PBA Progress Fall08 Newsletter

8/14/2019 PBA Progress Fall08 Newsletter

1/16

Fall 200

January 31 - February 2, 2009Long Beach Convent ion Cente r , CA

Event Spotlight

Inside this Issue

Letter romthe Leadership inside ront cover

Government Aairs 1

PBA CareerCenter 2

PBA Symposium 2

Rebuilding the Last Angle: Part II 3

Beauty and the Economy:

A National Profle

o the Salon Industry 4-7

Distributor/Store Section

Activity Based Costing 8

Distributor Benchmarking Survey 9

New! Beauty University 9

Manuacturer/Rep Section

Manuacturer Member

Profle: Circle o Friends 10

The 2008 Market Shipment Study 11

ISSE 2009: PBA Member Events 11

Salon/Spa Section

Cutting Edge Mentor Program 12

ISSE 2009: PBA Fast Fire Panel 13

Beneft Highlight: AonAfnity Insurance Services back

cover

ProgressAn Update or Members o the Proessional Beauty Associatio

PBA Studiesthe Industry

Distributor Benchmarking Survey Market Shipment Study...and announcing the launch of a new groundbreaking

industry study at PBA Symposium in Las Vegas.

Beauty and the Economy:A National Prole of the Salon Industry

photo courtesey of entrant Van Council for the Van Michael Salon.

PBA_fall08_nwslttr_singlepgs.ind1 1 11/20/08 10


2/16

YouBelong

As we enter the last ew weeks o 2008 and with all o the recent

economic turmoil, its almost a daily occurrence that I receive phone

calls rom members and the press looking or statistics and economic

data about the proessional beauty industry. Until recently, some o

the callers I could help, some I could not. However, that situation is

changing and changing rapidly.

PBA has always had great baseline inormation available. Research is

a cornerstone o what trade associations provide their members and

industry. This is why-as part o our ongoing mission to continually enhance

the value o your membership-our volunteer leadership has been hard at

work driving the organization to serve the needs o our members with

valuable, timely and relevant research and statistics.

Set to be released at the 2009 PBA Symposium-taking place July 18-

21 at Mandalay Bay Convention Center in Las Vegas-PBA has initiated a

landmark study o the salon and spa environment, covering everything rom

best practices in retail, global beauty trends, consumer experiences and

expectations, competitive beauty environments and best in class salons.

The study is groundbreaking in its depth and breadth o coverage, and we

are extremely excited to bring this caliber o inormation to our members.

Recently released on the research ront, the PBA Distributor Benchmarking

Survey provides a snapshot o critical operating and nancial inormation

that allows members to compare their own organization with those o

their peers (more on page 10). PBA has also just recently re-released

the latest version o our National Prole o the Salon Industry, updated

with the latest Department o Labor and US Census Bureau statistics.

This report contains detailed data about the size, makeup and economic

impact o our industry as viewed by the ederal government. For more on

this report, be sure to check out this issues cover story on page 5.

In addition to this research, our PBA Research Committee has been

working on enhancements to the PBA Haircare Market Shipment

Study. Administered by the national accounting irm o Deliotte, the

study is conducted bi-annually and provides precise measures o sales

activity at the manuacturer level. The hardworking committee is also

developing a similar study or the appliance sector o our industry. For

more inormation on this study, turn to page 12.

These new tools are all powerul reasons to remain a part o PBA. As

a PBA member with direct access to this research, your business has a

competitive advantage during this tough economic time. To learn more

about these valuable tools, read on in this issue o PBA Progress!

I encourage you to renew early to make sure you dont miss out on

any o these new tools and all o the other valuable beneits that PBA

has to oer. Visit probeauty.org to maximize your return on your dues

investment and thank you or your continued support!

A Letter from the Leadership

Renew Now &Win a Trip to Las Vegas

Renew your 2009 annual dues beore Decemb

15, 2008 and not only will your valuable memb

benets continue without interruption, you w

be entered in a drawing to win a trip to PBA

2009 annual meeting at Mandalay Bay in L

Vegas! The drawing winner will receive:

- Domestic airare

or 1 person

- 3 nights o hotelaccommodations

- 1 complimentarytuition to PBASymposium

- 1 complimentaryticket to NAHA 20

- 2 complimentary,

3-day badges toCosmoproNorth America

- 2 complimentarytickets to theCity o Hope Dinner

The lucky PBA member will be notied

January 2009. For more inormation or

contest rules, email [email protected].

SymposiumPBA

Steve SleeperPBA Executive DirectorScottsdale, AZ

probeauty.org



3/16

Government Affairs

Labor Unions,

and the Salon IndustryThe so-called Employee Free Choice Act,

also known as Card Check, is likely the

biggest legislative threat youve never

heard o. The nations labor unions are

aggressively pushing a ar-reaching and

radical agenda to, in its own words, take

back the economy. Headlining the agenda

is legislation to make it cheaper, aster and

easier to unionize Main Street businesses

and small retail establishments.

Under existing law, employees are allowed

to vote or union representation through

secret ballot elections. To begin organizing

workers, a union must solicit employee

signatures on union authorization cards.

Once the union has collected signatures

rom enough employeesa minimum o

30 percentthen the union can request

an election. I a majority o workers

expressing their choice in the privacy o

the voting boothsupport the union, then

the employer must begin bargaining with

the union. I most workers vote against

the union, then it does not represent themand must cease its organizing activities.

Unions win recognition in over 60 percent

o these elections.

Under the proposed Card Check

legislation, an employees right to vote

by secret ballot is eectively eliminated.

The law would require employers to

recognize a union without an election

once organizers collect signatures on

authorization cards rom a majority o

employees. Under the proposed law,

holding a secret ballot election once

unions collect cards rom a majority o

workers would become illegal. Critics

charge that without a secret balloting

process, workers are open to undue

pressure and coercion rom union

organizers.

Card Check would make it cheaper,

aster and easier to unionize Main

Street businesses, small service and

retail establishments and industries that

have never experienced unionization

beore including the proessional salon

industry. For example, in a businesswith 10 employees, union organizers

would need only 6 signatures to orce

the business to recognize and bargain

with the union. Employers may not even

realize they are being targeted.

A business owner can go home on Frid

thinking everything is OK and come ba

on Monday and nd out that the uni

had gotten employees to sign the ca

over the course o a weekend without t

employer having any idea that there w

an eort under way, said Sam Leyva

PBAs director o government aairs.

adds, Small businesses are particula

vulnerable because they may not ha

the legal resources needed to withsta

a unionizing campaign.

There is strong support or Card Che

legislation by some members o Congre

and President-elect Barack Obama. In a

the House o Representatives approv

the legislation in 2007. However, lab

unions were unable to get the legislati

through the Senate this year. Card Che

legislation is expected to be a priority the new administration in 2009.

To learn more about this issue, visit

probeauty.org/advocacy or contact

Sam Leyvas at 800.468.2274 x3437

or [email protected].

Card Check



4/16

Looking or that perect t? In December, the Proessional Beauty Association (PBA) will

launch its new, online job board, the PBA CareerCenter: your online resource or making

employment connections in the beauty industry.

Finding the right candidates or your open positions can be a time consuming and

rustrating process. With the launch o the PBA CareerCenter, employers will nally be

able to target their advertising to recruit the candidates theyre looking orand spend

less time doing it! As the industrys trade association, the Proessional Beauty Association

represents a niche talent pool o beauty proessionals. PBA members will also receive

one ree job posting annually and discounted member rates on additional listings!

For job seekers, the PBA CareerCenter is the ideal place to be seen by employers who are specically looking or

beauty industry proessionals. Job seekers can post their resumes (condentially, i they choose), search jobs, apply

online and set up search agents to provide automatic email notications whenever a posted job ts their criteria. They can even

save jobs and apply when they are ready. Plus, all job-seeker unctionality is ree!

Mark your calendar or the launch o the new PBA CareerCenter in December 2008! The PBA CareerCenter will

be located at probeauty.org/careers

PBA Symposium has evolved into a one-o-a-kind

educational event or the entire industry. Symposium provides three days o upp

level business education, unlimited networking and powerul research about t

contemporary beauty consumer. Salons and spas can expect the same high-qual

education that Symposium has always oered. Manuacturers, exhibitors a

distributors will beneft rom industry-specifc general sessions in the mornin

and gain access to the Cosmopro North America event throughout the day.

Look or more inormation on Symposium in the winter issue o the newsletter

Introducing the New

PBA CareerCenter

SymposiumPBABEAUTY IS MY BUSINES

Mandalay Bay Resortand Casino | Las Vegas

consumerculture

July 18-21, 2009

probeauty.org/symposium

Program based on groundbreakin

new industry study.

N E W F O R M A T !

probeauty.org

h e l d i n c o n j u n c t i o n w i t



5/16

In the Wakeo the Greensburg Tornado

Part II: Rebuilding the Last AngleBuilding a salon or spa rom the ground up takestime and eort. Rebuilding a salon torn down

by a tornado to the highest green standards in

the nation takes even more time.

In the spring 2008 issue o PBA Progress, we

learned about the plight o Debbie Bolyes,

owner o Last Angles, ater the Greensburg

tornado tore apart her salon. (For a reresher

on the disaster and how Bob Peel Jr. o Peels

Salon Services came to the rescue and oered

to cover the cost o rebuilding to eco-riendly

standards, visit probeauty.org/progress and

click on Spring 2008 under the archive.)

Working closely with Debbies husband, a

contractor, the rebuild has gotten past the planning

stage and moved on to construction. The salon

is still being rebuilt to Leadership in Energy and

Environmental Design (LEED) standards.

Today, Bob says, The rebuilding should be

completed by the irst quarter o 2009 and we

are still planning a makeover o every citizen in

the entire city or the kicko o the salon. Matrix

is helping out with the opening by giving out

ree haircare to every Greensburg resident.

PBA wishe

Debbie Bolye

and Peels Salo

Services th

best of luc

with the rebuild

Congratulations o

your progress



6/16

Looking at the EconomyThrough Beauty-Tinted Lenses:

The U.S. economy is currently in the midst o its most challenging period since the early 1990s.

The economy lost 760,000 jobs during the rst nine months o 2008, and national gross domestic

product likely contracted during the second hal o the year. Add in the turmoil in the global nancial

markets, and it is likely that an economic recovery will not gain a rm ooting until well into 2009.

PBAs 2008 National Proile o the Salon IndustryBy PBA Economist, Bruce Grindy

Recessions are nothing new or the country,

and indeed the national economy experienced

a downturn as recently as the beginning o this

decade. But the dierence between the current

economy and the last recession is that many

consumers in the early 2000s were able to tap into

the equity o their homes to bridge the gap during

the downturn. As a result, consumer spending

continued to grow, even though the overall

economy contracted. With alling home prices andthe diculty obtaining credit, that is simply not an

option or many consumers today.

The current perect storm o declining wealth,

elevated ood and energy prices and stagnant

wages have all combined to put consume

in a precarious position. Consumer spendin

plunged 3.1% in the third quarter on an infatio

adjusted annualized basisits rst decline sin

1991 and its largest drop since 1980.

During periods such as this, the economy

typically propped up by Main Street sectors

businesses that are the cornerstones o the

local communities. Businesses that providproducts and services like the local restauran

market or salon are essential to the day-to-da

lives o Americans.

The Proessional Beauty Associations ne

National Prole o the Salon Industry illustrat

how the American salon industry is an engin

o growth or Main Street, even during times economic uncertainty. This article takes a loo

at our components o the National Prole, an

puts them in the context o the current econom

environment.

During periods such as this,

the economy is typically

propped up by Main Street

sectorsbusinesses that

are the cornerstones

o their local communities.

probeauty.org



7/16

Beefng Up Main Street

The U.S. salon industry registered steady growth in recent years.Although much o the growth in salon establishments was

driven by substantial increases in the number o non-employer

establishments, there were also steady gains in the number

o employment-based salon locations. Between 2001 and

2006, the number o employment-based salon establishments

in the U.S. increased 10%, according to the Bureau o Labor

Statistics. During the same ve-year period, the number o

employment-based businesses in all industries also grew 10%,

which illustrates the consistent contribution to the economy o

employment-based salons.

As the number o employment-based salons continues to

grow, so too do the number o employment opportunities or

salon proessionals. In recent years, employment-based salons

consistently provided growing numbers o job opportunities

even when many other industries were in decline. The U.S.

employment-based salon industry is currently on pace in 2008

to register its 16th consecutive year o job growth. Mo

impressively, job growth in the salon industry outpaced toverall economy in eight o the last nine years, including 200

Even while the overall economy was losing jobs in both 20

and 2003, salon industry employment continued to grow.

The contribution o the salon industry to the overall econom

has been even more impressive during the current econom

downturn. In the 12 months ending September 2008, t

number o jobs at employment-based salons increased 1.5

During the same 12-month period, the total number o jobs

the overall economy declined 0.2%.

Although the salon industry isnt recession proo, it post

steady sales growth in recent years amidst all o the econom

volatility. In 2006, the most recent year or which sales gur

are available, the overall salon industry registered total sales

$37.5 billion up 86% rom a sales volume o $20.2 billion

Total Salon-Industry Sales, 1997 to 2006

Billions o Current Dollars

Source: U.S. Census BuYear

Beauty

Salonsand Spas

PercentChange

Nail

Salons

PercentChange

Barber

Shops

PercentChange

Total

Salon-Industry

PercentChange

1997 68,904 5,879 3,545 78,3281998 69,388 0.7% 6 ,615 12.5% 3,516 -0.8% 79,519 1.5%1999 69,285 -0.1 7,045 6.5 3,471 -1.3 79,800 0.42000 68,004 -1.8 7,023 -0.3 3,338 -3.8 78,364 -1.8

2001 67,544 -0.7 7,310 4.1 3,254 -2.5 78,108 -0.32002 68,261 1.1 7,988 9.3 3,270 0.5 79,520 1.8

2003 68,964 1.0 8,527 6.7 3,320 1.5 80,811 1.62004 69,911 1.4 9,137 7.2 3,347 0.8 82,394 2.02005 70,762 1.2 9,608 5.2 3,366 0.6 83,735 1.62006 71,949 1.7 10,319 7.4 3,399 1.0 85,667 2.3

Number o Employment-Based Salon-Industry

Establishments with Payroll Employees

Source: Bureau o Labor Statistics, U.S. Census Bureau



8/16

1997. Although non-employers represent a majority o salon

industry establishments, employment-based salons account or

55% o total salon industry sales.

The Value o Value

In todays economy, consumers are continually searching or value

in the product and services they buy. Sharp increases in price can

have a dramatic impact on consumer behavior, as was illustrated

by the unprecedented run-up in gas prices earlier this year.

In recent years, salons have consistently provided their

customers with value, even with their prices increasing at rates

similar to the overall infation rate. According to the Bureau o

Labor Statistics, the Consumer Price Index or Haircuts and

Other Personal Care Services increased at rates below 4% in

each o the last nine years. More recently, salon prices increased

at rates below the overall infation rate. In act, 2007 mark

the rst year since 2003 in which prices or haircuts and oth

personal care services outpaced the overall infation rate.

More recently, salons have provided outstanding value

their cash-strapped customers in todays economy. In the

months ending September 2008, prices or haircuts and oth

personal care services rose a relatively modest 3.2%, w

below the overall infation rate o 4.9% and signicantly le

than the 7.6% increase in grocery store prices and the 23.1

jump in energy prices.

An Industry o Diversity

A diverse workorce is one o the hallmarks o the sal

industry, providing employment and career opportuniti

or individuals o all backgrounds. According to data ro

the Bureau o Labor Statistics, the salon industry employs

higher proportion o Arican-Americans, Asians and wom

than the overall U.S. workorce.

Twelve percent o individuals in personal appearance occupatio

are Arican American, slightly above the national average o 11Fourteen percent o salon proessionals are Asian, compared

5% o the overall U.S. workorce.

Eighty-ve percent o individuals in personal appearan

occupations are women, nearly twice as much as the 46%

the overall U.S. workorce that is represented by women.

Cover Story - continued

probeauty.org

Annual Percent Change in Prices or Haircuts and Other Personal

Care Services Consumer Price Index: Haircuts and Other

Personal Care Services vs. Overall Infation Rate

Source: U.S. Department o Labor, Bureau o Labor Statistics



9/16

Further Inormation

Want more o the industry research revealed in this article? Visit

probeauty.org/resources and log in with your section password

to download the complete 2008 edition o the National Prole

o the Salon Industry. The prole is complimentary or all PBA

members and $149 or non-members. Make sure to check out

the many other research resources available to members on the

PBA website while youre there!

Part o being a trade association is gathering and reporting

critical data and inormation that cannot be obtained anywhere

else. PBAs mission as the trade association or all sections o

the proessional beauty industry is to provide our members with

relevant, timely and important inormation that will allow them

to better manage, benchmark and grow their businesses.

Did you know that PBA has an economist who collects vi

data on the industry? An independent economist based

Washington, DC, Bruce Grindy, is also the ocial economist

the Proessional Beauty Association. As PBAs economist, Bru

is responsible or compiling the data or many o PBAs resear

eorts including the National Prole o the Salon Industry, t

Distributor Benchmarking Survey, the Portrait o the U

Salon/Spa Industry by Congressional District and other valuab

member resources. Turn to page 10 to learn more about t

2008 Distributor Benchmarking Survey.

Breakdown o Employed Individuals by Gender, Race and Ethnicity

Personal Appearance Occupations versus Overall U.S. Workorce

Source: U.S. Department o Labor, Bureau o Labor Statistics; 2007 data

To see a complete listing o all PBA research

and industry benchmarking studies please

visit probeauty.org/resources:

Market Shipment Study

National Profle o the Salon Industry

Portrait o the U.S. Salon/Spa Industry

by Congressional District

Distributor Benchmarking Survey

Salon and Day Spa 2007Consumer Trend Report

Salon/Spa Sections 10th

Anniversary Survey Report

As a member, all complimentary resources are

available or download on the PBA website.

You will be required to enter your PBA

password (available on your member ID card).

P r o f e s s i o n a l B e a u t y A s s o c i a t i o n

p r o b e a u t y . o r g

ofthe SalonIndustry

NationalProfile

Nov2008



10/16

Distributor/Store Section

probeauty.org

I was recently delighted, but surprised, to

be booked to do a workshop at a all 2008,

distribution association convention on the

topic o Activity Based Costing (ABC).

ABC is a cost modeling methodology or

getting a better sense o the true prots rom

customers, services/products, suppliers

and other business decisions that was rst

productized in 1987. Back then, it got a lot

o this-will-revolutionize-business hype, but

the adoption rate has generally been slow

across all industries. Some industries banks,

casinos, large logistics rms are heavy users

but activity within independent distribution

channels is about 10% or less.

Although I have been personally involved

in some terric, distribution-company

turnarounds that were both guided and

energized by ABC ranking reports (starting

in 1976) or protability o customers,

suppliers, branches and employees most

distributors have not tapped the ull potential

o ABC analysis or even philosophical thinking

which raises at least these questions:

Why the low, slow adoption rate or

ABC by distributors over the past 21

years? [1]

Why the weak ollow through at rms

that do get rst- or second-hand ABC

insights?

How can we make ABC a more user-

riendly and less threatening tool with

simple starts?

What would be the rst, easiest

distribution-specic ABC applications

to try?

Is my recent booking a sign o broader

interest within distribution channels?

And, rom the non-user crowd: First,

what exactly is ABC anyway?

ABC, simply put, is an accounting method (not

sotware, although there are ABC sotware

tools available) or assigning a rms resource

costs or all activities that go into producing

products and/or services by a more detailed

splitting up o and reassignment o indirect

or overhead costs.[2] (Readers can google

activity based costing + six steps and nd

all that you need.)

By simple example, i two customers o a

distributor each bought $1,000 o goods

with $200 o margin dollars in the order, how

much prot did each order put to the bottom

line? It depends, o course, on the number

and degree o service cost activities. What i

one order involved every (extra) service cost

imaginable while the second was generated

by a non-commissioned, house account which

was ordered electronically or standard, in-

stock, ast-turning goods and then picked

up by the customer who paid in cash? We

know intuitively that the second order is more

protable, and we are grateul to have it to

cross-subsidize some o the losing orders that

we know we have everyday. Our nancial

reporting systems have been shaped to pay our

taxes on time and do asset-backed borrowing

rom banks; they dont tell us which suppliers,

products and customer combinations make

us the most money, which really denes our

competitive strategy.

To extend the two order problem to customer

protability analysis or an entire years worth

o business, it is not uncommon or an ABC

analysis to rank customers rom the mostprotable to the biggest losers to reveal the

ollowing magnitudes:

The top 10% o the most protable

customers yield 90-100% o

company prots (The top 5 accounts

are sensationally protable; should

we do anything extra not to lose

them? Or, to sell even more to the

core more eectively?)

The top 40% cumulatively yield 140-

150%, which, lets say, is the break-

even point or the ranked customers.

The bottom 60% starts as negligible

losers to nish with a ew shockingly-

big losers at the bottom. The

cumulative losses on the bottom 60%

oset the extra prots rom the top

40%, so that 100% o the accounts

do total to 100% o the prot beore

interest and tax (PBIT).

But, the bottom 1-2% o the customers

will, notably and amazingly, lose as

much as 20% o PBIT (Should we try

to turn these lead accounts into

protable gold accounts? How?)

Visit merrield.com to read the rest o t

article and learn more about how to experime

with ABC prot reports.

D. Bruce Merrield, Jr.

Merrield Consulting Group, Inc.,

Article 2.27

merrield.com

[1]

Or, 29 years since the publishing o t

Harvard Business School case entitled: Pa

Distributors, Inc. (E): The Small Order Problem

The case was on one o my turnarounds and

now out o print.

[2]Acorn Systems (acornsys.com) is t

#1 ABC sotware company. They have

number o very large distribution rm clie

($200MM and up). They hope to repacka

their distributor best practices into a mo

aordable solution or smaller rms in the n

uture. I have helped a number o distribut

sotware rms install a simple custom

protability ranking report option.

(ABC)

Realizing the Potentiao Activity Based Costin

by D. Bruce Merrield,



11/16

Are your regional sales manager salaries in line with others? Is your percentage o sales heavy

on hair rather than equipment, nails or skincare? Are your store sales invoice amounts setting the

pace or the industryor lagging behind?

PBA is pleased to release the results o the 2nd PBA Distributor Benchmarking Survey.

Providing distributors with benchmarking inormation or categories such as sales training, sta

compensation, warehouse expenditures and more, this survey provides PBA distributor members

with a resource to compare their business to industry averages. Participating distributors receive

the results o the survey; all other PBA Distributors can purchase the results or $99 with renewal

o their 2009 PBA dues. The survey results are not available to members outside the distributor

section or to non-members.

To purchase the survey, please email [email protected]

or call Membership at 800.468.2274 (480.281.0424).

The 2008 Distributor Benchmarking Survey

Alternative Salon Concepts (Bellevue, WA)

Apollo Distributors (Houston, TX)

BBSNY (Kew Gardens, NY)

Bellarno, LLC (Lodi, NJ)

Besty, Inc. (Los Angeles, CA)

Caliornia Nail and Spa Supply (Citrus Heights, CA)

Central Nails and Beauty Supply (Stockton, CA)

CP Beauty Supply, Inc. (San Jose, CA)

Giell Beauty Supply (Flowery Branch, GA)

Hair Zone, Inc. (Moonachie, NJ)

Hairstations (Santa Clarita, CA)

Heavenly Boutique, Ltd. (Santa Clarita, CA)

Hi-Fashion Beauty Supplies (Long Island City, NY)

INY Beauty Supplier (Toronto, ON)

JP Enterprises (Longview, TX)

Marco-Bruno, Ltd. (Port Harcourt, Nigeria)

New PBA Distributor/Store Members

May 1 August 1 PBA Distributor/RetaBeauty Store Section

Metro Salon Services, LLC (Johnston, RI)

Mikala Nails and Beauty Supply (Columbus, OH)

Proessional Beautyand Nail Supply (Anchorage, AK)

Runnin Over (Accra, Ghana)

Salon Solutions by Snow White Solutions LLC (Palm

Beach Gardens, FL)

Sleek Cosmetics Ghana (Accra, Ghana)

Smart Mark, Ltd. (Lagos, Nigeria)

SV Beauty Supply, LLC (Victorville, CA)

Tai (Miami, FL)

Ultimate Beauty Companies (Huntington Park, CA)

Vision o Mission, Ltd. (Accra, Ghana)

Wizmet International (Lachine, Quebec)

Note: For a ull list o PBA members by section,please visit probeauty.org/directory.

PBA is pleased to announce tha

the Distributor/OTC Section o PBA

has been renamed the Distributor

Retail Beauty Store Section to

encompass a broader range o the

proessional beauty distribution

world. Everything else you know

and love about this section o PBA

will remain the same!

Questions aboutthe change?

Call us anytime at 800.468.2274.

Josh Haetz

The Raylon

Corporation

Reading, PA

The survey really

helps me benchmark

different areas of my

business to see where

we are doing great,

as well as determine

where my areas for

improvement are. Its

not easy getting this

type of information.

Ready or beauty sales and distributor-ocused education? Knowledge is a beautiul thing, which is why PBA is proud to

announce the launch o an online learning center in 2009. Beauty U will be an invaluable resource or the Distributor/Store

Section o PBA that will expand over time to include education or every section o membership. From downloadable

articles and business tools to interactive web workshops, Beauty U is making knowledge beautiul or you!

Coming soon!

Knowledge is beautiful.



12/16

Manufacturer/Rep Section

probeauty.org

Manuacturer Member Proile:

Circle o Friends was started

with the mission o creating

a proessional hair, bath and

body line or children, while

introducing them to a world o

styles and cultures. Founded

in 1995, Circle o Friends

became a PBA member in 2007. PBA

caught up with Eleanor Keare, president

and owner o Circle o Friends, this October

to ask about the behind-the-scenes work o

producing and distributing a proessional

beauty product to a niche market.

1) What is the origin story

o Circle o Friends?

Circle o Friends (COF) was started in 1995

by a mom who was working or a contract

manuacturer. She saw a need or childrens

proessional products. During her own

childhood, she moved every ew years with her

athers job, so she had the benet o learning

rst hand about many o the worlds cultures.

She wanted her own children and others to

have that same experience. The inspiration or

COFs multi-cultural packaging was born! Ater

running the business or 5 years, she sold it

to an investor so that she could spend moretime with her amily. That investor hired me at

the end o 2002 to run COF or him. In 2005,

I bought COF rom him with the objective o

urther expanding distribution and launching

innovative new products.

2) How successul has your innovative

line o childrens products been?

Circle o Friends is the leading childrens

line in the country. We are in more doors

than our competition and we oer the most

comprehensive product assortment. Our

salon/beauty supply business has grownevery year, up to 40%. Our sales success is

due to many actors. Our unique branding and

packaging attracts children and parents which

encourages trial. Our exceptional product

quality keeps them coming back or more. Our

trade partners appreciate our strong customer

service including communication, order turn

around and in-stock ratios.

3) How wide is your

distribution? Where

could I buy a bottle o

Ana Banana Shampoo?

Our products are available

nationwide through salons,

spas and beauty supply stores.

In addition to our ull service

distributors proessional-only stores,

we are also available at Ulta Beauty

Brands and select Beauty First stores.

4) Do you have plans to expand

into other areas o the industry

or into other lines o

child-specifc products?

We launched our lice prevention system,

called Lice Deense, with two products

in 2007. They have been so popular; we

launched two styling SKUs to the range this

year. We have several other new product

categories in development or launch in 2009.

We are very excited about them, but need to

keep the details a secret at this time.

5) Where do the names o your

individual products, like HansOom Pah Pah Shampoo, come rom?

We do extensive country research as part o

product development or each new product.

Its important that the character comes rom a

country that grows or represents the ruit that

inspires the ragrance. The creative names

(e.g. Oom Pah Pah Shampoo or Dragon Dance

Conditioner) are a result o our research.

6) How do you get the word

out about your products

to your customers?

We oer lots o product sampling. For

example, we give out product samples to over

100 charities each year. COF also does smart

marketing through the internet and bloggers

we have dozens o blog reviews. We also

attend about a dozen trade shows each year.

COF works with PR rms to support new

product launches and special events.

In-salon marketing is also a big part o o

outreach program. We have a genero

back-bar and tester program or stylists, g

out extensive merchandising materials a

oer suggested planograms.

7) What advice would you give a

manuacturer looking to start

a line o beauty products that fts

a niche such as childrens beauty?

It takes time to grow distribution. We ha

a very loyal customer base, which we ha

been building and nurturing since 1995. Do

expect overnight success! Your product a

your brand must have a point o dierence.

8) Why are you a member o PBA?

Its important to support our industry; a we

industry is bad or all businesses. We a

joined to take advantage o the members

discounts and networking opportunities.

Visit circle-o-riends.com to learn mo

about this pioneering beauty company a

to view their ull product line. Know o

member company youd like to learn mo

about? Email [email protected] w

suggestions or uture member proles!



13/16

Exclusive ISSEBenefts orPBA Members

January 31-February 2, 2009Long Beach Convention Center, CA

PBA Members Lounge at ISSE

Looking or a quiet place o the show foor?

Stop by the PBA Member Lounge to rest, relax,

check your emails and grab complimentary

rereshments. Current PBA members are

welcome in the lounge be sure to wear your

PBA Member Ribbon or entry (i you dont

have one, we have one or you). Hours o

operation will be rom 11am 7pm on Sunday

and 11am 2pm on Monday. Beore 9am,

stop by the PBA booth located in the Arena or

a complimentary continental breakast!

Join us or a SuperBowl Party

On Sunday aternoon, PBA will host a

SuperBowl Celebration in the member lounge.

Enjoy the biggest game o the year with

ellow members or just come over to view

some o those talked about commercials.

Free game day snacks and spirits will be

provided or all PBA members!

Calling All Exhibitors or Breakast

at the PBA Booth

All exhibitors are invited to join us or a

continental breakast in the PBA booth at

ISSE, located on the Arena Floor. Grab a

cup o coee and network with other ISSE

exhibitors rom 7:30am 8:45am on Sunday

and Monday. Learn more about how you

can become more involved in your beauty

industry trade association.

And o course, PBA members always receive adiscounted booth price, 300 lbs. ree drayage,

40-60% discount on sponsorships and

advertising and two ree, three-day tickets.

Contact PBAs Membership Department or

more inormation about these ISSE events at

[email protected] or call 800.468.2274.

800-Pedi-Spa (Bentonville, AR)

AHNU (Petaluma, CA)

Angeleet Pedicure File (Rochester, MN)

Arminak and Associates, Inc. (Azusa, CA)

Bianco Brothers Instruments (Brooklyn, NY)

Continuum Footspas (New Berlin, WI)

Cortex USA Ltd. (Atlanta, GA)

Export Magazine (Malibu, CA)

Falcon International (Corona, CA)

Herbal Works (Las Vegas, NV)

Institute o Courage (Topanga, CA)

Jessie Steele, Inc. (Berkeley, CA)

Keratin Complex Smoothing

Therapy (Boca Raton, FL)

Key 2 Growth (Calabasas, CA)

M and M International (Delray Beach, FL)

Mahya Cosmetics, Inc. (Dallas, TX)

Metropolis Technology, Inc. (Burbank, CA)

Mommy Makeup (New York, NY)

New PBA Manuacturer/Rep Members

May 1 August 1

The 2008 MarketShipment Study

Each year, proessional hair produ

manuacturers anonymously share thdata with an independent public account

rm who prepares a comprehensive mar

overview o the industry. The data in t

study is available nowhere elsema

members eel the value o this study alo

pays or their membership.

PBA has released the mid-year 2008 Mar

Shipment Study. I your company provid

inormation or the Market Shipment Stu

the study is complimentary; otherwise, P

Manuacturer members can purchase t

results or $500. The Market Shipment Stuconducted two-times/year, showcases mar

shipment inormation in categories such

Hair Color, Haircare and Styling Produc

Coming in 2009the rst Market Shipme

Study or the Appliance sector!

To order the study, please email

[email protected] or call

Membership at 800.468.2274 (480.281.042

Naga Beauty Group (Sacramento, CA)

Nohm (Costa Mesa, CA)

Palladio BTY Group (Hollywood, FL)

Pure Body Elements (Aliso Viejo, CA)

Ram Products, Inc. (East Brunswick, NJ)

Salon Specic (New York, NY)

Sanzay Corp (Hialeah, FL)

Steron International (Los Angeles, CA)

The Beauty Company Inc. (North York, ON)

The Packaging Company (Long Beach, CA)

The Shears Store (Portland, OR)

Tip Essentials, Inc. (Los Angeles, CA)

Vicki Tsai (San Francisco, CA)

Viso Trading (Milton, ON)

VJJ Enterprises, Inc. (Lake Tapps, CA)

Vladymo Cosmetics (Windsor, CT)

Note: For a ull list o PBA members by section,please visit probeauty.org/directory.

Past exhibitors can go online to reserve space

www.cosmopronorthamerica.com/exhibito

New exhibitors can download a 2009 Reque

or Exhibit Space Form. I you have any questi

please contact Eric Horn at 800.468.2274

(480.281.0424) x3431 or Toni Davis at x344

July 19-21, 2009Mandalay Bay Resort and Casino

Exhibit space is going as



14/16

Salon/Spa Section

To request a mentor assignment or 2009, or volunteer as a mentor,

please contact Teena Purdiman at 800.281.0424 (480.281.0424)

x3442, or email [email protected].

Tommy Aucoin, Atelier Aucoin Salons and Academy

Michael Bledsoe, Headlines Salon

Steven Brooks, Diva Studio

Kris Carpenter, Sanctuary LLC

Serena Chreky, Andre Chreky, The Salon Spa

Bonnie Conte, Avalon Salon and Day Spa

Darla Di Grandi-Aguielera, Hi-Lites Aveda

Mario Landino, Captiva Salon

Krista Martin, Metro or Men

Pamela McNair, Gadabout SalonSpas

Sasha Rash, La Jolie

Lawrence Seybold, Carenza Color Cutting Experience

Mary Swank, Simply Swank Salon and Spa

Melissa Yamaguchi, Yamaguchi Salon and Spa

Rowena Yeager, Studio Wish

The Cutting Edge Mentor Program for Salons/SpasThe best way to become truly great is to become

as accomplished as possible, and then help others

through your leadership, James M. Citron.

PBA volunteer mentors are available to help grow

your business! They are committed to expanding

the proessionalism o the beauty industry, and to

ostering the growth o leadership and business skills

within our membership. PBA mentors bring their

expertise, passion, inspiration and dedication to help

ellow members!

Mentors are available to consult with you in a one-day

visit to your business, i you will cover travel expenses.

PBAs Cutting Edge Mentor Program volunteers include

these experienced and successul business owners:

Enter NAHA Online!NAHA sets the standard for stylist achievement. A list of past winners

serves as a "whos who" of influential beauty makers in North America.

Ready to honor the work of stylists and tell your own story at NAHA

20? Applications are available for download at probeauty.org/naha

or enter online. Entries must be postmarked by February 2, 2009.

Need morinformatioon runningsuccessfu

photo shooprobeauty.o

naha/entenahadvd



15/16

A Style Concierge, LLC (San Diego, CA)

About Faces (Santa Barbara, CA)

All 4 Show Hair Trac Control (Compton, CA)

Arte Salon (New York, NY)

Bab and Co. Hairdesigners, Inc. (Carmel, IN)

Barberia Salon (Foster City, CA)

Beauty and Health (Cuernnvaca, Morelos)

Carolinas Spa Group (Charlotte, NC)

Che-la Salon and Spa (Bloomington, IL)

Christinas Salon (Pine Brook, NJ)

Coiure NU (Gatineau, QC)

Collins and Co. Salons (Cincinnati, OH)

Condence Beauty Salon and Spa (New York, NY)

Cutz and Color Salon and Spa (Pearl River, LA)

Distinque Salon and Spa (Pittsord, NY)

Diva Studio (Las Vegas, NV)

Elan Hair Studio (Brielle, NJ)

Entourage Hair Design (Indianapolis, IN)

Essentials Salon and Day Spa (Klamath Falls, OR)

New PBA Salon/Spa Members

May 1 August 1

Fresh and Co Salons (Edmonton, AB)

Gaia Microspa (Greendale, WI)

Goldwaves Salon and Spa (Fort Worth, TX)

Hair Master, Inc. (Manassas, VA)

Hey Good Lookn Salon (Lunenburg, MA)

Hollywood Glam Salon and Spa (Norman, OK)

Love and Makeup (Spencer, OK)

Mae - A Hair Place (Toms River, NJ)

Mancuso Salon and Spa (Sparta, NJ)

Mane Attraction (Winchester, VA)

Matt Wayne Salon (Omaha, NE)

Moxie Salon and Spa (Spokane, WA)

Natural Body Spa and Shoppe (Potomac, MD)

New York Beauty (Miami, FL)

Organicures Nail Spa (Phoenix, AZ)

Quail Run Inc. (Avondale, AZ)

Rocky Mtn. Hair Designs (Delta, CO)

Ruby Room (Chicago, IL)

RuMM Color Studio (Alpharetta, GA)

Come with questions the experts and get t

answers you nee

How do I keep my team motivate

Is now a good time to hir

How do I boost my retail in this economic climat

PBA members receive two free,

three-day t ickets to ISSE.

Register for your free tickets online at

probeauty.org/isse and get entered in a

drawing to participate in a professional

hair and fashion photo shoot with PBA!

Learn more about everything you can win at

ISSE this year at probeauty.org/isse/win or

check out probeauty.org/isse/education for

a sneak peek at all the amazing educationlined up for ISSE 2009.

Back by popular deman

Participate in a spirit

discussion with some of t

industrys most successful sa

and spa owners and get adv

on how to tackle todays tou

business issu

Dont miss PBAs Complimenta

Business Class at ISSE 200

Business Today Fast Fire PanFacilitated by: Cary OBri

of Cary OBriens Design & Color S

Monday | 11:30am 1:30p

Jan 31 - Feb 2, 200Long Beach Convention Cente

Saab Salon Spa (Ottawa, ON)

Salon 21 (Raleigh, NC)

Salon De Tay (Beaverton, OR)

Sheltons Salon and Day Spa (Arlington, TX)

SoLuTion or Hair (Houston, TX)

Spa Divinity (Roanoke, VA)

Studio 10 Healthy Hair Concept (Raleigh, NC)

Studio EMME (Jacksonville, FL)

Studio Fovero (Columbus, OH)

The Botanical, A Day Spa (Middletown, NY)

The Polished Capitol Group (Houston, TX)

The Styling Company (Calgary, AB)

Toscana European Day Spa (Boston, MA)

Volpe Salon At the Landings (Sarasota, FL)

Zona Salons (Norwell, MA)

Note: For a ull list o PBA members by secti

please visit probeauty.org/directory.



16/16

Professional Beauty Association

15825 North 71st Street, Suite 100

Scottsdale, Arizona 85254

b t

Do Your Part. Recycle.

Featured Benet Provider

Anity Insurance Services877.738.6993

aon.comavailable to salon/spa section only

Combined Property, General Liability and Proessional Liability coverage tailored to your business and level o risk.

Broad and enhanced coverage not included in most other business-owner plans.

Competitive rates that could save you money.

Flexible premium payment options so coverage is easier to budget.

Superior 24-hour claim service.

Free Loss Control to assist with risk management beore and ater a loss.

A salon or spas ree insurance makeover starts with a ree review. Let us analyze your current and uture business insurance needs, uncoverany costly gaps or overlaps and recommend ways to better manage your risks. Youll also receive a ree, no-obligation rate quote or the

coverage you need.

The coverage descriptions above are general in nature and or inormational purposes. To see the actual terms o coverage, please

reer to the policy. I there is any confict between the description contained above and the terms o the policy, the terms o the

policy shall control. Aon Association Services, a Division o Anity Insurance Services, Inc. in CA (Insurance License #0795465),

MN & OK a Division o AIS Anity Insurance Agency, Inc. in NY a Division o AIS Anity Insurance Agency.

Take advantage o Aons ree insurance makeover or your salon or spa (no appointment necessary).

The salon and spa industry is constantly oering new services and products. This can expose your business to new risks that are not covered

by standard insurance policies. How do you know i your salon or spas coverage is up-to-date and complete? Aon Anity Commercial Services

has a unique insurance program designed exclusively to meet the needs o salon and spa owners like you that can help. Our comprehensive

program oers you one-stop shopping with:

Documents

PBA Progress Fall08 Newsletter