Fall 2008

Progress
An Update for Members of the Professional Beauty Association

Event Spotlight

January 31 - February 2, 2009

L o n g B e a c h C o n v e n t i o n C e n t e r, C A

Inside this Issue

Letter from
the Leadership inside front cover
Government Affairs 1
PBA CareerCenter 2
PBA Symposium 2
Rebuilding the Last Angle: Part II 3
Beauty and the Economy:
A National Profile
of the Salon Industry 4-7

Distributor/Store Section
Activity Based Costing 8
Distributor Benchmarking Survey 9
New! Beauty University 9

Manufacturer/Rep Section
Manufacturer Member

PBA Studies
Profile: Circle of Friends 10
The 2008 Market Shipment Study 11

the Industry
ISSE 2009: PBA Member Events 11

Salon/Spa Section
Cutting Edge Mentor Program 12 — Beauty and the Economy:
ISSE 2009: PBA Fast Fire Panel 13 A National Profile of the Salon Industry
Benefit Highlight: Aon — Distributor Benchmarking Survey
Affinity Insurance Services

back
cover — Market Shipment Study
...and announcing the launch of a new groundbreaking
industry study at PBA Symposium in Las Vegas.
photo courtesey of entrant Van Council for the Van Michael Salon.

PBA_fall08_nwslttr_singlepgs.ind1 1 11/20/08 10:42:30 AM

 A Letter from the Leadership

As we enter the last few weeks of 2008 and with all of the recent
You
Belong.
economic turmoil, it’s almost a daily occurrence that I receive phone
calls from members and the press looking for statistics and economic
data about the professional beauty industry. Until recently, some of
the callers I could help, some I could not. However, that situation is
changing and changing rapidly.

PBA has always had great baseline information available. Research is

a cornerstone of what trade associations provide their members and
Renew Now &
industry. This is why-as part of our ongoing mission to continually enhance Win a Trip to Las Vegas
the value of your membership-our volunteer leadership has been hard at
work driving the organization to serve the needs of our members with Renew your 2009 annual dues before December
valuable, timely and relevant research and statistics.
15, 2008 and not only will your valuable member
Set to be released at the 2009 PBA Symposium-taking place July 18- benefits continue without interruption, you will
21 at Mandalay Bay Convention Center in Las Vegas-PBA has initiated a be entered in a drawing to win a trip to PBA’s
landmark study of the salon and spa environment, covering everything from 2009 annual meeting at Mandalay Bay in Las
best practices in retail, global beauty trends, consumer experiences and Vegas! The drawing winner will receive:
expectations, competitive beauty environments and best in class salons.
The study is groundbreaking in its depth and breadth of coverage, and we - Domestic airfare
are extremely excited to bring this caliber of information to our members. for 1 person PBA
Symposium
Recently released on the research front, the PBA Distributor Benchmarking - 3 nights of hotel
Survey provides a snapshot of critical operating and financial information accommodations
that allows members to compare their own organization with those of
their peers (more on page 10). PBA has also just recently re-released
- 1 complimentary
the latest version of our National Profile of the Salon Industry, updated tuition to PBA
with the latest Department of Labor and US Census Bureau statistics. Symposium
This report contains detailed data about the size, makeup and economic
impact of our industry as viewed by the federal government. For more on
- 1 complimentary
this report, be sure to check out this issue’s cover story on page 5. ticket to NAHA 20
- 2 complimentary,
In addition to this research, our PBA Research Committee has been
working on enhancements to the PBA Haircare Market Shipment
3-day badges to
Study. Administered by the national accounting firm of Deliotte, the Cosmoprof
study is conducted bi-annually and provides precise measures of sales North America
activity at the manufacturer level. The hardworking committee is also
developing a similar study for the appliance sector of our industry. For
- 2 complimentary
more information on this study, turn to page 12. tickets to the
City of Hope Dinner
These new tools are all powerful reasons to remain a part of PBA. As
a PBA member with direct access to this research, your business has a The lucky PBA member will be notified in
competitive advantage during this tough economic time. To learn more January 2009. For more information or for
about these valuable tools, read on in this issue of PBA Progress! contest rules, email info@probeauty.org.

I encourage you to renew early to make sure you don’t miss out on
any of these new tools and all of the other valuable benefits that PBA
has to offer. Visit probeauty.org to maximize your return on your dues
investment and thank you for your continued support!

Steve Sleeper
PBA Executive Director
Scottsdale, AZ

probeauty.org

PBA_fall08_nwslttr_singlepgs.ind2 2 11/20/08 10:42:43 AM


Government Affairs
Labor Unions,
“Card Check”
and the Salon Industry
The so-called Employee Free Choice Act,
also known as “Card Check,” is likely the
biggest legislative threat you’ve never
heard of. The nation’s labor unions are
aggressively pushing a far-reaching and
radical agenda to, in its own words, “take
back the economy.” Headlining the agenda
is legislation to make it cheaper, faster and
easier to unionize Main Street businesses
and small retail establishments.
Under existing law, employees are allowed
to vote for 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
from enough employees—a minimum of
30 percent—then the union can request
an election. If a majority of workers—
expressing their choice in the privacy of
the voting booth—support the union, then
the employer must begin bargaining with
the union. If most workers vote against
the union, then it does not represent them
and must cease its organizing activities.
Unions win recognition in over 60 percent
of these elections.
PBA_fall08_nwslttr_singlepgs.ind3 3
Under the proposed Card Check
legislation, an employee’s right to vote
by secret ballot is effectively eliminated.
The law would require employers to
recognize a union— without an election—
once organizers collect signatures on
authorization cards from a majority of
employees. Under the proposed law,
holding a secret ballot election once
unions collect cards from a majority of
workers would become illegal. Critics
charge that without a secret balloting
process, workers are open to undue
pressure and coercion from union
organizers.
Card Check would make it cheaper,
faster and easier to unionize Main
Street businesses, small service and
retail establishments and industries that
have never experienced unionization
before – including the professional salon
industry. For example, in a business
with 10 employees, union organizers
would need only 6 signatures to force
the business to recognize and bargain
with the union. Employers may not even
realize they are being targeted.
1
“A business owner can go home on Friday
thinking everything is OK and come back
on Monday and find out that the union
had gotten employees to sign the card
over the course of a weekend without the
employer having any idea that there was
an effort under way,” said Sam Leyvas,
PBA’s director of government affairs. He
adds, “Small businesses are particularly
vulnerable because they may not have
the legal resources needed to withstand
a unionizing campaign.”
There is strong support for Card Check
legislation by some members of Congress
and President-elect Barack Obama. In fact,
the House of Representatives approved
the legislation in 2007. However, labor
unions were unable to get the legislation
through the Senate this year. Card Check
legislation is expected to be a priority of
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 sam@probeauty.org.
11/20/08 10:42:48 AM
 Introducing the New
PBA CareerCenter
Looking for that perfect fit? In December, the Professional Beauty Association (PBA) will
launch its new, online job board, the PBA CareerCenter: your online resource for making
employment connections in the beauty industry.

Finding the right candidates for your open positions can be a time consuming and
frustrating process. With the launch of the PBA CareerCenter, employers will finally be
able to target their advertising to recruit the candidates they’re looking for—and spend
less time doing it! As the industry’s trade association, the Professional Beauty Association
represents a niche talent pool of beauty professionals. PBA members will also receive
one free 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 specifically looking for
beauty industry professionals. Job seekers can post their resumes (confidentially, if they choose), search jobs, apply
online and set up search agents to provide automatic email notifications whenever a posted job fits their criteria. They can even
save jobs and apply when they are ready. Plus, all job-seeker functionality is free!

Mark your calendar for the launch of the new PBA CareerCenter in December 2008! The PBA CareerCenter will
be located at probeauty.org/careers

PBA
Symposium BEAUTY IS MY BUSINESS

July 18-21, 2009

c o n s u m e r Mandalay Bay Resort
c u l t u r e and Casino | Las Vegas
NEW FORMAT!
Program based on groundbreaking,
new industry study.
PBA Symposium has evolved into a one-of-a-kind
educational event for the entire industry. Symposium provides three days of upper-
level business education, unlimited networking and powerful research about the
contemporary beauty consumer. Salons and spas can expect the same high-quality
education that Symposium has always offered. Manufacturers, exhibitors and
distributors will benefit from industry-specific general sessions in the mornings
and gain access to the Cosmoprof North America event throughout the day.

Look for more information on Symposium in the winter issue of the newsletter!

h e l d i n c o nj u n c t i o n w i t h
p ro b e a u t y. o rg / s y m p o s i u m

probeauty.org

PBA_fall08_nwslttr_singlepgs.ind4 4 11/20/08 10:43:10 AM

 3

In the Wake
of the Greensburg Tornado
Part II: Rebuilding the Last Angle
Building a salon or spa from the ground up takes
time and effort. Rebuilding a salon torn down
by a tornado to the highest green standards in
the nation takes even more time.
PBA wishes
In the spring 2008 issue of PBA Progress, we Debbie Bolyes
learned about the plight of Debbie Bolyes, and Peel’s Salon
owner of Last Angles, after the Greensburg Services the
tornado tore apart her salon. (For a refresher best of luck
on the disaster and how Bob Peel Jr. of Peel’s with the rebuild.
Salon Services came to the rescue and offered Congratulations on
to cover the cost of rebuilding to eco-friendly your progress!
standards, visit probeauty.org/progress and
click on “Spring 2008” under the archive.)

Working closely with Debbie’s 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 first quarter of 2009 and we
are still planning a makeover of every citizen in
the entire city for the kickoff of the salon. Matrix
is helping out with the opening by giving out
free haircare to every Greensburg resident.”

PBA_fall08_nwslttr_singlepgs.ind5 5 11/20/08 10:43:42 AM

 Looking at the Economy
Through Beauty-Tinted Lenses:
PBA’s 2008 National Profile of the Salon Industry
By PBA Economist, Bruce Grindy

The U.S. economy is currently in the midst of its most challenging period since the early 1990s.
The economy lost 760,000 jobs during the first nine months of 2008, and national gross domestic
product likely contracted during the second half of the year. Add in the turmoil in the global financial
markets, and it is likely that an economic recovery will not gain a firm footing until well into 2009.

Recessions are nothing new for the country, wages have all combined to put consumers
and indeed the national economy experienced in a precarious position. Consumer spending
a downturn as recently as the beginning of this plunged 3.1% in the third quarter on an inflation-
decade. But the difference between the current adjusted annualized basis—its first decline since
economy and the last recession is that many 1991 and its largest drop since 1980.
consumers in the early 2000s were able to tap into
the equity of their homes to bridge the gap during During periods such as this, the economy is
the downturn. As a result, consumer spending typically propped up by Main Street sectors—
continued to grow, even though the overall businesses that are the cornerstones of their
economy contracted. With falling home prices and local communities. Businesses that provide
the difficulty obtaining credit, that is simply not an products and services like the local restaurant,
option for many consumers today. market or salon are essential to the day-to-day
lives of Americans.

“During periods such as this,

The Professional Beauty Association’s new
the economy is typically
“National Profile of the Salon Industry” illustrates
propped up by Main Street
how the American salon industry is an engine
sectors—businesses that
of growth for Main Street, even during times of
are the cornerstones
economic uncertainty. This article takes a look
of their local communities.”
at four components of the National Profile, and
puts them in the context of the current economic
The current perfect storm of declining wealth, environment.
elevated food and energy prices and stagnant

probeauty.org

PBA_fall08_nwslttr_singlepgs.ind6 6 11/20/08 10:43:56 AM

 5

Beefing Up Main Street to register its 16th consecutive year of job growth. More
The U.S. salon industry registered steady growth in recent years. impressively, job growth in the salon industry outpaced the
Although much of the growth in salon establishments was overall economy in eight of the last nine years, including 2008.
driven by substantial increases in the number of non-employer Even while the overall economy was losing jobs in both 2002
establishments, there were also steady gains in the number and 2003, salon industry employment continued to grow.
of employment-based salon locations. Between 2001 and
Total Salon-Industry Sales, 1997 to 2006
2006, the number of employment-based salon establishments
Billions of Current Dollars
in the U.S. increased 10%, according to the Bureau of Labor
Statistics. During the same five-year period, the number of
employment-based businesses in all industries also grew 10%,
which illustrates the consistent contribution to the economy of
employment-based salons.

Number of Employment-Based Salon-Industry

Number of Employment-Based Salon-Industry Establishments With Payroll Employees
Establishments with Payroll Employees
Beauty Total
Salons Percent Nail Percent Barber Percent Salon- Percent
Year and Spas Change Salons Change Shops Change Industry Change Source: U.S. Census Bureau
1997 68,904 5,879 3,545 78,328
1998 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 0.4
2000 68,004 -1.8 7,023 -0.3 3,338 -3.8 78,364 -1.8 The contribution of the salon industry to the overall economy
2001 67,544 -0.7 7,310 4.1 3,254 -2.5 78,108 -0.3
2002 68,261 1.1 7,988 9.3 3,270 0.5 79,520 1.8 has been even more impressive during the current economic
2003 68,964 1.0 8,527 6.7 3,320 1.5 80,811 1.6
2004 69,911 1.4 9,137 7.2 3,347 0.8 82,394 2.0 downturn. In the 12 months ending September 2008, the
2005 70,762 1.2 9,608 5.2 3,366 0.6 83,735 1.6
2006 71,949 1.7 10,319 7.4 3,399 1.0 85,667 2.3
number of jobs at employment-based salons increased 1.5%.
Source: Bureau of Labor Statistics, U.S. Census Bureau
During the same 12-month period, the total number of jobs in
the overall economy declined 0.2%.
As the number of employment-based salons continues to
grow, so too do the number of employment opportunities for Although the salon industry isn’t recession proof, it posted
salon professionals. In recent years, employment-based salons steady sales growth in recent years amidst all of the economic
consistently provided growing numbers of job opportunities volatility. In 2006, the most recent year for which sales figures
even when many other industries were in decline. The U.S. are available, the overall salon industry registered total sales of
employment-based salon industry is currently on pace in 2008 $37.5 billion – up 86% from a sales volume of $20.2 billion in

PBA_fall08_nwslttr_singlepgs.ind7 7 11/20/08 10:44:14 AM

 Cover Story - continued
1997. Although non-employers represent a majority of salon
industry establishments, employment-based salons account for
55% of total salon industry sales.
Annual Percent Change in Prices for Haircuts and Other Personal
Care Services — Consumer Price Index: Haircuts and Other
Personal Care Services vs. Overall Inflation Rate
Source: U.S. Department of Labor, Bureau of Labor Statistics
The Value of Value
In today’s economy, consumers are continually searching for 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 inflation rate. According to the Bureau of
Labor Statistics, the Consumer Price Index for Haircuts and
Other Personal Care Services increased at rates below 4% in
each of the last nine years. More recently, salon prices increased
probeauty.org
PBA_fall08_nwslttr_singlepgs.ind8 8
at rates below the overall inflation rate. In fact, 2007 marked
the first year since 2003 in which prices for haircuts and other
personal care services outpaced the overall inflation rate.
More recently, salons have provided outstanding value to
their cash-strapped customers in today’s economy. In the 12
months ending September 2008, prices for haircuts and other
personal care services rose a relatively modest 3.2%, well
below the overall inflation rate of 4.9% and significantly less
than the 7.6% increase in grocery store prices and the 23.1%
jump in energy prices.
An Industry of Diversity
A diverse workforce is one of the hallmarks of the salon
industry, providing employment and career opportunities
for individuals of all backgrounds. According to data from
the Bureau of Labor Statistics, the salon industry employs a
higher proportion of African-Americans, Asians and women
than the overall U.S. workforce.
Twelve percent of individuals in personal appearance occupations
are African American, slightly above the national average of 11%.
Fourteen percent of salon professionals are Asian, compared to
5% of the overall U.S. workforce.
Eighty-five percent of individuals in personal appearance
occupations are women, nearly twice as much as the 46% of
the overall U.S. workforce that is represented by women.
11/20/08 10:44:20 AM
 7

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

N a t io n a l P ro
o f th e
fi le
S a lo n
Industry
No v 20 08

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

Breakdown of Employed Individuals by Gender, Race and Ethnicity

— Personal Appearance Occupations versus Overall U.S. Workforce
Source: U.S. Department of Labor, Bureau of Labor Statistics; 2007 data
Did you know that PBA has an economist who collects vital
data on the industry? An independent economist based in
Washington, DC, Bruce Grindy, is also the official economist for
the Professional Beauty Association. As PBA’s economist, Bruce
is responsible for compiling the data for many of PBA’s research
efforts including the “National Profile of the Salon Industry,” the
“Distributor Benchmarking Survey,” the “Portrait of the U.S.
Salon/Spa Industry by Congressional District” and other valuable
member resources. Turn to page 10 to learn more about the
2008 “Distributor Benchmarking Survey.”

Further Information
To see a complete listing of all PBA research
Want more of the industry research revealed in this article? Visit
and industry benchmarking studies please
probeauty.org/resources and log in with your section password
visit probeauty.org/resources:
to download the complete 2008 edition of the “National Profile
— Market Shipment Study
of the Salon Industry.” The profile is complimentary for all PBA
— National Profile of the Salon Industry
members and $149 for non-members. Make sure to check out — Portrait of the U.S. Salon/Spa Industry
the many other research resources available to members on the by Congressional District
PBA website while you’re there! — Distributor Benchmarking Survey
— Salon and Day Spa 2007
Part of being a trade association is gathering and reporting Consumer Trend Report
— Salon/Spa Section’s 10th
critical data and information that cannot be obtained anywhere
Anniversary Survey Report
else. PBA’s mission as the trade association for all sections of
the professional beauty industry is to provide our members with As a member, all complimentary resources are

relevant, timely and important information that will allow them available for download on the PBA website.
You will be required to enter your PBA
to better manage, benchmark and grow their businesses.
password (available on your member ID card).

PBA_fall08_nwslttr_singlepgs.ind9 9 11/20/08 10:44:23 AM

 Distributor/Store Section
I was recently delighted, but surprised, to
be booked to do a workshop at a fall 2008,
distribution association convention on the
topic of “Activity Based Costing” (ABC).
ABC is a cost modeling methodology for
getting a better sense of the true profits from
– customers, services/products, suppliers
and other business decisions – that was first
“productized” in 1987. Back then, it got a lot
of “this-will-revolutionize-business” hype, but
the adoption rate has generally been slow
across all industries. Some industries – banks,
casinos, large logistics firms – are heavy users
but activity within independent distribution
channels is about 10% or less.
Although I have been personally involved
in some terrific, distribution-company
turnarounds that were both guided and
energized by ABC ranking reports (starting
in 1976) for profitability of – customers,
suppliers, branches and employees – most
distributors have not tapped the full potential
of ABC analysis or even philosophical thinking
which raises at least these questions:
Why the low, slow adoption rate for
ABC by distributors over the past 21
years? [1]
Why the weak follow through at firms
that do get first- or second-hand ABC
insights?
How can we make ABC a more user-
friendly and less threatening tool with
simple starts?
What would be the first, easiest
distribution-specific ABC applications
to try?
Is my recent booking a sign of broader
interest within distribution channels?
And, from the non-user crowd: “First,
what exactly is ABC anyway?”
probeauty.org
PBA_fall08_nwslttr_singlepgs.ind10 10
Realizing the Potential
of Activity Based Costing
ABC, simply put, is an accounting method (not
software, although there are ABC software
tools available) for assigning a firm’s “resource
costs” for all activities that go into producing
products and/or services by a more detailed
splitting up of and reassignment of indirect
or overhead costs.[2] (Readers can google
“activity based costing” + “six steps” and find
all that you need.)
By simple example, if two customers of a
distributor each bought $1,000 of goods
with $200 of margin dollars in the order, how
much profit did each order put to the bottom
line? It depends, of course, on the number
and degree of service cost activities. What if
one order involved every (extra) service cost
imaginable while the second was generated
by a non-commissioned, house account which
was ordered electronically for standard, in-
stock, fast-turning goods and then picked
up by the customer who paid in cash? We
know intuitively that the second order is more
profitable, and we are grateful to have it to
cross-subsidize some of the losing orders that
we know we have everyday. Our financial
reporting systems have been shaped to pay our
taxes on time and do asset-backed borrowing
from banks; they don’t tell us which suppliers,
products and customer combinations make
us the most money, which really defines our
competitive strategy.
To extend the two order problem to customer
profitability analysis for an entire year’s worth
of business, it is not uncommon for an ABC
analysis to rank customers from the most
profitable to the biggest losers to reveal the
following magnitudes:
The top 10% of the most profitable
customers yield 90-100% of
company profits (The top 5 accounts
are sensationally profitable; should
we do anything extra not to lose
them? Or, to sell even more to the
core more effectively?)
(ABC) by D. Bruce Merrifield, Jr.
The top 40% cumulatively yield 140-
150%, which, let’s say, is the break-
even point for the ranked customers.
The bottom 60% starts as negligible
losers to finish with a few shockingly-
big losers at the bottom. The
cumulative losses on the bottom 60%
offset the extra profits from the top
40%, so that 100% of the accounts
do total to 100% of the profit before
interest and tax (PBIT).
But, the bottom 1-2% of the customers
will, notably and amazingly, lose as
much as 20% of PBIT (Should we try
to turn these “lead” accounts into
profitable “gold” accounts? How?)
Visit merrifield.com to read the rest of this
article and learn more about how to experiment
with ABC profit reports.
D. Bruce Merrifield, Jr.
©Merrifield Consulting Group, Inc.,
Article 2.27
merrifield.com
[1]
Or, 29 years since the publishing of the
Harvard Business School case entitled: “Paper
Distributors, Inc. (E): The Small Order Problem.”
The case was on one of my turnarounds and is
now out of print.
[2]
Acorn Systems (acornsys.com) is the
#1 ABC software company. They have a
number of very large distribution firm clients
($200MM and up). They hope to repackage
their “distributor best practices” into a more
affordable solution for smaller firms in the near
future. I have helped a number of distribution
software firms install a simple “customer
profitability ranking report” option.
11/20/08 10:44:25 AM
 9

The 2008 Distributor Benchmarking Survey

Are your regional sales manager salaries in line with others? Is your percentage of sales heavy
on hair rather than equipment, nails or skincare? Are your store sales invoice amounts setting the Josh Hafetz
pace for the industry—or lagging behind? The Raylon
Corporation
Reading, PA
PBA is pleased to release the results of the 2nd PBA Distributor Benchmarking Survey.
Providing distributors with benchmarking information for categories such as sales training, staff “The survey really
compensation, warehouse expenditures and more, this survey provides PBA distributor members helps me benchmark
different areas of my
with a resource to compare their business to industry averages. Participating distributors receive
business to see where
the results of the survey; all other PBA Distributors can purchase the results for $99 with renewal we are doing great,
of their 2009 PBA dues. The survey results are not available to members outside the distributor as well as determine
section or to non-members. where my areas for
improvement are. It’s
To purchase the survey, please email info@probeauty.org not easy getting this
or call Membership at 800.468.2274 (480.281.0424). type of information.”

Knowledge is beautiful.
Coming soon!

Ready for beauty sales and distributor-focused education? Knowledge is a beautiful thing, which is why PBA is proud to
announce the launch of an online learning center in 2009. Beauty U will be an invaluable resource for the Distributor/Store
Section of PBA that will expand over time to include education for every section of membership. From downloadable
articles and business tools to interactive web workshops, Beauty U is making knowledge beautiful for you!

New PBA Distributor/Store Members

May 1 – August 1
Alternative Salon Concepts (Bellevue, WA)
Apollo Distributors (Houston, TX)
BBSNY (Kew Gardens, NY)
Bellarno, LLC (Lodi, NJ)
Besty, Inc. (Los Angeles, CA)
California 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)
Metro Salon Services, LLC (Johnston, RI)
Mikala Nails and Beauty Supply (Columbus, OH)
Professional Beauty
and 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)
Taiff (Miami, FL)
Ultimate Beauty Companies (Huntington Park, CA)
Vision of Mission, Ltd. (Accra, Ghana)
Wizmet International (Lachine, Quebec)
Note: For a full list of PBA members by section,
please visit probeauty.org/directory.
PBA Distributor/Retail
Beauty Store Section
PBA is pleased to announce that
the Distributor/OTC Section of PBA
has been renamed the Distributor/
Retail Beauty Store Section to
encompass a broader range of the
professional beauty distribution
world. Everything else you know
and love about this section of PBA
will remain the same!
Questions about
the change?
Call us anytime at 800.468.2274.

PBA_fall08_nwslttr_singlepgs.ind11 11 11/20/08 10:44:28 AM

 Manufacturer/Rep Section
Manufacturer Member Profile:
Circle of Friends was started
with the mission of creating
a professional hair, bath and
body line for children, while
introducing them to a world of
styles and cultures. Founded
in 1995, Circle of Friends
became a PBA member in 2007. PBA
caught up with Eleanor Keare, president
and owner of Circle of Friends, this October
to ask about the behind-the-scenes work of
producing and distributing a professional
beauty product to a niche market.
1) What is the origin story
of Circle of Friends?
Circle of Friends (COF) was started in 1995
by a mom who was working for a contract
manufacturer. She saw a need for children’s
professional products. During her own
childhood, she moved every few years with her
father’s job, so she had the benefit of learning
first hand about many of the world’s cultures.
She wanted her own children and others to
have that same experience. The inspiration for
COF’s multi-cultural packaging was born! After
running the business for 5 years, she sold it
to an investor so that she could spend more
time with her family. That investor hired me at
the end of 2002 to run COF for him. In 2005,
I bought COF from him with the objective of
further expanding distribution and launching
innovative new products.
2) How successful has your innovative
line of children’s products been?
Circle of Friends is the leading children’s
line in the country. We are in more doors
than our competition and we offer the most
comprehensive product assortment. Our
salon/beauty supply business has grown
every year, up to 40%. Our sales success is
due to many factors. Our unique branding and
packaging attracts children and parents which
encourages trial. Our exceptional product
quality keeps them coming back for more. Our
trade partners appreciate our strong customer
service including communication, order turn
around and in-stock ratios.
probeauty.org
PBA_fall08_nwslttr_singlepgs.ind12 12
3) How wide is your
distribution? Where
could I buy a bottle of
Ana Banana Shampoo?
Our products are available
nationwide through salons,
spas and beauty supply stores.
In addition to our full service
distributors’ professional-only stores,
we are also available at Ulta Beauty
Brands and select Beauty First stores.
4) Do you have plans to expand In-salon marketing is also a big part of our
into other areas of the industry outreach program. We have a generous
or into other lines of back-bar and tester program for stylists, give
child-specific products? out extensive merchandising materials and
offer suggested planograms.
We launched our lice prevention system,
called Lice Defense, with two products 7) What advice would you give a
in 2007. They have been so popular; we manufacturer looking to start
launched two styling SKUs to the range this a line of beauty products that fits
year. We have several other new product a niche such as children’s beauty?
categories in development for launch in 2009.
We are very excited about them, but need to It takes time to grow distribution. We have
keep the details a secret at this time. a very loyal customer base, which we have
been building and nurturing since 1995. Don’t
5) Where do the names of your expect overnight success! Your product and
individual products, like Hans’ your brand must have a point of difference.
Oom Pah Pah Shampoo, come from?
8) Why are you a member of PBA?
We do extensive country research as part of
product development for each new product. It’s important to support our industry; a weak
It’s important that the character comes from a industry is bad for all businesses. We also
country that grows or represents the fruit that joined to take advantage of the membership
inspires the fragrance. The creative names discounts and networking opportunities.
(e.g. Oom Pah Pah Shampoo or Dragon Dance
Conditioner) are a result of our research. Visit circle-of-friends.com to learn more
about this pioneering beauty company and
6) How do you get the word to view their full product line. Know of a
out about your products member company you’d like to learn more
to your customers? about? Email marketing@probeauty.org with
suggestions for future member profiles!
We offer lots of 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 of blog reviews. We also
attend about a dozen trade shows each year.
COF works with PR firms to support new
product launches and special events.
11/20/08 10:44:46 AM
 11

Exclusive ISSE Join us for a SuperBowl Party

On Sunday afternoon, PBA will host a
Benefits for SuperBowl Celebration in the member lounge.
PBA Members Enjoy the biggest game of the year with
fellow members or just come over to view
some of those talked about commercials.
Free game day snacks and spirits will be
provided for all PBA members!

Calling All Exhibitors for Breakfast

January 31-February 2, 2009
Long Beach Convention Center, CA
PBA Members Lounge at ISSE
Looking for a quiet place off the show floor?
Stop by the PBA Member Lounge to rest, relax,
check your emails and grab complimentary
refreshments. Current PBA members are
welcome in the lounge – be sure to wear your
PBA Member Ribbon for entry (if you don’t
have one, we have one for you). Hours of
operation will be from 11am – 7pm on Sunday
and 11am – 2pm on Monday. Before 9am,
stop by the PBA booth located in the Arena for
a complimentary continental breakfast!
New PBA Manufacturer/Rep Members
May 1 – August 1
800-Pedi-Spa (Bentonville, AR)
AHNU (Petaluma, CA)
Angelfeet 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 of 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)
at the PBA Booth
All exhibitors are invited to join us for a
continental breakfast in the PBA booth at
ISSE, located on the Arena Floor. Grab a
cup of coffee and network with other ISSE
exhibitors from 7:30am – 8:45am on Sunday
and Monday. Learn more about how you
can become more involved in your beauty
industry trade association.
And of course, PBA members always receive a
discounted booth price, 300 lbs. free drayage,
40-60% discount on sponsorships and
advertising and two free, three-day tickets.
Contact PBA’s Membership Department for
more information about these ISSE events at
info@probeauty.org or call 800.468.2274.
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 Specific (New York, NY)
Sanzay Corp (Hialeah, FL)
Sterfon 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 full list of PBA members by section,
please visit probeauty.org/directory.
The 2008 Market
Shipment Study
Each year, professional hair product
manufacturers anonymously share their
data with an independent public accounting
firm who prepares a comprehensive market
overview of the industry. The data in this
study is available nowhere else—many
members feel the value of this study alone
pays for their membership.
PBA has released the mid-year 2008 Market
Shipment Study. If your company provides
information for the Market Shipment Study,
the study is complimentary; otherwise, PBA
Manufacturer members can purchase the
results for $500. The Market Shipment Study,
conducted two-times/year, showcases market
shipment information in categories such as
Hair Color, Haircare and Styling Products.
Coming in 2009—the first Market Shipment
Study for the Appliance sector!
To order the study, please email
info@probeauty.org or call
Membership at 800.468.2274 (480.281.0424).
July 19-21, 2009
Mandalay Bay Resort and Casino
Exhibit space is going fast!
Past exhibitors can go online to reserve space at
www.cosmoprofnorthamerica.com/exhibitor.
New exhibitors can download a 2009 Request
for Exhibit Space Form. If you have any questions,
please contact Eric Horn at 800.468.2274
(480.281.0424) x3431 or Toni Davis at x3443.

PBA_fall08_nwslttr_singlepgs.ind13 13 11/20/08 10:44:52 AM

 Salon/Spa Section

The Cutting Edge Mentor Program for Salons/Spas

“The 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 professionalism of the beauty industry, and to
fostering the growth of leadership and business skills
within our membership. PBA mentors bring their
expertise, passion, inspiration and dedication to help
fellow members!

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

visit to your business, if you will cover travel expenses.
PBA’s Cutting Edge Mentor Program volunteers include
these experienced and successful business owners:

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 for 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

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

please contact Teena Purdiman at 800.281.0424 (480.281.0424)
x3442, or email teena@probeauty.org.

Enter NAHA Online!

NAHA sets the standard for stylist achievement. A list of past winners
Need more
serves as a "who«s who" of influential beauty makers in North America. information
Ready to honor the work of stylists and tell your own story at NAHA on running a
successful
20? Applications are available for download at probeauty.org/naha photo shoot?
probeauty.org/
or enter online. Entries must be postmarked by February 2, 2009. naha/enter/
nahadvd

PBA_fall08_nwslttr_singlepgs.ind14 14 11/20/08 10:44:59 AM


PBA members receive two free,
t h re e - d a y t i c k e t s t o I S S E . Don’t miss PBA’s Complimentary
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 education
lined up for ISSE 2009.
New PBA Salon/Spa Members
May 1 – August 1
A Style Concierge, LLC (San Diego, CA)
About Faces (Santa Barbara, CA)
All 4 Show Hair Traffic 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)
Carolina’s Spa Group (Charlotte, NC)
Che-la Salon and Spa (Bloomington, IL)
Christina’s Salon (Pine Brook, NJ)
Coiffure NU (Gatineau, QC)
Collins and Co. Salons (Cincinnati, OH)
Confidence Beauty Salon and Spa (New York, NY)
Cutz and Color Salon and Spa (Pearl River, LA)
Distinque Salon and Spa (Pittsford, NY)
Diva Studio (Las Vegas, NV)
Elan Hair Studio (Brielle, NJ)
Entourage Hair Design (Indianapolis, IN)
Essentials Salon and Day Spa (Klamath Falls, OR)
PBA_fall08_nwslttr_singlepgs.ind15 15
How do I boost my retail in this economic climate?
Fresh and Co Salons (Edmonton, AB)
Gaia Microspa (Greendale, WI)
Goldwaves Salon and Spa (Fort Worth, TX)
Hair Master, Inc. (Manassas, VA)
Hey Good Look’n Salon (Lunenburg, MA)
Hollywood Glam Salon and Spa (Norman, OK)
Love and Makeup (Spencer, OK)
Mafe’ - 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)
Jan 31 - Feb 2, 2009
Long Beach Convention Center
Business Class at ISSE 2009!
Business Today Fast Fire Panel
Facilitated by: Cary O’Brien
of Cary O’Brien’s Design & Color Spa
Monday | 11:30am – 1:30pm
Back by popular demand!
Participate in a spirited
discussion with some of the
industry’s most successful salon
and spa owners and get advice
on how to tackle today’s tough
business issues.
How do I keep my team motivated?
Is now a good time to hire?
Come with questions for
the experts and get the
answers you need!
Saab Salon Spa (Ottawa, ON)
Salon 21 (Raleigh, NC)
Salon De Tay (Beaverton, OR)
Shelton’s Salon and Day Spa (Arlington, TX)
SoLuTion for 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 full list of PBA members by section,
please visit probeauty.org/directory.
11/20/08 10:45:04 AM
 Featured Benefit Provider

Affinity Insurance Services

877.738.6993
aon.com
available to salon/spa section only

Take advantage of Aon’s free insurance makeover for your salon or spa (no appointment necessary).

The salon and spa industry is constantly offering new services and products. This can expose your business to new risks that are not covered
by standard insurance policies. How do you know if your salon or spa’s coverage is up-to-date and complete? Aon Affinity Commercial Services
has a unique insurance program designed exclusively to meet the needs of salon and spa owners like you that can help. Our comprehensive
program offers you one-stop shopping with:
• Combined Property, General Liability and Professional Liability coverage tailored to your business and level of 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 before and after a loss.

A salon or spa’s free insurance makeover starts with a free review. Let us analyze your current and future business insurance needs, uncover
any costly gaps or overlaps and recommend ways to better manage your risks. You’ll also receive a free, no-obligation rate quote for the
coverage you need.

The coverage descriptions above are general in nature and for informational purposes. To see the actual terms of coverage, please
refer to the policy. If there is any conflict between the description contained above and the terms of the policy, the terms of the
policy shall control. Aon Association Services, a Division of Affinity Insurance Services, Inc. in CA (Insurance License #0795465),
MN & OK a Division of AIS Affinity Insurance Agency, Inc. in NY a Division of AIS Affinity Insurance Agency.

Do Your Part. Recycle.

Professional Beauty Association

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

probeauty.org

PBA_fall08_nwslttr_singlepgs.ind16 16 11/20/08 10:45:05 AM