pba progress summer06 newsletter

8/14/2019 PBA Progress Summer06 Newsletter

1/12

ProgressAn Update for Members of the Professional Beauty Association

Summer 200

Inside this Issue

Letter from

the Executive Director 2

PBA Branding Campaign 2

Government Affairs Update 3

DC Hill Visits 3

Gift Cards & Certicates 4

Welcome to Our World 4

NAHA Finalists 4

Distributor Section 5

Restrictive Covenants 6

Manufacturer Section 7

ABBIES Winners 7

Cosmoprof North America 8

TSA Section 9

Symposium 11 9

TSA Survey 9

Tips for Salon Retailing 10

Member Prole: Jim Markham 11

Benet Highlight: Legal Ease 12

Las Vegas | July 16-18, 2006 | Mandalay Bay

We raise standards and expectations.

Weve got your back in Washington, DC.

We offer business education to make you better.

We introduce you to other industry leaders.

We host events to build your business.

We celebrate the industry.

We connect you to business solutions.

We tell the world why professional is best.

Were here for you.

Success by association

Event Spotlight

www.cosmopro fno r thamer ica.com

PBA_summer06_nwslttr 5/22/06, 1:38 PM1


2/12

PBA Progress(Summer 2006)

is a publication of

the Professional Beauty Association.

www.probeautyassociation.org

2

From the Leadership

What Does PBA Do?

I hear the question as I walk the oor at tradeshows, talk with industry leaders and reachout to past members. Its such a simplequestion, but it has a powerful focus. Whatdoes PBA do? Over the last year, PBAsvolunteer leadership has been rening

the response to that question. The simpleanswer is the core purpose that came outof the strategic plan process: PBA advancesthe professional beauty industry.

Of course, the strategic plan helped us dig muchdeeper into how exactly we work to advancethe industry. The leadership wrote six goalsoutcome-oriented statements that focus theorganizations efforts. This year, we are focusingprimarily on the rst two goals. (You can nd alist of all six goalsand the full strategic planat www.oneroof.org/strategicplan.)

Member Value. Members of the Professional

Beauty Association will enjoy the competitive advantage of access to an unparalleled

portfolio of products, services and benets.

Each membership section is seeking toincrease member value. Activities include theCenter for Business Education, an expansionof the manufacturer Market Shipment Study,additional business blueprints that memberscan easily reference and implement, a distributor

business-benchmark research project,an expansion of networking through

the section listserves and more.

Government Affairs. Public policy makers will

recognize the importance of the professional

beauty industry and association members will

benet from successful advocacy on issues

signicant to the industry.

Members tell us this is one of the mostimportant functions they expect the associationto perform. And it has fantastic potential forgrowth. The leadership has responded in theshort term by creating a full-time Government Affairs Director position at the associationsofce in Arizona. In the longer term, theleadership has committed to a physical ofcepresence in Washington, DC.

Heres another way that I might answer thatsimple question, What does PBA do?PBA does what its membership requests.With volunteer leadership straight from themembership base, PBA is guided by what

matters to our members. That doesnt justmean board membersthat means you!Call or email me. Or contact your leadershipcouncils president (phone numbers andemail addresses are included with their lettersfurther in this newsletter). Help us make thisthe association you need.

Steve Sleeper

Executive Director, PBA800-468-2274 [email protected]

Professional Beauty Association

15825 North 71st Street, Suite 100Scottsdale, Arizona 85254

800-468-2274 (480-281-0424)Fax: 480-905-0708


[email protected]

The Professional Beauty Association (PBA) is

a non-prot trade association that represents

the interests of the professional beauty industry

from manufacturers and distributors to salons

and spas. PBA serves the industry with

education, government advocacy, commerce

opportunities, research/statistics and public

relations/image building.

PBA is taking its message

to the industry with a

new branding campaign.

Based on feedback from

our membership, were

highlighting three strengths

of the association: business

resources, peer networking

and government affairs.

Discover what membership in the

Professional Beauty Association can do for

your business.

Be a part of the most powerful network in

the professional beauty industry.

Get yourvoice heard in the industry, on

Capitol Hill and beyond.

If you have a friend in the industry thatwould benefit from being a PBA member,

reach out to them! If you have a client

list that should receive membership

information, let us know! To request a stack

of recruitment brochures complete with

membership applications, call Member

Services at 800-468-2274 (480-281-0424)

or email [email protected].

PBA. Success by association.



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PBA Government AffairsAdvocating for Our Industry

Government affairs is a critical growth areafor PBA. Past surveys indicate that this isa priority for membership. And it is an areawhere the association can have a tremendousinuence on the environment in which we

do business. In response, PBAs leadershipmade government affairs a top priority amongthe six stated goal areas in the associationsstrategic plan.

What does it mean to make government affairsa priority? PBAs government affairs activitiesshould serve several purposes:

Capitol Hill Watchdog. PBA will serve asa watchdog, keeping tabs on legislative andregulatory issues that could impact businessesin the professional beauty industry.

Legislative Advocate. PBA will sponsor

and support legislation that will strengthenour industry. (For example, TSA is currentlypushing tip-tax legislation in the Houseand Senate.) The association will alsooppose legislation that could harm memberbusinesses.

Information Source. PBA will alert membersto issues, legislation or court rulings thatinuence our business environment.

Power in Numbers. When businesses jointogether in an association, they are morepowerful advocates at the local, state andnational level. PBA will help members speak

their mind to legislators and policymakers.(For example, TSA members successfullychallenged changes to the Small Business Administrations denition of a smallbusiness.)

How do we get there? The associationsleadership has authorized the followingexpenditures:

Government Affairs Director. PBA willcreate this position at the associations Arizonaheadquarters. This director-level positionwill serve as a resource for membership,a contact for legislators and their staffs, aconduit for consultants and a liaison withother organizations. This position will alsobe responsible for tracking issues that couldimpact the professional beauty industry.

Expanded Budget for Committee. PBAis allotting more funding to the governmentaffairs committee budget to help support newprojects proposed by the Government AffairsDirector and committee members.

Future DC Presence. In the longer term,the associations leadership has signaled theirintention to fund a permanent Washington,DC presence for the association. Any DChires would come under the direction of the

Government Affairs Director in Arizona.

The money is allocated. The leadership ismotivated. The hiring process has begun.This is a very exciting time for PBA. Dontwait to get involved! Contact GovernmentAffairs Co-Chairs Frank Zona (781-871-4545| [email protected]) or Serena Chreky(202-293-9393 | [email protected])to volunteer for the committee or offer yourhelp in other ways.

Because PBAs leadership is madeup of active and engaged membervolunteers, the association is extremely

responsive to concerns and issues thatmatter to our membership, explainsSteve Sleeper, Executive Director PBA.These council members serve not onlyas representatives of their membershipsections but as the thinkers andpacemakers of our industry as a whole.

To get in touch with members of theGoverning Council or your sectionsLeadership Council, please contact MemberServices at 800-468-2274 (480-281-0424)or email [email protected].

Strategic PlanGoal Statement

Government Affairs

Public policy makers will recognize the

importance of the professional beauty

industry and association members will

benet from successful advocacy on

issues signicant to the industry.

DC Hill VisitsWednesday & ThursdayMay 17-18, 2006

PBA/TSA members hit Capitol Hill in May drum up support for the associations tip-t

relief legislationthe Small Business TEqualization & Compliance Act (H.R. 13and S. 327). This legislation would benet tindustry by freeing up over $600 million!

The legislation has two practical outcomeFirst, it will create a tax credit for employers offset the matching FICA paid on employetipsjust like restaurants received. This credwill add approximately 1% to the bottom liof salons and spas with employees. Secondwill help ensure the IRSs enforcement effowill be aimed at those who do not pay taxenot those who do. The legislation protects tmany independent contractors and employe

who do pay their taxes by focusing the IRS othe real source of the problemthose who not report any income at all.

The legislations success depends members like you driving the issue. Saloindustry professionals from around tcountry have written letters, made calls anvisited congressional ofces at home and Washington to ask their representatives support this legislation. The result has besupport from Democrats and Republicans both the House and the Senate. Help us kethe positive momentum going!

Get Involved!

1. We invite you to write letters and macalls urging your Senators and Representatito co-sponsor our legislation. Please cPBA/TSA at 800-468-2274 (480-281-042and let us know you want to help. We cprovide sample letters and talking points the legislation.

2. You dont have to be with us in DC to haa meeting with your political representativeContact your Senators and yoRepresentative for a meeting the next tim

they are back home. Ask for the scheduand put your request in writing. Let theknow you want to discuss co-sponsorshfor H.R. 1345 and S. 327. You can nd namand contact information for your Senators aRepresentative at www.congressmerge.com



4/12


Escheatment: Gift

Certicates and Gift Cards

Gift cards and gift certicates are morepopular than ever in the marketplace, andsalons and spas are no exception. Accordingto a recent TSA survey, 98 percent of salonsand spas offer gift cards or gift certicates.

However, as state governments look for waysto bridge their budget gaps, many statesare turning to unused gift certicates as anadditional source of revenue. This process isknown as escheatment, a statute that allowsthe government in many states to identifyunused gift certicates as abandoned orunclaimed property, which then becomes theproperty of the state after a certain period oftime. While the laws are different in every state,currently about half of all states specicallyinclude gift certicates in abandoned propertyand escheatment laws, meaning businessesthat issued these unused gift certicates mustwrite out a check to the state government.

Like most business owners, PBA/TSA believes

this process is unfair. Many salon and spaowners rely on repeat business and customerloyalty and would likely accept a gift certicateeven if it had expired. In their minds, these giftcerticates are never abandoned property.

Some state legislatures agree with TSA andhave passed legislation that would excludegift cards and gift certicates from abandonedproperty statutes. However, several otherstates are still holding out. In the monthsahead, TSA will continue to monitor thesituation and work with state lawmakers tooppose or repeal harmful escheatment laws.

Bruce Grindy is an economist and governmentaffairs consultant to PBA. He also works closely

with the National Restaurant Association.He received a masters degree in economicsfrom the University of North Dakota and abachelors degree from Concordia College inMoorhead, Minnesota.

Welcome to Our World

Thursday, May 18, 2006

Each year, PBA and other members of theProfessional Beauty Federation invite CapitolHill to share an evening with importantmembers of the small business community

salon owners and licensed professionals. At Welcome to Our World, the salonindustry makes over Congress. And as theCongressional representatives and their staffsexperience haircuts, manicures and massages,

PBA members take the time to explain tissues that are critical to their success as smbusiness owners: including passage of H2100 (anti-tampering legislation), the potentof a Tip/Tax Credit, the labor shortage anthe Department of Educations negative bitoward cosmetology education.

This annual event brings a $60-billion industto Capitol Hill in just one night, explaiEric Schwartz, president of the Profession

Beauty Federation. Our message is that tentire industry stands united in asking fsupport of these important issues.

Welcome to Our World is a constituenbased event and is approved by the EthiCommittee. The event is produced by tProfessional Beauty Federation (PBF). PBpromotes and improves the professional saloindustry as it relates to government laws aregulations. Founding members include:

The North American Hairstyling Awards (NAHA)

promises to be another exciting event this July! Themost talented and innovative hairstylists from allacross North America will be honored at the NAHAceremony Sunday, July 19 at the Mandalay BayConvention Center in Las Vegas.

The rst-round of judging has just been wrapped upand we are pleased to announce the nalists:

Master Hairstylist of the Year

Heather Wenman | Entrenous | London, ONEric Fisher | Eric Fisher Salon | Witchita, KSDusty Simington | Salon Gregories | NewportBeach, CAJames Morrison | Toni & Guy | Newport Beach, CAScott Cole | Colorcutting USA | Carefree, AZ

Hairstylist of the Year

Maureen Anlauf | Juut SalonSpa | St. Paul, MNLorraine Wilkins | Enviro Trends | St. Thomas, ONAnna Pacitto | Salon Pure | Montreal, QBZak Mascolo | TIGI Academy | New York, NYNick Staley | Salon Gregories | Newport Beach, CA

Salon Team of the Year

Hair After Salon & Spa | Willowdale, ONEnviro Trends | St. Thomas, ONMood by Pure | Montreal, QBSalon Gregories | Costa Mesa, CAInPure | Montreal, QB

Editorial Stylist of the Year

John Donato | Mississauga, ONLaurentius Purnama | Philadelphia, PAMichael Baker | Springeld, LAVeronica Bessey | Carrollton, TXMichael Albor | Dorchester, MA

Student Hairstylist of the Year

Devin Graciano | Citrus College | Upland, CAElle Gomez | Arangio Internazionale | Mexico CityKirby Keomysay | Capitol School | Omaha, NEJohn Paul Colombo | Hair After | Willowdale, ONNikki Coletti | Lunatic Fringe/Academy JakeThompson | Salt Lake City, UT

Avant Garde

Michael Della Penna | Michael Della Pennas Hair |St. Petersburg, FLWendy Bond | Oscar Bond Salon | New York, NY

Nicholas French | Matrix Academy | West Hampton, NYDaniel Holzberger | Van Michael Salons | Smyrna, GAJake Thompson | Lunatic Fringe | Salt Lake City, UT

Contemporary Classic

Liza Espinoza-Achurra | Zano Salons | Bolingbrook, ILDusty Simington | Salon Gregories | NewportBeach, CAJackie Elliott | Vault Salon & Spa | Winnipeg, MBHeath Grout | Toni & Guy | Newport Beach, CASuzanne Martin | Three Small Rooms | Barrie, ON

Haircolor

Dorissa Cerven | Le Coupe Sauvage | St. Thomas, ORene Antonio | Salon Gregories | Newport Beach, CWendy Bond | Oscar Bond Salon | New York, NYKaren Melay | Hair Factory | St. Johns, NLAdriana Balea | JC Salons | Toronto, ON

Long Hair Dressing

Sonna Brado | Jaazz Salons | Toronto, ONCurtis Jermonti | Rolfs in Scottsdale | Scottsdale, A

John Graham | Vault Salon & Spa | Winnipeg, MBFrank Cini | Taz Hair Co. | Toronto, ONAnn Bray | The Masters | Huntsville, AL

Makeover

Carol Cini | Taz Hair Co. | Toronto, ONNakia Spriggs | Concepts | Upper Marlboro, MDLorraine Wilkins | Enviro Trends | St. Thomas, ONErin Fernandes | Entrenous | London, ONFabio Sementilli | Salon Shampoo | Woodbridge, O

Texture

Jackie Elliott | Vault Salon & Spas | Winnipeg, MBRobert Barker | Toni & Guy | Alpharetta, GAZoe Cohen & Jeremy Taylor | Salon Gregories |Newport Beach, CAKaren Melay | Hair Factory | St. Johns, NL

Christopher Vargas | Toni & Guy | Richardson, TX

Make-Up Artist of the Year

Cheryl Gushue | Toronto, ONNoah | Costa Mesa, CAAngelia Senevisai | St. Paul, MNMaria Bikos | Entrenous | London, ONGiancarlo Intini | Aurora, ON

To see the nalists images, please visit www.hairslingawards.com.

Honor i ng Top Ha i rs ty l i ng



5/12

Distributor Section

PBA Launches the Center for

Business Education

Top Gun Sales

Manager Training, therst seminar fromPBAs new Center for

Business Education,intrigued both attendees and speakers

alike. The small, informal round-table formatprovided a comfortable environment fordistribution professionals to share insightson their experiences within the industry. Manyattendees particularly enjoyed the networkingopportunities and the chance to gain ideasfrom passionate people who experiencesimilar workplace challenges.

The seminar presenters were Bart Kooiman(Consulting Manager, Peels Salon Services);

Eric M. West (VP Sales and Marketing,Columbia Beauty Supply); Tom Conley (GSM,Marshall Salon Services) and Phil Douglas(VP Field Sales, Columbia Beauty Supply).

I learned more than I taught, says Tom

Conley.The interaction and sharing of

information was wonderful.

Creative Store Boot

Camp. This full-blownstore leadershiptraining programwas designed tohelp distributor professionals build andmaintain successful stores. The basic trainingincluded merchandising skills; marketing andcommunication techniques; advice on new

consultant training; strategies for groomingloyal employees; and techniques for masteringcustomer service. The open forum and round-table format encourage the sharing of ideasfrom all participants.

Here is just some of the feedback fromattendees:

- The information was awesome!

- Everything that we wanted to cover w

addressed.

- The presenters were very prepared, tons

knowledge.

- Good information from people direc

involved in store operations.

The seminar presenters were Renee Shako(President, R.G. Shakour, Inc.), Erika PeBarnes (Director of Stores, Peels SalServices) and Martha Woodruff (Director Stores, Salon Concepts).

Launched in 2006, the Center for BusineEducation (CBE) provides ongoin

executive-level education for beauty industprofessionals. The two introductory classeTop Gun Sales Manager Training anStore Leadership Boot Camp, focus PBAs distributor members. CBE educationprograms are unlike any othertaught successful peers with in-the-eld experienand focused on our industrys issues.

Stay tuned for additional CBE offerings. call 800-468-2274 (480-281-0424).

A Letter from the Leadership

All three leadership councils worked togetherclosely to shape the recently completedstrategic plan for PBA. The distributor councilhas also been focused on short- and long-term plans for our section in particular. Hereare our top three goals for the next two years:

Improve communication. We will addressdistributor-specic issues in this section ofPBAs quarterly newsletter. In addition, we willuse email and fax blasts to alert distributormembers to pressing, distributor-only issues.If you have ideas for articles you would like tosee in the future, please email or call me. Or ifyou have insights or expertise that you wouldbe willing to share in the form of an article forthis newsletter, please let me know.

Foster peer education and networking.The success of the Center for BusinessEducations rst seminar, Top Gun SalesManager Training, shows the incrediblebenets of peers sharing solutions with eachother. (See article below.) We are eager toexpand these educational opportunities andhave plans for a Million Dollar Sales Trainingfor your top producers. In addition, thedistributor listserve is beginning to take off.If you have a question about best businesspractices, share it with the email listserve. Ithink that youll be amazed at the generosityof responses from peer members.

Provide benchmark research. Our third goalis to create a member survey chock full ofvaluable distributor business benchmarks.

This will allow you to compare your percentacosts and policies to distributors of the samsize. Stay tuned for your surveyand be suto ll it out! Youll only get the results if yparticipate.

As president of the Distributor LeadersCouncil, I want to invite you to call or mail anytime. We want to design the bedistributor association to support and groyour business.

Bob Peel Jr.

President, PBA DistributorLeadership Council800-362-2084 [email protected]

center for business educatio



6/12

Protecting your

Business from

Departing Employees

Tips on Restrictive Covenants

Nick and Jessica. Jen and Brad. J-Lo and Ben.

While tabloid headlines about these rocked

relationships can be viewed as meaningless

Hollywood gossip, they do conrm that if

anything in this life is certain, its that even

the most picture-perfect relationships can

go sour. Employers should take notice. When

hiring a new employee, many employers do not

think much about the newly hired employees

inevitable departure and the consequences

that may follow. This article discusses some

preventative steps your business can take to

protect itself and its condential information.

The Need

for Restrictive Covenants Absent an agreement containing restrictive

covenants, the legal restrictions on an

employees ability to take business and

information after leaving employment are

minimal. Thus, restrictive covenants in

employment agreements are an important

tool in protecting the customers, clients and

competitive information of client businesses

from being taken by a departing employee.

Non-competition covenants can prohibit

the employee from performing competitive

activities during employment and in a

specic geographic area of limited duration

after employment. A covenant against

competition is intended to protect the

employers investment in the employee and

restrain competition by former employees.Such a provision can restrain the employee

from providing competitive products or

services to a client, regardless of who

initiates the discussion.

Non-solicitation covenants can restrict

employees from soliciting business from

clients or prospective clients with whom

they had contact after termination of their

employment. A covenant not to solicit

customers is designed to protect the

employers customer relationships and is

intended to limit the employees ability to

afrmatively solicit the employers clients in

an effort to provide competitive services.

Non-solicitation of employees

covenants restrict the employee from

recruiting employees of the employer

after termination of employment. In

various jurisdictions, covenants against

solicitation of employees have historically

been scrutinized less strictly than non-

competition covenants and non-solicitation

covenants.

Non-disclosure covenants can prohibit

the use of condential information for any

purpose other than the advancement of

your business. Condential information

is generally information related to your

business which does not constitute a trade

secret, but which you have a legitimate

business need to protect. The types of

information typically covered by these

agreements include client contacts,

preferences and pricing. Non-disclosureagreements must also be reasonable in

duration to be enforceable. Provisions

requiring the return of company property

and information upon termination of

employment are essential to ensure that no

tangible information is taken. Companies

can also implement policies that prohibit

the misuse of company computers and

information systems and the unauthorized

deletion of data.

Choosing the Right CovenantIf the employer provides specialized training

or imparts knowledge of highly competitive,technical or sensitive information to the

employee, the employer may be most

concerned with limiting competition by

the employee. Thus, a covenant against

competition may be more benecial to the

employer. However, if the employee is primarily

involved in sales, or another position where he

does not receive such special information,

the employer may be most interested

in preserving the business relationships

with its customers. In this instance, a

covenant not to solicit may be sufcient.

Why not use both a covenant against

competition and covenant not to solicit?While there are many instances in which doing

so make sense, using both is not always

necessary or advisable. Courts will enforce

restrictive covenants as long as they are

reasonable, meaning that they are no greater

than is required for the protection of the

employer, do not impose undue hardship on the

employee and are not injurious to the public. In

some states, if any portion of the covenant is

found to be unreasonable, the entire covenant

may be thrown out and declared void. Further,

despite their fundamental differences, some

courts look at covenants against competition

and solicitation as one. That is, even if the

two different covenants are incorporated into

two different provisions in the employment

agreement, if one covenant is declared

unenforceable, the other will automatically

fail, even if the other is not unreasonable.

What Should Be Included

in an Employment Agreement?The employment agreement should clearly

identify the role the employee will play for the

employer. If the company has many differe

types of positions, the employment agreeme

should specically describe the position t

employee is being hired for and if, during t

term of employment, the employees positi

changes, a new employment agreeme

should be prepared to reect the change

Both covenants against competition a

solicitation require some variant of a territor

restriction. The employee must be able ascertain, at the time he signs the agreemen

what restrictions will be placed upon h

when he departs. Once it is determined whe

the employee will work, the employer can th

evaluate what restrictions are reasonab

Does the employee work in one locatio

If so, perhaps restricting post-employme

competition or solicitation using a radi

from a specied, xed location, might

appropriate. If the employee travels a

visits many different locations, then a region

limitation, i.e. the states of Georgia, Sou

Carolina and Florida, may be appropriate.

the employee switches to another ofce,

acquires (or loses) certain territories, a neemployment agreement should be execut

that adjusts the restrictions to accurate

reect where the employee truly work

Otherwise, the employer risks having t

original covenants declared unenforceab

One benet of a covenant not to solicit is tha

in some circumstances, a specic territory

not required. If the restriction on solicitation

limited to those clients with whom the employ

had contact, and developed a busine

relationship, a territorial restriction is n

required. That said, the covenant not to soli

should be limited to those clients the employ

has a current or recent relationship wi

Conclusion A new business relationship, like a person

relationship, should be fostered by trust a

optimism. Even so, an employer would

wise to put into employment agreemen

certain covenants to protect itself in the eve

the relationship ends. By carefully drafti

and implementing provisions that adequate

protect its legitimate business interes

an employer can go a long way to prote

its customer base, resources and valuab

condential information. When employe

know that they are bound by enforceab

provisions, they are less likely to challen

them or risk a lawsuit.

Berman Fink Van Horn PC is a law fr

specializing in complex business transaction

The frm is located in Atlanta, Georgia.

Disclaimer: This article is not a substitute fo

legal advice from a qualied attorney license

in your state and familiar with your business




7/12

Industry Marketing

Excellence Honored

Recognizing innovation, creativity and overall

excellence in marketing for the professional

beauty industry, PBA honored its members at

the 10th annual ABBIES on February 4, 2006

at the Terrace Theater in Long Beach, CA.

Here are this years outstanding winners:

Hair Care

Best Product Packaging

Pureology Serious Color Care NanoworksRestorative Hair Treatment

Best Print Advertisement in Industry

Publication

Ecru New York Ecru New York 3-Page Ad

Silk Texturizing Balm

Best Merchandising Display

IV Cosmeceuticals IV Cosmeceuticals

Dispensary Stand

Skin Care


DermaNew Inc. Sensitive Skin Care

Collection


PublicationDermalogica Dermalogica Awareness

Campaign


DermaNew Inc. DermaNew Prestige Retail

Display

Nail Care


Entity Beauty Entity Nail Couture Sculpting

Products

Nail Care continued


Publication

Creative Nail Design Raw Earth

SpaPedicure Campaign


OPI Products Inc. Brights by OPI

Equipment & Tools


Fromm International Fromm Edge Ahead

Shears


PublicationArtizen Artizen Digital Iron with Surround

Heating


The Cricket Company LLC Cricket Store

Brush Baskets

Distributors

Best Distributor In-Salon Education Program

Raylon Corporation C.A.M.P. Creating

Achievement through Mastering

Professional

Best Distributor Catalog

DePasquale Salon Systems DePasquale

Salon Systems Magazine

Salons & Spas

Best Salon/Spa Corporate Image

Dermalogica Dermalogica on Montana

Best Salon/Spa Retail Promotion

Salon Utopia Teen Beauty Camp

Publications

Best Publication Design

Vance Publishing Renew Magazine

All Entrants

Best Industry Website

Creative Nail Design

www.creativenaildesign.com

Best Professional Public

Relations Campaign

Creative Nail Design

Nails in Fashion & Entertainment

Best Print Advertisement

in a Consumer Publication

OPI Products Inc. Brights by OPI

Best Sales Promotion

BaBylissPRO BaBylissPRO Breast CanceAwareness Program

ABBIES ICON Awards

PBA also honored three industry luminaries

with the ABBIES Icon Award:

Distribution

Michael Renzulli

Chairman, Sally Beauty Company

Salons/Spas

David Wagner

Owner, Juut Salonspa

Manufacturing

Paula Kent Meehan

Founder, Redken Laboratories an

Founder, Global Salon Business

Awards/B.E.S.T. Foundation

Learn more about ABBIES and see nalist

entries past and present at www.abbies.or

Manufacturer Section

A Ietter from the leadership

As your Manufacturer Leadership Council

nears completion of its rst half of 2006

activities, we are excited with our progress

to date. Throughout the last part of 2005 and

earlier this year, your council was actively

engaged in shaping the strategic direction

of the Professional Beauty Association (PBA)

with particular emphasis placed on the needs

and issues that we as manufacturers face

every day.

One of the themes that has become very

clear to me over the course of this important

process is that as diverse as our manufacturer

community is, our issues are far more similar

than they are different. This overriding thread

of commonality is a perfect scenario for the

likes of a trade association such as the PBA

a place where its members can get involved,

share their collective voice and work for

proactive change on behalf of its members.

But in order for your council to continue to do

a thorough job of ensuring that PBA is actively

working on the most relevant issues on behalf

of the manufacturing community, we need you

help with three very important items:

1.We need you to be engaged and

follow what the PBA is doing.

2.We need to hear from you aboutthe issues that you feel are important.

3.We need you to spread the word about

membership and encourage our colleagues

to join the PBA!

These are three simple but critical tasks that

can have an enormous impact on the future

direction and success of PBA. Three simple

things that each of us as members of the

association have an obligation to fulll. Three

simple things that, periodically, should only

take a few minutes of our time to complete.

In the hustle and bustle of our day-to-d

work, its easy to push anything PBA-relate

to the bottom of the to do list as a get to i

I can item in lieu of more important concern

But, in the end, what we are effectively doin

is pushing to the bottom of the list the issu

that we all need and want the collecti

industry to address, via the PBA.

All of the PBA council members have investe

countless hours in our progress to date a

will continue to make the same commitme

throughout the course of their terms. Play yo

part as a member and invest your minut

often and wisely!

Heres to Three Simple Things!

John Heffner

President,

MLC and Chair, GC



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the powerof beauty

PBA is gearing up for Cosmoprof NorthAmerica 2006 held July 16-18 at the MandalayBay Convention Center in Las Vegas. CPNAprovides a high-quality business-to-businessexperience for the global beauty industry. Insuch a disjointed marketplace, CosmoprofNorth America provides a great opportunityto do a years worth of business in just threedays. The entire beauty community will be

present, from manufacturers and distributorsto importers and exporters, to salon and spaowners and more.

Last year, over 25,000 attendees viewedover 700 companies in the course of 177,000square feet of exhibit space. CPNA 2006outlook shows a promising increase inattendance and exhibitors.

As usual, CPNA will feature four pavilionsdesigned to meet the exclusive needs ofvarious segments of the industry: Pavilion A Cosmetics and Personal Care; Pavilion B Packaging, Contract Manufacturing and Private

Label; Pavilion C Wellness and Spa; andPavilion D Professional Hair, Nail and Tools.

Highlights for

Cosmoprof North America 2006:

Private meeting rooms. Private meetingrooms will be available for your convenience-a quiet, private place for you to get down tobusiness and interact on a more personalbasis with potential and existing clients. Forinformation on booking a private room, pleasecontact Eric Horn at 800.468.2274 x114, oremail [email protected]

PBA Annual Business Forum. The forumexplores trends that are shaping the industryand how the association isresponding. In particular,youll discover how PBA isprotecting your interestsin Washington, DC. In theforums nale, inuential

business advisor Andrew Razeghi, authof Hope: How Triumphant Leaders Creathe Future, addresses how great leadecan introduce new ideas and expand thbusinesses. The forum is complimentafor PBA members. Non-members pay $2Includes coffee service.

Sponsorships. Its not too late to crea

a buzz and attract more attention to yobooth! Sponsorships, directory ads asignage opportunities are available. Fmore information, please contact Eric Hoat 800.468.2274 x114, or email [email protected]. You may also speak wEbony King at 800.468.2274 x145, [email protected].

After-Party. In celebration of the Nor American Hairstyling Awards (NAHA) Sunday July 19, Cosmoprof and NAHattendees are invited to boogie the night awat Studio 54 (located in the MGM Grandbeginning at 10pm.

8

Cosmetics & Personal Car

Packaging, Contract Manufacturing & Private Lab

Wellness & Sp

Professional Hair, Nail & Too

Eric Z Horn, CMP

Show Director - CPNAAfter 10 years of working along side the PBstaff as Senior Director of Events, Eric Hohas been promoted to Cosmoprof Nor Americas Show Director. Eric Horn, alowith the newly appointed Ebony King, CPNCoordinator, now has full responsibility fall sales of exhibit space, sponsorships aadvertisements, as well as management the trade show and budget maintenancEric also acts as the main contact betweethe Professional Beauty Association aNorth American Beauty Events, the legpartnership that runs Cosmoprof Nor America. NABE is an equal partners

between PBA, SoGeCos and Bologna Fiethe European companies that produce othCosmoprof events around the globe.

Cosmoprof North America 2006 Preview




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Letter from TSAs Leadership

In March TSAs Leadership Council met inChicago for our rst full meeting of 2006. Themeeting included a very exciting Government Affairs update with Serena Chreky, VP ofCommunications. PBA and TSA have plans to

unleash a full time Government Affairs positionin the PBA Scottsdale ofce and a counterpartofce in DC! This is a huge and bold move forour association. We shall pass our bill yet!

John Galietti, VP of Education, led a veryinformative, honest and creative discussionon Symposium. He recapped what workedand what didnt work so well at Symposium2006. And he opened up dialogue forSymposium 2007. In addition to what Johns2007 committee is already working on, thecouncil gave him excellent feedback andsupport. What he heard loud and clear was,lets stop talking about going back to basics

and simply do it! It looks like Symposium2007 will be full of real business solutionsand exciting industry icons. Have any ideas?Contact John at [email protected].

The council dug into the associationsstrategic plan and hashed out what webelieve is important to our members. Oneproject slated to start this year is the launchof intimate, topic specic workshops at theScottsdale ofce. The workshops will onlyaccommodate up to 20 participates. Otherprojects include jump starting the Beaconcommittee and developing an industry DVDto be used to promote our association, ourindustry and our salons/spas. Anything soundinteresting? Contact Laura Hubbard: [email protected]. She would love tohelp you get involved.

Associations are funny things as the salonand spa leg of the industry, we have little orno experience working together under thisumbrella. To some degree, it will always bea work in progressadjustments, stumbles,victories and celebrations weaved in allalong the way. Frustrating, exciting andrewarding all at the same time! So how doyou benefit? One way is to get involved,have a voice and work on specific projects.The other way is just by being a member

you benefit because our whole industrybenefits. Thats one of the simple andelegant truths about a trade association.

Sasha RashPresident,TSA Leadership [email protected]

Symposium 11:

Get in the Game!

January 20-23, 2007

San Antonio Marriott

Rivercenter

San Antonio, Texas

Mark your calendars for TSA Symposium 11!We have an active committee of TSA membersplanning a strong education program for 2007.After this years 10 th anniversary Ten Big Ideasprogram, Symposium 11 brings membersback to basics with business-buildingbreakouts, engaging industry speakers, plenty

of time for networking and a fun-lled nale.Kick off 2007 with insights and inspirationto take your business to new heights!

Remember, theres more to San Antoniothan the Alamo! Symposium takes placein the midst of the vibrant River Walk,a cobblestoned path bordering the San Antonio River as it winds its way througha lively district of European-style sidewalkcafes, specialty boutiques and nightclubs.Expand your Symposium visit into afamily vacation with stops at San AntonioSea World and Six Flags Fiesta Texas.Or keep it grown-ups only with golf, spa

treatments and two-stepping honkytonks.

TSA Honors Outstanding Members

During Symposium each year, TSA honorsoutstanding members who have madea difference throughout the year. TSAsleadership council nominates, and TSAmembers select the winners. Please join us incongratulating this years winners!

Spirit of TSA: Charles Riser

Government Affairs: Nesbit Hatch

Charitable Outreach: Lisa Cochran

Manufacturer of the Year: Bumble & bumble

Distributor of the Year: DePasquale

Legislator of the Year: Rep. J.D. Hayworth (AZ)

If you would like to suggest a nomineefor 2007, please call Member Servicesat 800-468-2274 (480-281-0424) oremail [email protected].

TSA Section TSA 10th Anniversary Surve

A new three-part report presents the resuof TSAs 10th Anniversary Survey. Thnation-wide membership survey presena fascinating portrait of the size, scope aeconomic impact of member salons aspas. Here are a few highlights:

Price of a Hair Color

$90 or more 18$70-89 22$60-69 23$50-59 17less than $50 20

Price of a Pedicure

$50 or more 24$45-49 25$40-44 24$35-39 21less than $35 6

Price of a Facial$90 or more 12$75-89 27$65-74 33$50-64 21less than $50 7

Compensation Programs Used

Commission & Salary Combination 46Commission Only 38Salary Only 14Commission &Booth Rental Combination 2

Retail Square Footage

800 or more square feet (sq.f.) 13600-799 sq. f. 15400-599 sq. f. 18300-399 sq. f. 13200-299 sq. f. 13100-199 sq. f. 15less than 100 sq. f. 13

Legal Agreements in Use

Training/Education Agreement 53Condentiality Agreement 44

Noncompetition Agreement 35

The report is provided complimentato TSA members. Manufacturer adistributor members may purchase tsurvey results for $250. Please contaMember Services at 800-468-2274 (48281-0424) or email [email protected] to order your copy.



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1. Retail several different productbrand lines. Know what each brandstands for and how it differentiatesitself. Each brand must have adifferent reason for being in the salon.Inventory cost is too expensive for

another me-too brand.2. Independent salons can beat chain

salons at the retail game. Stylists andfront desk coordinators should alwaysbe educating clients with productknowledge. Your salon staff becomesa valuable resource to the client andgives your salon the advantage.

3. Build distributor and manufactureralliances. Start with your sales repbut include their senior management,education and business developmentmanagers. Develop a teamrelationship to grow your business.Plan how your salon can build theirbusiness and they will want to helpyou growa win-win situation.

4. Turn off-shelf display space intonumbers. Use your secondarydisplay space to highlight seasonalor new products. Make it attractivebut not so much that the clients dontwant to disturb the perfectly placedproducts. Change the off-shelfdisplay products every six to eightweeks to coincide with your clientsvisits insuring that what they see isalways fresh.

5. Increase retail product sales with

special programs. For a majorprogram, put all products from onebrand on sale. You want the selectionbroad enough to draw client attentionby presenting a variety of products.Remember, youre trying to stimulateimpulse purchases. The sale priceshould be at least 30% off for clientimpact. For a mid-size program,consider a multiple-purchase event,i.e. Buy the Shampoo, Get the

Conditioner for 50% Off! Clientsavings perception is strong becauseof the 50% discount. The salonsnancial reduction is actually 25%since two products are soldashampoo and a conditioner.

6. Distributor % off promotions to buy or not to buy? Buy in ontop selling products. Top sellingproducts will sell through in a shortperiod of time and be worth the

extra purchase. Dont over spendon ancillary products. They dontturn quickly enough to warrant theadditional expenditure.

7. Keep an eye on your retail inventory. Analyze your monthly sell-throughevery quarter. Decide how manyweeks of inventory you want to keep.You may consider three weeks ofinventory since it provides a cushionif sales increase in a particular week.Adjust the order below trigger gureto match your sell-through and desiredweeks of inventory. For example, ifyour goal is three weeks of inventoryon a product and the product sells 6

pieces every 4 weeks, that yields 1.5pieces per week. You should keepeither four or ve pieces of product onthe shelf (1.5 x 3 = 4.5).

8. Top selling retail products are thepriority. Know your top 10 to 15products by brand. Always keepthem in stock. Consider increasingthese to four weeks of inventory ifweekly sales continually uctuate.

9. Keep up with the trends. To keep uon emerging trends in hairstyles an

seasonal looks, talk to your stylists anread the beauty and trade magazineMake sure the salon has that retproduct to meet that trend or get thstyle. Dont forget that trends changso dont overstock your shelves. Bcautiously optimistic.

10.If you carry multiple brand lineshare of shelf equals brand shaof volume. Calculate the percentagof space each brand has in thsalon. For example, Brand A haslinear feet and total retail space is 4linear feet. So Brand A is taking u10% of the total retail space. Thecalculate the percentage of sale

volume each brand sells in the saloFor example, Brand As annual retvolume is $5,000 and total volume all retail products is $100,000. BranA has a 5% brand share of volumBrand A is over-spaced based oits volume contribution. Considreducing its space by eliminatinnon-performing products of multipsizes (8.5 oz. and 16 oz) of the samproduct. Give the extra space to thbrands that have a larger share volume to its share of shelf.

TSA member Ed Simon is the owner Mystique Hair & Skin Salon in Princeto

New Jersey. A full-service salon with daspa services, Mystique sells Aveda, AlternRedken, Matrix and Nioxin products. Prito becoming a salon owner, Simon spe17 years in trade marketing and salmanagement positions at Revlon, LOreand Del Labs.

10 Tipsfor Salon Retailing



11/12

Jim MarkhamFounder and CEO, PureologyPBA Manufacturer Member

Jim Markham started out in the industry as achampionship barber and stylist to stars suchas Paul Newman and Johnny Carson. AfterJay Sebring was killed in the Manson murders,Markham took over Sebring Products. With apassion for innovative ingredients, Markhamwent on to found Markham Products andABBA Pure and Natural Haircare. In 1997, hesold ABBA and considered retirement. But hecouldnt resist the temptation to get back inthe game

1. How did Pureology come about?

We sold ABBA in 1997, and I wasnt sure thatId come back. Then at Cosmoprof, I sawthere was a color boom going on, but nobodywas doing anything in terms of maintenance.Stylists and colorists didnt have anything thatreally enhanced their color. So I went lookingfor new technology and was surprised to ndthere was a lot available. But it was expensive.

When you develop superior products withperformance you can notice after oneapplication, price is not the issue. Its all aboutvalue, about performance. At Pureology, we

really focus on R&D and product performance.Packaging sells it once. Performance sells ittwice. Weve really created something unique,started a whole new category. We are themarket leader in the color care category.

2. You are known for innovative

products. What makes your business

innovative as well?

The biggest point of difference is productperformance. Im a non-degree chemistand a member of the Society of CosmeticChemists. I understand the idiosyncrasiesof product development. I work directly withthe fragrance houses. I love to talk to the topingredient manufacturers. Its fun for me. I loveto build a better mousetrap.

Others come up with the product idea andpackaging and then just put a recipe in. We dothe opposite. We develop the product rst. If itdoesnt pass the performance test, it doesntget to fragrancing and beyond. You might workon a product for 6 months and nd that youcant make it any better than anyone elsewhich means there is no reason to bring it out.

And we are one of best managed companiesin the business. I have a tremendous team.Pay better people better money and youllget better results. No other company is asefcient. We are never back ordered. We getour stuff out on time. Back orders kill mostcompanies quicker than anything. Thats theunforgivable sin, to have any back orders.

3. How does your status as a privately

held company inuence the way you do

business?

It appears to me to be very limiting for thesebig companies to try to compete with us.People ask me, how do you compete withthe bigger companies? My question is, howdo they compete with me? Were faster, havebetter innovation, spend money on productperformance, can turn on a dime and spend ahuge amount on sampling. We can be nimbleand fast and respond to needs immediatelywithout a lot of accountability.

4. Whats next for Pureology?

We have seven new products this year.The last one was Nanoworks, which was aphenomenal success, the most successfulproduct Ive ever come out with and thehighest price. Were launching three to fourproducts by July or August and a couplemore for year end. It truly is a whats-newbusiness. You have to provide somethingthats new, and it has to be superior. Andwere going international mid-year or maybea little sooner. We have seven distributorstrying to get trademarks completed andget products registered from the packagingpoint of view. Were heading into the EU,Russia, Brazil, Costa Rica, Honduras,

Guatamela and beyond.

5. At a time when the manufacturer-

distributor relationship can seem quite

strained, Pureology has strong relations

with its distributor partners.

We work with distributors and were going tostay with distributors. It is the only way Iveever done it and the only way Ill ever do it.We see a need for distributors to assist salonsto help them grow their businesses. If a lot ofcompanies go direct, it undermines the stylistsand colorists. They get worse service andworse education than ever before. Every time Isee a company go direct, they immediately go

into backorder, they move, they re everyonethat made them successful. Going direct tome is silly. Penny wise and dollar foolish.

6. You acquired Alterna in April

2005. Tell us about what youve

accomplished so far.

We have eliminated all back orders, gottenrid of dead inventory and made niceimprovements in products that needed it.Were coming out with new products and

re-launching stuff that was really successfin past but that somehow got put asidWe have started an ad program and a Pprogram. The company was protable for trst time ever last year. And it looks greatwe see nothing but upside for it. But the rerocket ship right now is Pureology.

7. How do you see the prestige/luxurysegment of the professional beauty

industry growing?

The luxury category is booming. There is nlet up for quality-rst products. How do ythink BMW is going to continue to growTheyre the most protable, and they squality luxury products. To learn about temerging luxury consumer, I recommenthe book Trading Up. It tells you about thconsumer and why they will pay more monfor quality and value. What we sell as stylismanufacturers and distributors is qualservice and quality products. A supermousetrap brings a superior price.8. What advice would you give small-

scale beauty manufacturers looking to

grow their businesses?

Identify your nichekeep it narrow afocused. With us, were only for color-treatehair and we appeal to high-end colorists asalon owners. A narrower focus offers widpotential. Others try to be all things to people. They focus on defensive marketias opposed to offensive marketing. Insteaidentify a specic niche and make sure yohave a superior product.

9. What impact would you like

to have on the industry?

My main intent, being a stylist originally, to really show stylists and colorists that thcan have a better product than is sold retaEverybody says that they want upgrade tindustrys image, but how do they do thaWe charge two to three times the price normal productsand that means that stylismake two to three times more money. Stylisare more successful with our products, whicenhances the quality of their life and enhanctheir image. Stylists and colorists have haaverage products for so many years. Thappreciate the quality of Pureology.

10. Why are you a member of the

Professional Beauty Association?I want to be more involved in impactinthe industry. There is an old sayingorder to get more, you have to give morWeve got a lot, weve been very fortunaand we want to give back as much possible. I think that PBA is doing tha As manufacturers, we have to participamore. I didnt do that as much when I wyounger, but now I have the opportunity anIm going to make the most of it.

Member

Prole



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Professional Beauty Association

15825 North 71st Street, Suite 100

Scottsdale, Arizona 85254

Legal Ease

Are your managers entitled to overtimecompensation? What kinds of job actions canget your company sued? Did you know that

employers can be held liable for customerharassment? Can you really enforce thatnon-compete agreement? Are you aware ofa recent federal court decision that mightchange the way you hire?

What if you could get answers to all ofthese questions and more for less than $9a month? PBA is proud to have a preferredprogram for PBA members to do just that!One of the countrys top employment lawrms, PBAs endorsed provider was onceagain honored as one of the most widelyrespected labor and employment law rms

by Chambers USA Guide to Americas BestBusiness Lawyers. With a practice exclusiveto labor and employment law on behalf ofmanagement, the focus is on managementrights and the actions that management cantake, rather than those they cant. Providingprompt, high-quality, creative legal servicesand solutions, their philosophy is that laborand employment counsel is a collaborativeprocess with their clients, designed to meettheir business objectives.

Once you pay the $100 fee to enroll, you canphone as often as necessary for guidance onwage and hour compliance, hiring and ring,employee benets and more. Thats less than$9 a month! For a separate fee, the rm alsoreviews handbooks and applications, defendsagainst discrimination charges and more.

Beacon:

The Next Generation

of Salon Professionals

Beacon was a true success! It was the mo

exciting event I have attended in my life, anit meant the world to me. Jon HendricksoBeacon student 2005

Do you know a promising future saloprofessional? Encourage them to take pain Beacon! The Beacon program helcosmetology students gain exposure to tbusiness side of salon work. The prograwhich brings outstanding students to TSASymposium in January, strives to inforenlighten and inspire the next generatioof salon professionals. It also provides TSmembers with a great opportunity to mepotential new hires.

To request a Beacon entry form or for moinformation on Beacon, please contact LauHubbard at 800-468-2274 x126 or [email protected].

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


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