2005 Summer

Bobbi Russel The dream that came true

pg.14

Fabulous Miss Laurie

Korvue talks to KEOP

Dermatex International, San Diego, Ca.

Tdd Holzer presents new hair ordering sofware

pg. 3

pg.13

Interview with John Ohanesian Cellular Hair Duplication

pg. 10

The National Hair Journal

VOLUME 9 N O. 34

THE PROFESSIONAL PUBLICATION OF HAIR REPLACEMENT & RESTORATION AND SKIN HEALTH

HAIR DUPLICATION IN 2008!

Beverly Hills, CA. 06/05 – Cellular based hair duplication could be available to the public by the spring of 2008, forecasts John Ohanesian, President, CEO, Bosley, a leading hair restoration company. Research being carried out at the Aderans Research Institute (ARI) under the direction of Ken Washenik, M.D., Ph.D., is at an advanced stage. “We are close to the first time in history when the number of hair on the scalp can be increased significantly,” says Washenik. “The

hair loss market is exploding” adds Ohanesian, “Bosley is the world’s largest hair restoration enterprise and, because of our association with Aderans and ARI, we are uniquely positioned to become the driver of this revolution in hair loss solutions!”

Bosley has just completed initial discussions with the FDA regarding this bio-technology approach to hair growth and the company is excited about the role hair duplication can play in helping men and women with

hair loss. Intercytex, a UK based healthcare company, with whom Bosley has a strategic relationship, is also using its expertise in cell therapy to develop products that harness the innate ability of human cells to regenerate and repair the body and ICXTRC, its hair regeneration product, is currently in Phase I trials. Cellular based hair duplication is clearly going to be in the headlines in the months ahead. See special Newsmaker Interview with

Your Stylist Could Save Your Life

or planned to have a medical check up.

Women talk k to and listen to their hair stylists so this is a perfect way to sensitize them to this important preventative health procedure. In another experiment, developed by the University of Texas SW Medical Center, Dallas barbers gave their customers blood pressure tests. If the pressure was high, they were referred to a local physician.

ITALIANS GET HAIRLOSS INSURANCE WITH MULTIPLE DEDUCTIBLES

In a test program developed by the university of Alabama at Birmingham, hairstylists were trained to talk to their clients about breast cancer and encourage them to get regular check ups. After 12 months, nearly 70% of their clients has already had

Cuba Helps Chernobyl Hairloss Victims

Virtual Reality in Hollywood Virtual Reality &Virtuesse Meet the Artistes of Local 706 Burbank, CA, 07/05 - By special invitation, American Hairlines presented their Virtual Reality/Virtuesse product line to the Makeup and Hair Stylists Union 706 at the Mud School of makeup art in Burbank, California during the last weekend of July. Demonstrations included live model makeovers and the first part of a special two-day hair replacement certification program.

The Virtual Reality/Virtuesse team included technical directors, Joseph Wittnik, Shannon Sorbara and Linda Arnold, VicePresident, Union 706. They were supported by Betty Graff of Graff Technology and Janet Miller of Hair Replacement by Janet. Lance Centofanti, VP of Sales & Marketing represented American Hairlines.

Cuba, 07/05 – Many Ukrainian children never knew the luxury of long hair. Many never had any hair at all. In 1986, the unconceivable happened and the world witnessed a devastating nuclear disaster that haunts many families to this day. It happened at the Chernobyl power plant and the radiation released by the meltdown caused widespread baldness and skin lesions. But one country is trying to help. Reuter’s reports that since 1990, communist Cuba has treated free of charge 18,000 Ukrainian children for hair loss and other illnesses. Most spend 15 minutes a day under an infrared light after a lotion made from human placenta is applied to their heads. Hair grows back in 60 percent of cases, said Dr. Giraldo Hernandez.

Forget the Penthouse Go for the Hair Suite Tokyo, Japan, 06/05 - The Rihga Royal Hotel in Tokyo has a new package for its male guests, "Otoko no saisei" or “Men's rebirth.” For 35,000 yen, guests get a special kind of room service; a hair check up and consultation with a trained therapist, followed by a scalp massage and custom hair maintenance treatment. Men in Japan traditionally insist on privacy for their hair loss consultations and this program offers a professional solution.

John Ohanesian on Page 10

Rome, Italy, 06/05 – From the people who gave you Ferraris, Sophia Loren and Georgio Armani, here comes hair loss insurance! That’s right; Italians between 15 and 70 can now take out special insurance against going bald. Benefits max out around $9,000 and annual premiums are fixed at about $390 per annum, irrespective of the policy holder’s age and hair loss situation. Who came up with a scheme like this? You guessed; a chain of hair restoration clinics in conjunction with a local insurance group. But wait, it gets better; the policy also includes not one, but two annual hairloss check-ups, plus a hair care kit. Italian stallions must be sleeping easier in the stables tonight!

Gillette in the Cross Hairs You’ve got to be scientifically accurate when it comes to hair says a federal judge who ruled that Gillette Co. cannot claim that its v i b r a t i n g M3Power “shaving system” sends out “micro-pulses” that raise hairs up and away from the skin so they can be removed more effectively. This decision

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SUMMER 2005

Hair Club has New CEO Boca Raton, FL - Steve Hudson, the mercurial president of Hair Club, has announced that he is passing the CEO baton to friend and business associate, Fraser Clarke and returning to his home base in Toronto, Canada. Steve helped steer Hair Club into a full-service hairmanagement company, offering hair maintenance regimens and medical hair restoration in addition to traditional hair replacement services. This initiative culminated in the sale of Hair Club in December 2004 to Regis Corporation, a $2 billion hair care company that already controlled a number of other successful franchises including SuperCuts and Vidal Sasoon.

Fraser Clarke officially became Hair Club’s new President and Chief Executive Officer in May of this year. He has a background in investm e n t banking and first became associatFraser Clarke (in front) with the ed with Hair Club management team Hair Club as a business consultant when Edgestone Capital Partners, a Canadian investment firm, purchased Hair Club from Sy and Amy Sperling in 2000.

Shortly afterwards, Fraser joined the company full-time as Vice President, Corporate, rising to chief financial officer, chief operating officer and now, CEO. follows a similar ruling last year by a European court that prohibited television commercials showing the M3 razor straightening and lengthening hairs in preparation for shaving. The razor’s packaging also had to be modified.

Gillette was recently purchased by Procter & Gamble which already has a massive presence in the woman's hair industry. It is believed that P&G is now eying the lucrative men's personal-care market and Gillette, the biggest investment in Procter & Gamble's history, is seen as evidence of this.

2 The National Hair Journal Summer 2005

Follow the Money! - Times are tough we’re told. The consumer does not have the disposable income he or she used to have. That’s why the hair replacement business is no longer showing the vitality it used to. That’s why it is difficult to charge the high prices necessary to remodel and expand your business. Not true!

In 2004, one out of every 125 Americans was a millionaire! And the number continues to grow. The top end of the market, what is labeled as the “luxury market” has never been more active. The country’s wealthy are looking for products that will make them feel special and reflect the sophistication and success in their personal lives. Top retailers like Neiman Marcus are the most successful in the country. They succeed because they know how to cater to a discerning clientele. But where is the Neiman Marcus of hair replacement? Ivari perhaps? Or Bosley? But everyone else is on the defensive. Busy locking in current clients with ‘service plans’ rather than creating value through new services attuned to today’s more demanding customers.

Hair Management - In previous editorials, readers have seen me use the term, "hair management." I use this phrase to mean all the serious hair care procedures and techniques we use to keep hair full, healthy and vital. Our focus of course, has been on retaining or replacing hair density, but in this commentary I want to suggest that we expand our vision to include additional anti-aging services like hair color and texture correction.

Virile Hair - I suggest that we emphasize that our work goes beyond regular cosmetic services that can be obtained in beauty salons and barber shops eve ry where. The public needs to know that we specialize in keeping hair looking healthy and VIRILE! This is vital if we are to remain attractive and relevant to an aging population. Already, sophisticated marketing companies like Redken are marketing products that disguise gray hair. To my mind, hair that miniaturizes and falls out, and hair that lose its pigmentation and goes white, are both equal candidates for our expert services. We should be offering color correction alongside hair replacement.

It’s a Multi-Solution World - It is important to note that hair management is a now a multi-disciplinary universe. There is no longer one single thinning hair remedy. We have entered an era of synergistic solutions and the public today expects you to understand all the choices and be able to create a custom program that fits their individual circumstances. In this edition of the National Hair Journal, we feature a transcript taken from the Hair Hour radio show in which John Ohanesian, CEO Bosley describes the progress being made in hair multiplication research and predicts that this technology will be available to the public in 2008! Thousands

of listeners tuned in to this discussion and they expect you to tell them how this fits into the hair loss solution you recommend. Are you fully briefed? Can you discuss this with authority?

New Strategic Partnerships - Hair loss professionals in the future will have to present progressive solutions that not only combine new technologies, but change or modulate their application or mix time. For instance, we have come to accept that Propecia should be taken by most men at the first sign of hair loss. The, having stabilized the shedding with a medical solution, they can research their longer term hair replacement and surgical options. But what about combining a hair system with cosmetic surgery to restore temporal peaks?

Have you thought about this (see P15 of the Spring 2005 Hair Journal). Or how about integrating low level laser light therapy into a routine service visit to promote optimum scalp health? And how are you going to handle hair multiplication when it is offered in non-surgical form; in a gel or topical solution for example? Yes, the market is changing very rapidly and new skills, new information and new strategic alliances are the key to future success.

Strategies for Success - Of all the established hair loss market categories, traditional, non-surgical hair replacement is the most vulnerable. If it is to remain relevant, indeed if it is to survive in the market of the future, it has to choose between two alternate strategies. The first, which I have described above, is based upon a multi-disciplinary approach and will lead to new kinds of business partnerships and strategic alliances. The second, involves repositioning hair systems altogether. We would migrate them from the negative world of "cover-ups" to the modern world of fashion accessories. Just as tattoos and body piercing have become personal statements, so hair can join the fashion world as a method of demonstrating individuality and hipness.

The unique benefit of a hair replacement system is its ability to deliver an instant appearance change. Hair replacement, and only hair replacement, can offer someone long hair for a party on Saturday night, a ponytail for riding their Harley-Davidson on Sunday afternoon and a conservative hairstyle for a job interview on Monday morning! No one else can come close to this fashion flexibility!

It seems to me if tattoo parlors can convince men and women that a bluecollar, painful, non-reversible procedure is a great way to express themselves (and spend money…) then surely we can do the same with something as expressive as hair!

Editor in Chief Christopher L. Webb

3 The National Hair Journal Summer 2005

WORKSPACES A look at where people work Fabulous Miss Laurie – Tustin, CA The sign outside says FML, but that's only half the story. The letters stand for fabulous Miss Laurie and this business is a shrine to Laurie Cepron who is the owner and manager of a very unusual hair replacement center. It was created for Laurie by Leonard Wayne, who was so impressed with her technical and styling skills that he decided to buy her a hair management center of her own. But he didn't stop there. He imbued FML with a unique personality. If the inspiration for the company was Laurie's skills, the personality of the company reflects Leonard’s background in the motion picture industry. Every room is named after a star. In fact most of the wall space in Leonard's office is taken up by pictures, mementos and souvenirs of his Hollywood days. It creates a relaxing and funfilled environment, topped only by one more unexpected feature; a small outdoor golf course where clients are invited to spend a few idle moments before their hair appointment. We were so surprised by this unique center that we decided to share it with hair Journal readers.

NHJ: Leonard, this is a one-of-a-kind hair center.

What’s with all the Hollywood souvenirs?

LW: Many years ago, I worked as a stunt man at Universal Studios where I gained a lot of respect for the industry and met a lot of eclectic people! As a young man, movies were the most important thing in my life. John Wayne was my hero, so I started collecting John Wayne posters. Then I began collecting other big stars too, many of them were my friends, and my collecting kept growing. That’s what you see here.

NHJ: Why do you display your private collection

here at work?

LW: Since we specialize in a men-only environment, I thought the posters of movie heroes would make the salon masculine and comfortable for our clients. It also lets us make each room unique; we have the John Wayne room, the Clint Eastwood room, the Frank Sinatra room and, of course, we have the Green Room.

NHJ: These are not just whimsical themes; these are rooms with very real memorabilia, aren’t they?

LW: Oh absolutely. All the posters are authentic.

I made a point of getting mementoes of movies that my friends, such as Frank Sinatra, Richard Batallion had not only been in, but had special memories to me. A lot of the Jack Nicholson posters for example, are of movies I did stunts in.

I’ve known Jack for many years. I get great pleasure out of memories like these with our clientele.

Obviously their eyes wander and they ask lots of questions. It’s a great feeling to share trivia or memories associated with a movie.

NHJ: Each of the styling rooms has its own hero, but your office caps them all!

LW: Right. Everywhere you look in my office, you’ll see photographs, awards, letters and posters.

My room has everything from Kenny Norton autographed boxing gloves - I used to spar with Kenny Norton – to memorabilia from movies I was in with old friends like Arnold Schwarzenegger. When people come in they find this is truly like a boys club.

NHJ: Looking across your desk, tell me wall by wall what objects have special importance to you.

LW: Well, the first thing I look at is my beautiful poster of Chinatown. Chinatown starred Richard Batallion, a good friend of mine. He’s 74 years old now, a member of the academy of motion pictures voted in by Frank Sinatra. When they were filming Chinatown in the 70’s, I had the pleasure of being there when he shot Fay Dunaway as she drove away.

And when I turn to my left, I see John Wayne in a movie called “A Man Betrayed.” In our crazy industry so many clients have been misled by baitand-switch selling that we thought it was apropos to indicate that we do not have any intentions of betraying anyone. At FML we do not believe in contracts. We don’t have any. We have a philosophy that you come here because of the service rendered, not because of a piece of paper. We stand behind our product. This is something we’re very proud of.

NHJ: Any other special memories?

LW: When I turn behind me, I see a picture that the Blue Angels gave me. I’m a pilot myself, and across the street from us we have a restaurant called “Newport 17” which is a favorite hang-out of the Blue Angels. Then, as I turn the other way, I see my friend Clint Walker. Clint Walker to me was an idol when he had his show in the early 60’s called “Cheyenne.”

NHJ: What about this statue?

LW: That’s a bronze Remington. We feel that having all this work creates a homely environment. I can’t express to you the compliments we receive.

People feel comfortable here, even on their first visit.

NHJ: You’ve named a lot of well-known and admired stars, but I suspect you’re going to tell me that they all pale in comparison to the Fabulous Miss Laurie. Tell me about Laurie. Why is she fabulous, and how did the salon came to be called after her?

LW: When I met Laurie back in 1995 I took her to Las Vegas and I asked her if she’d ever engaged in the game of Craps. She told me she hadn’t. So I took her to the floor and I proceeded to give her some dice. She rolled for almost 8 minutes… and won me $87,000. I said, “My God you’re simply fabulous!”

NHJ: And you never looked back…

LW: Never looked back! So, when she decided that she was bored of living on the yacht I had just purchased from the Vice President of McDonald Douglas, I asked her what she did for a living. She told me that she had started working with hair in 1985 and had studied with two masters named Bens and Garrett.

They were oldschool and they put her through an extensive apprenticeship.

Laurie was also very astute and she noticed that Max Factor and H o l ly w o o d celebrities wore special hair systems that were u n d e t e c t a bl e .

She knew she could create the same quality.

When she told me this, I said why don’t you start your own business? So I bought her a salon in the city of Tustin. It’s located on one of the busiest corners in the city; we have over 68,000 cars driving by our facility every day.

NHJ: How is the business doing?

LW: Great. Our motto here is: “If you didn’t know, you wouldn’t know; It’s simply fabulous!” It’s a shame that so many men we see on the street are wearing a noticeable hair system. It’s bad for the client and it’s bad for our business. We are trying to change all that. We do regular hair cuts here alongside our hair replacement work. Our clients can’t tell who has his own hair and who is wearing a system.

We also feel one of the most important things is to give back to the community. We have been giving a portion of moneys we receive to battered women; something Laurie’s very sincere and adamant about.

NHJ: What advice would you pass on to somebody who’s looking to create something distinctive for their own business?

LW: The most important thing is to take the stress out of something that is difficult for many men dealing with baldness. We’ve chosen to create a men only environment and that lets us focus on things that are important to men. There is no high pressure salesman here. We have been told by clients from every other hair replacement centers that they felt uncomfortable with a salesman coming in every time they were there for service trying to convince them they needed another hair system. And they complained that they never had the same stylist. They won’t have that problem here. If you don’t have someone like fabulous Miss Laurie, you are really making a crucial mistake. That is why I want to emphasize the value of an apprenticeship working under someone with advanced hair skills. Our business is based on talent, and a passion for helping others.

NHJ: And on that passionate note, I’m going let you go outside to your putting green to unwind after an unusual and fascinating interview.

LW: I would be more than happy to do that. It’s all part of the FML philosophy. I thought it would be enjoyable, considering the beautiful weather we have here in Southern California, if we actually had a 3-hole outdoor putting course where clients could practice. We also have a large screen television in a room that we call the Boys Club. If you want, you can plug in your laptop or simply relax out on the patio overlooking the beautiful mountains and enjoy a Cuban cigar.

NHJ

5 The National Hair Journal Summer 2005

BEEN THERE, DONE THAT! Meet Robert Ward, an Educator in the Making In the 17 years he’s been in business, Robert Ward feels he’s seen it all. If you can think of it, Robert’s probably done it.

He is now at a point in his career where wants to give back some of the lessons he learned along the way. You could never accuse Robert of keeping his opinions to himself, and in this interview, he tells The Journal what he believes the hair loss industry needs to keep moving forward… and who’s the person to provide it.

NHJ: So you want to be an educator…

RW: That’s correct. I have put together an educational program called “The Art of the Hair Replacement Consultation.” I believe there’s a real need to hone the skills of our consultants and salespeople in this industry. That’s what my program is all about.

NHJ: Most people hesitate to use the word “sales.” They argue that someone who comes to see you about their thinning hair is looking for understanding, not a sale.

RW: We’re in the business of helping people with a problem. The most difficult thing for them to do is pick up the phone then walk through that door. They know they’re going to be talking to a complete stranger about something that is intensely personal and important to them. It’s not like walking in and buying a suit at Hugo Boss.

NHJ: Agreed.

RW: So the most important thing is to make them feel comfortable about taking that first step. If you think you can just run an ad and have people call in to book con-

sultations and give you their credit card numbers, you’re out of your mind. 75% of the people who ask for information never call. It’s not enough to send out a brochure, and then make a follow-up call to invite them in for a free scalp evaluation or consultation. You have to learn to break the ice in a way that makes people want to come in.

NHJ: What makes the ice melt at Surfside Technologies?

RW: I have an innate ability to communicate and I’m very passionate about what I do. I live and breathe hair restoration. In my mind, I’m Superman! This is what I’m going to teach. After my classes, people are gonna wake up every morning, see themselves in the mirror and they’re gonna say they’re Superman!

NHJ: Could you give prospective supermen three tips they could start using tomorrow to make a difference in their business?

RW: One of the most crucial things is to create perceived value for the product.

We’re not selling hair; we’re selling what hair can do for our customers. We’re selling the dream, not the product. I’m not training you to run your mouth and show people how wonderful a salesman you are.

They’re not there to hear you; you’re there to hear them. Point two then is listen.

NHJ: And the last point?

RW: Thirdly, it’s all about what that customer wants their hair to do for them.

Listen, to them, and then make your hair loss solution part of their world.

NHJ: Do you have be thinning yourself to understand hairloss? For example, do you

have to be a woman to talk convincingly to another woman?

RW: That’s a great question! Absolutely not! This is a misconception that’s been tossed around for years. Do you have to be compassionate; do you have to be genuine; of course you do. That’s the key. It’s all about sincerity. People open up to you if they feel you really care.

NHJ: How does sales consulting fit in with your own retail business?

RW: Of course, I plan to grow my retail center in Southern California. There is huge potential in California. I see this area becoming more and more important in the hair industry. After all, this is where images and role models are created. But I also want to develop “The Art of the Hair Replacement Consultation” into one of the premier educational seminars in our business. We’re already building a website to deliver continuing education after the initial seminars.

NHJ: Who are the people who most need this support?

RW: Small and medium-size owners and business managers. It’s an exciting time in our industry, but there’s also a lot of fear out there. A lot of retailers see big entities like Regis and Proctor & Gamble and they get nervous. I want to make sure today’s salon owners are part of the industry’s future. I actually think it’s a tremendous time for hair replacement, but people need to take advantage of the tools that are available. They already have the Hair Journal for information and the National Hair Society for technical support and networking. “The Art of the Hair Replacement

Robert Ward Consultation” is a new marketing tool geared specifically to the sales aspect of our business.

NHJ: Why is there a need for a standalone “consultation” tool?

RW: Because sales consultations are the backbone of this industry. We have retailers spending thousands of dollars to go to Onsite or New Image seminars, but if they can’t sell the guy, they don’t have to worry about bonding him! I think there has been a lack of focus on sales - the most important thing we do. If you’re not getting these guys in the door, you cannot use the art and talent you have on the technical side.

NHJ: ‘A couple of more general questions … Do you believe that hairloss is as important to men today as it used to be?

RW: Yes. NHJ: Do you think that bald heads and extreme-cropped hair was a passing fad and that hair “styling” is on the way back?

RW: I never thought it was a fad. There’s nothing wrong with losing hair, nothing wrong with getting it back. But yes, I do see longer hair, though the styles are still very casual. (continued on pg.6)

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6 The National Hair Journal Summer 2005

Jim Toscano

SUMMERTIME AND THE BONDING IS EASY…

By The General

It's summer! Time for swimming, picnics, fireworks… heat and humidity!

We all love the warm, sunny weather, but it can become a problem with a bonded hair system.

As I've said many times, the most undetectable bond is achieved with soft bond.

On most clients, you can achieve a terrific bond. But what happens during the summer months when your client enjoys water sports? Or your client works outdoors in the heat and humidity and perspires a great deal? Big problems, right?

They don't have to be. By knowing your client, his/her lifestyle, and various bonding methods, you can achieve a bond that will make your client happy.

Let me give you some alternatives to the client who normally wears a soft bond.

This client is an avid boater and water skier. Unfortunately, if the client is in a lace system with a soft bond, you're in for big problems with these activities.

If you can't get your client out of a lace system, an alternative is to create a bond with lace support tape and soft bond.

Apply lace support tape around the perimeter of the hair system. Apply one coat of soft bond on the lace tape and 4 coats of soft bond on the entire scalp.

Once the adhesive has turned clear, both on the lace tape and on the scalp, place the unit as you usually do and let it cure for 36-48 hours.

Another alternative is using the "holed" tape. On a lace system, this tape can be put directly on the base. On a skin system, you must put 3M or Redline tape down first, then the holed tape on top of the other tape. These types of bonds will hold great, but they aren't as undetectable.

My best suggestion is the new "thin" skin systems that many manufacturers are featuring. These systems are completely BEEN THERE, DONE THAT (cont. from pg.4) NHJ: Do you think that hair loss solutions need a different kind of imagery?

RW: Absolutely, 100%. We need more sophisticated imagery to make our work more compelling and attractive.

NHJ: Who should create this imagery, the retailers or the distributors? Or is there a better way?

RW: It is very important for the wholesalers, educators and retailers to share in this. We’re all in it together.

NHJ: Why is the industry today so fragmented?

RW: We have many more options to offer the public than we did 5 years ago. Most of the retailers are family-owned businesses. We’re still evolving as an industry.

NHJ: Based on consultations with your clients, is there still a negative stigma attached to the hairloss industry?

RW: Without question. You see Geiko, Budweiser, everybody out there making fun of hair restoration. It’s crippling our industry. We can turn that around; we need to…and we will.

NHJ: What is the single biggest challenge facing the industry today?

RW: Excellent question. The biggest challenge in our industry today is making people feel it’s OK to get their hair back.

Let me ask you a question, if you broke your two front teeth, you’d get them back

undetectable, can be bonded with soft bond, and your client can enjoy water sports the same day of the bond. Make note, though, that your client should be advised to refrain from strenuous activities that cause excessive perspiring for 3648 hours so that the bond will cure properly.

Another great feature of the thin skins is that the heat from the scalp will dissipate right through the system. Your client will not perspire as much or be as hot as with a regular skin system. Remember - once you seal the scalp totally with soft bond, your scalp isn't "breathing", anyway. Give these systems a tr y.

On another note, a short while ago, I had requested adhesives from all the manufacturers so I could test all aspects of their products. So far I've heard from On-Rite, New Image, Professional Hair Labs, and Hair and Compounds. I'll be contacting the rest of the manufacturers so that, hopefully in the very near future, I'll have all the products to test. I'll be contacting those of you who offered to be test sites very soon. If you would like to be a test site and haven't contacted me yet, there is still time.

Please email me at jamestoscano@msn.com.

Have a wonderful, safe summer. And as always.....Patience, Persistence, and Precision.

Until next time........

James Toscano (“The General”), a Pennsylvania native, is an eighth-generation hair stylist and one of the nation’s top authorities in non-surgical hair replacement systems.

Jim is on the faculty of The National Hair Society and consults for major manufacturers and distributors of hair care products. In spite of a 60-hour workweek, Jim still finds the time to write a series of educational articles for The National Hair Journal, aided by his wife, Linda, an obsessive spell-checker who keeps the Journal on its toes.

right? So why are people embarrassed about getting their hair back?

NHJ: If you had only 3 years left in the hair replacement industry, what is the one thing you would want to achieve?

RW: I’d want to pass on the experience I have gained. I would very feverishly work at that.

NHJ: A lot of people would want to cash out and take as much money out of the business as possible, but you want to help other people. Is that because you’re a nice guy?

RW: Not at all. We’re all in business to do well and make a living. But you have to decide what has real value to you. Some of my clients… when you give them their hair back… they may not be able to say it, but you know you’ve just changed their lives. That feeling is worth a million dollars.

Robert Ward is founder and president of Surfside Technologies, Orange County, CA. As a young man he wanted to have a puppy dog farm in horse country up in Northern Baltimore County. But in his senior year at high school, he answered an ad for a telemarketing position and in 1987 was hired by Invisions of Baltimore. From there, he moved up to marketing manager and a few years after that, he was managing multiple locations. He later moved to Southern California and created Surfside Technologies, a business he describes as “built on genuine, unadulterated, NHJ passion.”

7 The National Hair Journal Summer 2005

ADVERTISING

BY NUMBERS

Steven DiManni

By Steven DiManni When most people think of advertising, their minds invariably drift to many of the images created by the movies and television: "creative types" sitting around ultramodern offices brainstorming. "How about a dancing chicken?" "Wait, how about a dancing chicken in a hat?" "No, no, what we need is a donkey ridden by a singing matador!" And so on.

Most business people in the hair industry realize that such goings on exist only in the minds of Hollywood scriptwriters.

But precious few people outside the advertising industry realize just how much the business is based on numbers, testing, and performance data, rather than out and out creativity.

I’m not just talking about the McDonalds and General Motors of the world. Even regional auto parts stores and local retail chains follow a very strict policy of advertising implementation and evaluation that is wholly based on numbers.

What does this mean for the owner of a hair replacement studio? Simply this: if you follow some of the same practices as these other advertisers do, you'll make more money from your advertising investment. Lots more.

Advertising is a numbers game Whether you sell detergent or you sell hair, there is one common denominator for every business that spends even one dollar in media: Advertising is a numbers game. Once you accept this, the performance of your advertising will improve dramatically.

We're lucky in the hair industry because we utilize direct response advertising, which is far easier to evaluate than “image” commercials.

With direct response, your commercial runs, you determine how many people respond to it, and that number determines whether the ad/commercial was a success or failure.

All advertising works. Sort of You could run a television commercial consisting solely of a photo of a bald man, and next to it a photo of that same man with a hair graft, run a telephone number underneath, not say a single word during the commercial, and you would still get phone calls. Not many…but even this most basic form of paid communication would get the idea across and generate a lead or two.

The point is that all advertising, to some extent, works. The only question is, how well does it work?

Obviously, if you paid $500 for commercial airtime and only received one lead, the commercial is a bad commercial. If you paid $500 for commercial airtime and received 10 leads from it, it's a good commercial.

Remember, the only quality you want from a lead is someone who will buy from you. So does that mean that every person who does not buy from you is a "bad" lead? No. You're trying to sell non-surgical hair restoration. Any person who has a hair loss problem is a candidate for non-surgical hair restoration. Therefore, any person who is losing his/her hair and calls your phone number is potentially a good lead.

We all know the importance of telemarketing to get the lead in for a consultation.

And we all realize how important direct selling ability is once he/she comes in for a consultation. These are givens. But let's put them aside for this discussion.

There are three types of people who will respond to your ad or commercial.

The first group is made up of the people who will ask for a brochure, but will never, ever agree to a non-surgical hair restoration procedure. I don't care how terrific your telemarketer is. I don't care how great a salesperson you have. They are not going to buy. Period.

The second group consists of those people who might consider non-surgical hair restoration if it's presented in the right way, at the right time. (This is the group where good telemarketing and direct sales technique have the greatest effects.)

Finally, there are those people who will more readily consider non-surgical hair restoration as a solution to their hair loss.

The hair business is a numbers game There's no way, either through a particular TV commercial, or a particular media strategy, to sift out the people who will never buy hair, from the people who are likely to buy. It’s impossible to tell one from the other when that person calls to ask for a brochure.

But every studio owner knows the following. Sometimes you'll sell a couple of consultations in a row, BAM, BAM! And then other times, you'll go through five or six without a sale. This is the law of averages in our business.

There's not a single person in this business who won't tell you that there are fewer buyers today than there were fifteen years ago. But everyone also knows that many men still exist who see the advantages of non-surgical procedures. They are out there. You might have sold a few of them recently. The question is, how do you get more of them into your studio?

Again, it's all about numbers. Because advertising is a numbers game.

The answer is that you need a steady stream of advertising leads, enough so that you can sift through the non-prospects, and find the 1 in 10 guy who will come in and buy. But, how do you get those leads in a way that makes them pay out profitably?

All leads are good leads

Numbers talk

Many people in the hair industry like to talk about the "quality" of a lead. Any lead that is NOT a joke is a quality lead.

Yes, any lead from a person with a hair loss problem that contains a valid phone or email address is a good lead, with one qualification: the person responding must have the income to pay for your services.

You need lots of leads, delivered at a reasonable cost, to sift through those who won't ever buy, and find the ones who might buy and the ones who will buy. If you can get enough leads, at an acceptable cost, you'll make money from your advertising To do that, you need to run advertising that will (continued on pg. 8)

8 The National Hair Journal Summmer 2005

ADVERTISING BY NUMBERS (cont. from pg.7) be enough men or women who will buy from you in order that you might make a profit after subtracting the costs of advertising.

At On Rite, the marketing team tracks the results of every marketing program very carefully. As I write this, they are in the middle of evaluating a new Methode Trapeze marketing program for women.

Preliminary results indicate a cost per lead of under $30. Yes, you read that correctly, under $30 per lead.

Lew Hutchinson of Invisions reports that he booked 18 consultations from his Methode Trapeze leads in one day. Of those 18 consultations, five resulted in sales. A sixth sale was made to a woman who bought hair extensions.

As for their new men's program, Folligraft 3.1, some studios will begin running it in a few weeks.

Unfortunately, no one was able to run Folligraft 3.1 in the first quarter of this year because this program features an infomercial and infomercial time was literally impossible to buy for the first three months of 2005, due to a number of factors.

Now that infomercial time is becoming available again, they are expecting the new infomercial to produce excellent results. But no one will know for sure until it actually runs.

Opinions say nothing Everything we have spoken about up to this point has been based on fact: the cost of commercial time, the number of leads a commercial produces, the number of leads you need to make a sale, etc. What we haven't mentioned is how studio owners personally feel about a commercial: do they like the commercial, do they think their present clients will like it etc.?

The reason this has not factored into the advertising equation is that personal opinions don't matter.

Think of the stock market. You could like a certain stock for a number of reasons. You may think it is the greatest stock of the century. But if the stock's price goes down after you buy it, if you lose money on the stock, it doesn't really matter what your initial opinion of it was.

It's the same way with TV commercials. Performance counts, not opinions. Because the numbers that a commercial generates will determine how much money you make. And money, not opinions is

what you deposit in the bank.

A plan of action Your success in attracting new business begins first and foremost with the advertising that you run to attract new leads. You need a lot of leads for the lowest possible cost to make money.

Therefore, you should only run advertising that can attract a lot of leads for a relatively small amount of money. How do you find that type of advertising?

One way is to find out what the results of that advertising have been for other studio owners. Ask whoever has produced the commercial to speak to someone who has already run it. That will give you an idea of whether or not the commercial brings in leads at an acceptable cost.

If the commercial is brand new and no one has run it, if there are no figures available, there's something else you can do: look at the commercial and ask yourself, is this commercial different from most other hair replacement commercials I’ve seen?

I’m not talking about whether or not you like the commercial. Quite the opposite. I’m saying that you can objectively say either, “this commercial is different” or “this commercial is like every other hair commercial I’ve ever seen.”

Commercials that present the product in a new and interesting way, and commercials that have something different to say are more likely to generate a high response. Put it like this. If someone hasn’t responded to the typical industry commercial that everyone has been running for the past 15 years, they won’t respond to just another version of the same commercial they’ve been ignoring for 15 years.

But again, whatever you do, DO NOT try to determine if a commercial will be successful based on your opinion, or the opinions of others. Personal subjective opinions do not matter in advertising.

Performance does. Performance that is measured in numbers.

Because those numbers translate into dollars. And dollars are what you deposit in a bank. Not opinions.

A 24-year veteran of Madison Avenue and a 23-year veteran of the hair restoration industry, Steven DiManni has won almost every major advertising industry creative award in existence, including Clios, Andys, and Effies. He is a Senior Vice President and Creative Director at a $100 million New York advertising agency and a long-time consultant to the On Rite

Company.

10 The National Hair Journal Summer 2005

The National Hair Journal PROMOTING

medical supplement

C O O P E R AT I O N B E T W E E N T H E A R T I S T R Y O F H A I R R E P L A C E M E N T A N D T H E S C I E N C E O F H A I R R E S T O R AT I O N

2008 A Hair Odyssey

Technology That Will Change the Hair Loss Landscape Hair multiplication technologies now in the final stages of testing are going to change the way the public manages and restores its hair. They will impact nonmedical hair replacement, hair regrowth drug regimens and surgical hair restoration. It is important for all hair loss professionals to anticipate this development and integrate it into their own forward planning. This article is based on an interview with John Ohanesian, President, CEO Bosley, the nation’s largest cosmetic surgery group and the Aderans Research Institute. In it he predicts that cellular hair duplication will be available to the public in 2008. The discussion was originally broadcast on the National Hair Hour on WABC New York. Because of its significance, we have decided to transcribe and print it for Journal readers.

NHJ: We’re here to discuss a breakthrough technology that is going to change the future of hair restoration, but before we do that, we should also acknowledge Bosley’s past. I believe Bosley has just celebrated its 30th Anniversary.

JO: That’s right. Dr. Bosley started Bosley on August 1st of 1974. Last July, we celebrated 30 our years in business with a wonderful gala event with over 400 attendees including friends from our parent company in Japan, Aderans.

NHJ: Bosley has been a pioneer in hair restoration over the years and now it seems you’re pioneering again…

JO: Yes we are.

NHJ: It’s in an area that has captured the public’s attention, something the media often refers to as “hair cloning.” But that’s not the right language is it? Can you start off by giving our readers the right terminology?

JO: The best term to describe our biotech venture is, “Autologous cell based hair duplication.” “Autologous” means it is your own tissue or cells that are extracted, replicated, and then re-inserted. We give people more of their own hair cells back after cultivating them in the laboratory.

That’s why you will also hear people describe this process as “hair multiplication.”

NHJ: You make it sound simple, but the “multiplication” process must be extremely complex.

JO: Here’s how it works. You take a biopsy of hair-bearing tissue from the scalp.

This sample is then taken into a laboratory setting and, in this controlled environment, the cells are duplicated a hundredfold, or a thousand-fold. So you have now tens of thousands of cells suspended in liquid or gel form. This can be drawn up into a syringe and inserted or injected back into the scalp where they form new follicles and begin to grow hair.

NHJ: A few years ago, this would have sounded like science fiction, but medical science is racing ahead so fast today that the public now takes this in its stride.

Where is the research being done?

JO: We have two facilities, one in Philadelphia, PA and another in Atlanta, GA. There are currently 18 scientists working feverishly on this project. We met with the FDA in Washington DC in May of this year for our pre IND conference.

That went very well and we’re looking for-

ward to submitting out IND application to the FDA in March of 2006 for their approval. We expect to start our Phase I clinical trials in May of ’06.

NHJ: How long has this research been going on?

JO: We started the research enterprise one year to the day after Aderans acquired Bosley. Aderans acquired Bosley August 1 of 2001; we started planning the research enterprise the next morning. One of our key goals was to pursue a biotech enterprise for the purpose of hair duplication.

NHJ: Everyone has been speculating about the day hair multiplication will become a reality. You are closer to this research than anyone; what are your technicians telling you?

JO: We anticipate having our first commercial product available in April of ’08.

So three years from now, this technology should be available to Bosley locations for use among men and hopefully, women.

NHJ: Let’s fast-forward to June of 2008; I’m coming into Bosley’s head office in Beverly Hills. I have thinning hair and I’m here for a consultation. What’s going to be different?

JO: Well, first off you’ll be educated completely about this new hair technology.

This will be in addition to explaining the traditional follicular unit procedure that we have today. This is because we believe that in 2008 we will be using traditional surgical techniques and hair multiplication side by side. I’ll explain the reasons for this in a minute.

NHJ: Assuming I am a candidate for hair restoration, what happens next?

JO: You’ll have a section of your scalp harvested; for example, 4,000 grafts. Of these, a certain number will be implanted into your scalp the way we’re doing it today, but a portion of the hair bearing tissue will be sent to our laboratory in Atlanta and cells will be taken from that tissue. Technicians will then replicate those cells in the laboratory over the course of the next ten, fifteen or twenty days. Once everything is ready, it will be sent back to the facility, in this case the Beverly Hills office of Bosley, and you will come back to see your doctor again for the actual procedure when they will inject the liquid containing the cells into your scalp one injection at a time. Over the next three to five months, that solution will turn into follicles and will grow hair.

NHJ: Would the new “multiplied” hair be “permanent” hair like the hair that is transplanted today? I’m assuming it would since it is taken from donor tissue in the area that is genetically encoded not to fall out.

JO: Without question. The exact same donor area that we use today for the transplant will be used for the duplication process in our laborator y.

NHJ: Is this a patented procedure available only to Bosley patients?

JO: It will be patented. And as we go through the process of refining the technology we will have further patents. Our plan for availability is as follows: Initially, this will be available just in Bosley locations in the US and throughout the world.

In time, as we refine the technology, we will license it to other physicians and providers that are not part of Bosley.

NHJ: Are other laboratories around the world also researching hair multiplication?

JO: There are individual doctors who are working on some sort of hair duplication or hair replication process. There’s also a company with serious research resources in the UK that is exploring this field. It is called Intercytex and we have a professional relationship with them.

NHJ: We talked earlier about the need, at least initially, to combine traditional hair transplant surgery with hair multiplication technology. Why do patients need both procedures?

JO: We believe that we will want to use the first-generation hair multiplication product in the area behind the hairline and on the top and John Ohanesian, President, CEO Bosley Medical back of the scalp. This will give our patients greater density where it is needed most. able to help men, women, and children The fine area in the front will probably be who have been the victims of accidents. best served by the traditional technique of For instance, burn victims may have suffollicular unit transplantation which fered damage and scarring of the scalp and allows us to carefully place individual cannot re-grow their hair today. We also hairs or groups of hairs to create a delicate hope to help men and women who have hairline. Over time, as we refine the mul- had radiation therapy treatments or pertiplication process, we may choose to haps a cancer problem of the scalp. It would be very rewarding to be able to make use of it for the hairline also. assist people like this.

NHJ: Doctors sometimes talk about NHJ: Could you recreate thick hair on the “angulation,” the angle at which the hair top of the head for someone who doesn’t emerges from the scalp. How can you have a lot of donor hair to start with? plan for angulation and what cosmetoloJO: Yes, provided we can extract a suffigists call the “flow” of the hair when cient amount of donor hair for cell replicayou’re implanting new hair cells that are tion. invisible to the naked eye?

JO: We believe that the cells we take from NHJ: You may remember some 5 years the donor dominant area of the scalp will ago that somebody created a “hair vault up be no different than the hair that has grown in San Francisco…. from those cells naturally. So when we JO: Yes, I do. take those cells, replicate them in the lab- NHJ: Could the “hair vault” be coming oratory and bring them back to the clinic back? Imagine people taking good, to have them inserted, they will follow the healthy donor hair while they still have it, same patterns of growth and coloration as placing it in the vault and years later coming to Bosley and saying, “Here are my the patient already has in his donor area. hair cells, replicate them!”

NHJ: In your laboratory tests, what perJO: That sounds great in theory, but I’m centage of the cells you incubate successnot sure it would work in practice because fully grow new hair? you need to extract the hair-bearing tissue JO: We haven’t yet come up with a numwith the follicle and begin to process the ber or a factor. But I can tell you that in cells within a very short period of time. our tests we’ve had a great success, a So to put them into a vault and store much greater success than we anticipated. them…

I’m not sure that’s going to work.

NHJ: How predictable are the results?

But I’m sure that there will be somebody For instance, could cellular implants be out there trying to commercialize that conmore responsive in some areas of the head cept, and if they’re successful, we’ll be and less responsive in others? happy to try and work with them.

JO: This is one of the reasons why we’re going to use this product as an adjunct to NHJ: People listening to us tonight (listhe traditional technique at first. I antici- tening to the Hair Hour on WABC) must pate that 50% to 80% of the implanted be getting very excited and saying, cells will be successful initially, not neces- “Terrific, this is everything I’ve been waitsarily 100%. In science and medicine…if ing for.” What’s your message to them? you are successful 40% or 50% of the time Should they wait for 2008 and get hair with a given treatment, that’s often consid- multiplication? ered a homerun. With hair restoration, JO: It depends on your goals. If you want using cell based techniques, if we have to have your appearance and your hair 60% to 80% of those cells grow and turn restored today because it’s a priority in into follicles, that will be a phenomenal life, then I say don’t wait, move forward. success in terms of the cosmetic appear- The techniques available today are already outstanding. When new cell-based techance.

NHJ: Who are the people this will bene- niques like multiplication come onto the market, they will further enhance your fit primarily? procedure, not make it redundant. You’ll JO: Men and women of all ages, whether just keep looking better and better. So perthey have significant hairloss or a nominal sonally, I wouldn’t wait, I’d step forward amount of hairloss. In time, it may also be

13 The National Hair Journal Summer 2005

KORVUE NOW TALKS TO KEOP Salon management meets order processing Over the years, KORVUE has established itself as an important software utility for the hair replacement industry. Effective Spring 2005, KORVUE’s hair processing screen takes advantage of the latest features of KEOP, an international electronic hair ordering system. KEOP and KORVUE now “talk to each other,” allowing hair orders to be placed and tracked effortlessly.

The enhancements to KORVUE allow users to order stock systems, customer reorders, repairs, and even remakes. Users were previously limited to ordering only custom hair systems, leaving the others to be done the old fashioned way. This update also includes several enhancements between KORVUE’s program management and hair processing screens. The program manager now compares client’s who wear stock systems to the hair system inventory and automatically makes order adjustments to ensure there is enough inventory at all times. KORVUE can even calculate trends in stock hair system usage and plan ahead for busy months.

For advanced users, or anyone who is plain busy, KORVUE offers an automatic order processing system. Since KORVUE is a completely integrated system, it not only tracks inventory and orders, it also knows when a client is scheduled for a cutin. So KORVUE’s KSG processing system can automatically create hair system orders and send them to the supplier.

Users can elect to have KORVUE automatically order all hair systems, or just certain types.

When KORVUE places these orders, it does so via KEOP. Users get the best of both worlds: simple ordering, plus remote access to the orders and status updates. Since KEOP is a secure Webbased system, users can login from anywhere to check orders or send messages to suppliers.

KEOP hot keys embedded in KORVUE are important timesavers. Certain screens such as the contract screen, client screen, and hair processing screen have a KEOP button. Its behavior varies, depending on the context. From the client screen for example, if the user selects a hair system that needs to be ordered and clicks the KEOP hot button, KORVUE will immediately begin communicating with KEOP to place the order. If the same KEOP button is clicked after selecting an order that is currently in production, KORVUE will request and display the current production status. This completely eliminates the need to call a supplier for information. In fact, you could actually give your client an ETA without even placing them on hold.

To find out more about the way these software applications work The Journal talked to Todd Holzer of Verasoft. Todd has several years of experience as a studio owner and as a software consultant and we thought he would be able to explain the role of new technologies in terms that would make sense to a typical salon manager.

NHJ: Todd, what exactly is KEOP? TCH: KEOP is an electronic ordering

system that is powerful and easy to use. We have national and international patents pending on the electronic ordering of hair. It was created to serve several purposes.

For example, it generates unique Global IDs that we call GIDs which are vital in the translation of the order details into virtually any language. It also goes one step further and supports dialects and slang.

Importantly, KEOP can interface with Web sites and software applications, such as KORVUE, to make ordering of products and hair quick and easy.

in America. For them to translate an order would be senseless, because they don’t

cally adjusts the translation for that specific region. Production lines can even implement slang controls to override translation for greater clarity whenever necessary.

NHJ: You say KEOP supports virtually every language, but aren’t we mostly talking about English to Chinese?

TCH: Absolutely not. Hair is being ordered and produced all over the world.

Let’s say there is an American wholesaler with clients in France. The French clients can login to a French version of KEOP to place their orders and about two seconds later they are received by their American wholesaler. The wholesaler’s team that handles French clients is immediately notified of the new orders and sees them translated into English. They then assign the orders to a factory in Hong Kong, which instantly receives them and views them in Chinese. That factory then assigns production to a hub in Indonesia, where they can review the order details in their local language and dialect.

NHJ: Let’s talk about the ordering process here in the US. How does the average salon manager place an order?

For example does he or she go to a specif-

NHJ: Automatic language translation; why is this important?

TCH: It saves time processing the order at the factory. And, the strong translation controls mean more accuracy. No more misinterpretations, no more guesswork, and no more processing delays.

NHJ: The benefits of accurate translation are obvious, but why is dialect and slang management important?

TCH: The best way to illustrate this is with an example. Let’s take a wholesaler

always know in advance where the final production line will be. So the factory itself usually has a processing center that will translate orders before they are sent to a remote plant or hub for the actual creation of the hair system. Their production lines are often in different regions or even countries, so there can be considerable differences in interpretation of the translation. However, with our system, when the processing center assigns an order to a specific factory or hub, KEOP automati-

ic Web site to place a KEOP electronic order?

TCH: Yes; it’s www.KEOP.com. But the system can also be tied into other Web sites or software systems. For example, the Transitions International Group has had a special KEOP interface created just for their members.

NHJ: I don’t want to get geeky and confuse our readers, but what about people who are already using the KORVUE salonmanagement software? (cont.on pg.15)

Todd Holzer of Verasoft

14 The National Hair Journal Summer2005

A Dream Comes True For Bobbi Russell Goodbye Unisex - At a time when unisex salons when have become the norm, one person has decided that her female clients deserve something more personal. Bobbi Russell knows the hair replacement market inside out… and she certainly knows her clients. She has been a licensed cosmetologist since 1985, and has b e e n doing hair Bobbi Russell replacement and extension services since 1987. She was the manager of a styling salon by the age of 19 and has an extensive background in hair color, extensions, and hair replacement techniques.

Hair Therapy Staff, Bobbi, Eileen, Krista, Maria, Dawn & Erica

So when Bobbi concludes that women are looking for more personal, feminine attention, she is not speculating; she knows what she is

for women. This would be a climax to over 15 years as a platform artist and national educator, and a stint as feature hair extension artist for Modern Salon Magazine. She has been certified as a “Master” by the American Hair Loss Council and serves on the advisory board of the National Hair Society. To say that Bobbi has a passion for this industry is an understatement. All of these skills found their logical… and inevitable… expression in a new kind of hair studio, “Hair Therapy for Women” in Tampa.

The Dream Came True April 2 nd - The Grand Opening Celebration of “Hair Therapy for Women” took place in April when Bobbi proudly launched her specialty hair additions center with the promise of, ”Empowering women to become elegant again through restoration.”

A Special Place - The atmosphere at “Hair Therapy for Women” is private and feminine in keeping with the dream of creating a place where women could feel secure and relaxed. The

Client Dr. Dana Cuculici with Bobbi

talking about.

Hair Therapy for Women - Bobbi Russell is very motivated, so it was only natural that she would want to create her own hair center especially

Clients Tiffany and Jennifer

Victorian-style décor has many personal touches that give her clients a warm, homey feeling. Bobbi says it would never have been possible to create such a personal service in a regular hair salon setting. We wish Bobbi Russell and “Hair Therapy for Women” every success.

Bobbi and Studio Administrator Eileen Bevan

15 The National Hair Journal Summer 2005

REACH YOUR MARKET ONLINE

By Trevor Hendrickson

The Internet is an essential tool for hairloss professionals to communicate with the public. Large salons and clinics can afford to hire design teams to create sophisticated web sites, but what about smaller businesses that don’t have those deep pockets, or simply do not have connections with Internet specialists and don’t know where to turn for advice? To help people like this, the National Hair Society has contracted with T8Design to provide web design services and support to its members. We invited Trevor Hendrickson, T8’s CEO to comment on online marketing and the hairloss professional.

The Internet – Today’s Primary Information Resource You sell your services and products to your local community or to diverse geographical markets. You want to educate the public about the misconceptions and benefits of what you offer. But brochures and print ads reach only a limited audience.

Increasing numbers of people now use the Internet as their primary resource when looking for services, products, and information. With a professionally developed website, you can reach local and global audiences — at any time. A quality website not only keeps you in the race, but also helps you stay at the front of the pack.

Benefits of Internet marketing The health and beauty industry is one of the fastest-growing industries on the Internet. Consumers go online to find local hair salons, look for places to buy hair extensions, or get information about solutions for hair loss.

With a company website, you can list your services and pricing, describe your products, provide a map and contact information, publish informative articles, and brand your company image. In addition, you can update and add to the content in just a few minutes, and at no extra cost to yourself.

While search engines will find your site and bring potential clients to it, you can reach an even larger audience with an integrated marketing plan. Your business cards, brochures, e-mail newsletters, and other company publications can all portray the same company image and include the URL of your website. A website enables you to combine consistent online and offline branding with up-todate information.

Design impact for the fashion industry Consumers of fashion and beauty services notice appearances. Design impact

KORVUE KEOP

(cont. from pg. 13)

Many Transitions members are also KORVUE users.

TCH: The Transition Group members are tracked by a personal GID. So no matter whether they use the special KEOP website or KORVUE to place the orders, it is all the same for them. For example, a member could generate reorders for several clients in KORVUE, then go home and log in to KEOP to review those orders.

KORVUE actually communicates with

influences relationship commitment to brand. If you provide design quality and impact along with information, you’ve increased the likelihood of converting site visitors to loyal clients. For highimpact web design, Macromedia Flash has become the industry standard.

According to a March 2005 survey, 90 percent of Internet-enabled PCs have Flash Player 7 installed. High-speed Internet connections are becoming the norm and increase the speed of Flash.

Flash is the Way to Go! As we note on our website (www.t8design.com), we believe “Flash provides the greatest constancy over brand compared any other Internet tool available today.” Flash also delivers content in a way that makes people take notice. “Vanilla” web pages were fine when the Web was relatively new, but with millions of sites now clamoring for attention, you need your website to stand out. Flash creates impact.

Support for Hair Society Members We are proud to have been asked to provide support for Hair Society members.

We specialize in Flash websites for business clients who want custom, branded websites. We offer Hair Society members special website development, web hosting and marketing services. When you sign up for a website and hosting package with T8DESIGN, you participate in the site development process. We take time to learn about your business so we can tailor your website content to specific clients. We get to know your company image and audience to create an authentic brand that will appeal to your target audience.

Your completed website will be a marketing tool that you can control. Detailed traffic monitoring statistics will help you analyze where your site visitors come from, how they got there, and other information you can use to fine-tune your content and marketing strategies.

With our FREEDOM8 content management system, you can update your website content without any web design skills. When you sign up for a maintenance package, T8DESIGN continues to help keep your website fresh and engaging.

Trevor Hendrickson is founder and CEO of t8 design, an Iowa-based web development and design company. If he had any free time, he’d spend it parasailing.

Salon owners who would like to know more about Internet marketing with T8Design should Email the National Hair Society at Society@NationalHairJournal.com or contact Trevor direct at Trevor@t8design.com.

KEOP. KEOP is easy to use, but KORVUE makes it even easier.

NHJ: Makes sense.

TCH: Since you brought up KORVUE, I want to interject with what I feel is a vital asset of the KORVUE and KEOP communication: theft protection. Nobody wants to talk about this, but it is going on far more than people want admit. KORVUE can cut fraud because it requires contracts and hair system orders to exist before orders can be placed. Companies that

today are allowing ordering without a system to tie the order to the sale are facing serious theft problems. I know of a company that has point-of-sale software, handwritten contracts, and a separate software system for actually placing the hair orders.

This has led to big theft problems.

KORVUE’s integration with KEOP will prevent any order from being placed unless there is legitimate reason. I have been in this industry for a very long time, and after KORVUE was installed, even the most trusted employees have been caught ordering hair without charging the client through the company.

NHJ: I’d like to talk about the hair wholesalers in this country. Most of them have their own printed order forms and many offer electronic ordering on their Web sites. How can KEOP benefit established wholesales/retailers relationships?

TCH: KEOP is a tool for the industr y. It does not compete with any wholesaler, because every wholesaler is welcome to participate in KEOP. The nice thing about KEOP is that it makes technology available to everyone; wholesaler and retailer. Technology that they couldn’t otherwise afford. KEOP also supports certain features that wholesalers can’t offer directly, because there are simply things that the retailers consider confidential and are reluctant to share. I should also point out that KEOP supports unlimited order form styles and configurations so retailers can use a favorite wholesaler template or even store and retrieve their own custom forms to place similar orders. Then there are other useful features like live status updates, a messaging system, and much more.

NHJ:You said that any wholesaler can take integrate KEOP into their own ordering system. Would they be able to maintain their current production procedures and terminology? I don’t see any distributor wanting to abandon forms and

methods it has taken years to create.

TCH:KEOP is development framework architecture. We can make virtually anything from it. All it does is provide an environment for wholesalers to accomplish things they can’t afford to do on their own. One wholesaler may have a generic order form, while another may have a dynamic order form that they find quicker and easier to use. Everyone gets to choose the format that works best for them and their clients. Another valuable feature with electronic order forms is their ability to change as you complete them. You can hide fields that are not relevant to the order to avoid confusion.

Dynamic layouts like this eliminate senseless fields in the order form. This is a significant advantage over paper order forms, because no wholesaler can print multiple variations of their order form.

NHJ:How can distributors and their clients track the progress of their orders?

TCH: Order status can be retrieved effortlessly from the KEOP website or through KORVUE 24 hours a day without picking up the phone to contact the supplier. KEOP also supports other notification methods, such as e-mail, fax, and SMS. NHJ:SMS? Isn’t that a cell phone text message?

TCH:Yes. Let’s say a retailer has an urgent order that they need to follow; they can request to be notified every time the order’s status is updated. One of the available update methods is cell phone a text message with the latest status.

NHJ:What about the other messaging system you mentioned?

TCH:This is a very important feature of KEOP. Currently, if a factory has a question on an order, they will contact the wholesaler, who then contacts the retailer for the answer. Often, someone along the line drops the ball and never gets the answer (cont. on pg. 16)

16 The National Hair Journal Summer 2005

FLASH REPORTS HIGH-END MANNEQUINS with 100% REMIS HAIR Rancho Dominguez, CA – HAIRART International has introduced the 'Chantal' Collection, a designer line of mannequins featuring 100% virgin (remis) European human hair. Says company president, Jackie Yu, "Our new 'Chantal' line of mannequins is ideal as an educational tool.

The hair moves, looks and feels the same as natural hair. Because it is made of unprocessed hair, it delivers true results when the hair is exposed to heat, perming or coloring. 'Chantal' is claimed to be “The next best thing to working on a real client.”

Yu explains that many mannequin heads are made of Asian or Indian hair which is coarse and is available mostly in darker colors. They may also be chemically processed so additional color or perm solution on top of that often causes the hair to break down. Stylists can use 'Chantal' to test out different hairstyles or techniques.

Information: Contact HAIRART Intl. at 888-HAIRART or visit www.hairartproducts.com.

ED MARIE, HOSTS A SPECIAL SEMINAR FOR WOMEN OF COLOR Los Angeles,06/05 - On June 6, EdMarie Masters hosted the first of three workshops devoted to men and women of color. EdMarie, a member of the faculty of The National Hair Society, was assisted by Darla Smith, V-P International Hair Goods, as she discussed the special needs of African-American men and women.

EdMarie is no stranger to hair replacement; she has been in business for 35 years, with the last ten years focused specifically on hair replacement.

Guests and educators included Michelle Rochelle and Sherry Welch, a medicalbilling specialist, who explained the correct way for salon owners to advise their clients to bill their insurance companies if they are undergoing radiation therapy.

This was the first of three workshops.

The next one will be on October the 3rd when educators will go into more depth about customizing prostheses and alternate attachment methods.

EdMarie is creating a networking group to address the special needs of people of color. For further information, she can be contacted at edmariem@aol.com, or you can write to her c/o The National Hair Journal

KORVUE KEOP (cont.from pg.15) back to the factory. One of two things then happens: the order sits idle or the factory guesses; neither of which are good. However, if you use KEOP, it will monitor the request and remind the parties until an answer is delivered. A key aspect of this system is that the messaging is internal and you can see a trail of the communication directly related to an order. This provides great protection against errors, because it makes those involved accountable. But even though the messages are related to an order, we still protect the identity of everyone involved… for example; we will not expose the name of the factory used to the retailer, and vice-versa.

NHJ:Are any other safety features built in?

TCH:We offer protection against unauthorized order modification. If a factory or wholesaler wants to modify an order, they can request a change and KEOP will notify the other party and

The National Hair Journal About Us - The National Hair Journal is part of The National Hair Group, a business consortium committed to the development of the hair-management industry. The National Hair Group provides information services via The National Hair Journal a business newspaper, The National Hair Journal Online, an interactive website and The Insight Group, which organizes management workshops and retreats. The Group also provides consumer education and information services via The National Hair Hour, a weekly radio show.

Mission - To provide hair-management professionals from all disciplines with accurate information that will help them make better business decisions and provide superior service to their patients and clients.

EDITOR IN CHIEF Christopher R. Webb cwebb@nationalhairjournal.com

CREATIVE DIRECTOR Avi Roth aroth@nationalhairjournal.com

Contributing Correspondents Education & Technical Isaac Brakha James Toscano James Britt Bobbi Russel Medical Adviser Shelley Friedman, DO Legal Joel Morgenthau Marketing & Sales Mark Deo Tim Paulsen Medical Alan J. Bauman, MD John Vincent Subscription Services Receivables Management Corporation P.O. Box 50650 Indianapolis, IN 46250 Tel: 800-894-9031 Email: rwarren023@aol.com

The National Hair Journal 39252 Winchester Rd., #107-383 Murrieta, CA 92563 Tel & Fax: 951-541-2809 news@nationalhairjournal.com subscriptions@nationalhairjournal.com advertising@nationalhairjournal.com events@nationalhairjournal.com All articles and commentaries in The National Hair Journal are Copyright protected and may not be reproduced without permission.

Notice: The National Hair Journal Issue Number 34 Copywright ©2005 All rights reserved.

While great care has been taken to ensure the accuracy of the information in The National Hair Journal, the publisher does not assume liability for decisions based upon it. Readers are advised to seek further independent advice.All statements, including product claims, are those of the person or persons making the statements or claims. The publisher does not adopt any such statement or claim as its own, and any such statement or claim does not necessarily reflect the opinion of the publisher. The National Hair Journal accepts no responsibility for unsolicited materials. All materials in this issue are the propety of this publication and nothing shown may be reproduced in any form without obtaining the permission of the publisher and/or any other persons or company who may have copyright ownership. Requests should be addressed to: NHJ, 39252 Winchester Rd., #107-383 Murrieta, CA 92563

ask them to accept or reject the change.

This enhances the accuracy of the orders. All changes are recorded electronically, so when the re-order is placed it will reflect the actual and final order specifications. With paper orders, this does not happen and frequently leads to errors on reorders.

NHJ: It looks like 2005 is shaping up to be the year of technology in the hair replacement industry. Thank you for describing KEOP and KORVUE to our NHJ readers.