Pricing: Hair Creation for Hair Extensions



EXECUTIVE SUMMARY

The purpose of this paper is to devise the marketing plan for the Hair Salon which is specialized in the Hair Extension. In this study, we have learned that the total cost for opening this business is $136273 including fix cost as well as variable cost. The study further explored that the variable cost on each service sold is $46.86 and fix cost $5. In this way, there is $51.86 total cost on each service sold. This is also our break-even point and we cannot price our service lower than that. Like all business, our aim is also to earn, for this reason we have set the price as $60 for each sold Hair Extension service. In this way, we will be able to cover the cost and earn handsome amount from Hair Extension business.

The Concept of Hair Extension4

Technologies used in Hair Extension4

Market Survey5

Industrial Analysis5

Customer Analysis6

Objectives of this Marketing Strategy6

Measurement Analysis/Criteria for Success7

Time Frame7

Good reputation8

Six Steps in Setting a Pricing Policy9

Step 1: Marketer should set the Objective9

Step 2: To evaluate the consumers demand9

Step 3: Cost Estimation10

Marketing Campaign10

Advertising Campaign: Flyers and Newspapers11

Website Campaign12

Sales Promotion Campaign12

Direct Marketing Campaign13

Step 4: Competitors cost analyzing15

Higher Prices: Differentiate From Competitors15

Medium Price: maintenance against the competition16

Lower prices: Differentiate from competitors16

Step 5: Choose the best pricing method17

Step 6: Decide the final Price17



Pricing: Hair Creation for Hair Extensions

The Concept of Hair Extension

Hair extensions are suitable for anyone who wants to have a beautiful, elegant and silky long hair without curves. Fashion comes and goes, and a long, beautiful hair will always value that will look attractive and charming at any place and any situation. This is one of the most popular in USA and careful technology of hair extensions. For Hair extensions, high temperatures are not used and the client's hair is not damaged if the tapes are fixed professionally, they do not affect the client's hair (Yang et al, 2009). Adhesive technology hair does not suit those who are accustomed to high-tail. If you are used to collect hair in a ponytail at medium altitude, you can safely choose the technology of hair extensions.

Technologies used in Hair Extension

There are many technologies are used for the Hair Extension. Sewing technology is suitable for everyone who wishes to obtain a short-term effect of lengthening hair without damaging them. With this technology, it is impossible to obtain natural hair fall and density in the side parts. In addition, there is Italian technology, which is used to build the hair strands at the ends of which are keratin capsules and are separated by a strand of hair. This is a hot technology of hair extensions, since each capsule is melted strands and strands of hair attached to the client using a temperature of 180-220 degrees. Cold hair technology is very complex, though reliable to the hair. In USA, this technology is not new, but there are only limited numbers of haircutters who have good command over this ...