Texas Here We Come!

If you could magically get up and leave the state you live in, which state would you move to?

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It’s official: TNG Worldwide is opening up its third distribution center in Coppell, TX, a Dallas suburb.

Gaye Wanner, VP of Logistics, has visited the site and is excited as punch. “It’s perfect for us. The space is already built out, they are adding a couple extra offices and it is located in a great area.”

Opening date is set for November 1. When Ted Eisenhut, VP of Purchasing, was asked if his team was ready for Texas he quipped. “This team is used to ordering for four DC’s so this shouldn’t be an issue. They are ready to provide the same stock levels in Dallas as LA and Detroit.”

Texas boasts four of the top 10 cities in the USA and is the only state to add population growth. The key markets are Houston, Dallas, Ft. Worth, Austin and San Antonio. Initially, the DC will ship inclusively throughout the state. “As we get inventory and movement under control, we will add a couple more states,” added Wanner.

The Texas DC will stock all thebeautybook products with the exception of Hospitality and furniture. This will help transition the opening.

Shawn Peralta, CFO, added “This will add tremendous growth to TNG and gives our growing customer base in Texas next day service. We are very excited for our customers.”

TNG  will operate the largest distribution center in Texas and offer beauty professionals the largest selection and quantity of products. Both its competitors operate franchise locations and ship from their store locations.

This is going to be fun.

Happy Thursday!

CND’s Shellac Creates New Category Overnight

What do you think will be the most popular nail service in two years at the salon?

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TNG has been selling nail products for more than 26 years. For us, it started with a “honey tip” brush. I will never forget a nail tech coming into my store and asking me for this brush. I asked her, “Why would you want honey on the tip of it?” She laughed and told me it was a brush made by Creative Nail Design.

The things you learn in business. Solarnail was the rage and invented by Dr. Nordstrom who was Jan Arnold’s (co-founder) and Jim Nordstrom’s (co-founder) father. Nordstrom was a dentist and figured out dental products could be used on nails. And voila, acrylics and Creative Nail Design were born.

This new category was hot, hot, hot. This spawned new companies overnight including the now infamous Odontorium Products, Inc. known as OPI started by George Schaeffer in 1981. Schaeffer’s family was in the dental supply business and coincidentally, discovered the same thing about dental products being able to be used on nails.

Everyone wanted in. Larry Gaertner went from collecting guns to making No Lift Primer. Jack Sperling rode the wave with Alpha 9 and his trade show had no less than 100 acrylic companies hawking powders and liquids.

Then came odorless acrylics. Frank and Laura DeSantis’s Aqua Nails was the rage. Both CND and OPI came out with their formulas but the stickiness and application issues were too much to overcome.

Fast forward to 2010 and CND has once again invented a new category: Gel polish. President John Heffner claims CND spent over 4 years on product development and wanted it just right. Prior to introduction they did a dog and pony show with their top USA distributors to get opening order ideas and launched internationally.

Based on their data they came up with a plan and then tripled it. Little did they know what was in store. “It totally blindsided us,” quips Jacquie Johnson, VP of Sales. “Not even Larry could predict this overnight sensation.”

OK, I will admit I was hesitant due to the economy, price and prior launches. But in 26 years, I have never seen anything like Shellac.

Now that we have the new category, here is what I don’t get. How did so many companies come up with their own version in less than a couple months when it took CND over 4 years? How does Danny Hale’s Gelish have 48 colors with zero R&D and how does Jessica have 36 colors overnight?

Rick Slack, President of NSI, gave me a call and told me his new line coming out in October has been in R&D for quite a while. At least NSI has R&D. NSI’s line will sport 24 colors in 1/2 oz. bottles for a great price.

American International’s IBD and China Glaze are coming out as well this fall and they certainly have the resources behind them. But I’m seeing companies come out of the woodwork with 24, 36, 48 and even more colors. The question is, none of these companies have a chemist on staff, none have a working lab and all are outsourcing. How can they all be doing this at the same time?

Ah, the acrylic days are back. When Kym Lee, a nail tech in Southern California can launch a line called Galaxy while doing nails at her salon, you know anything is possible. Kym was a great gal and was in the right place at the right time. But now?

I wonder. Shellac has the name, the PR, the formulation. What they don’t have is stock. I was told we will receive some early next week and most orders will be fully caught up by late September. CND’s arch rivals are salivating. But in the end who will survive?

And what will the fate of the nail polish industry be?Women who have been accustomed to choosing from among 300 colors are tickled pink to find any Shellac color and wear it.

But the biggest question is what is George Schaeffer coming up with? OPI owns the color category and the one thing I know about George is this: Not only will he come out with a winning product, he will have plenty of inventory.

Game on. In the end, it will just like 1985 again, CND and OPI.

Happy Thursday!

CND’s Shellac Creates New Category Overnight

What do you think will be the most popular nail service in two years at the salon?

View Results

TNG has been selling nail products for more than 26 years. For us, it started with a “honey tip” brush. I will never forget a nail tech coming into my store and asking me for this brush. I asked her, “Why would you want honey on the tip of it?” She laughed and told me it was a brush made by Creative Nail Design.

The things you learn in business. Solarnail was the rage and invented by Dr. Nordstrom who was Jan Arnold’s (co-founder) and Jim Nordstrom’s (co-founder) father. Nordstrom was a dentist and figured out dental products could be used on nails. And voila, acrylics and Creative Nail Design were born.

This new category was hot, hot, hot. This spawned new companies overnight including the now infamous Odontorium Products, Inc. known as OPI started by George Schaeffer in 1981. Schaeffer’s family was in the dental supply business and coincidentally, discovered the same thing about dental products being able to be used on nails.

Everyone wanted in. Larry Gaertner went from collecting guns to making No Lift Primer. Jack Sperling rode the wave with Alpha 9 and his trade show had no less than 100 acrylic companies hawking powders and liquids.

Then came odorless acrylics. Frank and Laura DeSantis’s Aqua Nails was the rage. Both CND and OPI came out with their formulas but the stickiness and application issues were too much to overcome.

Fast forward to 2010 and CND has once again invented a new category: Gel polish. President John Heffner claims CND spent over 4 years on product development and wanted it just right. Prior to introduction they did a dog and pony show with their top USA distributors to get opening order ideas and launched internationally.

Based on their data they came up with a plan and then tripled it. Little did they know what was in store. “It totally blindsided us,” quips Jacquie Johnson, VP of Sales. “Not even Larry could predict this overnight sensation.”

OK, I will admit I was hesitant due to the economy, price and prior launches. But in 26 years, I have never seen anything like Shellac.

Now that we have the new category, here is what I don’t get. How did so many companies come up with their own version in less than a couple months when it took CND over 4 years? How does Danny Hale’s Gelish have 48 colors with zero R&D and how does Jessica have 36 colors overnight?

Rick Slack, President of NSI, gave me a call and told me his new line coming out in October has been in R&D for quite a while. At least NSI has R&D. NSI’s line will sport 24 colors in 1/2 oz. bottles for a great price.

American International’s IBD and China Glaze are coming out as well this fall and they certainly have the resources behind them. But I’m seeing companies come out of the woodwork with 24, 36, 48 and even more colors. The question is, none of these companies have a chemist on staff, none have a working lab and all are outsourcing. How can they all be doing this at the same time?

Ah, the acrylic days are back. When Kym Lee, a nail tech in Southern California can launch a line called Galaxy while doing nails at her salon, you know anything is possible. Kym was a great gal and was in the right place at the right time. But now?

I wonder. Shellac has the name, the PR, the formulation. What they don’t have is stock. I was told we will receive some early next week and most orders will be fully caught up by late September. CND’s arch rivals are salivating. But in the end who will survive?

And what will the fate of the nail polish industry be?Women who have been accustomed to choosing from among 300 colors are tickled pink to find any Shellac color and wear it.

But the biggest question is what is George Schaeffer coming up with? OPI owns the color category and the one thing I know about George is this: Not only will he come out with a winning product, he will have plenty of inventory.

Game on. In the end, it will just like 1985 again, CND and OPI.

Happy Thursday!

Michael O’Rourke Rocks TNG and The Academy

Michael O’Rourke Rocks TNG and The Academy

How many hair products do you use in a typical day?

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Monday was a very special day and night indeed. It’s the day Michael and his COO, Nicole, came to TNG and The Academy and set a new direction for education, products, inspiration and down-to-earth fun.

During the day, Michael’s sold out cutting class was filled with awe-inspired hairdressers. Many commented they learned more in this class than any other. They loved the energy, commitment and devotion Michael shared. It was great to see.

Michael teaching hands-on class Michael teaching new techniques

Day followed night with the sold out launch party. Instead of 3 models as originally planned, Michael did 6 models while keeping the audience glued to the stage. Nicole made sure the music was in gear and Michael’s high energy carried him throughout the night.

Here are some photo highlights:

Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party

All in all, it was a great success. We are now getting ready for the Label.m launch party and Tiffany featuring DREAMS event October 3 at Andiamo showplace in Warren.

Happy Wednesday!

Michael O’Rourke Rocks TNG and The Academy

Michael O’Rourke Rocks TNG and The Academy

How many hair products do you use in a typical day?

View Results

Monday was a very special day and night indeed. It’s the day Michael and his COO, Nicole, came to TNG and The Academy and set a new direction for education, products, inspiration and down-to-earth fun.

During the day, Michael’s sold out cutting class was filled with awe-inspired hairdressers. Many commented they learned more in this class than any other. They loved the energy, commitment and devotion Michael shared. It was great to see.

Michael teaching hands-on class Michael teaching new techniques

Day followed night with the sold out launch party. Instead of 3 models as originally planned, Michael did 6 models while keeping the audience glued to the stage. Nicole made sure the music was in gear and Michael’s high energy carried him throughout the night.

Here are some photo highlights:

Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party Michael O'Rourke Launch Party

All in all, it was a great success. We are now getting ready for the Label.m launch party and Tiffany featuring DREAMS event October 3 at Andiamo showplace in Warren.

Happy Wednesday!

Getting Back To The Gold Standard

June was the hottest month in recorded history. Do you like the hot?

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I admit it. The pace of business, technology and complexity has taken us away from the three basic premises of what we need to do best:
1. Take an order
2. Ship an order
3. Get paid for an order

While the basic premises are so simple, execution is not. We get wrapped up with “solutions” that give us “outs” but more times than not, do not address the core. For instance, let’s take the process of taking an order. Getting put on hold for minutes waiting to speak to a live person has become so common, why focus on expediting the wait period? In fact, we hired a third-party provider to answer our calls after 60 to enhance our service levels. While this alleviated long wait periods, the level of service from our third-party provider was below standards.

Getting back to the gold standard is what TNG  used to do: Answer the phone in 3 rings or less. In an era where customer service continues to decline and more consumers are up in arms over this issue, and companies must control costs to stay in business, this gold standard is difficult to accomplish. But if we are going to deliver on our mission of 100% Customer Success, it’s time to try.

We tossed out our third-party provider and are hiring additional talent. We will achieve our objective and while there will be occasional lapses, the level of service for this basic premise will be world class.

The second premise, ship an order, we do quite well. But it’s not the gold standard. While we invested more than $4 million into SAP since October 2008, only now are we getting to a point where the data is being transformed properly. We still need another 12-18 months. But we now have an effective VP of Purchasing that is closing the gap quickly and positive changes will take place.

If there is one thing every person at TNG knows about me, it’s that I despise being out of stock. Yes, there are times that key suppliers (CND Shellac in this instance) are out of stock and there is nothing we can do. And while we may be in stock 99% of our top 200 items and 97% of everything else, we need to be better. And we will be.

The gold standard is that our customers place an order and that the order ships complete and arrives perfectly intact. This is world class and this is what TNG is known for. We will not disappoint.

The third premise is one that we have refined well and will continue to assist our customers through the “cloud” movement. TNG was first to eliminate shipping C.O.D. (and saving our customers $10.95 per order). TNG was first to use ACH payment (and saving even more fees). TNG was first to send invoices and shipping notifications electronically. When it comes to shipping and payment fees, I can say we are the best in class and will continue to maintain the gold standard and improve yet even more.

I admit it. Our team of over 200 TNG talent admit it too. There is no team more dedicated and focused on achieving the gold standard. The past 25 years has been quite a ride; we are focused like never before on the next 25 years. Thank you for your understanding and partnership as we get back to the gold standard.