneurs build their own hair brands.
Leslie Wheeler
Founder of Bristle Products- L. Archie Brands LLC ($550/month)
"I am self-funded at this stage, I started small, my team and I create our own labels and we support a local plastics manufacturer here in Detroit for all my packaging."
Leslie Wheeler is the founder of Bristle Products, an all-natural haircare product line inspired by her extensive experience as a hairstylist.
Becky Bavli
Founder of T is for Tame ($120K/month)
"We started the company with $5,000 from personal savings and a small loan from family."
Becky Bavli is the founder of T is for Tame, a baby hair care products business that started in 2018.
Mia Fiona Kut
Founder of Luna Nectar ($50K/month)
"I had started off as a chemistry major before pursuing film, so I researched for a year and a half and with $5000 out of my savings, worked with professional labs and chemists to develop the natural alternative to the adverse brow and lash enhancing product, and created the Moon Boost Lash & Brow Enhancing Serum."
Mia Fiona Kut is the founder of Luna Nectar, a sustainable hair density and haircare products business that launched in 2019 and has since achieved significant sales milestones, including making $100,000 in its first year.
Chelle Neff
Founder of Urban Betty ($550K/month)
"My first salon build-out was 70K, the second was 110k, the renovation on the second space was 70k, and this latest buildout was 200k."
Chelle Neff is the founder of Urban Betty, a salon business that has grown to two locations with over 50 employees.
Reid Simkovitz
Founder of Scruffie ($2K/month)
"The majority of my savings went towards the patents so I had to raise money through various sources to fund the first round of production which came out to $17,000."
Reid Simkovitz is the founder of The Scruffie, a business that started in 2020 offering an innovative neck shaver product.
Antonio Camilleri
Founder of Antonio’s Barber Shop ($125K/month)
"The business financials were self-injected, I took a small bank loan to get started and reinvesting profits to keep the business growing at a steady pace."
Antonio Camilleri is the founder of Antonio’s Barber Shop, a barbering business that opened in 2015 and currently operates with 14 barbers across two locations in Malta.
Oluremi Martins
Founder of Natural Girl ($30K/month)
"The total cost to start was about $3 which was the cost of purchasing the materials needed to create the prototype wig."
Oluremi Martins is the founder of Natural Girl Wigs, a hair brand that creates textured hair extensions and protective styles for black women.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful hair product lines that you can learn from.
Starting a hair product line - what you should know:
Embarking on the journey to start your own hair product line involves numerous factors that can significantly impact your budget.
Product Development Costs
The cost for formula development can vary widely. Custom formulations may cost between $5,000 to $15,000 depending on the complexity and number of products. Off-the-shelf formulations are cheaper, starting around $500 to $5,000. Stability testing and safety assessments will add another $1,000 to $3,000 per product.
Packaging and Design
Investing in packaging is vital, and costs can add up quickly. Custom-designed packaging ranges from $2,000 to $5,000 per product line. Stock packaging, which is more economical, might cost you around $1 to $3 per unit. Additionally, hiring a designer for labels and branding can set you back another $500 to $2,000.
Manufacturing and Production
Manufacturing minimum order quantities (MOQs) can be a significant expense. For smaller batches, the cost per unit could range from $3 to $7, but producing at scale could lower it to $1 to $2 per unit. Expect to invest anywhere between $10,000 to $25,000 initially for a small batch of 1,000 to 5,000 units.
Marketing and Distribution
Marketing is just as crucial as creating the product. Initial marketing efforts, including social media campaigns, influencer partnerships, and promotional events, might require a budget of $5,000 to $20,000. Distributing through online platforms might involve additional costs such as website development ($2,000 to $5,000) and ongoing e-commerce fees (around 3% of sales).
Compliance and Regulations
Navigating the regulatory landscape is non-negotiable. Compliance with local and international regulations, including obtaining necessary certifications, can cost between $1,000 to $5,000. Additionally, legal fees for consultations and trademark applications could range from $1,500 to $3,000.
Taking into account these nuanced elements can help you better prepare and allocate your budget efficiently as you venture into the hair product industry.
Potential Costs of Starting a Hair Product Line
Starting a hair product line involves multiple costs including product development, legal compliance, marketing, and administrative expenses. Below is a breakdown of the potential costs you might incur:
| Expense Category | Cost Range | Details |
|---|---|---|
| Product Development | ||
| - Research and Development | $5,000 - $15,000 | Formulation, testing, and optimization of products |
| - Ingredients | $2,000 - $10,000 | Quality raw materials and active ingredients |
| - Packaging Design | $500 - $2,500 | Designing labels, bottles, and other packaging components |
| Manufacturing | ||
| - Initial Production Run | $10,000 - $50,000 | Cost for a minimum order quantity (MOQ) with manufacturers |
| - Quality Control | $1,000 - $3,000 | Testing for safety and efficacy |
| Legal and Compliance | ||
| - Trademark Registration | $225 - $400 per class | U.S. fee; varies by country and number of classes |
| - Business Licenses | $100 - $500 | Varies by location |
| - FDA Compliance | $1,000 - $5,000 | Ensuring compliance with cosmetic regulations |
| Website and E-commerce | ||
| - Domain Purchase | $10 - $50 per year | Cost of securing a unique domain |
| - Website Hosting | $3 - $50 per month | Depends on hosting provider |
| - Website Development | $500 - $5,000 | Building a user-friendly, SEO-optimized website |
| - E-commerce Platform Fee | $29 - $299 per month | Platforms like Shopify, BigCommerce |
| Marketing and Sales | ||
| - Branding and Logo Design | $300 - $1,000 | Professional logo and brand identity |
| - Digital Marketing | $500 - $5,000 per month | Social media, SEO, online ads |
| - Promotional Materials | $200 - $1,000 | Flyers, brochures, business cards |
| Operational Costs | ||
| - Office Supplies | $200 - $500 | Computers, phones, office furniture |
| - Software Subscriptions | $50 - $200 per month | Accounting, project management tools |
| - Administrative Salaries | $30,000 - $60,000 per year | Salary for administrative assistant or manager |
| - Overheads | $500 - $2,000 per month | Utilities, rent, miscellaneous supplies |
| Total Estimated Costs | $51,114 - $176,449+ |
Bear in mind that the costs listed can vary greatly based on your specific circumstances, such as location, business model, and ambition for brand scale.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
