Nails Big Book 2004-05

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®

2004-2005 Industry Statistics

ALL NEW: Salon service volume swells 4.8% 10-year growth patterns of service prices 5-year trends in services,income All new client demographics “Did school prepare you?” [all new data] Sponsored by

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EXFOLIATE SKIN RENEWAL SCRUB

Natural Sugar Scrub with Emollients

A luxurious, restorative first step toward more beautiful hands! Natural ultra-fine water-dissolving sugar crystals gently exfoliate away dryness to leave hands smooth and glowing. Deep penetrating olive oil derivative produces natural AHA within skin to speed cell turnover for younger-looking hands. Requires no mixing or activator. Water rinse, or treat hands to the revitalizing and nourishing benefits of OPI Effervescent Soak.

Natural Ultra-Fine Sugar Crystals • Hydrating Emollients • Oleyl Lactate • Aromatherapeutic essences of lemon, lime, orange, juniper, coriander, pineapple, melon, geranium, heliotrope, peach blossom and treemoss

REVITALIZE EFFERVESCENT SOAK

Hand Soak with Minerals and Brighteners

A spirited, effervescent soak that brightens nails and revitalizes hands! The nutrient-rich infusion of minerals helps restore proper electrolyte balance and purifies skin to leave hands feeling refreshed. Natural emollients nurture, soothe and hydrate overworked skin for a younger-looking appearance.

Natural Emollients • Magnesium • Aromatherapeutic essences of mandarin orange, lime & basil

RENEW REJUVENATING SERUM

Anti-aging Hand Serum with Grape Seed and Licorice Extracts

Turn back the clock for younger looking hands! This clinically proven, powerful single-step professional treatment infuses skin with natural ingredients, including Licorice Extract, to help reduce the visible signs of aging on the hands. Deep penetrating olive oil derivative produces natural AHA within skin to speed cell turnover for younger-looking hands. Nourishes skin with Vitamins A, C and E, plus Grape Seed Oil, known for its powerful antioxidant protection.

Kojic Dipalmitate • Licorice Extract • Oleyl Lactate • Vitamins A, C & E • Grape Seed Oil • Aromatherapeutic essences of lavender, eucalyptus and camphor

PROTECT FINISHING BUTTER

A Skin Massage and Moisturizing Butter with SPF 15

A luxurious, professional massage and finishing butter! Envelops skin in a protective layer of silky emollients to combat dryness. SPF 15 protects skin from the damaging effects of the sun, while discouraging the return of age spots for more youthful-looking skin. A luxury for the entire body!

SPF 15 Sunscreen • Hydrating Emollients • Aromatherapeutic essences of lavender, eucalyptus and camphor

INTRODUCTORY KIT Expand your service menu and your profits! Introductory kit contains everything you need to get started, including all four Manicure by OPI products: Skin Renewal Scrub 291 g / 10.2 Oz. Net Wt., Effervescent Soak 253 g / 7.7 Oz. Net Wt., Rejuvenating Serum 59 mL / 1.95 Fl. Oz., and Finishing Butter SPF 15 259 mL / 8.7 Fl. Oz. Also included, Avoplex® Exfoliating Cuticle Treatment 30 mL / 1 Oz., Avoplex Nail & Cuticle Replenishing Oil 15 mL / .5 Fl. Oz., OPI Brilliance File, Instructional Brochure, Tabletop Instructions, Tent Card, and Manicure by OPI DVD.

For more information about Manicure by OPI, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

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E X F O L I AT E

•

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R E V I TA L I Z E

•

RENEW

SO SIMPLE, IT’S PERFECT

Call 800.341.9999 or visit www.opi.com. ©2004 OPI Products Inc.

•

PROTECT

statistics

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industry outlook and trends Is There Such a Thing as an “Average Nail Technician”?

Who, exactly, is the “average nail technician”?

When we put together these statistics, we’re creating a snapshot of the industry, averaging out the information on thousands of nail technicians into a composite,so that we can develop a general understanding of who makes up our thriving industry. Maybe you find that your own situation resembles the “averages”published here, maybe you’re at the high or low end in certain areas.

This year we wanted to show the real people behind these statistics and see “the numbers”on living breathing nail technicians. So in the introduction to each section,we asked one survey respondent to share her personal information to give these numbers a personal touch, a real nail technician, someone whose information is used to figure out these numbers in the first place.

In our constant attempt to get more information each year, we’ve stuffed more stats in these 32 pages than ever before. We’ve seen a few shifts in the recurring information and watched some other areas barely budge. The growth in the size of the industry is the biggest jump we’ve seen in quite a few years.This is attributable to the 5% increase in the number of nail technicians, despite the number of salons being flat, as well as healthy increases in service prices in the four key areas we evaluate.

As always, I thank all the people who responded to our survey to make these statistics possible.And

to George Schaeffer and everyone at OPI, whose generosity in sponsoring this statistics section, enables us to publish the most detailed picture of the nail industry possible. I told George about our “personal statistics”theme this year and he says he couldn’t agree with the idea more.“Our industry is made up of so many unique individuals, who, together, make us strong.The information on each person makes a difference in how we understand the industry as a whole,”says George.

How We Gather the Data, Develop the Numbers The statistics this year are based on surveys conducted by the NAILS Magazine staff.This year our primary survey tool was a survey that mailed to a selection of readers in the August 2004 issue.We received more than 2,300 response. That kind of response allows us to project the survey data across the universe of nail technicians.

As always, I welcome your comments on the material in the Big Book.This publication is the most referred-to issue we publish all year. It’s quoted, copied, referenced, studied, and dog-eared, and we take very seriously our responsibility to provide reliable data. But most seriously is how we take the effect the information can have on you personally,in your own small business.It can be the basis for your business plan, it can show you that you are ripe to expand or are due for a raise, or it might just make you feel good that you’re an “average nail technician” and help you set new goals for yourself.

— Cyndy Drummey,publisher

Nail Salon Services Market Size

$8

(figures in billions) How we develop these projections: NAILS’ market size projection figures are estimates derived from our own research.They are calculated (in a proprietary way) based on the number of salons in the U.S., the number of nail technicians per salon in each state, the average service prices of four key salon services, and an estimate of the number of practicing nail technicians.The final figure represents, to the best of our ability, the total amount of money spent in the U.S. in nail salons for services.The amount does not include earnings by technicians or salon owners, tips, cost of products, or any other business expenses.

22 NAILS 2004-2005 THE BIG BOOK

$7

$6.84 $6.45

$6.44

$6.53 $6.34 $6

$5 2000

2001

2002

2003

2004

Figure represents total dollar volume, in billions, spent by salon customers on salon services.

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Friar, Friar, Pants on Fire!

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I’m Not Really a Waitress

5Trends to Watch

1 2 3 4

Miles of Pedicures.

We will continue to see the further specialization of pedicure services, with some salons turning most of their service menu over to foot care options.Pedi spa chair marketers can look forward to a great year,as salons looking for an edge line the walls with pedicure thrones to entice clients.

Big Apple Red

Red, Red Rhine

That’s the Rub.

OPI Red

New manicure and pedicure services will revolve around the massage,rather than the nail care.Nail techs who learn reflexology, Shiatsu,or Swedish massage techniques will be earn substantially more from their smiling clients.

P&L Doesn’t Stand for Play & Leisure.

Finally,nail salons get serious about the business side of nails.We’ll see more salon owners (and independent nail technicians) talk about “cost of goods”and “bottom line,”as they learn how to price services smarter,allocate dollars for their time,and start tracking their business’s health.

Cajun Shrimp

Products Drive the Service.

SoHo Nice to Meet You

Peru-B-Ruby

More than ever,the products themselves will dictate services.Nail technicians will customize services — in natural nail care and enhancements — that revolve around the products.You’ll see warm weather pedicures and winter pedicures,for example,each using a unique product line.Savvy marketers will help salons customize menus to go along with their products,providing service “recipes,” pricing suggestions,and even client handouts.

5

Self-Policing.

As state licensing regulations come up for sunsetting,the industry will see that there is no rubber stamp of approval on the cosmetology arts,and will have to show that not only is education and licensing needed,but so is self-policing.Look for a healthy discussion of the true challenges the industry faces and — hopefully — real solutions that will drive a new era in salon safety.

Ravishing reds...

➤

Call 800-341-9999 or visit www.opi.com. © 2005 OPI Products Inc.

NAILS 2004-2005 THE BIG BOOK

23

statistics

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demographics

How long have you been doing nails? 9.1 years (average)

A silhouette shows a general shape,but not detail.These statistics show a general shape with details being averaged out.The average nail tech is required to be licensed in her state,is female,38 years old,and has been doing nails a little over nine years.She’s married and has kids,has attended some college,and is either Caucasian or Vietnamese.She is either a booth renter or owns the salon herself (but still handles clients) and she’s most likely to be found in the west or the southern part of the U.S.

one year or less

Our “snapshot”of a real nail technician is Rinda Wech,who lives in Topeka, Kansas,and works in a salon with nine other nail technicians.She’s 35,latina, married with kids,and she’s a booth renter.She’s been doing nails 13 years.

4.7%

2-3 years

17.7%

4-5 years

13.5%

6-7 years

9.0%

8-9 years

7.5%

10+ years

47.6%

Are you licensed?*

YES 94.6% NO 5.4%

Gender Ethnicity

female male

These figures represent estimates by NAILS Magazine of the ethnic breakdown of nail technician licensees in the U.S.These estimates are developed based on a survey of the U.S.licensee list, as well as interviews with industry experts, school administrators, and state board representatives.

African American/Black 8% Korean 2% Asian/other 1%

39%

2003

2002

95.7%

93.8%

95.9%

4.3%

6.2%

4.1%

which title best describes your position?

Hispanic 7%

2004

salon owner (doing nails)

38.4%

nail technician/booth renter

32.0%

nail technician/employee

22.2%

Vietnamese salon manager/nail dept.manager (doing nails)

5.0%

salon owner (not doing nails)

1.3%

student

0.8%

salon manager/nail dept.manager (not doing nails)

0.3%

43%

Caucasian

24 NAILS 2004-2005 THE BIG BOOK

* Based on state licensing data

2:29 PM

1 tech

40.8%

2 techs

19.6%

3 techs

14.0%

4 techs

9.2%

5+ techs

16.4%

Page 25

Hawaiian Orchid

11/1/04

How many nail technicians are in your salon? 2.6 (average)

You’re a Pisa Work

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where do you live?* 17.8% 2.7%

Midwest

19.2%

South

22.4%

West

37.9% Italian Love Affair

Mountain

Pompeii Purple Japanese Rose Garden

East

How old are you? 38.6 (average)

Unmarried with kids

Home Life

16.1% Married with no kids 12.4% 50.4%

Pistol Packin’ Pink

Unmarried with no kids

Argenteeny Pinkini

18.3% 2.8% No response

Highest level of school completed Some high school

3.5%

Finished high school

31.0%

Some college

45.6%

Finished college

15.7%

Graduate school

4.2%

La Paz-itively Hot

Married with kids

Precious pinks...

➤

Call 800-341-9999 or visit www.opi.com. © 2005 OPI Products Inc.

NAILS 2004-2005 THE BIG BOOK

25

statistics

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salon services What services are offered in your salon?

2004

2003

2002

2001

2000

manicures

97%

99%

99%

99%

95%

pedicures

96%

94%

96%

92%

88%

acrylics (any type)

89%

90%

94%

92%

84%

paraffin dips

82%

83%

86%

85%

63%

nail art

78%

74%

75%

78%

68%

waxing (for hair removal)

68%

70%

72%

74%

58%

hair care

52%

58%

n/a

gels/UV light-cured systems

50%

49%

51%

44%

33%

fiberglass

44%

49%

57%

54%

51%

silk wraps

42%

47%

52%

50%

43%

UV top coat service

40%

35%

60%

55%

48%

nail jewelry

36%

34%

51%

54%

43%

facials

35%

37%

43%

38%

32%

skin care

33%

36%

52%

40%

n/a

massage

33%

33%

51%

39%

25%

colored/design acrylics

32%

40%

35%

n/a

makeup application

30%

33%

36%

37%

powder/glue extensions

28%

32%

73%

60%

airbrushing

25%

27%

31%

30%

26%

reflexology

21%

21%

32%

30%

19%

tanning

21%

21%

25%

26%

22%

aromatherapy treatments

20%

21%

47%

36%

ear piercing

17%

19%

29%

29%

24%

ear coning

7%

6%

n/a

non-waxing hair removal

5%

4%

n/a

glamour photography

2%

2%

3%

6%

4%

nutritional analysis/weight control

2%

2%

8%

6%

6%

body piercing

2%

1%

4%

6%

5%

body wraps

1%

n/a

permanent makeup

1%

n/a

water therapies

1%

2%

5%

n/a

26 NAILS 2004-2005 THE BIG BOOK

54%

29%

P o w a o $ n c h i

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Passion

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How many different PEDICURE SERVICES do you offer: 2.3(average)

1

Offer one

2

28.0%

Offer two

36.8%

3

Offer three

4

Pink-ing of You

Pedicure services continue to offer a versatile,profitable service, which is why so many salons offer at least two different pedicure options,with prices ranging from $27.03 to $43.87.Pedicures are not unique in how they can be customized,but nail technicians have shown enormous creativity in the options they offer.

20.2%

Offer four

7.4%

5

Offer five or more

o

6.3%

No response or offer none

1.3%

Honeymoon Sweet

Samoan Sand

Hopelessly in Love

Do you use an electric file for any services? 63.2% YES No longer are electric files a symbol of a lazy nail technician or an assembly-line salon.What used to be called a drill is now used by even old-time filing purists.The electric file allows a nail technician to speed up some services,refine others,and work with a high level of efficiency on both natural and artificial nails.

Bubble Bath

Rosy Future

What percentage of your business does each service category account for? nail art other services 3.5% 11.6% 6.5%

Coney Island Cotton Candy

other artificial/ enhancements services

34.7% acrylics

18.5% manicures/natural nail services

Shy sheers...

25.2%

pedicures ➤

Call 800-341-9999 or visit www.opi.com. Š 2005 OPI Products Inc.

NAILS 2004-2005 THE BIG BOOK

27

statistics

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service prices

W y o

Service prices are how we take our industry’s pulse.You expect prices to continue to rise year after year,keeping pace with inflation and a competitive environment,but in one key area — acrylic services — prices are literally flatlined.Due to enormous competition in this area,prices have dropped over the course of 10 years and now the average price of an acrylic full set is almost 7% less than it was 10 years ago.Conversely,prices on natural nail services like manicures and pedicures have enjoyed robust growth,up 43% and 36%, respectively,over a 10-year window.We’ve added new service categories this year,showing you clearly that expanded service menus offer pockets of profitability that can be sensibly used by nail technicians.

Our “snapshot”nail tech is Kim Myers of Simi Valley,Calif.The southern California market she works in is as competitive as ever,but Kim’s prices remain solidly average.Her menu:basic manicure:$15;pedicure:$27;full set/acrylics with tips:$45,full set/sculpts:$45; fill/acrylic tips:$25,fill/acrylic sculpts:$27; colored acrylics:$55 full/$35 fill;full set/pink-and-whites:$45;backfill/pink-andwhites:$30;wraps/full set:$45;paraffin dip:$7;and polish change:$12

AVERAGE SERVICE PRICES $41.83 $38.92

$38.40

$37.97

$37.33

$25.90

$27.49

$24.57

$26.77

$24.06

$21.36

$22.10

$20.52

$20.91

$14.11

$14.47

$40

$30 $22.01 $20.74

$23.32 $21.05

$39.82

$38.81

$20.89

$20

$12.03

$12.10

$12.69

$12.88

$10.97

$10 1994

28 NAILS 2004-2005 THE BIG BOOK

1995

1996

1997

1998

1999

2000

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Page 29

Cara Mia Crimson

11/1/04

You Ottaware Purple

What is the price range of your pedicure services if you offer more than one?

$27.03 to $43.87 (average) AVERAGE SERVICE PRICES pedicure

$30.84

acrylic full set (tips with overlay)

$38.94

acrylic fill (tips with overlay)

$22.97

full set/sculptured acrylic

$44.76

fill/sculptured acrylics

$25.62

wraps/full set (any kind, over tips)

$40.97

gels/full set (any style)

$43.15

colored acrylics (full set)

$46.07

pink-and-whites (full set)

$45.56

paraffin dip

$8.52

polish change

$7.93

10 YEAR CHANGE

$42.12 $39.64

$38.75

$30.62

Melon of Troy

It’s All Greek to Me

$15.78

Jewel of India

manicure

$38.94

$30.84 $29.83

Don’t Socra-tease Me!

ACRYLIC FULL SET

6.9%

PEDICURE

35.5%

ACRYLIC FILL

10.8%

MANICURE

43.8%

Kennebunk-port

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$23.02

$23.22 $22.97

$21.99

$15.67 $14.18

$15.42

$15.78

Not So Bora-Bora-ing Pink

$27.58

Colossal colors!

2001

2002

2003

2004 ➤

Call 800-341-9999 or visit www.opi.com. © 2005 OPI Products Inc.

NAILS 2004-2005 THE BIG BOOK

29

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C hoi ces, Choose OPI. Six nail enhancement systems.

Endless possibilities!

For more information about OPI professional products, or to find an OPI professional education workshop in your area, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

Call 800.341.9999 for more information. Š2004 OPI Products Inc.

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c hoices, c hoices.

Chemistry You Can Count On! FOR EXTRAORDINARY PERFORMANCE & PRECISION COLOR

COMPETITION FORMULA

Advanced Formula Acrylic System FOR FAST-SET PERFORMANCE & CUSTOM COLOR

Liquid & Powder System FOR SOFT, SOPHISTICATED PINKS AND WHITES

For today’s Spa-salon environment!

ADVANCED ODOR-FREE ACRYLIC TECHNOLOGY

GEL

O V E R L AY

&

SCULPTING

SYSTEM

The ultimate in speed and precision ONE SYSTEM – A MULTITUDE OF SERVICE OPPORTUNITIES!

A quantum leap in nail wrap technology!

• SUPERIOR STRENGTH • UNMATCHED CLARITY • ULTIMATE FLEXIBILITY

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C hoi ces,

Choose OPI’s complete Brush Collection for endless artistry!

For more information about OPI professional products, or to find an OPI professional education workshop in your area, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

Call 800.341.9999 for more information. Š2004 OPI Products Inc.

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c hoices, c hoices.

COMPETITION 3000 BRUSHES HIGH-PERFORMANCE SPEED AND ACCURACY • High-quality Russian Kolinski Natural Red Sable bristles • Designed for speed and accuracy for precision applications • Elegant chemical-resistant hardwood handles with unique Patented no-roll design - Competition 3000 Edge #7 - Competition 3000 Oval #7 - Competition 3000 Wedge #8

- Competition 3000 Point #8 - Competition 3000 Concave #10

Brush shown: Competition 3000 Concave #10

COMPETITION 3000 DESIGN BRUSHES THE ART OF DETAIL • High-quality Russian Kolinski Natural Red Sable bristles • Designed for detailed artistic acrylic applications • Elegant chemical-resistant hardwood handles with unique Patented no-roll design - Competition 3000 Designer #1 - Competition 3000 Striper #000

Brush shown: Competition 3000 Designer #1

RUSSIAN KOLINSKI NATURAL RED SABLE BRUSHES PROVEN PERFORMERS FOR ALL ACRYLIC APPLICATIONS • High-quality Russian Kolinski Natural Red Sable bristles • Elegant chemical-resistant black handles with a unique Patented no-roll design • Extensive size range: Petite Fine Point #4 to Royale Pointe #12 - Petite Fine Point Brush #4 - Petite Flat Edge #4 - Golden Oval #5 - Golden Point #6

- Golden Edge #6 - Grand Kolinski #7 - Grand Pointe #9 - Royale Pointe #12

Brush shown: Grand Kolinski #7

AMERICAN RED SABLE BRUSHES ECONOMY AND PERFORMANCE! • High-quality Natural American Red Sable bristles • The most economically priced brushes in the OPI line • Ideal for the student - Round Red Sable Brush #5R - Flat Red Sable Brush #5F

Brush shown: Flat Red Sable Brush #5F

UNIVERSAL GEL SYSTEM BRUSH DESIGNED FOR EXACTING GEL APPLICATIONS Made with long-lasting synthetic fibers, this oval-shaped brush is specifically designed for efficient applications with MicroBond Gels. Unique handle doubles as an orangewood stick.

- Universal Gel System Brush #6

Brush shown: Universal Gel System Brush #6

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C hoi ces,

Choose OPI. Six nail tip styles.

Endless possibilities!

For more information about OPI professional products, or to find an OPI professional education workshop in your area, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

Call 800.341.9999 for more information. Š2004 OPI Products Inc.

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c hoices, c hoices.

STRUCTURE

THE PERFECT “FOUNDATION” TIP White • Natural • Clear - No Well - Instant Smile Line - Most flexible clear tip in the industry

VAULTED

HIGH-PROFILE ARCH TIP Natural • Full Well - For a dramatic, high-profile arch at any length - The longest tip in the OPI Collection

LINEAR

ELEGANTLY TAPERED TIP Natural • Full Well - For sleek, graceful nails

EXPANSION

SHEER, FLEXIBLE-FIT TIP Natural • Full Well - Unique three-prong well fits all nail plates

PERSPECTIVE

SPORT-LENGTH TIP Natural • Half Well - Same design as Dimension, in natural - For a natural-looking two-tone nail

DIMENSION

SPORT-LENGTH TIP White • Half Well - Same design as Perspective, in white - For a dramatic pink and white nail

statistics

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clients & retail

Who are your clients?

The more you know about your clients, the better you can serve them.That’s why we’ve been so earnestly gathering information on them this year. If you look at your clientele more carefully, you might find new and better ways to serve them. If every other salon is closed on Mondays, is it an opportunity for you to be open? If few salons are catering to the post-graduate age group of 21-25, could you customize services that might attract them and carve out a niche for yourself in the process?

BY GENDER

male6.4% female 93.6% 40

35

30

25

"2003

"2002

"2001

BY AGE

40

35

30

25 "2003

Our “snapshot”nail tech is Julie Schneider of Nashotah,Wis.Her clientele is 100% female,breaking down like this:3% girls under 12,4% girls 13-20,30% women 36-45,and 50% women 45+.On average,her clients come to the salon every other week for services, and she’s closed Saturday and Sunday.She sees 35 clients per week on average,and works 40 hours a week.

"2002

"2001

girls (under 12)

1.9%

girls (13-20)

5.6%

women 21-25

9.9%

women 26-35

19.4%

women 36-45

28.5%

women 46+

28.6%

no response

6.1%

How many clients do you see a week? 34.8 (average)

On average, how often do clients come in for services? weekly

16.5%

every other week /every two weeks

72.5%

every three weeks

6.9%

once a month

When is your salon closed?

Monday

58.7%

3.1%

Tuesday

6.7%

every other month

0.3%

Wednesday

3.6%

0.7%

Thursday

2.3%

less than every other month

Friday

4.8%

36 NAILS 2004-2005 THE BIG BOOK

Saturday

13.8%

Sunday

98.5%

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What products are retailed in your salon? * nail polish

98.2%

hand lotion

88.5%

nail strengtheners/treatments

88.4%

47.2% of nail

top/base coats

84.2%

techs receive a

cuticle treatments

73.3%

quick drying products

62.2%

nails files or buffers

61.8%

commission or other incentive

adhesive/glue

46.5%

personal implement kits/implements

36.1%

boutique items

34.4%

makeup/cosmetics

32.8%

hair care

11.1%

vitamins/nutritional supplements

10.0%

clothing

5.9%

skin care

4.2%

tanning products

3.5%

jewelry

3.4%

toe rings

0.5%

candles

0.5%

for retailing.

80.3% of nail techs retail products for clients’ at-home use.

WHAT IS YOUR NUMBER-ONE RETAIL BEST SELLER?

What is your busiest day for business?

Monday

4.6%

Tuesday

9.9%

Wednesday

11.5%

Thursday

29.1%

Friday

24.3%

Saturday

19.1%

Sunday

0.2%

No response

1.3%

1.nail polish

52.1%

2.nail strengtheners/treatments

18.0%

3.hand lotion

9.2%

4.other

7.2%

5.hair care

4.3%

6.cuticle treatments

4.1%

7.top/base coats

3.9%

8.implements

1.2%

% represents the number of respondents who said it was their best-selling retail item

➤

* Source: 2003-2004 Big Book

NAILS 2004-2005 THE BIG BOOK

37

statistics

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income & buying habits You earn it;you spend it.Money makes the world go ’round.Your earnings are up 9% over last year,thanks most likely to decent increases in service prices.You’re spending a bit more on supplies,and spreading the wealth around to more than three distributors.As the distribution landscape has changed so much over the years,we wondered whether nail technicians felt that had more or less choices.Although to get all their shopping done,they need to seek out more sources,most seem pleased with the choices and variety.

Average weekly income $541.05

We asked our “snapshot”nail tech Sherie Works of Dayton, Ohio,about the earnings and expenditures in her business.She’s a booth renter,averaging $345 per week in income.She pays $260 per month for booth rental and provides all her own supplies,including tools and equipment.On average,she spends $50-$75 per month on nail supplies between professional supply stores,mail order,trade shows,and the Internet.

2004

5 Years Ago

$150 or less

6.9%

11.9%

$151-$250

11.7%

20.1%

$251-$350

8.8%

16.9%

$351-$450

11.5%

14.1%

$451-$550

14.6%

12.2%

$551-$650

9.4%

7.1%

37.1%

17.7%

$651+

Which best describes your compensation system? salary only

33.2%

salary plus commission

14.2%

straight commission

46.7%

tiered commission

5.9%

weekly earnings by region west mountain midwest south east

$636.97 $513.75 $511.32 $547.69 $521.13

weekly earnings by years in business

This data reflects only respondents who were not booth renters.

What commission percentage do you receive on services? 56.5% (average) more than 60%

11.1%

56%-60%

37.0%

51%-55%

14.1%

46%-50%

30.4%

less than one year 2-4 years 5-7 years 8-10 years 11+

$276.95 $435.79 $631.14 $598.28 $656.68

weekly earnings by age under 20 years old 20-29 30-39 40-49 50+

$255.00 $567.92 $690.39 $595.15 $578.33

weekly earnings by job description

less than 45%

4.4%

no response

3.0%

38 NAILS 2004-2005 THE BIG BOOK

nail technician/employee nail technician/booth renter salon manager/nail dept.manager (doing nails) salon manager/nail dept.manager (not doing nails) salon owner (doing nails) salon owner (not doing nails)

$462.93 $464.50 $681.23 $500.00 $731.74 n/a

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Do you purchase your own nail products?

Yes, I provide all my own supplies, including tools and equipment.

I provide some supplies, the salon provides some supplies.

The salon provides all my supplies, except my tools.

The salon provides all supplies, including tools and equipment.

average hours worked per week: 36.1

1

9.3%

Use two distributors

28.7%

3

29.3%

Use four distributors

18.1%

2

Use three distributors

4

How much do you spend a month on supplies? $234.11

$204.22

How many different DISTRIBUTORS do you use? 3.1(average) Use one distributor

68.8% 4.8% 17.1% 9.3%

2004

2002

$198.93 2003

How much is your monthly booth rental?

$329.23 2004

$321.08 2003

$288.42 2002

5

Use five or more distributors No response

13.7% 0.9%

What are your TWO main SOURCES for NAIL SUPPLIES?

HOW OFTEN DO YOU PURCHASE SUPPLIES?* less than once a month

once a month 14%

once a week

36.6% 19.5%

29.9%

twice a month

2004

2003

2002

Professional beauty supply store

87.0%

86.2%

84.2%

Mail order catalog

35.6%

34.2%

42.0%

Full service distributor’s sales consultant 19.3%

25.6%

23.0%

Direct from the manufacturer

14.9%

18.4%

19.8%

Open to the public beauty store

11.7%

11.5%

10.3%

Internet

9.3%

9.5%

16.0%

Trade show

5.0%

12.3%

7.8%

Mobile distributor

3.2%

3.7%

2.4%

Drugstore or other general store

0.6%

1.4%

3.0%

➤

*Source: 2003-2004 Big Book NAILS 2004-2005 THE BIG BOOK

39

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AVOJUICE Skin Quenchers

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statistics

regional analysis NAIL SALONS

LICENSED TECHNICIANS

2004

2003

890 180 90 174 887 1,383 211 2,581 3,798 2,624 177 58 1,309

871 181 102 158 857 1,333 205 2,534 3,740 2,588 165 55 1,227

2.2% -0.6% -11.8% 10.1% 3.5% 3.8% 2.9% 1.9% 1.6% 1.4% 7.3% 5.5% 6.7%

3,214 512 803 866 7,465 11,723 1,288 8,550 16,452 10,560 922 182 7,520

3,135 514 796 741 7,713 11,997 1,271 9,366 16,344 11,403 889 173 7,472

2.5% -0.4% 0.9% 16.9% -3.2% -2.3% 1.3% -8.7% 0.7% -7.4% 3.7% 5.2% 0.6%

Eastern Total

14,362

14,016

2.5%

70,057

71,814

-2.4%

Colorado Idaho Montana Nebraska North Dakota South Dakota Wyoming

844 221 166 289 56 51 101

838 241 172 286 52 55 104

0.7% -8.3% -3.5% 1.0% 7.7% -7.3% -2.9%

7,788 1,059 472 957 132 34 333

7,275 1,064 470 828 126 38 330

7.1% -0.5% 0.5% 15.6% 4.8% -10.4% 0.9%

Mountain Total

1,728

1,748

-1.1%

10,775

10,131

6.4%

Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Ohio Wisconsin

2,096 830 308 446 1,595 570 848 1,737 882

2,060 834 303 435 1,625 537 832 1,763 884

1.7% -0.5% 1.7% 2.5% -1.8% 6.1% 1.9% -1.5% -0.2%

9,610 3,752 592 2,550 14,207 3,087 4,367 13,866 2,029

8,164 4,529 727 2,523 13,000 2,519 4,367 10,714 2,033

17.7% -17.1% -18.6% 1.1% 9.3% 22.5% 0.0% 29.4% -0.2%

Midwest Total

9,312

9,273

0.4%

75,610

68,837

9.8%

Alabama Arkansas Florida Georgia Kentucky Lousiana Mississippi North Carolina Oklahoma South Carolina Tennessee West Virgina

713 430 3,757 1,715 525 811 403 1,579 620 657 747 168

703 426 3,728 1,648 525 800 405 1,535 622 682 949 177

1.4% 0.9% 0.8% 4.1% 0.0% 1.4% -0.5% 2.9% -0.3% -3.7% -21.3% -5.1%

1,218 6,865 44,576 5,912 2,318 1,364 1,508 8,198 5,638 2,452 7,240 490

1,202 1,086 40,993 6,707 2,310 1,264 1,507 7,675 4,080 2,653 7,715 566

1.3% 532.0% 8.7% -11.9% 0.3% 7.9% 0.1% 6.8% 38.2% -7.6% -6.2% -13.5%

South Total

12,125

12,200

-0.6%

87,779

77,759

12.9%

Alaska Arizona California Hawaii Nevada New Mexico Oregon Texas Utah Washington

111 933 7,882 192 369 343 605 4,694 316 1,148

110 915 7,905 190 353 340 614 4,559 320 1,072

0.9% 2.0% -0.3% 1.1% 4.5% 0.9% -1.5% 3.0% -1.3% 7.1%

406 7,455 82,870 1,770 4,520 1,448 18,287 23,100 1,849 7,300

233 7,320 79,664 1,754 4,331 1,386 17,806 22,821 1,846 6,861

74.1% 1.8% 4.0% 0.9% 4.4% 4.5% 2.7% 1.2% 0.1% 6.4%

West Total

16,593

16,378

1.3%

149,005

144,022

3.5%

U.S. Total

54,120

53,615

0.9%

393,226

372,563

5.5%

Connecticut Delaware District of Columbia Maine Maryland Massachusetts New Hampshire New Jersey New York Pennsylvania Rhode Island Vermont Virginia

% Change

2004

2003

% Change

The information contained in this chart has been verified as of September 20, 2004 by NAILS’ research staff and editorial department. The source of the information for the number of beauty salons and nail salons is InfoUSA lists (2004), the state boards of cosmetology, and NAILS estimates.

42 NAILS 2004-2005 THE BIG BOOK

➤

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INTRODUCING

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AbsoluteFX provides the maximum artistic solutions with the least number of powders to cut clutter, confusion and expense.

If you can imagine it, you can create it with AbsoluteFX!

Ask your Authorized OPI Distributor about AbsoluteFX Intro, Trial, SparkleFX and Mixing Kits! Intro kit contains an AbsoluteFX DVD featuring techniques from award-winning competition artist John Hauk!

For more information about OPI AbsoluteFX, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

Call 800-341-9999 ®2004 OPI Products Inc.

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statistics

schools We sought to understand more about the “school experience”of nail professionals and how prepared for salon work they felt upon graduation.We asked veteran nail technicians what they felt they knew (and didn’t know) when they were released into the working world and what products they used and whether they have stayed loyal to those.This data is from an e-mail survey to 300 professionals done in March 2004.

When you left school did you feel you knew enough about the variety of nail products that were available to you?

Which statements were TRUE for you when you finished school? (% of those that agree with the statement) 78% I wanted to learn more about the nail industry.

68% I wanted to continue taking classes to improve my technical skills.

60% I was concerned that I was still too slow to work on clients.

58% I felt nervous about working on paying clients.

52% I didn't know how much continuing education was available once I finished school.

50% I didn't know how to build a clientele on my own.

48% I had no idea how many products were available to professionals.

47% I felt I needed to know more about business.

45% I have taken two or more continuing education classes since graduation.

42% I was confident about starting my nail career.

40% I didn't know what other career options were available to me besides working in a salon.

23% I felt completely prepared to work in a salon for paying clients.

22% I didn't know how to go about finding a job in a salon.

18% My school helped us find jobs in salons and get started.

YES 25% NO 75% Do you remember which brand or which gel system you used in school?

Do you remember which brand or which acrylic system you used in school?

YES 87% NO 13% Do you still use that brand?

YES 32% NO 68%

YES 31% NO 69%

Do you still use that brand?

If you do not use that brand, why did you change brands?

61% It wasn't a good product;it didn't work well,

YES 53% NO 47%

it wasn't a name brand,it was hard to use.

If you do not use that brand, why did you change brands?

16% I no longer do acrylics;I've switched to

50% We didn't learn gels in my school.

14% It was an odorless system and I found

22% I found a better system.The gel system in school was inferior.

19% I don't do gels now.

44 NAILS 2004-2005 THE BIG BOOK

wraps or gels. it difficult to use.

5% The product is hard to find or not made anymore.

2% I just wanted to try different products.

7% Other reasons.

➤

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60 seconds from blah to ahhh.

JojobaGLO

60 second skin smoother for hands, feet and body

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Nail Envy Natural Nail Strengtheners Available in five custom formulas, each developed to treat a specific nail problem and all designed to help your clients’ nails grow longer and stronger.

With Nail Envy, the doctor is in!

Original Matte Sensitive & Peeling Soft & Thin Dry & Brittle

statistics

Prescription for Long, Strong Nails:

computers 63.7% advertise their business WHERE DO YOU ADVERTISE? yellow pages local newspaper direct mail school papers outdoor advertising (benches, billboards) websites (including referral sites) salon newsletter local magazines radio television

53.2% 52.9% 26.2% 24.9% 19.4% 16.1% 12.3% 12.3% 9.8% 4.0%

other

4.5%

have computer access* 78.5% have Internet access** 96.4% average time spent online per week* 5.3 hours

60.8% use a computer for their business FOR WHICH OF THE FOLLOWING FUNCTIONS DO YOU USE A COMPUTER?

Call 800-341-9999 or visit www.opi.com. © 2004 OPI Products Inc.

of those with computer access saying yes 46 NAILS 2004-2005 THE BIG BOOK

accessing the Internet

77.3%

creating promotional material

67.6%

managing client records

47.2%

managing inventory

26.7%

scheduling/booking (clients or staff)

28.2%

payroll

19.8%

*Source: 2003-2004 Big Book **Percentage of those with computer access saying yes

➤

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OPI For shine that’s nothing short of brilliant!

Green side (1000 grit) removes imperfections; white side (4000 grit) polishes nails to a dazzling brilliance.

Eliminates the need to use oil or buffing cream during buffing.

Use of oil or buffing cream will damage surface

Gentle on nails and cuticles.

4 usable sides!

Lasts twice as long!

Available in block and long buffer styles.

OPI Brilliance quickly and effortlessly delivers an incredible, high-gloss shine to natural and artificial nails, outperforming all other professional polishing files.

The final step in the nail finishing process, OPI Brilliance leaves nails with a long-lasting brilliance you and your customers will love.

Call 800-341-9999 or visit www.opi.com. Š2004 OPI Products Inc.

statistics

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quick study Every month we run a question by our readers to get a quick reaction.These tidbits were the result of several web polls we've done over the last 18 months.The figures are not subject to the same scrutiny the rest of our statistics are, but we thought the data was interesting enough to share.To participate in our monthly poll, visit our website at www.nailsmag.com.

When is your salon the busiest? 2 Daytime during the week

17%

Evenings during the week

22%

Weekends (both Saturday and Sunday)

20%

Saturday

37%

Sunday

1%

Other

3%

If you had a friend or relative planning on becoming a nail tech,how would you react? 4 55% 34% 4% 5% 2%

How many salons have you worked in? 1 34%

1

40%

2 to 4

26%

More than 4

How do you keep up to date 3 with the nail industry?

2% 3% 7%

By going to trade shows

25%

By reading industry publications such as NAILS

63%

All of the above

Encourage Reserve comment Discourage Enthusiastically discourage

How often do you RAISE your PRICES? 21%

Once a year

33%

Every two or three years

15%

Every four or five years

24%

Have never raised my prices

6%

7

Other

Other I try to attend a few classes a year

How strong have your retail sales been this year? 5 26% 19% 35% 19%

Enthusiastically encourage

Sales are up from the same time last year About the same as last year’s figures during this time Sales are down Don’t know

48 NAILS 2004-2005 THE BIG BOOK

Does your salon have a website? 6 39% Yes 26% No, but we’re planning on 35%

creating one soon No, we won’t have a website any time soon

Sources: 1. nailsmag.com poll, August 2004, 202 responses 2. nailsmag.com poll, April 2004,166 responses 3. nailsmag.com poll, September 2003, 150 responses 4. nailsmag.com poll, September 2003, 223 responses 5. nailsmag.com poll, August 2003, 72 responses 6. nailsmag.com poll, July 2003, 112 responses 7. nailsmag.com poll, July 2002, 72 responses ■

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T O E - TA L LY I N L O V E !

Call 800.341.9999 or visit www.opi.com. ©2004 OPI Products Inc.

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