The Method On How To Price Custom Wig Units | Making A Pricelist | Lou Xoxo

Hey loves welcome back to my channel, it's lou if you're new, welcome to my channel. If you guys like what you see, which i know you will please make sure you press the subscribe button, that's down below as well as the bell notifications, so you guys are notified every single time that i post a new video now for today's video um. If you guys didn't watch a previous video that i did, which was how i do my wig, my ready to ship, wigs i'll link it somewhere in the eye or probably in the description bar down below. But i did that video and i did get a lot of comments of people saying that um. Basically, how do i price yeah? How do i price my ready to ship units? So i'm like man? Why not just make a quick little video about it now there is no right or wrong way and i've seen plenty of videos of their method of actually, you know coming up with the final price for their product and honestly, it all varies on the person. You cannot like you, got to take everything that people say with a grain of salt. You even got to take what i'm about to tell you guys on how i um price minus with a grain of salt because, like i said it all, depends on the person and it all depends on their target audience and all that extra stuff. So you got to take all that into consideration when you are about to start pricing, your units or anything that you're selling in general, there's honestly no secret big way on how i price my units honestly some some of the times my numbers aren't, even as accurate Um, but i'm gon na go ahead and step by step and tell you guys the thoughts that go through my head. When i am, you know, pricing my wig units now, if you are doing ready to ship units, you know that there's numerous ways that you can do it. You can have your vendor. Do the units for you or you can go ahead and you know just um get the bundles and then you personally do the you know you do the custom units yourself now i kind of do a little bit of both. Sometimes, when i want a whole bulk made at the same time - and i don't have time to actually sit there and do it - i will go ahead and tell my vendor to do that for me. But again now you got to put that into consideration. My vendor cost is 15 per unit that i want them to make for me and also when it comes to you know your vendors making your units for you. It honestly is a um. How can i put this? It'S like a testing thing like your vendor, might have good quality hair, but that does not mean that they know or they do provide. You know, weight construction services and stuff. So, that's something that you would have to personally talk to your vendor about yeah, to see if they provide that service for you, but my vendor it they they do provide that service and it's 15. So, first you got to figure out which way which avenue you're doing and honestly you can do both because, like i said i do both now after i figured that out, because that's a number that i would have to you know jot down like okay. If i want the vendor to do that, for me, i'm gon na drop down. Okay, that's 15 extra that i'm gon na have to add to the price, and then i got ta include the shipping which is normally. If i do about five weeks, it's normally about 30 to 32 dollars or 40 dollars on the high end. So i add that to that, but i also divide that between the five weeks, so i would divide 40 into the five and then i would jot that down and also we all know that there is a fee. Well, i have a fee. I don't know some people send money to their vendors directly, but me i actually have to go through um this thing that the the website that they use and that they charge that fee. For that too, the more amount you spend, the more the that feed that processing fee is going to be, so i also got to put that into consideration. Normally that fee is about, i would say, a high end. Probably 20 25 um give or take a few a few dollars, so i also got to drop that down the fee for that. So now after i get that and that's just the fees from me getting the hair from the vendor, the wigs made from the vendor, if you're, actually gon na, go with the other way which you're actually doing it. Now you still got ta, add in the the processing fee and also the shipping fee, of course, but now, instead of the 15 of just the vendor, doing you would add now you're gon na have to go ahead and sit and think how much are you worth How much is your time worth because me normally, i just started doing the sewing machine method. I don't sew with my hands anymore, because i don't know. I just found that the sewing machine is a little bit quicker. If you do, you know continue to do it on a regular day basis and you get a little bit more custom to it. It'S faster and it's a little bit neater, so it roughly takes me an hour and a half to two hours to do them. So i have to put that into consideration. So my time honestly, i would say i want to get paid alex, for instance, 50 an hour. So since it takes me roughly an hour and a half or maybe two to do one unit, i would say okay, i want to get paid fifty dollars now, i'm just saying this: is you don't have to do it this way, but this is the thought that I i go through and that's how i price my items, so i'm like okay bet i want to have. I want to make at least 50 an hour, sometimes 45, sometimes 40, but just above that range above the 40 range. So i do that times the hours that it takes me to construct the unit which, in total, like i said, probably two hours. So it would be about 100 to 100 to 85 that and also um. The styling takes about 35 35 minutes to an hour as well. So that's another, that's another um 50, 40, 40 to 50 - that i have to add so in total. I want to get paid at least 150 150 per unit, because that's the amount of time that i put into you know do my units and one thing about it, is i pride myself in you know styling my units, and i know that it takes me a Long time to do my units - because i do like i pride myself in actually making it - you know - look presentable and most of my wigs they're ready to ship like they're, ready to wear right out the box. So i know that for a fact, i know for a fact that you know my customers are gon na like the unit, so i do take my time. So that's why it takes me so long to do one unit. One unit could take me up two hours up to four hours so think about how much you're worth and how much you're realistically are trying to. You know, get paid an hour so think about it as in a job since so i put that into account. So, in total, probably 150 now i also have to um include the price of the shipping, the the shipping, the um, the processing fee in that as well. So in total it's going to be roughly around 170 170 um some dollars because you guys know we do have to divide that number that we got in the beginning with the five units, because i'm splitting the the cost amongst the the five units that i purchased For my vendor, so that's already a price that you know. I already have in my head that i can't go below this number like this number. I have to at least add that certain amount of money and not go below it, because i know that that's the amount of money that i'm trying to make per unit, but there's also other things that you guys have to take into consideration. One shopify fees or, if you're, using paypal, the paypal fees and, if you're, using any type of after pay type of program which is sezzle or um quad pay whatever it may be, those things since, if you are unfortunate, unfortunately, if you are in the you know, Hair industry, they that thing costs a whole arm and a leg for one order i would have to the processing fee for me is like above um, 30, it's never below 30 dollars, because most of my wigs are above 300 dollars. So yeah. Most of my wigs are above 300, so my fee is like 30 plus. So it's it's crazy, but um. I actually am looking for another type of after pay type um platform to use to see if it is a little bit cheaper, because that's a lot of money so um, because typically shop shopify, i'm not sure the percentage but most of the time the the highest Amount i've seen them take is like eight or twelve dollars, but imagine twelve dollars, and then imagine you having to spend thirty. So now you have to take that into consideration if the customer goes through sizzle or any other. You know after pay platform now you're like okay, that's already 30 down the drain. Like imagine that your your total that you were trying to make it's like a 165 dollars, the profit you were trying to make is 660. Now you got to go ahead and take out that you got to take out that 30 processing fee that that you basically need to pay says so for that so now, instead of getting 165 you're only getting 135 dollars. So that's something else you got to take into consideration and also shipping me. I provide free shipping for orders over 300, so normally shipping for me for um countries that are in the us is normally the most i've ever paid is 50 dollars, because i do include signatures most of the time because um i realize i've been getting like more Orders - and i want to be more secure because, like in the hair industry, there's a lot of scamming going on, so i want to make sure that i protect myself. So i am getting more into you know doing the signature. So it's roughly about 15. So now that's something else. I need to take into consideration out of my profit margin so now you're like okay after you finish, writing all that, because those are all things that you need to considerate and then the last one that you really need to take into consideration is your bills. Your lifestyles that you're trying to live now, if you're, if you're, depending on your you know your business to, i guess, take care of your bills. Now you got to take that into consideration. You got to take that into consideration because you want to still be able to pay your bills with your business. If you are going down that route, i would say: go ahead and write down all your um, essential bills that you do need to get you. You do need to be paid within a month within a month's time, and then you got to make sure that you, you divide that all up, so you so you're able to add that into your um overall amount of profit that you're trying to make as well. Like i know that this is like really confusing and all over the place, but honestly, this is all the things that you really need to take into consideration when you are trying to price any type of product and it's not even just wigs but any type of Product you need to take these things into consideration, and overall, this is going to be the very important part. Is you need to see what target audience you are now, if you're in the higher end um, if you're in the higher end type of tax bracket when it comes to your audience, like your audience, is willing to pay 500 plus per unit? You can you have a little bit more leeway to add those those type of things into your total. So, honestly, that i follow a lot of weak people in most of the week like a week like this, because this is for my company. This is the uh mocha unit this they would charge up to like 600 for this unit 600, but me personally, i'm not high up in that tax bracket. So for me, a week like this would be around four or four forty, four fifty type of thing. So, yes, i know that's like a little bit bad because i mean i still need to make profit, but in my head i i'm kinda in a sense of playing it smart. I know that i'm kind of like overworking myself and i'm not getting that much profit. So i'm already losing out like 200 worth of profit, but in the way that i think about it is, is that i'm not like high up there. Yet? I know my target audience and i know that i know the amount of money that they are actually willing to spend and i try to stay within that now granted. I know that, let's be, let's be honest right now. I know that some of my work i'd be looking at my work and i look at other people's things and i'm just like dang my you know my units look like ten times better like granted that person's unit they still look good they're still getting their business And stuff like that, but i know that my work, you know it speaks for itself, but i can't charge what they're charging, because i don't have their target audience now. I know that i'm trying to work it a little bit more smarter trying to build my clientele because the more bigger i get now, the more that i'm able to increase my increase, my profit margin. So often all in the beginning, you kind of do got ta bite the bullet and just work a little bit harder because again, like i said you're trying to build a clientele most of these people that charge six hundred seven hundred dollars eight hundred dollars per unit. They are, they have to start from the the the low down where i i am right now like they have to start from somewhere, and i know they eventually build up to that and that's exactly what i'm doing so. That'S why i kind of i don't low ball myself, but i do stay within the range of not going too crazy, so i'm still able to like you know slowly build my clientele. So eventually i can, you know, do get up there and also another thing that i forgot to add again. I'M sorry that this video is all over the place. You also got to include the products that you you purchase almost every month to make the units like, for instance, if you have to buy caps, you got to buy bleach. I go through bleach like crazy, bleach and developer like crazy. So that's something you also got to write down. You got to write that down in the sense of that's expenses that you got ta go through every single month to make sure that you have inventory so things like that needles, wig heads um. Anything like that. Anything that you use to make a unit you need to write those things down at the end of the day, you just want to make sure that you're, profitable, you're profitable and that you're not basically lowballing yourself. You still want to be able to make a a good profit. I hope that this video was not all over the place, and i know that you guys might still have a few more questions, because i'm pretty sure there's a few more things that i personally didn't. Um answer or dress um so go ahead and leave those in the comments down below and i'll. You know answer any questions that you guys may still have if you guys are still a little bit confused because, like i said this, video was a little bit all over the place. But again, like i said, i just wanted to bring you guys inside my head of what exactly i think about when it does come to me. Actually, you know trying to figure out a whole price for a unit or for whatever product that you guys are approaching. These are all the things that you guys need to take into consideration, like i said, take everything that i said with a grain of salt, because what might work for me might not work for you, but you guys can try it out and you know, go ahead And tweak it to see if it works for you and stuff like that, but i hope this video was helpful in any type of way and if it was go ahead and send it to your friends and family, you think will find this helpful. Um make sure you guys give this video a big fat thumbs up, make sure you guys press that subscribe button and i'll see you guys in my next video bye loves you