2010 Fall

Feature

Centerfold

Feature

Feature

Eyes Rite!

Aspirational Hair

Fantasize!

Hollywood legend

Michael Napolitano reveals the secret behind Hair U Wear

Another fabulous poster to get you dreaming!

Erwin Kupitz takes you centre stage

Taking a closer look at the new On Rite.

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The National Hair Journal VOLUME 14 NO. 55

THE OFFICIAL PUBLICATION OF HAIR FITNESS , HAIR REPLACEMENT AND RESTORATION

LOOKING GOOD PBA Salon & Spa Index Rises Again Fueled by Stronger Sales and Customer Traffic Levels, the Current Situation Index Soared to a New Record High in the Second Quarter Phoenix,AZ, 08/2010 - Sales and customer traffic levels continue to gradually increase as the Professional Beauty Association's (PBA) Salon & Spa Performance Index(SSPI) hit a record high in the second quarter of 2010. The "Salon & Spa Performance Index" - a quarterly composite index that tracks the health of, and outlook for, the U.S. salon/spa industry - stood at 103.6 in the second quarter, up 0.5 percent from its first quarter level and continuing a rising trend.

"The beauty industry touches just about every consumer every day in some form or another.

As the broader economy continues to show signs of rebounding, the "Salon & Spa Performance Index" from the Professional Beauty Association is a good measure of how consumers are returning to normal, everyday products and services as their optimism increases," states Sam Leyvas, Associate Executive Director for the Professional Beauty Association.

Dreamcatchers Nightmare Paris Hilton Sued for Wearing the Wrong Hair Extensions Beverly Hills, 07/2010 - A bad hair day is not good. A wrong hair day is worse. Hairtech International Inc. is suing Paris Hilton for break-

The SSPI is based on the responses to PBA's "Salon & Spa Industry Tracking Survey" which is fielded quarterly among salon/spa owners nationwide on a variety of indicators. It is constructed so that the health of the salon/spa industry is measured in relation to a steady-state level of 100. Index values above 100 indicate that key industry indicators are in a period of expansion, while index values below 100 represent a period of contraction. The Index consists of two components - the Current Situation Index and the Expectations Index.

The Current Situation Index, which measures current trends in five industry indicators (service sales, retail sales, customer traffic, employees/hours, and capital expenditures), stood at 102.2 in the second quarter - up 1.8 percent from its first quarter level. In addition, the Current Situation Index rose above 100 for the second consecutive time, which represents expansion in the current situation indicators.

With the record rise in the Current Situation Index, a majority of salon/spa owners reported higher service sales in the second quarter.

In addition, the industry's labor indicators registered their strongest performance in the six-quarter history of the SSPI, with staffing levels and employee hours increasing.

Source: Professional Beauty Association "Salon & Spa Tracking Survey,"

And the Winner is...

Finn Waldorf Receives Randy Martin Lifetime Achievement Award Lisbon, Portugal. 06/2010 - Mr. Finn Waldorf was awarded the Randy Martin Lifetime Achievement Award during New Image’s

Beauty Industry Takes a Stand Against Domestic Abuse Phoenix, AZ. 07/2010 - Cut it Out is a program of the Salons Against Domestic Abuse Fund dedicated to mobilizing salon professionals to fight the epidemic of domestic abuse in communities across the United States. Cut it Out builds awareness of domestic abuse and trains salon professionals to recognize warning signs and safely refer clients to local resources. Salon professionals have a unique

out looks and decided hair extensions were a sure way to get it. “I am lucky to have long, pretty, brown hair, but I’ve always wanted more length, body and volume.” She received a makeover and full-head, human hair extensions from Kathy Williams, a member of the National Education Team for SHE Hair Extensions.

and trusting relationship with their clients. The intimate work of a salon professional creates situations in which many telltale signs of domestic abuse can be identified. Domestic Violence Awareness Month has been observed in October every year since 1981.

WILMINGTON, DE - Kayla Martell, a victim of alopecia since age 10, was crowned Miss Delaware on June 12th, 2010. She will go on to represent Delaware in the Miss America pageant in December of this year.

The 21 year-old college student made no secret of the challenges she has faced without hair through her teens and early twenties. In fact, rather than hide the fact, she made a point of it during her oral presentation prior to being crowned Miss Delaware. Kayla said, “I hope that my legacy will be that I have touched as many lives as possible throughout the state of Delaware…. I hope that people throughout the country will see that a beauty queen can come from all walks of life and in many different packages.”

Happy Birthday!

Bachelor Pad brings back bachelors and bachelorettes to compete for affection and a big cash prize. With so much at stake, Ashley wanted knock-

Cut it Out

Miss Delaware

While salon/spa owners might have a less optimistic look for the economy, however the outlook for capital spending activity has remained steady in recent months. In fact, 56 percent of salon/spa owners expect to make capital expenditures for equipment and remodeling purposes in the next six months, a 1 percent decrease from the first quarter.

Hair Extensions help Ashley Elmore battle it out for a chance at love and a quarter of a million dollars on ABC’s hot new summer series, Bachelor Pad

ing her contract with them by allegedly wearing competitors hair extensions in public and is seeking $35 million is damages. Hairtech is the manufacturer of Dreamcatchers, which were launched in 2007 with Hilton as model and spokesperson.

She promoted Dreamcatchers at beauty shows and celebrity events is still featured on the company’s website with the invitation, “Want to have Paris Hilton in Your Salon?”

FALL 2010

The Expectations Index, which measures salon/spa owners' six month outlook, considers the following five industry indicators: service sales, retail sales, employees and hours, capital expenditures, and business conditions. With an Index decline of 0.7 percent from the first quarter, salon/spa owners showed less optimism about overall industry growth and future economic conditions. Although, 80 percent of salon/spa owners said they expect higher service sales within six months and have maintained an overall very positive outlook since the SSPI survey began.

MORE IS BETTER

Mahopac Falls, NY. 08/2010 - Ashley Elmore, celebrity model and actress, is pulling out all the stops for ABC’s hit television show, “Bachelor Pad.” Ashley recently appeared on “The Bachelor” and Jake Palveka, described her as, “the most positive person he has ever met.” He also claimed that she has a smile that is contagious. Ashley received notoriety for her creative approach to getting the bachelor’s attention by wearing a flight attendant costume.

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Annual International Symposium for his outstanding contributions to the hair replacement industry. He decided to be a hairdresser at the early age of 14 and by the age of 18 he had opened his first salon, making him the youngest salon owner in Denmark. Mr. Waldorf is a pioneer of ladies synthetic prosthesis in Europe, designing his first soft prosthesis collection in 1968. He is also the founding member of IHPA (International Hair Plus Association). His vision, energy and also goodwill led him to introduce better products in Denmark, Germany and the Nordic Countries.

House of Waldorf became one of the top and most recognized hair replacement centers in Europe and has been in business for 42 years.

Upping Downtime Putting Reception to Work Murrieta, CA. 09/2010 - Salon owners can now use the idle time clients spend waiting in their reception area to showcase their products and service offerings. CaerVision has launched digitally customized, educational programming for salon and spa reception areas and treatment rooms. Special video materials with professionally produced content are displayed on large flat-panel LCD screens to educate and entertain clients. The educational content is delivered by the CaerVision Network through the salon or spa’s Internet connection and can be updated and customized for each location.

Hairloss.com Celebrates First Anniversary New York, NY. 09/2010 – Hairloss.com (HLDC), a website dedicated to all things about hair loss in men and women, celebrated its first anniversary in July without fanfare. HLDC was launched a year ago and has generated nearly 120,000 visitors and over 360,000 page views.

Surprisingly, none of HLDC’s traffic was driven by off-line advertising or promotion. The site relied solely on SEO (organic search engine optimization) and a very limited SEM (pay per word) budget. HLDC was the brainchild of On Rite CEO, Andrew Wright and COO, David Schwartz. “It was time for a website like this, one the whole industry could benefit from” said Wright. What makes HLDC different is that it isn’t selling anything or promoting a particular point of view. All types of hair loss options are covered, including the “solution” of remaining bald and not doing anything at all.

KATHY IRELAND WIGS Vista, CA, 08/2010 - Jon Renau, a supplier of alternative hair products, has partnered with Kathy Ireland to create a new collection of designer hairpieces and wigs. The new designs cater to all busy women, from brides seeking “aisle style” to women who are experiencing hair loss. “Kathy Ireland has compassion and commitment towards helping women facing health challenges,” said Jon Renau's founder, John Reynolds. “The Kathy Ireland organization mirrors our core values. It made the decision to join with Kathy a natural progression.”

3 The National Hair Journal Fall 2010

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Privileges and responsibilities - One of the privileges... and responsibilities... of editing The National Hair Journal is the opportunity to meet and talk with industry leaders around the world. In our last issue, we talked with Mr. Tadao Otsuki, President of Aderans international who explained how he is restructuring his company to deliver onestop, full-service hair loss services. In this issue we talk with three more shakers and movers in the hair market. Michael Napolitano emphasizes the importance of glamour and excitement and describes how his company has become a leader in “Aspirational Hair.” Andy Wright, President of On Rite, a hair loss veteran and successful empire builder, predicts that the men’s hair loss market will rebound to even higher levels than in its heyday. And Jane Genesi and Jim McGowan describe how they went to Hollywood to get the special designs they wanted for their most discriminating clients. As you read these interviews, you will see different business philosophies coming together to meet the needs of today’s consumer. Each company blends the cocktail differently, but make no mistake about it, they are all “shaking but not stirring” to keep up with a market that bears little resemblance to the ways things were even five years ago. In our next issue, we will “look ahead” with more industry leaders to learn how they see the future and what we can expect from their companies in 2011.

School of Hard Knocks – As a news agency, we hear horror stories every day.

Of course, every market has its rough edges, but it seems the hair industry has more than its fair share. In our front-page news stories, we report that Paris Hilton is under attack for allegedly not wearing her

Letters to the

Editor Dear Editor The internet is a wealth of knowledge where literally anyone can have their say. Whether it’s a blog, tweet, or status update, men and women have the ability to get their views across to a global audience. This is a fantastic way to find out important information on a wide variety of subjects; however a lack of regulation means that often the information is widely inaccurate.

The other day, for example, I followed a tweet titled ‘Justifying the Cost of Modern Hair Implant Techniques’. The link led me to a blog discussing hair loss in women which naturally, bearing in mind the subject matter, I was interested to read.

Sadly, my interest soon changed to infuriation – the author was either severely uneducated on the subject or blatantly and significantly economical with the truth; either way I was unsettled by that fact that this misinformation was visible to potentially millions of people.

The author, referring to the strip method of donor harvesting, stated that: ‘A number of hair clinics will promote older, less good hair implant methods in order to keep costs down’. Nothing about the aforementioned sentence is correct; not even the grammar, nevermind the scientific information written especially since implying that FUE is the donor harvest method of choice in women.

This reiterated to me how important it is for potential patients to seek advice from trusted authorities on the subject, as it is all too easy for advertisers and novices to pose as educators on the net.

Another promotion from a relatively new provider of one technique only, claimed they are the leading clinic in Europe, that they produce no scars, actually pioneered the procedure and pretty much saved the British public from the dire services of the existing providers (including ourselves!).

For the above reasons, especially when considering surgery, it is crucial that men and women acquire knowledge from reputable sources, such as the Institute of Trichologists, International

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Dream Catchers as promised.

And below this editorial, Dr Farjo complains about misrepresentation on the Internet. Your editor is not above making mistakes either as witnessed by his decision to abort a National Hair Directory when it became clear that the intended partner had different objectives. Our medical hairloss siblings have established professional protocols and even an ethics committee, but as we constantly point out in this column, there is no collaboration at an industry level in the hair replacement market. How much more do we need to get knocked around before we learn?

Beauty Salons, Listen Up! – 1 in 8 people in the United States are over 65 years old – but they don’t think they’re old. That’s because they spend a fortune to cast those years aside. Research shows that 90 million adults have used anti aging products at some time or the other in their life, and the numbers are rising. That’s a lot of money!

Are you getting your share? Hair is the ultimate anti-aging product; keep the volume and retain the color and you will look twenty years younger. Beauty salons everywhere are facing a baby-boomer clientele that wants young hair, but doesn’t know how to get it. So if you own or manage a beauty salon or day spa, we hope you’ll read The Hair Journal cover to cover to learn about the remarkable new products that will keep your clients young, happy... and be very profitable to you.

Chris Webb

Editor-in-Chief Society of Hair Restoration Surgery, British Association of Hair Restoration Surgeons, American Board of Hair Restoration Surgery, Hair Transplant Network and International Alliance of Hair Restoration Surgery. I would also suggest looking for scientific research with proven clinical data, as well as case studies when considering any kind of medical or surgical treatment.

So, even with cutting edge technology, the old age saying is true; be it on paper or online, don’t believe everything you read!

Dr Bessam Farjo, MB, ChB, BAO, LRCP&SI, FIT, Farjo Medical Centre, Manchester, England.

Chris, It was a pleasure sharing my knowledge with you and your readers. My objective was for my colleagues to be able to share with their medical clients. Our industry is privileged to have your Journal to keep us informed. Thank you from my heart!

Sincerely, Jonalee Dear Editor, Given today’s economic market, it is rare to see a company rolling back prices. But that is exactly what we are doing. It is our way of thanking hundreds of studios for their years of loyalty.

For personal and professional reasons, we have always focused on product safety and our products have been developed in accordance with the rigorous standards of the ISO9001. This required major R&D investment on our part. However, we have experienced tremendous growth over the last few years and as a result can now buy those quality raw materials at a much better rate.

Now that studios are working extra hard to maintain profitability, it is time to give back as well as say a heart felt Thank You! Howard, Larry & Ryan Professional Hair Labs

LOOKING

4 The National Hair Journal Fall 2010

Our third annual “Looking Ahead” fea-

ture captures the thoughts and predictions of several senior executives in our

industry. The National Hair Journal met with them to learn how they see the challenges... and opportunities... that lie ahead. Two things stand out clearly; these industry leaders have been successful because they listen closely to the consumer before developing a tight, single-minded business plan. The conclusion? Vision is great; vision with discipline is better. Look for more leadership insights in our next issue.

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Aspirational Hair How Michael Napolitano Built an Imaging Empire

The hair addition market is redefining itself. In this second millennium, people are increasingly driven by appearances. Lydia Ramsey, a business etiquette expert and corporate trainer states, “Seven seconds is the average length of time you have to make a first impression... It pays for you to understand how people make their first judgment and what you can do to be in control of the result... your clients will notice your hair and face first.” So perhaps it’s no coincidence that the highest paid member of Sarah Palin’s vice presidential campaign was her makeup “artist!

Hair U Wear has been a leader in personal image marketing; in fact they even have a special term for it. They call it “Aspirational Hair.” The company is famous for its celebrity-inspired wigs, fashion hair additions, extensions, hair pieces featuring Raquel Welch, Jessica Simpson, and Eva Gabor and, of course, Great Lengths hair extensions, the Rolls Royce of their professional products division. Men are supported by the American Hairlines division with its Virtual Reality product line and newly released Natural Advantage line and retail marketing programs and concepts. To find out more about the philosophy and marketing thinking behind Hair U Wear, The National Hair Journal talked with the company president and CEO, Michael Napolitano, who had just returned from a successful week at CosmoProf 2010 in Las Vegas.

National Hair Journal (NHJ): We live in an imagedriven world today. How has this affected your marketing planning?

Michael Napolitano (MN): When we look at the beauty business, we see women wanting to achieve a special look, whether it’s to emulate a celebrity or a fashion icon. Unfortunately, most of these women don’t have what it takes to achieve the style they really want. So we’ve seen a huge growth in what I call “Aspirational” hair. Years ago it was all about hair loss. Now we’ve gone from hair loss into aspiration and fashion.

NHJ: Hair extensions were a major part of that strategy weren’t they?

MN: That’s right. Back then; the industry’s focus was on hair loss-related products. Everybody said, “You’re crazy to go after the extension business. Extensions are purely ethnic and that’s the way it’ll stay. The Caucasian market is never going to be big.” But we went at it anyway and endeavored to create a marketplace. .

NHJ: The product, of course, was “Great Lengths.”

MN: Right. We had no competition in the United States at the time because none else saw the potential. Our marketing plan focused on education, creating benchmarks, national consumer advertising awareness campaigns and public relations campaigns, then monitoring the results. Ten years later, we have between 7,000 and 8,000 certified Great Lengths salons.

NHJ: How do you see the future?

MN: Aspirational hair is where I see the future going. Hair loss will always be there, but our fashion products are the most dynamic and fastest growing.

NHJ: When you talk about “aspirational hair,” you are not talking only about the lifestyle markets are you? Even if you’re losing your hair, you still aspire to the vitality and flair of the person

you used to be.

MN: The man or woman you used to be... OR... in a lot of cases, the someone you’ve never been able to be. A lot of women would love to look like Eva Longoria for example, or Angelina Jolie, but her stylist can’t deliver because she just doesn’t have what it takes to get that result. But we’ve got the tool that enables the stylist to create what her client is looking for. And we do that on many levels. We can now give any woman what she’s aspiring to at pretty much any price point.

NHJ: How does the concept of “aspiration,” impact your marketing program?

MN: We’re a multidivisional company. Each division has a different focus and thought process.

I was reading one of Jack Welch’s books about how to take a multinational company like GE that’s in hundreds of countries and make it work? His answer is simple; it’s by having brilliant people head up all of those various companies under one corporate banner. And that’s what we try to do; we seek out brilliant people with a special understanding of a particular market.

NHJ: What does it take to be a fashion and image leader?

MN: That’s a good question. It takes having very creative people around you. We have creative people both internally and externally who keep their fingers on the pulse of fashion both here and in the other countries we market to.

NHJ: Do you do a lot of lifestyle research?

MN: It really is about being focused on consumer’s needs. We work a lot with focus groups around the world. We analyze a lot of information and then all the artistic people start the developmental process. We also look closely at fashion trends. Our people are well connected with design houses and with fashion weeks around the world. We’ve got one guy that just develops color. Our mission is to create products high-fashion products that parallel what artistes and consumers want.

NHJ: Has your research identified a style or trend for 2011?

MN: We’re seeing more imaginative use of color.

We’ve developed new shading and low-lighting styles.

Fringes without question. A lot of up-dos. A lot of chignons. A lot of dressy hair.

NHJ: Do you follow trends or do you sometimes create your own?

MN: Both. Without question HairUWear created the Caucasian hair extension market in the United States.

Take a look at it now; do you know how many extension companies are out there today? We didn’t just create a trend; we created a business.

NHJ: Was it luck, science, or good timing?

MN: We did it the same way then that we are doing it today. By creating amazingly attractive stuff, both in public relations and in all the major magazines and by having celebrity stylists associated with our company.

We’re involved in pretty much every television show and movie that’s made and every runway you see in Fashion Week. We associate ourselves with that entire environment.

NHJ: Can the consumer comfortably enter this exclusive world of fashion?

MN: If the consumer does not realize that experience it all breaks down, it all falls apart. So we support our marketing with what I feel is the most brilliant education program in the beauty industry. As a matter of fact, we were up for one of the awards at America’s Beauty Show in Chicago sponsored by BehindTheChair.com. Education is a big part of our operation, because that’s what drives the business and that’s what creates a satisfied consumer.

NHJ: You work closely with your public relations company. How important is PR in your marketing mix?

MN: Very important. PR is key to establishing our presence and making our brands household names.

If I’m on a plane and I get to talking and chatting with people, nine times out of ten, they’ve heard of (cont.on pg. 9) our company. When that happens, you’re doing something right.

5 The National Hair Journal Fall7 2010

Photo: Oscar Rabeiro

6 The National Hair Journal Fall 2010

Eyes Rite!

A Closer Look at the New On Rite If you walk through the corridors at On Rite and hear laughter, it’s probably Andy Wright conducting a business meeting. If you attend an On Rite conference, the person dressed up as a pirate captain is certain to be Andy. And if you turn the pages of the The National Hair Journal and find a comic advertisement with animals or, as in this issue, a Jack-in-the-Box, you can bet it’s an On Rite advertisement. But if Andy knows how to laugh at the world and at himself, he is also the first to roll up his shirtsleeves when it’s time for serious work.

When his offices were flooded following a torrential storm, he simply moved his desk into a dry corridor and continued to work. We last interviewed Andrew Wright back in 1997 and his company has changed a lot since then. For starters, it is no longer his company. In 1999, the business became majority-owned by its staff and employees. In 2009, the decision was made to sell it to the company that for years had been supplying it with hair goods.

Although Andy has delegated much of the responsibility for day-to-day operations to a dynamic young marketing team, he continues as company president. We intercepted Andy on his return from a business trip to China and one day before he was to board another plane for Europe. The following is a summary of our discussion in which Andy Wright emphasizes the importance of sticking to basics and reasserts his belief that the men’s hair replacement market will return to its former importance and business stature.

National Hair Journal (NHJ): The last time we interviewed you was several years ago and On Rite was just beginning to create hair addition products for women. At that time there was no such thing as low-level laser light therapy and the need to help victims of medically induced hair loss was only just beginning to be recognized. A lot has changed since then.

How do you see the market of the future?

Andrew Wright (AW): Nothing remains static. Back then, men were the main category.

Today we have a combination of therapies, hair replacements and additions, laser, topical and surgical. Obviously, this is going to continue.

However, while the women’s market has been creating much of the growth recently, I believe that within the next 2-5 years men will become very significant again. I definitely see men playing an equal role to women within the next few years.

NHJ: What were the most important structural changes in the industry in the last couple of years?

AW: It has to be the number of women coming into the market. Today, they constitute the majority of new consultations.

NHJ: What advice would you give a salon manager who is confused by these market changes?

AW: Today’s retailer has basically to be multi everything - multicultural, multi-gender, multitherapeutic.

NHJ: Is it better to offer multiple services or to specialize in just one service and excel at that?

AW: If you only offer non-surgical today, you’re probably signing your own death warrant.

NHJ: Most On Rite customers are non-surgical specialists. Should they create relationships with medical clinics, or should they just specialize in what they’ve been trained to do?

AW: The question is too general. It all depends on the business owners. Some are willing to develop those kinds of relationships and make them work. Each center has to look at their local market and examine their own skill sets. This is a decision for the long term. If you’re not comfortable, then you shouldn’t try do it yourself and hire someone with the skill sets needed.

NHJ: Let’s take a typical small retail center owner. Perhaps he is in his 50s. He specialized in men’s hair replacement, but added women in the last three or four years. He is confused by all the changes; he is scared about the threat from surgery and he doesn’t understand light therapy and cell multiplication.

What skills does he need to acquire to compete successfully in the market of the future?

AW: Education.

NHJ: Where would he turn for that?

AW: You’ve just described someone who is confused about what is really happening. If a retailer feels he/she does not have the majority of the answers they would like, that indicates the need for market analysis for starters. They must get somebody to help them understand their area’s challenges and opportunities.

NHJ: The person I’m talking about is busy behind the chair seven or eight hours a day. If he/she gets a doughnut for lunch it’s a good day.

So to ask them to analyze demographic trends or new technologies is unrealistic. How can they do that analysis and make marketing decisions?

AW: Education in its truest meaning is simply a broadening of the mind and learning how to organize information. For instance, the owner of a retail center can ask himself or herself simple questions like, “How many consultations have I had within the last month with men or with women? ” and “Was I successful or unsuccessful?” Then once they have both answers, they should ask why. If they don’t have that final answer, they’re just flying blind.

NHJ: Can a retailer go it alone and still be successful in the market today? The traditional media no longer work the way they used to, the consumer expects information about all kinds of new technologies and even the basic products themselves are evolving quickly. Doesn’t the pace of change simply overpower the small business owner?

AW: I don’t think that people in any business need to know everything about the mechanics of everything they are offering. The important thing is to understand and have confidence in the basics. You don’t need to know how everything works or is put together. But you do need to know where to turn when you have a technical or marketing question.

NHJ: All your professional life you have traveled the world, building skills and talking to people on the cutting edge of research and product development. In fact, you have just returned from Asia on another fact-finding mission. Based on your insights and professional connections, what do you see as the opportunities for the future and how can the average retail center owner prepare to benefit from them?

AW: That’s a big one. First of all, who says I saw all I needed to see? Evolution just continues to happen, you know. It is important to stand far enough back to see the important trends and either accept them, reject them, move around them or move amongst them.

NHJ: Very philosophical, little grasshopper!

Where do you personally see the hair replacement going?

AW: I don’t think there are going to be many fundamental changes. There are no new dramatic discoveries being made in materials of any kind, to the best of my knowledge. Yes, there are improvements on existing materials but not what I would call dramatic. So we’re still going to use human hair, we’re still going to use synthetic, and we’re still going to use materials to attach the hair graft onto a male or female’s head. Those fundamentals haven’t changed. We’re desperately doing research and development to reduce product costs through new technologies, but that’s very difficult in this industry because it’s a handmade, laborintensive product. The hard fact is that labor costs are going up in all the major production locations, namely China. So we have to recognize that and make the necessary adjustments temporarily until new technologies are introduced to help reduce costs, or until new manufacturing sites in other countries with lower production costs are up and running.

NHJ: If you had a personal wish list, what

three things would be written on it?

AW: To change from handmade to some technological advance that would deliver the same quality we currently have. Secondly, I wish we could have new materials that we simply insert hair into, place on the head, apply water, and the foundation material just washes away, leaving the hair there. Finally, I wish it were easier for retailers to demonstrate the fantastic job they can do for a customer before he or she walks away or says they have to “think about it.”

NHJ: Steve Dimanni writes repeatedly about the importance of establishing a credible dialogue with today’s consumer. How has advertising changed over the last couple of years?

AW: We are very lucky to have Steve DiManni who has the depth of understanding regarding the potential hair loss customer. He certainly would be the better person to answer this question more fully. However, I think the total in--dustry investment in advertising is too small with the result that the consumer is not even hearing our message. In some markets this is compounded by the fact that the advertising may not be saying what the consumer wants to hear.

NHJ: What does your research indicate the consumer wants to hear today?

AW: [Laughs] Depends on what side of the bed you get up in the morning. If we had that answer we’d already have the key. I don’t think anybody has the answer. I don’t even know if the customer wants to hear “Come in and wear it for a month and then start paying.” I recommend that you ask Steve DiManni this question and get a really good answer from him rather than my lightweight answer.

NHJ: What consumer benefit should we be offering today? It was simple in the old days because a hair replacement was essentially a cover-up for someone who was losing his or her hair and didn’t like it. But today you’ve got more lifestyle elements, health and anti-aging factors coming into play. Do we have to divide our advertising message into slices to appeal to each of those groups?

AW: Definitely we have to target the advertising to the particular groups. The marketing question is how small or how large that group is. It’s getting harder to find our target audience, so we have to do far more analysis to optimize our media mix. Barbara Goldstein is our leading authority on this question and could give you more specific information.

NHJ: Is a lead still a lead? When leads cost about $20.00 or under, it didn’t matter that some of them were not high-quality leads. But today a new business lead can cost approximately six hundred dollars on average AW: A lead is definitely a lead. No matter how you got the name or at what cost, it’s definitely a lead. That has not changed. The consumer today is better educated, so he or she is not responding en masse to everything that talks about hair; it has to specifically target the prospect’s interest point. As a result we’re not getting the kind of numbers we got 20 or 30 years ago, but when they respond you know there is a genuine interest. But it’s still a lead; you just happen to pay more for it now than you did before. So you’d better ”work the lead” via

7 The National Hair Journal Fall 2010 itive thing for our industry.

NHJ: You were talking earlier about the importance of learning how to talk to this younger client.

AW: Absolutely. If you have 40 to 60-year-old stylists working in your center, you’re probably guaranteeing yourself that you’ll continue to have a 40-year-old clientele. Take for example a beauty salon; a new young stylist comes in, she’s upbeat, she can talk the Generation Y language and she immediately develops a younger clientele. Our industry and business is no different than others. We all have to make the necessary changes to continue our business success... that’s how business and life is.

NHJ: Do you see young professionals coming into the industry?

AW: Business owners who are my age have to offer attractive opportunities to young people.

Whether they are offered a buy-in or take over the family business, young people need to see a career path. And looking at it the other way round, the owner should look at the legacy they’re going to leave? They’ve spent a lifetime building a business; they want to pass it on to someone who will respect their ethics and standards and continue the good service the center was built on.

NHJ: Supercuts recently ran a series of advertising to attract young people into the cosmetology field. Should we be doing the same for men’s and women’s hair replacement? email, text, phone call or whatever way you can.

NHJ: A lot of readers will be encouraged to hear you say that you see the men’s market coming back. Why do you believe that?

AW: Over the years, I have learned so much from Barbara Goldstein who has concentrated on analyzing this sector and helped many retailers understand this very point. She would correctly point out that we are talking about ‘Generation Y,’ a group with very different priorities. I am not comparing myself with Barbara but I will take this opportunity to explain in layman’s terms that our industry goes through cycles. For instance, in the 80’s, Michael Jordan started the “shaved the head deal.” And we all thought it was a fad. But it wasn’t a fad; it turned into a 20 to 30 year cycle. The guy who opted for a shaved head as his solution for hair loss back then was 18 to 30 years old.

Today, he is between 40 and 60 years. Well, Generation Y doesn’t want to look like their par-

ents. If you watch kids graduating from high school, or if you watch any popular television programs, you will see very few if any kids under 30 with shaved heads. The reason is that they don’t want to be categorized in the 40 to 60 years age category.

NHJ: So shaving your head ages you?

AW: If you look at a 20-year-old, it’s his father who went through the cycle of the shaved head.

He doesn’t want to be his father any more than the graft-wearer wanted to take on his father’s toupee. He didn’t want that, so he demanded and drove the changes in the market. He wanted a graft where we could change the design and the materials and make it far more natural looking, otherwise he wasn’t going to buy it.

Today’s 25-year-old is no less demanding.

That’s basically why I feel we will now start getting our share of Generation Y males who are suffering from hair loss but don’t see shaving their heads as a viable option. That is a very pos-

AW: We should be, but we should be doing it in our own way. We should be looking for young technicians and stylists all the time to develop that younger clientele.

NHJ: Should we be doing that on an industrywide level to create an environment of excitement, or is it up to the local retailer?

AW: I want to be grandiose and say that it should be industry-wide and it should be national, but somebody will say, “Well where’s the money? Who’s going to spearhead it? How will it be done?” Then I’d be left with my mouth open. Gigantic steps can be made with numerous small steps, so this effort will have to start on a local basis.

NHJ: On Rite has recently restructured. Two questions; “Why” and, “How does On Rite see its role in the industry in the future?”

AW: The answer to “Why” is very easy, We restructured not because of money or to provide an exit plan for anyone at the On Rite employee-

owned company, but rather because I firmly believed that “If we didn’t look at vertical marketing and take the necessary steps to achieve it, we could be looking at a far different future for On Rite by not doing so.”

NHJ: And the second part of the question...?

AW: In answer to B, I have to say that there is no difference in our goal today compared with last year or even 5 years before that. In other words, our total focus has been on customer service and our total culture has been built around that. As long as I have any influence here, that will not change. Additionally, we definitely want to play our part in guiding the retailer to be more successful than ever before. We want, obviously, to be a leader, or part of the leadership effort. We firmly believe that we’re at the age where industry cooperation would be far more helpful than going it alone or just opposing something because it’s from a competitor. I think we have to join together in certain ways. We’ll make more progress by collaborating than having competition for the sake of competition.

NHJ: What does vertical marketing mean?

AW: Vertical marketing means that you’re in full control and totally responsible for the product from day one. You’re responsible; not only from an ethical and business perspective, but also from the moment you take the order from the client through the physical creation of the product, to the day you deliver it. You cannot say, “Somebody else manufactured this and we had no control over it.” On Rite is now fully responsible for all phases and aspects of the process.

NHJ: What is On Rite doing differently from other manufacturers and distributors?

AW: I don’t study the competition sufficiently to claim I know what they are doing. Our philosophy is simple. We stick to the fundamentals – we listen closely to our customers because they are the ones who are going to guide us into the next generation. As far as I’m concerned it has been about basics like this from day one, and it continues to be about the basics; taking care of customers.

NHJ: You recently sold On Rite Company to a Chinese Hair Manufacturer. What is the significance for your clients?

AW: On a personal level, if your asking me am I retired, out the door and don’t care anymore, the answer is absolutely not! I’m work(cont. on pg. 9) ing just as I did before.

8 The National Hair Journal Fall 2010

9 The National Hair Journal Fall 2010

ASPIRATIONAL HAIR

(cont. from pg.4)

I belong to several country clubs and I get to meet a lot of people. When they find out that I’m the owner of Hair U Wear, they tell me they know what Great Lengths is, they know what Raquel Welch Wig Company is, they know about HairDo

by Jessica Simpson. We’re very smart about utilizing all our associations and partnerships with celebrities; we have our publicity working alongside their publicity. We’ve also created a community of “HairUWearers,” which is coordinated through social media. We’ve got a department that just focuses on social networking.

NHJ: Can you describe your company structure?

MN: Great Lengths is a professional hair extension line. We have an in-depth education department with very stringent certification requirements. We have between 7,000 and 8,000 Great Lengths salons. We are associated with every major fashion and theatrical organization. Just look at the TV shows, America’s Got Talent for example. We do hair for all these shows. Then we have HairDo, which is branded along with Ken Paves who’s the number one celebrity stylist right now. Of course it features Jessica Simpson and it’s become major global brand. It’s a more affordable extension line. The line is based on a new technology and quite easy to apply.

NHJ: Is this a human hair or synthetic fiber?

MN: We offer both, but just released a heat resistant fiber called “Tru2Life Fiber” that we’ve been working for nearly five years. We’ve also created under the HairDo brand a “Fine Line” extension, which is a sheer membrane that lay very flat to the scalp. Then we have the Raquel Welch brand, which we started 12 years ago and has now become the number one wig brand in the world.

Our newly released Raquel Welch catalogue is amazing. It is literally a high-end magazine and the new styles, colors, photography and images are setting a new benchmark in my opinion. It is an amazing sales tool for retailers when working with clients. Apart from our commercial programs we also do a lot of work with the American Cancer

“Our mission is to create products, high-fashion products that parallel what artistes and consumers want.”

Society. Every year we donate approximately $1 million in wigs to the American Cancer Society for women who are facing the challenge of cancer.

Last November we received a Corporate Impact Award from the American Cancer Society because of our endeavors with them.

NHJ: What about men’s hair loss products?

MN: We have American Hairlines, which has the Virtual Reality and the Natural Advantage hair replacement brands. We’ve just come out with a new product that we are very excited about. It’s called the “Ultima.” It has the thinnest membrane I’ve ever seen with an implant. Consumers will not know they’re wearing anything, it’s that sheer.

NHJ: You emphasize that your business is based on consumer research and lifestyle trends. What can we expect to see from HairUWear in the months ahead?

MN: We build brands. The consumer relies on brands and goes where he or she knows there is added value. Virtual Reality and Natural Advantage do that, as does Great Lengths, Raquel Welch and HairDo. Then we have two new brands in the pipeline... nobody knows about this yet but we signed a deal with the BBC and ABC and took ownership of Dancing With the Stars. We are going to be launching a line of hair extensions in the fall under the Dancing With the Stars label and in cooperation with them across all of our digital media outreach programs and publicity. I’m not going to go any further because it hasn’t launched yet, but the world will know that Dancing With the Stars is heavily committed to hair additions and hair extensions.

NHJ: ... and the other new product?

MN: A Ken Paves-inspired collection called “Self Help Care of Ken Paves.” It’s an anti-aging hair care line that has successfully completed all the anti-aging diagnostics. We’re very proud of this advanced formulation. Even the fragrance is all essential oil. It even has a phoshpolipid nanodispersion ingredient that seals in all the dyes in the hair shaft and suppresses the color from lifting.

This is going to be a huge release; I mean a big hair care project...

NHJ: We’ll be back to find out if this is another category in the making. Meanwhile, our thanks for NHJ sharing these insights about the future.

EYES RITE

(cont.from pg. 7)

If you walked into our building today or five years ago, or you stood outside the door and said, “Let me see what kind of a mix is going on,” I don’t think you’ll see any significant changes. Over the last 5 – 10 years, I have built up a very strong management team lead

by David Schwartz who has been with On Rite for more than 9 years, and we now have effective managers in every department who have assumed more responsibility for day-today activities and planning for the future success of On Rite. As far as our customer’s expectations and how we treat them are concerned, our priorities remain the same.

NHJ: What does the future hold for Andy?

Will you continue to go to work and to lead the company as you always have?

AW: Well, the answer to that question is yes and no. Yes, I still come to work every day and will continue to do so. Also, as I mentioned before, I have continued to delegate

“Our total focus has been on customer service and our culture has been built around that. As long as I have any influence here, that will not change.” responsibility to David Schwartz and our other managers and staff with the result that my responsibilities will continue to evolve.

For instance, in the ‘70s and ‘80s, I was out on the road doing sales. Obviously, since that time my responsibilities have changed.

In order for On Rite to grow it became necessary for me to keep passing more responsibility to my managers and staff, freeing me up to oversee strategic operations. I plan to continue this process, while making sure our focus and culture remains the same. I want to make sure the engine continues performing as it has in the past.

NHJ: I know you are proud of being a pioneer in the women’s hair loss business, especially the women’s medical division. On Rite has invested heavily in the Hairloss.com website which gives the consumer information and a forum to exchange opinions. Are these examples of the diversification you were talking about?

AW: Yes. If I “preach” - and I use that word deliberately - if I preach to the retailer that they have to examine their local market and see what the consumer is asking for, then clearly we have to do the same thing ourselves. With the Hairloss.com website, we are able to read the forums and understand what the hair loss customer is saying and what he or she is concerned about. Yes, these are examples of things we are doing to design our response to market needs on the retail level and consumer level. This is very important for On Rite and for our retail centers. It enables us to build more successful strategies and programs to help our clients be more successful.

NHJ: Readers of the Hair Journal will hope to find some unexpected insight or tidbit of information. Can we get you to lift a corner of the curtain?

AW: My hope is that new technology will play a bigger part in the hair loss market.

NHJ: The Hair Journal is extending its circulation into the beauty market because cosmetologists everywhere have a clientele that needs hair-loss information.

AW: Congratulations on your new direction and I wish you every success, as you have always been one to pioneer for our industry.

I am confident that this will help grow the market, and that’s good for everybody.

NHJ: One final question; your energy and enthusiasm, where does it come from...?

AW: Being of Irish origin I have to admit the secret formula and regimen is a pint of Guinness a day, starting at the age of five continuing up to the age of 95 and after that, who cares? Now that I have given you the secret formula (my grandmother will turn over in her grave) let me thank you on behalf of myself and all the On Rite dedicated staff for granting us this opportunity. It is much NHJ appreciated.

10 The National Hair Journal Fall 2010

From Hollywood...

Center Stage with

Erwin H. Kupitz

Eleven years ago, Jane Genesi contacted Hollywood legend, Erwin Kupitz about a new business concept. Erwin creates hair designs for the biggest movie studios in Hollywood as well as stars in the music world. Jane was the owner of a major East Coast hair replacement group and her question was simple, “Why should only wealthy people and movie stars have access to this high level work?” She wanted to bring the same level of design and production excellence to her own clients... with Erwin’s assistance.

product line.

NHJ: Your advertising talks about, “The EHK Story.” What is the EHK story?

JG: The EHK story began with a phone call. I’d just seen the movie, Hunt For Red October and Sean Connery looked fabulous. It’s a given that he wears hair, but in that movie you’d never have known, even in the tightest close ups. And I remember thinking that my clients would do anything to have hair like that?

I didn’t know how to get that hair, but I knew it was out there.

NHJ: Many people have had the same reaction; but you didn’t stop there did you?

JG: You know me... I started researching Hollywood styling and special effects, starting back in the ‘20s with Max Factor and other legendary makeup and hairstyling groups. This took me out to California where I met a man named ‘Ziggy’ or Siegfried Geike. Ziggy did virtually all the male stars in Hollywood; Charlton Heston and all the big names. And I asked him if he’d be interested in helping me develop a product for the “street wear” client, as Hollywood people like to refer to them. My timing wasn’t the best because Ziggy was in the process of selling his business and would I be interested in buying it? So we talked

This was the beginning of a dynamic new relationship. The new EHK (Erwin H. Kupitz) Collection was created by Erwin for J.A Alternatives, drawing on his studio experience and special contacts. It became an immediate success.

JA Alternatives (JAA) was originally founded nearly 30 years ago by Jane Genesi in River Edge, NJ. Today, the company has grown to include 5 more locations, for a total of 6 offices. Jim McGowan joined JAA in 1986 and quickly became the sales and marketing engine for the business. In addition to being a partner in the business, Jim runs the day-to-day operations and produces all the in-house TV, print, and web marketing materials.

Erwin Kupitz has been a frequent guest on “Hairloss Newsmakers” a radio show hosted by The National Hair Journal, and our paths continue to cross at conferences around the country. As this article was being finalized, Erwin was in Europe on assignment, but we were able to talk with Jane Genesi and Jim McGowan to learn more about EHK and discover how this collection fits in with the trends and opportunities in the everchanging hair replacement market.

Jane Genesi (JG): The market has changed dramatically since 1983, when I opened the company. We are dealing with a more educated consumer and the new business focus has shifted from male to female. Clients are becoming more discerning. They will not accept the mediocre. Our female clients in particular demand consistently high quality products and they are always looking for something new. Women will do the research; they take the time to shop the products. They are also very cost-conscious, but when they see genuine quality, they will spend on it.

These clients require a high-level technician to service them; technicians with strong chemical, styling, and haircutting backgrounds, not just hair replacement.

National Hair Journal (NHJ): Unlike most manufacturers, you own and operate your own hair centers. Is this a benefit?

JG: It is fundamental to our business model. We’ve been in the front line of customer service for over thirty years. We attend shows and workshops all over the world and we have accumulated a wealth of knowledge. Rather than opening numerous J.A. Alternatives, we decided to share our technical expertise. We felt our clients shouldn’t be the only people privy to the research, development, and marketing that we’ve put into our in-house

back and forth and I visited him several times and eventually I decided that really I wanted to keep my business on the East Coast. But during these negotiations, I developed a close relationship with Ziggy and he gave me the name of Erwin Kupitz.

He told me with his thick German accent, “This is a really good guy. He’s very talented” and I should contact him.

NHJ: Here come the phone call...

JG: ... so I gave Erwin a call... and he said, “I think I’d like to do something like that, but right now I’m on my way to Universal Studios to work on some cartoon characters,” which I thought was kind of fun at the time - I never realized that cartoon characters needed great wigs! When he finished that project, I flew out to California to meet Irwin, had a lunch that turned into dinner and we decided right then and there that we were going to work together.

NHJ: Is Hollywood really the cutting edge when it comes to designing undetectable hair?

JG: People don’t understand how demanding a studio set can be. The camera sees everything. In general, hair looks much better in person than it does on-screen or in photography and videos. On the big screen, flaws are magnified, color may be distorted; highlights and densities are altered because of the onedimensional aspect of photography. So Hollywood makeup artistes and stylists must always be on their game; they have to be 110-percent. I wanted something that was bigger-than-life; that’s why I went to Hollywood to get it.

Jim McGowan (JM): We took Hollywood special effects and hair styling and figured out how to apply it to the public market.

We’ve all done celebrity clients, but until now no one with Erwin Kupitz’s credentials has entered our world of hair replacement.

JG: We took something that was artistic and made it system-

atic; we made it scientific.

NHJ: So the magic and science of Hollywood is now available to the average man and woman on the street.

JM: That’s exactly right.

JG: Remember, Hollywood is all about artistry. If you look closely at Irwin’s work, they truly are masterpieces; he even includes small imperfections to match reality. We’ve just taken his art and made it scientific. I was fortunate to be able to bring it all together and find factories that could produce a consistently superior product.

NHJ: Is this a luxury product that only rich people can afford?

JM: I wouldn’t say that. But as would expect with a products of this quality, the price point is higher than conventional hair replacement products.

NHJ: Research suggests that the consumer today is looking for, and prepared to pay for, a superior product. Is this your experience?

JM: No question. Jane and I developed these products for our own business. Like everyone else we wanted to offer our clients a superior product, and of course to set ourselves apart from the competition. The idea of wholesaling came much later.

JG: We felt kind of bad for some of the smaller retailers that were looking for something better, but didn’t know how to go about getting it. They were honest, lovely businesspeople adrift in the market, so Jim and I decided to share our work, but to be mindful of our territories in doing it. We would hate to compete with ourselves.

NHJ: How has the market responded?

JG: Quite overwhelming, to be frank. We’re actually holding off on a new product launch while we examine some interesting packaging ideas. We’re not in a hurry; it’s more important to get things right than meet some arbitrary deadline. To put things in perspective, EHK went through eight years of testing.

Our plans are controlled, which is an unusual situation in this industry. Our preference is consistent quality.

NHJ: Everybody claims to have great hair. Why should readers of the National Hair Journal believe EHK is any different?

JG: They have to experience it. There’s a lot more to EHK than just the raw materials. Obviously, everybody wants the best hair, but there are other things that just as important. For example, how the hair is handled is critical. A lot of hair is damaged in processing. Production skills also vary enormously. Having good material is not enough; you need to know what to do with that material. I can’t tell you how many wholesalers have phenomenal hair but archaic design, and conversely, how many people have clearly good designs but archaic hair. To be able to put them all together, and do it consistently, is something that requires special skills.

JM: When we first suggested going wholesale to our staff, it was met with raised eyebrows because we’re normally closed and protective about our products. It’s a new experience for us, but we’re enjoying it.

JG: We don’t want to be a large wholesaler. We’re happy to be a boutique type wholesaler that has a few highly specialized products.

JG: We’re never going to be for everybody. We are selective about our clients to protect Irwin’s and our reputation. (cont. on pg. 13)

11 The National Hair Journal Fall 2010

12 The National Hair Journal Fall 2010

Patty of Hope Patricia Turkal talks about the work she does with cancer survivors All too often, the sequence of events goes like this: the diagnosis, the surgery, the chemotherapy... the wig.

Patty Turkal knows just how important a wig can be - especially for someone trying to come back from cancer. In her little Overland Park shop, named Brian Joseph’s (after her grandson) and discreetly located in a single-story commercial building on a quiet side street, Turkal helps cancer patients keep their dignity, their looks and their hope after they’ve lost their hair.

She sells a line of wigs - cranial prostheses; she calls them - which she developed specifically for people who are suffering from medical hair loss.

Their linings don’t scratch and they fit securely thanks to several strategically placed adhesive patches. Also for sale are breast prostheses, eyelashes and a shampoo created specially for bald cancer patients. These products were designed by Turkal and a chemist, who was afflicted with brain cancer.

Every bit as important as what she sells, however, is what Turkal has to say to her clients, many of whom are still reeling from the bad news delivered perhaps only days before.

Turkal knows how they feel. A decade after she had perfected her chemotherapy wig, she needed one herself. Late in 1991, she went to her physician for the yearly assessment of her multiple sclerosis. When the doctor called her with her test results and the news that she had breast cancer, she told him, “You must have the wrong film; I have MS.’’ “You have that too,’’ he replied.

She had a mastectomy shortly after, followed by chemotherapy treatment. Three weeks later, she still had all of her hair, and she figured she’d be one of the lucky ones. Her fortunes turned on the afternoon of Dec. 24, when she stepped into the shower. She wet her head, rubbed some shampoo into it - and her hair came out. She drove to her shop, picked out a wig and went on to dinner. She wore that wig for 14 months straight.

Turkal, who has been cancer-free for five years, knows what her clients are going through. And she knows what they need to hear. Even after they’ve taken home their hairpieces, many of them come back for the comfort and the wisdom of someone who’s been to the edge and back.

Patty Turkal didn’t start out with medical hair loss in mind. She went to cosmetology school, looking for a career in ``fashion wigs.’’ Fun stuff. She opened a wig shop in Canton, Ohio, in 1966. And although most of her customers were seeking a glamorous look, Turkal knew that there were other people with medical hair loss who were not being served by the traditional wig industry. The available wigs were too scratchy, too slippery, too “Vegas showgirl’’ for them she says.

So Turkal, who wanted “to do something for people,’’ began designing and fabricating her own.

She sewed in the hairs individually and in a uniform pattern, rather than in rows, as was the custom in fashion wigs at the time. She made the lining out of a soft fabric that didn’t irritate the sensitive scalps of chemotherapy patients. And she offered the option of adhesive patches so her clients could, “bend over a file cabinet and come back up with their hair still in place.’’ A wig, especially on a bald head, “has to feel like it moves with you,’’ Turkal explained.

Turkal also took pains to arrange her office in a way to maximize her clients’ privacy and minimize their embarrassment - a feature not universally available. From a small waiting area, her clients are led into one of two private rooms.

They almost never encounter one another on their way to or from appointments.

If a cancer diagnosis is “the first pit you fall into, the second is when your hair falls out,’’ said Kathy B, a client and cancer survivor. “You feel puny.

You feel ugly.’’ Some people have gone to Patty’s salon and cried all afternoon. Kathy recalls an appointment with Turkal shortly after one of her chemotherapy treatments; Patty said, “You look too sick to be sitting up.” “So she fixed my hair while I was lying on the floor.’’

In her Own Words The Journal was so moved by Patty’s story that we asked her to talk to readers who might be thinking about adding medical hair loss support to their own services. Here are some highlights from that conversation...

Patricia Turkal I started working with hair back in 1966, so I’ve been doing this for over 40 years. Back in the 60s we were learning how to do hand-tied human hair wigs. That was all we had. We didn’t even have synthetic back then.

In 1978, I decided that I was going to specialize in medical hair loss, because I felt I could make a difference in people’s lives.

When you have a client who’s medically challenged with hair loss, their needs are very different from providing a wig for somebody that’s going to Europe for three weeks and just needs something they can wear because they can’t get their hair done.

When I decided to go into medical hair loss, I took a lot of classes to become familiar with custom cranial prosthetics. I had made up my mind that I was going to make my own line, and by 1978, I had seven products.

Not being a wealthy entrepreneur, I was very much aware that there were bigger and much wealthier factories out there that could copy my designs. Most of the factories at the time were making one-size fits all. So if you had a petite sized head, trauma to the head or a medical condition that made your head an irregular size, you had a problem. If the stylist ordered hair from a mass producer in the 70’s, they had a lot of custom work ahead of them because the stock size was 22-1/2 inches in circumference; that’s all you could get; they didn’t have petite, small, and large.

Things are very different today. The factories are much more flexible, you can even get extra-extrasmall. We need these choices. Every client is different. We have to overcome the trauma that person has gone through and make their hair look like nothing has been lost or cut away by surgery.

I still do some custom work, but today it’s much easier to order custom pieces. I can often get them back in as little as four weeks.

My own cranial prosthetics are made from the finest materials; the finest laces and nettings, polyurethanes, caps and attachments. Through trial and error we learned what works and what doesn’t. When I went through chemotherapy myself in ‘91, I was actually in the process of developing a line of support products specifically for chemo patients. So the early 90’s were the years when I became a chemist, a stylist and a patient. I was the perfect guinea pig.

Everybody going through chemotherapy or radiation therapy complains about their wig hurting.

Well, wigs don’t hurt. Wigs don’t itch. It’s the scalps that hurts and itches. So I consulted with a doctor of chemistry in Dallas, Dr. Hofelmeyer, and asked him to create a shampoo just for scalps that are going through chemotherapy and radiation and are highly sensitive. At first, I intended to offer it only to my own clients. I just wanted something that I could give them free that would bring relief to their scalps so that they could wear their hair prosthesis more comfortably.

Because I was experiencing all the things my clients would tell me about, an itchy sore scalp, I became the first test case for our new shampoo.

Throughout ’91-’92, I used the product but we changed the formula until we finally came out with something we thought was phenomenal. In 1993, I started to manufacture the shampoo for my clients and they just absolutely loved it.

I never intended to distribute my shampoos to anyone but my own clients, but word got out.

People talk, especially when they have a medical problem. Clients would tell their friends that their scalp felt much better and promise that next time they went to Brian Joseph’s they’d get them some and send it to them. So now we have vendors all over the United States that offer the Brian Joseph line. (cont. on pg. 21)

13 The National Hair Journal Fall 2010

From Hollywood...

(cont.from pg.10)

NHJ: What are the requirements to become an EHK customer?

JM: There are no written guidelines, but we do like to feel an artistic kinship. We try to spend time with anyone who is a potential distributor.

We want long-term professional relationships.

NHJ: What steps have you taken to make sure that Erwin’s designs are executed to the same high standards on the production end?

JG: Numbers talk, and there’s no doubt the money we put into design and manufacturing ensures us an enviable position. But it goes beyond that. We didn’t simply show our production people a product; we brought in our own team and we virtually lived in the factory for10-12 hour days while we put everything under the microscope - literally in some cases.

We have a great relationship with our factory owner because he is proud of the product and wants a long-term relationship. That’s not to say that we don’t look at other factories, but we’re very happy where we’re at right now. Our factory has proven that it can deliver the product the way we designed time and time again.

NHJ: Could a hair expert hold up an EHK product and say, “I recognize this”? And if so, what would he be noticing?

JG: He would have to pick up a brush. The minute he brushed the hairpiece he would notice it moves exactly like growing hair. This is what sets our product apart more than anything else. The natural movement makes the hair looks and feel like it’s growing on your scalp. There are no slits, no directional problems, and no large knots. If you look at a man with a full head of hair, you will note that different sections on the head grow in different directions. That’s what Irwin has achieved in our designs.

NHJ: There seem to be two market forces at play at the moment; on the one hand you have people looking for economy in these difficult economic times, and on the other hand you have the flight to quality. Clearly, you chose the second path.

JM: Our clients choose the path. We’re fortunate to have clients who are insulated from many of the economic forces out there. They may feel the contracting economy, but it’s not affecting their disposable income and they’re requesting better-looking hair replacements.

So we decided to concentrate on this group and we found that by creating a superior product and raising those price points we were working smarter.

NHJ: Do these clients see Hollywood as something that’s within their reach?

JM: They used to think it was out of their reach. When people saw someone like Bruce Willis or Nicholas Cage with hair they thought, ‘Oh, I can’t get that. It’s out of my range.’ Well, we’ve proven that they can!

NHJ: In the movies the actors wear hair not to cover up a problem, but to transform themselves for a different role. Does the fact that you are offering “Hollywood hair” makes your clients perceive themselves as changing roles, as opposed to fixing a problem?

JM: Without a doubt. When they see someone in the movies with more hair or different hair, it legitimizes the whole experience of wearing a hair replacement.

NHJ: How would you define today’s client?

JM: It’s always been about appearance, but more and more it’s about baby boomers and their crusade against aging. It’s either about someone wanting to look the way they feel, or someone who is still relatively young not wanting to accept the first signs of aging. We have a youth-oriented culture; I think that’s what drives our business.

NHJ: We talked earlier about some of your design and quality control procedures. How can you ensure consistent standards?

JM: We go back to our factories regularly for remedial training. There are many moving parts to this product. Our close relationship with the factory is one of the most important.

NHJ: The movies are a world of romance and

imagination. Do you try to create the same magic when you work with your clients?

JM: Without a doubt. The experience of getting an EHK is different from a conventional hair replacement. I’ve been a hair wearer for many years myself, and even I was surprised by the way it feels. It’s extremely light; you don’t even know it’s there. That’s a factor we didn’t consider initially, but it is turning out to be one of the most important.

NHJ: Is the EHK collection only available in human hair?

JM: That’s correct.

NHJ: Are there any other products or support tools?

JM: Right now we’re working on a signature EHK bond.

NHJ: Do you require special training to become an EHK distributor?

JM: We do offer training, but there is no formal certification process. We have people who spend a weekend or even a week with a new salon. We want to get them off on the right foot.

NHJ: The “right foot” in today’s economy usually means, “the right bank deposit...”

JM: Every salon has a certain number of highly discriminating clients. If you can upgrade those clients, you can increase your sales by 30percent without even putting on one new client.

We are a company that doesn’t brag about its marketing successes, but in this case we have a tangible track record; we can prove it.

Erwin Kupitz - For over 20 years Erwin H. Kupitz has been a master creator of Hair Additions for the major motion picture companies in Hollywood. His personal Hair Replacement clients read like a who’s who list of Hollywood mega stars.

Motion Picture Credits – Forest Gump, Congo, Casino, Austin Powers (First),Star Trek Features 1994 on, Titanic, Mask of Zorro, Enemy of the State, Mystery Men, Fight Club, Return to Me, Gone in 60 Seconds, The Kid, Pearl Harbor, The Yards, Bedazzled, Roller Ball, Rock Star, Jurassic Park 3, Monkey Bone, American Sweetheart’s, Ali, Panic Room, Wind Talkers, Catch Me If You Can, Raid of Fire, Bad Boys 2, Hollywood Homicide, Wonderland, The Alamo, Gangs of New York, A Man Apart, Austin Powers Goldmember, Chicago, Hidalgo, Beyond Borders, The Great Raid, Scooby Doo 1 & 2, Master & Commander, Starsky & Hutch, Anchorman, Chronicles of Riddick, White Chicks, Flight of the Phoenix, Lemony Snicket, Mrs. Harris, Down In The Valley (E. Norton), Cheer Up, Mr.& Mrs. Smith, The Pink Panther ( B. Knowles), Fun With Dick & Jane, Bewitched (S. MacClaine/Jennifer Aniston) Sin City, The Fountain (H. Jackman)

16 The National Hair Journal Fall 2010

WE HAVE MET THE ENEMY… and He is Us

By Steven DiManni

So said Pogo in the eponymous comic strip. You remember Pogo, don’t you? He lived in a swamp with other strange creatures, all of them spouting political and satirical commentary on the lives and times of us all.

If this opening seems different from most of my columns, well, you’re absolutely right.

This fall of 2010, I’d like to talk about culture, about public opinion, about changing values, and how they affect the fortunes of every hair replacement studio in the country.

Every one of you who is reading this is in all probability, a rather intelligent individual. You can draw parallels, gain insight into cultural implications, and lastly, infer your own conclusions.

When I say that most people who are reading this are intelligent, I’m not blowing smoke. I get many responses from the people who read my column. Mainly they come from studio owners. Their remarks are quite interesting, and arresting. A lot of thought goes into what they write, and I appreciate it.

More than any other column I have written, I’d welcome your comments on this one; you’ll understand why as my editorial unfolds.

Self-Fulfilling Prophecies There are many studio owners who believe that the men’s hair replacement business is going the way of the “buggy whip”. In other words, it has passed its time of relevance.

There’s evidence to the contrary, of course, but let’s stay with the aforementioned perception.

If what studio owners really mean is that the men’s hair replacement business is not what it once was, and will never be again, they are totally correct.

The “golden days” of the late 80s and 90s are decidedly behind us. So much has changed since then. Let me elaborate.

In 1990, there was no internet. No email.

No DVRs, no HDTVs, and CDs were only seven years old.

There were no cell phones, either. No GPS. And cable TV was just beginning to be relevant.

Hard to believe, but true.

So it stands to reason that the man with hair loss that we once counted on to respond to a small space ad in the newspaper has also changed. He doesn’t use media in the same way that the men of twenty years ago did, for one. He is barraged by messages and cultural influences that were unthinkable in years past. He just isn’t the same guy.

But many studios want to reach him in the same way. Even though we know that’s impossible….

Consider the Answering Machine Even in 1990, only about 40% of American households had answering machines. Think of how they’ve affected our business.

“Caller ID” was also a rarity. You had no idea who was calling you, whether friend or foe (someone trying to sell you something, presumably).

Oh yes, and in those days, you’d also encounter a busy signal. You remember the busy signal don’t you? With the advent of today’s call waiting, you almost never hear one.

So things have changed considerably.

Whither the Brochure In 1990, the mainstay of a studio’s marketing arsenal was the brochure.

It was great bait to get a consumer to respond to an ad or TV commercial.

Steven DiManni “Call for a free brochure” became the mainstay clarion call of the business.

But in the mid to late 1990s, when Hair Club began offering “free” airline tickets to vacation destination to buyers of its processes, you had to know the jig was up.

Brochures were losing their relevance as the be all, end all of lures to balding men.

It wasn’t at this time that men were all of a sudden turning to the internet for information. Perhaps a few were, but that was still a couple of years in the future. Moreover, men, and should we say society as a whole, were less apt to read.

Visuals were taking precedence over words. This had nothing at all to do with the hair business, but with cultural norms.

English composition, English literature, et. al., were being less stressed in schools, beginning in the sixties and seventies.

Twenty years later, these former students were now balding and ready for our services. But reading was not at the top of their priorities.

The “Grunge” Factor “Grunge” was a term that found its origins in a type of rock music that emanated from the period’s garage bands from the Pacific Northwest. But soon, it exemplified not just a style of music, but rather, a style of dress and fashion (to use the term very loosely).

Grunge meant ill-fitting, mismatched clothing, frequently torn and frayed. It meant tattoos, greasy unstyled hair, and in some cases, no hair at all. Yes, men were shaving their heads and sometimes adding tattoos to their shaved scalps.

While the grunge movement never became totally mainstream, it had its influences.

“Casual Fridays” soon came into vogue in the workplace. Sales of men’s suits went down. Neckties were soon tossed away in favor of an open collar look. And in many cases, the collar disappeared as well.

A Perfect Storm You’ve all heard of the “perfect storm”, haven’t you? In the early 1990s, three separate storms came together off the eastern seaboard of the United States, resulting in severe damage to the coastline, disruption of commercial fishing, and a movie that saw George Clooney ride his tuna boat down to Davey Jones’ Locker.

How ironic that around the same time, the men’s non-surgical hair replacement business was having a perfect storm of its own: technological advances that conspired against the industry’s marketing practices, a change in the way in which information was received, and a cultural shift in fashion and style.

As the old song said, “something’s got to give”. And it did.

No One’s to Blame Just as in the case of the real perfect storm, no one can be blamed for its occurrence.

We were—as they used to say at the old Ted Bates advertising agency—simply O.B.E. That is, Overtaken By Events.

While it was happening, no one, and I mean no one, could see that it was happening, much less anticipate its consequences.

I’m not letting the industry off the hook here. I’m not pandering. I’m just saying that it’s impossible to plan your way out of something when you can’t even tell what that something is.

And Then Came the Internet To make matters worse, just a few years after the “perfect storm” I wrote of above, the internet was making forays into all of our lives. Websites, email, and search

engines initially; broadband, streaming video, and social media in the post-millennial decade thereafter.

The problem with the internet for everyone from Procter & Gamble to a hair replacement studio was that it changed the way people received information. The audience for the printed word, as in newspapers and magazines, was shrinking as consumers started to get more news, information and entertainment from the internet.

Yes, people still read newspapers and magazines, but that audience was smaller as it competed with the audience for online media. There were now many more choices at the consumer’s disposal.

People also turned to the internet for video entertainment, spending hours on YouTube, instead of in front of their TV. And then, with the advent of Hulu, you could actually watch TV on the internet (albeit a limited amount of programming), for free.

It is estimated that up to 4% of the population was watching TV on Hulu. But the same group was also watching TV on cable.

And while the number of people watching “over-the-air broadcasts”, such as NBC, CBS, et. al., on their cable connection was down, people watching a variety of over 200 “cable networks”, in both high definition and analog, was up.

Just as in years past when the advent of TV supposedly spelled the demise of the movies, the advent of cable didn’t kill other media, it just added to the choice the consumer had. It “splintered” or “fragmented” the audience.

The advertiser was then left with a bewildering array of choices in where to invest his or her marketing dollars.

Social media further complicated this dilemma. MySpace, FaceBook, YouTube, and Twitter also competed for the consumer’s time and media consumption. But now there was an added dilemma. Social media took the marketer’s message out of his hands and put it into the consumers’.

Chaos soon occurred. Chevy Tahoe launched a social media campaign in which people could choose from a variety of online assets provided by Chevy and create their own ad touting the Tahoe. Instead, consumers took these assets to trash the Tahoe as a socially irresponsible vehicle that destroyed the environment. Not what Chevy had in mind—they soon pulled the campaign.

When Dominoes Pizza went into social media, the quality of their product created so much backlash (people saying it tasted like crap, etc.) that they had to launch a $100 million TV campaign explaining that they decided to change their product.

Again, social media can have its dangers.

Such as blowing a product or its advertiser out of the water.

Free is Not Free Many people took the perception of the internet as being “free” at its word. You could get email for free, log onto search engines for free, and get all the free information you wanted from websites that you could access for free.

Many advertisers, including those in the hair business, thought you could just develop a website, post it up on a server, and get “free” leads. But who was going to view the website?

Oh, yes, that little technicality came to the website’s owner when they realized their website had no visitors. One way to drive traffic to a website is through traditional media, such as TV or radio or newspaper.

An other way is to undertake SEO, organic search optimization. In the early years, this was fairly easy to do. In later years, it required a full time commitment to having an administrator constantly “massaging” the website.

Then, of course, there was “pay for word”, or SEM, in which an advertiser bought key words in an auction from search engine in order to generate higher listings. But this could prove to be even more expensive than TV. The promise of the free web proved to just that: a promise. No one works for free. No

one gets anything for free. (By the way, Hulu is now charging $10 a month to watch its limited TV schedule online.)

So hair replacement studios were back to where they started. They had to spend money to generate leads. But many hair replacement studios were convinced that spending money couldn’t generate leads.

So they counted on getting present-day customers from competitive studios. Or getting into “side businesses”, such as women, or multi-therapeutic.

But it takes money to generate leads in both the women’s market and the “hair regrowing” business. And there aren’t as many women with thinning hair as there are men with thinning hair.

Back to Square One In many respects, the men’s hair replacement business today is back to where it was in the early 1980s.

Due to the pullback and reluctance to advertise men’s non-surgical hair replacement, the business has become under-marketed, just as it was twenty-five years ago.

And just like twenty-five years ago, the studios that are running advertising are conveying a message that is totally out-of-touch with the consumer.

Finally, studios are not reaching the consumer where he can best be found, as was the case twenty-five years ago when the media protocol was to run small space ads in the back of newspaper sports sections.

It’s Time for a Total “Re-think” Let’s cut to the chase: if you think that men don’t want hair anymore and want to be bald or are at least satisfied with close cropped or shaved heads, how do you explain the continued sales of Propecia and minoxidil?

If you think that men want to be bald, how do you account for the massive amounts of money spent by the likes of hair replacement clinics, such as Bosley?

And if you think that men just aren’t interested in non-surgical hair replacement anymore, why do you think that Hair Club continues to expend massive amounts of dollars in its marketing efforts? Unless you think they’re just being charitable to cable TV stations, which I believe is rather unlikely.

Hard questions. But the answers might be even harder to accept.

The Truth is….

Whatever problems the men’s non-surgical business has encountered are a direct result of two factors.

First, a changing media environment, a changing culture, and a changing consumer.

Second, a reluctance on the part of most hair replacement studios to make similar changes in their approaches to marketing.

No one can blame the industry for the changes that have occurred. But changes such as these are not untypical over the course of a quarter of a century.

To that end, the enemy is not some grand conspiracy, or some overly simplistic notion that “men just don’t want hair replacement anymore”. The enemy is us…the entire industry.

Quite frankly, we’re the ones who’ve done it to ourselves.

How do we un-do it to ourselves? I’ll give you a few suggestions in my winter column.

In the meantime, have a wonderful fall and holiday season.

Steven DiManni is a 28-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 having 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 the advertising that promotes the direct response industry’s preeminent awards show. A 27-year veteran of the hair replacement industry, Steven is a long-time consultant to the On Rite Company and is widely published in advertising industry magazines.

17 The National Hair Journal Fall 2010

18 The National Hair Journal Fall 2010

The National Hair Journal PROMOTING

Medical Section

COOPERATION BETWEEN THE ARTISTRY OF HAIR REPLACEMENT AND THE SCIENCE OF HAIR RESTORATION

Don’t Get Sued!

Being sued is an occupational hazard to the practice of medicine. Data from the Physician Insurers Association of America (PIAA, 2009) summarize the characteristics of the medical liability market in 2008: In fewer than 30% of the cases, money was paid to plaintiff. Put a different way, no money was paid out over 70% of the time. Many are being sued, but the system fails in efficiently identifying those patients who deserve a timely settlement.

By Jeffrey Segal, MD, JD, FACS When you are in the business of restoring or enhancing someone’s appearance, you are taking a business risk every day. Your idea of a positive outcome may not be the same as your client’s or patient’s.

Their expectations may be unrealistic. The problem they are seeking to solve may be more mental than physical. Whatever the reason, there are constant risks of miscommunication and sometimes bad faith. Cosmetic surgeons are more at risk than cosmetologists because their work is irreversible... and their pockets are usually deeper. So it is not surprising that a group of prominent physicians have come together to develop a program to provide advice, protection and legal defense for doctors everywhere. It is called Medical Justice Services and The National Hair Journal asked its founder and CEO, Jeffrey Segal, MD Dr. Jeffrey Segal, to explain how it works. Whether you are a hair transplant surgeon, a hairloss consultant or a cosmetologist, everyone can learn from this sobering article.–Editor Statistics 101 - First, some background. All practitioners are at risk for being sued. Yes, the likelihood varies from specialty to specialty; and from state to state. But, practice long enough and you will receive a summons.

The American Medical Association released a report surveying over 5,000 doctors between 2007 and 2008. The result: An average of 95 claims were filed for every 100 physicians. That’s an average of almost one per physician. Just under 50 percent were sued at some point in their career. 20% were sued two or more times.

And the doctor’s specialty determined the career suit rate: General and family practice: 80 claims / 100 physicians General internal medicine: 58 claims / 100 physicians Internal medicine subspecialties: 86 claims / 100 physicians General surgery: 213 claims / 100 physicians 170 claims / 100 physicians Surgical subspecialties: Ob/Gyn: 215 claims / 100 physicians 116 claims / 100 physicians Radiology: ER Medicine: 109 claims / 100 physicians The longer you practice, the more likely you will have been sued over your career.

Those aged 55 or older: 60.5% of doctors have been sued Those aged 40-54: 45.3% of doctors have been sued

In 2010, what fuels risk for doctors? There is often a disconnect between patient expectations and what can be delivered: • Cutting edge treatments do indeed involve risk.

• Colleagues who do not understand what you do, may transmit “doubt” or bad words to your patients.

• The Internet may be a positive force for marketing but a negative force for propagating slander about your practice.

• Cash-pay business, a new model of payment, creates potential tension and demands for refunds.

Each and every one of these issues can create the foundation for a lawsuit. Medical Justice is an entity that was created by physicians for physicians to address exactly these risks. This article will address the risks as well as the techniques that can be used to mitigate them.

The Disconnect Between Expectations and What Can Be Delivered - Plastic surgeons have been familiar with this category for years. There is only so much that can be done to transform a patient. The ultimate result is based on the patient’s foundation. Unfortunately, some patients expect that the plastic surgeon is more magician than physician, and that the scalpel is actually a magic wand. The problem is; the expectation may set the stage for disappointment. Expectations must be managed appropriately before treatment is started. Once underway, regaining control of a situation that is spiraling out of control is challenging.

Today, practitioners understand that though much is known, much is also unknown. Further, different patients will react differently to the same protocol. Accordingly, patients need to understand upfront that there may be a plethora of options, and that protocols might need to be changed.

Sometimes choice creates confusion – in fact, some behavioral scientists speak of the” tyranny of choice”- the excess amount of choice creates paralysis. Having many tools in your toolkit is better than having no tools. But, it can sow the seeds for confusion. Further, some protocols might fail. Finally, there are some symptoms/conditions which cannot be effectively treated in anyone’s hands. The pre-emptive solution for these issues – effective communication, upfront.

Cutting Edge Treatments Do Involve Risk - As a field comes of age, much is learned- not only what works, but, more importantly, what does not work. Not too long ago, a drug which modulates immune disorders, anti-TNF, was used to treat multiple sclerosis. Multiple sclerosis is a prototypical autoimmune disorder. So, it stood to reason that if anti-TNF was useful in treating other autoimmune disorders (such as ulcerative colitis and rheumatoid arthritis), it was rational to believe that it might work in MS. What happened? The drug made patients worse. The point is until different techniques are actually tried and tested over time, it is impossible to know with certainty what the long-term results will be. That, of course, implies risk. Risk to the patient. And potential risk to the practitioner.

Now, just because a patient experiences risk does not mean that a physician will automatically be sued.

To be sued for negligence, multiple elements must be shown. The standard of care was breached.

19 The National Hair Journal Fall 2010 The standard of care being what a reasonably prudent physician would do in same or similar circumstances. That the breach caused damages. There indeed were damages.

In a typical medical malpractice case alleging negligence, items #2 and #3 are the most important issues. The reason: Usually, there is already a well-established doctor-patient relationship. And, usually there are actual damages (otherwise an attorney would not even pursue the case).

Proving standard of care ordinarily requires expert testimony. Unfortunately, if the plaintiff’s expert is an individual who does not even understand what you do, is unfamiliar with the literature, or has not practiced any medicine for the past decade, it is unlikely he will view your position favorably. Medical Justice provides a template for plan member physicians enabling patients to sign a contract before receiving any care. That contract states should there be a legitimate dispute, each side will use a Board-certified or properly credentialed expert in the same specialty who is a member of and follows the code of ethics for that practitioner’s specialty society. This insures that there will be competent individual to opine. Further, it will establish that the expert is properly accountable. This decreases the possibility that a plaintiff ’s attorney can go to Google, enter “expert witness”, and pick any expert he wants, competent or otherwise.

Those in an emerging field would be best served if their contracts established that all experts (for plaintiff and defense) will be members of a professional society that understands the risks, benefits, and options related to specifically their field.

Using contracts, such as those proposed by Medical Justice, can deter unwarranted litigation.

While the average physician is sued at a rate of up to 10% per year, Medical Justice Plan members are sued at a rate of under 2% per year.

Next, it is essential to “warn” and document.

To the extent there are known risks related to a particular treatment, they should be spelled out to the patient explicitly. Further, the various options - including no treatment at all - should be discussed, explained, and documented.

Ideally, the decision to receive a particular treatment should be as informed as possible. In some situations it makes sense to bring family members, such as a spouse, into the discussion – and sign the informed consent. Sometimes a spouse might be the sole person bringing a lawsuit if there is an untoward result – perhaps because the patient died or is now incapacitated. The best way to sidestep the argument – “I told him he never should have had that operation” - would be to include the spouse in the discussion and get his / her signature on the consent form.

Your Colleagues - For those embracing cutting edge techniques, some will understand what you do. Some will not. History is replete with examples of those who were well ahead of their times. The connection between helicobacter and ulcer was made years before it became common knowledge. The connection between homocysteine and cardiac disease was likewise an old finding. Nonetheless, many cutting edge ideas have proven ineffective. As the numbers of new medical techniques are put to the test, we are learning that some have merit, some do not. But this is how all treatments are ultimately verified or refuted.

Practitioners will often be on one part of a bell curve or another. Some will be early adopters.

Others will follow the pack. A few will be the last to participate, if at all. Depending upon how a treatment pans out, there are advantages to being on different parts of the bell curve at different times. If you are an early adopter, some of your colleagues will not speak kindly about your methods, no matter how sound. Of course over time, they might, and likely will, change their sentiments. But, in the meantime, they might sit back and judge harshly. If a patient comes to their practice and they hear what you have done, they might respond with doubt or contempt. Those reactions can turn an unhappy patient or a suboptimal result into a lawsuit.

Refunds - Many practitioners are shunning traditional insurance-based reimbursement – being paid directly by the patient – potentially changing the traditional dynamic. Those who pay out of pocket will occasionally expect or demand a refund for a less than optimal result.

The subtext behind such demands for refunds is that the patient will sue if the money is not returned. This scenario is not at all uncommon with surgeons who perform aesthetic procedures or ophthalmologists who perform Lasik.

To illustrate: many aesthetic surgeons have at one time or another been faced with the fol-

lowing conundrum. The surgeon performs a procedure, done with technical adeptness.

Unfortunately, the patient is unhappy with the result. The surgeon offers to do touch-up which the patient might or might not accept. Several weeks later, the physician receives a letter demanding a refund. Sometimes, the letter also demands additional money so the patient can pay for a second round of surgery elsewhere.

Either implicit or explicit in the letter is the understanding that failure to tender a refund will lead to a potential lawsuit.

On first blush, it might seem reasonable to give the patient her money back in exchange for assurances that the matter is closed. That logic assumes that the physician is in the service business and he wants to do all he can to make the patient happy. To facilitate such matters, some insurance carriers will provide a template of a “full release” for physicians to have their patients sign agreeing that the exchange of money means that there cannot and will not be a claim for medical malpractice. Also, Medical Justice provides a template of such a release for its plan members.

The next issue is related to the scope of such a contract. Most states do not allow an individual to contractually forego the right to file an administrative complaint with the Board of Medicine. In Florida, for example, grounds to discipline include: Failing to comply with the requirements of sections 381.026 and 381.0261 to provide patients with information about their patient rights and how to file a patient complaint. Hence, a physician may find himself in the position of having tendered a refund, expecting that would be the end of the matter, only to find out that the Board of Medicine is investigating a round of specific allegations. The longer a conflict lingers with a patient, the more likely a complaint may be filed with the Board of Medicine.

The third concern relates to whether such a payment is reportable to the National Practitioners Databank. The answer is that it depends. The federal Health Care Quality Improvement Act requires any “entity” which makes payment in settlement of (or in satisfaction of a judgment in) a medical malpractice claim to report the payment to the Databank. In American Dental Association v.

Donna Shalala, US Dept of Health and Human Services in 19931, the appellate court addressed two questions. Are individual healthcare practitioners, such as dentists and physicians, considered “entities” required to report payments? Next, does the Act require reporting of “noninsurance” type of payments such as refunds? The court concluded that an individual tendering a payment did not have to report to the Databank, but an entity, such as the corporate entity employing a solo-practitioner physician would. The court was silent as to whether a refund would qualify as a reportable event.

If a refund is given in response to a written demand for money, it can be a reportable event.

The exception is if the practitioner pays from his personal funds. A refund paid with personal funds is not reportable. On the other hand, a refund tendered by a corporate entity may be considered a payment made for the benefit of the practitioner (and is reportable).

An oral demand for money probably is not reportable. A waiver of a debt is not considered a payment. Accordingly, it is not reportable.

One might ask; how would anyone know if the solo-practitioner corporate entity employing the physician failed to report to the Databank?

If the patient signs a contract not to file a malpractice claim, and breaches, the only remedy the physician would have would be to challenge the breach in court. The physician would have to create a public record seeking to enforce the agreement. As noted, that agreement might by its very nature have established a duty to report. This would obviously tilt the balance of power to the patient in being able to secure a second monetary settlement in exchange for silencing the matter. Further, physicians are generally under an obligation to report settlements to the Medical Boards each time their licenses are renewed. Failure to report, combined with a public court record of a “reportable event” might create additional headaches with the Medical Board, hospital credentialing committees, and more.

Finally, a refund can be improperly construed as a tacit admission of guilt. That is, the act of tendering a refund can be manipulated by a clever plaintiff’s attorney to support the argument that the doctor would never have given the refund unless he was guilty of malpractice. (cont. on pg. 25) One can certainly defend

20 The National Hair Journal Fall 2010

Extending the Choice for Cancer Patients

Before suggesting hair extensions however, you must be certain that your client is a good candidate for this service. As a professional hairstylist or hair extensionist, you won’t want to cause any additional trauma. Your client needs you to be their savior with safe, effective solutions, so do your homework.

Several hair extension companies today offer 100% keratin protein bonds that do not damage already fragile hair. No glues or adhesives are used, allowing hair extensionists to operate at a faster speed.

Clients who lead active lifestyles can take a shower or shampoo their hair as they would normally, then

By Hannah Mayo

Hair loss can be a devastating side effect of chemotherapy. The emotional experience is indescribable. However, professional salons, wig ateliers and hair replacement center owners can now provide cancer and chemotherapy patients with hair reconstruction options by offering professional hair extensions.

In October 2009, Sherry Gray was diagnosed with breast cancer. She had always been an adventurous,

We Fall For It Every Time!

By Mark Deo

In this difficult economy everybody is looking for a bargain. That’s why we have to seriously entertain reducing our prices in order to compete effectively. Right?

WRONG! We fall for it every time.

If you are a finding that your clients are putting more and more pressure on your firm to reduce prices then it’s about time you change your clients! That’s right often times price erosion is not so much a problem with your pricing strategy or product selection or service but rather your customer profile.

Continually reducing our price is like prostitution.

WE can never become cheap enough. In fact the cheaper we get, the less valuable we are perceived.

I encourage you to look at your customer pool and begin to segment them not so much by demography or psychographics but by “value perception.”

Do you understand why those specific customers are “willing to pay more?” What is it that they value that the “price-oriented” customer does NOT? Why? Then you can create a NEW customer profile and focus on those clients that find great value in your product or service. Perhaps you can even discover a way to create evangelists who trumpet this value claim.

Mark Deo is a business consultant, author and radio broadcaster. His recent book, The Rules of Attraction was a top seller on Amazon.com. Mark co-hosted the Hair Hour radio talk show with Hair Journal editor, Chris Webb for three years. He offers business-coaching services through the SBA network.

free-spirited and independent person who wanted to take care of those around her. In February of 2010, Gray defeated her cancer, but she still had had another challenge to face, “I looked like a boy. I wore a hat everywhere I went and was still mistaken for a man.” Grey eventually learned about hair extensions and met with a SO.CAP. USA educator.

She received a full head of professional hair extensions in Sulphur Springs, Texas and proudly exclaimed, “I wanted to get back the beauty that was taken from me… and I have found it, thanks to my extensions.”

blow dry and be on the go. There is no messing with tapes, adhesives or having to shave portions of their head to place a hair piece or wig. Professionally bonded hair extensions can last up to six months with regular at home and salon maintenance using the correct products.

So what are some things you should look for when shopping for professional hair extensions? Kathy Williams, a regional director of education with SHE Hair Extensions by SO.CAP.USA advises, “First, do some research. Your hair loss clients will be looking for a permanent solution until their hair grows back, so make sure your extensions are coming from a quality resource. For the best results, use 100% natural human hair. Some hair extensions have a silicone coating that may look nice when you start, but after several washings it comes off and your client can be left with unmanageable hair.”

Williams also points out the importance of a formal consultation to discover and record the current state of your client’s hair and any special needs. “As a hair extensionist, you should be able to identify a customized solution for every client.”

Special certification classes in hair reconstruction are available. You need to be professionally trained in hair extensions before you can move ahead to hair reconstruction. Once you are trained and certified in hair extensions, it is important to effectively market your specialized services. One of the best ways is to create a portfolio of your best makeovers with a professional photographer. Include as many before and after pictures as possible along with testimonials from your clients. Try reaching out to cancer centers, plastic surgeons and local support groups. And explore social media outlets. Websites like Facebook allow you to join groups made up of chemotherapy patients or people with special hair loss needs.

Ron Cardillo, Sr. president of SHE Hair Extensions

by SO.CAP. USA notes, “Hair extensions provide a safe and effective hair replacement option for men and women with medical hair loss. Proper training is essential. Trade magazines like The National Hair Journal as well as company information published on the Internet will help you find the education and marketing support services you need.

Without certification in hair extensions, you won’t be able to offer the best solutions to your clients.”

Hair extension artistry is a service that will grow exponentially for your salon when it is based on a quality product, accredited technicians and a well coordinated marketing plan. And if you do everything right, those word-of-mouth referrals are sure to follow!

Hannah Mayo is a Marketing Director at Marketing Solutions, headquartered in Fairfax, VA., a PR company specializing in the professional beauty business.

21 The National Hair Journal Fall 2010

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An In-House Wig Store?

By Helena Gibson These days, it’s nice to have additional streams of income - I meet a lot of people in my work and, of course, we exchange opinions about trends and opportunities in the hair replacement industry. But when I say I have a wig store, I sense them conjuring up images of a dingy hole in the wall and they respond, “Ohhhh… you own a wig store,” followed invariably by a somewhat hesitant pause. I reply with an enthusiastic, “Yes!” and tell them I take pride in the fact that I have a beautiful upscale store that not only attracts new wig and hairpiece wearers, it does so in sufficient numbers that vendors compete for my business.

Think about it - There are significant benefits to be had from providing multiple wig, hair enhancement and hair extension choices within the confines of one hair studio. Not only do you provide an excellent selection of temporary solutions to clients who may be contemplating more permanent options, you also open your business to entirely new customers and streams of income that previously would not thought of coming through your doors.

I started with very little inventory - You don’t need a lot. I’d recommend about 20-25 wigs. This allows you to offer some long, short and medium length styles and the clients get a selection of wigs to try on. I find that after clients try on 5-6 wigs, they can get confused.

Quicker is better - Wigs have a faster delivery time than a custom hairpiece. It usually takes only 1-2 weeks. Customers love it when they don’t have a long wait. We charge $2 for a special cap to use when they try a wig, unless they buy or are already a client. This is important precaution in a retail environment! The average wig sold in my store is machine made and priced around $150.

Smile - Your consultations should be very similar to what you are already doing with your hair replacement clients. This is consultative-relationship based selling. You do it every day. The exception can be when your client is going through chemotherapy. This client does not want to be there, so it is helpful if they bring a friend or spouse to support them. They may need to come in a few times before they feel comfortable choosing a hair addition or wig. However, I find my medical hairloss clients the most rewarding and I always smile when they tell me their doctor didn’t think they had begun to lose their hair yet! Clients like private fitting rooms - which most of you already have.

Network - Extending your wig business beyond the boundaries of your existing clientele can take some time. Get to know the referral nurses at the cancer facilities and make them familiar with what you do. I visit doctor’s offices and take brochures every 3 months. I also volunteer in our local cancer center. For quick exposure, try local T.V. Shows. I do these every few months to brand my studio as the hairloss expert in our area and remain

visible and fresh in the community. Local magazines and community based monthly publications can be useful too. Phone Books? Keep using them! I know there are mixed options on this, but I find clients go there first to see who’s in town, then visit the Web to get a feel of who we are and what we have to offer.

You don’t need to do everything at once to get started in this wonderful new income stream. But the point is it IS rewarding and there are SO many ways for it to grow and prosper alongside your NHJ existing business.

DIVERSION SUCKS! McLean, VA. 07/10 - JOE Grooming, a leading manufacturer of natural based professional men’s grooming products isn’t afraid to say, “Diversion Sucks™!” Yes, it is true; diversion is still the biggest challenge in the professional beauty industry. Many professional salon and spa product manufacturers have been frustrated for years and are almost at the point of giving up. While talk of ending diversion continues, the problem still exists and many industry professionals are to blame. JOE Grooming is speaking up about this controversial topic and taking the high road when it comes to insuring their products are not diverted!

The beauty industry has estimated annual product sales of $5 to $6 billion. $1 billion is currently considered diverted or counterfeit sales. According to the Beauty Industry Fund (BIF) and A.C. Nielsen’s Survey for the Professional Beauty Association (PBA), many salon professionals continue to support retail products that are commonly diverted to the mass retail marketplace. As beauty industry professionals, our job is to help eliminate diversion as much as we can, which is why it may come as a shock that the problem extends directly from our colleagues and top decision makers.

Dan Kliska, President of JOE Grooming says, “Some of the leading professional men’s product line manufacturers try to mask diversion by letting consumers know about the risks and dangers of product diversion. These messages focus on how the professional brands that consumers are able to purchase at mass retail can be expired, tampered with and even counterfeit. This is a misdirected and ineffective approach to end diversion. It is not the consumer’s responsibility not purchase diverted products. It is our job, as salon industry professionals, to ensure that these products are only available for purchase at professional salons, barber shops and spas. The irony in this situation is while these brands talk about the dangers of diversion they turn around and sell to chain retail stores and bargain shops.”

methods of data mapping, monitoring, tracking and enforcement to “curb” diversion at every level of distribution, JOE Grooming has an even better strategy. JOE Grooming has employed a business plan that allows salon owners, salon professionals and salon clients to purchase products directly from the manufacturer and only from the manufacturer. If your clients can only purchase their products direct from you and no one else they will stay loyal to you and the brand they know and trust.

hurts everyone inclusive of manufacturers, spas, salons, hairstylists and clients. We help salons and spas increase their retail sales, profitability and client loyalty, with a nationally respected high quality product brand. It’s time for salon and spa owners, hairstylists and staff members to stop tolerating diversion by banning their purchasing and support of diverted brands. Until you say ‘I’m not going to buy and use that product on my clients if it is diverted’, diversion will continue to occur.

Today, while many professional salon product manufacturers discuss employing modern

Dan Kliska adds, “Unlike most professional salon and spa brands, we sell our specialized men’s haircare and skincare products — direct!

We believe that salon and spa product diversion

For more information on JOE Grooming and how to stand up against diversion, call 888MORE-JOE, 703-847-1880 or visit www.joeNHJ grooming.com.

Patty of Hope (cont. from pg.12)

cleansing shampoo that restores moisture to the scalp and maintains a natural Ph balance.

the eye can be affected and chemotherapy patients can develop double vision.

I used to listen to clients who would complain that, “When I wear this wig I feel like there are ants crawling on my scalp!” Well, I didn’t realize what they were talking about until I went through it myself. I had to go down that road myself to know what they were talking about.

When we talk about hair loss, it isn’t only on the head. People also lose brows and lashes and body hair. There are some chemotherapy treatments and other medical conditions that can cause this.

Now, if we could save eyebrows and eyelashes it wouldn’t give chemotherapy patients that alien look. Without brows and lashes, your eyes just kind of float off your head.

Most of my chemo clients are being treated for breast cancer, and I try to help them in other ways too. In 1993, I became a certified breast prostheses fitter. I had had my first mastectomy in ‘91 and then I had another in ‘96. Since I had walked down the same road as my clients, I was able to bond with them and be able to talk about their journey. Nobody was able to ever show them a bald head or a mastectomy as I could, so now they are able to understand and make the right choices for them. Being able to share my own experiences makes me feel very privileged.

I’ve now come full circle. We developed a hand and body cream in the 2000s, and also moisture drops that contain an anti-inflammatory preparation that you apply to the burns created by radiation. The drops reduce the inflammation and helps to take away the swelling and discomfort. My newest thing, launched in late 2007, is a lash and brow gel that can save eyebrows and eyelashes while you are going through chemotherapy.

When you are going through chemotherapy, powerful drugs are put into the body that are very acidic. This draws moisture out of the skin and leaves it feeling tight, scratchy and itchy. To then to add a cranial prosthesis is just dreadful for these patients. They’re already so sore you can hardly touch their heads.

With hair loss caused by alopecia or lupus, you will notice that the skin on that scalp has changed metabolically. Most patients complain that their scalp is too dry or too oily. My shampoo has excellent cleansing and rinsing properties so there’s no residue left on the skin. The skin becomes more supple and there is less inflammation. Then the client feels confident about wearing something.

Our formulation is clinically developed. There are many shampoos on the market that have coatings in them that make your hair feel fuller or promise to give your hair more shine. When you don’t have much hair, you certainly don’t want to coat your scalp with anything – no balsams, no paraffin, no nothing. You want a good

We started working on developing an eyebrow and lash protector in 2007, and in 2008 we finalized the prototype. As with cranial hair, the thing that causes the brows and lashes to fall out is the drying effect that a combination of the chemotherapy and radiation produces.

The chemotherapy dries the lash brow hair it causes it to break off. Of course you will probably get your brows and lashes back about 90 days after you stop treatment, but what if you didn’t have to lose them in the first place?

Our lash and brow gel is made from a base of peptides. It’s all natural and does not contain any Lumigan as is found in many other lash and brow products. In fact, Lumigan should not be used on people going through chemotherapy because it is a kind of blood pressure medicine that’s used for glaucoma patients. When you go through chemo repeatedly, the optic nerve of

As it’s a very long journey that you take with these clients, I decided we should have a place where women could feel comfortable. Our salon has a water fountain, crown molding, and a teal carpet. We even have French doors. We have tried to make our clients feel like they’re at home.

It’s not easy to look at yourself in the mirror without any hair, and that’s something we don’t allow them to do. We have them face away from the mirror when they are not wearing their hair, and only allow them to face the mirror after the hair is in place.

In 44 years, this is the only job, where every day, I feel like I have made a difference in someone’s life and given back something that the disease had taken away.

The first part of this article was extracted from an article written by, KAREN UHLENHUTH that first appeared in 1996 in The Kansas City Star.

22 The National Hair Journal Fall 2010

Professional Beauty Industry Converges for Beauty Week

2010 Cosmoprof

By Larry H. Oskin This annual event brings professional beauty, salon and spa industry manufacturers together to share their new product launches and plans for the coming year with their distributors and sales representatives. Cosmoprof 2010 had over 700 exhibitors on a sold-out show floor, with dozens

of special educational seminars and stage presentations. As in years past, Cosmoprof North America attracted many new and innovative brands in addition to industry leaders such as L’Oreal Professional, SHE Hair Extensions by SO.CAP. USA, , Hair U Wear, All-Nutrient Haircolor, Paul Brown Hawaii, Conair, OPI Nails, Marianna, Orly, Rusk, TIGI, Beaming White, General Physiotherapy White Sands, Divi International with Depiléve and Hair Check as well as Zotos International.

Exciting New Focus & Trends: The show floor was rich with new trends and product innovations. Hair extensions are still hot! There were over 20 professional hair extension companies represented, showing this trend is here to stay.

Professional salon wigs, hair pieces and hair replacement companies were very well represented as this market is expected to remain explosive with aging baby boomers and many other factors that are bringing hair loss clients to the forefront.

Salon and dermatology-based laser hair restoration techniques are also a new trend that must be paid attention to. Hair texturizing / thermal straightening, haircolor, Argan oil based products, organic and naturally based products are quickly rising in popularity, while environmentally friendly new devices like hair brushes, appliances and salon tools continue to be innovatively invented and re-invented.

The North American Hairstylist’s Awards celebrated its 21st anniversary this year. Considered the Academy Awards of the professional beauty business, this really is THE show to be seen at! This year’s theme was Haute Fashion & Inspired Design. It was a star-studded event with almost 3000 guests in attendance representing top salons, hair designers, cosmetology students, distributors, associations and manufacturers from across the globe. Over the years, the event has evolved into a photography-based hairstyling competition, making it even more dramatic and electrically charged.

2010 North American Hairstyling Award Winners: Avant Garde Hair Design: Nicholas French of SHE Hair Extensions by SO.CAP. USA & Matrix Hairstylist of the Year: Tony Ricci of Ricci Hair Company, Edmonton, Alberta Canada Contemporary Classic: Alain Pereque of Salon Pure, Montreal Quebec, Canada Editorial Hairstylist of the Year: Steve Elias of Elixir Salon & Spa, Berkley, CA

Fashion Forward Hair Design: Antoine Vadacchino of Salon Pure, Montreal Quebec, Canada Haircolor: Chrystofer Benson of Salon Tantrum, New York, NY Master Hairstylists of the Year: Wendy and Oscar Bond of Bond Academy, Upper Montclair, NJ Makeup Artist of the Year: Seong Hee Park of New York, NY Student Hairstylist of the Year: Patrick Mathes of Aveda Frederic’s Institute, Indianapolis, IN Salon Team: Salon Pure of Montreal Quebec, Canada Texture: Dimitrios Tsioumas of Mizu New York, New York, NY Salon Design: Vasken Demirjian Salon of White Plains, NY Salon Master of Business: Lunatic Fringe of Salt Lake City, UT Guest Speakers: Best-selling author and leadership development architect, Susan Scott was the featured keynote speaker with a presentation on “Fierce Conversations & Fierce Leadership.” As part of PBA Symposium, Tabatha Coffey of Tabatha’s Salon Takeover shared her cutting-edge salon business building strategies with a presentation called “Tabatha’s Salon Solution’. She proved that she really is a brilliant and creative salon business professional.

While many television viewers perceive her as the entertaining “bitch” on her signature TV series, she really is a warm and motivating representative that all of us in the professional salon industry should be very proud of!

International Appeal: In collaboration with countries seeking to expand their exposure in the professional beauty industry, Cosmoprof North America dedicated special sections of the show floor to individual country pavilions to allow small and medium-sized companies to solicit representation from US distributors and retailers. Featured countries included Argentina, Brazil, Bulgaria, China, Italy, South Korea, and Taiwan.

2010 Discover Beauty Award: The “Discover Beauty Award” returned with 13 brands participating in the 2010 program.

Brands were judged on creativity, innovation and market readiness. The recipient of the 2010 Discover Beauty Award was Barista Bath & Body, the first full line of natural hair and skincare products to leverage the benefits of coffee appealing equally to men, women and coffee aficionados everywhere.

Beacon: Hundreds of cosmetology students took advantage of Beacon, which promotes the opportunities available to future hair designers, salon and spa professionals through advanced education, networking and award ceremonies. Industry leaders showed participants how to jump start their careers through effective marketing programs and explained how to operate a salon successfully.

Welcome To Our World: Everyone was invited to join the PBA and the beauty industry on Capitol Hill Thursday, September 16 from 5 to 8 PM in Washington, DC. WTOW has become one of the most popular events on Capitol Hill where salon industry professionals from across the USA converge to share an evening with Members of Congress as well as their professional staffs to share complimentary haircuts, mini-manicures, massage, so our countries leaders get to personally experience some of the best skills and services available today. Everyone meets here to discuss the issues that are most important to our professional beauty industry as well as to share important networking opportunities. To learn more, contact Sam Leyvas at 800-468-2274 EXT: 3437, email ProBeautyFederation@GMail.com or visit www.ProBeautyFederation@GMail.org.

NAHA 2011: NAHA prides itself on setting the standard for hairstylist achievement. You may want to be the next salon industry NAHA star!

Applications are already available for download at www.ProBeauty.org/NAHA or you can enter online. Full color NAHA Entry Forms and Brochures are also available from the PBA by calling 800-468-2274.

Cosmoprof 2011: Mark your calendars for July 24 to 26, 2011, where Cosmoprof, Beacon, The City Of Hope Awards and NAHA Awards will be celebrated again at the Mandalay Bay Convention Center in Las Vegas, Nevada. For more information on exhibiting or attending, please visit www.cosmoprofnorthamerica.com or call 800-557-3356.

EDITORIAL NOTES: The Professional Beauty Association is made up of salons, spas, salon chains, cosmetology schools, manufacturers, distributors, associations, publications, marketing and PR agencies while being dedicated to improving their individual businesses and the industry as a whole. Led by industry volunteers, this association offers business tools, research reports, education, government advocacy, networking and much more. For more information visit www.ProBeauty,org or call 800-468-2274.

Larry Oskin is president 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. For more information contact Marketing Solutions in Fairfax, VA at 703-359NHJ 6000 or email: LOskin@MktgSols.com. www.MktgSols.com.

23 The National Hair Journal Fall 2010

New Image International Symposium 2010

Lisbon, Portugal - New Image Labs held its 5th Annual International Symposium at the Pestana

Palace in Lisbon, Portugal. Guest from over fifteen countries traveled to experience two days of nonstop education and fun with some of the most talented and dynamic experts in the hair replacement industry.

The location and resort were spectacular. Lisbon, the city of the explorers, is full of historical charm and breathtaking panoramas. The Pestana Palace, a prime property and member of “The Leading Hotels

For Ultimate Delivery,” which talked about simple rules to always deliver the perfect application. He also showed his technique on how to deliver two tops with one full system. Mr. Ricky Knowles presented

“Ace of Lace – Men” to show how to master working with undetectable hairlines. He also presented “Fool Proof Scalp Preparations” (Featuring NXGEN Effects), to demonstrate correct scalp preparation. Mr. Gilberto Febles presented “The Ultimate Hair Club “W” Featuring Biolon,” a new innovative and exclusive material technology that delivers an all-new approach to the Women’s market. He also presented “Ace of Lace - Women” to demonstrate the how to for proper attachments, in salon care, and

of the World,” has been named Portugal’s leading hotel by the World Travel Awards and its gardens are classified as “National Monument”.

The educational team consisted of: Mr. Keith Zimmerman of Keith’s Hair Replacement in Wisconsin; Mr. Ricky Knowles of Ricky Knowles Hair and Wellness in Houston, Texas; Mr. Thomas Hoyer of A.S. Hoyer in Oslo; Ms. Isabel Nuria Friis of Global Hair International in Copenhagen; Mr. Gilberto Febles of Gilberto’s Hair Center in Miami; Mr. Oscar Urzola, Director of International Sales and Product Development for New Image Labs; Ms. Karen Taylor, International Sales Consultant for New Image Labs; Ms. Rosmery Estevez, Sales Consultant for New Image Labs Day one kicked off with an early breakfast, after which Tony Sciara welcomed his international guests and outlined the agenda for the next two days.

Throughout the day, guests attended classes which included Keith Zimmerman’s and Ms. Isabel Nuria Friis’s “Hair Selection Made Simple,” a presentation covering simple and easy to follow solutions on how to select the right product for your clients. Mr. Thomas Hoyer presented “Tips, Tools, & Techniques

client training. New Image Labs employees, Ms. Karen Taylor and Ms. Rosmery Estevez presented a guide to ordering products.

Sunday evening was the Gala Dinner reception and everyone had an amazing time and were entertained

by Brazilian dancers. The night was full of dancing, laughter and joy. It was also during this memorable evening that the Randy Martin Lifetime Achievement Award was presented by Mr. and Mrs. Martin to Mr. Finn Waldorf for his longtime contributions to the hair replacement industry.

Monday was filled with hands-on technical workshops by our line of expert presenters.

The New Image International Symposium was a memorable experience and everyone can’t wait to see what’s in store for next year’s event!

Editorial note: This report was submitted by New Image Laboratories.

24 The National Hair Journal Fall 2010

Bienvenu Transitions!

Virg & Cheryln go to Hong Kong

Transitions International Meets in Quebec

Quebec City, Canada - Transitions International, the only “member owned” marketing and sales organization in the hair restoration profession, held its annual marketing conference in Quebec, Canada. The meeting showcased a new customized PowerPoint for laser treatment sales presentations, some never before seen hair replacements with Caucasian human hair, as well as an exclusive meeting with the inventor of the Hairmax laser and a valuable sharing session amongst the members focusing on “What’s Working” and much more.

Virg Cristoffels in a Hong Kong training session

Virg Hong Kong hair replacement training session

Sioux Falls, SD, 08/2010 - Virg and Cheryln Christoffels, owners of Christoffels & Co. in Sioux Falls, South Dakota, recently returned from a ten day teaching and learning experience in Hong Kong. Virg, who has worked in hair replacement for over 35 years, was invited by the Harvard Group to share his professional skills and marketing savvy with Harvard’s managers and staff. Virg spent six days in their offices, consulting with

Transitions recognizing Guillaume Bard of Ross Regeneration, at their meeting in Quebec City, Canada From L to R–Greg Taylor, Marty Greenblatt, Virg Christoffels, Alicia Stevens, Guillaume Bard, Scott McCarty and Dennis Murphy

How to Hire A Digital Ad Agency Asking the right questions can help ensure success.

By Marketing Charts Smart companies looking to sign on with a digital ad agency should pepper their prospective vendors with questions. But not just any questions. Executives from several digital agencies and marketers offer their advice on the best queries to make to ensure a good match. Sven Larsen, chief marketing officer of Zemoga, a digital marketing firm that has created campaigns for Yahoo, HBO, Sears, Viacom and Toyota, suggests asking the following questions:

Transitions Members carefully inspecting new hair replacement products L to R: Jeffre Behm, Willy Campagnolo and Travis Johnson

1. If you had unlimited resources and budget, what would you create to promote the brand? A really good agency will have hundreds of answers prepared for this question, Larsen says.

“It will help you gauge what risks the agency is willing to take for the sake of innovation. An agency’s ability to not only predict future trends, but incorporate them into a successful marketing strategy is crucial.”

2.Do you collaborate well? Sometimes, agencies are hired to fulfill a task that can’t be done in-house. This usually means that an internal marketing team has already established a creative strategy, he says. “An agency needs to be flexible enough to execute a project within these guidelines, which may lay the groundwork for increased partnership in the future,” Larsen says.

Members having fun in beautiful Quebec City L to R: Scott McCarty, Virg Christoffels, Lew Hutchinson and Cherlyn Christoffels Alicia Stevens, President of Transitions, told members, “I believe Transitions is now supplying the highest quality professional, customized marketing materials for its members. Our brochures, video package, and photos are on a par with the best in the industry,” adding that she was proud of the professionals in the group, “The sharing and support they offer one another is unparalleled.” Transitions Administrator, Greg Taylor, told the meeting, “We are seeing more hair professionals become interested in our group. They are realizing we create outstanding materials, have strong contacts, and can offer products at cost to our members.

Furthermore, we are owned and directed by the Members with no outside control or influence and no hidden agendas.”

Editorial note: This report was submitted by Transitions International Group.

3.Whose work or what campaigns, other than your own, do you admire? An agency that is constantly monitoring its competitors will make sure that they’re producing the most cutting-edge marketing solutions for their clients, Larsen says. “They have a good handle on what strategies are successful, as well as what strategies have failed. They set lofty goals and come out with breakthrough products to maximize your business.”

4. How do you measure your success? This one might catch the agency off-guard, Larsen warns. “You’ll get to observe the balance between the value of numbers and statistics versus the value of creativity and innovation.”

It will also give you some insight into how the agency works and whether the key players are creative or analytical, he adds.

Virg Cristoffels in a Hong Kong training session

clients and conducting training classes.

The week ended with a seminar that demonstrated the latest hair replacement methods to 30 potential new and existing clients.

Virg says this was not only a chance to demonstrate Virg in training session what he has learned over the years, but also bring new ideas back to Christoffels & Co. Hong Kong is a beautiful city and Virg and Cheryln had the opportunity to make new friends and, of course, eat some true NHJ Chinese food.

5. What are some of your creative initiatives in social media? By now, social media has become an integral part of a brand’s marketing strategy - which often leads to a “Been there, done that” mentality among its usual proponents. “An agency’s ability to take something old and reinvent it demonstrates the staying power of its campaigns,” Larsen says.

6. What is your approach to user experience?

Ask how much time and resources are devoted to ensuring that the end-user has a positive experience of the product and how that is measured, he advises. “Good agencies try to please the client. Better agencies try to please both the client and the consumer. The best agencies find new and exciting ways to do it.”

CRM Integration It would also benefit companies to ask how well a digital marketing company can integrate into related IT infrastructure at the client company, says Justin Gray, CEO and Chief Brand Officer of MaaS Impact. To that end, he suggests asking: – How do your services integrate with our current CRM system? Integration is critical to leverage your existing investments. “You don’t want to create silos.”

– How will sales interact with and provide feedback on the marketing cycle? Most organizations view sales and marketing as separate departments, he says. “There must be a clear path of communication between the two or you are shooting in the dark.”

Nuts and bolts issues are important as well.

He suggests asking the following questions: – How can we maintain control without living in meeting hell? “You are investing in digital marketing to increase revenue - you can’t afford to add babysitting fees on top.”

– And most fundamentally, what is the average ROI? This question must be factored into any marketing initiative to justify the investment.

Also in the category of fundamentals, is what social media platforms will work best for a particular company or product or campaign, says Clay Dollarhide, the director of Digital Marketing and Public Relations for mPRm Public Relations. “A big mistake a lot of folks make is they feel they need to be everywhere and on every social media platform, which means they end up spreading themselves too thin and therefore not able to penetrate any of the social media platforms in a substantial way.

Have a discussion with your digital marketing agencies to see where they think your campaign could really succeed within the social media realm and don’t feel obligated to have a Facebook fanpage because everyone else has one.

MarketingCharts is published daily in the US by its own staff, and also features editorial contributions from other writers and analysts in the Watershed Publishing network.

25 The National Hair Journal Fall 2010

DON’T GET SUED (cont. from pg.19) against this argument, but it can be a trap for the unwary. Physicians who just give a refund and require no obligation from the patient might find themselves unpleasantly surprised just before the statute of limitations passes. This is another reason why a refund should be tied to a full and complete signed release by the patient.

Of course, many times a patient just wants a refund, treating the operation no differently than any other consumer purchase.

Analogously, they might request their money back for a defective appliance; and, in doing so; they generally do not embark upon a product liability suit. So too with patients, many will actually be assuaged by the refund and the physician will never hear from that patient again. But, that is not always the case.

To illustrate: The following case exemplifies how these vexing problems were faced by a surgeon. He performed a facelift and the patient was unhappy with the result. She demanded her money back. He accommodated her demand. Several months later, she wrote another letter saying that she would be incurring new expenses in having to undergo a second face-lift. She asked him “to find it in his heart to do the right thing” and give her the funds. The subtext was that she might sue if he did not write the check.

The surgeon clearly felt betrayed. He had assumed that once he wrote the first check, he was done.

Sometimes, even a conscious act of benevolence can create problems. As it is sometimes said, “No good deed goes unpunished.” If you give money back, think strongly about tying the payment to a release. If a refund is tendered, it should be structured in a way to close the matter, for the patient and the doctor.

Medical Justice can provide templates to help achieve this goal.

The Web and the Brave New World Historically, if a patient was dissatisfied with care, he or she could tell his or her friends and family. The criticism was limited to a small circle of people. If the patient was injured negligently, he or she could hire an attorney to prosecute a lawsuit. The threshold for finding an attorney and prevailing posed a significant barrier for the patient achieving redress. With the Internet, if a patient is unhappy, he or she needs do little more than access a growing number of Internet physician rating sites. In 2010, there are more than 40 sites. Such criticism can be rendered anonymously, and those with an axe to grind, such as disgruntled office staff, competitors, or even ex-spouses, can pose as patients. The posts are disseminated worldwide, and once posted, the criticism rarely comes down. While transparency is a laudable goal, such sites generally lack any accountability.

To make matters more challenging, physicians are foreclosed from responding to negative posts. Americans value free speech, and the antidote to offensive speech is more speech.

But physicians cannot react to posts because of state and federal privacy laws. And even if doctors could respond, would it make sense to post the medical record online to rebut an argument?

Of course not.

Given how important reputation is to physicians, the traditional remedy of suing for defamation because of libelous posts is ordinarily ineffective. First, many patients who post-libelous comments do so anonymously. Next, the Internet Service Providers (ISPs) hosting such sites are generally immune from liability for defamation.

Finally, the law has a very formal definition for libel, and a negative rating does not necessarily equate to “defamation.”

Medical Justice provides template agreements to its plan members to level the playing field. In 2007, Medical Justice developed its first agreement for physicians to use with patients to address online ratings.

The latest iteration of the Medical Justice agreement does not forbid any postings.

But, before the patient presses the “send button”, the patient transfers copyright of the commentary to the doctor. The doctor is free to enforce his copyright under what is known as the Digital Millennium Copyright Act. This allows the doctor to control the destiny of egregious content. By design, such control will be exercised rarely. The vast majority of patients (now in the hun-

dreds of thousands) asked to sign such an agreement have done so without any concern. The reason: the patient-friendly agreement balances the legitimate rights of patients with the reasonable concerns of doctors.

The web is a powerful marketing tool and doctors should welcome having their patients provide feedback. The template agreements provide physicians a viable remedy to anonymous defamatory posts.

Learning how to navigate the positive and negative aspects of the Internet will be mission critical for doctors in the next decade.

Summary - Practitioners in 2010 must be cognizant of the new risks they face. These risks can be mitigated by proper planning and clear judgment. In particular, physicians should consider establishing clear rules for their patients by contract before treatment is initiated. In particular, such an agreement should detail which class of properly credentialed and knowledgeable individuals can serve as expert witnesses should there be litigation. Further, all physicians need to discuss and document the risks, benefits, and options of their protocols explicitly.

Manage expectations before there is a problem and do not overpromise. For those practitioners who accept, in part or in full, cash payment for services rendered, attention must be paid to details vis-a-vis refunds.

And, of course, the web is providing new challenges to all practitioners. Agreements with patients in advance of treatment can provide a viable solution if a patient inappropriately rants on the Internet. Such rants may be little more than an early warning sign meriting better communication. But, not all patients can be appeased. It’s been said the customer is always right. But, not all customers have to be my customer. In closing, physicians should make every effort to deliver world-class service to their patients. Most of your patients will appreciate the extra effort.

Note: This article answers general professional liability questions. It isn’t intended to provide specific legal or tax advice.

Jeffrey Segal, MD, JD, FACS, is a neurosurgeon and member of AANS, NASS, and a fellow of the American College of Legal Medicine. He is Founder/CEO of Medical Justice Services, Inc., a business that protects physicians from being sued for malpractice for frivolous reasons. If they are, it pays expenses to countersue. Plan Members are set up with practice infrastructure to prevent, early action program to deter and counterclaim/countersuit program to prosecute proponents of meritless cases. The organization also addresses a collection of other challenges includes defamation against doctors on the web and unreasonable demands for refunds. More information can be found at www.medicaljustice.com.

What a Difference 100 Years Makes These Here United States The American flag had 45 stars.

The population of Las Vegas, Nevada, was only 30!

Two out of every 10 adults couldn't read or write.

Health The average life expectancy for men was 47 years.

Ninety percent of all Doctors had no college education.

Luxuries Only 8 percent of the homes had a telephone.

There were only 8,000 cars and only 144 miles of paved roads.

The maximum speed limit in most cities was 10 mph.

Beyond Snake Oil Pharmacists claimed, “Heroin clears the complexion, gives buoyancy to the mind, regulates the stomach and bowels and is a perfect guardian of health.”

Hair Care Most women only washed their hair once a month, and used Borax or egg yolks for shampoo.

Only 14 percent of homes had a bathtub.

More Hair Sy Sperling wasn’t even a client!

NHJ

26 The National Hair Journal Fall 2010

Hair Society News www.nationalhairsociety.org

How to Make a Hair System more Natural Looking

MARKETING TO MEN

By Marketing Charts Marketers targeting a male audience need to understand the critical differences between men and women, according to Dr. Bob Deutsch of marketing firm Brain Sells. Namely, men “consummate” and women “cycle.”

Male Consumers Seek Powerful Image Men and women are different biologically, psychologically and socially. Deutsch advises that men live in the “now.” They are concrete thinkers that like to consummate and complete what they set out to do.” Men are interested in power and in looking good even more than being good.

By Bobbi Russell I was sitting on a bench at the mall when I noticed a beautiful well-dressed woman walking my way. Her hairstyle was very nice but something was wrong. I could tell right away that it wasn’t her hair. My eyes were drawn to the base of her hair. She had no dimension. Her hair was the exact same color from roots to ends.

When it comes to attractiveness, both sexes want to garner attention, but each for different reasons. For men, looking good is looking strong, confident, authoritative and adventurous – being a standout. Men concentrate on looks to the extent that it signals something about what they do, have done, or can do.

Our hair replacement systems come in the most beautiful colors. Adding the natural shadow to the base of the systems will take the appearance of you systems to the next level.

Whether the hair is natural color or chemically colored, there is a natural shadow at the base by the scalp. On natural hair it is the new fresh grown hair that has not been exposed to the elements and on colored treated hair it is the week old or longer re-growth.

In contrast, regardless of how much a woman wants to attract in the contest of beauty and brains, their focus is on hope and details, and they concentrate on how appearance reflects their inner being. Therefore, successfully marketing to men, as opposed to marketing to women, requires more than changing colors, fonts and/or packaging.

Four Tips for Marketing to Men With these essential gender differences in mind, Deutsch offers the following four tips for marketers seeking to appeal to male consumers:

Look at the hair of the women around you. Look at the color from scalp to ends and how the color flows. Now how do we make our additional hair clients look like this?

So here we go…

Bobbi’s tips for success.

Use a demi permanent color (I like Dia color by L’Oreal because the color is flat. Remember we want a shadow only).

Apply to the hair only. Try to avoid the base if possible. I know it still happens, just be as clean with your application as possible. Roots should be 1/4 -3/4 inch at the base depending on the amount of shadow desired. I tend to use smaller roots on blondes and bigger roots on brunettes.

Only process for 5-10 minutes after application is complete. If a deeper richer root is desired leave on up to 20 minutes. After processing and before rinsing, use a wide toothcomb to extend color another ? inch or so. Process an additional 1-2 minutes.

When rinsing the system it is very important that the root color does not flow through the hair. HR systems are very porous and will absorb the color and change the tone of the hair. (This does come in handy if your system is too gold or bright and you want to tone it down). I recommend that the system be rinsed from the inside out holding the hair out of the way (as shown in the picture). Dia also tends to be a bit slimy, so rinse well!

After all color residues have been removed, shampoo the hair thoroughly.

Bobbi’s Dia Color Formulas The formulas below are guidelines only. They are very drab and flat, but I like it that way.

• Light Blonde Hair - med Blonde Dia • Blonde Hair or High Lighted Hair- Dark Blonde Dia • Dark Blonde Hair or Highlighted Hair - Light Brown Dia • Light Brown Hair - 3/4 Light Brown 1/4 Medium Brown Dia • Medium Brown Hair - 3/4 Medium Brown 1/4 Dark Brown Dia • Red Hair - Medium Golden Blonde Dia or Light Golden • Brown Dia, depending on depth of the red.

Please note that Golden Shades of Dia should only be used on very warm colors of hair. I use them rarely. NHJ

1. Time - Men tend to hone in, more quickly than women, on what they’re looking for. Men are not browsers, but shop for what they need “now.” In contrast, women can shop for something now and put it away for “later.”

2. Causality - Men are concrete and tend to tightly focus their awareness. Their notion of cause and effect is linear and men are visuallyoriented because of this concrete literality.

Seeking clarity, men create absolute distinctions: black-white, yes-no. Men dislike ensembles and tend to buy individual items. In contrast, many women like to think about how they can put together “outfits” and are creative in selecting, say, a variation on a scarf or a belt that will change the nature of one basic outfit.

3. Space - Men structure and relate to space as compartmented and sequential. To men, space is not relational, as it is for women. These kinds of underlying, fundamental gender differences can have critical implications not only for what makes an item compelling, but also for store design and product layout. For example, many women like the challenge and somewhat disorganized variety of off-price retailers such as T.J. Maxx or Marshalls. Men, even men who shop in such places because of price, are not there out of joy or desire.

4. Other People - For the male, it’s every man for himself. Men prize individuality and selfreliance. They conceive of other people as “my competition.” Daily life for them is a contest with winners and losers. This is in contrast to women, who often view other people as a source of strength. Note, too, that men never shop together. Women often shop with a friend and make a “day” of it. A man focuses on himself - the “me,” while a woman is focused on the “we.”

As noted above, men are interested in power.

Women are more interested in security. Men relate to “things” themselves. Women relate to the relationship between things. In today’s world, men might, for example, be paying more attention to grooming aids than they did years ago. But men are still grooming to go up the hierarchy, to be Number One, and be recognized as Number One. Modern man is still primal man, regardless of how much hair a man has to groom.

How Marketers Should Appeal to Women Deutsch offers the following seven tips for marketers seeking to appeal to female consumers: Recognize women’s ability to appreciate underlying patterns, realize women’s need for authenticity, provide quality as well as quantity or size, offer communality, validate women’s personal feelings and social intentions, offer quality of life as well as accumulation, and provide reasonableness rather than exaggeration or absolutes.

Marketing Charts is published daily in the US by its own staff, and also features editorial contributions from other writers and analysts in the Watershed Publishing network.

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

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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 54 Copyright ©2010. 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.

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27 The National Hair Journal Fall 2010

28 The National Hair Journal Fall 2010