Archive for June, 2008

Pigs, Pigeons and Penguins

Monday, June 30th, 2008

 

  swine      iceberg           

I spent the weekend reading about pigs, pigeons and penguins of all things.

The first book I read was Swine Not! by Jimmy Buffet. Buffet being my favorite musical artist is also quite the writer. Who else could write a story about a pig that leaves the farm and moves to New York and lives atop a luxury hotel? The pig, Rumpy, at first scares the residents of Manhattan but soon enough, with the help of pigeons, becomes the hero by saving the Mayor’s mother. A truly fun summer read.

The other book I read was Our Iceberg is Melting by John Kotter (thanks Jen!). This 30-minute read business book is about change and the cute story line is about penguins living on an iceberg. One astute penguin does some research and finds that the iceberg could break at any time and suggests to the Head Penguin that everyone moves before disaster.

Most penguins don’t want to move (change) and love their comfort zone. But readers learn that change is necessary for survival and growth. The penguins do move and all is well in penguin land!

Today at the Kemon Academy we have 25 Kemon Coach’s learning new techniques with hair color that have yet to be introduced in the U.S. The excitement level with Kemon is amazing as we get ready to launch Kemon in other major markets later this year.

However, the Kemon story wouldn’t have unfolded if we were complacent and comfortable. Our iceberg was melting and luckily, I was astute enough to change before it did melt.

The author John Kotter came up with The Eight Step Process of Successful Change. You can visit ouricebergismelting.com for the outline and learn other great info about change and how you can incorporate into your business.

If "Wall-E" by Pixar can gross over $62 Million over the weekend, who knows what the future can bring for  pigs, pigeons and penguins!

Happy Monday!

Open Mic Friday!

Friday, June 27th, 2008

 

Open Mic Friday is your opportunity to say anything on your mind and get answers from the blog community and myself.

Last night we attended the HOUR Best of Detroit party at the MGM Grand. I have to tell you it was one of the best parties this city has seen (even better than Super Bowl) and showcased Detroit amazingly well.

For all the negative publicity Detroit gets, one can sense the glimmer of hope among the 2200 party-goers (sold-out) dressed to the nines and having fun. The MGM outdid itself and handled everything flawlessly.

FIGO was the HOUR winner for best salon. Their logo was everywhere and Rino knows a thing about marketing and stuff. Way to go Rino!

Enough dove-tailing from today’s blog. While the stock market is tanking and oil soaring (another new record today $142+), the 1000+ women at the party had their hair, makeup, nails, and outfits sizzling. One thing we can be thankful for is that the beauty business is relevant and we need to continue to innovate what we do best.

What’s on your mind?

Happy Friday!

$4 Gas, Milk, Eggs, Bread, and Lattes

Thursday, June 26th, 2008

 

When I was at MSU back in the fun 70’s, one of the things I looked forward to was Friday Happy Hour. Pitchers were half a buck and manhattans were a buck. Dancing was free and it was a good time for all.

Today, $4 seems to be the magic number and while consumer spending zipped at a healthy rate of .6% in the month of May, consumer confidence sunk to a record low.

Yes, consumers are still spending but prices are getting scary. Dow Chemical just announced another 25% price increase. What this means is that the chemicals used in salons are going up 25% and that means higher prices. In fact, we have seen a record number of increases this year and the increases will only keep on coming.

Starbuck’s has come to grips that its customers who bought Lattes daily are now buying them once a week. Everyone is experiencing sticker shock at the gas pump.

So the question as a salon owner, hairdresser, nail tech or spa professional is how do you respond to higher prices?

One camp says that their clients can’t afford to pay more so they keep the prices the same. Another camp says that their costs are up 5-6%, so they are raising their prices 5-6%. Others say that if they raise their prices, their tips will shrink so they are no further ahead.

Beer is $7 at Comerica Park and people are waiting in line. People wait in line to buy $300 bottles of Grey Goose at the MGM night club. So the final camp says that if my services are the best, then my clients will pay more when I can justify the increase.

UPS just increased their surcharge to us another 1% to 9.5%. We have held our surcharge to $1.00 but it’s only a matter of time that we have to increase it again. My thoughts to you: If you charge $30 for a cut, go to $31-$32. If you charge $15 for a manicure, go to $16. In the days of $4 gas, your clients will understand.

Let me know your thoughts as we are in unprecedented times. Good luck!

 

Parlez-Vous OPI

Wednesday, June 25th, 2008

OPI-France

The much anticipated event of the Fall is arriving August 6 when the Fall OPI collection is released. La Collection De France will be a huge hit in part because the colors are spot on.

With 12 new shade offerings, I am always amazed that 2-3 take off right away with no rhyme or reason. Based on the shades above, what are your top 3 favorites?

And while on the subject of OPI, what is your all-time favorite shade and why?

National release date is August 6. You can order from The Industry Source today for guaranteed delivery.

Please send your favorites colors today!

Services Up, Retail Down

Tuesday, June 24th, 2008

 

I love detailing with one of our Beauty Experts visiting salons. Each salon is unique in its own way, yet the underlying concept remains the same: take care of the client so when they leave the salon, they are beautiful with a smile on their face.

In my recent travels, I have noticed "A" salons still busy as ever and "B" salons hanging in. Although the unemployment rate in Michigan recently hit 8.5%, people still need their hair, nails and feet taken care of (even massage treatments are going well).

But when I asked owners how their retail business is doing, many complain (diversion, don’t need, too expensive, not interested). However, Target is putting in huge "Professional Only" sections in their stores. ULTA keeps opening more stores and even Macy’s is putting in a Professional Only section in all its stores.

So what’s a salon to do to build their retail business? One of my associates told me that a very busy salon in Ohio (35 hairdressers, 15 nail techs) complained about retail business although the salon was hopping.

The owner came up with an idea to focus on the front desk staff and for them to ask their clients upon check-out one single question, "Did you enjoy the shampoo and conditioning treatment you received at the back bar?" The obvious answer was "yes." Then the front desk person showed the client the products that were used (no redirect to the retail section) and asked the client "these are the products we used on you today, is it OK to add them to your charges?"

The point is this: people don’t like saying "no" and would rather say "yes." That is why when you go into McDonald’s, the clerk asks you if you want fries and a soft drink with your cheeseburger–the chances are better that you will say yes than no.

The owner said his retail business tripled since the implementation. What ideas do you have to increase retail business at the salon level?

Happy Tuesday!

The Party Starts Here

Monday, June 23rd, 2008

I was at Posh Salon on Friday morning around 11AM for a manicure. However, I thought I entered the wrong door and entered Club Posh instead.

Along with the single-packet coffee gizmo and assorted soft drinks, Mimosa’s was the beverage of choice. The place was buzzing like it was Saturday night moving into the early hours.

There were kids, girls, cameras, and even a videographer. Everyone was getting their hair done, nails painted, and feet pampered. People were having fun and the buzz was aglow.

The one person really aglow was the bride-to-be. There she was having her make-up applied (up-do was already done) and being a princess for her special day. I found out from the Malibu girl next to me (she flew in for the wedding) getting little hearts put on her nails that the wedding was at 2:00, just a few short hours away.

While I didn’t indulge in Mimosa’s, I will say it was a great experience to be part of the action. Salons have the unique ability to transform themselves into something special. Both Tony and Jesse, co-owners of Posh have figured this out. In fact, Tony "found" the wedding party at a Starbuck’s and initiated the whole thing.

Besides wedding parties, what other events can salons sponsor to bring in new guests and showcase their talents?   

Next up: home parties featuring salon products

 

 

 

Open Mic Friday!

Friday, June 20th, 2008

 

Open Mic Friday is your opportunity to say anything on your mind and get answers from the blog community and myself. Today is also the first day of Summer, the longest day of the year. Tomorrow the days start getting shorter…..love the 80 degrees and sunshine. The forecast is wonderful!

Here is an idea starter: What is your favorite Kemon product? I love Poly Vital Shampoo (at the age of 52, you need the best anti-hair loss product around) and the Sculpting Gel. The gel has an amazing consistency and it’s fun to dip your finger in the wide jar and scoop up just the right amount. Further, it instantly adds dimension and shine.

Happy Friday!

 

Opening Day 2008

Thursday, June 19th, 2008

 

Pre-season is over and we are now live on the world-wide web. Our customers, suppliers, and anyone connected to The Nailco Group (TNG) world can now read and post my daily blog.

I have an excellent story to share and it’s one of those human nature stories that makes one wonder. Your feedback is certainly appreciated.

The Nailco Group has been servicing one of our best customers for many years. We moved them from Wella to L’Oreal some 7 years ago (at a substantial 40% discount) and as one of our best customers, they received discounts on other products.

During this period, we had both owners to many events, both company and personal. Their salon enjoyed being involved with Tiffany, Evening of the Stars, Fringe and so much more. We even went to a play that one of the owners was an actress to show our support.

When we lost L’Oreal January 2, 2008, we naturally asked for their support which they initially gave to us. Then mysteriously they changed their minds and stuck with L’Oreal but continued to buy other products from us.

Recently, they stopped buying their nail products from us because our competitor gave them a bigger discount (5%). When I asked why they switched for 5%, the response was "I’m only interested in the lowest price and they gave me the lowest price."

I asked him why the same competitor didn’t give him a discount for the past 10 years and if they were going to give him a check for the lost discounts. He wasn’t so interested in that comment but he did add that if we wanted to beat the price, they would move the business back to us.

The Nailco Group isn’t the largest national distributor in the U.S. because we offer the lowest price. We aren’t the only company in the industry that is ISO9001 certified because we offer the lowest price. And we certainly aren’t in Gallup’s 99th percentile of customer engagement because we offer the lowest price.

I am sure you have experienced a similar situation either personally or in business. My question is at what point doesn’t loyalty and personal relationships matter and only the "lowest price" or some other transactional item count?

Welcome to my blog!