You Know You Are Getting Old When. . .

June 29th, 2015

How many July 4th fireworks events will you attend?

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You start enjoying classical music

When you turn up the volume in your car and it is only half the max volume

You want to stop at rest areas and your first look around at any public building is the location of the bathrooms

Bartenders and servers are years younger than your own kids

You go to bed at night when sunshine is still coming through the blinds

Staying up until 10:00PM is a late night out

You know the words to songs from the 70’s

You are going up the elevator in Vegas to go to sleep when everyone else is going down the elevator to party

People start calling you by your last name instead of first

Your friends in their 70’s call you young

Squinting becomes an exercise

Cars race past you and you don’t even care

You read about the top grossing new movies over the past weekend and didn’t even know they came out

When you go to the mall and don’t want to buy anything

Your employees start dressing up in Jimmy Buffett attire to remind you that you are getting old

Happy Monday! (Or is it Tuesday?)

OPI Color Is The Universal Language

June 17th, 2015

Where do you get your hair color done?

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Leave it to OPI to meld their world lacquer collections (Venice is coming out in August) and attempt to come out with a new universal language that speaks in. . .color. You read this right. The powers to be (Suzi most likely) selected 26 colors and linked a letter of the alphabet to each. For instance A is An Affair in Red Square and B is Bubble Bath.

To understand the entire thought process behind this, watch this video and learn more at the OPI Color Is The Universal Language Facebook page.

Let me give you my take on this. What I love most about this is that OPI introduced a limited edition collection of 1/8 oz. mini bottles of corresponding OPI Lacquers in a very cute gift box all for $59.95 MSRP. This alone with worth the price of admission and will make a great gift to any OPI lover. Never before and most likely never again will this many colors be available in these adorable minis. TIS customers can click here and order today.

Now to get to the gist of what OPI is trying to accomplish you have to download the APP (App store or Google play). It is called ColorChat. Here’s the thing. The file is huge, 47MB. And to to use it your friends have to download the APP too. Once downloaded you type in any message and the corresponding OPI color for each letter appears. After you press “send” the recipient sees the message (it comes from OPI instead of you which needs to be addressed) and then clicks on the “Decode” button to read the message without the color coding. It’s a cumbersome process in the least and I think the novelty will wear off quicker than a couple coats of lacquer.

But what the heck, at least OPI is out there trying something new and different. Even if you hate the APP, you will love the box of mini’s, buy them now while they last.

And congrats to Coty for their purchase of Clairol, Wella, Sebastian, Cover Girl and Max Factor. The beauty story unfolds once again.

Happy Wednesday!

Why It Pays To Be a Nail Tech

June 8th, 2015

How often do you get a manicure (in-salon or at-home)?

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I go to the doctor once a year for a physical. Insurance covers the cost but it would be $180 without it.

Annual cost: $180

I go to the dentist twice a year for cleaning. Insurance covers part of the cost.

Annual cost: $300

I get my haircut monthly. $35 plus tip.

Annual cost: $540

I get my nails done weekly and toes done bi-weekly (it’s the price you pay to be in this business). Mani including tip $20 and mani/pedi including tip $65.

Annual cost: $2210

The doctor goes to school for 13 years, incurs costs well over $500,000 and gets less than 10% of what my nail tech gets. The dentist goes to school for 8+ years gets about 15%. The hairdresser gets about 25%. The winner: The nail tech who had to go to school the least.

Vietnamese nail techs are raking in the dough all made possible by the laborious efforts of the first generation that came to America with nothing but the knowledge of doing nails. The first generation worked 7 days a week, sometimes 16 hours straight to make a living. They even slept in the salon. But if you look back in history for immigrants this is not unusual, in fact, it is more typical than not.

The second generation is having a field day. In fact business is so brisk there is a nationwide shortage of nail techs. While there may be no documentation on actual annual earnings of a typical nail tech, I would say the average work week is 6 days and average hours worked is 60+. Make no mistake, these nail techs are hard-working and with so much of their business no appointment necessary, sometimes it involves waiting hours for a client. Oh, salons are open 7 days a week.

If we look back at the beginning of this blog, it is amazing that getting your nails done really requires weekly visits. That is one reason why if you frequent a nail salon the same day of the week you will see the same clients.

Putting this into perspective, with monthly pedicures instead of bi-monthly, total annual spend is still $1600 per client. Let’s say the average nail tech has just 8 clients a day x 6 days (48 a week)that comes to $76,800. Of that a portion goes to the salon owner but tips are all cash and the salon owner pays for most of the supplies. It is not uncommon to make $60,000+ a year. And how great is it that they get to sit instead of stand all day?

Now you know why there is a nail salon on every corner. Demand dictates it. In fact, demand is only going to increase over the next 20 years as boomers allocate even more time for services and treat their grandkids to services as well. If I was interested in the beauty industry instead of spending $20,000 to become a hairdresser (read previous blog), I would dive head first into nails.

What’s hot right now? Gels are over 55% of the business and growing. Consumers love the long wear and shine. Both CND and OPI’s new LED lights are ultra popular.

What’s not? Acrylics. Looks like this 80’s phenomenon has run its course.

What’s trending? Extended wear nail polish. Easy removal, one week wear. But salons are still reluctant to add a third level of products to their mix. Vinylux still the #1 brand and the new Contradiction collection looks like a homerun.

Happy Monday!

The Independent Hair Care Business Going Down The Drain

May 29th, 2015

Where do you get your hair cut?

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“Welcome to Gina Franklin, Larry! So nice to see you. Matt will be with you shortly. Can I get you some coffee, soda or perhaps a glass of wine?”

As I walk past the receptionist I head over to the coffee station where there are fresh pastries, bagels, assorted beverages, comfy chairs and current magazines. The salon is buzzing with women getting hair cuts, hair color, makeup applications and it’s like everyone knows each other.

Matt comes and gets me, wonders if I need a manicure and hands me a copy of the WSJ. After a long haircut and hot towel face treatment, I’m back to the receptionist to book my next appointment and be sold on the latest hair care items. Of course she knows I’m in the business and most likely we sold her those products but that’s her job. $60 later I head out.

The rise and fall of the independent hair salon business has been remarkably quick spanning only 30 years. Oh there are plenty of other industries that have come and gone much quicker, i.e. the video rental business (Blockbuster was an amazing story). The tanning salon business is 25 years old and struggling to stay alive. In the past five years alone, tanning salons have declined by a third  to less than 13,000.

I’ve mentioned the historical part of the rise of the independent hair salon business in the past and only Paul DeJoria is left to relish those memories. Everything else has gone down the drain. There are many reasons for the decline and one only wonders what the next 10-20 years is going to bring. After all, everyone still needs to get their hair cut. From what I can see, the usual suspects are at work over the decline of the industry:

  • Entrepreneurs came, sold, and were never replaced. The likes of Arnie Miller and Jheri Redding weren’t just about products, they were about inspiration for a new generation of guys who never envisioned themselves being hairdressers. Suddenly in the 80’s and 90’s it was cool to be a hairdresser. Then the entrepreneurs sold out to the likes of L’Oreal, P&G, and Henkel and that began the first transitional wave down. Guys no longer see this as a cool industry and beauty schools have been turning out 99.5% female hairdressers for the last decade.
  • Competition ceased and public companies took advantage. L’Oreal not only was the first hair color company in the world, they were astute enough to buy the best companies such as Matrix, Redken, Pureology, and ARTec (OK, that one they screwed up). In the meantime they had the retail consumer to support their expansion with brands such as Maybelline, Kiehl’s and L’Oreal. P&G got into the game too late with their acquisition of Wella, Sebastian, Nioxin, Clairol and Graham Webb (oops, that was a nightmare and too bad). Now P&G is unloading all these brands (Fekkai they paid $450 million is now worth $50 million) and even L’Oreal stated they are not interested in any of them. OK Henkel will come to the rescue but too little and too late. Unilever who bought TIGI, also has no interest in a larger footprint in this industry.
  • Competition among distributors went public too. Sally bought BSG and BSG bought the best of the best of the independent distributors. Today BSG operates more than 1200 stores and has nearly 1000 DSC’s. Salon Centric owned by L’Oreal bought the rest and this year will most likely buy the remaining Redken distributors. They have about half the presence of BSG. Combined however, they own the market and leaves companies such as TNG to focus on innovative products that they can’t match or get involved with.
  • The death of the independent salon. My story to start this blog is true. It was all about the salon experience. Booth rental was an infant industry that took root in California and Texas and then Florida. The Midwest and East coast were anti-booth rental. But hairdressers are an interesting group. History has always dictated that the salon owner made out like bandits offering only 40% to 50% commission. The rise of male hairdressers moved the needle to 60% and even 70% commission to retain the best. And even that didn’t work. Salon walk-outs became as common as salons closed on Monday. Eventually salon owners had enough and booth rental gained traction. Chain accounts with their franchisees saw a new opportunity at the same time with the proliferation of beauty schools churning out hairdressers with no where to go. It’s no wonder that the life expectancy of a new graduate that stays in the industry is at the lowest point in history.
  • Retailers such as Sephora and Ulta enter and offer a superior experience for consumers to buy hair care products. Today Ulta is marching toward 1000 locations and its salon business has never been stronger. And factor in Amazon that has virtually every hair care brand on earth priced well below retail.

While all this is going on, what are our industry leaders (such as PBA) doing about it? You guessed correctly. They still flock to the trade shows and trumpet the virtues of education while the only ones attending are rushing to the flea markets in the back of the show with their empty roller bags. They still honor someone at the City of Hope dinner at Cosmoprof just like those diners on the Titanic who were raising their champagne glasses before the tragic accident.

The true winners in all this are L’Oreal, Sally/BSG and Ulta. I always applaud winners (unless they wear maize and blue). And I see them keeping on winning with no one to stop them.

For us, life is good. When you have $50 billion in sales between the winners, it only takes a few crumbs to make me happy. Over the past few years those crumbs turned into cookies, then cakes and suddenly we have a bakery. Our assortment has never been better and our customers love us for what we do for them. But when it comes to the hair care business, we need to keep the independent salon owner alive. One hint for them: Support independent distributors and manufacturers.

Happy Friday!

Out Of My Mind On A Thursday Mornin’

May 7th, 2015

Would you vote for Hillary Clinton?

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You know it has been a long winter when you start to appreciate dandelions.

According to Elon Musk, batteries will never be the same. The founder of Tesla recently introduced two battery packs, one for consumers and one for business. These “powerpacks” will store solar electricity so the power can be used at night. Amazing concept. Here is a thought. If you can connect wirelessly virtually everywhere, don’t you think it’s only a matter of time before the plug becomes obsolete? Already Apple is focusing on wireless charging.

Speaking of plugs, the new CND LED lights are a huge hit. We sold out our pre-sale allotments and the Rainbow collection is sold out. We have more Bright collections that just arrived. But less than 200 remain and they will be gone.  And just announced, the new OPI LED light collections. Order early as these too will sell out quickly.

Jimmy Buffett is playing at the new West Riverside Park Detroit in June. What is up with that? I know Jimmy loves grass, but at his age, not the grass you sit on. And why is Zac Brown playing Comerica instead?

I’m very excited to launch Living Proof. Why? For once the roles are reversed. Instead of retail riding on the coat tails of the pro beauty biz, we get to ride on the coat tails of retail. The brand has an amazing story and real chemistry behind it. Now salons finally have an opportunity to offer a showcase brand that consumers are already familiar with. Official launch date June 5 available in stores and through our AR’s. Slam dunk, thank you ma’am.

The earthquake in Nepal was devastating with thousands killed and thousands injured. Worse there is so little infrastructure (the capital city Katmandu barely had electricity) it will take months just to get back to normal. At least there was a bit of good news in that the people that makes Pure Essential Oil Works Tingsha Bells survived and started a relief effort.

Our best selling ForPro Premium Flannel Sheet Sets are now available in four luscious new colors: Lavender, Ocean Blue, Powder Blue and Wisteria. Our sheets are so soft and comfy you never want to get up from the bed.

Speaking of getting a massage, destination spas have it down to a science. I get massages frequently and I have always said that I would rather spend money on enjoyment than spending money on misery. One night in a hospital is equivalent to more than 100 massages. Which would you prefer? The whole experience starts with the robe. There is something about putting on a robe that puts you in “the mood” to relax and chill out. And if you want the best spa “chill out” robe, check out our new ForPro Microfiber Plush robe. With these, I think we should designate one day a year, “National Robe Day.”

Who is going to be the next President of the U.S.A.? At any time in American history has the state of politics been any worse? In fact a new study shows that trust is an all-time low of our leaders in all areas. Who do you trust?

Happy Thursday!

Apple Watch & CND LED Light Make Their Debuts

April 8th, 2015

Will you buy an Apple Watch?

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As you know I am an Apple addict having just about every Apple product on earth. Our design team uses the latest and greatest Mac’s so in my world Apple rules (only Android people don’t understand this and most likely Google named it Android for that reason).

April 24 is National Watch Day. You cannot just walk into an Apple store and buy the watch ($349 and up to more than $10,000). Nope you have to register online for a 15-minute appointment. You see the executive in charge of sales is from Burberry and she wants to exact the same luxury treatment as Burberry did. In a nutshell, upgrade you to better watch bands and more silver and gold styles.

As an avid BusinessWeek reader, they just came out with their review of the watch. It’s 6 minutes but worth it.

http://www.bloomberg.com/news/videos/2015-04-08/review-a-week-with-the-apple-watch

Will I buy the watch out of the gate? Most likely not. If was bluetooth to my iPod when running, slam dunk. But you have to carry your iPhone to use most of the options. Most likely second generation.

Next week CND will host a live event kicking off their new LED light that is five years in the making. It’s novel design focuses on the fingernails and not the hand and from what I have seen, works well. It also features multiple timer switches so it can be used with both Shellac and Brisa. MSRP will be $299.95 but there will be plenty of promotions to offset the high price point. You can click here to see the exclusive promotion THE INDUSTRY SOURCE is running while supplies last.

To learn more about the light, this video is pretty good.

https://www.youtube.com/watch?v=2nvPyJc_d4s

All in all April is a very exciting month with the latest and greatest technology being introduced.

Happy Wednesday!

Out Of My Mind On A Monday Mornin’

March 30th, 2015

Who is going to win the Final Four?

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How about those Spartans? Even the most diehard fans including myself would have never guessed they would have made the Final Four. This is perhaps Izzo’s greatest accomplishment in his 20 years with State. Congrats to Izzo and the entire team. Go STATE!

L’Oreal has figured out to successfully sell products to both the pro and retail markets (does anyone care?). It is just another reason why salons are imploding while the booth rental market is exploding. In case you are interested here is L’Oreal’s latest retail color line to hit the market. Exert courtesy of CEW:

Covering gray just got easier thanks to L’Oréal Paris who, earlier this year, launched their Excellence Age Perfect hair color system, specifically targeted for those 55-plus.

Although the company produces a bevy of hair color products, this is the first one that addresses Baby Boomers, who continue to be a rapidly expanding segment of the population.

“The Baby Boomer woman is in the process of understanding who she is while recreating her life so she can have a second chance and new opportunities for herself,” said Dr. Alexis Abramson, Ph D, and Baby Boomer Lifestyle Expert. “ Excellence Age Perfect understands her from the lifestyle point of view as opposed to just the beauty point of view. History has pointed us to turning the clock back, but the Baby Boomer doesn’t want that. She wants an ageless look and an ageless lifestyle. That’s what’s new. The conversation about beauty has changed. What makes a woman beautiful has never been more interesting.”

To help speak to these women, the company enlisted long time L’Oréal spokesperson, Diane Keaton. “She’s truly a woman who inspires us and who we admire and we felt she spoke to the baby boomer generation,” explained Julia Yousseff, L’Oréal USA Technical Center Vice President.

According to L’Oréal, by the age of 45, over 50% of women are affected by gray. “73% of the women we interviewed said they don’t feel their age,” added Justin Giouzepis, Vice President of Marketing at L’Oréal Paris. “One-third said they didn’t want to be 25 again. 60% said they were more confident than before, while one-fourth of the women 50-plus feel beauty brands are not speaking to them.” Justin also said that these women are still in the work force, they lead an active life, have hobbies and that the end goal is to keep them in the hair color category longer.

Another bonus? The product, which took five years to create, is enriched with collagen and Ceramide R, which targets and repairs while adding shine and softness. It also contains restorative ingredients that help one’s mane feel volumized, thicker, and renewed.

As with anything L’Oréal develops, research played an important role. The company conducted more than 500 trials in three different countries, 2,000 applications in the US, and 10 qualitative tests were administered globally.

Other additions include bigger and clearer font size on the directions found inside, a dual-sized brush specifically designed for hard to reach angles, and smaller bristles addressing the scalp and hairline abound the face. As of now, eight shades are available with other colors following next year.

OPI is launching Colorpaints this May to capitalize on the small but trendy nail art side of nails. The key to the system is the silver base coat that makes the nail plate act as a canvas for the Colorpaints. The line will launch with 8 colors. You can use nail art brushes and dotters to create an infinite amount of designs. We tested it out and it works well. It can also be used as nail polish as some of the colors are pretty unique.

OPIColorpaints

Speaking of nails, CND is finally coming out with their first LED light April 15. More details to come. $299.95 MSRP.

THE INDUSTRY SOURCE will be launching its VIP program for select TIS REWARDS customers May 1. VIP members will have the ability to receive new products for reviewing, receive the monthly sale catalog first and learn about new products as they come in.

Paraffin Wax Works new 10-MINUTE Therapeutic Hands and Feet have been wildly successful. Now that Thermasoft products are no longer on the market, spas are loving the benefits and results.

With both Easter and Passover this weekend, next week is the official start to spring, pedi season and warmer weather. Like last year warmer weather is eagerly awaited.

TNG celebrates 30 years in business this year and it’s going to be a lot of fun. 30 years is a long time and so much has changed over the years. So many names and faces along with companies are long gone. One thing for certain is the concept of reinvention and innovation is as important today as it was 50 and 100 years ago. All the current mania is in the technology field (apps galore) but I love the fact we are still a product-based company.

Happy Monday!

Out Of My Mind On A Monday Mornin’

February 16th, 2015

What is your favorite season of the year?

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Now that the Super Bowl and Valentine’s Day are over with, can we get back to normal eating patterns? Of course there is nothing like comfort food when the thermometer is below zero (caution, food alert below!).

While I didn’t have a chance to watch the 40th Anniversary of SNL, my problem is that I remember the premier season all too well.

Hot new hair products coming out this Spring:

Brazilian Blowout b3 Brazilian Bond Builder. b3 Brazilian Bond Builder is a one-step professional tool that can be mixed into any color formulation to help re-attach and build bonds.

Pai-shau (Passion for Life) is the new hair care line from previous executives of Moroccanoil. The signature product Biphasic Infusion is a breakthrough elixir containing the highest content of their Exotic Tea Complex.

CND has finally unveiled its new LED light. Design-driven, the light actually cures only the fingertips allowing the hand to be LED-free. MSRP will be $299.95. Look for a May launch and we will have some extra goodies for the launch. It can be used for both Shellac and Brisa systems. To compliment the new light will be their Xpress5 Shellac top coat that will remove in only 5 minutes.

A-Cups by ForPro is a runaway success. So much that the starter kit is sold out until April. We are working quickly as we can to get new inventory into stock.

Also hot are the new 10-Minute Therapeutic Paraffin Hands and Feet from Paraffin Wax Works. Proof that innovation sells.

Paraffin Wax Works 10-Minute Therapeutic Paraffin Hands

Speaking of which Apple’s new iWatch goes on sale in April. $350 will get you a basic model, $1000 stainless and for $4000, gold. Rumor on the street is that Apple will deliver an electric car within 10 years. Can you imagine the technology behind that?

Here’s the thing about time. It zooms by way too fast but then we all want Spring to come as fast as possible. Does New Year’s Eve seem like 6 weeks ago?

Shake Shack went public and a business with less than $5 million in profit is now worth more than $1.5 billion. They just opening in Las Vegas and recently Chicago. 600 calories each for their 3 signature items: Cheeseburger, fries and fat-laden custard shake. An entire day worth of calorie consumed in 15 minutes (or sooner). But I am sure it is tasty.

T or F? We never get tired of looking at pictures of tasty food? But what is the burger without the fries?

OK, I knew it. You want the shake too.

Frozen Custard

OK now I am hungry. Looking forward to steam veggies and whitefish for dinner tonight. How about you?

Happy Monday!

Happy New Year 2015!

January 6th, 2015

How long will gas stay under $2 a gallon?

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The New Year came in with a bang with icy cold conditions and the price of oil plummeting as never before. This will certainly be the year of the perspective.

Perspective A: Gas under $2 a gallon is great news right? Sure thing for delivery companies, airlines and raw material producers.

Perspective B: Gas under $2 a gallon is bad news right? Sure thing for the part of the economy that has helped grow the economy over the past 6 years. Who wants to invest in fracking and oil exploration when costs exceed revenues?

Perspective C: Consumers will spend more money on goods and services since they don’t have to spend money filling their tanks? True but consumers have a history of fading their savings quickly and reallocating their budgets so their net gain is minimal. Hence the surge in new trucks and SUV’s and the death of hybrids and small cars.

Perspective D: All of this is bad for Russia, Venezuela and other oil producing countries? Yes but at what cost? Europe is tied to this mess and now Greece is getting ready for another default and with talk about them leaving the Euro, what good is going to come from this?

OK so what does all this have to do with beauty? The same thing it has to do with who is going to win college’s first national championship and who is going to win the Super Bowl. Not much of anything.

Sorry but I have to mention that amazing MSU comeback victory against Baylor. Even non-MSU fans have to admit it was quite a feat. T or F? Baylor will be celebrating prematurely in future games?

Sorry but I have to mention the Lions finding yet another way to lose a playoff game. Oh sure the team and diehard fans can fault the ref for picking up the flag on the pass interference call. But really, the Lions gave the game away once again. If they just won in Green Bay, none of this nonsense would have ever happened and they would be preparing for this Sunday’s game instead.

Vicki Peters didn’t make it to 2015 passing away just a couple days before New Year’s. I knew Vicki way back when and she did a great job making a name for herself in the nail business. Sadly she passed away from cancer.

What’s going to be hot in beauty this year? Check out THEBEAUTYBOOK 2015 Spring edition and find out.

The Beauty Book

My next blog will mention my favorites for 2015. I will briefly mention the new Amber A-Cups by ForPro and Caption nail polish line by Young Nails as name-brand favorites. The concepts are amazing and products perform flawlessly.

Shizaaam!

This will be the year of the Apple watch, 5-minute pizza franchises and the end of cupcakes. It will be the year U-M fans can finally start smiling although those smiles will be short-lived. It will be 15 years since Y2K and one can only wonder where 15 years went. It will be the year both Bill Gates and myself turn 60 and TNG turns 30. It will be also mark my 25th anniversary and second grandchild (first girl!). It will also be the year that the FED finally raises short-term interest rates and both the GOP and Dem’s figure out their running mates in 2016. All in all, it will be another interesting year in which nothing really much matters except staying healthy. And with that my friends is my wish for all in 2015. The rest will take care of itself.

Happy New Year 2015!

FIFTY SHADES OF GREY- Oh My OPI!

December 12th, 2014

Do you plan on seeing the movie FIFTY SHADES OF GREY?

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The movie, FIFTY SHADES OF GREY premiers Valentine’s Day 2015. What a perfect day to launch what promises to be one of the most erotic movie series of all time. I read the book and let me say that it was memorizing and the expression, “Oh my” will never be the same. The movie should be extremely popular for the age group that spends the most money on nail polish so it is no wonder that OPI (now referring themselves as THE GLOBAL SALON BRAND) is launching its own collection.

The collection titled appropriately enough “Surrender to Color” features 6 iconic shades that reflects the theme of the movie. They include Cement the Deal, My Silk Tie, Dark Side of the Mood, romantically Involved, Embrace the Gray and Shine for Me. If you are wondering why you don’t see the colors it’s because I can’t post them until the new year. But let me say they are mostly gray’s with one standout red. (However, you can Google search and see the colors for yourself).

I don’t know about you, but this is exactly the sort of thing OPI and the salon industry need to do better: Focus on youth. Apparently there will be three versions of the movie worldwide: 2 rated R and one rated NC-17. I am wondering how many teenagers will sneak in to get a taste of grey.

Regardless if the movie does well or bombs, the pre-movie excitement is sure to build in January and up to Valentine’s Day. THE INDUSTRY SOURCE will be shipping the collections January 5 as they are made available to us. That gives salons and spas a good five weeks to get their dibs on the first 2015 sultry hot fad. Oh my!

Happy Friday!


CND Shellac Summer Splash Collection
do my homework for money