Relationships Win, Numbers Lose

 

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!

7 Responses to “Relationships Win, Numbers Lose”

  1. donna Says:

    You are so right. Relationships always win regardless of the circumstance. If all you ever think about is the bottom line, sooner or later you will have nothing, plus you won’t be very proud of yourself. There are great rewards for those who genuinely care about how they get to the top.

  2. Renee Marie Borowy Says:

    It’s funny how we can look back in life and realize that things really do happen for a reason! I sincerely believe that you cannot sustain ANYTHING in life without passion. When you are looking for money it will consume your every move; when you are working from your desires or your passion money is secondary and this is a prime example! So “Follow Your Dreams” is a saying that most of us have heard before; have you ever heard “Follow your Wallet?” I have never seen that on a banner have you? Renee’ M. Borowy-VIP Salon & Spa

  3. lydia Sarfati Says:

    hello Larry. Happy New year wishing you continued success . Lydia

  4. Larry Says:

    Hello Lydia-Happy New Year to you as well. Glad to hear from you and hope all is well.

  5. Lori Fuchs Says:

    Larry.
    Your words of wisdom are once again right on!! Loving your blogs lately.
    Thanks for the great ride!!!

  6. Holly B. Says:

    Thanks Larry for your honesty and integrity. You told us the truth and we are grateful to you and TNG for really being open. I spent a number of years around the LOreal brand under Craggs and can tell you that you should hold your head high.

  7. stacy Says:

    OMG, so happy!!!!
    You are right it is about time and as we all know Karma is truly a bitch!
    I did call him out on his Blog about diversion when he first launched his blog however it was never posted…hum I wonder why??
    Have a great day!