Why Wholesale Starter Kits?

Thanks for visiting our blog, where you will find more useful information to help yourself succeeding in this hair business.  It’s been over 2 years since we first came up with the concept of wholesale starter kits, we are very proud of this concept since then many of our competitors have adopted their own versions of wholesale kits, but if you ask them why they make up their packages that way, they probably can’t tell you the exact reason why. However, we are here to tell you guys how ours came about.

Backstory

Our business goal has always been to provide stylists/entrepreneurs good quality hair with an affordable price. Plus our commitment in fast shipping and good customer service, we aim to give you all the best vendor experience possible, however, hair business is tricky sometimes. A couple of years ago, the online hair business was not as saturated as it is today, sure there were a lot of experienced stylists who knew what they wanted, processing orders with them were very easy. But there were just as many new stylists who wanted a slice of pie but weren’t sure what to get.  So our sales manager decided to try something new, something that’s like a “bulk” order but won’t cost a fortune, something that will make sure the stylists can sell and have a good Return On Investment(ROI). 

What Is “Return On Investment”?

So what does that mean?  ROI? Well, that sounds like a wall street acronym, but let’s break it down!  Let’s say you are spending $75 on 3 bundles of 16” straight hair, my guess is that you can sell these bundles to your customer for $120, easy! so your profit is $120 - $75 = $45, your ROI is $45/$75 * 100% = 60%, now if you make a wig with these 3 bundles, you can probably sell the wig for $180 - $200, you’ll double your money and more. But some people say, “I wanna sell long hair, 30” - 40” bundles.”  That’s a very good thought, but profitability wise, it’s not such a good idea. Same example, this time you are spending $75 for 1 bundle of 30”, sure you can put it on your website and sell it, but your customer will likely need at least 3, probably 4 bundles to really make it into something, so with your $75/bundle investment, you can sell that bundle to a customer for $105 at tops?(which I doubt), because when the customer needs 4 bundles, she has to spend $420 on the bundles alone, in this competitive market, that price won’t get you any business!  On top of that, even if you sell at $105 for the bundle your Return On Investment for this one is only ($105 - $75)/$75 * 100% = 40%, definitely not as good as selling the 16” bundles. We are not telling you never to sell longer bundles, but just want to show you the numbers so you can understand how to maximize your profits, not your hype. After all, business is all about profits! 

The Making Of The Wholesale Starter Kits

So having the ROI concept in mind, we initially came up with the 10-bundle medium lengths deals for $300, we know that with the right audience, you can easily sell all the 10 bundles out for $500, that’s very good ROI in any business. We didn’t come up with 10 bundles of all 26” or 28” because that would mean, you invest $500 or more for 10 bundles, making about the same amount of money as you would with the shorter lengths, not a good deal if you are just starting out!  Later on, our customers grew their client base and got more capital to stock hair, so we came up with 15-bundle and 20-bundle kits as well as longer kits, it’s been a great pleasure seeing our clients grow and we are working on other packages that suit needs of all of you, if you want to make up a 50-bundle or 100-bundle deal, we can put something together for you, or if you tell us you have a specific budget, we can also tailor something for you, please feel free to contact us if you have any questions.  

We appreciate all of you coming to our website, please share the knowledge, we would love to see everyone get a piece of this giant cake in the ever-changing hair industry, together, we will get hair and money!!!