It’s no secret that natural hair products can be expensive, but have you ever wondered what exactly you’re pay for? It’s important to be conscious of what you put on your hair and skin. No matter what you’re buying you always get what you pay for, but it does help to know the reason behind the price tag that sometimes makes us think twice.
There are several factors that go into creating quality natural hair products such as ingredients, packaging and personalization. We talked with Aisha Crump, founder and owner of Honey Baby Naturals, she answered a few questions on why natural hair products cost so much. Let’s see what she has to say!
How do ingredients play a role in pricing?
Crump: “It took me a year to get my products right, I wanted to make sure Honey Baby Naturals would be quality and high performing products. I did not want to spare any expenses because I wanted to provide the best ingredients for my consumers. I didn’t want any parabens or negative ingredients in my products. I use alternatives such as carrot oil for the color, which is more expensive. The oils that I use in my products are also high quality and cost more such as avocado oils. The butter we use such as Shea butter is more expensive than butters found in cheaper products. Natural ingredients yield higher price tags when it comes to ingredients. Products that are rich in natural ingredients perform higher, and thus the cost is more. Synthetic products cost less because of the cheaper ingredients that are found in them such as sulfates.”
How do manufacturing costs play a role in pricing?
Crump: “Big companies can order tens of millions of units while smaller companies pay for cost per item which is triple the price. Pricing is based on volume and also packaging. Smaller companies like myself pay a higher cost compared to larger companies because we are making smaller units. Honey Baby Naturals also sources everything domestically from the United States, and this is a huge factor in cost. We prefer to buy materials from black-owned businesses if we can to bring the cost down. By consolidating SKUs in the same packaging, we get a better deal on prices.”
Are there unexpected expenses that can occur?
Crump: “Smaller brands have to compete with bigger brands. Marketing costs are a significant portion of the expenses. People will not find out about you if you aren’t marketing your brand. So, we have to do direct to consumer advertising and also attend trade shows. We want to make sure our consumers understand how to use our products.”
What are some other costs you face?
Crump: “There are also other costs like legal, trademarks and patent fees. Small brands also have intellectual property and legal fees and insurance for recalls or problems. We also have the costs of storing and transporting our products. There are also sampling costs involved. We want our customers to know if they like our products first before purchasing. We also have to think about travel expenses, staff, warehouse, and office space expenses.”
How do overhead costs play a role?
Crump: “We want to spend money on what matters most, and that is our customers. We keep our overhead costs low which gives us an opportunity to compete with other brands.”
What are your thoughts now that you know a little more on why natural hair products cost so much?
