PBA Progress Fall06 Newsletter

8/14/2019 PBA Progress Fall06 Newsletter

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ProgressAn Update or Members o the Proessional Beauty Association

Fall 20

nside this IssueLetter rom Government

Aairs Director 2

You Belong Campaign 3

Advertise Your Membership 3

Center or Business Education 3

NAHA Winners 4

Distributor Letter 5

Distributor Sales Promotion 5

Distribution Technologies 6

Manuacturer Letter 7

Anti-Countereiting Legislation 7

Cosmopro North America 8

Nail Manuacturer Council 8

Salon/Spa Letter 9

Symposium Preview 9

Owning Up to

Being the Owner 10

A Look at Health

Insurance Premiums 11

Beneft Highlight: ISSE 12

Event Spotlight

For more, turn to page 3.

Symposium 11TSA

getin thegame

YouBelong.

January 20-23, 2007San Antonio Marriott Rivercenter


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PBA Progress(Fall 2006)

is a publication of

the Professional Beauty Association.

A Letter from the Government Affairs Director

youre like most people, government affairs

kely isnt the rst thing you think about whenou wake up in the morningand probablyot the last thing on your mind at the end ofhe day. Yet, for good or bad, we know thatecisions are made everyday by all levels ofovernment that have a direct and real impactn our personal and professional lives.

he professional beauty industry is a $60-illion economic engine that employs tensf thousands of individuals and serves

millions of customers every year. Tonsure that this industry stays strong andibrant, having a collective voice becomesxtremely important.

he good news is that PBA is working hard

o be this collective voice. Past surveys tells that government affairs is a high priority

or our membership. And it is certainly anrea where PBA can have a great deal of

nuence on the environment in which we dousiness. As youve likely read in past issuesf this newsletter, PBA leadership has madeovernment affairs one of the associationsighest priorities.

Over the next few months, you can expectto hear a lot more as we build on a solidfoundation in creating a new and responsivegovernment affairs program. PBA will be callingon you to take action on issues of importance.Whether we ask you to send an e-mail to amember of Congress or share your thoughtson a particular issueyour involvement willabsolutely make the difference!

There are ways you can get involved rightnow. If you have state or federal issues youare dealing with we want to hear aboutit. If you have a special relationship with amember of Congress, state legislator orlocal regulator - please let us know. Areyou interested in keeping up on the latestindustry news? Consider joining PBAsgovernment affairs listserve.

Make no mistake about it, when individualsand businesses join together in an associationlike PBA, we can be a powerful and effective

voice for this industry.

Sam Leyvas joined PBA as Director ofGovernment Affairs in June 2006. Sam works

side-by-side with PBAs volunteer leadershipto advance the industrys advocacy agenda

in Washington, DC and statelegislatures across the country.You can reach Sam at 800-

468-2274 (480-281-0424) x118or email [email protected].

Professional Beauty Association

15825 North 71st Street, Suite 100

Scottsdale, Arizona 85254800-468-2274 (480-281-0424)

Fax: [email protected]

The Professional Beauty Association (PBA

a non-prot trade association that represe

the interests of the professional beauty indu

from manufacturers and distributors to sal

and spas. PBA serves the industry w

education, government advocacy, comme

opportunities, research/statistics and pu

relations/image building.

August 15, 2006: PBAmember David Horton,owner of The BrothersSalon in Shreveport,

Louisiana, presents

a PBA Friend of theIndustry award toRepresentative Jim

McCrery. McCrery iscritical co-sponsor of our tip-tax legislationandossibly the next chairman of the House Ways &

Means Committee.

May 18, 2006:Trent

Day of Scruples, a PBAmanufacturer member,

styles a Capitol Hillstaffer during Welcometo Our World (WTOW),

the annual makeover

of Congress. Membersof Congress and their

staff praise WTOW

as one of the most

popular events on theircalendar.

May 18, 2006: PBAmember Paul Brown of

Paul Brown Salons &Spas in Honolulu drew

members of the Hawaiiandelegation to his station.

May 18, 2006: PBAmember CharlesRiser Jr., owner ofMarylands New YorkNew York Salon andThe Temple Academy,connects withRepresentative Luis V.Gutierrez of Illinois.

May 18, 2006:PBA Executive Director Sleeper presents Congressman J.D. Haywo

Arizona with the 2005 Legislator of the Year aHayworth, a co-sponsor of PBAs tip-tax legislpraised PBA members cheerful persistenceexplained that the difcult part is nding the

vehicle to move the legislation for

If you have a success story and picture to with other members, please

sage@probeaut

Government Affairs in Action

www.probeauty.org

The professional beauty industry is a$60-billion economic engine


3/12

The Professional Beauty Association is running a new membership campaign in Fall006. The campaign, which features images of members, highlights the benets of

belonging to the association.

he campaign focuses on:

business tools education

government advocacy networking and more!

Get involved and help grow PBAs ranks. Here are some ideas:

. Run an ad.you have a publication that reaches potential PBA members and would be willing to runmembership ad, please email [email protected]. (Ads in member publications are

ustomized to include the members logo and acknowledge the membership at the bottom.)

2. Create a networking group.Networking is the most effective way to reach new members and sustain existing members. Ifou are interested in starting a group in your area, please visit www.probeauty.org/networkingor tips on how to get started. Well help!

3. Start the conversation.Distributors: Ask your DSCs to push membership when they speak with their customers.Salons/Spas: Ask your distributor if theyre a member. If theyre not, ask why!Manufacturers: Encourage your top salons and distributor partners to become members.

o request recruitment pieces,all 800-468-2274 (480-281-0424)r email [email protected].

Center for Business

Education Fall Classes

Launched in Spring 2006,PBAs Center for BusinessEducation (CBE) provides on-going, execulevel education for professional beindustry distributors, manufacturers salons/spas. CBE educational program

unlike any othertaught by successful pwith in-the-eld experience and focuseour industrys issues. All classes take plaPBA headquarters in Scottsdale, Arizona

Learn to Build a Salon Em

featuring Eveline Charles

October 15-16, 2006

With over 30 years of salon business acuthe Eveline Charles teamCanadassalons/spas will show attendees how to a protable salon business, including to expect from a Location Manager, ind

benchmarks and how to get started. LeEveline Charles herself (Owner/CEO), the includes Lina Heath (VP, Operations), CanJahns (Operations Director) and Brenda N(Academy Director).

Top Gun Sales

Manager Training

November 2-4, 2006

This full-blown sales manager traprogram is designed to help distribution managers get results, learn from peersacquire new industry knowledge. Hoste

some of the industrys top sales gurusTop Gun Sales Manager Training prowill leave attendees with enough ammunto hit their sales targets.

How to Become a Million

Dollar Sales Consultant

November 4-5, 2006

Sales consultants will learn from indpeers how to manage time, prole cand build relationships with salons to them succeed. Hosted by Tom Conley (GMarshall Salon Services) and facilitateSteve Withrow (Salon Sales Consultant)Rosemary Pearson (Business ConsuSalon Services & Supplies), How to Beca Million Dollar Sales Consultant unveilsecrets others have used to achieve sucin the beauty industry.

To register for any of the Fall 2006 semi

please contact Melissa Coe at 800-468-x128 or email [email protected] information on CBE, please visit wprobeauty.org/cbe, call Samantha Alv800-468-2274 x117 or email samanprobeauty.org.

You Belong!

Ibelong.

WeBelong. Redkenis aproudmemberofPBA.

Discoverthebenefts obelonging! TheProfessional BeautyAssociationis madeupofsalonsandspas,

distributors andmanufacturersdedicatedtoimproving theirindividualbusinesses andtheindustryasawhole.

PBAoffers: business tools education governmentadvocacy networking andmore!Itseasytobelong.Jointoday.Visitwww.probeauty.orgorcall800-468-2274.

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Advertise Your MembershipPBA salutes manufacturer member Joico, who

ncluded a PBA member logo on their recent

d campaign. Show your PBA pride in your

dvertisements. Download the PBA member

ogo at www.probeauty.org/download.


4/12

NAHA Salutes Hairstylings

Next Big Things

he North American Hairstyling Awards (NAHA), theeight of North American hairstyling competitions,

cknowledges the very best stylists, leadersnd trendsetters in the world of hair and beauty.his years awards gala, held July 17, 2006 athe Mandalay Bay in Las Vegas, was hosted byohn OHurley of Seinfeld and Dancing with thetars fame. He brought his elegance and charm

o the stage as the following twelve winners werennounced:

Avant GardeNicholas French

(Matrix Academy,West Hampton, NY)

Contemporary ClassicDusty Simington

(Salon Gregories,

Newport Beach, CA)

HaircolorAdriana Balea

(Toronto, ON)

Long Hair DressingAnn Bray

(The Masters,

Huntsville, AL)

Makeover

Lorraine Wilkins

(Enviro Trends, St.Thomas, ON)

Texture

Jackie Elliott

(Vault Salon & Spa,Winnipeg, MB)

Make-UpArtist of the YearAngelia Senevisai

(Maplewood, MN)

Student Hairstylistof the YearKirby Keomysay(Capitol School ofHairstyling, Omaha, NE)

Salon Team of the YearEnviro Trends

(St. Thomas, ON)

Editorial Stylistof the Year

Veronica Bessey

(Carrollton, TX)

Hairstylist of the Year

Maureen Anlauf(Juut SalonSpa,

St. Paul, MN)

Master Stylist of the YearHeather Wenman

(Entrenous/AcademyHeather Wenman,London, ON)

Carmen DePasquale, founder and CEODePasquale companies, joined the NAHA HLeaders in 2006. The Hall of Leaders recogoutstanding contributions to the hair and bindustry. Past inductees into the Hall of Leinclude Bruno Mascolo (2005), Winn Clayb(2004), Ann Mincey (2003) and many more.

Michael Gordon, founder and CEO of Buand bumble, received the prestigious LifAchievement award in 2006. The LifAchievement Award, NAHAs top honor, recogoutstanding contributions to the hair beauty industry and is limited to licensed professionals. Past winners represent preeminnovators from the industry, including Sam Br(2005), Horst Rechelbacher (2004), Robert Lo(2003) and many more.

Honor i ng Top Ha i rsty l ing

Join the forces of the next

style revolution! NAHA is

recruiting all super-stylists

with an eye for fashion and

an edge for change.

Download an entry form at

www.hairstylingawards.com.Deadline for entry: February 1, 200

Questions?800-468-2274 (480-281-0424)

[email protected]

NAHA Recognizes

Industry Leaders

Carmen

DePasquale

Michael Gord

www.probeauty.org

NAHA is a photography-based hairstycompetition produced by the ProfessiBeauty Association. NAHA celebrates the and artistry of creative professionals in beauty industry. NAHA also honors outstanbusiness leaders in the industry with the Ha

Leaders and Lifetime Achievement award

produced by PBA


5/12

A Letter from the Leadership

Opportunities for PBA distributor membersontinue to increase! In our last update, I

mentioned three goals for our section:

mprove Communication

Foster Peer Education and Networking

Provide Benchmark Research

Our progress report on these goals:

mprove Communication. In this issue of

PBA Progress, youll nd articles on importantopics for distributors, including a piece onechnology and distribution. Article ideasome from the suggestions of fellow distributor

membersif you have a suggested topic,lease email [email protected]. In addition,ur distributor listserve is always availableo our members. Ask a question or share aaluable resource with other members. Forxample, see the sidebar for a tip on credit

ard processing.

oster Peer Education and Networking. Im

leased to announce two spectacular Centeror Business Education (CBE) events this Fall:op Gun Sales Manager Training November 2-, 2006 and How to Become a Million Dollar

Sales Consultant November 4-5, 2006. Both

classes will take place in the PBA ofce inScottsdale, Arizonaa great place to be inNovember. Both classes will be facilitated byindustry peers, including one Million DollarSales consultant that writes over 2.8 milliondollars a year! Our distributor education andnetworking opportunities will continue toexpand with Spring CBE events. If you havea topic of interest or would like to facilitate a

class, feel free to contact me.

Provide Benchmark Research. Our PBADistributor Benchmarking Study went out toall PBA members in August. Thank you to allmembers who took the time to complete thebrief, on-line survey. Results will be availableto the participants of the survey this Fall.

Feel free to call or email me anytime withsuggestions on how the PBA DistributorLeadership Council can serve youwith more communication, education,networking and research.

Bob Peel Jr.Peels Salon ServicesPresident, DistributorLeadership Council

620-662-3374 | [email protected]

Distributor Section

Distributor Sales

Promotion Ideas

Sales promotions take careful planningbut can yield great results. Here are aew ideas from member distributors:

DSC Rumble:Boxing Theme

ach DSC goes one-on-one againstfellow DSC for a week. Each earns

ifferent points for selling differenteals. The DSC with the mostoints wins the ght. After an

ight-week period, we look atwhoever has the top recordnd they win the Championshipelt, which gets them a bigrize. We have different weight-lass divisions, so veterans gop against veterans and rookiess. rookies.

Josh Hafetz,Raylon Corporation

Reading, PA

PostcardCampaign

to Up RetailSales

Goal: To promote

increased retailsales to a salons top

50 clients. Method:A postcard mailingoffering a $10 savings on a $50 retail purchase(a 20% savings). The distributor produces thepostcard, and salons and stylists personalizeit to the client. The salon pays postage.The salon turns in redeemed postmarked

postcards for $5 to the distributor. (Salonproduct cost is covered by the distributor.)A salons best clients will usually try newproducts from the distributor thanks tothis offering.

Jim MarshallMarshall Supply Company

Dixon, IL

Encouraging StylistsRetail Performance

Sales contests motivate stylists to sspecic brand or item/s. Set a sales goa certain number of products, such as 348 pieces. Allow every stylist who reathe goal within a specied time period toa prize. The prize can be the product bsold, shears, a blow dryer, etc. This coencourages all stylists to participate andnot just the top producers.

Max WBeauty Craft Supply & Equip

Hopkins

Share your own great sales promoDistributor members can share tips,questions and discuss trends in the indthrough the distributor listserve. exclusive-to-distributors communicvehicle is a great way to experiencepower of networking at your own dSubscribed distributor members simply email [email protected]? Email [email protected] 800-468-2274 (480-281-0424) tosubscribed.

Save on Credit Card Process

Credit card processors typically char

different rate for processing different t

of credit card transactions. For exam

if the card is physically present at

time of the transaction and swiped,

credit card processor will charge less if the transaction is processed wit

physical card presence. Also, busi

cards usually have a higher proces

cost than a personal credit card. If c

card processing costs are signican

your business, contact you bank or

processor to see if you can reduce

rates by the way you process credit ca


6/12

What are the benets of a WMS?

On-time order fulllment and productdelivery to the customer

Labor reductions through productivityimprovements and increasedaccountability of employee time

Space savings through reducedinventory levels and maximizationof storage locations

Real-time inventory accuracy andvisibility throughout your supply chain

Improved shipping accuracy anddramatic reductions in returns

On-demand utilization of bar codeand RFID technologies

An integrated multi-carrier shipping

system to reduce shipping costswith audit capability

Modular design allowing the warehouseoperations to be dynamic over time

These are all quantiable benets that provideyou with signicant hard cost savings. Thereare a signicant number of intangible benetsas well.

The WMS you choose should be modular indesign. Even though the basic processesremain the same, the needs of a $100Mbeauty supply company are obviously moreextensive than that of a $20M company. TheWMS must be exible enough to grow withyou and expand/contract as your businessdemands uctuate.

Also, the WMS should be able to drive alltypes of warehouse equipment. For example,Marshall Salon Services (Dixon, IL) usessuch a combination to fulll their distributionneeds. They use carton ow rack (with pick-

to-light) for their high velocity items, horizcarousels for their medium movers, pallet racking with Radio Frequency technology for their larger shipments andmovers. Their WMS is the intellectual bof the warehouse and provides them witinventory visibility necessary to make realdecisions on behalf of their customers.

With respect to the ROI, a reputable Wsupplier will provide you with meanistatistics. At the most, 18 months shouyour goal for payback. If you ask Jim Marof Marshall Salon Services, he will tell youhe dramatically exceeded his expectatand the payback period was consideshorter than he imagined.

There is an old axiom in business: warehouse is a cost center. But isnt it alsothat you dont collect a dime if you dont sMaking your distribution cycle efcienactually enhance your customer retentionhelp secure new customers as you out peryour competition. Your distribution capabiactually getting you more businessdothat make it a prot center?

A properly designed and implemedistribution solution will save you labor, proyou with a space windfall and ultimincrease your customer base as you perform your competition. Order fulllmshipping accuracy and delivery schedare the key factors to successful distriband to keeping your customers coming

to you. Getting the right product to the customers on time is the key. WMS isrst and best bang for the buck.

Steve Hunyar is the EVP of E.D.G. EnterprHe has over 20 years of experience inwarehousing and distribution industriescan be reached at [email protected].

Distribution

Technologies for

the Beauty Supply

ndustry

As a growing beauty supply distributor,

at what point do you begin investing in

distribution technologies? How much

do you invest? How do you validate

he appropriate solutions against your

eturn-on-investment (ROI)? Is RFID

on your horizon as your customers

become more sophisticated? These

are a few of the questions that plague

many business owners and corporate

executives trying to get a handle ondistribution costs.

From our experience, a beauty supply

distributor with annual revenues of

$15M - $20M with a growth rate of

over 5% per year should automate

ts distribution. It is also normal to

make a one-time investment of 2 -

3% of one year of annual revenues to

accomplish this objective.

n the vast majority of cases, the

rst step should be to invest in a

Warehouse Management System

WMS). Regardless of the storage

medium used in your warehouse,

control is the critical element. As your

distribution execution changes over

me and you add or change storage

equipment in your distribution center,

he WMS should be exible in design

and must adjust to your new layout

with relative ease.

www.probeauty.org


7/12

A Letter from the Leadership

As the newly elected president of theManufacturer Leadership Council, I amxcited about the opportunities we have to

make the Professional Beauty Association atrong and unied voice for the professionaleauty industry.

Mergers and acquisitions have certainlyltered the structure of the landscape as

we have known it as our industry continueso experience the effects of consolidation.

However, change, although generally met withpprehension, can also bring positive and

much needed benets and energy.

hrough this time of change, it is importanto maintain a unied voice that preserves thenterest of the industry. PBA can be that voiceor us, but we need the input and support ofhe members of the manufacturer section.

he unied voice of PBA was heard at thisears Cosmoprof North America (CPNA)vent. The show continues to grow and isuickly becoming a premier event for our

ndustry. For all those that cant decide toublicly support the show or for those whoublicly criticize it, I would like to share myosition. The professional beauty industryeeds a buyer-to-buyer event, and CPNA is it.

We get so caught up in day-to-day routines,ut how often do we have the opportunity to

meet with our business partners and reviewhe strategic directions of our business? It

will not happen by sitting in your ofce, but

y getting to a location that has been putogether to foster the needs of our industry.

PBAs team deserves many compliments forheir efforts on producing a successful showhat gives us as manufacturers an opportunityo network and conduct business.

So what else can be done? PBA is amembership-driven organization, so getnvolved! Support the association by payingour dues and getting the word out to theompanies that are not yet members that theyan help in creating a unied voice for our

ndustry. Most importantly, make sure you are

ommunicating your issues to your leadershipouncil. Feel free to call or email me with any

ssues or concerns you have.

Lee Rizzuto Jr.Conair CorporationPresident, ManufacturerLeadership Council203-351-9175 | [email protected]

Manufacturer Section

In February, President Bush approveda new anti-counterfeiting law, the StopCounterfeiting in Manufactured Goods Act(H.R. 32). This law blocks loopholes inthe current law and increases the criminalpenalties for counterfeiting. The new lawmakes it illegal for someone to make or

sell counterfeit labels or packages. Sellingcounterfeit goods has been unlawful for along time. A gaping loophole allowed sellersof the labels (imprinted with the phonymarks) to escape criminal liability, however just because the labels had not yet beenafxed to the fake products. That loopholehas now been closed.

This new law is another step in thegovernments efforts to protect trademarkowners and legitimate products. As PresidentBush commented when he signed the newlaw: Counterfeiting hurts businesses. Theylose the right to prot from their innovation.Counterfeiting hurts workers, becausecounterfeiting undercuts honest competition,rewards illegal competitors. Counterfeitinghurts consumers as fake products expose ourpeople to serious health and safety risks.

Besides closing the loophole to exposemakers of fake labels to criminal liability, thenew act also strengthens the criminal penaltiesthat can be imposed on counterfeiters. Thenew law directs courts to order destructionof the counterfeit products. Courts can alsorequire convicted counterfeiters to turn over

their prots and the equipment, and to payrestitution to the legitimate businesses.That means that the counterfeiters can beordered to reimburse the businesses for thelosses the legitimate businesses suffereddue to the fake products.

Counterfeiting continues to be a severeproblemno surprise to companies inthe professional beauty business. TheU.S. Customs estimates that trafcking incounterfeit goods costs the United Statesabout $200-$250 million each year. TheU.S. loses millions of dollars in tax revenues

from counterfeit goods, and counterfeititems manufactured overseas cost Americanworkers tens of thousands of jobs.

Another government anti-counterfeitingprogram is the Strategy TargetingOrganization Piracy program. This is aneffort coordinated by several federal agenciestrying to improve the protection for intellectualproperty trademarks, copyrights andpatents. As part of this program, Customshas increased its efforts to stop fakes at theUnited States borders; the Department of

Commerce is encouraging companieregister their trademarks to increase puband enforcement; and the Federal TCommission continues to be on the loofor false or fraudulent representation

helpful website at www.stopfakes.gov more information about this program.

Trademark owners and legitimate businehave responsibilities in the anti-counterfewars as well. The rst step should bbusinesses to register their key trademThe new law reinforces the wisdomregistering trademarks -- although unregistrademarks are sometimes counterfethe new law gives favored treatmentrademarks that have been registered witU.S. Patent and Trademark Ofce. Anway for businesses to improve their vigil

against fake products is to make surecontract provisions specify the authodistribution channels: who you buy fromwho can sell your products. Those measwill guard against fake goods being minwith the legitimate merchandise. We asoldiers in this battle to keep our marketpclean of counterfeited goods!

Deborah M. Lodge is a partner at PaBoggs LLP, a Washington, DC law rm w

reputation for working closely with Congand regulatory agencies. Lodge speciain intel lectual property and Internet law.

represents a broad range of clients, incluelectronic publishers, retailers,

associations, software developers, and onew technology pioneers. You can rLodge directly at dlodge@pattonboggsor 202-457-6030.

U.S. to Counterfeiters: Stop It!


8/12

Cosmoprof North America

Makes Strong ShowingThe annual event has truly evolved into a

major global event. Beauty Store Business

If you own a beauty store or distributionusiness and you have not attended

Cosmoprof, it is costing you a barrel of moneyn lost sales.

Beauty Industry Report

Cosmoprof North America is the single most importantorum for beauty companies in or entering the Northmerican market. Held July 16-18 in Las Vegas,

he event brought 675 exhibiting companies andmore than 25,000 attendees including importers,

istributors and global beauty leaders under oneoof to showcase the latest cutting-edge cosmetics,

wellness, spa, hair care, skin care, nails, productevelopment and packaging products from everyorner of the globe. This years highlights include:

International Buyer Program. This Cosmoprofexclusive unites buyers and sellers around the worldwith the resources, contacts and data to build abusiness. Delegations from Australia, Benin, Brazil,Burkina Faso, Canada, Chile, Ghana, Ivory Coast,Jamaica, Mauritania, Mexico and the United Stateshad a unique opportunity to participate in thisprogram and present the needs of their individualmarkets. Another benet of the program is thatany attendee can sign up to be matched up withcompanies that they would like to do business with

and receive a pre-scheduled, private meeting.

[CPNA] brought together exhibitors andinternational buyers and distributorstherewas an especially strong showing amonginternational exhibitors, with 25 percent ofexhibitors coming from abroad.

Womens Wear Daily

First-Class Education. Setting itself apart as an

educational forum where companies can grow theirsales and knowledge at the same time, this yearsshow offered more than fty classes. Educationhighlights included the Wellness Summit KeynoteSpeaker Dr. Joe Dispenza, recently featured

in the movie What the Bleep do We Know?!;nationally known marketing expert Larry Gulkoon 7 Powerful Strategies to Break Through theMarketing Clutter and Drive Brand Preference;Karen Post, the Branding Diva and Fast Companycolumnist on how beauty professionals can masterbrand building; and PBA Business Forum KeynoteAndrew Razeghi on how leaders control outcomesin moments of uncertainty.

the powerof beauty

The Tonight Show

Visits Cosmoprof

North America

NBC Televisions The Tonight Show

Jay Leno sent comedian/correspon

Alonzo Bodden (from season two of

Comic Standing) to make the round

the Cosmoprof North America 2006 s

Bodden explored the cutting edge of bea

biggest technological advances for him

by spraying on a tan, receiving a strip

wax and experiencing an LED relax

capsule. View the clip for yourself at w

cosmoprofnorthamerica.com/tonightsho

New

Publications

from the Nail

Manufacturers

Council

he International Nail Technicians AssociationNTA) and the PBA Nail Manufacturers CouncilNMC) have launched a co-branded educationrogram for nail salons, technicians and

onsumers nationwide. Three publications areurrently available on PBAs website:

Facts about Salon Nail

Polish Products for ConsumersDownload: www.probeauty.org/nmc

s nail polish safe? Are nail technicianswho use nail polish safe? This pamphlet

rovides useful answers to commonuestions about nail polish products. Weope that it opens a positive dialogue withour employees and customers.

Pedicure Equipment

Cleaning & Disinfecting Procedures

Download: www.probeauty.org/nmc

Improper cleaning of pedicure equipment maylead to health safety concerns for salon clients,intense regulatory investigation and a severethreat to a salons protability. Salon teams areencouraged to incorporate these proceduresinto their regular cleaning schedules and todisplay the procedures in employee areas.

NMC Update: Methyl Methacrylate

(MMA) Liquid MonomersDownload: www.probeauty.org/nmc

This important update recommends that nailprofessionals everywhere avoid the use ofMMA-containing articial nail enhancementmonomers. This update explains the dangersof MMA and how to recognize products thatcontain the substance. (Because MMA isprohibited, you are unlikely to nd it on theingredient label.)

For more information, please contact NMCChair Eric Schwartz at [email protected].

Attend.Mark your calendar for Cosmoprof America 2007, which will take place July 12007 at the Mandalay Bay Convention CenLas Vegas. Hotel and travel reservations February 2007. Registration opens in M

2007. For more information, visitwww.cosmoprofnorthamerica.com.

The buzz was all about the many products across numerous categories debuted at the show or will soon ship.

Beauty Store Bus

Exhibit.Dont miss the opportunity to showcasnew products at the most important beauty busshow in North America. Exhibit and sponsosales are up and running. Conrm your booth s

now! Visit www.cosmoprofnorthamerica.codownload and complete a Request for Spaccontact Eric Horn or Ebony King at 800-468(480-281-0424) or email [email protected]@probeauty.org.

CosmoprofNorth Americ

THE BUSINESOF BEAUTY

Las Vegas - Mandalay B

July 15 - 17, 2007

www.probeauty.org


9/12

Salon/Spa Section

Pack your bags and your team for

the festive River Walk in San Antonio!

Symposium 11 is just around the corner

and promises to be the most memorable

event yet.

You spoke, we listened Weve made

Symposium more affordable than ever.

From now until the end of November,

buy two tickets to Symposium and get a

third free. Or treat yourself like an all-star

for the weekend with the MVP package,

which includes a Tuesday training camp,

special check-in, front row seating and

an owners box stocked with snacks

and refreshments.

Your Symposium Committee has focused

on TSAs love of networking and the

request for presentations designed for

our team members. The lineup is jam-

packed with team-building sessions,

front-desk programs and round-table

discussions. Theres something for

everyoneowners, managers and staff!

Our Dream Team fast-re panel led by

Melissa Yamaguchi includes industry

luminaries Dennis Ratner, Gene Juarez,

Eric Fisher, Eveline Charles and more.

Beacon is back and growing! Our

Beacon students are energetic, eager

and passionate about our industry. We

are providing opportunities for you to get

to meet these bright stars at the Career

Center and in networking sessions. Bring

your salon and spa marketing materials

to draft them for your team.

It will be Super Bowl season, so enjoy

Symposiums theme: Get in the Game.

Bring your team and be an MVP! For more

information, log on to www.probeauty.

org/symposium.

TSA member and salon-ow

superstar Gene Juarez introduce

to Lou Tice, chairman of the Pa

Institute. An inspiring speaker,

will address TSA Symposium 1

January 2007 with his keynote,

Your Head in the Game. Here

sneak preview

You Must See

It in Order to Be It

Did you know that you can try onfuture, just like you try on a new dresuit of clothes? Did you know that wrehearse the future with our thoughts?

When architects make drawings building, they are helping people imaexactly what that building will look The more precise their drawings, the completely they can see the buildinfact, Freud compared thinking to a mgeneral, moving miniature gures ovmap before sending troops into action

This is exactly what you do when youvisualization and imagery to project youinto a future situation. You say to youNow how do I want this to turn out?then you very carefully, very thorouimagine yourself behaving in ways thamost likely to bring about that end-reWith visualization, you place yourselffuture situations and your imaginprovides you with a virtual reality ofuture you want.

The more anxious you are aboutsituation and the greater your fears, the important it is that you control the kirehearsing you do. If you dont take chof your thoughts, you may be imagthe worst possible consequences. Yoliterally programming your subconscand you will behave according topicture that is dominant in your mind.

You see, by controlling your thoughyour vision of what you want you co

your future. Make sure you focus onimagine what you want, and not you dont want. And remember, the rehearsing you do, the smoother theperformance will be.

Lou Tice is chairman of the Pacic Institute

over 35 years, The Pacic Institute has t

individuals and organizations how to machange, set and achieve g

lead more effectively, and thways that create success. Yo

reach Lou at 800-426-3660.

Symposium 11TSA

January 20-23, 2007San Antonio Marriott Rivercenter

getin thegame

Letter from the Leadership

A members have more opportunities than

er to become involved PBA members! The

dership team is actively pursuing activities

get more members involved and educated.

A is proud to introduce salon track classeshin PBAs Center for Business Education.

ese classes are held in an intimate setting,

h no more than 25 people per class. Topics

e focused on the needs of TSA members

d their staffs. The facilitators are fellow TSA

embers who have strong skills in the topic

ea. Classes will be offered in Fall 2006 and

ring 2007, and topics will change with the

eds of our members!

e rst CBE salon track class will be hosted

the PBA headquarters in Scottsdale,zona from October 15-16, 2006. Join

eline Charles, TSA Leadership Council

ember, and her management team for our

t class, Learn to Build a Salon Empire.

u can register for the class by contacting

elissa in the PBA ofce at 800-468-2274

28. Learn more on page 3.

ere also excited about our increasing

vernment affairs activity. With the recent

ng of Sam Leyvas, Director of Government

airs, were on track to further the advocacy

orts of TSA. Please take a few moments

read through Sams advocacy update in

s newsletter on page 2, and contact him

you would like to become involved in our

vernment Affairs program.

ally, the Symposium committee has

t on their game face to put together a

ectacular program for Symposium 11.

th a theme of Get in the Game, the

mmittee has a full gameplan for a great

perience. Make plans now to join us in

n Antonio, January 20-23, 2007!

Cole Cumberlander

ire et Blanc

e President, TSA Leadership Council

6-991-9992 | [email protected]


10/12

Owning Up toBeing the Owner

My journey in ownership has brought me to an exciting but uncomfortable placea pof accountabilityfor me. I used to pat myself on the back for completing a ten-houof beautiful hair plus a burrito and payroll done at the same time during my hour lun

If I were to do that now, I realize that Id be doing myself, my staff, my clients andbusiness damage. I can still have the burrito and the hour break, but there are opeople who can do the payroll, and do the hair, and do the 10 hour days. My role is tmy benchmarksas an owner. And, comfortable or not, they are all very measurabl

So what are these benchmarks? Below is a list of the things that I believe we, as owneed to be accountable for. The good news is, if there are things on the list that we or are no good at, we can hire them done. However we can NEVER ignore them othem on the back burner for when we get time.

PERSONAL SPIRIT.This is the most important:

our health, your family, your hobbies. If youont love it, you can not empower others to

ove it.

Life Balance. Work should not be your life.In order to sustain your passion, dont work

over 50 hours a week or 4 months in a rowwithout a break.

Healthy Living. A good portion of your freetime needs to be dedicated to taking care ofyourself. That means lots of sleep, exercise,and regular check-ups.

Inspired Enthusiasm. What new ideas areyou bringing to your team? Take a class.Learn something new. Look outside theindustry for inspiration.

BOTTOM LINE PROFITABILITY. This is the

wner report card. You cant avoid this untilhe end of the quarter. It will be too late!

Weekly Focus on Results. You should belooking at and strategizing your revenue,retail and service per ticket, and multipleunit sales weekly.

Relentless Budgeting. Likewise, yourbudget is your control for expenses, and itshould be taped up right in front of your facefor daily accountability.

Intense Forecasting. At least an hour a

week should be spent forecasting the futureby looking at the past. Remember Octoberlast year? How are you going to x it thisyear if you wait until it arrives?

HEALTHY BALANCE SHEET. If you ever wanto sell it or borrow against it, this better lookood.

Debt Free Operations. Put it on your cardfor air miles, but pay it off in full monthly.

Cash Flow Positive. I can show a prot buthave no cash. Cash ow is what sustains abusiness. If you dont understand cash ow,pay someone a couple hundred dollars orgive them a gift card to teach it to you.

Saving for Lean Months. You will learn at

your cash ow lesson when and how to savebased on the ebb and ow of your business.Pay yourself rst!

CONSISTENT GROWTH. If you dont grow,you will wilt and die on your feet standing ina pile of hair.

Solid Marketing Plan. You should beworking on your marketing plan at leastsix months forward in the future. Budget atleast 2% of revenue.

Lots of Innovation. Clients and staff leave

because they get bored. You need to be theidea generator to keep people inspired.

Aggressive Recruiting. Everyone leaveseventually. If you wait until they do, its too late.

HIGH CLIENT RETENTION. If your salon

is a revolving door, it is your problem andcosting you much more than coming off theoor. I promise.

Staff Connects and Accountability. Itssimple. Your job is to make sure they dotheirs. Its not personal; its business.

Consistent Service Experiences. Clientsneed to have their expectations exceededevery visit.

High Retail Sales. Its a fact: The morethey buy, the more invested they are in yourbusiness and the more often they return.

HIGH STAFF RETENTION. If it is a revolving

door it is your problem and costing you muchmore than coming off the oor. Sorry, same asabove.

Juicy Morale. Create a culture freparanoia where people feel as if they a voice and make a difference.

Inspiring Education Program. It tseveral days a month to put togeth

program that keeps people at all linspired. The senior stylists need a hlevel of inspiration.

Attractive Benets Programs. Animportant focus to stay competitiveneed to think outside of the box on you can economically offer to be uniqu

Remember, your job is to do only the ththat no one else in your business canDont just work there. Own it.

Inez Gray is the dedicated visibehind Habitude, one of Sepremier salons/day spas.

personal mission statement is to joyfully inothers. You can reach Inez at inez@habitudeOr you can nd her insightsand those of

successful salon ownerson the TSA listserv

subscribe, email [email protected].

www.probeauty.org


11/12

Health Insurance Increases

mprove but Remain

Burdensome for Many

s hard to imagine a time when we wouldelieve less of more could be a good thing.

Yet, when it comes to health insuranceremium increases, that is precisely whatives employers a big sigh of relief. Annualate increases continue to shrink below the

0 percent gure, and employers are nowonsidering what opportunities they have toontrol expenses even more effectively.

According to the Watson Wyatt 11th annualNational Business Group on Health, the

est-performing companies are achieving apercent median cost increase from 2004 to

005 and from 2005 to 2006. When comparedo an annual 11.5 percent increase fromnderperforming peers, the gap is surprisinglylogical. Bottom line, you can ask yourself:

ow do I get there?

or 2007, employers are looking more closelyt how they purchase coverage and what toolsmployees need to help themselves moreffectively procure healthcare. Both of thesevents will directly reduce the burden of health

nsurance rates.

DRIVING THE RIGHT VEHICLE?

or the vast majority of employers, insuranceompanies provide three different services.

irst, they have negotiated rates with healthcarerofessionals, hospitals and pharmaceutical

manufactures to obtain wholesale pricing.Second, for most employers, they are insuringll or a signicant portion of your risk. Finally,he insurance company answers employeeuestions, processes claims and determinesenet eligibility.

Premiums, the rate that employers payo provide healthcare coverage to theirmployees, are generally 86% claim related.hink about that 86 cents of each and everyealthcare dollar is tied to the payment ofervices including doctors ofce visits, labests, hospitalizations and prescriptions.

Best-performing companies show a greaterwillingness to survey their employees

tilization patterns and consider which vehiclerovides the most cost effective wholesalericing solution.

Cleveland, Ohio is a perfect example of suchmarketplace. Dened by two (2) competing

ospital systems, Cleveland insurers payifferent rates to each provider. While bothealthcare systems may be a preferredrovider, one is clearly more cost efcient.

Unfortunately, in the short term, the efciency

of a healthcare system and the rate for servicescovered by your insurance company dontalways equal the lowest rate on your renewalspreadsheet.

Considering that 86% of your healthcareexpense is tied to the vehicles ability to securethe best cost of services on your behalf,doesnt it pay to determine which healthcarevehicle would provide your staff with the mostcost efcient solution?

The market is predictable: over the long-term, the insurance provider with the mostcost effective model for securing services onbehalf of your company will deliver the mostaggressive pricing.

WHAT TOOLS DO MY

EMPLOYEES NEED?

Just three years ago, industry experts believedthat the Health Savings Account (HSA) couldinspire real consumerism. The theory was thatthe only tool employees needed was to be in

charge of their own healthcare account andhave a backup information system to supporttheir decision processes.

Today, experts and employers agree thathealthcare tools are equivalent to employeeengagement ideas. Engaging the employeeand their dependents transcends the type ofplan you offer, be it a Health Savings Account,High Deductible Health Plan or a traditionaldeductible and copay PPO.

Best of class employers use leadingedge plans designed to achieve three key

objectives: increase employee awareness oftheir healthcare coverage and cost, promotea more appropriate use of services andperhaps most important: create incentives foremployees to improve their health and lifestyle.Meeting these objectives can only be done ifwe provide employees with the right tools.

First, increasing employee awareness ofhealthcare coverage and cost requires a fulltime benet communications strategy. Goneare the days where employers simply sendout the annual open-enrollment memorandumexplaining how much more coverage will

cost. Todays best performing employers areincreasingly using monthly benet newsletters,promotional wellness programs and year endbenet value statements to communicate toemployees the true worth of their coverage.

Second, employers use promotionopportunities as a forum for consumereducation. The message is simple: receivecare when necessary avoid abuse and overutilization. One example involves a recentnational healthcare journal that documentednearly 4 out of 5 emergency room visits as

unnecessary and far from life-threatening

To address the issue, leading edge emplopromote responsible utilization by embraa three pronged strategy to: (a) make 24-ask-a-nurse services available, (b) eduemployees as to appropriate seve

requiring emergency room care, andimplementation of signicant penaltiesnon-emergency use of the emergency ro

Regardless of the application, the rem

is consistently to make alternate resouavailable, educate for appropriatenessthen penalize non-compliance.

Third, employers are nding new and creways to help members help themseClinical studies show that lifestyle can ima populations claim utilization by up to Employers are embracing benet initiathat incent smoking cessation, appropbody mass index, physical tness and bpressure/cholesterol management. By coverage levels to a participants quality oemployers are beginning to improve partic

wellness and reduce healthcare expense.

SUMMARY

While increases less than 10% may apto be breath of fresh air for employers,increases remain an incredible burdenemployees and employers. The daychanging carriers annually or even bi-annmay be coming to an end. Employers wforced to begin thinking longer-term, aligtheir coverage with the insurance pro(vehicle) that can deliver the best long services procurement.

Participant education in the areas of quality, utilization acceptability and helifestyle will continue to redene the marefforts to move toward consumerism.

Whether you purchase direct from the mor through a broker or consultant, expecyour representative will be able to assiswith the assessment of carrier viabilitydevelopment of a strategy and experate of return from consumerism objecEmployers who push their consultant indirection will be better positioned to co

expenses and enhance employee outcoand benet satisfaction in the future.

Kyle M. Anthony is Vice President of Be& Company. Founded in 1918, Behnke

leading risk management consulting rm

specialization in property and casualty, camanagement and employee benets. You

email Kyle at [email protected]


12/12

Professional Beauty Association

5825 North 71st Street, Suite 100

Scottsdale, Arizona 85254

00.468.2274 (480.281.0424)

SSE takes place February 5-7, 2007 in Long

Beach, California. The biggest beauty shown the West Coast, ISSE is produced by the

Professional Beauty Association. Revenuerom the show supports associationducation, government affairs and other

ndustry initiatives.

he new International Fashion Theater wille packed with inspiring performancesy some of the industrys most talentedlatform stylists and manufacturers, hailing

rom the U.S. and abroad. ISSE also hostsabulous complimentary education, a Bridalheater showcasing the latest in up-dos

nd elegant styles, nail competitions and ahow floor filled with quality manufacturershowcasing the latest products.

Take advantage

of PBA member benets at ISSE!

Member Benet for Attendees

PBA members are entitled to twocomplimentary tickets to ISSE. Call 800-468-2274 (480-281-0424) to request your tickets.

Member Benets for Exhibitors

PBA members who exhibit at ISSE receive:1) $50 off the price of a 10x10 booth; 2)300lbs. free drayage; 3) preferred boothplacement; 4) 40-60% off sponsorships andadvertising; and 5) a free bold listing withPBA logo in the on-site show directory. For

more information on exhibiting at ISSE, or tobecome a sponsor, please contact NathanMiner at 800-468-2274 (480-281-0424) x124or email [email protected].

B e n e f i t H i g h l i g h t

Valuable education.Quality manufacturers.

Professional atmosphere.The ISSE commitment.

NAHA Haircolor Finalist Karen Melayor more details, please visit www.isse-shows.org.

roduced by PBA

Documents

PBA Progress Fall06 Newsletter