Archive for January, 2009

OPI Gets Burned with South Beach Release

Friday, January 30th, 2009

 

One reason why OPI dominates the nail color market is because of their long term strategy. We all know about their crazy names and infinite color selections but we all don’t know is how George brought innovation to the "pull" side of economics.

Nail color collections have been around forever. Just like spring and fall fashions, we can always look forward to spring and fall nail color collections. Back in the 90’s when OPI was making its mark, George came up with the crazy idea of introducing his collections on a particular date.

His thinking was that all salons and consumers would be able to buy the collection on the same day throughout the US and that OPI along with its distributors would build demand up until the release date.

Do you remember Trivial Pursuit? Back when I was in retail, we were among the first stores to sell this game. We became one of the company’s biggest single store sellers. Their follow-up Baby Boomer edition had a release date 3 months out. To create demand I took deposits so our customers could get the game the first day available. We sold more than 900 games!

For OPI, the strategy not only worked, but no one duplicated it. And let me tell you, the OPI Pre-Release Police were out watching to make sure no one sold a single bottle before pre-release.

Their latest collection, South Beach, had a release date of February 4. We booked well over 1000 orders and were ready to ship. But a funny thing happened along the way. One of OPI’s major customers decided they weren’t going to wait until then and decided they would start selling South Beach on Saturday. Apparently they wanted to create buzz before anyone else and didn’t care about OPI’s famed policy.

To OPI’s credit, they got on the phone to all their distributors and told them to release on Saturday. Lucky for us we were prepared. Our collections have been shipped and beginning tomorrow, our 22 stores will have the collections and open stock ready to sell.

Yes desperate times call for desperate measures. But at what price? Rules are rules and we will see in 2009 how many rules hold up. I think this major retailer will find out the hard way about this one particular rule.

Happy Friday!

 

Relationships Win, Numbers Lose-Part II

Wednesday, January 28th, 2009

 

This story starts with a stick. Not a pogo, dip, drum or one you find in the woods. No, this stick is very special and helped to turn a company around and propel it into stardom.

There is something about blogs in which you are always going back to the archives to retrieve information and thoughts. For this particular stick, I remember being in Las Vegas for the annual distributor trade show then called BBSI. Hairco was the new boy in town and we were just learning about the hair care market.

This company had its roots in education and made a name of itself but its product offerings were much to be desired. So with great fanfare we walked into their meeting room. It was decorated, there was food and drink and everyone was dressed up and excited. They were excited about a stick. A stick of pomade.

Hence the launch of Bedhead by TIGI and the rest is history. Who would have thought that consumers would pay $17.95 for a stick? TIGI couldn’t keep it in stock and it became a nightmare for us, salons and them. Can you imagine that happening now (although it is with a "who would have thought" product that has been out a zillion years: dry shampoo)?

I met Bruno, Thomas, James and all the TIGI guys and after years of being kicked around, they were geeked to do some of their own kicking. And if the stick wasn’t good enough, they created the hit of the decade as a follow-up: Manipulator.

Manipulator is this blue goo that you first think about eating because it smells so good, then think about playing with because you can twist and stretch it like Silly Putty but eventually you put it in your hair and your hair looks amazing. For another $17.95 a pop. consumers couldn’t get it quick enough.

After Bedhead came Catwalk, Make-up, S Factor and their latest craze, Rockaholic.

But this story isn’t about their products; it’s about the people behind the products. These guys were hairdressers first and inventors second. They knew the psyche of hairdressers and took advantage of their talented team. They understood innovation then and they understand it now.

So it’s no wonder that giant consumer companies wanted in. Rumors flew throughout the years from L’Oreal to Wella to Henkel and others. With each rumor we bit our nails. But at the end, a friendly suitor came along, Unilever, and the brand will stay in the hands of the founders and their outspoken VP, Vince D.

With a sigh of relief, this is the best news for us, salons and the industry. Yes consolidation continues but at least we know the entrepreneurial spirit of TIGI will live on.

Happy Tuesday!

Relationships Win, Numbers Lose

Tuesday, January 27th, 2009

 

Hairdressers are people that do what they do based on their passion for making others look good. With average annual earnings of $32,000, their career isn’t about the money or how much money they can make, but the relationships they build with their clients and those that help them to make them better.

The story about products that hairdressers use and retail can be an entire novel. But this story will be short and sweet and like all good stories, has a happy ending.

I remember way back 10 years ago or so when we made our pitch to the big guys at L’Oreal to take on their Majirel brand. At the time, it was the #5 selling color in Michigan and was mostly purchased by the older crowd and through stores. The brand did $350,000. Our presentation was fabulous and we got the brand.

We took the brand to $6 million in business and became the #1 distributor in the US based on salon count. But what we didn’t know when we first started, all L’Oreal cared about was numbers. No matter how much business we did, it was never good enough. No matter how much we bought, we never bought enough.

David Craggs ran the professional division during this time. All he cared about was numbers. He bought ARTec and we know the rest of the story. He bought Pureology for $300 Million and Jim Markham is still got the giant smile across his face. Craggs added Matrix to the mix and was credited for the three worse launches in history.

Sadly, Craggs didn’t care about the hairdresser. In fact, he never once came to Detroit or one of our events. He was too busy plotting his next move. And his next move cost him his job. L’Oreal bought Beauty Alliance, Maly’s and Columbia. They wanted to buy us and the rest of their distributors.

But a funny thing happened along the way. No matter how big you are, it doesn’t matter to hairdressers. They want relationships and not numbers.

What is also sad is his blog. Not one single comment posted in 2008. And while he talked about diversion, hairdressers saw the ruse.

Good-bye David Craggs. We will not miss you. We hope your retirement is enjoyable. We are sad that we lost L’Oreal and Matrix because of you. But we will preserver because we value relationships with hairdressers and they value the relationship they have with us.

I said this story would have a happy ending. In closing this story, I do need to thank David Craggs. Without him, we wouldn’t have launched Kemon in the US and have brought passion to hairdressers they haven’t seen in many years. The excitement is greater than any L’Oreal brand we ever launched. So for that, thank you.

This story will continue tomorrow when I talk about a different type of company that is committed to hairdressers and just completed its biggest move ever. A good story indeed.

Happy Tuesday!

Food is The Magical Elixir

Monday, January 26th, 2009

 

The BUB and I were watching the Food Network and on comes this show where the host visits these landmark restaurants known for their gigantic portions and then he tries to eat the entire portion.

We witnessed an 11 pound pizza. Now I will admit that pizza is in my top 3 but 11 pounds? Next up was the Dagwood. He selected 3 meats, a little over a quarter pound of each (pastrami, corned beef, ham). The chef then grills the meats, adds cheese, puts each meat on grilled French bread and then loads it with toppings including a large handful of french fries. OK, you think you can eat one? Sure. But the trick at this place is that you have eat all 3! The fries comes in at one pound between the 3 sandwiches.

We love watching stuff like this. Hot dog eating contests, donut eating contests, rib cook-offs, best place for steak sandwiches, onion rings and milk shakes. One reason we love to watch is that we can imagine eating the foods the host is eating or showing us. It’s also fun to watch knowing that you can enjoy without the calories.

Food is the magical elixir. When all else is lousy, you can always depend on food to get you going. Now mind you, all food doesn’t have to be high fat or high caloric to be good. Just because someone can eat the Ben & Jerry Trough which consists of 4 pints of assorted ice cream, toppings, whipped cream, nuts, bananas and a cherry, doesn’t mean you have to.

One of my favorite pre-dinner snacks is a veggie called Aspiration. It is also known as Broccolini. It’s a breed of asparagus and broccoli. To serve, cut off the stalks, separate the heads to liking, drizzle with olive oil, and grated parmesan cheese. Guaranteed you will eat the entire thing standing up.

And what’s better than snacks or appetizers? We love small bites, big bites, hot bites, cold bites, heck, we love everything. What’s your favorite snack? And what’s your favorite splurge?

I will end this because I know you are getting hungry, but one more story. One restaurant was famous for their Hamburger by Death. Half pound ground round grilled and steamed and then covered with special peppers, sauce and cheese and then transferred to a hot buttered bun served with hot crispy fries. Yikes!

Happy Monday!

58, 68, or 78; It’s Never Too Late

Friday, January 23rd, 2009

 

I received a call yesterday from an old friend who I haven’t spoken to in more than 10 years. Now I know my first sentence is an oxymoron because how can one have a friend that you haven’t spoken to in more than 10 years? Life is funny that way. Suffice it to say that if I needed anything from him, he would be there. With that said, he is an old friend.

We started in the nail business together in the mid-80’s. He rose to stardom at his company in quick order. He wore perfect suits every day, had perfect manicured nails and brilliant white teeth. You would never seem him wearing a pair of jeans. While he had a sense of humor and could laugh, he was very serious about business and it became his life.

We met each other for dinner at trade shows, shot the bull on the phone during the week and we pushed each other for better deals and bigger orders. Back then everything was innovative and his ideas worked. My friend had the time of his life and was happy.

Then the company owner decided it was time to retire and the typical meltdown occurred when the owner sells and life at his company was never the same. He left and went to work at a couple other companies before settling down with his current company that he’s been at for quite a long time.

During our conversation I asked him how things were at the company and life in general. He told me that 2009 was the year he needed change in his life and that he needs to be challenged. I asked him what he meant by that. He said that yes I am traveling, meeting customers and making numbers, but my company doesn’t want to listen to any of my ideas and they want me doing no less or no more than what I have been doing for so long.

My response was if you have been doing this for so long, why the change? He shot back that he has been "comfortable" over the years but now comfort isn’t what he’s seeking. He wants another opportunity to experience the thrill of entrepreneurship and taking an idea to fruition and seeing it work. I asked him what brought this on.

A friend of his asked him when was the last time you saw the sun rise? Being a sailor and from California, my friend used to see the sun rise all the time. But sadly he responded to his friend that it’s been more than 30 years. He took his friends advice and went to the beach at 6:00AM to see the sun rise. The sun’s rays sparkling on the ocean and the peacefulness of it all brought the realization to his brain that it was time.

At 58, my friend is ready to make the change. I told him at 58, 68, or 78, it’s never too late and there are countless stories of individuals who were more successful later in life than earlier in life. I told him  all you need is an idea, perhaps a partner to excel at the things you don’t and the will to take the risk in the worst economy since the Great Depression.

After nearly an hour on the phone we hung up. I know he thought about the conversation a long time afterward and is still thinking about it. At 58 or at any age, when is the right time to stop being comfortable and take risk knowing the consequences?

There is one thing I know. If America is going to get back on track, we need more people like my friend to get out of the comfort zone and make it happen. I hope he does just that.

Happy Friday!

 

 

Brain Rules

Thursday, January 22nd, 2009

 

I read one of the more amazing books recently, Brain Rules by John Medina. The author talks about the role of the brain and although gets into some technical terms, he allows the reader to get the important insights we need to know without all the medical jargon.

Here are some insights I picked up that I thought you would be interested to know about.

Sales Strategy Summit 9-07 025

Tom Trybus is one of our VP of Sales and is in charge of The Pavilion. Now if I just mentioned his name, you would skip right by it, forget the name in a matter of minutes or hours and have no recollection. But the photo above gives you a brilliant mental snapshot of what Tom looks like and how relaxed he can be when he is working hard.

MSU 002

This is a photo that was taken at Michigan Stadium in Ann Arbor during the U-M vs. MSU game. You can see the 110,000 plus fans and all the green and white cheering as the Spartans crushed the Wolverines. Now if I just mentioned the Stadium without the photo, you would not even think about what it looked like.

The brain remembers photos and not words. In fact, of the major senses we have, vision takes up a full 50% of the brains capacity. That is why visuals are so important.

The brain makes up 2% of your body weight but accounts for 20% of calorie usage. One reason why physical exercise is so important is that the oxygen intake feeds brain cells and keeps them sharper. It’s no mystery why physically fit people are more alert. The author recommends a minimum 30 minutes per day.

Question: The brain is more active when you are awake or when you sleep? The answer: When you are sleeping. In fact, the brain doesn’t stop working when you are sleeping and that is the time the brain absorbs all the input from the waking hours into the "memory" area. It is also one reason why 7-8 hours of sleep are so important. Without sleep, the brain can’t do its thing.

human brain

I remember the above photo from high school. I was never one for science and stuff and still aren’t. But the brain is fascinating and we all have one. It’s how we use it that determines our daily outcome in life. If you want to learn more, read the book.

Happy Thursday!

Yes You Can

Wednesday, January 21st, 2009

 

Another chapter in the US history books was written yesterday with Obama taking oath and moving into the White House.

Funny thing about history and events: moving vans were moving George W. out at the same time moving vans were moving Obama in. Obama and his family will enjoy at least four years in the historical house and time will tell if his 79% approval rating will hold up. For right now, Obama has it going.

We all know his motto is "Yes You Can." He specifically and thoughtfully only used the "I" word three times in his address. Listen, this guy is smart and has read more books than most of us plus he got his Master’s from Harvard.

I like the optimism in his motto. When he speaks, he reminds me of a great motivational speaker that when you are done listening, you want to do. But then time goes by and the message is lost.

Gallup has taught our company many things about engagement, the right path, our strengths and how to use our strengths effectively. We work hard at it daily yet we fail at times to maximize our talents.

Yes You Can can mean a lot of things to people. At its simplest point, a married couple can be happy. A family can get along. Employees at each company are productive and happy. Cities can be great places to live and work. We can be poverty, crime and pollution free. We can quit smoking, lose weight, improve our health. We can do anything.

Yet, we cannot agree on which flavor ice cream is best: Vanilla or Chocolate. Yes, Vanilla is the most popular flavor at 68% but what if you love chocolate more? Can you agree to love vanilla instead?

What Obama’s message is really about is that anything we can do will take a lot of work, perspiration, dedication and change of life style to accomplish. Are we willing to do that? And do we have the opportunity to do that?

I know one thing for sure. TNG is not getting any money from Obama. TNG is not getting any cost reductions in its benefit package it pays for its talent. We aren’t a bank or an insurance company and for that, we can say we are lucky. But at the end of day, only TNG can do what it takes to make it happen and that my friends is exactly what we are focusing on in 2009.

Obama brings hope and let’s hope we can do our part because the I alone won’t work. 

Happy Wednesday!

 

 

It’s Time to Stand Up and Brag

Thursday, January 15th, 2009

 

The first month of 2009 is already half gone or there is still half the month to go. My friend who greets meet when I enter the Sports Club has already resorted back to smoking after a 9-day smoke-free run. Most resolutions by now have been broken or forgotten.

It’s 0 degrees in the Motor City but the sun is out. In another few blinks of the eye, it will be February so before the year gets into full gear and we start thinking about spring, I think today is a great day to stand up and brag about something you have accomplished in the first two weeks of the year.

After all, the news continues to suck and it’s not like anyone is telling us anything good is going to happen soon. Fact is, there still is a lot of good out there so it’s time to lift off the modesty mask, stand up, and brag out loud!

Now I understand like a crowd at an event, it takes the first person to start clapping to get others to clap. Be brave, take a chance, and be among the first to start bragging.

Happy Thursday!

P.S. I am taking a couple days off tomorrow; be back on Wednesday.

The New tng worldwide.com

Wednesday, January 14th, 2009

 

Way, way, way back all the way to 1995, just when Amazon had diapers on, Daniel was just starting puberty and Clinton was doing whoever, I saw the opportunity to get on the web bandwagon.

Fact is, we were the first beauty company to launch a website and that hindsight has made us the #1 e-commerce website in the pro beauty industry.

But let me tell you, website design and functionality is not a simple task to accomplish. It takes a talented team to combine code, design and logarithms to make it work. Over the years, we have updated our websites too many times to count.

Now with the launch of our new company name to tng worldwide, we had to once again relaunch our websites. This time around a very talented individual who I will call Mr. "20/7" because he works 20 hours a day, 7 days a week (I did ask him about the other 4 but he said he needed time for himself) took the bull by the horn and made our new site the best ever.

And this is only the beginning.

Finally we have a cohesive website that gives you everything you need to know about TNG including our famous shopping link to thebeautybook where you can shop day and night.

This is exciting. However, the next step will transform our shopping cart to a whole new level and that is what Mr. 20/7 is working on now. In the meantime, take a few minutes and see what the new tng worldwide is all about.

Happy Wednesday!

Things We Hate When We Are Late

Tuesday, January 13th, 2009

 

I’m an on-time type of guy. In fact, I always like to be a couple minutes early than a couple minutes late. "On-timers" relate to each other and hate the "too-laters." The too-laters are always late and whether it’s a couple of minutes or longer, they always seem to have an excuse why.

One answer I have is that it is in our DNA to be on time or late. Inevitably, we are always late at one point in our lives and it seems the craziest things happen at the same time. Here is my list of the things we hate when we are late:

1. You hit every red light.

2. You need to fill your gas tank. Now I don’t know about you, but can those reels move any slower when you are filling up and want to go?

3. You need to go to the bathroom.

4. You are behind the slowest driver and can’t pass.

5. Airport security is down to one lane. Worse: you get beeped and have to be hand patted.

6. You get lost and miss the crucial exit.

7. A phone call, email and text message come at you simultaneously right before you get to where you need to be.

8. You need a pen to write something down and there isn’t one anywhere.

9. You forgot your ticket or passport.

10. You need to call to let the person know you are late and don’t have the number or lose cell service.

You see, now you know why it’s so much better to be early and/or on-time, and that doesn’t even take into consideration the stress "on-timers" have to deal with the "too-laters!" For 2009, have a sense of urgency and be on time.

Happy Tuesday!