How to Calculate Your Delivered Hair Extension Cost

What is the Real Cost of Your Hair Extensions?

It is important to understand the additional costs you need to factor the delivered cost of the hair extensions you sell.

As a hair extension retailer, you have to be able to figure out what to charge your customers retail. Your retail hair extension price is based on your delivered wholesale cost.

So what exactly does delivered cost mean? It is the price of the hair including any transaction fees and shipping to your salon or business location. Let's go over what those could include and how to calculate them.

PayPal or Wire Transfer Fees

If you are working with an overseas supplier and sending payments, there are usually additional costs with sending the money internationally.

Sending payments via PayPal is generally the safest solution but at a cost. Often times an international supplier will charge an additional 3% - 5% PayPal fee. This is usually what PayPal is charging them and they hand the cost back to the buyer.

If you are buying $1,000 in hair expect to pay an additional $30 - $50 in PayPal fees. Let's add this cost to some bundles of hair. If you were going to purchase 40 bundles at $25 each then the cost after the fees would really be about $26. We can get back to the final delivered cost in a bit.

Sending an International Wire Transfer can cost anywhere between $30 - $60 transaction. This would add about the same amount to the cost if compared to a $1,000 order like the PayPal example above.

The most cost-effective way to send money internationally would be in much larger amounts with a wire. You must make sure you have a GREAT relationship with your supplier when sending a wire. There are still a lot of issues that can come up when sending a wire overseas.

We never recommend sending a MoneyGram or Western Union payment to a supplier overseas. There is just way too much risk involved.

One benefit of working with a USA based wholesale hair distributor like Private Label Extensions is there are no transaction fees when placing orders with us. So there would be no additional costs to add to the price of our hair at this point.

Calculate Shipping Fees Per Bundle

Shipping fees are a pain, but as a business owner, they are something you generally have to deal with and know how to calculate.

The cost to ship hair from overseas is really expensive if only ordering a few bundles but can go down if ordering 100 or more. A general cost to ship ten bundles and under from overseas via DHL or FedEx will cost you about $25. That would amount to an additional cost of about $2.50 per bundle. If ordering about 50 Bundles, you should expect to pay about $75. That brings your cost down to about $1.50 per bundle. When you are getting into 100 bundles or more you can probably get your cost down to about $1.25 per bundle.

Private Label Extensions utilizes the USPS to ship orders as it is fast and cost-effective. We can ship up to 9 bundles for a cost of only $6.95. That is about 75 cents per bundle. The next tier is up to 30 bundles for $14.95 which is only about 50 cents per bundle. Order over $500 and the shipping is free. I know you like the thought of a shipping cost of $0.00 per bundle!

If you compare ordering 100 bundles from Private Label Extensions and overseas you will see there are a 75 cent savings on each bundle. This is important to factor when comparing costs between companies.

Final Bundle Cost Calculations

Now that you understand the two biggest factors in calculating the delivered cost you can have a better idea of what you are actually paying per bundle to arrive at your business.

Transaction Fees

Overseas orders can add 3% - 5% per order if paid by PayPal or $30 - $60 Wire Transfer.

Private Label Extensions does not have an additional cost.

Shipping

You are looking at anywhere between $1.25 - $2.50 PER BUNDLE when shipping overseas.

Private Label Extensions will cost you between $0.50 - $0.75 per bundle or $0 if spending over $500.

The team at Private Label Extensions wants always to make sure you know your costs when working in the hair business.

There are many terms to learn when getting started in the hair business. It is important to know your costs and different way to supply your customers. You should know the difference between wholesale purchasing and dropship buying as an additional option.

We are here to help answer any questions you have about improving your current hair extension business or help you get started in the industry.