A hair extension business transforms clients’ hair by adding length and volume through various attachment methods. These businesses typically operate from salon spaces where professional stylists consult with clients, color-match extensions to natural hair, and perform installations. Most salons offer multiple application techniques, including weaves (where extensions are sewn into cornrowed hair), glued-in methods (using special adhesives to attach extensions), and clip or tape-in extensions (temporary attachments).
The most common business models in this industry include:
- Full-Service Salon: Offers all types of hair extension services alongside traditional salon services
- Extension Specialist: Focuses exclusively on hair extension installations and maintenance
- Mobile Extension Service: Travels to clients’ homes or locations to provide extension services
Related: Checklist To Start A Business
How Do Hair Extension Services Make Money?
Hair extension businesses earn their primary income through service fees that combine material and labor costs. Clients pay for both the hair extensions themselves and the professional installation time, which can range from 2 to 6 hours, depending on the method chosen.
Installation prices typically start at several hundred dollars and increase based on the amount of hair used, the type of hair selected (synthetic vs. human hair), and the complexity of the installation method. Most businesses require deposits to secure appointments and cover the cost of ordering custom extension materials.
Additional revenue sources for hair extension businesses include:
- Product Sales: Selling hair care products designed for extension maintenance and aftercare
- Maintenance Services: Providing regular tightening, repositioning, and deep cleaning of existing extensions
- Removal Services: Charging for professional removal of extensions when clients want them taken out
- Extension Products: Selling hair extension pieces and supplies directly to customers
- Training Programs: Teaching other stylists extension application techniques through workshops or one-on-one instruction
Industry Statistics
Hair extension services fall under NAICS code 812199, which covers personal care services. Here are statistics about businesses offering hair extension services.
Hair Extension Industry Size & Growth: The hair extension service industry generated $538 million in revenue last year. Over the past five years, the industry has grown by 0.9% annually. Growth projections remain positive as customer demand for these services continues, particularly among the core female customer base. (IBISWorld)
Number of Hair Extension Businesses: There are 6,973 hair extension businesses operating across the country. The industry is highly fragmented, with no single company or franchise controlling a significant portion of the market. Most businesses are independently owned and operated salons or individual specialists. (IBISWorld)
Hair Extension Business Profit Margin: Hair extension businesses typically see profit margins between 10% and 15% after accounting for overhead costs, labor, and materials.
States with Most Hair Extension Businesses: The highest concentration of hair extension businesses can be found in populous states with large urban centers, including California, New York, Texas, Florida, and Illinois. These locations tend to have greater population density and higher demand for personal care services. (U.S. Census Bureau)
Startup Stories
Costs To Start a Hair Extension Business
Starting a hair extension business typically costs between $25,000 and $75,000. This range accounts for different business setups, from a small dedicated extension studio to a full-service salon.
There are several expenses to consider when starting, but here are some of the more expensive items:
Salon Space and Setup: A salon space requires between $15,000 and $35,000 for lease deposits, renovations, lighting, mirrors, styling chairs, and plumbing installation for washing stations. This also includes the cost of creating a comfortable waiting area and installing proper ventilation systems.
Equipment and Supplies: Initial equipment costs range from $5,000 to $15,000. This includes professional-grade styling tools like hair dryers, flat irons, styling chairs, washing stations, and sterilization equipment. Extension-specific tools such as loop tools, pliers, and removal solutions are also needed.
Initial Inventory: Starting inventory costs between $3,000 and $10,000. This covers various types and grades of hair extensions, including synthetic and human hair options in different lengths, colors, and textures. Additional inventory includes bonding materials, thread for weaving, and attachment tools.
Professional Training: Professional training and certification programs cost between $2,000 and $5,000. These programs teach different extension application techniques, color matching, and proper maintenance procedures.
These estimates are rough figures, and actual costs will vary. Each business owner should carefully evaluate their startup budget based on their planned services and location.