The more things change, the more things stay the same — especially when it comes to diversion and the ongoing struggle to overcome the problem and eradicate it for good. Despite the best intentions of many, sales of professional products in unauthorized outlets, which first began to impact the professional beauty industry in the 1980s, have snowballed to epic proportions in the last couple of years. So much so that a December 2004 BusinessWeek article stated that nearly $800 million of the beauty industry’s $29 billion yearly in product sales may be diverted or counterfeit.
The news from the Beauty Industry Fund (BIF), an association of comprised of manufacturers, distributors and salon owners who have formed a united front in the war against diversion is just slightly better. The BIF’s AC Neilson/Market Decision data, which can be accessed online at the organization’s BIF Web site, http://beautyindustryfund.com/, confirms that between Quarter 3/2006 to Quarter 4/2007, the Total Professional Salon hare Care Products Diverted Dollar volume decreased by .2 percent. While the decrease from Quarter 3 to Quarter 4 was minimal, it was the first time over the last eight quarters that Diverted Dollar Volume did not increase.
With that in mind, American Salon Magazine will be dedicating a special supplement to diversion in July 2008 and we’d like to hear your thoughts on this vital issue that impacts the livelihood of professional salons. Specifically, we’d like to know if you’ve seen a positive change in the diversion problem in your local area and whether you’ve taken any steps in your salon to play a more active role in the diversion fight.
And finally, we’d also like your feedback on what more you think manufacturers could be doing more of to combat diversion and what you’d like them to know about the problem, in general Please be sure to include your name, salon name, and the city and state you’re located in. Thanks, and I look forward to hearing from all of you!
Kelley Donahue
Executive Editor
American Salon Magazine
Ghandi famously once said “be the change you want to see” - an inspired call to action for us all (and one that can apply to the salon!).
The video below is from Youtube and is well worth the four minutes it takes to watch. Featuring regular folks sharing their personal calls for change, we hope it will inspire you to slow down for a moment, think about your own life, your place in the world, and the difference each of us can make when we try.
Want to share your thoughts on the kind of change you’d like to see in the world - and perhaps in our industry? Click on the “comments” link below. If there is no comments link below, click here and then on the comments link that will appear below this paragraph.
According a recent article in the Chicago Tribune, (click here to read the article) tipped workers across all walks of life are beginning to feel the impact of what is more and more being called a “recession.” With tips accounting for as much as 25% of many salon professionals take home earnings, this news could translate into a big hit to your pocketbook - even if bookings remain even with last year.
To give a sense of just how a shift can impact you, consider the following example:
Assumptions:
Mary averages $30,000 before taxes and not including tips. This translates into an average of $600 per week (assuming ten days during the year of unpaid time off).
Her service bookings averaged $1,000 per week - or a total of $50,000 for the year.
Mary average $180 per week in tips - or 18% of service dollars. This adds up to
$9000 in tips for the year bringing her total pay to $39,000 (before taxes). In this example, tips represent 23% of Mary’s total pay before taxes.
Now let’s change just one assumption - and bring overall tips down to 12% - or a reduction of $60 per week - or $3000 for the year. This is a change in total compensation from $39,000 to $36,000.
Translation - overall take home pay went down by 8% - at a time when the price of milk has gone up 12% since Christmas and gas prices are topping $4 a gallon in many markets.
We’d like to hear from you. Are you noticing a shift in tips? What’s your take on the overall economy and its impact on business? Do you find yourself reducing tips to other service workers in recent months? And most importantly, how are you working to offset any declines in your revenue?
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As we continue to work on our SalonLife’08 program for Chicago (August 9th-11th), we are very excited about the opportunity to use the event to focus on the big ideas that are making a difference in the lives of salon professionals.
Whether it is saving your tips for retirement or a down payment on a house (a really big idea that works!), adding gift certificates to the menu to greatly enhance cash flow, or hiring a retail manager/receptionist to up salon profit margins (or maybe pay for employee benefits like insurance and education!), there are LOTS of really simple, BIG ideas that have made a huge difference to many.
Most all of us have run across at least one REALLY big idea that has made a huge impact on our lives – in or out of the salon. Let us know yours by clicking on the “read comments” link below.
P.S. At SalonLife, every attendee will leave with a very cool SalonLife BOX OF BIG IDEAS – a treasure trove of easy to implement concepts that can make a big difference in growing your business, finding balance in your life or truly “living beauty” in and out of the salon.
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Featuring an all new Conference and one of a kind Expo - and Vidal Sassoon!
“I was touched and inspired so much more than any other ‘hair show’ I’ve ever been to. I’ve been able to apply everything I learned to every aspect of my life and I feel so rejuvenated because of that!” — SalonLife attendee
Last year, owners and professionals from all across the country gathered for NCA’s SalonLife, a unique event that focused on empowering salon owners and professionals to live their personal and professional lives to their fullest potential. Attendees described it as “awesome,” “amazing,” and even “life-changing.”
SalonLife’08 will bring back all the education, inspiration and fun with a brand new program – and add an all new education focused Expo that will change the way you think about “beauty shows.” This year’s conference features an all star line up of industry icons plus keynote presenter is Vidal Sassoon – who will also be honored at a charitable evening Tribute Show presented by behindthechair.com to benefit Hairdressers Unlocking Hope.
What makes SalonLife’08 so different is that it recognizes the importance of having skills to manage both your work and your life – and that only when you have both will you reach your true potential. Add to that a program that is build around the importance of deep networking and education – and the power each has to enhance the careers and lives of professionals – and you have a new kind of event that is not to be missed.
The all new SalonLife Expo was created to offer serious salon owners and professionals a unique “trade show” environment that provides the opportunity to network and learn as well as to connect you to leading manufacturers, distributors and service providers - all in a quiet, professional environment. Expo features will include specially designed networking cafes (small group programs for best practice exchanges with leading professionals), wisdom centers (our SalonLife take on the traditional classroom environment with a networking twist), and mini stages (fast, meaningful stage presentations in an intimate environment on the show floor). Schedules for each of these areas will be announced later this month.
This year’s line up of Conference speakers includes an all star roster of salon industry icons including:
“Leading With Your Heart: The Power of Personal Leadership”
Mary Rector, Founder and CEO of behindthechair.com
Special Guest Emcee
Vidal Sassoon, Keynote Speaker
“A Lifetime of Lessons Learned”
And don’t miss the optional evening event - A Tribute Show honoring Vidal Sassoonpresented by behindthechair.com and benefiting Hairdressers Unlocking Hope.
“The NCA has always supported salon professionals in their career development,” says NCA President Marlene Bridge. “With the evolution of the SalonLife to include an all new Expo that is built around the value of building relationships, we can say with confidence that SalonLife truly is a new kind of event for the industry.
SalonLife’08 is open to all salon professionals—owners, managers, stylists, nail technicians, and estheticians - and offers attendees two registration options. Click here for more information.
Our sponsors include Paul Mitchell, Graham Webb, Sebastian and Wella, behindthechair.com, American Salon, JOICO, REDKEN NYC 5th Avenue and Repechage.
For more information on SalonLife’08 or to register, call toll-free 888-254-9810 or visit www.salon-life.com. Registration opens April 7th!
In case you missed it, NCA and HairWorld were featured on NBC’s TODAY Show on Thursday, March 13th. NCA member, Team USA member and HairWorld gold medalist Dale Dees and bronze medalist Vicki Stronczek were among the many members included in the story that was seen by millions across the country this morning!
If you cannot see the above vide, please click here!
If you cannot see the above vide, please click here!
Our sincere appreciations to all of our USA competitors, or amazing trainers and many supporters who joined the thousands of guests from around the world at the OMC HairWorld Championships of Beauty during America’s Beauty Show.
For a complete listing of HairWorld comeptition results, click here.
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Dawn R. recently responded to our “Devil in the Details” blog with a cry for help! Dawn is need of some advice to share with her salon owner (and how to best do that!). This particular comment seems like the perfect opportunity for some serious give and take on the core concepts and strategies of building salon success. Hope all will considering adding your thoughts:
Dawn R said on March 5th:
I am a stylist in a new salon and spa. We are located off the beaten path, this was to own and renovate a house so we wouldn’t have to pay astronomical retail store prices. I work for a woman who has never owned a salon before and who is desperately trying everything to help us pick up business. She is beyond frugal in trying to keep expenses low. She is doing some advertising in some local coupon magazines. We have done two rounds of direct marketing by selling packages at severely discounted prices to get people in the door.
She says she can’t afford to pay more than $7/hr for a full time receptionist, we think that is why we can’t hire someone “good” for our first impression. There was no planning for retail display so it is just up on shelves where ever there is room for a standing shelf. Furthermore, when I try to discuss things with her, no matter what my approach is, I have tried suggestions, I have asked her about reading publications etc., she is defensive, doesn’t see a way to change things etc. But I have always heard that retail is where the “add-on” money is. I worked at a department store in an upscale salon and I sold $3-500.00 a week in retail, because we had 10 lines. I can barely sell $100 here because there are no choices. We have 2 brands…how do I reach my boss?
Someone please help me with some suggestions.
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Good health is an important part of the SalonLife message and so we thought we’d share with you the following message from Emmett Hickey, husband of NCA Board member Beth Hickey, and a longtime member of the salon industry community of manufacturers. Emmett recently had an unexpected heart attack and had the good fortune to live to tell the tale – and share what he learned in the process.
I Thank God for My Heart Attack
It was a typical Wednesday morning around the Hickey household. Beth was up at the crack of dawn, maybe earlier. It was 6:20 a.m. when my feet hit the floor and the day was off to a great start. First, brush the teeth, then put on the sweats and tennis shoes and hit the fitness room. By this time Beth had finished her 20 minutes on the tread mill and was completing 20 more on the elliptical trainer. I would be happy to get in 20 or so, on the tread mill, get breakfast and off to work. After 4 minutes on the mill I felt this nauseating pain in the throat and neck, so much that I stopped for a minute before returning to an easy 4.5 mile per hour pace. Less than one minute passed when the same aching, nauseating pain crept back.
Later Beth told me at 12 minutes and 44 seconds is when I said, this does not feel right, and went to the kitchen for a healthy protein drink for breakfast. This breakfast drink is quick and easy. It involves oatmeal in the blender to make it a powder, whey protein powder, flaxseed, blueberries and skim milk. It is best consumed in front of the computer trying to outwit some idiot in Europe at your favorite poker website. What a great way to stimulate the brain and get the day started. It doesn’t hurt to add $200 to $300 to your bankroll which is exactly what I did that morning.
On the way to the shower that morning the aching nauseating pain returned, except this time it did not stop in the neck. I’ll lay down for a couple of minutes and it will go away. After 30 seconds of this lying down technique I knew something more serious was going on. Beth also knew I was not well and asked if we should go to the emergency room. I agreed.
My goal for telling this story is to maybe help someone else dodge the mistakes we made on January 30, 2008. So if you are paying attention you have already picked up on some of the stupidity. If not, retrace the events and think about it. You would have to be living under a rock for the last 40 years to not know the symptoms of a heart attack. Maybe I just did not want to admit it.
Error #1. I allowed almost 50 minutes go by from the time I suffered the first symptom on the treadmill. Remember, I was on the mill almost 13 minutes then walked to the kitchen made breakfast, drink breakfast in front of the computer, tried to lie down, got dressed and went to the emergency room. All of this happened in about 50 minutes. (What should have happened? Call 911 at the first sign).
Error #2. I allowed Beth to drive me to the emergency room. Don’t get me wrong, Beth is a good driver but the 15 minute trip to the emergency room was crazy. Can you say 911? Had we called 911 in 5 minutes trained medical emergency professionals would have been at our door to diagnose a heart attack and further start treatment to stabilize my condition. (What should have happened? Call 911 at the first sign dummy!)
Error #3. Maybe it is not as bad as I make it sound. After all, Beth got me to the nearest emergency room in Arlington Texas. That was smart. Oh, did I mention the nearest emergency room was not staffed or equipped to handle cardio care? It turns out that not all emergency rooms handle every kind of emergency. Had we called 911 the EMT would have known where to take me for the best care for my condition. (What should have happened? Call 911 at the first sign idiot)
By the time we arrived at the emergency room the pain was in my chest, arms, back and throat. My breathing was short and hurried. My hands were trembling, I suppose from the heart trauma. Little did I know I was on the edge of disaster.
As it turns out my heart was in great shape. Two of the main arteries feeding oxygen rich blood to my heart were clogged with sticky plaque build up.
Error #4. You’ve probably never heard of this but smoking cigarettes can cause heart problems. Smoking causes the plaque we all have running through our veins, to get sticky and, well, stick together causing blockage. That is what happened to me. It does not happen overnight. Forty years of smoking and bad genes caught up with me. (What should have happened? Stop smoking Einstein.)
It’s not like I did everything wrong. The Doctors and nurses kept telling me, “It is a good thing you work out, eat right and take your aspirin every morning.” Without those things going for me it is likely you would be getting a funeral announcement instead of this story.
I am lying flat of my back on the gurney in the emergency room, IV plugged nicely in the big vein of my left arm, and breathing is difficult the pain is so bad I almost don’t notice it; black spots are forming in front of me and the attending physician yells, “He’s gone V Tach, get the crash cart”. (Ventrical Tachycardia) Read, your screwed. Beth is asked to leave the room.
My conversation with God gets more serious; If you are ready for me I am ready to come home, but maybe you could reconsider the timing with the grandkids and home remodeling undone and all.
I must be a pretty good salesman after all. The crash cart was not needed. 15 minutes later the nurse removes the crash cart, the morphine has really kicked in, and my vitals are stable and good. The EMTs have arrived to transport me to the hospital where my cardiologist is ready to make an incision in my groin and perform Percutaneous Coronary Intervention, or Angioplasty. I am awake during the whole procedure and did not feel a thing. Two hours later I am in a room on the Coronary Care Unit. The routine stay for this procedure is three days.
Thirty two hours after this all began my Doctor tells me everything looks great. No damage to the heart. Take it easy for two weeks. No travel, avoid stressful situations and quite smoking. Then he releases me to go home.
Giving cigarettes up has not been as difficult as I thought it would be. The real test will be at the next show in Vegas. I think I can handle it. I do thank God for my heart attack. I survived it. The rest of my life will be better for it because of an improved lifestyle. Funny how your appreciation for people and things are enhanced after an event like this. Beth has always been a beautiful person but somehow she is more beautiful today. I noticed some of the art on the wall in our family room today. It has been there for years and today I noticed the detail of Windberg and Adkinson. And yes, the songs are sweeter.
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Who would have guessed a few years back that we’d go from wondering if “global warming” was fact or fiction to “green” being the hottest social movement to hit the country in perhaps decades. And if the industry’s trade magazines are any indication, this trend has not escaped the attention of salons - or at least many of the big businesses that sell products and services to salons.
So what’s it all really mean - all this talk about saving the planet (from us!)? We’ll admit that we occasionally sort plastic and paper, and have bought some of the new long lasting light bulbs (but are waiting for the short lasting ones to burn out before replacing them - is that eco-correct or not?? Hmmmm…). But in the bigger scheme of things we must admit that we’ve yet to rally to the cause in spite of being deeply bothered by corporate polluters, gas guzzling SUV drivers, and the government bureaucracy.
So how about you? What’s your take on going green - at home or in the salon? Are you changing your habits - and whether you are or are not, do you think doing so can make a difference? We want to know what you think!
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With the prospects of a “recession” ahead of us, we offer the following as a conversation starter for all of our readers:
Many leading salons have strategies in common to drive long term success. As the old saying goes, “the devil is in the details” and successful salons know this – focusing relentlessly on driving out expense wherever possible while constantly finding ways to increase per client revenue.
On the income side of the equation, we hear most often about expanded service offerings to capitalize on trends (i.e. everything from hair straightening to eyelash extensions and anti aging services). On the other hand, many caution that when adding services, be sure to evaluate every menu item and consider dropping low profit services that eat up valuable time that could be spent on targeted high profit niche offering.
Most importantly, successful salons view every client as an opportunity to increase revenue. Maximizing per client revenue (i.e. getting the most out of add on services and retail sales in the chair and/or at the front desk) is a core principle shared by success minded salons.
Market leaders are also looking outside the industry for ideas to build revenue. Target is pioneer in mixing value pricing strategies with premium names (think Martha Stewart and Isaac Mizrahi) with a luxury cache to their product mix. Add to that Target’s marketing strategies (youth focused and “hip” in spite of a core audience that some define as anything) and you have a new take on growing retail sales.
Leading retailers often use the time customers spend “checking out” to increase sales by offering “impulse purchases” that can add profits. And with profit margins thin, it’s these kinds of strategies that are often separating success from failure.
Finally, successful salons are almost always successful retailers who focus on effective inventory control, strong display and in-salon promotion skills, ongoing staff training, and effective retail sales incentive plans.
On the expense side, successful salons are continually looking for methods of reducing costs. They track back bar efficiency (think color!), labor costs, and other overhead to reduce expenses wherever possible. They are masters at lease negotiations and aren’t afraid to look into long term contracts for opportunities to renegotiate when the time is right.
Expense management is about constantly managing the bottom line and keeping to – or beating – the budget (and yes, successful salons create annual budgets – and sue them all year long). It’s about savings a dollar here and a dollar there to create incremental savings all year long. Key areas include bank charges, credit card fees, utility charges, and towel and cleaning services – for starters. No line in the budget is immune from consideration.
Expense management is also about controlling the cost of labor – the number one expense on every salons budget. With commissions creeping up nationally, this is an important area of consideration – one that successful salons manage with effective communication – and counseling – so that staff understands the big picture as it relates to compensation.
Overall, the ideas shared above apply in good times and bad. If we have learned only one thing from our conversations, it is that you must keep you eye on your profit and loss statement at all times. Attention to detail matters – and can make the difference between success and failure, now perhaps more then ever.
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