Professional Support

Article Published in Stylist Magazine, January 2013

What makes us “professional?” In the broadest sense, anyone working in the beauty industry could be considered “professional,” including those who are not licensed, competent, ethical, legitimate or financially successful. Is being all of those things too much to expect of a “beauty professional?” We all know examples of talented, hard-working individuals who can’t support themselves, and others who do well for themselves, but work illegally. How do we reconcile ourselves to a concept that divides us, the concept of being professional?

Consider the efforts of the Professional Beauty Association (PBA), our industry’s largest trade association. Earlier this year, the PBA invited all beauty professionals to “Take the Pledge” and commit to a code of ethical practices. Each PBA membership section (Salon Owners, Licensed Professionals, Manufacturers and Distributors) has its own code online to “print, sign and display (press release dated July 6, 2012). If not already a member of the PBA, you may have missed this invitation to “Take the Pledge,” but it’s available to you “regardless of membership.”

For most readers, the applicable code would be either for Salon Owners or Licensed Professionals. This statement precedes each one: “In order to ensure and promote integrity in the professional beauty industry, PBA expects all members of the [insert section name here] section to abide by the standards which are reflected in this Code of Ethical Practice.” As might be expected, there’s significant overlap between the codes for salon owners and licensed professionals, with minor wording variations:

Provide high quality professional beauty products and services to the consumer.
Keep licensing and/or registration current as required by federal, state, and local authorities.
Keep insurance current as required by federal, state, and local authorities.
Accurately report tips and income as required by federal, state, and local authorities.
Only use professional products and not divert products.
Promote ethical pricing on products and services.
Make all advertising and sales promotions factually accurate.

Additionally, Salon Owners pledge to:

• Promote positive awareness about the beauty industry.
• Subscribe to and follow accountabilities standards.

Only employ licensed professionals when licensing is required to perform job function.”

And Licensed Professionals also pledge to:

• Follow safety and sanitation guidelines.
• Follow tax accountabilities.

As a salon owner, licensed professional and PBA member, I understand the PBA’s intent to “create a uniform standard in the way we view and act as an industry.” And I don’t disagree with what’s included in the codes. In fact, my initial reaction was “I’m already doing these things.” However, after careful consideration, I chose not to sign the pledge. In my opinion, it’s meaningless. This pledge wouldn’t change my behavior, or make me any more “professional.” Violating it does not carry any more consequences than signing it does.

What good does it do to pledge to follow laws and guidelines if you don’t know what they are? Beauty professionals don’t lack commitment, they lack information. I’ve supported the PBA for years, and especially appreciate its Nail Manufacturer Council on Safety (NMC). Scientific information from this trusted source benefits both the nail industry and consumers, and I reference it often. Even if the NMC were the only function of the PBA, it would make my membership worthwhile. Yet, I have a difficult time convincing other salon owners and licensees to join this organization. Why is that?

Granted, the impact and appeal of the PBA would be greater if there were national standards, testing and licensure, but that’s not the case. Our individual concerns tend to be more immediate because most of us work at the local level, regulated by our respective state governments. And at the federal level, where laws affect all of us, we don’t support each other and our industry as we should, especially with regard to legal compensation of employees and our tax obligations.

With all due respect, the PBA’s ongoing efforts to lobby Congress to pass The Small Business Tax Equalization and Compliance Act (SB974/HR195, also known as  the FICA Tip Tax Credit), have not yet been successful. To its credit, the PBA does an excellent job of explaining its position that salon owners should not be responsible for paying taxes (7.65%) on tip income paid to service providers by consumers. Twenty years ago, the lobbying efforts of the National Restaurant Association resulted in a federal dollar-for-dollar tax credit for restaurant owners, known as section 45B of the Internal Revenue Code. However, that credit does not apply to salon owners and their employees, no matter how comparable the industries.

The proposed legislation is fundamentally fair and logically sound, but how many within the beauty industry even know about it? Sadly, even if they knew, I’m sure that many would think it’s not their problem. This legislation doesn’t directly affect manufacturers or distributors; their employees don’t collect tips. And let’s be real: many licensed professionals don’t report their tip income, and many salon owners don’t take financial responsibility for their workers as employees (although if audited, the IRS would categorize them as such). So we’re left with the PBA and salon owners who follow the law and pay their employment taxes fighting for this legislation? That’s not very encouraging, and apparently not enough. It’s time we come together as professionals for the better of our industry; we need each other’s support.

By Jaime Schrabeck, Ph.D.

Maintaining Balance through Action

Article Published in Stylist Magazine, December 2012

It’s common to use action terms to describe people’s progress through life: “moving up,” “going downhill,” “running in place” or “stuck in neutral.” But to quote Albert Einstein, “Life is like riding a bicycle. To keep your balance, you must keep moving.” I couldn’t agree more. Personally, I equate balance with happiness, deriving satisfaction from a sense of stability. As a goal to be achieved, balance can be elusive, temporary and easily disrupted. However, as a way of being, something to be maintained, balance gives me the power to manage my life, especially when circumstances change.

Balance isn’t something I can easily quantify, but I can gauge the quality of  my health (physical, mental and emotional), personal relationships, business, finances, etc. Though far from perfect, I’m doing well; sometimes I need distance from my daily life to appreciate that. Distance can be literal or figurative. Just last month, it was both as I headed to South Korea to attend the Seoul International Nail Fair. Traveling alone, I anticipated having many hours to myself, time I expected to spend writing this article, doing research, sleeping more . . . For the next three days, I didn’t work on clients, help my son with homework, run errands, pay bills, do housework or prepare meals. Instead, I was treated like a VIP*, and stayed in a luxury hotel, judged nail competitions, presented awards and dined out every night. Aside from interacting with my Korean nail friends and experiencing their culture, the fact that I had few responsibilities and virtually no control was very appealing.

The weeks, even the hours, leading up to my trip were hectic, but that’s not unusual nor a bad thing. It’s amazing how much you can accomplish when necessary. I’m accustomed to working and living at a quickened pace, given all that I have to do and choose to do. The momentum sustains me, and I find my balance somewhere between feeling bored and useless, and overwhelmed and used, tending toward the latter. I consider myself organized, resourceful and optimistic, but even I have my limits. Whenever I dread something or start feeling overwhelmed, it’s time to evaluate, prioritize and act accordingly. In some instances, that means saying, “That doesn’t work for me,” without explanation or apology, as suggested by a very wise client. From past experience, I know that taking on more than I can manage threatens my well-being, and that’s not acceptable.

Despite advance planning and timely actions, something unexpected can, and usually does, happen. For example, the morning of my trip, I allowed an extra hour of drive time to account for commuters, but hadn’t accounted for rainy weather conditions. Traffic was very heavy and the navigation system only made it seem worse as the remaining miles slowly counted down. Thankfully, I arrived at the parking structure on schedule, took the shuttle to the international terminal (the first stop, thank goodness) and made it through security with a few minutes to spare. Crisis averted. Moments before boarding, I checked my email one last time and learned that I’d be taking a taxi to the hotel. No worries, that’s why I carry American Express. In previous visits, I would board the plane trusting that my nail friends would greet me when I landed. This time, I trusted a complete stranger to drive me, and American Express to approve his payment, even though I’d neglected to alert the credit card company of my travel plans.

The rest of the weekend was uneventful, but didn’t go exactly as planned. In my free time, I watched far too much television and slept very little instead of writing this article. I rationalized my procrastination with the excuse that I wasn’t prepared to write it; I needed more time to think about how balance functions in my life. Really? My life wouldn’t function without it. Most people talk about balancing family, work and their other interests as if they were distinct and isolated. Perhaps they are. For me, balance comes from integration. Though I’m sole owner of my business, my family plays a large part. My parents, who live nearby, donated their skills to help me build the salon and they have standing nail appointments. We frequently share errands, Sunday dinners, sporting events and school functions with the grandchildren. My younger sister has been one of my employees since she became a licensed manicurist five years ago. We also share a household, combining our resources to raise our respective families. My teenage son spends time at the salon, understands my business and enjoys attending beauty shows. I can also connect community involvement, my primary activity outside the beauty industry, to my family and business through facilitation, sponsorships and donations. As much as I enjoyed myself in Seoul that weekend, I was excited to return home. Not only did I miss my family, I missed my work, even the mundane and repetitive tasks that I probably should delegate.

*Special thanks to Ok Hee Cho, my dear friend and Chairman of the Korea Nail Association, for being a wonderful hostess.

By Jaime Schrabeck, Ph.D.

Upscale Your Retail

Article Published in Stylist Magazine, November 2012

Given all the products necessary to provide nail services in your salon, it only makes sense that your clients would need at least some products to care for their nails between appointments. For example, would you rather have your clients remove a hangnail with their teeth, or with cuticle nippers? Would you rather have them buy a cheap pair at the drugstore, or your favorite brand directly from you? Many professional nail products would be appropriate and profitable to retail, yet most salons limit themselves to retailing a predictable and inexpensive few, like cuticle oil. As the holiday season fast approaches, it’s the ideal time to upscale your retail with professional nail products.

Please note that before retailing anything, you need to obtain the proper licensing as required by your state government. As a California business owner, I have a seller’s permit from the Board of Equalization (BOE), and must collect 7.25% sales tax (the rate varies throughout the state). Every quarter, I use the BOE’s convenient electronic/online services to file a return and make a payment based on my sales activity. Check with your state to ensure your compliance; all the information should be available online.

One of the benefits of being a licensed manicurist/nail technician is access to a great variety of professional nail products: from disposable items like nail files and buffers, to consumable items like lotion and polish, to more permanent equipment like metal tools and paraffin warmers. I choose products based on various factors (quality, price, convenience, availability, exclusivity, technical support, customer service, etc.) and spend accordingly. In fact, many of my colleagues would say they spend and accumulate too much (“product junkies”). Clients make choices based on the same factors and can have the same propensity for (over)spending, though fewer options. Ideally, your salon should be their best and most trusted source for quality nail products.

In a past article, Converting Retail Customers Into Loyal Clients (Stylist, December 2011), I described in more detail how retailing professional nail products satisfies the needs of existing clients and attracts new ones. Your product should be displayed prominently in a clean and organized way; if possible, use marketing materials and signage supplied by the manufacturer. Pricing should be competitive; generally, I use the manufacturer’s “salon price.” The selection of retail products at Precision Nails remains fairly consistent throughout the year; I make room for new products, like seasonal polish collections, by eliminating discontinued or less popular ones. The quantity on hand can vary depending on the season; for example, I tend to stock more Havaianas (rubber flip-flops) during the summer when more tourists visit.

While some salon owners fill their shelves with retail items that have nothing to do with nails (candles, jewelry, etc.), especially for the holidays, I do not. My business is a nail salon, not a gift store or flea market. That being said, professional nail products make great gifts. They can be personal, thoughtful and practical: both affordable and trendy like polish, or more expensive and permanent like cobalt stainless nail trimmers. Gift cards for a specific dollar amount are another option for clients who want to give someone else the power to choose between your services and/or products. I’ve set a minimum of $25 to cover the costs of the card and its packaging. Salon management software makes tracking easy.

Understandably, investing in retail can be expensive; however, if you focus on products you already use, they should be more manageable and easier to promote. Partner with your suppliers and order quantities that ensure bulk/discounted pricing. For example, I purchase unscented exfoliating scrub and massage lotion in 2-gallon bulk containers from which 3/4-ounce portion cups are filled for use later during services. Not only does this give me the best pricing and quantity control, it eliminates cross-contamination. When clients comment on how smooth their skin feels afterwards, we mention that the same products are packaged by the manufacturer for retail, both unscented and scented. I currently stock and display six different scents of the retail-sized shower gel, exfoliating scrub, body butter and massage lotion, with a minimum of three each. Clients can select their favorite scent(s) by sampling the lotions (8 ounce with pump dispenser) labeled as “testers.”

Some final thoughts:

• Use your favorite brands/products during services and they will virtually sell themselves. Your services are like a paid product demonstration, minus the sales pitch.
• Adjust your retail offerings according to demand, but don’t feel obligated to sell everything you use, or a brand/product you don’t. For example, I don’t sell the products/equipment related to gel enhancements.
• Rather than discount your services (your time), reward clients by offering free product. The perceived value is greater than your actual cost, and it may lead to future product sales.

By Jaime Schrabeck, Ph.D.