2008 Winter

Season’s Greetings

News Makers

Marketing

Education

Extentions Tips How to become a better extension specialist

Reason to Advertise in 2009?

By Bobbi Russell

By Steven Dimanni

pg. 6

pg. 10

Meet Pierre Amelotte

2010!

Founder and President of PAI Medical Group

pg. 12

Hair Journal International

COUNTING PENNIES VOLUME 12 NO. 48

THE OFFICIAL PUBLICATION OF HAIR FITNESS , REPLACEMENT AND RESTORATION

A recent report titled, “Shopper in Crisis” indicated that 52% of consumers tried to make personal care products last longer, and one quarter of respondents said they now share more personal care items such as shampoo with other household members. The survey, conducted by Mintel International, found that nearly half of all consumers said they went to spas and salons less often, while one third of consumers reported doing more beauty treatments at home. This is borne out by the increase in the sales of home hair color treatments, which were up 2.2% in the three

months ended June 29, compared with a year ago.

And it’s not just lower income households that are

They want your Scalp!

ground. In its current advertising campaign, Head & Shoulders shampoo urges the public to, “Respect the Scalp — Get the Hair.” For good measure, it adds, “You’ve got about 108 in.? of Scalp, Develop that Real Estate.”

Not to be outdone, Aveda marketing now tells men that their scalps are different to a woman’s and promises, “Healthy Scalp, Healthy Hair” from its Aveda Men PureFomance products. Where does this leave Gillette, our original prediction for a thinning-hair product targeted at men? Well, Gillette is still building a virile product line under the theme, “The Best a Man Can Get” and we continue to think that a Gillette thinning-hair line extension lies just over the horizon. But given P&G’s acquisition of the Nioxin brand, it has to make sense for the company to deploy its considerable clinical and marketing expertise behind that brand and use it to inch open the door to more hair loss solutions, both medical and nonmedical.

For years, thinning hair specialist, Nioxin, owned the platform, “Skin Care for the Scalp,”

but after a personal care company Procter & Gamble purchased Nioxin in September 2008, the scalp became the new healthy hair battle-

Never Say Diode The U.S. Food & Drug Administration has its eye on the laser market. In the last few months, the FDA has issued warning letters to several laser manufacturers and distributors; its main complaint concerns unwarranted hair growth claims and failure to obtain marketing approval or clearance before offering product for sale. The warning letters are detailed and explicit; “A review of our records reveal that you have not obtained marketing approval or clearance began you began offering your products for sale, which is a violation of the law.” The

Hair Loss Confidential Phoenix, AZ, 11/08 - It was only a matter of time before hair loss joined other “makeovers” on the reality show circuit. The question wasn’t whether to do it, but how to do it right. The new webcast, Hair Loss Confidential, features thinning hair suffers who are nominated by loved ones, friends and co-workers without their knowledge. The Hair Loss Confidential team, along with the nominators, approaches the subject to discuss their situation. The viewer shares the turmoil of the subject and family; the denial, the embarrassment, the cover-up. The show concludes as the victim experiences the hair restoration process and a life-changing transformation.

The program was pioneered by Lisa Zimmerman of National Hair Centers, Phoenix, Arizona who shared it with members of the Transitions Group. Tim Pfeiffer, the marketingdriven owner of Hans Weimann in St. Louis, immediately seized the opportunity to participate. The next webisode will air in December at www.HairLossConfidential.tv.

economizing. Households with incomes in excess of $100,000 are also cutting back. 41% of upperincome consumers said they reduced spending on

FDA investigation of the industry goes beyond a scrutiny of websites (“…the Office of Compliance (OC) in the Center for Devices and Radiological Health (CDRH) reviewed your websites, located at…”). Agents also routinely visit manufacturers, most recently GMR Products, Inc., makers of the Amazing Laser Brush.

Where the FDA encounters a problem, the response is not subtle. “It is your responsibility to ensure compliance with applicable laws and regulations administered by FDA.” So if you’re going to say, “Diode” be sure you have done all your homework, because when it comes to lasers, you only live once!

Bosley Gets IT Award Bedford, MA, 11/08 – Bosley, a leader in medical hair restoration, has been named to the InfoWorld 100 Top IT Solutions for 2008. Bosley was facing a challenge to field more than 40,000 calls per month, handled by 100 patient service representatives who have to schedule more than 26 physicians, numerous office staff and 50 senior counselors, not to mention surgical facilities and equipment.

Bosley chose TimeTrade’s Web-based solution to manage appointments efficiently, minimize errors, integrate with Siebel CRM, provide roles-based access and administration, enforce scheduling rules and provide management with better visibility, reporting and control over scheduling operations.

nonessential groceries and a quarter of them said they gave up more expensive favorite brands to buy cheaper private label products.

In the thinning hair market, hair addition salons are better positioned to ride out the softening economy than their medical-clinic peers. Hair restoration surgery is an expensive investment with results that only become apparent several months after the procedure. Hair replacement salons on the other hand, have an ongoing income stream from “service” clients and can offer immediate cosmetic benefits. Perhaps the new economic climate will encourage closer collaboration between medical and non-medical segments of the industry, leading to more cross marketing and joint ventures.

Hair Club Infomercial

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WINTER 2008

P&G Purchases NIOXIN

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CINCINNATI, OH, 09/08 –The Procter & Gamble Company has announced the closing of an agreement to purchase NIOXIN Research Laboratories, Inc. A leader in the scalp care professional haircare segment, NIOXIN offers a range of innovative products that focus on the scalp to improve the appearance of thinning hair. The Company’s product line is distributed through salons and salon stores in more than 40 countries. The acquisition is in line with P&G Beauty’s strategy of focusing on faster growing, higher margin and more asset-efficient businesses.

Boca Raton, FL. 10/08 – “When the economy’s been in a downward cycle, Hair Club has had some of its most successful years,” said Lee Zoppa, Hair Club’s Vice-President of Marketing & Advertising. “It appears there’s a definite correlation between economic uncertainty and jobseekers looking to make a great first impression. Hair equals confidence.”

Recognizing the new economic environment, Hair Club launched a new infomercial on October 26th that features Hair Club clients talking about how their appearance has helped them professionally, as well as personally. The importance of confidence and self investment are the central themes as they tell viewers that Hair Club not only works, but that it has actually helped advance their careers. They point out that the job market is tough, so now, more than ever, making a terrific first impression is a must. That first impression might come in as little as 30 seconds, so looking your best, and displaying confidence in your appearance and ability as a professional, has to be a priority.

Glaucoma Drug Can Thicken Lashes Irvine, CA. 10/08 - Lumigan, a drug which treats the eye disease glaucoma has also been found to double the growth of eyelashes. Researchers noticed that during clinical trials, patients who treated glaucoma in just one eye had the lashes in that eye grow significantly thicker, longer and darker. Further analysis revealed that eyelashes that had been treated with Lumigan gel grew around 2mm in 6 weeks; about twice as long as those who used a placebo. Researchers are still not sure why Lumigan, the first of a new class of glaucoma drugs called prostamides, has this effect on lashes, but its makers are conducting further research with the hope that they can help a wider range of people, including those who have alopecia or other hair growth issues.

"The Republican Party is going to need a lot more than just a comb-over" Governor Pawlenty, Miami, Florida.

Kevin Otero, General Manager P & G Professional Care , Ron Anderskow, Director P & G Professional Care, Brian Graham, CEO, NIOXIN, Eva Graham, Founder, NIOXIN

“NIOXIN is the leading brand in the specialty thinning hair segment with excellent management and a deep expertise in the professional hair businesses” said Robert Jongstra, President, P&G Professional Care. “This acquisition is a great strategic fit given P&G’s leadership and proven strength in its retail scalp care business. Further, P&G’s global scale creates opportunities to further grow the NIOXIN brand in key markets around the world.” P&G said current NIOXIN CEO, Brian Graham, will continue to lead the business.

Stimulate the Melanin, Kill the Grey!

London, UK, 11/08 - Researchers from Manchester University and Lubeck University, in Germany are developing a drug to restore gray or white hair to its original color. After they discovered a way to recreate K(D)PT, a naturallyoccurring molecule similar to the hormones responsible for hair pigmentation, they conducted a clinical study with six women aged between 46 and 65 the assess its impact on hair that has turned white because of illness or extreme stress.

They found that when hair follicles were treated with K(D)PT, the melanin in those follicles increased significantly. And more melanin should mean more pigmentation. As a result, they hope that men and women who want to restore their hair color may be able to do so without the expense and inconvenience of commercial tints and dyes. Dr Ralf Paus, the study’s lead researcher, told the BBC, “It’s important to note that this is laboratory research and not yet ready for use on patients. However, while the research is still at a very early stage, these findings could potentially pave the way for new therapies that restore color to white hair. “

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Looking Back – It’s been quite a year! The market continues to restructure itself. We see new technologies creating extra profit opportunities. Salon owners who fail to keep pace are seeing their business decline as the accelerating pace of change makes a once complacent market less forgiving. Fall behind, and you may never catch up.

This was the year the hair market went “cellular.” The year when the likelihood of future hair loss could be read from your genome; when hair was successfully grown in a lab on the other side of the world, and coherent light was shown to energize cells to promote hair growth. It’s a different landscape and it’s going to demand a special effort to keep up. At the Hair Journal we understand that we have a responsibility to identify significant news, explain the significance of new technologies and tell you about workshops that could help you evaluate them. Fortunately, twelve years of publishing have created strong industry connections and we will continue to expand our advisory board to bring in additional expertise to explain specialist products that could impact your business.

The Real Ethnic Market - There is much talk these days about the so-called “ethnic” market - just as there was about the “female” market some five or six years ago.

But what do they mean, or more to the point, what should they mean by ethnic? By most definitions it is - someone related to a group of people having common racial, national, religious, or cultural origins. So I’m ethic, and you’re ethnic, but of course they’re not talking about us. They SHOULD eyeing the huge, and rapidly growing, Hispanic market. A market where real men don’t lose their hair and women wear their hair down to their shoulders and swirl it with abandon when they dance.

Latinos have accounted for more than half (50.5%) of the overall population growth in the United States in this decade. In fact, they are the only ethnic group now producing more than two children per family, according to a recent Census Bureau report.

“The Hispanic population is growing; while whites and Asians are not replacing themselves,” said Jane Dye, the Census Bureau demographer who wrote the study.

Hispanics are responsible for 50.5 percent of the U.S. population growth since 2000, even though they were only 15 percent of the population in 2007. Just as significantly, their purchasing power is growing at

Letters to the

Editor Dear Editor, In a recent survey of hair replacement centers throughout the U.S. a curious phenomenon was unveiled which could cause anyone to wonder, is this the end of an era in the professional hair replacement industry? I am referring to the Apollo Hair Replacement organization, and this is what has prompted my concern.

The following is a list of locations which, apparently have closed, relocated or are perhaps now conducting business under another banner. The total is 43 locations and does not include any of the international offices.

Amarillo, TX; Atlanta, GA; Chatfield, MN; Cincinnati, OH; Clarksville, TN; Columbus, GA;, Cookeville, TN; Dallas,

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triple the rate of the overall U.S. population! Are you watching this trend? Are you running Spanish-language advertising?

Are you sensitive to the cultural expectations of your new Latino clients? This is the real future, and it’s here to stay!

The bad stuff – Once a year it’s OK to gripe, so here are a few of our top peeves. Not enough people attend hair distributor conferences; maybe 350 for a popular show and some 500 people who go to multiple events. Does everyone else already know everything there is to know?

Or don’t they see the value in a week-end of professional education? There’s something wrong here! The hair-management industry doesn’t have a voice. This is a $4 billion business and it needs an authoritative voice. Milk has a voice; meat has a voice; New York City has a voice; but hair doesn’t!

Clairol tells you, “You’re worth it,” but thinning hair hangs its head in shame. It doesn’t send a positive message as I see it. While I’m at it, I’m fed up with the continuing cheap shots the media take at hair replacement. Since when was it OK to laugh at the disadvantaged or sick? There’s an education job to be done here. Where’s the beef?

People who don’t pay their bills. We all know their names; the few crooks who create distrust that pollutes the entire industry.

We’ve worked hard to clean house and if you don’t want to play by the rules, get out!

Or go into politics.

The high ground - It’s a privilege to meet the professionals who give their time free of charge to help people with special needs.

ISHRS has a special pro-bono program financed by the doctors themselves that provides surgery to patients who could not otherwise aspire to medical assistance. Then there are the stylists who are there to help women about to lose their hair due to chemotherapy. They give their time, emotional support and often their merchandise and I am in awe of them all!

Happy Holidays from all of us at Hair Journal International – writers, contributors, editors and designers. We wish you a restful break with your family and those close to you. Thank you for your support and friendship - we look forward to working with you in the year ahead, Chris Webb

Editor-in-Chief

TX; Denver, CO; Florence, KY; Fort Dodge, IA; Huntsville, AL; Idaho Falls, ID; Joplin. MO; Las Vegas, NV; Little Rock, AK; Louisville, KY; Marion, IL; Milwaukee, W; Muscle Shoals, AL; Nashville, TN; New Orleans, LA; North Miami, FL; Omaha, NB; Orange Park, FL; Pittsburgh, PA; Raleigh, NC; Ridgeline, MS; Roanoke, VA; Seattle, WA; Springdale, AR; St. George, UT; St. Louis, MO; Summerville, SC; Tallahassee, FL; Troy, NY, Tucson, AZ; Tulsa, OK; Vienna, VA; Waite Park, MN; Winter Park, FL I trust there may be some logical explanation for these locations closing or changing their identity. If that is not the case, shouldn’t we all, as industry professionals, be concerned about the decline of one of the industry giants, in such a short period of time?

Respectfully submitted by, a truly concerned observer.

Anthony Marino

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HAIR EXTENSIONS AS A HAIR LOSS SOLUTION Non-surgical hair replacement can be a wonderful option for the right hair loss candidate.

But have you ever thought about hair extensions?

By: Hannah Mayo

or many men and women, hair extensions offer an attractive alternative to hair restoration surgery, wigs or traditional hair additions. They can even assist women recovering from chemotherapy. Ron Cardillo, Sr. President of SO.CAP. USA Hair Extensions notes, “Hair extensions are a great alternative to surgery because the technique is easy. There is no surgery and no recovery time.” Not every hair loss patient is a good candidate however; it depends on their degree of hair loss. Your client must have at least two inches of their own hair for the hair extensions to be able to effectively

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attach their micro-mini keratin protein bonds.

If a cancer patient in recovery approaches you, ask them to bring a note from their doctor stating that they have completed their chemotherapy treatments and that they are past the stage of hair loss. Once they have at least two inches of hair, you can start to reconstruct and rebuild their hair with professional micro-mini keratin bonded extensions. The client’s hair does not have to be thick. As long there is enough hair to cover the bond, you are going to be able to give them most of the fullness they desire.

Professional salon hair extensions can rebuild a new hairstyle to give your clients their self esteem and confidence back.

Some hair extension companies offer 100% keratin protein bonds that are non-damaging to already fragile hair. No glues or adhesives are used, allowing hair extensionists to operate at a faster speed. Some hair loss clients are great candidates for the cold fusion application, the latest state-of-the-art technology. The cold fusion application allows the extensionist to bond hair extensions very close to the scalp, making them smooth to the touch and nearly invisible to the eye.

Clients who lead active lifestyles have nothing to worry about either. They can shower

and shampoo their hair as they normally would, blow dry and go. There is no messing with tapes, adhesives or having to shave portions of their head to place a hairpiece or wig.

Once professionally bonded hair extensions are properly applied, they can last up to six months with regular at home and salon maintenance and the correct product regimen. Toma Moore, a top extension educator comments, “Outstanding professional salon hair extension skills are vital if you want to provide this new and effective option for hair replacement.” You can read professional trade magazines, search the Internet and visit professional hair extension companies to find out about the different training and support services available. One company, SO.CAP. USA Hair Extensions will soon be offering advanced certification classes for people who want to specialize in hair reconstruction (stylists will need to be certified with SO.CAP. USA Hair Extensions before they can enroll in this class).

Once your technical training is complete, you will want to market and sell your specialized services effectively. One of the best ways to do this is to show your work with a professional portfolio of makeovers.

Include as many before and after photographs as possible, along with personal testimonials from your clients. Salon owners might also try reaching out to cancer centers, plastic surgeons and local support groups. It will help to create an annual advertising, marketing and media relations program focused on sharing ALL your hair loss services which may include hair wefts, wigs and hair extensions.

Don’t forget the men!

The professional salon hair extension industry definitely has a shortcoming when it comes to marketing to a male clientele. Look how long it’s taken to get men to use hair color!

How many times have you come across a male client asking, “Wow, is this starting to look thin, what can I do?” Your answer should be simple; hair extensions. Let them know that with bonded extensions, they won’t have to work with messy oils, shampoos or other products that claim to create the appearance of thicker hair for a while, but quickly lose their effectiveness. With hair extensions, men will get instant gratification. They’ll be even more pleased when you tell them they can wash their hair like normal and go out to work or play without any worry.

Obviously, hair extensions are not for everyone. You don’t want to cause more trauma for your hair loss clients. That’s why it’s so important that you become qualified in hair extension applications - your clients need you to be their savior with safe, effective alternative hair care solutions. Hair extensions may just be the answer for them… and for you!

Hannah Mayo is a Marketing Director at Marketing Solutions, headquartered in Fairfax, VA. Marketing Solutions creates advertising, marketing and PR programs for salons, spas, medical clinics, manufacturers and distributors across North America.

6 Hair Journal International Winter 2008

As outlined above, new people will be entering the hair restoration market in 2009, just as older ones will be leaving. Obviously, if you don’t replace client losses with client gains, you’ll feel the financial setback in 2009 and in years to come.

If you believe in the research that has resounded throughout the industry, and there is no reason not to, then you will really be at a disadvantage to make up in 2010 what you lost in 2009.

Yes, you can tell yourself that the above will not be the case. But many advertisers with tens of millions of dollars found themselves playing a game of catch-up that they could never win— even when they doubled, yes doubled, their advertising expenditures!

Will You Still Have Competition in 2010?

The competitive environment, or should I say, a competitive environment, is at the heart of the matter when it comes to advertising in a recession. If you go back to all the research that has been done with national advertisers, the conclusions are always about an advertiser who dropped his budget against a competitor who didn’t. One could surmise, perhaps correctly so, that if you have no competition at all in your market, none of this applies to you.

To some extent, that’s a correct hypothesis.

Sure, business will drop off during a recession when you don’t add new customers through lack of advertising—and yes, some of these potential clients will be lost forever. But for the most part, you don’t have to worry about another studio getting stronger at your expense if you don’t have competition. You also don’t have to worry about one or more of your technicians leaving, and taking your clients with them, to go to a stronger studio.

Don’t believe me? Then why do so many companies who have e-commerce business models advertise?

Think of geico.com or esurance.com. Think of Overstock.com or EBay. You get the idea. And you know what I’m talking about, because like everyone else your senses are inundated by their television commercials, billboard ads, etc.

Yes, there is no such thing as a free lunch. If only we could just put up a website, optimize it to a fare thee well, and then get free leads.

Sound too good to be true? It is.

In short, in order to make money, you have to spend money.

That, and that alone, is the case for advertising.

But don’t take my word for it. All of you go to industry conventions. All of you read the National Hair Journal. Almost every one of you speaks to other people in the business. And guess what? The “heavy hitters”, the most successful studios who have the most clients and generate the highest gross profits all have one thing in common: they advertise.

The Value of Branding Yourself In times when money is tight, when every dollar counts, your advertising expenditure needs to do more than just sell a product: it has to sell your studio.

Heretofore, most advertising and marketing programs that were originated from manufacturers, were based on selling a particular product and entirely direct response oriented in nature: the consumer saw something on TV that interested him or her, and then called a phone number to obtain more information about that product.

But most studios do have competition. Even if it’s not from another studio it could be from a transplant clinic. Or the local barber who has decided to start selling hair “on the side”.

While this type of advertising, if done correctly, could generate many leads and subsequent sales, there was no residual effect. The studio’s name, what it stood for, and what it offered were not made clear; just the product du jour being advertised.

If your competitor stops advertising altogether, and you do the same, you’re both basically in the same place and will in all probability both emerge from the recession at the same relative competitive levels that you did at its beginning,

The limitation of such advertising is that if consumers weren’t ready to buy at that particular time, there was no built-in awareness of a studio’s brand that could influence them to call when they were ready.

But if your competitor decides to continue to advertise, and you decide otherwise, you’ll meet the same fate as the research tells us that those national advertisers did: you’ll be behind in both sales and share of market, and it might be near impossible for you to ever catch up. At least until the next recession arrives.

In a recession, advertising has to work harder.

You not only have to get responses for today, you need to build awareness for tomorrow, so when the person is ready to do something, he or she knows where to go.

Not a good place to be.

The Argument Against (and for) Advertising Central to this whole article is that your studio advertises in the first place. There are some studios today that no longer believe in advertising.

They think the cost per lead is too high and/or that the cost per sale is prohibitive.

Of course, no studio has to advertise. If you have a good number of existing clients, you can milk them for all they’re worth by upgrading them to more expensive service plans; hey, whatever the traffic will bear, right?

But every studio, no matter how superior your product and service, will lose clients through attrition. How do you replace them without advertising? Well, there’s always word of mouth and referrals. Those can be few and far between, but it’s better than nothing certainly.

Then there’s the web phenomenon. There are some studios who feel that if they have a vibrant website, then that in, and of itself, will attract new business, especially if it’s optimized and shows up high on search engines.

Remember, the “www” you type in before a URL stands for “world wide web.” You may well get many hits and inquiries on your website. But how many of these people live close enough to you to become clients?

A hot buzzword today is viral marketing; putting a video on one of the social networking sites that will be passed on from one person to another, due to its uniqueness or entertainment value. But again, the same problem arises: how many people in your market who are bona fide prospects will see it?

The way to optimize local traffic to your website it to “drive it” through advertising, public relations, or some other promotional vehicle.

European Quality European Style

On Rite has recently introduced an advertising program called Corrective Hair Solutions that does exactly that. It brands the studio first through customization options, and sells a product second. But even in that regard, the program is different. Because instead of just selling one product, Corrective Hair Solutions is an openended campaign that allows the retailer to sell whatever product he wants.

I am sure that this type of “studio first, manufacturer second” advertising will be the norm rather than the exception in the future. I’m also sure that many other manufacturers will follow On Rite’s lead in providing their studio client partners with such advertising. It just makes sense.

Particularly in a recessionary economy.

Thrive versus Survive There are those studio owners who are only seeking to survive tough economic times; there are others who see this period as an opportunity to thrive: to increase their market share and distance themselves from their competition.

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It is not a time for the timid. Or for the unimaginative. But for those who have foresight, who realize that bad times do not last forever and that there is indeed a better day coming, it is a time of unique opportunity.

European Hair Imports

“Out of chaos comes opportunity” goes the old adage. Are you ready to take advantage of the opportunities offered by a bad economy? I certainly hope that this article will in some small way encourage you to do so.

Steven DiManni is a 26-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, 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 25-year veteran of the hair replacement industry, Steven is a long-time consultant to the On Rite Company

2021 E. Commercial Blvd.Suite 305 Fort Lauderdale, FL 33308

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Building a Better Living - Building a Better Life

By Phil Fennell

Phil Fennell is respected for his technical expertise and the business development programs he has shared in the HR industry. His article in last month’s Journal, “Meatballs, Ice Cream and Getting Rich” received strong response for its hard-nosed common sense and its optimism. A couple of quotes: “Do you realize more self-made millionaires made their fortunes during recessions than any time in our history?”

And, “You’ve got to offer your clients multiple choices. If it’s out there and it works, you’ve got to offer it.

Remember, no holds barred. In today’s market place, only one or two irons in the fire will get you killed eventually. Always has! Something about “all the eggs in one basket.”

In this issue of The Journal, Phil has a new quote, “You cannot do it without using the latest technology to advance your business. Whether it’s hair analysis scopes, light therapy, or salon-management software, if it works for others, it will work for you.” When it comes to about salon-management software he should know what he is talking about since he is one of the Senior Industry Specialists for KORVUE’s Hair Replacement and Salon & Spa software divisions. Today, Phil explains how automated salon systems can change your life.

First a disclaimer; I am a consultant for KORVUE so most of the examples given in this article come from my experience with this particular software.

But whether you choose KORVUE or another software package now is the time to automate. You can no longer afford to be inefficient. Product has to be ordered and delivered on time. Every penny must be accounted for. So do your research, weigh your choices, but whatever you do, get automated NOW. I have a question - Why has KORVUE done so well in salon & spa, medical clinics, and other service industries, while here in hair replacement, despite a few intrepid salons, there are still many hair centers that struggle to see the benefits?” It’s basically the same software; all that’s changed is the marketplace.

So what gives? Is the hair replacement market that different from beauty salons and other personal care shops?

I think it’s a “busy-ness” and communications problem. People don’t yet understand how this software fits into their workday. Everyone’s too busy among the tress to see the trees. So I’m going to try and give you some perspective in this article. I want to introduce you to someone who will tell you how salon-management software changed her business and helped her build a better life. Her name is Alicia Stevens.

Alicia Stevens began her career at age 17, right out of high school. She spent her first 6 months working in a typical salon and was bored to death. Then she was offered a job by the owners of Genesis II in Syracuse, NY. She didn’t have a clue about what she was getting into, but she took the job anyway. That was 27 years ago. Today, she is the proud owner of Genesis II, along with her mother and sister. Here are some of the things she learned along the way: • You’ve got to be multidimensional; you simply can’t offer one or two services. Clients are more educated and demanding than ever. If you don’t have what they want, they will find it somewhere else.

• I went after the women’s market and it has paid off. We’ve all seen the decline of the men’s market but with women, experiencing hair loss it is a physical and emotional need.

• Products, products, products! This is one area where I see many studios missing the boat.

Especially products that help clients try and stop their loss.

• If you are not advertising on the Internet and through your own website you’re blowing it.

• If you and your business aren’t automated, you’re not in control of your business! It simply can’t be done any other way.

Alicia on the hair replacement industry today: • I love the fact that the industry is constantly changing. I attend every seminar and event I can.

• I hate the dishonesty that still exists in our industry. The, “Do whatever it takes to make the sale” mentality. Too many times we have clients come through our doors and we know immediately that they have been misled by another studio. And they usually know it too. They may not know exactly what the problem is, but when they look in the mirror they know what they were sold was wrong.

7 Hair Journal International Winter 2008 How I took a risk and automated: • The first time I saw KORVUE was about 6 or 7 years ago at a manufacturers’ seminar. I didn’t even know how to turn a computer on at the time but I knew every industry in the world couldn’t work successfully without one, so into the class I went.

• To realize that one product could do the work of 5 maybe 10 people blew me away.

Some early discoveries: • By using only the initial features of KORVUE, we recouped our entire investment in the first week just from outstanding receivables. The first client we looked at owed us over $4,000 and we had about 1,100 clients at that time!

• The software helped us identify clients paying for 6 system programs who had been receiving 10. And 17 service visit programs that had been receiving 24. I won't even begin to discuss the inconsistencies in our billing processes!

• Then there were the inventory control nightmares. I can't tell you how many times program clients would come in for their new hair system only to discover that it had never been ordered.

The computer now alerts us when to order and then tracks it. Problem solved.

How the computer has changed my salon: • Employees can go home and leave work behind them. Owners didn’t have that luxury – until now.

• When my mother became ill I became the owner, technician and trainer. If it hadn’t been for KORVUE, I could have never worn all these hats and still controlled the business.

• Today, I’m no longer a slave to my business.

With KORVUE and PC-Anywhere I can work off site and monitor my company anywhere and anytime. Aren’t real vacations wonderful!!!

Alicia took a risk. She knew nothing about computers, only that they could give her back control of her business if she made the effort to learn how. Six years later, she couldn’t imagine running Genesis II without her salon-management software. Her story also points out the importance of training and personal commitment.

Garbage In, Garbage Out – Most successful salon automation stories began with a commitment to learn the software. You can’t go from driving an everyday car to an Indy car without developing new skills. Knowing how to use your computer system properly will help you get more from it.

Training vs.Technical Support – Training teaches you how something works, what steps to take, and when to take them. Since everyone’s learning curve is different, you can ask a KORVUE consultant to recommend the right training regimen for you.

Here’s a convenient learning tool - download a free copy of “Salon and Spa Software For Dummies®” and learn at your own pace. Yes; it’s free, thanks to the National Hair Society (www.nationalhairsociety.org). This pocket book is a simple 30 page resource on what you need to know when you are buying software for your business.

Don’t Be Afraid! - You can only take so many swimming lessons. Eventually you have to jump in the deep end. KORVUE is the only software I know that has a training “life jacket.” Simply click a menu item and KORVUE switches into TRAINING MODE—making it impossible for you to harm your real data.

What if you don’t really want to go to Daytona?

- What if all you want is software that requires virtually no learning curve and is easily affordable for everyone? Introducing “KORVUE-LITE” for the Hair Restoration Industry K Lite will be delivered with most of the settings and critical reports pre-set. Plug-n-play. Later, you can customize the settings to your own preferences.

K Lite users get special business education to maximize the use of the software.

K Lite will pay for itself. At this entry-level price, it will deliver a fast return on investment.

K Lite can be upgraded to the professional version when you’re ready. You can start out on the Interstate and drive to Daytona later.

Yes, we work hard to make money, but if you take advantage of today’s computer software you can go beyond the dollars to, “Build a Better Living and Build a Better Life!”

Phil Fennell – Hair Journal readers are sure to have seen Phil at any one of the industry leading conferences where is in demand as a speaker and coach.

Phil has over 30 years of management and ownership experience and 16 years as an international performing artist and educator. He has presented such programs as PSE’s nationally acclaimed, “Managing in the Real World. Phil is Faculty Member of The National Hair Society and recently accepted the position of Senior Industry Consultant for KORVUE Software, Salon & Spa Division.

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8 Hair Journal International Winter 2008

Hair Journal International PROMOTING

Medical Section

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

ISHRS 16TH ANNUAL SCIENTIFIC MEETING Montreal. 09/08 - The 16th annual scientific meeting of the ISHRS took place in September, 2008. The Program Chair was Arthur Tykocinski, MD. In the words of outgoing president, Bessam K. Farjo, M.D., “The Annual Scientific Meeting is the cornerstone of the ISHRS.” He also noted that the “ISHRS was born in 1993 out of recognition by field leaders around the world for a professional society and would help restoration specialists share scientific and clinical knowledge and assure the scientific, clinical and ethical standards of hair restoration surgery are maintained at the highest professional level.” The packed agenda, starting some mornings as early as 6:30 a.m. and continuing well into the evening, certainly met the brief.

Significantly, ISHRS reached beyond surgical techniques to discuss other important components of patient satisfaction, including “Body Dysmorphic Disorder: How to Identify and Deal with Such Patients” by J. Kevin Thompson, Ph.D., professor of psy-

chology, University of South Florida, Tampa, Florida. Dr. Thompson’s research interests for the last 25 years have concentrated on body image disturbances and eating disorders. Guest speaker Zoe Diana Draelos, MD, talked about, “Preventing Unnecessary Female Hair Loss.” Dr Draelos is a board certified dermatologist with special research interest in cosmetics, toiletries, and biologically active skin medications.

The special needs of people of color were reviewed by Victoria Holloway Barbosa, MD, MPH, MBA, an assistant professor in the Rush University Department of dermatology where her areas of expertise include hair disorders and skin of color. She is a former vice president in research and development at L’Oreal USA and built and directed the L’Oreal Institute for Ethnic Hair and Skin Research.

New technologies being followed include genetic testing for future hair loss, robotic assisted harvesting of follicular units and cell multiplication, often (incorrectly) referred to as “hair cloning.” On the surgical front, the debate over FU vs. FU and MFU continues, as does discussion of “Cosmetic Density” and the pros and cons of “Dense Packing.” A new closure technique, Trichomorphic Closure, was also debated at length. As always, significant time was devoted to understanding and satisfying patient expectations, with special emphasis on young patients.

Following the scientific meeting, the presidential baton was passed from Dr Farjo to William Parsley, M.D. who will serve as ISHRS president for the next 12 months.

The Hair Journal had the privilege of talking with both presidents and the highlights of these discussions are printed below.

Dr. William Parsley, President ISHRS 2008/9

HJI: Dr. Parsley, are there any special goals that you’re setting yourself for the next 12 months?

WP: We’re in the process of organizing our thoughts on what we can accomplish this year. We need is to network with corporations to get more sponsors. We have some medical needs that the medical companies and pharmacies can fulfill for us and we would like to work more closely with them.

We would also like more interpreters at our meetings. Some of our members come great distances and although they have a working knowledge of English, it is hard to follow discussions when you get into technical jargon.

HJI: What are some of the highlights of the last four days?

WP: There’s been a lot of work on donor site closures. There’s a new technique called a “trichomorphic closure” that is an improvement over the old closures and can produce less scarring. There’s work on

dense packing. And we’re trying to come to a conclusion as to what level of graft density would not only give the people a great result, but would also prevent complications. Sometimes you can take it too high; some people may do great, and others may have a poor result. So we’d like to get to where our results are uniform across the board. We’re trying to find the density that would allow that optimum result.

HJI: Going back maybe five years, hair restoration surgeons weren’t placing as many grafts as they are today. Maybe 5001000. That was a busy day. Now where are we?

WP: Five years ago, we were planting well over 1,000 grafts; but now we’re getting to where people are planting 4-5-6,000 grafts in a single session.

HJI: Looking over the horizon, what are the exciting new technologies?

WP: Bioengineering is really big. We’re trying to take a few hair follicles and create 100 times more follicles. That way, you could take people who are quite bald and restore their hair. Whether it’s going to come to fruition, we don’t know, but it looks very promising. Also preparing grafts for placement - things we add to our holding solutions while the graft is out of the scalp - seem to be making a big difference to the survival and health of the transplanted hair. Also, there are things being used topically that show promise.

HJI: We look forward to talking to you in 12 months time and seeing how it all went.

WP:We’ll hopefully have some good news.

HJI

Why the Splitting Has to Stop

9 Hair Journal International Winter 2008

At a time when everyone is looking to save money, we asked Dr. Shelley Friedman about the wisdom of pill-splitting, or using a prescription drug (Proscar) formulated for one medical condition (enlarged prostate) for a totally different purpose (hair loss).

Specifically, is it OK to get a prescription for Proscar which contains 5mg of Finasteride, have your medical insurance pick up the cost, then split or grind up the pill to try to make several mini-pills that match the recommended 1mg finasteride dosage of Propecia? Is this a legitimate way to beat the system and save money, or are there other issues that patients need to be aware of?

Dr. Shelley Friedman has been deeply involved in the development of hair restoration training and accreditation programs and is a medical advisor to The National Hair Society. We met with Dr.Friedman at the Scientific Conference of the International Society of Hair Restoration Surgery (ISHRS), an annual event where hairloss physicians and researchers gather to exchange information, share surgical techniques and network with industry leaders.

HJI: Some people are tempted to try and save money by splitting tablets of the prostate drug Proscar. Is this a smart way to stretch your dollars?

Dr. F: In a word, no. I have been to several pharmaceutical companies and seen how medicines and pills are made. Unless a pill is scored by the manufacturer and there is an obvious crack right down the middle, there is no guarantee that you are getting the same dosage in any of the split sections of that pill.

HJI: But if you divide it evenly, isn’t it possible to get the right percentage?

Dr. F: When the ingredients that make up the pill are combined together, they are not uniformly mixed. So, if somebody takes a Proscar pill with 5 mgs of finasteride and cuts it into quarters, they’re not necessarily getting twenty-five percent of the drug in each quarter.

And if they cut it in half, they’re not necessarily getting half of those five milligrams every day.

HJI: Doesn’t the dosage even out over time?

Dr. F: Not necessarily. If you cut a 5 mg table into quarters, out of the four sections, you may only be getting the correct amount of medication once every four days; or the full dosage every four days. This is a problem because the recommended therapeutic dose is 1 mg every day. So, if you’re only getting the medication once every two days, or once every three days, you’re never going to reach the right therapeutic level and never get the benefits.

HJI: Why do people take this risk?

DR. F: It comes down to economics. They think they can save money and still get the benefits of Finasteride. It’s obviously cheaper to take a generic drug that’s no longer patent protected and try to make it go further. But, as we’ve discussed, they may lose all the medical benefits. There is another serious problem also. The FDA approval of Finasteride is for enlarged prostate problems; a medical condition your insurance pays for. But if you are taking it to grow hair and billing the insurance company, you are committing fraud. An even greater danger is that the insurance companies now think you have an enlarged prostate, which means when your life insurance or health insurance comes up for renewal, you’re probably going pay a higher premium. If you are applying for new life insurance, you may be rejected.

HJI: So, there seem to be two issues; there’s the question of insurance fraud, because you’re using Finasteride for a different purpose to the one prescribed, and then you’re creating a false medical record that could come back and bite you.

DR. F: Yes, both of those things are true. If somebody ever questioned you after your insurance company had paid for the drug and you admitted, “Well, I’m really taking it for hair loss and not for enlarged prostate,” then you’re admitting to fraud. And your doctor would be a participant in that fraud.

HJI: What advice do you give your patients? (continued on pg. 15)

Minoxidil + Laser Works Better

Dr. Maria Angélica Muricy

Although the benefits of low level laser light therapy have impressed hair-management professionals and their clients/patients for several years, to date only one study has been completed to the satisfaction of the FDA, resulting in official clearance being given to market the HairMax LaserComb as a medical device able to grow hair. Now, a Brazilian clinic, the Muricy Clinic, has completed a new study that advances the understanding of photobiostimulation and suggests that laser therapy when used in conjunction with FDA approved topical drug Minoxidil produces a better hair growth result than either the topical drug or light therapy alone.

To learn more about this research, The Journal spoke with Dr. Maria Angélica Muricy, dermatologist and hair restoration

surgeon from Curitiba, Brazil. Dr. Muricy is member of the Sociedade Brasileira de Dermatologia; founding member of the Sociedade Brasileira de Restauração Capilar; member of the Sociedade de Cirurgia Dermatológica; member of the International Society of Hair Restoration Surgery; and graduated in Aesthetic Medicine at Universidade John Kennedy, in Buenos Aires, Argentina.

HJI: Dr. Muricy, your clinic has just completed a clinical study where you explored the benefits of using low level light therapy in combination with topical hair growth drugs. What were the conclusions?

MM: The data indicated that the laser improves the effectiveness of Minoxidil.

We saw that patients in the group that applied Minoxidil twice a day and also used a laser three times a week for 50 minutes, showed better results compared to people who used either Minoxidil alone or the laser alone.

HJI: Was this a formal study that followed established protocols?

MM: Yes, we tried to analyze the laser action on a cellular level, not simply counting hairs. We biopsied all the patients and tracked five markers. We wanted to understand what happens to the cell when it receives light energy.

HJI: There were men and women in the sample. Were the results the same for everyone?

MM: No, male baldness is different from female hair loss. Men can become totally bald; women’s always keep their hairline.

Women also suffer a more diffuse kind of thinning. We didn’t know what we would see in the study, but after analyzing the

numbers we could see that men experience a miniaturization of the hair, but a regimen combining laser treatment with Minoxidil, decreases apoptosis of the cell wall (apoptosis means, “cell death”). Interestingly, we saw that the main action of the drug was an anti-apoptotic effect on men - but the opposite effect on women. In our female sample, we saw that the treatment stimulated the proliferation of the cell. The hair grown was more the result of a proliferation of the cell.

HJI: What is the significance of this for a layperson reading this article?

MM: When you combine hair loss treatments, the result is going to be better.

HJI: Would the same thinking apply to patients following transplant surgery?

MM: There is no reason to believe the benefits would not be the same after surgery if the patient keeps using Minoxidil plus laser therapy.

HJI: The medical profession has been taking a wait-and-see attitude about laser therapy. Is your study going to change this?

MM: Yes, I think so. For the first time, we can say that the laser is doing something measurable. I think more studies will be done on this topic to prove that light therapy is indeed another valid treatment.

HJI: Is this where your research stops?

MM: No, we want to keep studying laser functionality and explore what happens to the hair shaft. In our last study, we could see that the quality of participants’ hair improved and looked thicker and healthier.

So, we are trying to figure out a way to prove that the hair diameter and the quality of the hair are better when you use the laser.

And of course, we will keep doing biopsies and other studies to better understand the action of the laser.

HJI

10 Hair Journal International Winter 2008 As I write this in the fall of 2008, not three miles from Wall Street, the stock market is fluctuating like a spastic belly dancer, the credit markets are still very tight, and recession looms, if it isn’t here already.

when it was here.

Steven DiManni

Naturally, when money gets tight, the first thing to eliminate is unnecessary expenditures like advertising, right?

Wrong.

Smart marketers know that when the economy slumps, it’s actually time to ratchet up their advertising in a reasonable and prudent manner. If this sounds counter-intuitive, it’s not.

It’s based on sound business acumen with a plethora of research to support it.

Ask Yourself These Questions Before we get to the research, ask yourself a few general questions about your business: first, do you plan to be in business in 2010?; second, do you think you’ll still have competitors in 2010?; finally, do you think men and women will continue to lose their hair no matter what the economy is like?

If you answered “yes” to any of the above, you have reason to advertise in 2009. And if you’ve answered “yes” to all three questions, you know you better advertise in 2009 if you want to survive the recession, and emerge from it robust and ready to capitalize on what you did

What the Research Says There have been a multitude of studies done after the “crash of ‘87”, and the recession of 1990-92. In each of these studies, major national advertisers’ spending was tracked, both before, during and after the recession.

These rates of expenditures were then compared to respective the advertisers’ sales and share of market before, during and after the recession.

The results were startling, and enlightening.

Want a Good

Reason to

Advertise

in 2009?

2010!

By Steven

Advertisers that cut their ad budgets during bad times saw substantial decreases in both sales and shares of market during recessionary periods.

Conversely, advertisers that either maintained or increased their budgets during bad times saw their sales and shares of market increase demonstrably-in most cases, in the double digits.

The Research “Surprise” What was most surprising, even to the marketing pundits, was what happened after the recessionary periods ended: companies that had cut their spending previously did not appreciable see gains in either sales or shares of market when they resumed after advertising times got good again—even with substantial increases in budgets.

Yet, the companies that had maintained or even increased expenditures during bad times not only DiManni emerged into the post-recessionary period in better shape than ever; their competitors, in almost every case, were never able to regain the sales/market share they had lost.

In essence, the landscape had changed forever and a paradigm shift had occurred, relegating the advertisers who had ceased to advertise to secondary status, while their (in many cases,

lesser and smaller) competitors gained substantial ground.

In an effort to further validate their findings, many of the research companies unearthed statistics from the recessions of the 1970s and discovered similar findings: companies that stayed the course, advertising-wise, gained significant ground on competitors who didn’t.

And most important, continued to maintain that lead, no matter how much the competition spent after the recession.

Why Is This So? In hindsight, it’s relatively easy to hypothesize why the researchers arrived at such “surprising” discoveries regarding recessionary advertising expenditures.

“Out of sight, out of mind” might be the best way to explain it.

Simply put, just because it’s a recession does not mean that consumers stop consuming. Yes, they might cut back in what they spend on every day purchases, such as paper towels or breakfast cereals. And yes, they might postpone larger purchases, such as consumer electronics or automobiles.

But at the end of the day, consumers still continue to buy. They also still continue to view media and process information. When a company’s message is no longer part of what they view, no one says, “Hey, whatever happened to the XYZ Company, I don’t see their ads anymore?” Instead, what they think, in essence, is nothing at all. They don’t see a company’s ads, so that company is no longer top of mind.

Instead, another company whose ads they do see takes the place of its predecessor in the consumer’s mindset.

What Does This Have to Do With a Hair Studio?

It would be very easy to say, “Yeah, there goes that Steve again, talking about these big national advertisers. But I’m a small local advertiser, what could this possibly have to do with me?”

First of all, consumers don’t differentiate between national advertisers and local advertisers when processing information. To them, it’s all information. Yes, they know the difference between a local aluminum siding company and a national manufacturer of laundry detergent. Each has its own place in the consumer’s mindset. But that has nothing to do with how each is regarded in its own respective business.

To really see how advertising impacts a hair studio during recessionary times, let’s go back to the three questions I asked at the beginning of this article, but this time in different order.

Will People Continue to Lose Their Hair?

Hair loss goes on, no matter what the economy’s condition. And yes, the life’s blood of any hair restoration studio is new business.

We all know that. We also all know that there is a normal amount of attrition in this business: clients leave, either to go somewhere else, or they decide to forego having their hair replaced entirely; so be it.

But we also must all remember that hair restoration is a “fluid” business. Just as there are people leaving the market, there are those who are entering it, recession or no. Yes, people are more price conscious and less likely to purchase high ticket items during a recession.

But there are also people who have good jobs and are not as affected by a recession as others. Then there are those who lose their jobs and are entering the job market for the first time in many years; these are people who might well consider hair restoration an investment in their careers.

Finally, there are people whose hair is so important to them that they would not be averse to doing something about their hair loss, no matter what the economic consequences.

So in all of the above cases, the question then becomes, “how will hair loss sufferers find their ways to your store if you don’t advertise?”

Do You Plan to Be in Business in 2010?

I’m assuming that most of you reading this would answer a resounding “yes” to the above question. The economy may be going south but you don’t plan to go anywhere. Good for you.

But if you don’t advertise in 2009, the situation could well become “bad for you”.

11 Hair Journal International Winter 2008

How to become a better Hair Extension Specialist!

Part II

ing her hair out. Don’t be afraid to try something new and step out of your box.

Never apply hair extensions that are straighter than your client’s natural hair. It’s too hard to blend and just doesn’t look Bobbi Russell right.

Do a good consultation. Be professional and discuss thoroughly the hair extension plan.

Go over pricing so there are no hidden fees.

Show quality photos of past work. Discuss care and removal details in the initial consultation (and don’t forget your forms.)

Take your time removing, please. Most damage to hair extensions occurs during the removal process.

Don’t give your work away! We pay a lot of money for our education. Charge what you are worth. Don’t sell yourself short.

By Bobbi Russell

I’ve just spent the last 2 weeks filling my head with more education classes; the New Image Conference in Ft. Lauderdale and a wig cutting class at the On-Rite Academy. I even had a chance to take a class from the General that was great! I am such a junkie! The longer I am in the hair addition industry, the harder it is to see something really new and exciting, but when I do, it’s like candy for my brain. I believe burnout only occurs when you stop learning.

I love sharing my discoveries with you. I hope the suggestions in my first article were helpful. Here are some more tips to help make your hair extension experience more pleasurable and successful.

The Bobbi Russell hot list for great hair extensions - these are a few of my favorite things!

Pureology Hydrate - shampoo and conditioner. My favorite!

Moroccan oil - This leave-in oil rocks! If you haven’t tried it, you should.

Mason Pearson Handy Hair Brush - This high-quality, natural bristle brush allows you to thoroughly brush from your scalp to the ends of the hair with out any fear of damage or loss of extensions.

Great Lengths Bonds - In my opinion, one of the most durable attachments on the market.

Spend some of that hard earned money on education! Stay informed. Do not get stuck in a rut. Things change, products change. Know and understand what your competition is doing. There is more education available now than in the history of hair extensions. Take advantage of it.

Find out about the types of hair that are available and understand the differences. Research is an amazing thing.

Use micros around the face and on the top layers of your extensions. And if you’re really adventurous, try doing a whole head of micros. It’s more work, but it’s worth it. The look is amazing, especially on your fine-hair clients. Keep in mind however, that micros are not recommended with certain products.

Try doing flatter bonds. After you roll and seal your bond, just flatten it a little. This technique works really well on someone with fine hair because it makes the strands flair out a little more than a rounded bond. I have found this technique really helpful when I’m not using a lot of hair.

When adding volume, start at the top and work down. This allows you to see your desired result as you are working.

Make sure that your client is using the products you recommend. I had someone ask me this weekend at a class what I do to get the tangles out. “What tangles?” I replied. I have no tangling issues in my studio. Using quality hair, shampoos and conditioners and great styling aids, really makes a difference in how long that hair feels and looks great. Along with a well-educated client of course.

Get creative and add hair for color and highlights. Create extreme lines. Adding some non-chemical highlights is really fun! Give your client a soft side bang while she’s grow-

No shedding, No sliding (when done correctly, of course.)

Hairdreams Special Hair- Love it!

Expensive, but worth it.

Balmaine’s Quick Remover Gun - For faster, more efficient removals of bonded extensions; and their curly hair is so nice!

Dreamcatchers links - They don’t slide.

Ultratress 2 - Quick easy and beautiful.

Bobbi Russell is a respected educator and hair extension specialist. Although she is usually on-stage sharing her own skills at seminars and workshops around the country, Bobbi can oftentimes be found in the audience, listening and learning from the experience of others. Bobbi Russell joined the Faculty of The National Hair Society earlier this year and this is the second of a series or HJI articles on women’s hair extensions.

12 Hair Journal International Winter 2008

Meet Pierre

Amelotte Founder and President of PAI Medical Group here have been tremendous changes in the hair restoration field since Founder and President Pierre Amelotte entered the business in 1975. Today, PAI has become one of the largest and most innovative hair-restoration corporations in North America with clinics offering a full range of hair management services including hair transplantation, hair additions, hair maintenance regimens and low level laser light treatment. The Hair Journal met with Pierre at the ISHRS conference in Montreal, Canada, a short distance from PAI’s international headquarters in Ottawa. The company’s US corporate offices are in Ogdensburg, New York.

T

HJI: PAI has just closed its financial year and I think you have some news to share with us…

PA: That’s right. Throughout much of this year, we’ve been working on a new business plan, and we’re excited to announce that Spara Capital Partners, a highly respected venture capital group, is now working with PAI to help grow our company in new directions. Spara provides customized investment and merchant banking solutions to owners of private businesses and we’re going to be collaborating closely with them as we go into an expansion and acquisition mode. We’re looking at acquiring up to 25 new facilities in the next five years and increasing our gross revenue to over $100 million.

HJI: Is this growth based on an expanding market, or will the market stay the same but PAI Medical become more dominant?

PA: It’s both. Over the years, I’ve attended many conferences and learned a lot. I see the industry growing in new ways - I see it adding more services; more ‘wellness’ support; more ‘anti-aging.’ These are areas we need to explore very seriously.

HJI: You’ve been reading our editorials…

PA: More and more scientists and doctors are recognizing the importance of the emotional and physical impact people are experiencing because of hair loss. But it goes beyond hair. They are also looking for answers to problems with other areas of their bodies and we know that we have the expertise and understanding to be able to help them.

HJI: Many businesses are struggling in these soft economic times, and yet PAI is bravely going where no medical group has gone before. What sets you apart?

PA: As with all successful companies, it is people who make it work. You can have a great product, but if you don’t have people who are motivated to move that product in the right direction, nothing is going to happen.

HJI: We’re at a medical conference where doctors are discussing surgical techniques, but you are using words like “wellness” and “body image.”

PA: The generation of people we’re dealing with today, the baby boomers, are growing older, but they don’t want to age. Yesterday’s 50 is today’s 30. And people in their 60s today have the vitality of yesterday’s 40. We have a lot of clients who are well into their 70s, and yet they feel and act much, much younger. They are looking after their bodies; they are looking after their health and they want our help to keep looking good.

HJI: Finding the right solution is not easy. If you Google “bald,” you’re going to be presented with about 20 million

solutions. How can a member of the public find what’s right for them?

PA: The first thing they should do is define exactly what it is that they want to achieve. Yes, every hair loss ad on Google promises beautiful hair in just 3 weeks or some such nonsense. So common sense has to play a role in making the right choice. People should ask lots of questions; ask for scientific studies; ask to speak with existing clients. Ask if the science has been reviewed and where it is available. Has it been approved by the FDA? If their questions are met with a big “DUH”, or a slick snake oil salesman, try another clinic.

“Everything revolves

around relationships.

When a relationship is built on trust, every-

one performs at their best; their pride and

honor are on the line.”

HJI: Is it a question of confidence in the doctor, or is money the deciding factor?

PA: We believe everything revolves around relationships.

When relationships are built on trust, everyone performs at their best; their pride and honor are on the line. Of course, when a client is investing money in his hair, they want to know, “...am I really going to get what I’m looking for?” And that’s a judgment call that can only be answered by a professional with experience and impeccable ethics.

HJI: What do you see is the future of the hair industry?

Where it all is headed… No pun intended!

PA: I see the hair industry moving in a very positive direction. We’re seeing a lot of companies doing advanced research. You’ve got major corporations starting to take a very serious look at this industry. And they’re recognizing the fact that we’ve only touched the tip of the iceberg – there are over 90 million men and women still suffering from hair loss! I have this gut feeling that the industry is going to grow to heights that will surprise people in the next 10 years.

HJI: How many clinics do you have at the moment?

PA: Internationally, we have 14 clinics; four in Canada, the rest in the US. The majority of our expansion will be in the US in the next three years.

HJI: Are there any cities where readers can anticipate a new PAI office in the near future?

PA: That’s a great question. Unfortunately, we have confidentiality agreements with the people that we’re working with, so we can’t identify locations at this time.

HJI: Are you also looking to expand the services you offer?

PA: Indeed, that’s the ‘anti-aging’ area of the industry. We believe that it will be a major part of carrying

this company forward.

HJI: If a doctor wanted to be a part of a group like PAI, is there an opportunity to join your network?

PA: We would be happy to meet with them to discuss their goals. Obviously, we have our own plans and we would have to ensure that our strategic planning is coherent with their goals. The one thing I’ve learned over the years is that all areas of business have to be win-win.

HJI: Is it possible for a doctor or someone leaving medical school, to successfully start her own hair transplant practice today? The cost of leads today is huge. Media coverage has become diffuse. Could a doctor go it alone?

PA: That’s a great question because I know the amount of money it requires to have a facility operate in such a way that it is going to return a positive cash flow. A physician starting out today would need deep pockets to sustain the business for the first few years. If he were limiting his practice to hair transplants alone, he would have a tough time.

HJI: There was a time when doctors could not advertise their services. As the public clamored for more information, Bosley pioneered new hair restoration marketing techniques. Now, PAI is a powerful advertising force itself. How important is the marketing and communications part of your operation?

PA: First of all let me say that the Bosley Group has been exceptionally good to highlight awareness about hair loss issues. They have been the pioneers, creating consumer awareness for our industry. Many doctors and companies providing hair transplants today have Bosley to thank for this.

HJI: To finish our discussion; some quick one-sentence replies…

PA: Sure.

HJI: Laser light therapy; does it work?

PA: Yes. HJI: Is it something a member of the public looking to stop further hair loss should consider?

PA: Without question.

HJI: Combining therapies - we see people having hair restoration surgery and taking Propecia at the same time.

Or taking Propecia, but also using Rogaine. Has the time come where people should be looking to combine solutions?

PA: Absolutely.

HJI: What advice would you give to somebody who is beginning to experience hair loss?

PA: Seek a reputable organization you can speak with openly without feeling you will be taken advantage of.

This is a highly personal business. You must feel comfortable with your physician.

HJI: You said the secret to PAI’s success is the people.

What is a “good” person?

PA: A “good” person is someone who has a positive mental attitude; one who understands that he or she must provide a solution that will fit the client’s needs today, balanced with changes required over a lifetime. Particularly when the patient comes to us at an early age.

HJI: Any final thoughts?

PA: The last thing I would like to say is that I’ve listened to a few people at the conference here who have said their numbers are down right now. I recognize that there are seasonal cycles in business. But in order for this industry to grow, people have to have the fortitude and belief to invest and market their services. Despite the economy, people will always want to replace their hair. Period. HJI

16 Hair Journal International Winter 2008

Lucinda Beaty 2008 BBB Torch Award Winner

OnRite Las Vegas Convention was No Mirage The On Rite Las Vegas Team: Steve Levy, Rhonda McCarthy, Christopher Miller, David Schwartz, Andrew Wright, Antonio Scavazzon, Rick Richardson, Doug Spike

Las Vegas, 10/08 - The OnRite Company of Ft. Lauderdale, FL held a marketing convention in Las Vegas at the Mirage Hotel on October 6th -7th, to which over 30 hair restoration studios sent representatives.

The purpose of the meeting was to unveil two new OnRite marketing initiatives, “Corrective Hair Solutions,” a broad-

Andy Wright addresses conference attendees

based studio branding program, and “Grow Your Hair,” a multi-therapeutic campaign. The conference also sought to educate attendees on recent industry developments, including the introduction of Internet based solutions to current marketing challenges.

OnRite Vice President of Sales and Marketing, Chris Miller, opened proceed-

Studio owners viewing new On Rite marketing materials

ings before passing the baton to Andrew Wright, OnRite President, who addressed client concerns about marketing hair to a changing audience that now includes women.

Rhonda McCarthy, OnRite Director of Business Development, then presented the “Corrective Hair Solutions” campaign,

Prescription the Easy Way! Trent Houg is an executive with CareScripts, a company that has developed an automated prescription program that will be of special interest to patients treating their hair loss with Propecia.

The Journal met with Mr. Houg and had the opportunity to view the CareScripts “nerve center,” a compact booth with an inter-active LCD screen that can be installed in a hair restoration clinic where patients could easily access it. As Trent explains below, once they check in with CareScripts, the rest is automatic.

We developed this kiosk to expedite the script

which allows studios to customize their marketing message and brand themselves through a variety of unique options. “We listened to what studios told us,” said McCarthy, “then developed a campaign that would help our partners run advertising that is uniquely their own.” Over twothirds of the audience signed up for the program.

After a presentation by Yvonne Marchese of Marchese Advertising that focused on her efforts on behalf of National Hair Centers, Michael Garcia of MG & Associates and OnRite Director of Marketing, Rick Richardson, discussed the role of the Internet in meeting today’s marketing challenges. “In less than ten years you will not be able to tell the difference between TV and the Internet; they are becoming one”, said Richardson. “What you do today to improve your Internet marketing will pay dividends for your business in the future.”

Studio owners & assoc. at the luncheon between meetings

After lunch, the “Grow Your Hair” multitherapeutic advertising campaign was introduced. This television effort is in effect a Reality-TV commercial that started with 12 men and women who wanted to grow their hair back through a combination of laser hair therapy and OnRite’s own Regen System with minoxidil, a topicalbased solution. “Who would grow the most hair in the least amount of time?” the commercial asked. Viewers were instructed to go to a particular website to find out, as well as to call a studio in their area to participate in a similar program. In addition to television commercials, the program consists of radio spots with quota from the participants, as well as print, web banners and collateral material.

from Rob Hoffman of Hair Line Clinic and T e r e s a Agustin f r o m Bachstin International on men’s and w o m e n ’s consultaAndy Wright with studio partners tions, respectively. The convention came to a close on Monday. Lisa Zimmerman of National Hair Centers in Phoenix discussed the viral marketing efforts she initiated on her studio’s behalf. She was followed by Debbie Summer who wowed the audience with testimony of her suffering with alopecia totalis and her life-changing decisions on how she would treat her hair loss. Kim Truitt, OnRite’s ethnic marketing consultant and trainer, concluded the convention with insights into serving the clientele in this unique market, one that the industry is just beginning to recognize.

Agnes Perellie of HairBuilders in Burlington, VT observed that this had been a marketing conference that delivered on what it promised: “This was not the same old stuff rehashed again and again”, commented Perellie. I’m leaving here very optimistic about the hair business’ future.”

Lucinda Beaty has received the coveted BBB Torch Award for Marketplace Excellence.

Presented annually, the Connecticut B e t t e r Business Bureau Torch Award for Marketplace Excellence honors businesses that demonstrate exceedingly high standards of behavior toward customers, employees, suppliers, shareholders and communities; adherence to truthful and honorable advertising and sales practices; and, an earned reputation for noteworthy contributions to their industries and the communities in which they do business. Lucinda was previously awarded the BBB Business Consumer Education Award in 2000 and 2002 and the Website Marketing Message Award in 2007.

Lucinda’s Hair specializes in medical and natural hair loss in women, men & children; including people suffering from alopecia or undergoing chemotherapy.

Flash Report Top Cosmetic Brand Goes Medical Irvine, CA. 10/08 - On October 15, 2008, Allergan and Clinique, the #1 prestige cosmetics brand in the United States, announced the nationwide availability of CLINIQUE MEDICAL. This new skin care line is scientifically designed and clinically proven to complement select in-office cosmetic procedures and is available only through skin care physicians' offices. Clinique Medical products care for skin’s heightened needs before and after non-surgical cosmetic procedures, including various laser treatments and chemical peels. Founded in 1950, Allergan, Inc., with headquarters in Irvine, CA, is a multispecialty health care company that discovers, develops and commercializes innovative pharmaceuticals, biologics and medical devices that enable people to live life to its greatest potential.

Hair Society Faculty Member Elected to Board of Day Spa Association & International Medical Spa Association

The day was rounded out by presentations

Andy Wright said that this convention was six months in the making. “We re-thought everything we had done in the past, and then started over. We sought out many studios to gain their impressions and needs and utilized their input to produce campaigns and proposals that will positively impact their businesses today and in the years to come.”

“What’s past is past”, concluded Wright.

“The business is now out there for the taking for those who recognize that we have to address today’s consumer on his and her own terms. It’s a very exciting time and I’m HJI happy to be part of it.”

Union City, NJ - Hannelore Leavy, Founder and Executive Director of both the Day Spa Association and the International Medical Spa Association has announced the new 2009 Board Members and Committee Chairpersons. Larry Oskin, advisor and faculty member of The National Hair Society joins the Day Spa Association (DSA) advisory board and the International Medical Spa Association (IMSA) advisory board: Larry Oskin is Chairperson of DSA & IMSA Media & Public Relations of Marketing Solutions in Fairfax, VA. The DSA and IMSA have once again been selected to provide the educational component for the annual Day Spa Expo & Business Forum to be held at the Las Vegas Convention Center on the weekend of March 15 to 17, 2009.

process for physicians and patients when they are checking out. Typically clients took a prescription from their physician to their local pharmacy and then waited for the medication to be prepared.

This was time-consuming and inconvenient. We thought there had to be an easier way. CareScripts recently developed a custom program for Bosley, a medical group that actually had dispensaries in many of their clinics, but it was still taking them too long to handle the paperwork, maintain inventory and provide prompt client service. So they asked us to devise a solution that would expedite the patient process and let them take the dispensaries out of in-house.

Our response was a hi-tech program that

“kiosked” the whole process. A client can literally walk over to the kiosk, slide their credit card and the system reads their name and shipping address.

They then press the product they want, and that’s it; they’re done. They hit “submit” and it charges their credit card and shoots a receipt out. The client then gets an email from us saying their product is being processed by the pharmacist and it’ll be shipped either today or tomorrow. If there’s no problem with the order, the pharmacist ships it out. The system then sends them another email that says their package is on its way and gives the tracking number, the carrier, FedEx or USPS - and the order arrives at their door.

To make renewals painless, we’ve automated them

as well. Patients can now enroll in our auto-ship program. With auto-ship, the medication is shipped to the client every 90 days. When a prescription is coming up for a refill, the system sends the client a reminder saying, “Would you like your medication sent to you?” If they don’t want it sent to them, they can call the customer service center and have it stopped automatically.

If they do want it, the system automatically sends it out.

As an added bonus, CareScripts also allows clinics and salons to communicate electronically with their patients via automated text and voice messaging to remind them of appointments and refills.

HJI

17 Hair Journal International Winter 2008

ABOUT US

What’s

Hair Journal International 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 Hair Journal International, a business newspaper. The National Hair Society is an educational, marketing and networking, professional support organization. The Group also provides consumer education via National Hair Broadcasting, a weekly broadcast show.

Selling Now? A Primer

Dawn Harrison

HAIR JOURNAL INTERNATIONAL

By Dawn Harrison

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.

What’s the buzz, tell me what’s happening?

My typical month is spent consulting with and servicing my retail studio clients, a few days teaching hands-on-classes and several hours coaching studio owners. The remainder of my month is spent designing new hair systems and discussing their feasibility with manufacturers, other industry leaders, educators, and sales staff.

Editor In Chief Christopher Webb cwebb@nationalhairjournal.com

Creative Director Avi Roth aroth@nationalhairjournal.com

What’s selling now? I need to be, “In the know.”

I often make it a point to ask “What’s Selling Now?” I’ve found taking casual surveys, is the best way to get up to the minute data on the best selling hair systems in their top selling colors. Because of this practice, I’ve gained a reputation for, “Being in the know.”

Technical Advisors Isaac Brakha Dr. Shelley Friedman Larry Oskin

I’ve done exactly what I was told to do; where is everyone?

For years, those of us catering to women have had a shared belief; “To offer a multi-optional program that meets all women’s needs, no matter how unique their hair situation.” We have been scrambling to attend educational conferences, build more retail shelves for more wigs, and buy every extension kit offered for fear we would miss out when an opportunity knocked. We have remained committed to dividing our marketing budget between Hair Replacement Systems, Wigs, Hair Extensions and Laser Hair Therapy. We’ve hired web builders, Search Engine Optimization experts and Public Relations agents, to broaden our appeal, brand our image, and increase community awareness. Where is everyone?

Contributing Correspondents

What will 75% of women buy from you in this economy?

Prior to 2006, most of our studios were accustomed to seeing sales percentages as follows: Wigs - 33%; Hair Extensions - 33%; Top Head Hair Replacement - 33% If you’ve compared 2005 to 2008 sales percentages, you’ve undoubtedly noticed some surprising changes over the past 6-36 months. Today, your sales spread sheet looks more like this: Wigs - 7%; Hair Extensions - 18%; Top Head Hair Replacement - 75%

HAIRLOSS NEWSMAKERS -Webcast

“Where are all the Wig and Hair Extension clients going? Why aren’t they buying from me?

As early as 4 years ago, I began noticing a slowdown in the wig business, despite the fact that we dramatically increased the size of our showroom, the number of days/hours we stayed open, and the number of sales consultants. We were getting dozens of lead calls, plenty of “show-ups” for consultations, but too few sales. The Internet was about to change our bottom line forever.

By 2007, the economic crisis coupled with the boom of new “wig distributor-direct to consumer” websites marched the synthetic wig business out our doors and confirmed the downward trend affecting our profit and loss statements. Because the typical extension client is a “fashion” (a.k.a. “want”) client who views her professionally-applied hair extensions as an overpriced designer accessory, she opts instead for the next best thing, a “knock off ” - a do-it-yourself brand of hair extension kit purchased at her local beauty supply for a fraction of the salon cost.

Prospective extension clients are not only no-showing for their consultations appointments; they have almost stopped calling altogether.

Dan Feely dan@danfeely.com

Are You Suggesting I shift my “Shot Gun” marketing / branding / search engine optimization to attract a more specific target?

Yes. As of the Third Quarter, 2008, sales and service income from women’s top head hair replacements has now exceeded 75% of all hair sold to women by licensed hair studio retailers. Today, female leads responding to your ads are predominately “Need” clients who are experiencing noticeable top of the head hair loss, most likely androgenetic alopecia and medically related hair loss. Naturalness, comfort, hair quality, fit, security, price, color and ease of home maintenance are their priorities - in that order. If you can deliver those things at a fair, median price, you’ll have no shortage of female clients.

Which Top Head Hair Replacements are clients buying? How much are they willing to spend? Where can I buy them? Will I still realize a profit?

On the following table, I will reveal the leading manufactures and their top selling Women’s Top of the Head Systems by name. I will also list the Wholesale Cost of Goods, Suggested Retail Price and Gross Profit $.

Note: The suggested retail price is based on a multiplication factor of between 2.5 and 9 times the cost of goods, 9x the least expensive hair systems & 2.5x on the most expensive. My goal with pricing is to realize approximately $700 - $1200 profit per system, depending on size and length of hair.

Top Selling Top of Head Hair

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

Mission - To deliver reliable, objective information to men and women who are concerned about their hair loss and want an unbiased perspective on the choices available to them.

Production Director Mike Ferreri mike@mfaudio.net

Sound Engineer Production Assistant Reggie Smith

NATIONAL HAIR SOCIETY *Personal note: I sell a fair amount of men’s top systems to my female clients with short, wavy and/or silver toned hair. They fit most women well and cover ? their head….. my price point is usually $795 - $895. *Note: All prices listed above are for Hair System/Cut-in/Consultation.

Attachment, color, relaxers, alterations & removal should be billed separately.

How will this Selective Target Marketing affect my Bottom Line?

Great News!

According to my latest data, the average cost of goods is about $350.

The average Suggested Retail Price is around $1350. That makes the average gross profit approximately $1000 per hair system. I’ve factored a total of 4 hours of your time spent with each client per sale, broken down like this: 1.5 hours for consulting and 2.5 hours for a cutin/style/care lesson appointment. When you divide your $1000 gross profit by 4 hours, your Return on Investment equals $250 per hour!

That is still far more than you can earn selling synthetic wigs or applying hair extensions these days.

Stop Worrying about the way it used to be….. We are still profitable, the phone is still ringing.

Start focusing on New Ways to initiate this paradigm shift.

• Replace your ad photos with pictures of top head thinning clients of all ages and ethnicities.

• Donate your synthetic wigs that aren’t selling to charities and get free publicity while doing it.

• Begin stocking up on the top systems mentioned above.

• Put new, close-up, before & after photos in your portfolio.

• Where a top system yourself.

• Make it a habit to ask for prospective clients’ email. At the face-toface consultation, take digital pictures of them wearing your beauti fully cut, colored, & styled “samples.” If they don’t buy from you that day, email the pictures to them with a Thank You note for showing up.

• Ask a local Dermatologist or Plastic Surgeon if you can demonstrate and give a top piece away as a raffle prize at their next “Meet the Experts” event.

• Update your manufacturers’ catalogues and color rings.

• Update your website with Top System features and benefits.

• Send an E-Blast to your client with pictures and spec’s of the systems listed here.

• Ask your manufacturers to mail you top head samples for you to review with a 15-30 day trial period.

• Each time you sell one top system - replace it and buy one more new sample with some of your remaining profit.

There is currently a significant amount of research and development going on in this arena, which I am proud to admit I’m a part of. New Base Materials, attachment options and integration capabilities are being introduced and test marketed. Hair Quality, edging, knotting and shedding issues are all being addressed.

My personal Thank You to Follea, New Concepts, Wig USA, Inc., International Hairgoods, Inc., and Jon Renau for including me in their research development & education pursuits in order to perfect women’s hair systems for future hair wearers and devoted studio retailers.

Old Chinese Proverb says “Ride the Horse in the Direction it’s Going” HJI

Mission - The Hair Society was created at the request of forward-looking hair-management specialists seeking educational and marketing support to grow their business. It connects manufacturers, distributors, retail salons and medical clinics and provides an ongoing network for crossmarketing and dialogue.

Membership Director Heather Simon hsimon@nationalhairjournal.com

NE Regional Director Catherine Ingoglia

CA Regional Director Edmarie Masters

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

ADVERTISING To place an advertisement or request a Media Kit, contact us at advertising@nationalhairjournal.com or call 1-951256-4385 LEGAL NOTICE Notice: Hair Journal International, Issue number 48 Copyright ©2008. All rights reserved.

While great care has been taken to ensure the accuracy of the information in Hair Journal International, 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. Hair Journal International accepts no responsibility for unsolicited materials. All materials in this issue are the property 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: Publisher, Hair Journal International, 39252 Winchester Rd., # 107-383, Murrieta, CA 92563.

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 events@nationalhairjournal.com Hair Journal International is published Quarterly.

Copyright © 2008. Single copies of most past issues of The National Hair Journal are available prepaid at $10.00 per copy. Special issues are more. Hair Journal International serves primarily the hair replacement , hair restoration and personal enhancement industries.

It sponsors conferences and trade events and produces analysis & marketing research on the hair replacement and restoration industries. Postmaster: Please send address changes to: Hair Journal International, LLC 39252 Winchester Rd., #107-383, Murrieta, CA 92563

18 Hair Journal International Winter 2008

Hair Society News www.nationalhairsociety.org

Happy Holidays www.nationalhairsociety.org Heather Simon

Greetings From Your Society Director – Welcome to the Winter edition’s coverage of The National Hair Society. I would like to thank all our dedicated members who support The Society and the industry. It was great to meet many of you this past year at the conferences. I look forward to seeing many more of you next year as well. Thank you for giving me the opportunity to learn and grow within this industry. I have learned a lot from all of you and will continue to address your concerns and questions within the industry. Have a great holiday season and a Happy New Year!

Society Year End Review- The Society had a good year despite the ups and downs in the economy. Your continued support helps maintain professionalism and ethical standards within this industry for everyone, so please continue to support this industry by maintaining membership. As most of you know, The Society Website has been one of my personal projects for members like you. I wanted to make the website a truly useful and valuable tool.

More changes will continue to take place and your comments and suggestions are appreciated. The Education Faculty Team that was created within the Society will continue to be an important asset in the New Year.

New Refer A Friend Program -As a Society member, you can become an Ambassador and refer other people to join The Society. Stay tuned for special benefits that will be announced in the January newsletter. Special prizes will be given away along with special discounts. Remember, this is your Society and the more people and information that is available, will help to create more opportunities for you and your business.

Don’t Miss Out! Start The New Year By Supporting The Industry- For those of you who are not yet members and have been reading the latest Society updates in The Journal over the past several years, you can take advantage of the great benefits that are available and start off the New Year right by supporting this great industry and Join The Society. More changes are taking place within the industry and you want to make sure you are following the correct standards especially when it comes to Laser Therapy.

The Society will provide ethical information for laser owners and those interested in adding laser therapy to their salon or studio through the Society’s Laser Network. Discounts to products, a business profile and access to The Society Website are just a few of the other benefits to membership. Integrity is key to your business and your clients. This is your industry and by joining The Society you are supporting your industry.

Please visit www.nationalhairsociety.org and visit the About Us section for detailed information. You can sign up through the website or please contact me at 951-571-3209 or via e-mail at hsimon@nationalhairjournal.com for more information. The New Year is a great time to start making changes.

Make the right change and Join The Society! You can post comments as a member and non member to the Society Blog through The Society Website on the homepage.

Say Hello To Our Latest Wholesale Society Members, Jon Renau and Easihair

Say Hello to Our Latest Retail Society Members, Lynn Wagner and Helena Gibson

Lynn Wagner

Helena Gibson

New Member Not Pictured: Jeana Beeman

19 Hair Journal International Winter 2008

I N T E RV I E W S W I T H O U R W O R L DW I D E M E M B E R S A N D AC RO S S T H E U S A News From Overseas - It is great to receive information from our overseas members and affiliates. They provide useful and valuable information about the trends that are happening in their country within the hair replacement industry. Gokhan Ormen from Turkey and Ane Rasch from Germany have provided information about their experiences within the industry.

Gokhan Ormen owner of Hair Design Centers a hair factory in Istanbul, Turkey, provided me with information about the recent developments taking place within his factory. About six years ago, Gokhan obtained a distributorship with a world well known brand of hair extensions.

Gokhan stated that most salons in Turkey were using high quality hair for years but mainly making extensions by silicon based old fashioned products.

Gokhan Ormen When Gokhan introduced an approach of keratin based products with new technology extension machines, the market reacted positively but complained about the hair quality. After he tested some other brands from European based companies, the results were the same. Almost all the salons in Turkey were asking for better quality hair. He analyzed the quality situa-

Hair Design Center

duces clip extensions and some hair pieces from the same quality of hair.

Gokhan stated there are several advantages for his hair products. The hair is very soft, strong and doesn’t tangle. The hair does not

Production Department

Gokhan And Chief Chemical Engineer

tion and then he decided to manufacture the hair the market was asking for. He started his hair factory and developed a special keratin and started processing the hair with a special technique. Gokhan’s brand is becoming very popular in Turkey. His hair factory also pro-

Ane Rasch owner of Haar Praxis Nord, Gmbh in Ahrensburg, Germany, recently sent me information about her experience as a hair replacement studio owner. Chris and I met Ane at the CyberWorld Conference in Scottsdale, AZ in March. 63 years ago, after World War II, Ane Rasch’s grandmother reopened her beauty salon in Hamburg, Germany. At that Ane Rasch time, clients who wanted a water wave or a perm had to bring their own briquette or coal in order to get their treatment with warm water. In the mid six-

need extra service and can be colored or bleached at the salon. The hair can also be used many years and the keratin is very strong and can last up to 9-12 months.

I would like to thank Gokhan for providing this information. Gokhan also owns a hair replacement studio. Please visit the website at www.hdc.com.tr or contact him via e-mail at cocom7@tnn.net.

Mr. Rasch developed the first wig and hair prosthetic studio in Hamburg. In the 80’s, Ane Rasch followed into the steps of her father and grandmother. Ane wanted to focus on training, quality and education.

Ane said, “everyone can sell a wig and put it on the client’s head, but to create a natural looking coiffure that belongs to the client is something different and is often still neglected.”

She has led the studio with up to 6 employees for more than 20 years. “Over the years it has become too much of a routine for me to repeat the training sessions and

News from USA features personal interviews with Lucinda Beaty from Lucinda’s Hair in Cheshire, CT and Suzanne Quinn from Suzanne’s Images in Naples, FL. Lucinda’s Hair, LLC located in Cheshire, CT is owned by Lucinda Beaty. Lucinda is well known throughout the industry. Her salon recently received the 2008 Business Better Bureau Torch Award in the State of Connecticut for marketplace excellence.

Lucinda has been active in the hair replacement indusLucinda Beaty try since the early 70’s. She has received many awards and accreditations and is involved in many organizations that help people suffering from hair loss.

Lucinda attended the University of Connecticut and received h e r Cosmetology license. She continued her education at the Advanced Cosmetology School from 1975-1985 to keep up with Lucinda Featured with her Client Amy the latest information to improve her salon and help her clientele. She has been a distributor and educator for Jerry Redding of Jhirmack, Focus 21, Nails Naturally, and Tony and Guy of London.

In 1997, Lucinda began producing and hosting a weekly cable program which airs each week and she continues to produce and host this program.

Lucinda is a Cyberhair dealer and promotes Amy’s Presence. Lucinda was featured with guest Amy Gibson from Amy’s Presence and James Britt from Alphalase International, LLC in April of 2008 who introduced low level light therapy to her salon.

Lucinda recently remodeled her salon. Lucinda’s Hair is a full service studio offering haircutting, coloring, highlighting, eye lash and hair extensions. Lucinda specializes in assisting people suffering from natural and medical hair loss. Her salon offers custom prostheses, hand made human European wigs, soft vacuum systems, integrations, top of the head pieces and the Amy’s Presence line. She also offers custom Cyberhair Micro-Point Solutions and Accents. Her salon

Private Women’s Station

has six new stations, four private rooms and a full retail center.

Private Hair Replacement Station

When Lucinda is not working, you will most likely see her on the slopes skiing and instructing at all the major ski resorts, scuba diving and driving her customized Harley Davidson motorcycle.

She has been featured in many charity rides with her motorcycle. Lucinda is an asset to the hair replacement industry and an inspiration to those in need of her services.

Open Salon Floor

I would like to thank Lucinda for sharing her experience in the hair replacement industry with Hair Journal International. For more information, please visit her salon’s website at www.lucindashair.com.

Suzanne Quinn is the owner of Suzanne’s Images in Naples, FL. I had the opportunity to meet Suzanne at the C y b e r wo r l d Conference in Orlando, FL in 2007 Suzanne Quinn and she was also an attendee at our Society Laser Expo in April 2007. She has been involved in hair replace-

Reception

staff members who help run the studio. The salon has many rooms available for the different services offered. For her laser therapy service the salon has a laser therapy treatment room available for the privacy of the clients.

Consulting Room

Ane Rasch, Auditor and Partner After ISO9001 Audit

ties, there was a wig and hairpiece boom and the salon, located centrally close to the Hamburg Central Station, saw the demand

teach the awareness for quality on a weekly basis. So last year, an inner voice told me to sell the studio and to open a new one all by myself. Thus I can focus much more on the needs of the clients and the responsibility for quality that is now lying in my hands,” said Ane.

ment in Florida for many years. She was instrumental in starting the “Look Good-Feel Better Program” in Naples, FL for over 16 years.

Ane received the ISO9001 quality award in February of this year and this underlines her concentration on excellence. Ane is running a much smaller business in terms of turnover now, and her clients appreciate the quietness and special attention that they receive. I would like to thank Ane for sharing her story. For more information about her salon, please visit the website at www.haarpraxis-nord.de.

Suzanne opened her studio 16 years ago and has expanded since then.

Suzanne’s Images services include, Micro Point Solutions, Amy’s Presence, laser therapy using the Anagen Alphalase LX40 and skin, massage and nail services. She has about 9

Waiting Room

for her hair accessories and wigs increased drastically. Ane Rasch’s father, the Junior partner in the salon at the time, decided to seize the opportunity and opened a wig corner in his mother’s beauty salon.

Lobby

Jeffrey Paul has been involved with image consulting for Suzanne. Suzanne’s salon was featured in Jeffrey Paul’s magazine “Renewing You”, the first edition. Her salon provides expert advice on coaching on hair, style and makeup and inner beauty in helping each client achieve their look.

Suzanne is a specialist in hair restoration offering different solutions to meet client’s needs. In addition, the salon has a team of stylists and experts to help her achieve their individual goals.

Hair Styling Station

I would like to thank Suzanne for sharing her business story with Hair Journal International.

Please visit the website at www.suzannesimage.com.

Stock or Custom?

20 Hair Journal International Winter 2008

The Best Choice

By James (“The General”) Toscano Stock or custom hair systems - this is an issue that has been debated forever. Some of you would only use custom systems, while others would use both stock and custom systems.

As I’m sure most of you know, I’ve always chosen to use more stock systems in my salon than custom systems. Why? I feel that stock systems are more consistent and the results are more consistent on the client. I know what to expect from the stock system when I install it on a client.

Keep in mind, the manufacturers - or should I say the ventilators - are used to

making stock systems rather than custom systems. Stock systems become second nature to them. I have close to 1,000 stock systems in my salon, in many colors and different bases. When I have a new client come in for a consultation, 95% of the time I am able to install new hair on him/her before they leave the salon. I’ve learned that if a client comes in for a consultation and has to wait 6 - 8 weeks for their new hair, they may change their mind and not return.

Of course, there are circumstances that warrant using a custom system before using a stock system. These factors include: color, hair density, wave/curl pattern, size and length of hair.

Matching your client’s hair color to a color on a color ring is, at times, impossible. In this case, you need to send in a sample of your client’s hair.

Make sure that you send a large enough sample. Too often, the sample is so small that it is next to impossible to match the color.

The density of your custom system is very crucial. If your client has very thin hair from temple to temple and in the nape area and you order a hair system with medium density, it definitely will not be “undetectable.”

To ensure a proper density match, you should use a hair

scope. Divide the hair and single out an area on the scalp - one square inch - and count the hairs in that particular inch. By using this method, you can determine the best density for the hair system to match your client’s existing hair.

Ever have trouble getting the right curl pattern? This, again, has always been a problem. While we can look at a client’s hair and determine what rod size - blue, pink, peach, etc. - we would use to achieve this pattern with a perm, the hair that is vented into your hair system is not permed in that manner. The hair is permed before being vented into the hair system. Look on your custom order form and you’ll see that the curl sizes are in millimeters. If your manufacturer has a wave pattern chart available, make sure you use it when determining the pattern you want to use for your client.

What base type will you use? Do you understand the difference between a 2gram skin and a 6-gram skin? Are you familiar with the different types of lace and monofilament material? If you aren’t familiar with the differences, you need to do some research. There are so many different types of skin and lace. Are you matching the color of the base with your client’s skin tone? This can really help make the hair system undetectable.

Contact your manufacturer to request a base material chart and a base material color guide.

There is an array of different knots.

Different knots serve different purposes and can determine the direction of the hair and the longevity of the hair system.

If you haven’t been doing all of these steps for your client when making a custom system, you really haven’t been designing the ultimate custom hair system. If you need help with any of the items, I would be

more than happy to help you create your custom hair system. Please contact me at: jamestoscano@mac.com.

As the holidays are now upon us, Linda and I would like to wish all of you a blessed Christmas and a New Year filled with love and prosperity.

Remember: it’s perfect.

Perfect isn’t perfect unless

James Toscano (“The General”), a Pennsylvania native, is an eighth-generation hair stylist. He graduated from barber school in 1968 and has been building his hair-management skills ever since. Always in high demand at industry events, he is a Technical Advisor to New Image University and Educational Development & Style Director for Spectrum Salon Systems of Nebraska. He also consults for Professional Hair Labs of Tampa, FL, assisting in the research and development of surgical-grade adhesives for the hair replacement industry. Jim maintains a 60hour workweek, but still finds the time to write a series of educational articles for HJI The National Hair Journal.

22 The National Hair Journal Winter 2008

New Image - 2008 Annual Conference Thriving in Bad and Good Times

eople may be busier than ever, and the economy may be soft, but that did not stop salon owners and managers from converging on Hollywood, Florida for New Image’s 2008 annual conference. And they didn’t only come from the East Coast; visitors flew in from France, Germany, Israel, and Hong Kong to name just a few countries on the other side of “the pond.” They weren’t disappointed either. The conference took place in the Diplomat Hotel, one of the most dramatic and luxurious resorts on the Florida coast. The weather cooperated too, and guests were able to walk on the beach and swim in the hotel’s infinity pool at the end of the day.

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The theme of the conference was “Thriving in Bad and Good Times” and a key part of the two days of meetings was devoted to identifying new profit centers. Of course, New Image’s top brass were all there: the alwaysyoung Les and Kae Martin, Tony Sciara, who jetted in from Hong Kong, David Lagadi,

DavidLagadi - Introductory Level Class

The Westin Diplomat Resort and Spa

Top educators, Gilberto Febles, Jimmy (“The General”) Toscano, Tom Scotti and Keith Zimmerman were on hand to share their expertise. Salon owner, Leonard Venti Jr. was

Left to right: Mike Montemurro, Gilberto Febles, Bridget Winton, Kristen Anderson, Keith Zimmerman. Not pictured: Tom Scotti, Leonard Venti, and Ricky Knowles. Front: Tony Sciara, President of New Image

Knowles shared their successes with inexpensive but effective marketing in the medical community. Bridget Winton disclosed the secrets of a natural lace front finish.

New profit centers - New areas of opportunity were reviewed; the medical market, the ethnic client, and Keratin Complex (a hair smoothing therapy by Peter Coppola) - plus New Image’s state of the art innovations, the ICON and Nx-Gen Designs (each with unique product features that are exclusively available from New Image), Secret Strands Platinum Loop ‘n Lock (100% human remy hair extensions), Expressions (machine made and half hand-tied synthetic wigs), and the new Diva Collection as promoted by top African-American actress, Bern Nadette Stanis, of the famed sitcom “Good Times.”

If New Image is committed to styling innovations and business development, it is also a company with a big heart! New Image is a proud supporter of Children with Hair Loss, a charity committed to, “Covering Young Heads to Heal Young Hearts.” Regina Villemure, and daughter, Christina Villemure were on hand to explain the mission of this unique charity and thank stylists and managers for their support.

In addition to new hair system designs and collections, New Image has also invested in several new technologies; Bruce Robertson presented ScanHair, a new imaging solution specially prepared for the hair replacement industry. By capturing high-quality images of hair, it can assist with custom sales promotions, therapy programs and product recommendations. New Image is also proud of its online ordering system, Web Order Central, which provides a one-stop design, ordering, and tracking system, complete with detailed management reports.

NeilDucoff - No Compromise Leadership

Bruce Robertson, and hair-tech guru, Oscar Urzola. Guests were delighted to see several other friends again, including Mike Montemurro.

also there to explain “E-Marketing,” and popular writer and educator, Neil Ducoff, presented the powerful concept of “No Compromise Leadership.” Kristin Anderson and Ricky

Regina Villemure

Christina Villemure

On Sunday evening, New Image hosted a lavish dinner-dance giving everyone a chance to network, talk with the educators and make new friends. After an awards ceremony that recognized the achievements of New Image customers and staff, the company repeated its commitment to the hair replacement industry and pledged to continue its program of product and marketing innovation so New Image clients would be sure to have new profit opportuHJI nities in 2009.

AHLC Dirctors, Peggy Thornhill & Betty Ann Bugden

The three Cut-In Competition Groups