Nails Big Book 2005-06

2005 Industry Statistics 速

2005 Industry Statistics

ALL NEW: Nail tech earnings up 14% Client attitudes revealed (They like you!)

Pedicure services still expanding All-new demographic and industry data

Sponsored by

Sponsored by

Salon service volume down 6%

2005 Industry Statistics

Sponsored by

industry outlook and trends

What Goes Up Must Come Down Maybe it’s true that what goes up must come down, and so it is this year with the nail salon business. For the first time in the last several years, the nail business, after three steady upward years, has taken a little downturn. The slowdown was expected by most industry-watchers, especially in light of the economic influencers we’ve seen this year. We project a downturn this year in salon service business of about 6%. We attribute it to a variety of things: gas prices; rising interest rates, which affect homeowners and salon owners alike; and natural disasters and the fear they inspire that it could happen anytime, anywhere.

Service prices remain fairly strong, and the growth in spa services continues to fuel a robust segment. However, the falloff in the number of salons, combined with a decline in the number of active technicians has caused us to move our projections southward.

This publication is very special to the team at NAILS. We know that our market data is cited not only by leaders in our own industry, but by the media at large. This year, we were quoted by bigwigs such as the Los Angeles Times, the New York Times, CNN.com, FoxNews, National Public Radio, as well as a number of regional publications delving into the nail industry.

The Big Book is the most referred-to issue we publish all year.

And as seriously as we take that responsibility, we are equally concerned about preparing data for individual nail technicians and salon owners. We know that you may need this information to determine whether to expand your business, or decide what new services to offer, or whether you would even consider moving to another state to practice nails. We hope we’ve served you well. Let me know. I know I learn something new every year in preparing this issue for publication.

Nail Salon Services Market Size How we develop these projections:

These statistics are derived from surveys conducted by the NAILS Magazine staff. This year our primary research tool was a survey that mailed to a selection of readers in the August 2005 issue. We put the names of all respondents into a sweepstakes to win $1,000. We received 1,987 responses, giving us a 99% confidence level that they are accurate plus or minus 3 points (that means that if we say something is 30%, we are 99% sure that it is actually 27%-33%). That kind of response allows us to project the survey data across the universe of nail technicians.

We used other survey tools this year as well, including a survey to full-service salon owners and several surveys to our TrendSpotters e-mail focus group. Where we thought the survey respondents did not reflect the general population of nail professionals, we note that or we note that we gathered the data from alternative sources (most significantly, the ethnic breakdown of survey respondents skews differently than the industry at large; see page 70 for more information on this).

The analysis of the statistical material was done by the editorial and research staff of NAILS at Bobit Business Media.

We have a variety of methods, some public, some proprietary, that we use to assure that the data is accurate and a true picture of the nail industry at large. We compare our data to other published information, third-party sources, manufacturer and distributor data, and other known data.

We extend a very special thank you to OPI Products, whose sponsorship of this section allows us to continually offer serious, credible research.

Thank you to all of you who took the time to respond to our very long survey. Your participation means the Big Book will be a resource for generations of nail technicians to come. — Cyndy Drummey, publisher

$7.5

(figures in billions) $7

$6.84

NAILS’ market size projection figures are estimates derived from our own research. They are $6.53 calculated (in a proprietary way) based on the number of salons in the U.S., the number of nail $6.5 technicians per salon in each state, the average $6.45 service prices of four key salon services, and an $6.43 estimate of the number of practicing nail techni$6.34 cians. The final figure represents, to the best of $6 our ability, the total amount of money spent in 2001 2002 2003 2004 2005 the U.S. in nail salons for services. The amount does not include earnings by technicians or salon Figure represents total dollar volume, in billions, owners, tips, cost of products, or any other busispent by salon customers on salon services. ness expenses.

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celebrating global beauty celebrando la belleza mundial célébrons la beauté globale celebrando la bellezza globale weltweit schönheit zelebrieren

Color shown: OPI Red. Available only at fine salons. For more information call 800.341.9999 or visit www.opi.com. ©2005 OPI Products Inc.

statistics

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5 1

Trends to Watch

Someone’s in the Kitchen.

Nail techs love their brands, but they also love doing a little manufacturing themselves. One of the fastest-growing services this year is customized natural nail care (see page 76). Nail techs are using off-the-shelf products, and then going to the cupboard shelf to make their own specialized service products. Look for more food-themed service products as the Margarita Manicure gets more exotic.

Poblano Pepper Pedicure anyone?

2

How Old Do I Look?

Never ask a woman her age? Women who have banished their crow’s feet don’t want their hands giving their little secret away. It’s back in vogue to lie about your age. Boomer clients fuel the antiaging services business, and it extends to hands.

Look for products that lighten, soften, plump up, and minimize … as long as it takes the years off. And clients will pay, so don’t underprice this service. With your professional-grade products, you are offering the fountain of youth.

3

As California Goes, So Too the Nation.

With a quarter of the nation’s nail techs, California makes headlines whenever it spotlights the salon industry. Although the governor vetoed proposed new legislation on nail salons, salon safety is front and center. Other states have already adopted guidelines reinforcing pedicure safety, for example, rather than waiting for legislated guidelines. If the nail industry doesn’t want laws inspired by Paula Abdul, we better come up with guidelines — and training — that ensure safer services.

4

Get Off the Dime and Get Online.

If the computer is the thing your kids use for homework and you use only to check your e-mail, you must be wearing shoulder pads and platform shoes. The resources available online are virtually unlimited. Need technical help? Find a nail tech troubleshooting blog. Out of monomer? Order product online 24 hours a day. Tired of your receptionist’s chicken-scratch? Get an automated appointment scheduling tool. Yellow Pages not working quite like they used to? Get yourself a website and make sure you come up when a potential customer Googles a salon in your neighborhood.

5

“Salon” Is So Passé.

Everyone might want to be a day spa, but not everyone is up to the word. As customers continue their love affair with all things spa-related, “nail salons” can’t make do with the same old offerings. You can’t just change your name from salon to spa. You also have to get rid of the dirty carpeting, the Nagel picture on your front window, and the smell of acrylic that hits you when you open your door.

“Spa” is a state of mind. Get into it.

68 NAILS 2005-2006 THE BIG BOOK

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MOISTURE REPLENISHING SYSTEM The essence of rich Avocado

EXFOLIATING CUTICLE TREATMENT AHA formula eliminates dry, rough cuticles while replenishing essential moisture and lipids.

NAIL & CUTICLE REPLENISHING OIL Restores moisture and lipids with antioxidant Vitamin E plus Avocado, Sunflower, Sesame and Kukui Nut oils.

Ideal for rough heels and elbows, too.

MOISTURE REPLENISHING LOTION

ENZYME SKIN THERAPY CLEANSER

Formulated with OPI’s Advanced Avocado Lipid Complex to revitalize, soothe and condition dry skin.

Encourages cell turnover and increases firmness in one quick cleansing step.

REPLENISHING LIP TREATMENT Treats lips to OPI’s ultramoisturizing Advanced Avocado Lipid Complex plus smoothing emollients and soothing Aloe Leaf extract. SPF 15*

REPLENISH YOUR SELF.

*Not available with SPF15 in Canada

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

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statistics

demographics These annual statistics provide us with an outline of the “average nail technician:” where she lives, her age, her time in the business. What they also tell us is that this business of nail care allows an unmarried woman with kids to have the flexibility and earning potential to work 34.5 hours a week.

That’s how these seemingly dry statistics can show us a real flesh and bone side of the industry. There were no huge shifts in demographic trends this year, just subtle variations. You’re working a little less per week, earning a bit more (How do the rest of us figure that out?!), and by all accounts, you’re enjoying it. We asked you last year whether you intended to stay in the nail industry at least five more years, and 94% of you said yes.

How long have you been doing nails?

8.6 years (average) one year or less

14.5%

2-3 years

17.0%

4-5 years

11.7%

6-7 years

10.8%

8-9 years

7.3%

10+ years

38.7%

Are you licensed?

YES 96.4% NO 3.6%

Gender female male

95.6% 4.4%

ethnic breakdown Without a doubt, the thing outsiders seem to find most intriguing about the nail industry is the fact that it has become the career of choice for many Vietnamese.

Practitioners who classify themselves as Vietnamese or whose surnames indicate Vietnamese background make up 38% of the overall industry. This year we show that the Vietnamese “phenomenon” is not exclusive to the West Coast, although the region is home to 53.7% of the overall Vietnamese population, from rural areas to the deep south, the face of the nail industry is increasingly diverse.

Ethnic Breakdown of All Nail Techs African American/Black 8% Vietnamese

Regional Dispersion of Vietnamese Nail Techs

Mountain Western

53.7%

1.9%

38%

East

Midwest

14.1%

8.9%

41%

South

21.4%

70 NAILS 2005-2006 THE BIG BOOK

7%

Caucasian

Hispanic Korean 2% Other 4%

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Which title best describes your position?

Where do you live?

East

18.1%

salon owner (doing nails)

33.5%

Mountain

2.6%

nail technician/booth renter

32.2%

Midwest

19.0%

nail technician/employee

25.7%

South

20.7%

salon manager/nail dept. manager (doing nails)

5.7%

West

39.6%

salon owner (not doing nails)

0.8%

student

1.5%

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

0.6%

Unmarried with kids

Home Life*

16.1% Married with no kids

How old are you?

12.4%

38.1

Married with kids

50.4% 18.3%

(average)

Unmarried with no kids

2.8%

Average age nail technician was when she/he started doing nails*

59%

29.5

of nail techs were over 25 when beginning their nail career*

Highest level of school completed Some high school

2.2%

No response

How many nail technicians are in your salon?

2.3

(average)

1 tech

52.0%

Finished high school

28.8%

2 techs

20.1%

Some college

45.6%

3 techs

11.1%

Finished college

20.4%

4 techs

6.6%

Graduate school

3.0%

5+ techs

10.2%

*Source: 2004-2005 Big Book

NAILS 2005-2006 THE BIG BOOK 71

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Beauty Defined... by four acrylic systems that work with you to express your artistry Clarité Odor & Tack-Free System

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Absolute Liquid & Powder Technology

Extraordinary performance & precision color

An innovative hybrid formula that delivers extraordinary performance with a smooth, fluid application you’ll love!

In six powder shades, plus new Reconstruction Pink for flawless nail makeovers.

Traditional Acrylic System For total sculpting control

This tried and true acrylic system features a moderate set time allowing for total sculpting control.

Four creamy, natural-looking powders produce soft, sophisticated pinks and whites.

Competition Formula 3000

Competition colors and performance

Fast-setting formula glides on smoother and thinner without sacrificing strength and flexibility. Five acrylic powder shades provide custom color options destined to become your salon’s signature of perfection.

Call 800.341.9999 or visit www.opi.com © 2005 OPI Products, Inc.

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statistics

salon services

What services are offered in your salon?

2005

2004

2003

2002

2001

manicures

98%

97%

99%

99%

99%

pedicures

96%

96%

94%

96%

92%

acrylics (any type)

87%

89%

90%

94%

92%

paraffin dips

79%

82%

83%

86%

85%

nail art

74%

78%

74%

75%

78%

waxing (for hair removal)

73%

68%

70%

72%

74%

hair care

61%

52%

58%

n/a

n/a

gels/UV light-cured systems

48%

50%

49%

51%

44%

fiberglass

42%

44%

49%

57%

54%

facials

39%

35%

37%

43%

38%

massage

38%

33%

33%

51%

39%

makeup application

38%

30%

33%

36%

37%

skin care

37%

33%

36%

52%

40%

silk wraps

37%

42%

47%

52%

50%

colored/design acrylics

36%

32%

40%

35%

n/a

UV top coat service

34%

40%

35%

60%

55%

nail jewelry

28%

36%

34%

51%

54%

reflexology

26%

21%

21%

32%

30%

powder/glue extensions

25%

28%

32%

73%

60%

tanning

22%

21%

21%

25%

26%

aromatherapy treatments

22%

20%

21%

47%

36%

ear piercing

20%

17%

19%

29%

29%

airbrushing

20%

25%

27%

31%

30%

ear coning

11%

7%

6%

n/a

n/a

permanent makeup

11%

1%

n/a

n/a

n/a

body wraps

10%

1%

n/a

n/a

n/a

non-waxing hair removal

5%

5%

4%

n/a

n/a

water therapies

3%

1%

2%

5%

n/a

nutritional analysis/weight control

2%

2%

2%

8%

6%

glamour photography

1%

2%

2%

3%

6%

body piercing

1%

2%

1%

4%

6%

What is the most interesting product you’ve tried in the last six months?

Our readers’ most-frequently cited services and products: Colored or glitter acrylic, gels, a new nail strengthener, Creative’s RawEarth SpaPedicure, Drip Dry by OPI, ProLinc’s Callus Remover, nail art pens, colored gels, dried flowers with gel overlay, ibd’s Intense Seal, Manicure by OPI, Star Nail’s Acrygel, Backscratchers’ Extreme system, Creative’s Cuticle Remover, Essie’s Smoothies, Estelina’s Pedicure line, LeChat Powder Gel, a new polish line, a new acrylic line, Entity Nail Couture.

74 NAILS 2005-2006 THE BIG BOOK

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structure PERFECT FOUNDATION TIP

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Natural • Full Well

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PERFECT FOUNDATION TIP

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• Same design as Perspective, in white • For a dramatic pink and white nail

• Same design as Dimension, in natural • For a natural-looking two tone nail

• For a dramatic, high-profile arch at any length • The longest tip in the OPI Collection

• Unique three-prong well fits all nail plates

• Ultimate Smile Line

Natural • Full Well

White • Half Well

Natural • Half Well

White, Natural, Clear • No Well

Call 800.341.9999 or visit www.opi.com. ©2005 OPI Products Inc.

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statistics

salon services

What services did you add this year?

32%

What services did you discontinue this year?

12%

of respondents say they launched a new service in 2005.

26%

Unique/custom manicures or pedicures . .

16%

Gels, including colored gels . . . . . . . . .

11%

Colored acrylics . . . . . . . . . . . . . . . . . .

7%

Hot stone manicures or pedicures . . . .

6%

Facials . . . . . . . . . . . . . . . . . . . . . . . .

6%

Massage . . . . . . . . . . . . . . . . . . . . . . .

5%

Airbrush tanning . . . . . . . . . . . . . . . . .

4%

Eyelash extensions or tinting . . . . . . . .

4%

Body wraps and body treatments . . . . .

3%

Ear coning/candling . . . . . . . . . . . . . .

3%

Paraffin dips . . . . . . . . . . . . . . . . . . . .

3%

Reflexology . . . . . . . . . . . . . . . . . . . . .

2%

Silk wraps . . . . . . . . . . . . . . . . . . . . . .

2%

Tanning . . . . . . . . . . . . . . . . . . . . . . .

2%

Waxing . . . . . . . . . . . . . . . . . . . . . . . .

76 NAILS 2005-2006 THE BIG BOOK

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

of respondents say they discontinued a service in 2005.

Acrylic services . . . . . . . . . . . . . . . . . . . .

24%

Gels . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13%

Silk wraps. . . . . . . . . . . . . . . . . . . . . . . . . .

9%

Massage therapy . . . . . . . . . . . . . . . . . . . .

8%

Tanning . . . . . . . . . . . . . . . . . . . . . . . . . . .

6%

Paraffin . . . . . . . . . . . . . . . . . . . . . . . . . . .

5%

Wraps . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5%

Airbrushing . . . . . . . . . . . . . . . . . . . . . . . .

4%

Facials . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4%

Fiberglass wraps. . . . . . . . . . . . . . . . . . . . .

4%

Specialty manicures or pedicures. . . . . . . .

4%

Colored acrylics. . . . . . . . . . . . . . . . . . . . .

3%

Ear piercing . . . . . . . . . . . . . . . . . . . . . . . .

3%

Microdermabrasion . . . . . . . . . . . . . . . . . .

3%

Hot oil manicures . . . . . . . . . . . . . . . . . . . .

2%

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Fireflies

Purple with a Purpose

Blue My Mind

Sonic Bloom

Dominant Jeans

Dazzle Me

Azure for Sure

Significant Other Color

Do You Lilac It?

Flashbulb Fuchsia

Pink Before You Leap

That’s Berry Daring

Ladies & Magenta-men

Charged Up Cherry

Bright Lights - Big Color

Atomic Orange

It’s a Bird, It’s a Plane, It’s OPI!

TOTALLY Tangerine

Electric Eel

Go On Green!

Very vivid, beautifully bright shades for fingers and toes

Gargantuan Green Grape

Megawatt?!

Need Sunglasses?

Call 800-341-9999 or visit www.opi.com. © 2006 OPI Products Inc.

Up Front & Personal

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statistics

salon services What percentage of your business does each service category account for?**

How would you describe your salon?

other artificial / enhancements services

Full-service salon

52.1%

Nails-only salon

18.9%

Day spa

13.0%

nail art 3.5% 6.5%

other services

11.6%

34.7% acrylics

18.5%

Home-based salon

8.6%

Nails and tanning salon

2.8%

Mobile salon

2.5%

Resort/hotel salon/spa

1.0%

School

0.7%

Destination spa

0.2%

Health club

0.2%

25.2%

manicures/natural nail services

pedicures **Source: 2004-2005 Big Book

We asked full-service salon owners about their feelings on nail care. Although an overwhelming majority indicated that nail care was as popular as ever, they frequently didn’t have the staff to support the services. Nearly 30% of “full service” salons say they do not offer nail care. Their reasons vary from having inadequate space (25%) to not wanting to compete with nails-only salons (11%).*

Have you seen the demand for nail care increase or decrease in the last 12 months?

71.1%

have seen an increase

Have you found it difficult to find

qualified nail technicians to staff your nail department?

59.9% yes say

* Source: survey to behindthechair.com users January 2005

78 NAILS 2005-2006 THE BIG BOOK

Will you be increasing the number of nail care services your salon offers in the next 12 months?

44.1%

say

yes

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MAKE

GERMS AFRAID.

OPI SWISS CLEAN SYSTEM professional salon sanitation

A SYSTEM OF PRODUCTS TO KEEP SKIN AND NAILS THEIR CLEANEST AND YOUR SALON & SALON INSTRUMENTS VIRTUALLY GERM-FREE. SWISS CLEAN. BECAUSE A SALON SHOULDN’T BE A SCARY PLACE FOR YOUR CLIENTS – ONLY FOR GERMS. N.A.S. 99 NAIL ANTISEPTIC SOLUTION • SWISS BLUE ANTIBACTERIAL LIQUID HAND SOAP • SWISS GUARD ANTISEPTIC HANDWASH GEL SWISS DEFENSE DETERGENT DISINFECTANT • SWISS ARMOUR INSTRUMENT DISINFECTANT IMMERSION SOLUTION • SWISS CLEAN IMPLEMENT SOAKER

Call 800.341.9999 or visit www.opi.com. ©2005 OPI Products Inc.

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statistics

specialty services* How many pedicures do you offer (average) on your salon menu?

2.3

offer 1

10.4%

offer 2

29.7%

offer 3

32.4%

offer 4

9.9%

offer 5 or more

Would you say that pedicures are increasing or decreasing in popularity at your salon? dicures staying the same 20.9% decreasing

1.8%

13.5%

We do not offer pedicure services

4.1%

Do you have a “pedicure spa/throne” in your salon?

77.3%

increasing

Yes: 59%

How many pedicure spas/thrones do you have in your salon?

2.0 (average)

Are you familiar with the term “pipeless” as it refers to pedicure spa technology?

Yes: 61.8%

If you do not have one, do you plan to add one?

Yes: 51.8%

If you do have one, do you plan to add additional ones?

Yes: 33.9%

* Source: NAILS readership surveys 2004 and 2005

80 NAILS 2005-2006 THE BIG BOOK

Do you use an electric file for any services?

Yes: 63%

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.

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How many lines of polish do you carry for use in the salon?

How many polish lines do you carry for retail sale to clients?

1

15.3%

1

31.1%

2

24.7%

2

31.6%

3

34.9%

3

23.5%

4

12.6%

5

3.7%

4

6.1%

more than 5

8.8%

5+

7.7%

Do you currently work as a manufacturer’s educator?

Yes: 6.7% No: 93.3%

Yes: 20.4% No: 79.6% Have you ever used a competition liquid or powder in the salon?

How many different acrylic brands do you use? more than four or several four 4.0%

three

one

2.0% 12.1% 41.7%

40.2%

Have you ever competed in a nail competition?

Yes: 66% No: 34% Do you ever use the liquid from one manufacturer with the powder from another?

Yes: 42.5 No: 57.5% Would you ever consider using a new acrylic system?

Yes: 90.4 No: 9.6% two NAILS 2005-2006 THE BIG BOOK 81

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E X F O L I AT E R E V I TA L I Z E RENEW PROTECT

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 291g / 10.2 Oz. Net Wt., Effervescent Soak 250g / 8.8 Oz. Net Wt., Rejuvenating Serum 50 mL / 1.7 Fl. Oz., and Finishing Butter SPF 15 250 mL / 8.5 Fl. Oz. Also included, Avoplex速 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.

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EXFOLIATE SKIN RENEWAL SCRUB

REVITALIZE EFFERVESCENT SOAK

RENEW REJUVENATING SERUM

PROTECT FINISHING BUTTER

Natural Sugar Scrub with Emollients

Hand Soak with Minerals and Brighteners

Age-defying Hand Serum with Grape Seed and Licorice Extracts

A Skin Massage and Moisturizing Butter with SPF 15

A luxurious, restorative first step toward more beautiful hands! Natural ultra-fine waterdissolving 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.

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.

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.

A luxurious, professional massage and finishing butter! Envelopes 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 youthfullooking skin. A luxury for the entire body!

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

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

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

Call 800.341.9999 or visit www.opi.com. ©2005 OPI Products Inc.

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

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statistics

service prices Nail industry-watchers monitor service prices like an investor watches the Dow. In an industry that has become increasingly commoditized, rising prices are a sign of life for our business, and a hopeful sign for the future. You might think of the nail business like the pocket calculator business. When pocket calculators first came out they were expensive, bulky, and only for the well-to-do. So too with acrylic nails. But as the popularity of the service grew, and more service providers entered the market, prices leveled, then plunged. If you can’t find a $20 full set in your community, you aren’t looking very hard. But low prices aren’t the death knell.

Today you can do a multitude of things to increase — and justify — your higher prices. Add value by providing the little extras that make the salon experience unique; provide an ambiance that says “We’re worth it.” The point is: Don’t complain about other salons’ prices; set your own and earn them.

Average Service Prices 2005

2004

manicure

$17.16

$15.78

pedicure

$32.45

$30.84

acrylic full set (tips with overlay)

$40.23

$38.94

acrylic fill (tips with overlay)

$24.36

$22.97

full set/sculptured acrylic

$45.39

$44.76

fill/sculptured acrylics

$26.68

$25.62

wraps/full set (any kind, over tips)

$40.78

$40.97

gels/full set (any style)

$45.36

$43.15

colored acrylics (full set)

$46.54

$46.07

pink-and-whites (full set)

$46.30

$45.56

paraffin dip

$9.83

$8.52

polish change

$8.23

$7.93

$12.03 $23.32 $38.92

Service prices 10 years ago

$21.05

Service Prices by Salon Type manicure

pedicure

full set

fill price

OVERALL average

$17.16

$32.45

$40.23

$24.36

Full-service salon

$17.09

$32.89

$41.23

$24.51

Nails-only salon

$15.54

$29.80

$36.60

$22.77

Mobile salon

$13.70

$27.60

$37.00

$24.28

Home-based salon

$15.11

$26.82

$32.20

$20.48

Day spa

$20.17

$39.39

$49.97

$28.74

Resort/hotel salon/spa

$24.62

$39.38

$47.50

$30.00

84 NAILS 2005-2006 THE BIG BOOK

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Making a Splash!

new!

hydrating body splash

Refresh your skin with new AVOJUICE Hydrating Body Splash! Packed with conditioners and hydrating fruit essences, it delivers pure moisture and softness. Wear each one alone or layered over its coordinating AVOJUICE Skin Quenchers for double the hydration!

Available in four fruit-tastic flavors

cran & berry coconut melon grapefruit peach Call 800.341.9999 or visit www.opi.com. Š2005 OPI Products Inc.

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statistics statistics

clients

Who are your clients?

By gender

Loyal? Not necessarily. 29.8% say they always go to the same salon, and 50% say they usually do. 20.2% go wherever and whenever it’s convenient, regardless of experience with the salon.

We asked both salons and clients about their habits.

female

male

93.6% 6.4%

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

16.5%

every other week

72.5%

every three weeks

6.9%

once a month

3.1%

every other month

0.3%

less than every other month

0.7%

By Age* 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%

Why do clients NOT patronize a salon?** I prefer to manicure my own nails

36.1%

Too expensive

28.2%

Too much maintenance/upkeep

14.4%

It’s too much of an indulgence

9.7%

Other

6.9%

I don’t care about how my nails look

4.0%

No salon near where I work/live

0.7%

87.4% of women 18-45

years old say they have gotten their nails done at a salon.**

91.1% say they sometimes do their nails at home.**

How many clients do you see a week?

58.7%

4.6%

Tuesday

6.7%

9.9%

Wednesday

3.6%

11.5%

Thursday

2.3%

29.1%

Friday

4.8%

24.3%

Saturday

13.8%

19.1%

Sunday

98.5%

0.2%

N/A

1.3%

*Source: 2004-2005 Big Book

(average)

t?* r s r u e i u o s * o is y e bu s y osed? i n e th en cl Wh alon Wh salon s

Monday

No response **Salon consumer habits survey 2005

30.6

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FINISHFABULOUS! INSTANTLY SEALS, SHINES AND PROTECTS ALL ARTIFICAL NAILS AND ACRYLIC NAIL ART WITHOUT FINAL BUFFING!

NEW FROM OPI!

FINISHING RESIN

BEFORE

AFTER

Finishing has never been faster or easier. One quick stroke of LIQUIDBUFF FINISHING RESIN seals, shines and protects acrylics, gels, wraps and acrylic nail art. The easy-to-use formula air-dries to an ultra-shiny finish that not only shines, it seals enhancements to help prevent lifting – without final buffing!

Call 800.341.9999 or visit www.opi.com. © 2005 OPI Products Inc.

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Page 88

Alone at Last

Alpine Snow

Altar Ego

A Peony for Your Thoughts

Bride’s Bouquet

Bubble Bath

Here’s to Us!

Honeymoon Sweet

Hopelessly in Love

I Do! I Do!

Infatuation

Kyoto Pearl

Romantic Retreat

Room Service

Rose Petals

Rosy Future

Samoan Sand

Second Honeymoon

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Thirty-six sheer and light shades, including twenty new hues, to tint nails with soft, delicate color.

Catch the Garter

Let’s See the Ring

Silk Negligee

Coney Island Cotton Candy

Cuddle by the Fire

Getting Acquainted

Hawaiian Orchid

Heart Throb

Matched Luggage

Mimosas for Mr. & Mrs.

Passion

Pink-ing of You

Privacy Please

Sweet Heart

Sweetie Pie

Sweet Memories

Tickets to Paradise

Tutti Frutti Tonga

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

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statistics statistics

income & buying habits Your earning ability depends on a variety of factors, including (but not limited to, as the lawyers say) where you live, how old you are, how long you’ve been doing nails, what kind of salon you work in, and, obviously, what kind of compensation system your salon uses. We sought to understand some differences in salon type this year, and have included a chart on job title by salon type. You see by this that day spas operate rather differently than, say, nails-only salons. These factors are an additional tool you can use to evaluate your own salon’s compensation setup, or assist you as you prospect for places to work.

What commission percentage do you receive on services? more than 60%

55.7% (average)

Average weekly income

$619.52 $150 or less

9.8%

$151-$250

9.7%

$251-$350

9.7%

$351-$450

10.2%

$451-$550

14.9%

$551-$650

11.7%

$651-$750

6.7%

$751+

27.3%

8.3%

56%-60%

24.1%

51%-55%

11.0%

46%-50%

37.2%

less than 45%

10.0%

no response

Which best describes your compensation system?

9.4%

salary only

average commission is: Overall 55.7% Full-service salon 56.8% Nails-only salon 55.9% Day-spa 53.4%

job title by salon type Full-service salon Nails-only salon Mobile-salon Home-based salon Day spa Resort/hotel salon/spa

7.6%

salary plus commission

13.8%

straight commission

56.3%

tiered commission

8.9%

This data reflects only respondents who were not booth renters.

t nt en me ) m t t r a ls ar r ils) e ep nai to ep ls) na ye d c d o l a l g g i r p a in ai in ail nt s) r/n t do do r/n ing n co /em ( / e ail e r n t g r r n g e o a n a e e o t i a e n (n n n g ic n (d ren end t ma ger hn ow ow doin ma ger h c t en p n n n a e n a t e t o d o o o n l l o l n o l d o l i B in Sa ma Sa Sa (n Stu Sa ma Na

26.5% 11.7% 22.7% 15.3% 54.0% 75.0%

90 NAILS 2005-2006 THE BIG BOOK

47.4% 8.0% 12.7% 8.0% 23.0% 12.5%

4.0% 6.8% 0.0% 0.0% 10.6% 0.0%

0.8% 0.0% 0.0% 0.0% 0.9% 12.5%

19.9% 72.3% 64.6% 76.7% 9.7% 0.0%

0.6% 1.2% 0.0% 0.0% 0.0% 0.0%

0.8% 0.0% 0.0% 0.0% 1.8% 0.0%

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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.

69.5% 10.7% 13.3% 6.5%

How much do you spend a month on supplies?

How often do you purchase supplies?

$204.22

less than once a month

once a month

$174.02

2004

$198.93 2003

2005

15.2% once a week

more than 1x/week

33.4% 14.9%

How much is your monthly booth rental? $329.23

1.7%

2004

$294.50

34.8%

$321.08 2003

2005

twice a month

How many different distributors do you use? (average)

2.4

Use one distributor

8.2%

Use two distributors

Where do you shop for nail care supplies?

I shop in a professional beauty supply store.

82.7%

I order over the phone from my dealer’s catalog or deal sheets.

37.7%

A distributor’s sales consultant comes to the salon and takes my order.

23.8%

I shop in an open-to-the-public beauty store.

12.0%

I order online from my dealer’s catalog.

11.5%

I buy products at trade shows.

10.2%

I order from an online-only distributor.

9.4%

38.4%

I buy direct from the manufacturer.

8.6%

Use three distributors

27.0%

For some items, I buy from non-traditional places that don’t carry traditional professional nail supplies. 2.9%

Use four distributors

8.9%

Use five or more distributors

6.2%

No response

I shop from a mobile or van dealer who comes to my salon.

1.7%

I shop at the drugstore or other general store.

1.3%

11.3% Respondents were asked to choose top two sources.

NAILS 2005-2006 THE BIG BOOK 91

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statistics

business Although more than half of professional nail techs say they retail, from a customer’s perspective, you’re not retailing. We asked customers if their nail care professional ever suggested products for home use. 42.8% said their nail professional had recommended take-home products.

49.5%

of nail techs

receive a commission or other incentive for retailing.

79.8% of nail techs retail

products for clients’ at-home use.

What products are retailed in your salon? $ nail polish $ hand lotion $ nail strengtheners/treatments top/base coats $ cuticle treatments $ hair care nails files or buffers quick-drying products skin care toe rings tanning products makeup/cosmetics boutique items jewelry adhesive/glue candles personal implement kits/implements vitamins/nutritional supplements clothing

92.5% 90.0% 87.5% 82.4% 76.0% 64.1% 60.0% 46.9% 46.9% 46.1% 37.9% 34.0% 33.4% 32.6% 30.0% 28.3% 16.5% 11.2% 8.3%

$ signifies top five best-selling retail items.

60.1% use a computer for their business

Which business functions do you do online?

How many hours per week (on average) do you access the Internet?

Less than five hours a week

51.6%

5-10 hours

29.5% 11.3%

look at new products

94.3%

11-20 hours

do research

70.5%

More than 20 hours a week

order new products

54.1%

surf different company websites

53.3%

participate in chats and forums with other salon professionals

12.6%

Do you use the Internet to gather information on the nail industry?

92% say YES

92 NAILS 2005-2006 THE BIG BOOK

81.2% 94.5%

7.6%

of all respondents have Internet access. of respondents who use a computer for their business have Internet access.

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The original.

The legend.

Available in five custom formulas.

Call 800-341-9999 or visit www.opi.com. Š2006 OPI Products Inc.

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statistics statistics

regional analysis 2004

NAIL SALONS

LICENSED TECHNICIANS

2005

% Change

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

922 182 90 177 963 1,485 222 2,641 4,023 2,742 180 56 1,298

3.6% 1.1% 0.0% 1.7% 8.6% 7.4% 5.2% 2.3% 5.9% 4.5% 1.7% -3.4% -0.8%

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

3,015 498 801 852 7,197 11,708 1,250 8,675 16,553 10,166 940 175 7,248

-6.2% -2.7% -0.2% -1.6% -3.6% -0.1% -3.0% 1.5% 0.6% -3.7% 2.0% -3.8% -3.6%

Eastern Total

14,362

14,981

4.3%

70,057

69,078

-1.4%

Colorado Idaho Montana Nebraska North Dakota South Dakota Wyoming

844 221 166 289 56 51 101

897 228 180 298 58 54 108

6.3% 3.2% 8.4% 3.1% 3.6% 5.9% 6.9%

7,788 1,059 472 957 132 34 333

6,891 1,293 488 913 140 34 326

-11.5% 22.1% 3.4% -4.6% 6.1% 0.0% -2.1%

Mountain Total

1,728

1,823

5.5%

10,775

10,085

-6.4%

Illinois Indiana Iowa Kansas Michigan Minnesota Missouri Ohio Wisconsin

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

2,296 942 320 477 1,778 621 910 1,787 996

9.5% 13.5% 3.9% 7.0% 11.5% 8.9% 7.3% 2.9% 12.9%

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

9,185 3,442 621 2,243 13,656 3,062 4,946 13,181 1,886

-4.4% -8.3% 4.9% -12.0% -3.9% -0.8% 13.3% -4.9% -7.0%

Midwest Total

9,312

10,127

8.8%

75,610

72,392

-4.3%

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

771 447 4,075 1,927 549 904 438 1,700 649 699 805 172

8.1% 4.0% 8.5% 12.4% 4.6% 11.5% 8.7% 7.7% 4.7% 6.4% 7.8% 2.4%

1,218 1,711 44,576 5,912 2,318 1,364 1,508 8,198 5,638 2,452 7,240 490

1,265 1,679 42,120 5,711 2,243 1,400 1,620 7,808 5,284 2,317 6,831 495

3.9% -1.9% -5.5% -3.4% -3.2% 2.6% 7.4% -4.8% -6.3% -5.5% -5.6% 1.0%

South Total

12,125

13,136

8.3%

82,625

78,773

-4.7%

Alaska Arizona California Hawaii Nevada New Mexico Oregon Texas Utah Washington

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

116 1,049 8,291 218 422 371 646 5,083 330 1,245

4.5% 12.4% 5.2% 13.5% 14.4% 8.2% 6.8% 8.3% 4.4% 8.4%

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

382 8,662 85,316 1,821 4,618 1,368 17,469 21,476 1,911 7,284

-5.9% 16.2% 3.0% 2.9% 2.2% -5.5% -4.5% -7.0% 3.4% -0.2%

West Total

16,593

17,771

7.1%

149,005

150,307

0.9%

U.S. Total

54,120

57,838

6.9%

388,072

380,635

-1.9%

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

2004

2005

% Change

The information contained in this chart has been verified as of October 15, 2005 by NAILS’ research staff and editorial department. The source of the information for the number of beauty salons and nail salons is InfoUSA lists (2005), the state boards of cosmetology, and NAILS estimates.

94 NAILS 2005-2006 THE BIG BOOK

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Got sparkle?

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Call 800-341-9999 or visit www.opi.com. Š2006 OPI Products Inc.