Hair restoration services and products are a hot commodity for millions of American men and women. In fact, Americans spent billions of dollars this year on finding ways to combat hair loss. The hair restoration business can be a lucrative investment for the right entrepreneur. Still there are many variables to consider in this new industry that interested parties must consider before making any decisions. Here are a few.
Cost. There are many upfront costs associated with the hair restoration business. The cost of equipment, medications, and employees to perform procedures, facilities, and marketing materials to find patients is more than most entrants to bare.
Credibility. Using hair restoration products and services is also an upfront and costly investment for patients. For example, the cost of graft hair plants can be as high as $10,000. Therefore, some customers may be hesitant to try a new company who doesn’t have much experience in the field. To combat this effect, new merchants might have to perform services for significantly less to build up clientele. This will affect your profit margins until your reputation is established.
Competition. There are a lot of products and services that have saturated the hair restoration market. The first challenge entrants have to face is deciding which products or services they will be offering. Will it be prescription and over-the-counter drugs? Shampoos, wigs, hair plugs, lotions, or surgeries? Once this is done, competent competition analysis must occur in order to mount successful advertising campaigns that convince consumers of the superiority of your products and services over those of others.
The hair restoration industry has an abundance of customers, but is still a high risk business with significant upfront costs. This drastically lowers the chances that entrants have to acquire fairly priced hair restoration merchant accounts. Contact eMerchantbroker.com to discover how complete and fair hair restoration merchant account management can accelerate the building of your clientele.