TOP SALON & SPA OWNERS CONNECT FOR SUCCESS AT INTERNATIONAL SALON/SPA BUSINESS NETWORK’S ANNUAL CONFERENCE
ISBN presents Legend Award to OPI’s George Schaeffer
Owners and key managers from almost 40 of North America’s top multi-unit salon and spa companies joined together to “Connect for Success” at the International SalonSpa Business Network’s (ISBN) 2010 Conference, May 2-4, at the Terranea Resort in Rancho Palos Verdes, CA. The event featured two powerful keynotes—Accountability-based Leadership and Social Media Simplified—a power panel of key industry leaders, eight essential roundtables, Speed Meetings with vendors, plus plenty of time for the ISBN’s signature networking. In addition, the board re-elected Gordon Logan, CEO/founder of Sport Clips, to his second 2-year term as president. Formerly known as the International Chain Salon Association, the group represents leaders and senior executives from companies owning and managing from two to more than 12,000 salons and/or day spas.
“Connect for Success….what an appropriate theme for this year’s conference!” said Logan. “Success comes to those who seize opportunities, and there is no better opportunity to learn how to improve our businesses than connecting with our fellow members and our supplier partners here at conference. Opportunities abound for those who are prepared and who are willing to move forward. Real estate is cheaper and more available than in recent memory. Strong operators are finding that hiring and retaining outstanding stylists who are looking for stability and opportunity is easier than in many years. Advertising is more affordable than ever, and low-cost social media is making an impact, as well. Those who take advantage of those opportunities will position themselves today for even greater success in the years to come.
“With weaker operators falling by the wayside, we are going to see a strong move toward consolidation in our industry at all levels and all price points. Well-run aggressive salons and spas are going to gain market share and dominate their markets. Those of us here at the ISBN Conference are the leaders in this movement. Collectively, we are the most successful multi-unit salon and spa operators in the United States and Canada, and the relationships that we have formed and the ideas we have shared within ISBN are important factors in our success. We have an incredible amount of knowledge and enthusiasm in this group, and at our conference, we have an opportunity not available to most of our competitors—networking with others who are willing to share, to give as well as get, who are eager to learn how each of us can leave here with ideas that will generate even greater sales and profits in the months and years to come. Big and small, high-end or value priced, we all have something to share and something to learn from each other. I’ve been attending ISBN meetings for more than 20 years, and my business has grown in ways I never imagined as a result—regardless of the economy—thanks to what I’ve learned from my ISBN colleagues.”
TWO POWERFUL KEYNOTES
“Accountability-based Leadership” was the topic of Bob Prosen, president and CEO of The Prosen Center for Business Advancement. “Basically, you all have great people, great services and great customers,” said Prosen. “What makes the difference between a company that wins and one that doesn’t is the ability to execute. Your competition is not afraid of your ideas. They’re afraid of your ability to convert your ideas into results. It’s that ability to execute that differentiates your company in the marketplace, and that comes from having a culture of accountability.”
Prosen gave two questions to ask yourself when evaluating your team:
1. How often does someone ask or tell me something new about my business to help me accomplish something that I have never done successfully in the past? The answer should be “frequently.”
2. Given the choice, would I hire this person again for the same job?
In “Social Media Simplified,” Jenny DeVaughn, chief enthusiastic officer of Social Precision, showed ISBN members how to incorporate social media tools to drive interest, increase awareness of their professional brand and ultimately drive revenue into their businesses. “In today’s world, you are what Google says you are,” she said. In developing a social media strategy, she said to find out where your IDEAL clients spend their time online and be there. “It’s not important what communication tool YOU prefer—it’s what your clients prefer that matter,” she said.
“In social media, people want to discover an emotion tied to what you’re doing; they don’t want an online billboard,” she added.
ROUNDTABLES
One of the most valuable segments of the conference, roundtables featured the eight topics ISBN members requested, including DeVaughn’s Social Networking; Measure & Prosper; Regarding Real Estate; Managing Within the Law; The Path to Profitability; Tracking Marketing Costs and Results; Control Your Regulatory Environment; and Managing Your Managers.
POWER PANEL
Industry leaders discussed the state of the industry today and where it’s going tomorrow. Panelists included Pat Parenty, president of L’Oréal Professional Products Division; Luke Jacobellis, president of John Paul Mitchell Systems; Joshua Farmer, director of sales/national accounts for American Crew; Mark Kartarik, president, Regis Corporation Franchise Division; and Marco Pelusi, owner of Marco Pelusi Hair Studio & Marco Pelusi Product.
In discussing the state of the industry in today’s economy, here’s what each had to say:
Parenty: “Rebooking, retail and referrals are the keys to coming out of the recession strong. Getting the client to pre-book her next appointment before leaving is key. When she stretches the time between appointments, that opens up more time, so new client referrals are vital. Finally, this change in mindset toward retail has to be reversed by providing that extra value shoppers are looking for. The biggest weapon we have to compete against other beauty products venues is the stylist behind the chair. We must capitalize on her relationship with her clients.”
Jacobellis: “We are seeing cautious optimism and the emergence of a ‘different’ consumer. After the last couple of years, she is a smarter shopper and looking for value, value and value. The pre-2007 mindset might never return.”
Farmer: “To provide the value clients demand today, stylists need a higher degree of skill when it comes to interacting with the client and providing add-on value that results in a better service.”
Kartarik: “In the ’80s, our industry transitioned from being recession-proof to recession-resistant. We’re seeing support from the bottom, with our value-priced concepts doing better. The answer to improving our business lies in client visitation patterns—getting them to come back more frequently. I’m very optimistic our industry will turn the corner, and the people in the room will lead the way in helping the industry do just that.”
Pelusi: “People are tired of the old economy and not being able to spend, and as a result, we’re starting to hear from clients we haven’t seen in quite a while. We’ve seen slow but steady growth since the beginning of the year, and expect it to continue to grow through the holidays.”
And in response to the question, “What do salons need to do differently to be more profitable?”
Parenty: “Profitability depends on many factors—the conversations that happen at the backbar, at the stylist’s station in the retail area. We have to focus on each of those to increase the focus on retail, which grows salons’ profits.”
Jacobellis: “Find your point of difference. What does you brand mean to the consumer? Focus on what it is that you’re all about in your marketplace.”
Farmer: “The three areas we can impact for stylists are knowledge, skills and attitude. If we can raise their knowledge and skills, we can change their attitude and give them the confidence to provide the service that clients deserve.”
Kartarik: “We’ve spent two years listening to our clients talk about money. We need to work with our vendors to develop contests and programs to make the business fun again. When our stylists are having fun, the clients feel it and the money becomes less important. They focus on how they can feel better at the salon.”
Pelusi: “Your level of service has to be exemplary and you have to show that you truly care about your clients. Beyond that, putting your signature on your services guarantees that they can’t be duplicated anywhere else.”
LEGEND AWARD
ISBN presented the 2010 Legend Award to George Schaeffer, president and CEO of OPI.
“The beauty industry is a gift to all of us,” said Schaeffer, who also recently purchased Aloxxi Hair Color. “It’s so much more than a business—it’s about fun, it’s about helping salons grow their business and it’s about providing hope to our clients.”
“I’ve known George personally for seven years and he’s the ‘real deal,’” said Paula Malloy, ISBN’s past president/board member and product development/marketing manager for JCPenney Salons. “He loves this industry, and everything he has done is to create a better environment in which nail technicians can earn a better living.”
“George is the last of the client-first beauty legends,” added Chuck Barth, Ulta Beauty's divisional merchandise manager. “He’s both made people feel beautiful and helped them have a lot of fun right along with him.”
SPEED MEETINGS
Attendees learned about the newest products and programs for multi-unit salon and spa companies from industry partners during ISBN’s signature Speed Meetings. Speed meeting hosts included:
SOCIAL ACTIVITIES
Members had plenty of time to catch up with friends, share ideas and discuss solutions challenges during the President’s Welcome Reception, New Member Reception, Farewell Party, a trip to Catalina Island and the annual Golf Outing at the nearby Trump National Golf Club.
SAVE THE DATES
ISBN’s 2011 Conference takes place May 15-17 at The Ritz-Carlton, Amelia Island, FL. Watch for details at www.salonspanetwork.org and on the International SalonSpa Business Network’s Facebook page.
Concludes Logan, “Regardless of where you are in your career or in the lifespan of your business, everyone has something to share and something to learn. Working and sharing together, each of us can be more successful with the benefit of ideas learned at the ISBN Conference. Trust me when I tell you that you will never meet a more open, sharing group of highly successful industry entrepreneurs and executives….and a lot of very nice people!”
The International SalonSpa Business Network is comprised of more than 50 top companies, owning two to 12,000 salons and/or spas each, with combined gross sales of more than $10 billion annually. The membership represents more than 25,000 salons and employs more than 250,000 people licensed in the cosmetology field, who facilitate more than 500 million client transactions per year. Call 1-866-444-4272 or visit www.salonspanetwork.org for more information on joining and on attending and/or exhibiting at ISBN’s Conference.