2009 Winter

Season’s Greetings

News Makers

Education

Marketing Focus on Hair

Laser Experts

Meet

Photography

Share

Darryll Porter

Success Secrets

President and CEO, Hair Club

By Larry Oskin

pg. 4

pg. 17

pg. 18

The National Hair Journal

AVACOR FINED $50M VOLUME 12 NO. 52

Alameda, CA. 11/09 - A jury has returned a $50 million verdict in a class action lawsuit against Avacor, a hair-loss remedy that was marketed as an all-natural, clinically tested product. The lawsuit alleged that the marketers of Avacor hair regrowth products violated California law by making unsubstanti-

THE OFFICIAL PUBLICATION OF HAIR FITNESS , REPLACEMENT AND RESTORATION

ated, false and misleading statements in connection with the advertising and sale of Avacor. The lawsuit also alleged misbranding and illegal distribution of Avacor in violation of the law. The outcome against two defendants marked the second trial victory in the same class action for the plaintiff

Lexington Honored H1N1 Flu Buzz Spreads Boca Raton, FL. 11/09 - Lexington Intl, manufacturer of the HairMax LaserComb, was one of only 14 manufacturing exporting companies nationwide to receive the President’s “E” Award, which recognizes success in world markets and contributions to the U.S. economy. Presented to Lexington at the U.S. Commerce Building in Washington by U.S. Secretary of Commerce, Gary Locke and Florida Senator George LeMieux, the President’s “E” Award is the highest U.S. Government recognition any U.S. entity may receive for supporting export activity.

Secretary Locke stated: “Of particular note is your successful outreach to the international medical community to help establish credibility for HairMax LaserComb and reduce trade barriers associated with medical devices.” The President’s “E” Award was created by President John F. Kennedy in 1961 to recognize persons, firms, or organizations that contribute significantly to increasing United States exports. Now in its 10th year of operation, Lexington exports the HairMax LaserComb to more than 125 countries around the world.

Smartphone Consultations?

Murrieta, CA. 11/09 - Nearly eight in 10 Americans (78%) are interested in receiving healthcare services via their mobile device and many think offerings such as wireless monitoring and mobile exams could someday replace visits to the doctor, according to a recent study conducted by Harris Interactive. The study also found that nearly one in five (19%) would upgrade their existing wireless plan to participate, and 11% would consider switching wireless providers to receive medical services through their wireless device.

National Cancer Society Thanks Wig Donors Palo Alto, CA. 10/09 - The National Cancer Society held its 2009 Gala Event in the heart of Silicon Valley to honor four cancer survivors.

Janet Miller from ‘Hair Replacement by Janet,’ San Carlos, CA shared the story of her battle with Non- Hodgkin’s Lymphoma and was honored for her donation of 150 hairpieces.

Her company works closely with chemotherapy clients and is proud to have given many chemo clients their confidence, glamour and, in many cases, their lives back.

Janet thanks her corporate supporters included Follea, Nature’s Most Beautiful Hair™, who sponsored a table for 10 guests.

Scottsdale, AZ. 11/09 - More than 63% of Americans are worried that they themselves, someone in their household, or a close friend will fall victim to pandemic H1N1 influenza, commonly referred to as “Swine Flu,” according to a telephone poll of more than 1,000 US adults conducted by Ipsos Public Affairs.

Marketing Statistics, an online analysis group, reports another study by The Nielsen Company that revealed that Americans are taking steps they hope will prevent them catching the flu.

Most notable among these is purchasing hand sanitizers, sales of which have skyrocketed in the past six months. In the 24 weeks ending October 3, 2009, sales of hand sanitizers were $118.4 million, up 70.5% over the same period a year ago ($69.4 million).

How Far We’ve Come Thirteen years after The National Hair Journal began publishing; it has grown from a humble eightpage black & white newspaper to 28 pages in full color!

The content has changed too. Today, The Journal reports on new technologies, experimental therapies and the world of fashion.

It travels to medical and business conferences around the world.

It meets industry leaders to share their insights with Journal readers around the world. Despite the outward changes however, the Journal’s core mission remains the same; to give hairloss professionals the

Hair Club Expands Medical Network Boca Raton, FL 12/09 – Hair Club continues to expand its medical network. After extensive remodeling in Charlotte, Dr. Jonathan Ballon now offers hair restoration surgery to local clients. Dr. Duncan Simmons benefits from state-of-the-art medical offices in Kansas City which becomes the hair transplant procedure hub for the region. He will

lawyers. Alameda County Superior Court Judge Robert Freedman commented, “The court can and does take judicial notice of the fact that enormous sums of money are spent on personal care and grooming products” adding, “Into this lucrative market stepped a band of hucksters, to prey on the vulnerabilities of human nature and employing a colossal array of false, deceptive and fraudulent techniques cynically collected millions of dollars from deceived California consumers.”

Responding to the health risk in hair salons and spas, the Professional Beauty Association (PBA) and Barbicide® are working together to create an industry response program. Alan Murphy, President of King Research that makes Barbicide comments, “Our contagious disease experts and in-house researchers are key contributors to the program. We want to share that information with the beauty industry.” While the initial wave of the H1N1 flu this past spring was relatively moderate, President Obama has declared a national emergency to deal with the “rapid increase in illness.” For small businesses, particularly salons/spas, employee absenteeism from the flu can be very disruptive to business operations. Federal and state authorities have been urging small businesses to be proactive in flu prevention and preparedness. information they need to provide superior service to their clients and grow their business. It is regularly consulted by major news organizations both in the US and around the world. Private investors, manufacturers and salon owners find The Journal a vital business tool. It is not an exaggeration to say that The National Hair Journal has become the nervecenter of hair-management. The National Hair Journal was created as an industry resource and as we enter 2010, it remains a tool for hairloss professionals everywhere.

™

WINTER 2009

‘Going Rogaine’ Sarah Palin Jokes about the Vice President’s Hair Loss Washington DC, 12/09 - Sarah Palin fuelled speculation that she will run for the White House in 2012 by making a funny and self deprecating speech at a celebrity dinner at the Gridiron Club in Washington. The dinner is a Washington tradition and has been attended by many presidential hopefuls, including Barack Obama. Mrs. Palin, referring to her current book tour to promote her memoir, “Going Rogue” observed, “The view is so much better from inside the bus than under it.” Unable to resist a dig at VicePresident Joe Biden, who has thinning hair, Mrs. Palin added that if the election had turned out differently, “I could be overseeing the signing of bailout checks and VicePresident Biden could be on the road selling his book ‘Going Rogaine.” In US politics, it pays to have hair. Americans haven’t voted for a bald president since Dwight Eisenhower over 57 years ago.

The Wrath of Alpha Reductase Hollywood, CA. 11/09 – Captain James T. Kirk not only went where no man had gone before, he never lost his hair. Until he left the

Starship Enrerprise that is. That’s when his follicles reached warp speed and began to do their androgenetic thing. In November, William Shatner touched down in Hollywood to unveil a wax figure of a hirsute Captain Kirk at Madame Tussaud’s. They both looked great. There’s a man in Hollywood who knows the secret; and he isn’t a Klingon!

Très-Chic Introduced Affordable Ultra-Luxury Wigs

give consultations in Hair Club’s Des Moines, St. Louis and Springfield centers and clients will travel to Kansas City for their procedure.

Clients in the Seattle and Portland area also benefit from Hair Club’s expanding medical network. Dr. Robert Niedbalski now offers surgery at the Club’s Tukwila clinic which has added two full surgical suites. In McLean, Virginia, Hair Club Medical Group is offering hair transplant surgery with Dr. Samuel Botta.

The center is one of more than 95 Hair Club locations in the U.S.

Beverly Hills, CA. 12/09 - Follea has launched ‘Très-Chic,’ a more affordable line of wigs made from the same premium European hair used in their top of the line ‘Life/Style’ wig collection.

Follea president, Michael Leigh comments, “Our promise is “Nature’s Most Beautiful Hair” and that means a Follea woman should never have to compromise her look, whatever her reason for wearing hair. We want to offer demonstrably superior quality at every price point” Très-Chic is currently available in two short, manageable styles; the Gamine and the Pixie. Each comes in nine different TrueColor shades, including ‘Russian Gray’ a Follea specialty. Follea offers their hair through a growing global network of hair professionals. Their human hair product line includes wigs, topettes, hairpieces volumizers and fringes.

PK Walsh Finalist in Stevie Awards Needham, MA, 10/09 - PK Walsh, a hair replacement salon for women, was named a Finalist in the 6th annual Stevie Awards for Women in Business.

The Stevie Awards have been hailed as the world’s premier business awards. “We are thrilled to be recognized as a finalist in three competitive categories,” said Nikki

Walsh, president of PK Walsh. “We take great pride in creating an atmosphere that helps our clients and staff to thrive and we are committed to bringing the latest and greatest hair solutions to today’s women.” More than 1,100 entries were submitted for consideration.

Finalists were chosen by business professionals worldwide.

3 The National Hair Journal Winter 2009

F

R

O

M

T

H

In the last editorial - We talked about cross-marketing and the ways different hair loss solutions can work together. We also discussed new technologies like photobiostimulation, hair regrowth drugs and cell multiplication. I used myself as an example of someone who combines therapies to achieve the optimum results. Today, we want to write about technologies that can streamline your business. Once again, we aregoing to use our experience at The Hair Journal to illustrate some of the opportunities.

Talk is Cheap - Like many of you, we have done away with our old phone system and are currently experimenting with different VOIP (Voice over Internet Protocol) solutions. For long-distance calls, we use Skype. Now a 30 minute conversation to Paris or China costs only pennies! For important projects where face-to-face contact is important, we activate Skype’s video component so we can physically see and interact with the person on the other end. This is saving us a fortune in airline tickets. For our regular telephone traffic, we are currently using 8x8 Inc which gives us high quality calls plus a host of call management features for a fraction of what we were paying before. This is a fast-moving field and I’m not saying that these are our final solutions, but already they are delivering tangible benefits.

Saving Trees - Another problem we confronted was the massive amount of paper that flowed into our offices. We were drowning in press releases, newspaper clippings and documents of every description. The National Hair Journal has now gone digital! All incoming documents are scanned, analyzed and digitally filed. Unless we need to take a file to a meeting, we rarely see a sheet of paper. We have three scanning systems; a high-speed duplex scanner from Fujitsu for large documents, a Canon flatbed scanner for books and magazines, and a portable scanner from Neatworks that connects to a laptop to copy business papers and expense receipts when we are on the road. In the last 12 months, nothing has simplified and organized our workflow more than going digital!

Stop Your Finger Doing the Walking Dictation software is now very accurate and it types three times faster than you can. I dictate in the car, on planes, anywhere I have an idea.

No more Post-it notes or scraps of paper that get lost. If you are writing client notes by hand or typing them, take a look at voice-recognition software; it’s accurate, fast and it will get you home in time for dinner! We use Dragon NaturallySpeaking. There is a similar application for Mac users.

In this Edition we take you up close and personal with the 800 pound gorilla in the room.

Hair Club today is a different kind of animal to the one we interviewed over a year ago. It is owned, of course, by Regis, but the management team in Boca Raton operates independently and has pointed the company in a new direction.

The focus is on client service and CEO, Darryll Porter explains why in a candid and expansive

Letters to the

Editor Dear Editor, My name is Lisa Dresser and I’m from Fargo, ND. I just attended the “Cruising with the Stars” seminar. I had a wonderful time with fellow hair replacement specialists and educators. I’ve been in the business for at least 20 years and it’s been fun to see all the changes that have happened in the hair replacement industry, particularly, the women’s field. Presently, we have wonderful products at our finger tips that were not available years ago.

This was one of my favorite workshops because I was surrounded by people who are as passionate about what they do as much as I am, not to mention that the weather was beautiful and the food was amazing. The cruise allowed us up close and personal time with the educators; we could participate in

E

E

D

I

T

O

R

interview. Although the company is dedicating itself to client service, the backbone of the company is its advertising and marketing technology. Few businesses analyze their sales as rigorously as Hair Club and the benefits can be seen every month as the company expands its client services and operations.

Lasers in the Spotlight - light therapy continues to intrigue the hair loss market.

The dialogue has shifted from “Does it work?” to “What can I do for my business?” There’s a fork in the road. Turn left and you’ll meet people who still hesitate to offer laser therapy because they remain unconvinced that it can contribute significantly to their bottom line.

Turn right, and you meet people who are already generating extra revenue as well as scheduling meetings with a different class of client who would never have visited the salon for a “classic” hair loss consultation. We feature two laser articles in this issue to try and give you more insight into this important opportunity so you can decide if it’s time to put a toe in the water.

Salon Software -You now have more choices.

Korvue, an early pioneer, has grown and added sophisticated features that do everything but stir your coffee. Meanwhile, other nimble software developers have created simpler applications, designed for smaller salons, that are easy to learn and elegant to use. You’ll find them in the pages of The Journal. Whether you are a multi-location operator or a two-person boutique, I encourage you to road test these applications because time is the only asset in your business which is not renewable… and salon management software is going to save you a lot of time.

Looking Ahead -The leading economic indicators point to an improving economy.

Consumer spending is up and credit is becoming available again. That’s good news for the medical hair restoration business where many patients have to finance their hair transplants.

Unfortunately, financing for hair replacement systems has never been easy to come by and that’s something the industry needs to confront in 2010. It also needs to take “affirmative action” to build the positive image for our industry that will facilitate sales and remove the stigma of hair replacement once and for all.

Happy Holidays! - All of us at The National Hair Journal and our sister organization, The National Hair Society, wish you the very best for the holidays. We have worked hard to bring you information that we hope will strengthen your business and bring you closer to your peers and colleagues. We thank you for your readership and support and hope you enjoy a well-earned rest with your family and those who are dearest to you!

Chris Webb

Editor-in-Chief the lectures then join their table for dinner to talk about the latest products and business opportunities.

My goal is to be the best in the industry and the only way to do that is to invest in edu- Lisa Dresser cation and recommend what is best for our customers. I recently entered a contest that was sponsored by Brickfish and the product was Got2B products. I had a lot of fun with this adventure and would like to thank all those who voted for me. It paid off because my before and after picture got first place by over 5,000 votes. I’m still patiently waiting the outcome. It is in the final stages where the judges select the winner. The product was wonderful to work with and worked great in the model’s hair as well as extensions and restoration hair. I’ll keep you posted when I get the results. Please pass on my thanks for the support to the Hair Society members and everyone else who voted for me.

Sincerely, Lisa Dresser

4 The National Hair Journal Winter 2009

FOCUS ON HAIR PHOTOGRAPHY! Develop A Passion For Greatness ~ Create Your Own Signature Marketing & PR Programs!

Text & Photography by Larry H. Oskin Today, it is important to create distinctively unique marketing, advertising and PR programs that you will make you known as the `BEST Hair Replacement Expert’, ‘BEST Salon’ or ‘BEST Hair Extensionist’ in your area! An investment in annual professional photography sessions will definitely put you head and shoulders above the competition. To accomplish this, you should facilitate at least one professional hair photography session per year.

If you specialize in hair restoration, you will certainly need to consider a series of makeover photographs. If you are a day spa, then you should facilitate a complete hair, skin, nail, and spa and body photo session. This will ensure that you will never be forced to use the same stock photographs that everyone else in town can use. Professional photography is a very important marketing investment!

You should plan to focus on creating your salon’s exclusive marketing image by taking advantage of your staff’s technical hair replacement skills and their creative hair design abilities! Creating your own photography sessions will allow you to introduce your salon and day spa clients to some of the newest haircare and beautycare services that you offer. Your clients may or may not know what you can really creatively accomplish with hair designs and makeover artistry. Your clients probably also

don’t really know what goes on behind the closed doors of your salon, spa and skincare treatment rooms. Photographs will quickly and visually educate your clients to all your services, artistic abilities and your creative talents.

Photography will help promote all of your salon services including hair design, hair replacement, facials, massage, body treatments, skincare, nailcare, hair removal, hair extensions, wigs and all of your other services.

All of the top national consumer hair magazines and the many international stylebooks are searching for great photographs. This is your opportunity to be discovered, build credibility, respect and pride for yourself and for your salon.

START YOUR PHOTOGRAPHY SESSIONS WITH A SPECIFIC PLAN: Now is the time to determine your specific future `marketing, advertising, award/competition and PR needs’.

Before you set up any photography session date, create a special wish list with your planned strategic objectives, photographic poses, required models and a budget. Detail your potential future `Photographic Needs’ like salon service menus, special brochures, wall posters, in-salon point-of-purchase materials, display advertisements and PR packages.

Plan your work and work your plan! You may not be able to accomplish everything at one photography session, so plan accordingly. You will also need to list your desired models based upon age, sex and ethnicities as well as upon your future marketing needs to show off your special talents. For example, you may want a hair replacement shoot with laser, hair exten-

sion and wig options. Or, you may desire a haircolor shoot to capture a ‘Blonde, ‘Red’, ‘Short Hair’ or ‘Makeover Collection’. You may just want to show diversity with commercial short, medium and long hair designs. You may even want a photography session to capture formal upstyle hair designs for proms, weddings, parties and special events.

You will also need your `Photography Shot List’ to note what potential artistic poses you may need. If your shoot is also targeted to help promote some of your special day spa services, then plan to shoot your signature facial treatments, body treatments, massage, nailcare artistry, hair removal services, cellulite treatments and makeup artistry, besides your hairstyle designs. Be prepared as much as possible, so your salon photography sessions are well organized and run smoothly.

EXPLORE SPECIAL PHOTOGRAPHY RESOURCES: Make a list of potential local and nationally respected photographers to interview. Ask other salons with published works as well as checking out the Internet. Ask the publishers of stylebooks like Passion and Inspire as well as the beauty editors from your local newspapers and regional magazines, whom they would recommend. Find a photographer that has the talent and personality you can work with, at a price you can afford.

It is best to hire someone with special hair, salon and beauty photography expertise. It is usually not worth hiring a portrait or fashion photographer as they may not know how to properly light hair. Explore bringing in a nationally known hair and beautycare photography specialist. There are a number of specialized salon industry photographers that will affordably travel to your salon. The minimal extra travel expenses are certainly worth it.

Capturing hair and spa service details with special lighting effects will be critical. Fashion photographers are usually not experienced in the type of lighting details that you will need, especially on the darker haircolor models.

It is very helpful to have interior photographs of your salon and spa décor. Editors love good interior photographs to accompany feature stories, without any salon professionals in the photographs. Many of the national consumer hair magazines have ‘Top Salon Directories’ and they love to see both hair photography as well as the beautiful interior and exterior shots.

ARTISTIC & PHOTOGRAPHIC STYLES: Visit the photographers’ websites. Ask several photographers to stop by to share their portfolio of artistic work. Review each photographer’s hair and makeup lighting expertise, artistic sense and their various shooting styles. Tell them you would like to see some of their work in the photography format your work will be created in.

Photography remains an exciting visual medium that can be a tremendous advantage for you. Look at published photographs from other salons, haircolorists and day spas. Cut out your favorite photographs and model poses to share these with your photographer. Show them photographs of what you like and don’t like from pictures in Passion Stylebooks or any of the other professional hair publications. Analyze their special lighting techniques and photography styles. Photographers are artists and their creative styles can be dramatically different. If you want a special or signature look with very soft-focused shots, dramatic hot lighting or extraordinary angular shots, you will need to tell them your specific desires.

DIGITAL FORMATS: You will need to proceed with high quality and high resolution digital photography as no one wants color prints or

5 The National Hair Journal Winter 2009 35mm color transparencies anymore. To ensure quality reproductions, publishers need at least 300 dpi – dots per inch / Tiff and Portrait CMYK that will blow up to at least an 8.5” x 11” or 11” x 14” size. Today, most magazines and printers will require a minimum of 300 dpi, to guarantee any level of clarity and quality. Digital photographers can immediately share the results of their work on a laptop

just because they are free and easy to get.

Business is business and this is an important investment in time, talent and money. If they are incredibly attractive and willing to do the poses you need, that’s great. Then use them. We often find professional and semi-professional models by doing our own Internet model search. Put up `Models Wanted!’ posters and flyers in the salon and on community bulletin boards.

computer screen at your photography sessions.

It is best to ship DVD’s or CD’s with your digital photographs to Inspire and the various other publications you hope will print your material. Be sure to include contact prints that give your salon name, city and state, and be sure to give credit to the hair designers, makeup artists and photographers. If you do not submit your photos properly, you either won’t get published or you won’t get credit for your hard work.

You can post ‘Models’ Needed’ want ads on www.ModelMayhem.com or on Craig’s List – www.CraigsList.com – if you are willing to trade free hair services for free models. We always get plenty of experienced and new professional models who want to save money on their haircuts and highlights while building their portfolios. This may help you use some models that are more flexible and willing to have a total hair, skin, nail and spa makeover, rather than the agency models that must keep their hair and portfolio image intact.

PHOTOGRAPHER NEGOTIATIONS: Hire a professional photographer! Just as you wouldn’t want your clients to do their own haircut or facial, you shouldn’t attempt amateur photography when professional quality work is important to create the best possible images for you. Some amateurs and friends will work for free or barter for salon services, while semi-professional photographers may work for as low as $500 to $1,000 per day.

There are some terrific salon and spa industry photographers whose base rates are just $1,800 to $2,500. Some charge more, so shop around for a balance between the quality, creativity and the potential cost factors. Ask for a full day cost estimate. Ask for a list of the basic prices and what optional `extras’ may be worthy of discussion.

Share your required Shot List. Your photographer is your most important “investment,” not a “cost!”

PHOTOGRAPHER AGREEMENTS: This is an extremely important and often a forgotten detail. You will need to determine if you will have ownership rights of the photographic images, or if the photographer has any rights to these same images. You should negotiate to maintain complete ownership with full `Unlimited Buy-Out Rights’ `Unlimited BuyOut Rights’ … without any extra charge for this. Alert the photographer that you will want him/her to sign a release to ensure this. Some photographers will insist on maintaining certain ownership rights to your photographs.

This is sufficient reason to select another photographer. This area is completely negotiable.

This must be negotiated before the shoot day, so there are no awkward surprises.

MODEL SEARCH: Your models will be your next most important investment! Look to use experienced professional and semi-professional models. Determine the types and numbers of models you need, by defining your potential `Shot List’. Determine what type of clients you want to attract through your future marketing, advertising and media relations. Factors like age, ethnicity, skin type, hair type and sex will be important. Decide if you want mostly women from 14 to 45 years of age mixed with a few men.

Many salon clients like to be able to see some attractive mature models that are not young teenagers, so attempt to include some attractive model’s in their 30’s and young 40’s.

You MUST plan to only use attractive models or you are just wasting your time. Never use your friends, relatives or clients as models -

MODEL GO-SEE: Set up a Model `Go-See’ to personally interview the prospective models at one sitting in your salon. Professionally experienced models will be happy to come in to see you with their photography portfolios.

New models with a little experience will usually be willing to gain exposure and experience in exchange for professional services and photographs. You should always pre-negotiate flat day rate fees for models, if you plan to hire and pay for agency based models. Most salon and spa sessions require longer periods of time, than anticipated.

Create a `Model Application & Interview Sheet’ before you consider and track each potential model. Bring a digital camera to the interview sessions. You will need to test their comfort in front of the camera at the Go-See. If you are looking for special hair design and hair restoration models, you must analyze their current and recent hair services as well as their limits and guidelines, before you accept them as a model. If they will only allow a trim and no haircolor, then you don’t need them. You must select hair models that are willing to let you and your team create a new look for them, which may even include a total makeover. You must look them in the eye to ask, “How much hair can I cut off? How do you feel about haircolor, highlights, perms and texture? What are your limits?” Be direct — ask models if you can cut, haircolor, straighten or perm their hair.

If you are looking for spa photographs, ask the prospective models if you can photograph them barebacked, semi-nude or tastefully nude at the upcoming photography session. Even though spa marketing photography requires a level of nudity to show the real services, it takes work to keep these special shots tasteful, discreet and powerful.

Look for young nailcare models with beautiful hands, slender fingers and a great skin tone. If they are a potential spa, massage or a body treatment model, you should plan to manicure and polish their nails and toes.

Make sure that your spa models are comfortable posing semi-nude and nude, if you have intentions to create some artistic poses. We often discreetly shoot tasteful nude spa poses, yet are very protective to never portray a Playboy-style Magazine image. Your more revealing and artistic skincare photographs must (cont. on pg. 20)

6 The National Hair Journal Winter 2009

“What is guerilla marketing….

And how can it benefit my studio?”

In the past issue of the NHJ I wrote about the need for branding by studios. Branding is a strategic undertaking, pure and simple. “Guerilla marketing,” the subject of this article, is tactical in nature.

For those of you who may be confused by the difference, think of the Allies’ bombing philosophy in the Second World War (I know that many of you History Channel fans are reading this article).

The idea behind strategic bombing was for huge British and American warplanes to drop bombs on the factories and war-making apparatus of the Axis powers.

The opposite of strategic bombing was tactical bombing. Such as having planes zoom in and bomb Axis tanks on the battlefield as the Allied infantry advanced.

The results derived from the strategic type of bombing weren’t so immediate. Destroying a ball bearing factory in Dusseldorf wouldn’t help infantrymen trying to forge through the Ardennes Forrest. Not immediately anyway. But as the infantrymen destroyed more and more tanks, and the Germans didn’t have ball bearings to build any more tanks, the victory of the Allies was assured over time.

So, what we have are two different ways of approaching conquest, both with equal merits.

Think of branding as strategic bombing, and guerrilla marketing as the most tactical of “bombing” efforts.

So what IS guerilla marketing?

First of all, it’s “guerilla”, as in Che Guevara Mao Tse-Tung, and yes, even our own Continental Army during the Revolutionary War. (Not gorilla as in the Bronx Zoo, lol.) Again, the war references. Well, marketing is a war. And just like guerilla fighters using unconventional means to obtain their objectives, guerilla marketers go “outside the box” to obtain their sales goals.

Guerilla marketing first gained notoriety in the 1990s in New York City. Out of nowhere, painted stencils were appearing on the sidewalks and street corners of the city bearing messages.

Basically, a few words of copy. The stencils were sent out by a roving (and illegal) band of “street

“…just like guerilla fighters using unconventional means to obtain their objectives, guerilla marketers go “outside the box” to obtain their sales goals.” painters” during the night by the advertiser or their advertising agency. Their tools were a simple cardboard stencil with the letters of the message cut out, a can of paint and a brush.

The first and most effective of these messages, asked women what their panties looked like from that point of view. The advertiser was a women’s lingerie company. Another message from a men’s shoe store asked men, who could fill their footsteps, with the answer being the store, of course.

Of course, guerilla marketing has been with us long before then. Think of handbills stapled to light posts, graffiti painted over boarded-up construction sites, and handbills being passed out on the street by attractive men or women.

These are all types of guerilla marketing, since they go beyond mainstream media in order to get

a message out to the public.

Guerilla marketing utilizes media, too In its purest sense, guerilla marketing does not employ traditional media. It’s not public relations either. But guerilla marketing can frequently stray into both areas, if it uses media in an unexpected manner that is not common for the category of products being marketed.

For example, years ago there was a print campaign telling consumers to go to their supermarkets and if they couldn’t find the advertiser’s product, knock over displays of their competitors’ products. The idea was that if the supermarket wouldn’t give the consumer freedom of choice, than the consumer should make his or her outrage felt.

Though few consumers knocked down displays, the campaign gained notoriety (resulting in PR for the effort) and was effective, since supermarket managers were actually afraid that people would knock down their displays, or at the very least, would favor a competitive supermarket that stocked the product. So they ended up stocking the product themselves.

Pretty clever, eh? And while traditional advertising in the form of newspapers was used for this effort, its tone was definitely guerilla in nature.

“Outrageous” was what some termed the idea of telling shoppers to knock down a competitor’s displays. And that’s what guerilla marketing at its very best can be, no matter whether it utilizes a sidewalk or a newspaper to make its point.

But it costs money to attract new clients in conventional ways.

Television certainly isn’t cheap; neither is radio, if it’s done correctly. And most studios have given up on newspapers altogether.

Steven DiManni When it comes to the internet, more and more studios are learning that it’s not just enough to put up a website. They have to find ways to drive people to that website. That means either using traditional media, or search optimization, either organic (SEO) or “pay per word” (SEM).

All of which makes an effective website as expensive to support as an effective TV effort.

That’s not to say that guerilla marketing is free. It definitely has costs associated with it, particularly in terms of “people hours,” since most guerilla techniques and practices can be rather labor intensive. And there is a materials cost involved as well (more on that later).

But when all is said and done, most guerilla marketing programs can be accomplished for a smaller outlay than a TV or radio campaign would require. There are other benefits, too.

The idea behind guerilla marketing, at its most effective, is to go where potential customers are.

That means intercepting and engaging them outside of their homes, for the most part. Some of these individuals would be hard to reach through most traditional media channels with the budget that most studios allocate for advertising.

Why should a studio consider guerilla marketing?

Another advantage is that you’re reaching people when they might be more “vulnerable” to your message than in a more traditional setting. They don’t have their “anti-advertising shields” up as they would if they were sitting at home watching TV.

Face it, if a studio isn’t looking for new clients today, its owner is either contemplating early retirement or career suicide. That having been said, I know that most every owner or manager who is reading this article is interested in new business.

Of course, since much guerilla marketing takes place in public places, you do lose the privacy factor that is the province of inhome media. So like everything else in life, and in business, there’s a trade off. But not

7 The National Hair Journal Winter 2009

enough of one, in my opinion, to dissuade you from further investigating launching guerilla campaigns of your own.

Guerilla marketing ideas OK, so now you understand the basic concept of guerilla marketing: taking your message out of traditional media and “taking it to the streets,” so to speak, in order to engage potential customers.

Do you literally take your message to the street by painting on sidewalks, as was mentioned earlier? Do you put up posters on boarded up construction sites? Or do you get a bit more clever, and discriminating, in your efforts?

First, consider your potential target audi-

“The idea is simple: a man or woman is unsatisfied with the service they received from their current hair replacement provider and on their way home, they see an alternative solution: your studio.” ence. Men and women who are losing their hair that want to look good. Where would you find people such as these?

How about fitness clubs (or gyms as they used to be referred to)? In this venue you have men and women, most of them under 45, who want to look and feel good. Do the people with hair loss in health clubs sound like a likely target? You bet they do.

So, how do you reach them? Well, many health clubs have a closed-circuit TV system that provides both entertainment and commercial messages to their members who are laboring away on treadmills, “step” machines, and stationary bikes. Why not contract with such local fitness clubs to run your commercial on their closed-circuit system?

Of, if you prefer, engage the gym owner or manager in a reciprocal agreement: put your brochures in his gym at the reception area in counter-cared displays and allow him to put his brochures in your studio in the same manner.

The same goes for shopping malls. Most of them have an association that represents the stores within the mall. Most shopping malls have a fashion bent to them, which means, men and women who shop there want to look their best. And some shopping malls offer a closed-circuit TV environment much like fitness clubs do.

Or…how about putting your own kiosk in a shopping mall? It doesn’t have to be elaborate. A local carpenter can construct a temporary kiosk that contains a TV that plays your message on a monitor linked to a DVD player. You could also have “take one” brochures at such a kiosk. Or to make it even more effective, you could “man” the kiosk with a representative of your studio on hand to personally hand out brochures and answer questions.

Beyond health clubs and shopping malls are local events, such as county fairs, flea markets, farmers’ markets, craft fairs, et. al.

How appropriate these events are for your message is up to you to decide. But certainly, you get the idea.

fear of legal reprisal by buying billboards on roads that lead to your competitor’s studio, specifically targeting his or her disgruntled clients.

Your message could deal with price, or service, or quality of product, or whatever.

The idea is simple: a man or woman is unsatisfied with the service they received and on their way home, they see an alternative solution: your studio. Make sense? You bet it does.

How about radio? No, not the normal type of radio that talks about your studios services, but something more compelling. Like a multi-therapeutic appeal wrapped in a timeconstrained offer that might include the promise of a discount to drive traffic? Or a unique eligibility offer that makes the commercial’s message the so-called “forbidden fruit”?

Don’t forget newspapers, either. How about offering free multi-therapeutic services for those willing to take part in a test program, yet being up front by restricting the offer to those who might not qualify. The result is that you’ll receive a lot of leads from people experiencing hair loss that you can “mine” in the future for other services.

The cost of materials In almost all cases, guerilla marketing efforts require certain materials, whether they may be brochures, videos, commercials, billboards, and the like. Many of these you can produce yourself. Or ask your hair supplier to provide them to you.

Using media for guerilla marketing One of the oldest, if not legal, guerilla marketing tactics is to put flyers advertising your studio under the windshield wipers of cars parked at a competitor’s studio.

The On Rite Company, for example, has developed a full complement of materials to support guerilla marketing programs, from Point of Purchase videos to signage to brochures etc. that is available to their client studios. Perhaps your hair supplier can be convinced to offer you the same, or at the very least, to provide you with the assets (meaning photos and videos) for you to create them yourself.

You can accomplish the safe effect without

Again, as stated earlier, guerilla marketing

is not free. It does come at a price, in terms of your involvement, your creativity, and yes, the actual expenditures required to physically develop the materials you need to support your ideas and ventures into this area.

“Guerilla marketing is not free. It does come at a price, in terms of your involvement, your creativity, and yes, the actual expenditures required to physically develop the materials you need to support your ideas...”

But when compared with the high costs of media advertising, I am sure that most studios will agree that guerilla marketing can become a very effective and efficient way to put new clients into your chairs and add to your bottom line.

Steven DiManni is a 27-year veteran of Madison Avenue, serving as Creative Director of many of New York’s top agencies for clients ranging from Coca-Cola to Hitachi to General Cigar, and has won almost every major creative award the industry has to offer. He is also Executive Vice President/Creative of the John Caples International Awards for whom he creates advertising that promotes the direct response industry’s preeminent awards show. A 26-year veteran of the hair replacement industry, Steven is a long-time consultant to the On Rite Company and is widely published in industry magazines.

8 The National Hair Journal Winter 2009

Consultations That Create Success your client as it does to you! When talking about how much length to cut, hold out your finger and measure the length visually instead of giving a numerical value. “The most important thing a hairstylist can do is to learn how to ask the right questions and then listen to the guest’s answers,” Gartland notes. “The consultation should be full of the right kind of questions that will give you the clarity you need to hit the mark with every guest every time.”

Going Beyond Customer Service

By Jenny Hogan As a professional working in a salon, hair replacement center or wig atelier, customer service has a special meaning in your business. You are more than a hairstylist. You are also considered a professional beautycare advisor, confidante and friend. No doubt you have heard many stories from clients about their hair loss, possibly linked to disease or a chronic condition. Your clientele has specialized needs and you are in the unique position to advise them on what they can do to achieve their ultimate look. Lauren Gartland is the founder of Inspiring Champions, a business training and coaching company working in the professional beauty industry. Gartland regularly instructs beauty professionals on how to grow their careers and businesses while also helping clients see the possibilities of what they can become. She shares some of her secrets for immediately boosting retail and service sales, all while providing clients with greater value and service.

The Perfect Consultation “The consultation is the first step that is vital for client success,” Gartland notes. “By using a set script to accomplish a salon consultation, you can go way beyond your normal service and retail expectations. This way, without adding additional clients to your schedule or raising prices, you can dramatically increase your income, while also adding to your client’s experience and results.” Today it is easier than ever for hair replacement clients to look their best because of natural hair extensions, clip-on hair pieces and premium wigs. Since these great hair pieces are made from human hair and can be treated with the same products and tools as natural hair, you can continue to retail products and upsell services just as you would for traditional hair clients.

Ask Questions Gartland instructs that you should first prepare a detailed questionnaire to review with each of your

clients. You will sit with them and fill out the forms yourself, first asking permission and clarifying that you want to determine their needs. Gartland notes, “Your consultation should include a thorough list of meaningful questions. Instruct the client that the purpose of the consultation is to identify their needs so that you can offer the best solutions.” Hairstylists will have clients rate the condition of their hair, their current haircut, haircolor and hairstyle on a scale of 1 to 10. Have them rate the performance and results of their current haircare products, as well as their styling tools. List their specific challenges or concerns and rate the effectiveness of their past treatments. Have them rate their level of commitment to addressing these concerns. Ask if they are able to duplicate their hairstyle at home and what it would take for them to be able to do so? Ask what the one thing they most want to improve is and what would make the day’s experience a ‘10’ for them? Always be clinical, non-judgmental and do not ask leading questions or offer your personal opinions.

“By asking detailed questions that really describe what the client wants, you might uncover some desires even they weren’t even aware of before!

Asking ‘Do you want your hair to whisper, talk or scream?’ provides a telling answer to their preferences. Talking about hairstyling can be very subjective, so these types of questions help to identify your client’s personality and clarify your terms. When identifying haircolor or highlights, always look at color charts, swatches or stylebook photographs to make sure that ‘auburn’ means the same thing to

Connect With Their Imagination Part of your role during the consultation is to help your clients see the possibilities for their hair and their total image. Ask your clients for three words that best describe what they want their hair to say about their personality. They may say, ‘healthy, natural and down-to-earth,’ or ‘sexy, youthful and fun.’

When clients give a subjective answer to a question at the consultation, clarify what they mean. ‘What does healthy hair mean to you?’ Write down their answers and repeat them back; then keep on asking ‘what else’ until the client has really been heard.

Now you have identified their challenges. You want them to identify as many challenges, needs and desires as possible, so that you can offer a series of professional wig, hair replacement and haircare solutions! You will then be able to give them your professional recommendations for services as well as additional products that you can provide.

When recommending services and products, go beyond their technical descriptions to connect with clients on an emotional level. “Remember that the journey to the heart is through the imagination,” notes Gartland. Your imagination asks, “What is this? Why are they recommending this, how is it going to work and what will I love or hate about it?” While giving your recommendations, use trigger words like ‘What,’ ‘Why,’ ‘How’ and ‘Love.’ First, state your recommendation: ‘What I recommend is our special deep conditioning treatment.’ When describing ‘why,’ use the client’s own words from the consultation. ‘You noted earlier that your hair was dry, so this will provide extra conditioning.’ When describing ‘how,’ be precise in your language. ‘It will take 10 minutes and be applied at the shampoo bowl.’ Do mention price, but do not linger there – go directly to the love!

‘This is $20 and you will absolutely love the healthy shine it will give you! You’re going to walk

out of here with hair that is…’ Now use the three words they used to describe their ideal. You see how simple it really is?

Create Self Awareness Remember that most people buy emotionally, then justify it logically. People will buy experiences and solutions, not just services or products. For hair replacement clients, this may be especially true.

They have specific requirements for their hair loss that need solutions and they may also need a little extra TLC. Gartland notes, “Customers will exchange their hard earned money for two things: solutions to problems and good feelings. This is what will keep them coming back.”

Don’t be afraid to offer additional services that will enhance salon visits, even if clients did not explicitly express a need for them. For instance, it is probably a given that stress is part of their lives as hair replacement clients. Why not offer a relaxing head massage, hand and foot treatment or aromatherapy?

Other add-on treatments that would give your clients an additional self-esteem boost could include a makeup touchup, eyebrow shaping or a lesson on creating upstyles for special occasions. “Do not worry about clients saying ‘no’ when you offer additional services or products. A ‘no’ today could be a ‘yes’ tomorrow,” Gartland notes. Often you are just planting a seed for a service that a client may want at a later date, such as haircolor, highlights or hair extensions.

If the idea of retailing or upselling makes you uncomfortable, remember that your goal is never to pressure your client into unwanted services. Your goal is to create self awareness, by showing your clients a vision of what they can become. It’s a win-win for everyone, as you are giving them enhanced results with a small price increase while greatly increasing your own income over time. Gartland concludes, “Creating an extraordinary client experience will be the driving force for the guest wanting to return for more.

Conducting a thorough consultation will ensure that your clients feel listened to, taken care of and know your commitment level. They will not only get added benefits but will learn about possibilities they hadn’t even thought of before!”

Inspiring Champions is a business and coaching company offering live training camps, coaching and mentoring services, webinars, audio tapes and educational resources. Jenny Hogan is Media Director at a full-service marketing, advertising and PR agency specializing in the professional beauty business.

9 The National Hair Journall Winter 2009

10 The National Hair Journal Winter 2009

Extend the Style Enjoy the Fun!

By Hannah Mayo Many women with thinning hair have reservations about hair replacement options such as wigs, hair pieces, topical cosmetic fibers and hair regrowth solutions. Typical questions include, “Will people be able to tell?” and “Will it really work and look real?” In addition to their skepticism, some women

may be embarrassed about purchasing and using these products simply because they are more associated with balding than with thinning hair.

Thankfully, there is an alternative treatment for adding new volume to thin hair. It is semi-permanent, visually undetectable and works every single time. It is also the hottest thing among celebrities and runway models which will help suppress any negative misconceptions about hair replacement.

The solution? Professional hair extensions!

Most women will begin to experience some form of hair loss by age 50. It may be due to a number of reasons such as hormone changes, stress, chemotherapy or simply genetics. However, in our increasingly image-conscious culture, this does not change the desire to look utterly fabulous!

Fortunately for women, most cases of thinning hair are different from traditional male pattern baldness. Their thinning hair is usually consistent across the entire head, rather than concentrated at the temples and crown as in male pattern baldness.

This provides an ideal condition for hair extensions, since the existing hair can serve as ‘anchor points’ when attaching the extensions. Luckily for your clients, endless volume can be created by simply adding more hair.

For many female hair replacement clients, the benefits of hair extensions surpass other replacement

options. Many women do not want something as drastic as a wig, while others may not want to hassle with applying topical solutions or hair fibers.

Hair extensions are a more permanent and discreet way to add volume to thin hair. Besides their user friendly appeal, extensions also allow multiple styling options since they are treated like natural hair. So women can carry on with their day to day activities without having to worry about someone noticing their thinning hair or a wig. And with so many haircolors and textures to choose from, extensions provide an endless number of creative possibilities such as adding length, highlights, lowlights and different textures to add dimension.

How could any woman with thinning hair resist the temptation of undetectable new volume and color without any hassle?

One hair replacement pioneer, SO.CAP.USA Hair Extensions, has developed several advanced techniques for hair replacement applications.

Generally known as ‘flat bonds,’ this extensio method provides the benefits of extra volume

without the worry of visibility, which is crucial for clients who have thin hair. Most quality hair extension companies offer human hair that is prebonded with adhesive already applied to the tip, simplifying the application process for the hair extensionist. A few professional hair extension companies, including SO.CAP.USA Hair Extensions, have taken the pre-bonded tip one step further by formulating 100% Keratin tips, which are made with the same protein as our own natural hair. This ensures a strong, healthy and long lasting bond, which is molecularly the same as our own hair. When properly cared for, hair extensions can last up to six months or more.

And removing extensions can be as simple as applying a specially formulated solvent that quickly and safely dissolves the bond without damaging to the hair.

Provide your female clients with an enticing hair replacement alternative by suggesting professional hair extensions. Not only will they be excited about their new makeover options, they will come back to you time and time again!

Hannah Mayo is a Marketing Director for Marketing Solutions of Fairfax, VA. SO.CAP. USA Hair Extensions is one of the largest professional hair extension companies in the world.

11 The National Hair Journal Winter 2009

Hi Tech Laser Therapy Meets Basic Tech Marketing 101

By Helena Gibson I just returned from the “Cruising with the Stars” trip and was very surprised at how many studio owners have invested in Laser Hair Systems and are not using them. I took the time to visit a few studios as I made my way home Helena Gibson to California. In one studio I visited, their $20,000 plus Laser Hair System was languishing in a room surrounded by cardboard boxes. I was stunned. In such rough economic times how can anyone tie up that much capital and generate a zero return on investment?

Clearly no matter how fantastic the machine may look or how wonderful the service and results it provides, the system will not sell itself. It has to be marketed. I heard more than a few studio owners claim that they just didn’t have the budget to do the marketing they felt was needed. I understand that response, but, for me I knew that doing nothing was simply not an option.

I began my zero cost marketing way before I even committed to purchasing the system. Even if a studio has bought one and not had any success with it, this initial strategy, does work. I began what I call a “ghost marketing campaign” The objective was to build a qualified prospect pool that I could then target as soon as the system arrived. I taught my employees what I wanted them to look for as they worked with their regular sales, and incentivized them with a $200 bonus for each fully paid client. Between us we built a list of the names and numbers of twenty potential clients who were likely to be interested in the service once the machine arrived. We closed four of these initial prospects. As they say practice makes perfect. By having a concentrated group of prospects to work with we were able to bring this new service into the day to day mindset of the employees and to refine our sales techniques through live hands on experiences.

The $12,000 in revenue that this generated in our first month enabled us to take the time to fill our prospect pipeline for a second time.

The second pipeline building was also a zero cost exercise. Going back through my customer database and again leveraging the support of the employees we targeted all those prospects that had been non-committal due to the system not having been there during our initial “ghost campaign.”

Now that we had already made sales and gone through a number of consultations with our sometimes more ‘easy going’ ini-

tial prospects converting this second group of slightly more challenging prospects resulted in the same 20% closing ratio!

By the time our initial clients were 90 days into treatment they were starting to see results. It was the most natural thing in the world to offer them a $250 store credit for every sold referral they provided. More importantly was the “live” evidence to show the new prospects and to further enthuse the employees. I have always believed the focused efforts yield focused results. What is wonderful about the Laser Hair Therapy system is the feeling it has given us as the providers that ‘we’ made the difference in our client’s lives. Talk about focus!

Now I know a big problem that owners are complaining about is the lack of before and after photos. I too was promised marketing support and photos. Like many others all I received was some bland generic marketing literature and 2 old Xerox copied before and after photos. With just a little creativity this challenge can be transformed into an opportunity. For the first six month’s worth of clients I explained to them that the regular price would be discounted to enable me to build a database of “local” photos. And that if they put off signing up for the service, the discounted rate would then not be available to them. I have to admit this very simple strategy worked exceptionally well!

As the revenue stream has grown, funds have become available for marketing. My studio’s location is on a busy street so the

investment in a simple window poster has worked well and generates about four inquiries per month. Even with prospects that are not suitable candidates, it increases our foot traffic and allows us to showcase our other products and services.

More importantly it provides an opportunity to ask for referrals from their friends and family and further increases the market place presence of our Laser System.

Creating a brochure personalized to the studio and market was the next logical step, and I can’t stress enough the need to get out there and share them with the salons and doctor’s offices in your community.

For the first year I ran a competitively sized ad in the phone book and it failed miserably. Consumers truly are moving more and more to online searches for local products and services. Having a strong website and investing in a tailored sponsored listing search with Google has proven to generate a much stronger return on investment.

So as you can see I got our Laser Hair Therapy treatments off the ground in our local market with zero dollars allocated for marketing. Be creative and be proactive and keep your pipeline going. This does take a little time to build in this economy, remember this is a large investment for your client. If they don’t sign up today they still could in the future. So send them reminders. I follow up every 3 months until I know that they are really not going

to sign up. Remember you’re giving the gift of hair and happy selling! If you have any questions please feel free to e-mail me at Helena@citywigsandboutique.com.

HALL OF SHAME Murrieta, CA. 11/09 - Anything that is deeply private and important gets laughed at.

Psychiatrists tell us that's how we deal with our insecurities. That's why religion and sex have been the mainstay of comedians everywhere. Hair loss, unfortunately, is also one of those categories. The failure of the hair replacement industry to come together and present a positive image of the services it provides has incubated an environment where humiliation and cheap jokes are the norm.

A recent survey by the Wall Street Journal of wigs and toupees for men (WSJ, Oct 01) featured photographs that are in no way representative of the sophisticated hair loss solutions available today and they elicited derision from many readers in the online comments section. Here are a few quotes from the comments section of the Wall Street Journal website: "Good toupee is an oxymoron."

"LOL! Seeing the pictures was good enough for me. Hilarious! I pray I never will need a toupee!"

"I can't stop laughing!!!!!!!! Thanks WSJ - I needed that pick-up for today. This comes real close to the greatness of the "Lost Art of the Comb over" article from way back when.

"These wigs should have come with chin straps."

The media does not laugh at breast enhancement, dental veneers or even sexual enhancement products because they candidly present their benefits no matter how intimate the subject. Until nonsurgical hair replacement companies work together to create a positive public relations campaign, they will continue to see market share decline as men turn to less embarrassing alternatives.

12 The National Hair Journal Winter 2009

Better Results Through Simplicity A Software Developer Reflects

Jerod Prindable “WHATEVER happened to Pacman?” my brain muttered as I fumbled to push button ‘X’ then ‘Y’ while pressing the keypads on my son’s PS3 controller. Computer games used to be so simple. My two boys, of course, were oblivious to my struggles as they marched across the screen to score yet again. It seems it was only yesterday when you could play a video game with just a simple joystick. Now there are more buttons on a controller than you have fingers to press them!

The IT world has progressed in much the same way. As computer hardware has become smaller and better, the software has become more complex. Much like my experience with the ‘newest’ batch of video games, the endless array of new features offered by most software packages has left many users behind.

It seems the majority of software these days is geared towards the developers’ ideas about the client’s business, rather than their client’s real needs. And it usually takes no account of their experience with business software. So just as my 11 year old smiles and shakes his

head as his dad fumbles with the controller, many salon owners find themselves overpowered by complex salon management and accounting software costing thousands of dollars that was built to satisfy a tech geek, not a salon owner.

Why do Salon owners pay for such complex software, knowing that they will spend the better part of the next few months reading the appropriate software “for Dummies” books? Or worse, fearing that the fifteen hundred dollar program they purchased today will become a dusty coaster sitting next to the office pc in three months. Why DO they buy? Simple. Developers confound their common sense by magical of phrases such as “the latest” and “the most advanced … “, “award-winning” and my favorite, “cutting edge!”

I mean really, who wants to spend $1,000 on last year’s software when they can get the “cutting edge” for $1,500? No one wants to be outdated, and no one wants their business to be left behind.

I could continue to joke about this, but as many of you are finding out, this is a serious industry problem. From my point of view as both a software developer and a laser therapy advocate, I see the problem from both sides. Of course a salon wants to have the latest technology, and of course a software company is expected to be on the “cutting edge” and therein lays the problem. If I offer a sound, effective product, will it sell even if it isn’t “the latest” or “the most powerful”? This sales-hype mentality forces software companies to create complicated products, loaded with incredible features that you will never use.

Ok, that’s the problem, now what is the answer? Here are some common sense suggestions.

• Buy want you need, not what they think you need.

This does not mean you shouldn’t try new products. It means you should think hard about any new features and what they really mean for your business. There is a big difference between a feature that will bring you a new sale each month and one that will track the birthdays of your employees and send you a neat little reminder email that plays a nifty tune.

• Tell your vendor what will help your

business.

Most developers who work on your software packages don’t leave their cubicles often enough to worry about their hair; so they are not what you would call industry experts. You are the industry expert, and it is in your interest to guide the development of software for your industry. If the software development company is smart, they’ll listen…

• Take it for a spin either virtually or literally, before buying.

Just as an example, Virtual Imaging Systems, whose software we distribute,

offers live demonstrations of their client presentation (sales) software every Tuesday and Thursday afternoon for groups up to five people at a time. They walk the prospective buyers through the entire software package and demonstrate the features. During the live demonstration, the presenter keeps a special phone line open so users can ask real-time questions. While different companies have different methods, most reputable companies will have some type of demonstration or trial that you can use to see if the software is truly right for your business.

• #1 Simplicity … #14 Features.

Make sure you buy software you intuitively understand. THE biggest mistake most buyers make is focusing on the flashing lights and cool sounds when they have no clue what the software is actually doing. If you find yourself saying “I’ll get a book and figure it out”, “Maybe there’s a help video”, or “My nephew knows a lot about computers, he can help” then you are probably overbuying.

In conclusion, we need to remember as both salon owners and developers, that the end game for all of us is growing the business. For developers: happy clients are more apt to refer software in an industry where word of mouth is king. For owners: good tools help to increase sales, and streamline offices which helps grow the business. Late nights struggling with your nephew over the pc does not.

The author, Jerod Prindable, spent over 11 years as a software architect and development manager for companies such as ATT, AAA and for the US Air Force. He is currently President of Prevail Technologies, a source for innovative technologies for the Hair Loss industry.

13 The National Hair Journal Winter 2009

14 The National Hair Journal Winter 2009 We all know our business and we know it well.

We’ve got some of the largest hair replacement studios in the United States among our members. We also have studios that only have two or three stylists that wouldn’t be considered big players, but they do quality work and they care about their customers. What we’re really trying to do is to expand upon the common desire to take care of the customer, find the best products and build the best technical skills. Hair will always be important; we have to make sure we take the best care of it.

Transitions Meets in La Jolla La Jolla, CA. 11/09 – Transitions International Group is a unique network of hair replacement professionals who share technical and marketing resources. Members pay an annual fee for exclusive rights to their territory.

In November, the group held its annual business conference in La Jolla, California. The National Hair Journal met with the group’s director and marketing coordinator, Greg Taylor to learn more about the meeting. The following is an extract from that conversation.

The Transitions group is special because of the generosity of our members. We were reminded of that today in one of the meetings. Arnold Zimmerman, who we see as one of the founders of the Transitions group, got up and spoke to us. He is now retired, but he gave a heartwarming presentation. Back then, Arnold and his National Hair Center was by far the biggest hair replacement center in the United States. But they were not too big to share their marketing and media materials. They shared unabashedly with all of us, without restriction or controls. They realized that when they shared and when they gave things to us, it came back to them tenfold. This is a very competitive business, and most people haven’t always been comfortable sharing. Arnold taught us to be trusting and generous and that’s what Transitions is trying to bring to the table.

Greg Taylor - If I had to summarize the theme of this year's conference, it would be ‘sharing.’ We changed our meeting style this year; we based everything on our members’ own experiences and knowledge. We’ve got over 2,000 years worth of experience in this group. We can draw on an incredible wealth of knowledge.

This year, we conducted a survey of all of our members’ operating expenses. We analyzed the cost of running their individual operations and compared one member with another as well as the average of the group to determine if they’re spending too much in one area… or not spending enough! This is the first time we’ve been able to do this and our membership is really learning a lot.

The Transitions Group counts some of the industry pioneers and most successful owners among its members. As we look ahead to 2010, we see that the majority of them share the same concerns; it doesn’t matter if they’re doing several million dollars a year or several hundred thousand dollars a year. Sure they want to see the economy pick up, but most owners are focused on building the new skills that will be necessary to advance hair replacement in an evolving market. Education is the key. Education covers a lot of different parts of the market, but by supplying knowledge across a wide range of disciplines, we’re allowing members to develop new skills

Of course, it's easier to share when you are not giving your marketing materials to a neighbor who is your direct competitor. That's why each member acquires their own DMA (designated market area).

This tells them that no one else in Transitions is going to compete against them in their own market. It also means that everyone in surrounding areas who is a Transitions member is a friendly member. This reassurance encourages the sharing of information. So anyone wanting to join the Transitions Group first has to find out if their area is an open-market. Once they’ve applied for admission, it is reviewed by the entire membership. We try to pick people who do quality work and have a good reputation. If you look around this room, I think we've been successful!

that will allow them to diversify and compete in the market of the future.

Editor’s Note: For more information about the Transitions Group, call Greg Taylor at: 650-589-2689 or email him at: GregTrans@SBCglobal.net.

Who Comes Up with this Stuff?

The National Hair Journal receives all manner of press releases and news items every day, but we were intrigued to be notified that October is National Dental Hygiene Month. It seems it was only yesterday that we were recognizing Hairloss Awareness month, a public awareness campaign created by the American Academy of Dermatology (AAD to educate people and to refute the hair loss myths that may delay millions from seeking diagnosis and treatment.

Now we don’t have a problem with educational programs that help the public, but things seem to have become a little out of hand. We did some research of our own to find out what special events are scheduled early in the New Year and were surprised just how busy the calendar has become: January Birth Defects Prevention Month Cataract Awareness Month Cervical Cancer Awareness Month Family Fit Lifestyle Month Financial Wellness Month Glaucoma Awareness Month Healthy Weight Awareness Month Mentoring Month Personal Self-Defense Awareness Month Poverty in America Awareness Month Thyroid Awareness Month February African-American History Month Children’s Dental Health Month Ethnic Equality Month Heart Month March Colorectal Cancer Awareness Month Gender Equality Month Kidney Month Mental Retardation Awareness Month Multiple Sclerosis Awareness Month If none of those special months fit your personal preferences, you can always wait for September, which has been labeled “Pleasure Your Mate Month!”

NHJ

15 The National Hair Journal Winter 2009

16 The National Hair Journal Winter 2009

17 The National Hair Journal Winter 2009

O

ne out of every three people experience noticeable hair loss.

Thinning hair is a challenge that many men have to deal with, but 30 percent of women are also affected. With more than 352 million men and women suffering hair loss in the USA and Europe alone, adding laser treatments to your Salon will complement your business as

LASER EXPERTS SHARE SUCCESS SECRETS Dr. Santiago Alvarez, William C. Blatter B.S, M.M, & Dr. Michael Fuhrman in vision correction, orthopedic surgery, wound healing, fighting acne and a wide range of other medical treatments. Although a laser device was recently cleared by the FDA to grow hair, one company, Hair Loss Control Clinic (HLCC™) has been utilizing lasers as part of their treatment programs for over 16 years. Now with more than 100 locations in 21 countries, HLCC President, Bill Blatter, shares the secret of growing their business, even in a down economy. “Laser Hair Loss Therapy is an unmatched business opportunity” claims Blatter, “Money is being made while helping clients stop hair loss and re-grow hair. It only makes sense that more and more Salons and Spas are finding their way into the hair loss laser treatment business.”

well as draw in new customers with the “sizzle” of “laser.” It is safe, non-invasive and works on both men & women. More importantly, with an average sale of $3,000-$4,000 per client, salons are adding more than $200k

Before

The Science behind it: “Mechanisms for low level light laser” Low level laser therapy (LLLT) for hair loss treatment uses the well known principal of photobiostimulation. Photobiostimulation is the biochemical, non-thermal effect that results from exposure of living tissue to various dosage of energy at varying wavelengths emitted from low level lasers.

Various studies, including a double blind study submitted to the FDA, have shown a number of mechanisms on how photobiostimulation effects hair growth. Doctor Michael R. Hamblin, PhD, a principal investigator at the Wellman Center for Photo Medicine, Massachusetts General Hospital and an associate professor of dermatology at the Harvard School of Medicine, recently presented new

After Before

Before

After to their annual revenue with only one new client per week.

What makes this a pristine opportunity for most Salons is that you already have a steady stream of potential clients walking in your door. Although men are still a slightly larger percentage of hair loss suffers, women are the fastest growing number and the most underserved group. In fact, 50% of all women will have thinning hair by middle age and more and more of them are turning to medical treatments like low level laser therapy for help.

Laser therapy has been widely used for years

After and updated information on the mechanism of action for “laser biostimulation” at the ISHRS 17th Annual Scientific Meeting. He states, “Several laboratories, including ours, have reported the generation of intracellular reactive oxygen species (ROS) in the mitochondria of cells during low-level light therapy (LLLT) and the release of nitric oxide from intracellular binding proteins including cytochrome c oxidase. Several redox-sensitive transcription factors are known such as NF-kB and AP1, are able to initiate transcription of genes involved in protective responses to oxidative stress. We have demonstrated activation of NF-kB in several cell lines and primary cells by different wavelengths, and fluencies of red and NIR light. Genes that are targets of NF-kB fall into groups of anti-apoptotic proteins, anti-oxidant proteins, pro-proliferation proteins, acute phase response, adhesion molecules, cytokines and chemokines, and pro-inflammatory proteins. Released NO may also have major roles to play considering its protective and vasodilator functions.”

The cellular effects of LLLT are being employed in the use of low level laser or light therapy for the treatment of baldness and stimulation of hair growth. Various devices like

laser combs and hairdryer-type hoods are used to deliver red laser light to the scalp and encourage new hair growth in patients with thinning hair. Reduction of cell death in the hair follicle, the increase in the number of follicles in the anagen phase, and the increase in hair pigmentation have all been observed.”?

In layman’s terms There are five distinct effects that are known to occur: 1. Increased ATP (Adenosine Triphosphate)

and protein synthesis – causing an increase in osmotic cellular function 2. Increased cell proliferation (Growth) 3. Increased protein synthesis, causing a change in cell membrane permeability 4. Increased blood circulation by 54% after only one treatment, providing a supply of nutrients to the hair follicle 5. Increased capillaries’ size under the hair follicle More and more studies by doctors are showing the positive results provided by LLLT for hair loss, and more and more salon owners are reaping the benefits.

Other recent studies cited • A study published in the International Journal of Cosmetic Surgery and Aesthetic Dermatology showed a 93% increase in hair among the respondents, in the study using the Laser!

• A laser received certification by the Canadian government to claim and indicate that it strengthens hair, prevents hair loss and stimulates re-growth of hair in men and women.

• Long term international and recent clinical trials with the laser suggest many benefits from laser hair treatments.

• More than 90% of laser users achieve some positive benefits and results • Preliminary results of a retrospective study, currently under way, by hair loss clinic chains shows well over 95% of clinic clients re-grow hair.

• A number of other studies are currently under way including those approved by the prestigious IRB boards.

• FDA clears the HairMax LaserComb to promote hair growth - 2007 What the experts say Dr. Santiago Alvarez has practiced Medicine since 1980. He is Board Certified and runs a hair loss clinic and aesthetics practice in Moreno Valley, CA. He states, “As a doctor, I have seen laser therapy work first hand for about 95% of my patients. We stop hair loss almost 99% of the time. I'm really glad I added laser therapy to my practice and more importantly, my patients are even happier.” “However, LLLT by itself is not the complete answer,” says Dr. S. Michael Fuhrman. “Patients experiencing the best results on a consistent basis undergoing LLLT are those utilizing a multi-therapeutic approach to their treatment.” Dr. Unger, a founding member and diplomat of the American Board of Hair Restoration Surgery has been quoted as saying, “LLLT increases the energy in the cells.... It is like the fuel, the gasoline of cells. It increases collagen synthesis and protein synthesis. It decreases inflammation in the area and increases the circulation by making blood vessels in the area larger and also creating new blood vessels.” Unger also cites a clinical study he supervised that found that the laser therapy resulted in 86 per cent of patients re-growing hair, while another 11 per cent stopped losing hair. The study was done by Dr. Roy Geronemus.

More diodes, better results “However,” claims Alvarez, “More diodes = better results.” Dr. Alvarez credits the concept of ‘Laser Diode Minutes’ (LDM) as a gauge to realistic expectations. The FDA cleared a laser for hair re-growth, with only one laser diode, in a landmark study showing 93% of respondents grew more hair. But says Alvarez, “the more laser diode-minutes a patient gets during each treatment, the better their results will be.” LDM is determined by multiplying the number of laser diodes, by the number of minutes of each treatment, by the number of treatments per week. (160 laser diodes x 30 minutes x 2 times per week = 9,600 LDM). “The same is true for in-home, clinic lasers and hand held lasers. Use a hand held laser brush with 5 laser diodes, 3 times a week for 15 minutes and you will have treated with 225 LDM, but use a home laser with 75 diodes the same amount of time and you will have treated with 3375 LDM.” Below are a few key ways to get the best results for your clients while maximizing your full profit potential.

Offer all the options: • Multi-Therapeutic Approach – Most hair loss physicians and salon professionals have found that by combining laser therapy with healthy hair products for a multi-therapeutic approach yields the best results. Lasers work great, but they work much better when combined with products for good scalp hygiene, good hair nutrition, DHT blockers (6-8 preferably, as DHT is the primary cause of hair loss), as well as growth activators like Minoxidil and topical DHT blockers.

• Home Treatment Options* – Make home treatment options available. Not everyone has the time to come in for treatment, or they may live too far away. This provides additional revenue opportunity by reaching clients beyond typical selling areas, as well as serving the clients who prefer the convenience of home treatment.

• Home Treatment works best if regular checkups are conducted, allowing for adjusted treatment protocols when needed and ensuring proper compliance at home.

• Hand Held Lasers –We have found it best to provide a variety of hand held lasers for better profitability. The key is bundling each hand held laser with a 6-12 month supply of hair loss products, to ensure the best results for the clients, and long term residual income. Again, this works best if checkups are conducted regularly with the client.

Marketing - Marketing - Marketing!

• Find a way to utilize the Internet – The Internet is the best place to spend marketing dollars. Work with a top quality marketing firm specializing in Hair Loss for search engine optimization (SEO) (Google). Utilizing Google and other search engines allows you to generate qualified leads in your geographic area, utilizing key industry terms such as “laser hair loss therapy.” Look up this term in your area and see what you find both in the natural listing based on Complex SEO principals (down the right side after Sponsored listings) and in the top 3 ads at the top and then look at the rest down the left hand side of the page, which are paid listings. There are ways to utilize the Internet to increase revenue, even if you don’t have a website. A good partner selling you your laser should be able to help you with your local Internet campaign.

Journals, Magazines and Newspapers these quotes came from & supporting research references: 1.Doctor Michael R. Hamblin, PhD is a Principal Investigator at the Wellman Center for Photo Medicine, Massachusetts General Hospital and an Associate Professor of Dermatology at the Harvard School of Medicine 2. JL Satino M Markou (2003), Intl Journal of Cosmetic Surgery and Aesthetic Dermatology, Vol.5, No 2 3.Dr. Roy Geronemus and Dr. Martin Unger, The Toronto Star - Your health - Salon offers balding men a cool zap. 6/6 (2008) The quotes from the articles' above are from independent news sources and in no way imply any comment Pro or Con or any endorsement of any company, product and/or service. NHJ

the new

18 The National Hair Journal Winter 2009

NHJ:Darryll, how long have you been with the company?

DP: I have actually been with the company twice. I started in 2000 and worked here for two years as CFO. I came back a couple of years later in the CFO/COO role before taking over as President and CEO two and a half years ago.

NHJ: How has Hair Club changed in that time?

DP: I’ve seen enormous changes in those years.

We originally started as a hair system business for men only. Since then, we’ve followed a steady evolution toward a client-focused, fullservice hair restoration company. In the late 1990’s we went from selling a la carte systems to client membership programs where each membership level offers clients different services and hair systems on an annual basis. So you could say we’ve moved from an a la carte business model to an annuity business. The evolution continues as we moved into the Women’s’ Hair Replacement Market, Hair Therapy, and Hair Transplant Market.

Hair Club

Ten years ago The National Hair Journal interviewed Sy Sperling, not only the founder but by then also an exceedingly rich client of Hair Club for Men. Six years later, we met with Steve Hudson and Gilbert Palter, partners in Toronto-based EdgeStone Capital Partners that had acquired a majority interest in Hair Club in 2002. In 2004, Regis Corporation, the nation’s largest hair salon company, purchased Hair Club for $210 million, adding it to their roster of leading salons that included Supercuts, MasterCuts, Vidal Sassoon, Jean Louis David, SmartStyle and Regis Salons. Today, Darryll Porter, President and CEO since 2007 tells The Journal about the continued expansion of Hair Club and how it is adapting to the changing media and consumer landscape.

been good at everything, but we’ve always been good at the direct response side of things. We have an incredible infrastructure and the technology to measure and manage all our advertising from every source, whether the media channel is TV or Internet or print, etc.

NHJ: The advertising landscape has changed almost beyond recognition. How is Hair Club responding to the new web-centric world?

of our business. What has changed however is the fact that you can no longer rely on traditional media vehicles. We have now shifted part of our budget to social networking. We host a series of video blogs, and we even have our own channel on YouTube and our own page on Facebook. There are people who have had hair transplant procedures who film their progress and post it on our video blogs every week. They

clients to bring in other clients, it just doesn’t work. They don’t want to talk about wearing a hair system. It’s a fundamental issue within the hair system business.

NHJ: Wendy’s fast food chain has just started an advertising campaign in which they laugh at a man whose toupee blows off. It only takes one national campaign like that to ignite the anxiety we’ve been talking about. How should the indus-

“We’ve moved from an a la carte business model to an annuity business.”

NHJ:Obviously you are now ordering and styling many more hair systems.

DP: That’s right. This has made us the largest purchaser of hair systems from China and, more recently, Vietnam and Cambodia where we’ve established new factories.

NHJ: In addition to restructuring your men’s hair business, you also began to look more closely at the women’s market.

DP: Around 2003/04, we began a business initiative to move into the women’s market because we could see that the men’s market had matured.

There was little growth potential. We had established a big population of program clients, but the attrition of those clients was about even with the number of people we could draw in through advertising. We had reached a plateau. So, we decided to train and certify our stylists to provide support services for women.

NHJ: This was a not only a new market segment, it also required a new skill set. How did you prepare for this?

DP:It was a challenge because women are a more difficult customer from a diagnostic, service and financial point of view. They may be profitable, but they are not as profitable as men.

Their hair systems are more expensive because of the longer hair, and women tend to wear bigger hair systems, too. So you really have to get the pricing right. We also had to re-examine the way we paid our stylists because the service visits were very different. It was important to get all these details right because we had tried this before and failed. Fortunately, our homework paid off and this time it has turned out to be a big success.

NHJ:Does Hair Club have serious competition on a national level?

DP: Not really. There are a couple of regional players out there, but we really don’t compete.

Our advertising and marketing is highly effective. This is something that Hair Club has really been good at over the years. It hasn’t always

Darryll Porter, President and CEO, Hair Club DP: Our business model was simple in the old days; throw a bunch of TV out there and wait for phones to ring in our call centers. The call centers booked an appointment and you pulled a report and said, okay this 1-800 number was tied to this station and it brought in 25 leads. That’s not the way things work anymore. Today, 50 percent of our sales come through the Internet. But things are not that simple. We know, based on some regression analysis we’ve done, that up to 65 percent of the leads that come through people typing in ‘Hair Club.com’ are actually generated by TV exposure. If we cut off TV advertising, Internet response stops. To make things more complicated, we do a lot of search engine marketing where we go out and buy keywords and phrases, so it is becoming more difficult to manage our advertising efficiency. We don’t have the perfect tracking tools for traffic coming onto the web. What is driving online response?

This is one of the things that have changed dramatically for us. We’ve had to get a lot more sophisticated in the way we measure things.

NHJ: If the media scene has radically changed, it appears that Hair Club has stuck with its traditional advertising format. It still uses the established magnets of hair replacement. You get the hair; you ride the Jet Ski; you get the girl; you get the job.

DP: That is partially true. We got clever four or five years ago, and went out and shot a lot of new infomercials that talked about technology, the legitimacy of our businesses and how great our employees are. We probably talked about ourselves too much - and it didn’t work. So we went back to the traditional stuff and refreshed it. It still works! It remains the principal driver

talk about their experiences and show their grafts growing in. We have also just launched an online game as part of a viral marketing campaign called “Dead Sexy: Invasion of the Bald Zombies” where you shoot hairless zombies.

These kinds of things aren’t lead generators per se, but they help with our search engine rankings and garner us publicity. So to return to your original question; no, we’re no longer focused

“Our advertising and marketing is highly effective.

This is something that Hair Club has really been good at over the years.” on just ‘get the hair; get the girl.’

NHJ: What can the industry do to de-stigmatize hair loss? We ask everyone in the hair loss industry this question because the image of hair replacement is a huge handicap. You will see advertising for the most intimate personal problems and products on TV but hair loss remains hugely embarrassing to men. Why is this?

DP: The stigma relates to hair systems, primarily. You don’t see the same discomfort with hair transplants. We get referrals from hair transplant patients, but when we try to get hair system

try react to this?

DP: It may be too monumental to overcome. To overcome a stigma and change people’s views about something like wearing a hair system would take a budget way beyond anything Hair Club or this industry could put together. It is unfortunate. It is probably something that we have to learn to live with.

NHJ: What was the secret of Hair Club’s early success?

DP: Sy (Hair Club founder, Sy Sperling) was successful with the company because he was a grassroots marketing genius for his time. He wasn’t always the greatest guy at sitting down and looking at a P&L, but he knew how to generate sales. He knew the mindset of a client and how to do a sales consultation. And he was fearless when it came to expanding the company.

NHJ:You’ve used the word “sales” when describing past successes. Is it about “sales” today, or are client relationships different?

DP:Today it is something else. The financial crisis has changed everybody’s mindset. On the positive side, we know that when the economy turns down, TV advertising usually gets cheaper which helps our business. But it also gets much harder to get people to make a commitment to spend $1000 or $2000. We saw that the unemployment rate was climbing, and we began to see a lot of cancellations from clients who were under contract. So we shifted the focus at the end of last year from sales, which have always been the immediate reward side of the business, to client service and retention, which takes more time and discipline to get right.

NHJ:Many of your competitors have grown rich servicing restless Hair Club clients.

19 The National Hair Journal Winter 2009 DP: We were very much aware of that, and we’ve been doing a lot of things to enhance our client service. We’ve spent $16 million dollars over the last three years refurbishing our centers and moving to better locations. We’ve also invested an enormous amount of money in training and development programs. We didn’t even have a training and development department two years ago. Now we have a VP who does nothing but focus on our training programs. In fact, we spent over half a million dollars on something we call “Hair Club Online University,” which is an interactive web-based training program for all of our new and existing employees. It has been customized for our products and customer service procedures.

Finally, we also changed our compensation structure so that it steers our people more toward client service and client retention.

NHJ: In the past, most of Hair Club profits came from new sales. Now it appears that service is a major profit center in its own right.

DP: We’ve always generated 90% of our profits out of our recurring customer base. That’s still true today. Since 2000, we’ve really rolled our clients into annuity memberships and our profits have come from those recurring customers.

NHJ:The cost of recruiting new clients has risen dramatically. How has that impacted your bottom line?

DP:If you look at the amount of money we spend on advertising, which is more than $20 million a year, the investment is not that different from the revenue we generate from new customers on the hair therapy and hair system side. So, if we can break even on new client acquisition, and then convince those customers that our service plans are a good deal for them, we can get them to renew annually, and that is where we can make our money.

NHJ: Is hair as important to men today as it used to be?

DP: I think it is. I don’t think men’s attitudes have changed. They may go up and down based

“Our brand position is to offer all proven hair loss solutions. As of today, that means hair therapy, hair systems and hair transplants.” on trends and who’s in vogue; whether it is Bruce Willis in the movies or Michael Jordan shaving his head. Inevitably, every fashion and movie icon influences someone, but in general men want hair. They would rather have hair than not have hair.

NHJ: Are men today aware of all their choices?

Is a more complex market making it harder for men to make a hair loss decision?

DP: In general, I believe the demand is still there, but it is more fractured. There are so many players in the market today and so many options. A guy today is more drawn to hair transplants than ever before. Our research indicates that is where he goes first. But a lot of people, not only can’t afford the big upfront cost, they may not be good transplant candidates. Someone who is a Norwood 6 or 7 is probably not a good candidate. Many older prospects that come in aren’t good candidates.

They just don’t have enough density. But if they are not candidates for hair transplants, we can certainly offer them other solutions. Almost everyone that walks in our door has tried some other solution before they come to see us.

Probably 90 percent of the people who come in for a consultation have tried a lotion, potion or some kind of therapy before they turn to us.

NHJ: We see Dr. Gaffney’s (Hair Club’s medical director) more and more in your marketing materials. Is this because Hair Club is committing more aggressively to the medical part of the business?

DP: Medical hair restoration has been our main growth engine for the last few years. We are still growing somewhat on the women’s side, but our male business has been mature for several years. We can’t really grow much more geographically. We did open four or five new locations over the last 18 months (second centers in Houston and Toronto, plus an office in Des Moines, IA, Springfield, Springfield, MO and a new facility in the Inland Empire, CA) but we only see four or five additional new locations we can go to in the US because we

need a good population base if we are to make money. We need about 250,000 households in the market for it to make sense for us to open up, and there aren’t many untapped demographic markets that big anymore.

NHJ: What are your international plans?

DP: We put a strategic plan together to go into Europe about two and a half years ago. We were especially attracted to the UK, which is a promising market. In fact, when you look at the markets in Europe, most of them are still using the same business practices the US market had in the late ‘90s. Everyone is still selling a la carte products. They are not very sophisticated in their advertising approach, and they are not utilizing cable TV effectively as a direct response tool. So there is opportunity out there. But at the time, we decided we had too many things on our plate and we made the decision to focus on surgery. In the last two months, we’ve opened a new surgery center in the Charlotte, NC market and partnered with a new doctor in Seattle and Portland. We now manage 24 medical surgical facilities in North America. We are not the biggest hair transplant player in terms of clients and revenue, but we have a very impressive infrastructure.

NHJ:What do you see happening in the women’s market?

DP: It is a complicated market. Men are simple; women aren’t. On the one hand, it’s easy to generate leads from women and it is less expensive. But from a treatment standpoint, it is much more complex. There are literally dozens of reasons a woman might be experiencing hair loss. For men, it’s usually all about androgenetic alopecia. It is very simple. But with women you need to conduct an in-depth examination and be sensitive to lifestyle, emotional and medical issues. That’s when it is so valuable to be able to draw on the experience of the doctors in our network.

NHJ: Do you offer women the same wide selection of hair replacement options that you have developed for men?

DP: Yes. That is very important. Today, there is no single solution for anyone. It’s all about choices and custom programs. We see a lot of women suffering from traction alopecia and that demands a special kind of response. Then there is genetic thinning, but a lot of those women aren’t candidates for hair restoration surgery. And most women are not great candidates for hair systems because they don’t want us to cut down their hair. We can braid their hair and put on a hair system, but it tends to be hot.

It is uncomfortable. There are new “integration” technologies where we can pull their hair through and that’s where a lot of our business is moving. We have adopted what people are calling, “the micro-links process” which is pulling the hair through the matrix and fastening it with tiny plastic beads. That has helped a lot of women who don’t want to shave their heads. It is a complicated business, and it takes a lot more training for the stylist. The services run much longer. One of the reasons we re-located a lot of our facilities over the last few years is because the chairs filled up quickly when we went from one hour and fifteen minute services for men to two or even three-hour services for women! In high demand locations like Houston, even enlarging our facility was not enough, so we opened up a second location in the Woodlands area, a northern suburb.

NHJ: Do you offer women’s wigs, extensions and add-ons?

DP: No; we’ve tested extensions with some of our franchises, but it really didn’t work well for us. We’ve been careful about how we’ve expanded our product line because we don’t want to cannibalize the profitable business that we have. New product offerings can change the mindset of a sales person who may be attracted to the easy sale rather than the profitable sale.

NHJ: What about hair therapy programs?

DP: Our brand position is to offer all proven hair loss solutions. As of today, that means hair therapy, hair systems and hair transplants. We haven’t yet moved into laser although we are looking at it. Before we do so, we want to do our own independent study. There is a lot of good data about the benefits following hair transplants surgery to help jump start the growth of grafts and reduce swelling.

NHJ: Hair Club is known as a well-oiled marketing and sales machine. Is the emphasis on client service something new?

DP: It is a matter of changing the mindset of our people in our centers. We’ve always been very good at the “rah, rah” at our company, making rock stars out of our sales people.

Today, we want to make rock stars out of our stylists and our membership advisors who take care of our existing clients. We had a national

meeting in Phoenix in June and the theme was ‘Dream.Create.Live.’ We named this year, “The Year of the Stylist.” because we really want to put the focus back on the stylists who are the people that are keeping our clients happy and in the chairs.

NHJ: Client service is more than a phrase, it’s a culture.

DP: Exactly. That’s why we brought all our technical supervisors in, along with our managers and stylists. We set up a regional contest, kind of like “Shear Genius” on TV. It was a big deal. Local centers nominated their best stylist who excelled at coloring and styling a hair system. This led to regional competitions, culminating in the onstage finals in front of 300 employees. There was a panel of expert judges which included Gordon Nelson, head of training for Regis, Michael O’Rourke, the founder of Sexy Hair, and our own technical expert, Frank DeCarlo who has been with Hair Club since 1987. The winners got vacations and some really great prizes. It was exciting to see our stylists really getting involved in the culture of the business. We are going to do a similar contest next year.

NHJ: What else can we expect to see from Hair Club in 2010?

DP: There is no big ‘wow’ thing coming around the corner for us. It’s about focusing on the basics of our business. We expect to open up a couple of new locations next year, but that’s it. We are also going to get back on the acquisition bandwagon next year. We were

“When I first started with the company, things were very top down.

Almost all the decision-making was done out of this office in Boca.

The people in the field were basically order takers.

We’ve flipped that.” asked to pull back this year by Regis because of the soft economy, but things are beginning to turn around. Regis recently raised about $300 million through a share rights offer which you may have read about, so we can start exploring new business opportunities again. We also have a few franchise owners who have expressed a desire to retire or pull back, so we will probably buy a few of those back. And we are still interested in buying customer lists from smaller independents as their owners retire.

NHJ: What is the personal contribution to Hair Club that you are most proud of?

DP: Changing the way we manage the company. When I first started with the company, things were very top down. Almost all the decision-making was done out of this office in Boca. The people in the field were basically order takers. We’ve flipped that. We now have four high level regional VPs in the field who have a lot of autonomy. Our managers are compensated like entrepreneurs on the profitability of our business and they have full authority to take care of our clients and do whatever needs to get done to provide top-level service. We may set long term strategy here, but much of our critical thinking now comes from the field.

Our VP of sales and VP of training development work in our Houston center. We see our job as supporting them and delivering information that will support and empower the field.

NHJ: The Company was originally built around Sy Sperling, a charismatic figure-head.

Does a company benefit from having a high visibility personality at the helm?

DP: I have to give you two answers; internally, it’s natural for employees to get excited when the CEO or the President of the company calls them and congratulates them or sends them a gift. I footnote that by saying that the culture, business processes, and people talent in this company is deep and resilient regardless of who is at the top. In the outside world, it’s even less important. As a matter of fact, I rarely give interviews. I refuse. I have had all kinds of magazines call me. This is the first in-depth one that I have given.

NHJ:Thank you Darryl for the insights. NHJ

Automating Your Way to Happiness

By Tiffany Neumann Many salon and hair replacement center owners are wondering if computer software can really help them become more successful. The answer in one word is, ‘Yes.’ Specialized software packages are becoming increasingly popular, and with their special features, it’s not hard to understand why. By taking online appointments, calculating payroll, keeping track of inventory, sharing salon gift service packages, and storing client’s service and product information to name just a few, salon managers can become more efficient and still have more time to focus on their clients.

Mark Jackson, a software developer, notes, “Features such as payroll, commissions, hourly wages and tax deductions are specifically designed to benefit owners and managers. The old days of manually punching numbers into a calculator are over. Now the computer does all the calculations. There is no need to redo or recheck numbers or statements. For example, the software can help owners with tax deductions while calculating an employee’s hourly wages and overtime payments.

Besides being more accurate, the computer saves managers valuable time.”

Salon employees also benefit from special features that can help them become more efficient during the work day. The telephone rings with an appointment. It rings a few minutes later to cancel an appointment, then rings again to reschedule or check for availability. In fact, the telephone never stops ringing. Yes, that is a good thing, but with online appointment booking, clients now have the ability to schedule or change appointments on their own. This makes them happy and frees up your front desk staff. With wait-list features, once an opening becomes available in your appointment book, your manager or receptionist can be quickly notified of clients who can fill these open spots. As a result, there is less likelihood of empty appointment books when you receive cancellations. With the right computer utilities, you can easily promote new services, introduce new staff or fill appointment openings via the internet.

But there’s more to come. Not only will your business begin to run more smoothly, your clients will enjoy the special features as well.

For example, one software system, Salon Iris from CMJ Designs, contains a something called ‘Picture Manager’ which uses before and after pictures to keep track of their appearance and record their preferred hair color and hair replacement designs. Clients can take prints home with them the same day and in some cases, even have the option to import and export your own styling suggestions and photographs. With the ability to review before and after makeover photographs, your clients will gain a better understanding of all your wig, hair extension and hair replacement services. They are also able to share their makeovers with friends and family, which will likely get you more appointments!

Today there are many terrific software systems to choose from. Read the advertisements in your trade magazines; visit software companies at trade shows and ask your associates for their recommendations.

Go from scurrying around your desk looking for an eraser to making a few clicks on the mouse! Technology has made jobs much easier and businesses more successful. Don’t let a messy front desk or a work overload keep you and your team from NHJ excelling.

20 The National Hair Journal Winter 2009 be tastefully discreet, yet very inspiring. Show your potential models; sample photos of what poses you have in mind – to see if they are comfortable with them. If they are, then be sure to discreetly and privately inspect the body parts that you want to use. You will not want to be surprised by surgical scars, birthmarks, cellulite bumps, tattoos or body piercing.

HOW MANY MODELS? You must determine if you want to shoot 5, 10, 15 or more models in one day. Be careful not to plan too much, especially if it is your first photography session. You should never plan to shoot more than

spa photographs require a model with eyes that do not look directly into the camera, but off into space or have their eyes closed. Facial expressions on your hair and spa models will be extremely important. Spa and skincare models must look like they are very relaxed and that they are enjoying the spa service experience. Every model’s salon service must be created to perfection in order to use it in your advertising, marketing, merchandising and PR projects.

Good quality and specifically directed lighting is also vitally important in your art direction.

Your hair lighting can be creative, harsh, bold,

salon ‘stealing’ your hair designs, so do not attempt to steal other’ work. Instead, you can easily create your own images or recreate the look with your own models.

PHOTOGRAPHS FOR ADVERTISING & MARKETING: Save and carefully protect your best photographs for your future newspaper and magazine advertisements. Your marketing pieces will take on an entirely new progressive look to represent your own salon services and your very own work. Your new photographs will help your salon menus, service brochures and website come to life with distinctive full color photography. Use these photographs in point-of-purchase counter cards, tent cards, window banners and every potential seasonal marketing campaign throughout the year. You can frame and decorate your salon with your best hair design, nailcare and spa photographs. Create a special stylebook for the salon reception area that shows off all of your hair restoration, skin, nail and spa service photographs. Add an attractive title page that credits the artistic talents of your salon staff.

MEDIA & PUBLIC RELATIONS: Plan to send these same photographs to national and international hair magazines and stylebooks!

Analyze their stylebooks and what they like.

Consider their themes. Call each publication to ask about their future publishing schedule. Ask if they have any open invitational photography sessions that you can participate in.

Send your photographs with thematic and seasonal press releases about your most unique haircut collections, haircolor, artistry,

15 to 20 models in one day, unless you are just shooting hair designs, where the haircuts and the haircolor have been facilitated earlier the same week. You can shoot ‘before’ makeover photographs that morning or the week before.

You may also want to achieve a few second or third looks on some of your best models.

MODEL COMPENSATION: You can certainly hire professional models from any agency and negotiate their half-day to full day rates. We rarely, if ever have to pay for hair, skin, nail and spa models. You can often barter your hair, salon and spa services with very attractive amateurs that have some limited modeling experience as well as with some professional models. We prefer to offer bartering valuable free salon services for models to pose at the shoot, a $50 to $100 gift certificate and an 8” x 10” color photograph after the photography session as a reward for their efforts.

STAFF MEETINGS: Get your team excited!

Meet with your staff at least one month before each salon photography session to plan every detail of the photo shoot, so there are no surprises. Meet again the morning of your photography session with your staff and the models.

Review everyone’s responsibilities and the desired shots. Discuss all of the desired photographic images and the `looks’ that you will want to achieve. Share specific photographic examples of great hair designs and poses from magazines so everyone understands what they must achieve. Get everyone involved!

THE PHOTOGRAPHY SESSION: Determine if you are shooting in your salon, spa, a nearby beauty school, a dance studio, outdoors on location or in a professional photography studio. Shooting in the salon and spa may be a necessity to properly create and capture the services with very controlled lighting, environment, temperatures and climate. For example, in a salon you can shoot the hairstyles, yet you can also photograph massage and facial services with the actual tables and equipment in place. You can also use a seamless backdrop, positioned in a large open area of your salon.

We usually have everyone arrive at 8 AM to sign required model and talent releases, while holding a meeting for everyone involved that day. We have every model, hair designer, assistant and the photographer arrive bright and early.

We then shoot our ‘before’ photographs for total makeovers by 8:30 to 9 AM, so the hair designers and makeup artists can have the full morning to work on their models. In order to create makeovers, no one should pre-cut, haircolor, highlight or perm the hair before the day of the shoot. After those before photographs are taken, immediately move to the day spa and skincare service photographs, while your hair design team begins the longer haircutting, haircolor and chemical texturizing processes. Plan some extra time for some artistic shots of models in robes or with props like an architectural column or flowers.

Consider the use of an Art Director! Art direction will create your defining image. Some of the best

and national PR Program takes time. The more PR you get ... the more PR you will get!

BE CREATIVE! Don’t be afraid to create a few daring, unique and creative photographs to make your marketing distinctively different and memorable! Use an assortment of eye-catching commercial work with some exotically dramatic shots that are sensual and dynamically creative. We have all seen dramatic ‘editorial’ hair that is perfect eye candy for hairstylists to enjoy. That’s wonderful, if you can create these images while also doing some commercial work that will help your salon make money selling new haircuts, haircolor, highlights, perms and texturizing services. Show off your very best creative talents to make a powerful new artistic statement for your salon.

STEP-BY-STEP: If time allows, create a few step-by-step photographs to share your best hair restoration techniques with the media.

Some professional trade magazines and stylebooks like to publish step-by-step technical instructions, so other hair designers and haircolorists can learn from your innovative and unique techniques. These instructions must be submitted in a word document with the corresponding photographs.

WALL OF FAME: You will eventually be able to create a `Wall of Fame’ to show off your published articles, photographs, honors, ‘PR Hits’ and achievements. Your published photographs will become an achievement that you, your staff and your clients — will be very proud of!

EACH PHOTOGRAPH IS STILL WORTH A THOUSAND WORDS! Make your first impres-

soft, bright, dramatic, color-intensified, and angular, while it can also be very, very commercial. You may want to mix it up.

Experiment, after you have the basic photographs captured.

Take advantage of the tremendous power in expressions of eyes, lips ands faces. Make each photograph tell its own story by sharing an emotional expression of some degree. Someone must be the art director, even if it is you and/or your photographer. They will synergize the hairstyle with the wardrobe, makeup and lighting. If you have a Marketing Services or PR Agency, use them as an unbiased third party for this creative necessity, while you concentrate on the more specific style and shot details.

Always shoot photographs of all 4 sides of each hairstyle design – the front, back and both sides, while ensuring that the hair is perfectly coiffed for each turn.

WARDROBE & PROP ARTISTRY: Be prepared! Assign someone to be responsible for wardrobe or hire a wardrobe artist. Your hair models should have wardrobe selections that will match their hair designs, while not overpowering the photographs. Remember, if it is a hair shoot – the HAIR is more important than the wardrobe. Your skincare and spa models will be in robes, sheets and towels. If you are shooting hand and nailcare artistry models, their sleeves, props and the background textures will be critical. If you are performing a full-body massage service shot, the model won’t have any clothes on, but your towels and robes should be in perfect order.

We suggest that you ask each model to bring 5 to 8 of their own assorted outfits, for the hair design photography. Unless you are specifically shooting for a spring/summer or a fall/winter collection, avoid wardrobe seasonality. Avoid wardrobes with words, logos and religious symbols. Avoid large overpowering jewelry.

Tell them that they do not need to worry about shoes or hosiery as all of the hair design photographs will be from the waist up. Be at the ready with an ironing board, iron, steamer, pins, tape and hair clips to smooth, tuck, bend, hide or push up anything necessary.

MODEL & TALENT RELEASES: Models, hairstylists, makeup artists, aestheticians, massage therapists and the photographer must sign a `Release’ authorizing the potential use of their photographic image for any marketing, advertising and PR work that you may desire in the future. Your photographer or your marketing agency should be able to create these for you. Stylebooks and most national magazines will require verification of photography ownership with model releases.

AVOID USE OF ANY © COPYRIGHT PROTECTED PHOTOGRAPHS: Some salon owners attempt to take photographs out of stylebooks for use in their own local newspaper and magazine advertisements. This is illegal.

Copyright laws protect these photographs!

Published photographs are automatically copyright protected. You would not want any other

makeovers, skincare and spa services to the local consumer newspapers and magazines.

Plan to send your photographs to the editors of professional haircare, skincare, spa and beauty trade magazines.

You should again submit your digital photographs on a CD, by saving them with at least 300 dpi. Carefully label each CD with notes about the enclosed digital photographs using the proper credits with your salon name, city and state as well as the names and titles of your hair designers, aestheticians, makeup artists and the photographer — before mailing them to any publication with an attached contact sheet. If you do not do this, do not be disappointed if they do not publish your credits and credentials in the stylebooks or the magazines.

Attempt to create slightly different photography portfolios for the competing magazines and stylebooks, so they each have some fresh work from your shoots. Include a special personalized cover letter with your press releases and photography portfolios that offers additional customized photography and feature story opportunities for the editors. Most publications will not return your photographic submissions, even if they do not publish them.

You may be able to create your own marketing, advertising and PR materials to promote and use your photographic work. However, it really is best to hire a professional salon marketing services agency or a publicist to help represent your business. Be patient, building a local, regional

sions — your best impressions through professional haircare, skincare, spa and salon photography! Within seconds of seeing any photograph, your clients will make an instantaneous judgment about your hair designs, salon, services, quality and creativity. Be sure to make picture perfect statements with powerful visual images.

Repeated use of some of your best signature photographs will become as important as your salon name and logo while helping to build namebrand awareness and credibility.

Now is the best time to start planning your next photography session!

EDITORIAL NOTES: Larry H. Oskin is one of the professional beauty industry’s foremost experts in salon marketing and public relations. He is a respected educator and shares his knowledge in marketing classes and PR workshops across the nation. Oskin is also a professional photographer and art directs many open invitational photography sessions for his clients. He is president of Art Beautique, a new company dedicated to the fine art of limited edition artwork created through masterful salon and spa photographs and CEO of Marketing Solutions, a full-service marketing, advertising, graphic design, media relations and consulting services agency specializing in the professional beauty business. Clients include salons, day spas, medical clinics, manufacturers and associations from across North America.

21 The National Hair Journal Winter 2009

New Image International Conference 2009

Hollywood, FL. 10/09 - New Image Laboratories invited its worldwide clients and friends to join it at the prestigious Diplomat Spa and resort in Hollywood, Florida. With its beachfront location, infinity pool, and sophisticated facilities, conference locales don't get much better than this.

Other special events included the introduction of New Image’s “Club Women” a new line for women fashioned from Biolon™.

A highlight of the weekend was the Randy Martin Lifetime Achievement Award, created by the Martin family in memory of their son, Randy, himself a business pioneer.

Arnold Zimmerman(center), the first recipient, is seen here receiving his trophy from Kae and Leslie Martin.

Mike Montemuro was on hand to share his sales and marketing insights, supported by Tom Scotti and a team of other top stylists and educators.

As always, the education, the food, the friendship and, yes, the dancing were all outstanding!

New Image founder, Les Martin with company president, Tony Sciara.

22 The National Hair Journal Winter 2009

Hair Society News www.nationalhairsociety.org

The Society is maintaining its Welcome to our Winter 2009 special “Ambassador” program coverage of The National Hair which invites members to submit Society. This year has definitenews, and host special events in ly been challenging for everyone. their area.

Our European So your Society plans to start off Ambassador is Hans Diks. In the 2010 with some exciting new States, we have Cathy Ingoglia tools that will put your business and in Canada it is Michael back on track... and keep it growHeather Simon Diebold.

In 2009, the Society ing. Meanwhile, please accept our best wishes for the holidays... and have formed a special People of Color chapter to help members understand and respond a Happy New Year! to the needs and business opportunities among men and women from different www.HairAuthority.com The first business-building tool is ethnic groups. The chapter comprises www.HairAuthority.com, a new online Gloria Ford, Edmarie Masters, Bridget directory that will send men and women Winton, Yvonne Solomon, Violet Demao in search of hairloss solutions to your store and Andrea Hayden. You can follow Hair or website. It will be unveiled in January Society news through this page which has 2010. The website will be the most com- been set aside for members and the prehensive, unbiased and user friendly monthly newsletter. If you would like to search tool on the Internet and will give contribute to The National Hair Society your potential clients the kind of informa- please let us know. Our mission is simply tion they need to find a qualified hairloss to provide information and support that professional. Look for more information will help you grow your business and to have fun in the process! in January 2010.

New Board of Directors The National Hair Society is proud to announce that it has formed a board of directors to advise it on important issues and to ensure that it is responsive to all its

members’ needs. It was always the intent of The Society to be driven by its members, and in 2010 that becomes a reality. The first board is drawn from leading educators and authorities in hair management:

From Left to Right: Bobbi Russell, Jimmy Toscano, Lucinda Beaty, Lisa Zimmerman, Ane Rasch and Anke Becker.

INTERVIEWS WITH OUR USA MEMBERS Monarch Hair Systems located in Monarch Beach, CA near Dana Point, CA is owned by Michael Rupp. Michael is our latest retail society member. Michael has been in the hair replacement industry for 20 years and has owned Monarch Hair Systems for 20 years. He contacted The National Hair Journal a couple of months ago because he would like to sell his salon. He is 65 and he would like to retire.

Michael started as a barber in 1970 and practiced Michael Rupp for 20 years before his training in the hair replacement industry in 1990 with International Hair Goods. He decided that adding hair replacement options to his salon would provide opportunities as a new profit cen-

Dennis Barber Salon in Vacaville, CA is owned

by Dennis Pecorella. He has been in the industry for 29 years. Dennis is able to provide TriCare Insurance to his clients that need Cranial Prosthesis for any medical related hair loss at little or no cost to the client.

The Dennis Barber Salon has 5 employees.

His salon is 1300 square feet and he has 3 private rooms, one for hair replacement and Dennis Pecorella laser services and an open station where he does hair styling if the other rooms are occupied. He has no plans

Laser Treatment Room

Reception and Waiting Area

to expand his business at this time.

One of the biggest challenges that Dennis faces is getting new clients. He has been in his location for 15 years and has a very loyal client base and reputation. Most of his clients are on contracts but they are only attracting one to two new clients a month and they do a fair amount of advertising which is expensive. However, Dennis stated that considering the economic situation, he really can’t complain and he feels very fortunate that business is as good as it is. Dennis has been offering laser therapy for over a year and all types of hair replacement for men and women which include; permanent attachment, clip on and daily wear. He also offers extensions, cranial prosthesis for medically related hair loss. He covers the basic services such as perms, coloring, cutting and styling. Dennis has an extensive inventory of hair care and hair re-growth products. He also sells lasers for home use.

The percentage of male clients that visit the salon are 60 percent and the percentage of female

Changing Images in Houston, TX is owned by Jackie Donovan. I had the opportunity to interview Jackie at the Ft. Lauderdale, FL airport after the “Cruising with the Stars” conference.

Our flights were delayed and I thought it was a great time to speak to Jackie Donovan Jackie about how she got involved in the hair replacement industry.

Before Jackie started cosmetology school, she

The Reception

ment clients, with a lab in back of the shop. All the clients that are serviced by Monarch Hair are men. Monarch Hair Systems is the only professional men’s hair replacement in southern Orange County so there is not a lot of competition.

Styling Room

worked for Southern Importers in Houston, TX a wood shop. She was involved in the creation of wood moldings and display wood products for department stores, tables and racks for shoes. Southern Importers gave Jackie a two Inside Styling Area

Front of Monarch Hair Systems

ter. It has proved to be successful. Monarch Hair Systems is a full service hair salon with six stations that are rented out by the hair stylists.

Michael runs the hair replacement part of the business with a full time assistant trained to do all services. He has 98 hair replacement clients. He recently signed a new lease last November and it is a 2 year lease with a 1 year option with favorable terms. The owner of the shopping center recently spent 10 million dollars to renovate the outside. The salon is located in a very upscale community within Orange County, CA. It has a great view and is across from the Ritz Carlton salon has 2 private stations for the hair replace-

Over the years, Michael has been successful at providing services to clients that were already wearing hair and were dissatisfied with their current providers. He has used the local newspaper, placed many ads, and utilized the yellow pages and his website to obtain new clients. If you are interested in purchasing the salon, please contact Michael for further details at 949-249-7641 and please visit his website at www.monarchhair.com WashArea

Outside view of Salon

Massage Room

clients is 40 percent. The new clients that are coming in for hair replacement and laser therapy are women so the percentage is gradually chang-

story house to do the wood work for about 5-6 years. The business expanded and so the company had to add onto the building to provide more space. Southern Importers merged with a Louisiana company but it fell through. The company had to move location and so Jackie took her employees to a new location and expanded the business to include wood products for business home items, TV cabinets,

ing. The best marketing strategies that have worked for Dennis over the years have been advertising in monthly magazines in his area and

Hallway

direct mailings. He doesn’t receive a lot of response from ads in the newspaper. He is getting ready to do a 3 month run of on-screen advertising at the theatre.

Dennis gets a very high response from his website. Thank you Dennis for sharing your story with The National Hair Journal.

Please visit the website at www.hrscorp.com.

bookshelves and fences. Circumstances that were beyond Jackie’s control led to the downfall of the company.

Jackie always had an interest in cosmetology.

She sold the building to use the income to attend school. She earned her license and went to work for a large salon in a department store.

After that she went to work for a barber shop.

The lady that owned the barber shop retired and left behind a clientele of men that wore hair. Frank Prasek from Hair Designers of Houston, in Houston, TX helped Jackie when she first started out in the industry for about 5 years. She wanted to expand her business so she began looking at a mall that had medical offices in an area outside of Houston. There was a salon in the mall that the owner wanted to sell and there was a lot of potential because the salon had a lot of clients. Jackie decided to take over the lease. It was only 12 miles away from the previous location. The business expanded and the salon attracted a lot of upscale clientele. Jackie attended a lot of business community events and received a lot of referrals.

One of her clients at the time asked if she had wigs available for cancer patients. Jackie decided to attend an IHI conference in Ohio to learn more about the women’s market in the industry and decided to get started in helping women in the hair replacement industry who were suffering from cancer. She had 3 locations running at the same time but decided to just have one location. Jackie sold Rene of Paris and did really well. After several years she decided to carry less synthetic hair and concentrate on selling human hair to her clients.

Jackie served on the AHLC as a board member for 5 years. She participates in the Look Good Feel Better Program and currently trains people around the country. She has 3 part time employees, which include herself, her daughter and Jennifer Berger. Her services include integration systems, extensions, wigs and custom molds. She is always searching for better ways to help her clients. Her clientele is 50 percent men and 50 percent women. She obtains a lot of business from her website, referrals, and the phone directory. Thank you Jackie for sharing your story with the industry. Please visit the website at www.changingimages.net.

ON RITE MARKETING MEETING

On Rite presents a full house of new ideas at Las Vegas marketing meeting

Las Vegas, NV. 10/09 - Over sixty people representing some of the most progressive marketing-driven hair replacement studios in the country gathered at the Venetian Resort in Las Vegas on October 12th and 13th for the On Rite Company’s annual marketing meeting.

Rhonda McCarthy presented ‘Recover with Confidence,’ a turn-key solution to help studios succeed in the women’s medical hair market.

Assisting her were Dave Barker, owner of HRS of Jacksonville, and Bob Rider, owner of HRC in Dayton, OH who were among the first studios to take advantage of this program.

23 The National Hair Journal Winter 2009

lier marketing with an updated look and more upscale feel, it was enthusiastically received by studio owners. Presented by Rhonda McCarthy and Steven DiManni, the Cascade Effect consists of four :60 TV commercials, four :30 TV commercials, and one two-minute TV commercial that can also be used as an in-studio video or featured on a studio’s website.

Other celebrity guests included Bobbi Russell of ‘Hair Therapy for Women,’ Jay Benjamin of ‘Adrian’s Hair Studio’ as well as Candy Rangel and Isaac Sanchez from ‘Hair Again’ in Fresno, CA. Jay explained that “Out of the Box Marketing” could be many things, from showing a video on closed circuit television in a health club to establishing a booth at a county fair, street fair or other event. “The idea is to go where the prospective customers are,” said

Studio owners on the dais for a give and take during the Studio Forum

Steve Levy introduces Alicia Stevens of Genesis II

Over sixty owners and managers gathered to view the latest in marketing

New product offerings and new in-store signage lined the walls of the marketing meeting

Benjamin before introducing two multi-therapeutic radio commercials and a multi-therapeutic video that could be used as a point of purchase tool in a DVD player or played in closedcircuit environments. Jay recounted his own experience running radio commercials in Ft. Lauderdale similar to the multi-therapeutic spots being offered by On Rite: the response was so great he was forced to use a back-up phone system whenever the commercials aired.

The second day of the conference opened with presentations by Barbara Goldstein and her digital media associate, Jerry Schroeder. Studios learned how to optimize their websites through both organic (SEO) and pay per word (SEM) practices. The use of social media was also discussed, with the presenters suggesting that this complex issue is best left to professionals who are well-versed in these disciplines.

The final presentation of the meeting concerned the new “hairloss.com” website. Hairloss.com has been re-conceived as a social networking website, allowing men and women with hair loss to interact with one another, much like “nontopic” social networks such as Facebook and My Space. The concept behind hairloss.com is not to associate it in any way with the On Rite

Company, nor to present it as a pro-hair restoration forum. The ultimate goal is to become the preeminent online destination for those experiencing hair loss, whether those individuals seek information or want to interact with others in a similar situation. Said Virg Christoffels of Virg Christoffels & Company in Sioux Falls, SD, “I believe that a rising tide lifts all boats, and that if hairloss.com improves the perception of our business, then everyone will benefit.”

The meeting concluded with renewed determination by studio owners to sharpen their marketing efforts. Said Ron Zieve of HRS of Atlanta, “It’s hard not to be enthusiastic about our business when you realize that there are a lot of opportunities that we have yet to explore. I’m NHJ ready to go.”

partners obtain new leads. There is a marketing program to target women called Cascade Effects with beautiful new models styled by Bobbi Russell. We also unveiled what we are calling our “Out of the box” marketing program. This is a complete package and strategy to “Go to where the customers are” and capture leads with minimal investment. We introduced two new “hard-hitting” radio commercials using laser and topical therapies to reach new business, and we added new commercials to our “Corrective Hair Solutions” program. All in all, an exciting meeting with lots of new and creative ideas to get ahead in these challenging times.

DS: During the two-day session, we brought our top clients on stage to talk about what’s going on and what’s working for them. This is one of the most valuable parts of the program and gives us new ideas for the upcoming year.

NHJ: What are clients asking for most?

DS: They want more first-time customers. They just want to know, “How can I get a new customer in my door so I can provide a service? And how can you, as a wholesale distributor, help me do that?”

NHJ: Why is marketing more complicated now? Is it simply the economy, or changing consumer attitudes towards hair loss? Is it competitive products, or the rising cost of advertising?

DS: Consumer attitudes have changed. The consumer today has more hair replacement choices. We have entered a more mature market and must find better ways to approach it. Then there’s the advertising challenge. It’s the one thing all business owners

know they should do, but they don’t always act on it.

NHJ: If the advertising dollars aren’t there to generate new leads, what are the other drivers of new business?

DS: New products. They’re looking for the next big technology. But with hair system and wig production, changes tend to be incremental. However, there are other things that a retailer can do to generate leads without big money. Retailers should think out of the box and consider new creative concepts and guerilla marketing techniques. On Rite has developed such marketing concepts that will assist retailers in achieving their goals.

NHJ: You started off saying that a key concern is consumers’ attitudes towards hair loss. How do we solve that?

DS: Educational websites like hairloss.com and other social hair loss and alopecia websites are a good start.

RM: We’ve got to come out of the closet.

Historically, our industry has been very secretive and embarrassed about what it does. We would like to find a way to help our potential customers by making it OK for them to do something about their hair loss. It is unacceptable in the times we live that a man or woman can “fix” any other part of their body – but doing something about their hair loss is still embarrassing.

DS: We are in a niche market and we don’t advertise the way other industries advertise. It’s a small industry; we don’t have the dollars to promote ourselves like larger industries.

NHJ: Why is it that so many other intimate problems are openly discussed on television and yet thinning hair is taboo?

DS: The fact that you can see a Cialis commercial in primetime when your kids are watching TV shows that big money took the gamble and said, “This is gonna be accepted.” And they were correct; it was accepted. Maybe people don’t walk around talking about “ED,” but they’re watching the commercials… and they’re making phone calls. We need to find a way to overcome the issues that we face as an industry.

NHJ: Rhonda, tell us about “Recover with Confidence.” What is it, and why was it such a hit?

RM: This is a program whose time has truly come.

There is a whole segment of women who experience hair loss due to medical treatments like chemotherapy. These women want and need a safe, private place to go to with a quality product and people who understand their needs. Their nurses want a place to send patients where they are confident they will be taken care of. That is “Recover with Confidence.”

Bobbi Russell of Hair Therapy for Women addresses the conference

Next on the agenda was an update to “Corrective Hair Solutions” with two new television commercials, one targeting the growing market for multi-therapeutic solutions; the second a harder-hitting spot for the men’s non-surgical hair replacement segment.

The “Cascade Effect,” On Rite’s first new women’s program in five years, was showcased next. Combining the best of the company’s ear-

“RECOVER WITH CONFIDENCE” In addition to its regular sales conferences and workshops, once a year the OnRite Company invites its major accounts to a strategic planning session in Las Vegas to discuss industry trends and new marketing materials. This year over 60 executives participated. The National Hair Journal met with C00, David Schwartz and Top Business Development Executive, Rhonda McCarthy to learn about the highlights.

NHJ: Every year, your top retailers join you in Las Vegas for a series of strategic planning discussions.

What were the highlights in 2009?

David Schwartz: We go to Vegas for two reasons; to get everybody together to talk about the state of the industry and to strategize and plan our priorities for the next twelve months. OnRite creates marketing programs to help retailers grow their business and this year we presented a number of new programs. We launched new commercials for the men’s market as well as new advertising for women… we’re pretty much the only company in the industry today that routinely creates new radio and TV commercials. We also announced a new medical program that Rhonda McCarthy developed and is in charge of called, “Recover with Confidence.”

Rhonda McCarthy: Judging from the response we received, “Recover with Confidence” will be extremely successful. It was the star of the show. We also introduced other creative programs to help our

Our “Recover with Confidence” team works with the medical community to refer clients to our partners’ businesses. We do all the upfront work; networking, setting up meetings and presentations with medical providers. When we’re done, our partners have a medical business.

“Recover with Confidence” partners are a part of this “tight knit” community of doctors and nurses committed to NHJ helping women through this journey.

24 The National Hair Journal Winter 2009

Precision Shears Are you still on the cutting edge?

Hawthorne, CA. 11/09 - A high quality dry cut shear is an essential tool for every professional hairstylist. In addition to being vital for executing the precise techniques for a dry cut hairstyle with a modern, sculpted look, a dry shear is essential for finishing any traditional wet style. Passion Beauty founder Daniel Funk notes, “When I watch professional hairstyling artists onstage during their finishing process, they always use a dry shear to add wisps or to remove weight.

Dry shears are an important finishing tool, allowing you to accurately cut hair in its natural, free flowing state.”

There are three key differences between a shear designed for wet cutting and one designed for dry haircutting techniques.

The blade’s radius, the edge and the width of the blade are the components that factor into a dry shear’s design. Dry shears have a slightly greater radius, causing the hairs to spread out and not group together at the cutting point, so that hairs are cut individually. Funk notes, “A dry shear has more weight and balance towards the blade as opposed to the pivot. The idea is that dry hair is more difficult to cut, so the increased leverage allows the hair to be more easily sliced through.” A dry shear’s edge is also finely honed, with a cleaner lip so that it cuts precisely. Finally, a wider blade absorbs vibration and transmits less cutting noise to the hand, compensating for the brittle feel of cutting dry hair. “Wet hair is softer and easier to cut; dry hair is resistant to being cut and a wider blade provides leverage and power,” Funk says. These three elements contribute to creating a shear that effectively cuts and shapes dry hair.

The versatile new Arc Dry Cut Shear is perfect for finishing work and dry haircutting techniques; it can also be used on wet hair in a pinch.

Yet tempting as it may be to have one multi-purpose shear, it is still best to diversify. Because of the blade width, dry shears are heavier than traditional wet shears, so some hairstylists may find them difficult to use full time. It is also harder on a shear to be used as a multi-purpose tool, being taxing to the edge and contributing to diminished performance.

Many stylists are now specializing in the unique trend of dry cutting, which is performed by first drying and straightening the hair, so that it is more easily sculpted into a contoured and structured style. Dry cutting techniques take styling capabilities to another level, allowing for dimensional hairstyles that function better and last longer.

The Arc Dry Cut Shears are crafted from high quality Japanese steel. In Japan, metalwork is a well honed trade practiced by skilled craftsmen, often in a family business that may have been handed down for generations. The manufacture of Japanese shears involves a multitude of steps to create a razor sharp edge, providing the user with a powerful, yet smooth cut. The important considerations in the manufacture of the shears are the quality of steel, heat treatment and the process of hardening. Stainless steel is used for the base and alloys are added to make the steel more durable Funk notes, “Because the cut is based on finesse and not raw power, the shears perform with less fatigue for the user. Due to the sharp edge, these shears will offer a more precise haircut to create demanding hairstyles.” He adds that every hairstylist should include finishing work in their designs, “It matters a lot to clients when finishing work is done. The right tools add creativity and possibility.”

For more information, check with your local beauty supply distributor or to find a local distributor contact Passion Beauty at 800-3627071 or visit www.PassionBeauty.com.

THE NATIONAL HAIR JOURNAL Mission - Mission - To provide hair-management professionals from all disciplines with accurate information that will allow better business decision-making and facilitate superior client service.

Editor In Chief Christopher Webb cwebb@nationalhairjournal.com

Creative Director Avi Roth aroth@nationalhairjournal.com

Technical Advisors Isaac Brakha Dr. Shelley Friedman Larry Oskin

Contributing Correspondents James Britt Marilyn Dodds Steven Dimanni Dawn Harrison Phil Fennell Gloria Ford Bobbi Russell Larry Sellars James Toscano Marilyn Wayne

Society Membership Director Heather Simon hsimon@nationalhairjournal.com

NE Regional Director Catherine Ingoglia

CA Regional Director Edmarie Masters

European Director Hans Diks SUBSCRIPTIONS To subscribe to The National Hair Journal, send an Email to subscriptions@nationalhairjournal.com or visit www.nationalhairsociety.org/store. You can also write to us at the address at the bottom of this column or call 1-951571-3209.

ADVERTISING To place an advertisement or request a Media Kit, contact us at advertising@nationalhairjournal.com or call 1-951256-4385 HOW TO CONTACT US National Hair Group 39252 Winchester Rd., # 107-383 Murrieta, CA 92563. Telephone: 951-541-2809 news@nationalhairjournal.com subscriptions@nationalhairjournal.com advertising@nationalhairjournal.com LEGAL NOTICE Notice: The National Hair Journal , Issue number 51Copyright ©2009. All rights reserved.

The views expressed herein are those of the individual author and are not necessarily those of The National Hair Journal, its editor, directors, or staff. All authors have been asked to disclose any and all interests they have in a product, procedure or device referenced in, or otherwise potentially impacted by, an article. The National Hair Journal makes no attempt to validate the sufficiency of such disclosures and makes no warranty, guarantee, or other representations, express or implied, with respect to the accuracy or sufficiency of any information provided.

To the extent permissible under applicable laws, The National Hair Journal specifically disclaims responsibility for any injury and/or damage to persons or property as a result of an author’s statements or materials or the use or operation of any ideas, instructions, procedures, products or methods. Moreover, the publication of an advertisement does not constitute on the part of The National Hair Journal a guaranty or endorsement of the quality or value of the advertised product or service or of any of the representations or claims made by the advertiser.

All articles and editorials become the property of The National Hair Journal and may be edited for clarity and space. By allowing your tips, interviews and testimonies to be used in The National Hair Journal, you are giving The National Hair Journal permission to use your quotes and related materials including but not limited to model photographs and the likes. The National Hair Journal will gladly accept unsolicited material for review and submission for possible print publication. We encourage clinics and salons to submit photos from events, testimonials and happenings within the hair replacement, hair restoration, and beauty industry via email to cwebb@nationalhairjournal.com for publication. Please note, The National Hair Journal does not pay for the use of submitted material we select for publication, but we will give credit research, written articles and photography. If credits are to be given for photos, stories, literature and other materials submitted it is the sole responsibility of the submitting party of said materials to include all pertinent information listed herein for which acknowledgement is expected. Unless otherwise specified, all materials submitted to The National Hair Journal becomes intellectual property of The National Hair Journal. Any material that is to b returned to the submitter must be pre-authorized and submitted with a self-addressed, return envelope/package and sufficient postage.

The National Hair Journal is a privately published publication intended to facilitate the free exchange of information among professionals within the hair management industry. Its contents are solely the opinions of the authors and are not formally “peer reviewed” before publication. The contents of this publication are not to be quoted with the above disclaimer.

The material published in The National Hair Journal is copyrighted and may not be utilized in any form with the express written consent of the Editor(s).

The National Hair Journal is published Quarterly, Copyright © 2009 by The National Hair Journal, LLC, Single copies of most past issues of The National Hair Journal are available prepaid at $10.00 per copy.

Special issues are more. The National Hair Journal serves primarily the hair replacement , hair restoration and personal enhancement industries. It sponsors conferences and trade events and produces analysis & marketing research on the hair replacement and restoration industries. Postmaster: Please send address changes to: The National Hair Journal, LLC 39252 Winchester Rd., #107-383, Murrieta, CA 92563 Printed in the USA.

25 The National Hair Journal Winter 2009

Cruising with the Stars Why did it have to end?

If four days under Caribbean skies in the company of some of the best educators in the land sounds good, then you really should have gone "Cruising with the Stars."

Guests came from all four corners of the United States and Canada and even from Europe. They were drawn to "Enchantment of the Seas” to learn the secrets of Hollywood legend, Erwin Kupitz, build skills with top stylists like Jimmy Toscano and Bobbi Russell and learn about new technologies from the industry leaders.

The National Hair Journal was there also to help readers look beyond the headlines and understand the trends that are shaping the future of the hair replacement and restoration market. The National Hair Society, which had previously hosted a "Technology Expo," was on hand to present guest speakers Don Ozendowsky (ScalpLaser), Jerod Prindable (Hair Analytics) and Randy Veliky (Lexington International) who outlined the future of light therapy and explained that this is a therapy that belongs in every salon and clinic European

Hair introduced its new "Pure by Nature" collection. It was exciting for guests to see industry experts working together to teach their techniques and pass on years of experience. At one point, Jimmy, “The General,” Toscano was demonstrating his bonding technique on popular educator and master stylist Gilberto Pebles while stylist to the stars, Erwin Kupitz looked on. That's what you might call, "Power teaching!" In other sessions, Teresa Valenzuela shared her ventilating skills and Lynda Collier outlined the special needs and opportunities in the medical hair loss market.

Cruising with the Stars was designed to give visitors the opportunity to meet their presenters and get to know them better on both a business and personal level. And that is precisely what happened. In the evening, in lounges and bars across the ship, small discussion groups could be found reviewing the highlights of the day.

And when guests were not in the classroom, they were ashore exploring the ports of call or diving in the crystal-clear waters off Cozumel.

By the last day, over 60 people had made new friends, networked among themselves and promised to do it all again next year!

26 The National Hair Journall Winter 2009

Bald Lady in the Headlines!

Alopecia sufferer is prize-winning inventor Jodi Pliszka, a long time Alopecia sufferer, recently celebrated her 43rd birthday – 20 years with hair and 23 years without!

“God gave me a shiny, bald head, an education and a voice to make a difference in this world,” says Jodi. “It's a blessing to know your purpose in life… and losing my hair helped me find mine. Jodi, a Clinical Therapist, Award Winning Author, Motivational Speaker is also the inventor of Headline It!® and today she is changing lives up and down the country.

Jodi has never let alopecia keep her from leading an a c t i v e lifestyle. As a m o t h e r, triathelete, and black belt in tae kwon do, she found that wearing wigs during physical activity made her sweat excessively.

Perspiration, salt and oil would build up on her scalp and roll down into her eyes, putting a temporary halt to her activities. This was unacceptable not only to Jodi, but to every other wig wearer who wanted to live a normal life. So Jodi found herself on a mission to find a solution; something that would still let people like

her wear a wig or hat, but stop the problem perspiration. Her quest started as you would expect with a review of all the products on the market; but she found nothing geared toward wig wearers. So in 2001, out of sheer necessity Jodi decided to design her own product and started work on a prototype. She called it Headline It! because it was a disposable liner made of a special material that would wick away perspiration and keep the wearer comfortable and protected.

In 2003, Jodi received her first patent and not long after, the producers of the ABC show, American I n v e n t o r ,” invited her to appear on television and compete with other inventors to win additional funding and continue development of her product line. ABC believed Jodi’s product could make a real difference in people’s lives and help them during difficult times. Of course, Jodi jumped at the opportunity to demonstrate Headline It! in front of millions of viewers and her efforts paid off when Headline It! was voted ‘runner up’ and she was granted the funds she needed to continue her dream. But it didn’t stop there.

Jodi was also introduced to people with the specialist skills she needed to move forward;

people who understood the physical properties of absorbent tissues and their compatibility with human skin. And people with experience in product packaging and marketing, not to mention suppliers who could further enhance the product and extend her customer base.

As the project advanced, Jodi tested Headline It! among actual wig wearers and was encouraged by their positive reviews. People praised its comfort and ability to absorb oil, salt and sweat. It keeps the head cooler in the summer and warmer in the winter, as well. The back of the liner was carefully dyed tan, to hide well under any wig, hat, scarf or headwear item, making it discrete.

As Jodi studied the comments and suggestions, she realized that Headline It! could do much more than help wig wearers. So she tested it on the 2/24 division of the US MARINES along with firefighters and found it kept their goggles from fogging up and helped them stay dry under their helmets. They praised it as a life saving measure. From there, it was only a small step into the world of sport, especially equestrian events, where protective riding hats are worn in case of a fall. And in keeping with its expanding customer base, the brand’s motto also evolved and became, “Why Sweat It, Headline It!" Since then Headline It! has been chosen as Winner of Best Health and Wellness product, featured on ABC TV’s “American Inventor Show” and even used by athletes in the 2008 Beijing Olympics.Meanwhile, John Reynolds founder and president of Jon Renau, a California based women’s wig company, became aware of Headline It! and believed it could benefit his customers, particularly women wearing wigs because of a medical condition or treatment. So he called Jodi and they spoke at length about Jodi’s background, the industry and her personal mission. It was a chance encounter that was meant to happen.

John was captivated by Jodi’s commitment and enthusiasm.

Jodi was excited by John’s connections within the hair loss industry. It wasn’t long before they decided to work together and Jon Renau was granted sole distributorship rights for “Headline It!” in the medical market. Jon Renau and Jodi Pliszka are confident this product will be seen as a lifelong solution to a lifeNHJ long problem.

PEOPLE ON THE MOVE

Jay Benjamin joins New Image West Palm Beach, 11/09 - New Image is pleased to announce the addition of Jay Benjamin as National Sales Manager. Jay comes with a wealth of knowledge and experience, having been in the wholesale side of the business for over ten years.

Jay owns a hair replacement studio with his wife, and is uniquely qualified in product knowledge in addition to being proficient in sales and marketing. He has been featured on MSNBC, NBC, ABC, and CBS News locally and nationally as a hair loss expert. We are very excited to welcome Jay to our professional staff at New Image and are anticipating great success as he helps retailers across the NHJ country grow their businesses.

27 The National Hair Journal Winter 2009

28 The National Hair Journal Winter 2009