system
Given the following post, respond as if you're commenting on Reddit:
human
Can someone explain to me the business model behind beauty brands who only sell to professionals?

At one point Sally's Beauty Supply would only sell to licensed cosmetologists. Later they changed their business model and opened to the public. It seems like that has dramatically increased their sales. Still though you have suppliers like SalonCentric who will only sell to professionals.

The you have particular brands like Pulp Riot which only allow their products to be sold in professional only warehouses. They go so far as to included tracking measures to stop licensed buyers from reselling their products online. 

I understand that exclusivity can increase price points, but that seems like it should be limited to very expensive, hard to manufacture goods. Pulp riot products range from $8-32. Wouldn't selling to everyone drastically increase overall profits of moderately prices goods? It not like hair dye is a very expensive or difficult product to manufacture. How do these companies financially justify limiting their circle of consumers so much? Is it a liability issue? Some of their products can harm people if misused? Couldn't insurance and strict warning labels offset the risk of lawsuits if that's the case?

I don't really care that they limit their sales, I'm just curious about the why! It doesn't seem like "exclusivity" for a $15 is good business. It seems like their company is only worth $11 million at this point. If it's a liability issue, why not mass market *consumer grade products* with their trademark?
gpt
There are several products that, if used incorrectly, can cause chemical burns, baldness, etc. 

  People are used to most beauty products being relatively benign; regardless of how long you leave them on or what you do with them. Consumer grade beauty products won't generally cause adverse effects outside of allergic reactions. Many of the products that require a license to purchase contain additional or higher concentrations of chemicals that make those products more dangerous if used incorrectly. 

  For instance, professional chemical straighteners can cause severe hair loss if used on the wrong type of hair or if left on too long.

The restrictions are there for safety and liability reasons for the most part.

Source: Asked relatives who are hairdressers/nail salon owner, etc.