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Spring 2005

An Update for Members of the Professional Beauty Association

Event Spotlight

Be Heard in
JULY 24-26, 2005
LAS VEGAS Washington, DC
see inside Independent salon and spa owners,

distribution sales personnel, manufacturers

and industry leaders need a voice in

Inside this Issue
Washington, D.C.

Your Governing Council Without a voice,

there is no representation.
A Letter from the PBA Chair
Without representation, there is no one

PBA Spotlight Event: looking out for your best interest. But
Cosmoprof North America rest assured, PBA is forging forward to

PBA Introduces the be your advocate and representative on

National Industry Profile Capitol Hill. From nail manufacturer issues
and Pocket Guide
to Department of Labor regulations to the

PBA Bookstore Salon & Spa Section’s Small Business

Tax Equalization & Compliance Act, PBA

Members for Marketing is tracking, supporting and fighting key
issues while furthering current initiatives.

PBA Advocacy & For more information, please see inside.

Government Affairs

PBA Leadership Councils

PBA Featured Benefit


PBA Events
Governing Council
The Post-Merger PBA: Getting Down to Business
The past year has been rife with change as the former Beauty & Barber Supply Institute (BBSI),
American Beauty Association (ABA) and The Salon Association (TSA) became the Professional
Beauty Association (PBA). I want to personally thank you, our members and industry partners, for
your patience during recent months as we took some rather bold steps to shape and strengthen the
organization. As a result of this merger, our collective association has many new opportunities.
Melissa William
Yamaguchi Ranney
Chair Chair-Elect Ultimately, our mission remains the same: to provide resources, education, ideas and advocacy
to enhance the power and performance of the professional beauty community. As a result of
our new relationship, we believe we are better positioned to carry out that mission—to meet the
diverse needs of our members and better serve the entire community as we confront current
and future challenges.

We will gain from greater support and emphasis on:

Tom Clifford Lee Rizzuto, Jr. • Advocacy & Government Affairs. Take the time to examine the victories outlined in this
Secretary- Vice-Chair newsletter. If numbers is the name of the game in Washington, then we stand a greater
chance of being heard with clarity. Of the concerns that affect one of us, the end result
will benefit us all.
• Public Relations & Image Building. Focusing on PR will surely enable us to aggressively
drive the message of our importance.
• Research & Statistics. Our recently launched National Salon Industry Profile and Fact
Guide are welcome additions to our current offerings. And there are more to come!

In addition to these gains, one of the most important gains is that of the administrative staff. For
Bill Gray George 2/3 of the associations’ memberships and boards, the relationship is favorably strengthened. The
Schaeffer newest addition to our group gains from the vast knowledge and professionalism this staff brings.

How do we as an association benefit from our members? We benefit from impassioned,

involved people wanting to make a difference. Lip service doesn’t work. Opinions from the
backseat don’t count. What does count is your voice. What does work is your involvement.
What matters is what you think and what you do. This year will present us with an awesome
task: to raise the bar and put our money where our mouths are. We can make this industry a
better one. After all, it is OUR industry.

Jon Sasha Rash I challenge you to become engaged. I urge you to join a committee. I invite you to share your
Shakour ideas with your section’s leadership council or with the governing council members listed
to the left. To find out how, contact Member Services at 800-468-2274 (480-281-0424). We
represent YOU. We work for YOU. Arm us with the proper tools to make the best decisions for
YOU and then hold us to it.

PBA has gained a good deal of positive momentum during the past seven months since the
inception and we are already building on that progress in 2005. We encourage you to continue to
let us know what we are doing well and what we need to improve on moving forward. Please read
on to see what you can expect in 2005 from PBA—and thank you for your continued support.
Frank Zona
I am greatly honored to serve for you,

Have something you’d like to see covered in

upcoming issues of PBA Progress?
Melissa Yamaguchi
Call 800-468-2274 x134 or
Chair, Professional Beauty Association (PBA)

Professional Beauty Association The Professional Beauty Association (PBA) is a non-

PBA Progress 15825 North 71st Street, Suite 100
Scottsdale, Arizona 85254
profit trade association that represents the interests of
the professional beauty industry from manufacturers
(Spring 2005)
is a publication of 800-468-2274 (480-281-0424) and distributors to salons and spas. Created when
the Professional Beauty Association. Fax: 480-905-0708 BBSI, ABA and TSA joined forces in July 2004, PBA serves the industry with education, government advocacy, commerce opportunities, research/
statistics and public relations/image building.
July 24-26, 2005
Mandalay Bay Keynote
Convention Center Speakers
Las Vegas
The international beauty community
converges at Cosmoprof North America!
Martin Lindstrom
Discover new products and companies Brand Sense
Strengthen existing relationships
Educate yourself and your team
Develop your year-long strategy Jane Buckingham
Brand your company Youth Intelligence

Dr. Francesco Morace

Body Visions

The PBA/Cosmoprof North America Relationship

Tim Sanders
Cosmoprof North America is produced by North American Beauty Events (NABE). NABE is a joint venture The Likeability Factor
of the Professional Beauty Association (PBA), the industry’s representative in North America, and IFI, the
producer of Cosmoprof events around the world, including in Italy, Russia, Hong Kong and Brazil. Cosmoprof
North America contributes extraordinarily valuable commerce and business education opportunities to PBA’s
membership of manufacturers, distributors and salon/spa owners. Thus, the show plays an important role in
Barry Maher
supporting two of PBA’s five core competencies, which are summarized as PACER: Public Relations/Image
Filling the Glass
Building, Advocacy/Government Affairs, Commerce Opportunities, Education and Research/Statistics.
for Salespeople
L e a rn more at sm op ro f n or t h am e ri c a . c om

Exhibition Overview
Cosmoprof North America offers:
Special Events
• Four separate business-to-business pavilions that allow distributors, buyers, OTC’s, importers/exporters,
Get-Together Party
international sales agents, salon/spa owners and wellness professionals to see the latest in hair care,
The place to be seen as Cosmoprof North America
skin care, cosmetics, nails, spa, product development and packaging:
kicks off.
Pavilion A – Cosmetics & Personal Care
Pavilion B – Packaging, Contract Manufacturing & Private Label Wellness Summit
In-depth Wellness Summit hosted by Geno
Pavilion C – Wellness & Spa
Stampora presents Zone Diet creator Dr. Barry
Pavilion D – Professional Hair, Nail & Tools Sears, star health advisor Oz Garcia and others

• Over 700 exhibitors from 30 countries occupying 19,000 square meters net of exhibition space
in the luxurious Mandalay Bay Convention Center
• Over 25,000 domestic and international visitors
• An extensive marketing campaign designed to attract buyers through advertising, media
partnerships, direct mail and unique pre-show marketing materials provided to all exhibitors
• World-class education and seminars for manufacturers, distributors and salon/spa owners Dr. Barry Sears Oz Garcia Geno Stampora
• Unrivaled domestic and international press coverage
North American Hairstyling Awards
Did you know? Honors top stylists and celebrates the artistry of our
PBA members receive two complimentary registrations to Cosmoprof North America plus 50% off additional industry.
registrations! Register today at or call 877.557.5340 (972.349.5858). Use
your member ID number when you register. It is located on the mailing label. PBA Business Breakfast
Join your fellow PBA members for an association
Need to reserve your hotel rooms? update and hear from keynote speaker Tim Sanders.
Reservations for the Cosmoprof North America headquarter hotel, Mandalay Bay, and other Las Vegas hotels
can be made by contacting our housing company at 800.826.8133 (310.590.4713). City of Hope - Spirit of Life Award Dinner
This year’s honorees are Emmet and Beth Hickey.
Interested in exhibiting at Cosmoprof North America? For more information, please contact Tracy Lucco at
Reserve exhibit space by contacting Tony Quist at or call 800.468.2274 847.583.8600 x13 or email
(480.281.0424) x125.
Introducing the
84% of salon-industry
National Salon/Spa employees are women
Industry Profile
and Pocket Guide

PBA’s Salon & Spa Section (TSA) commissioned an • There are over 754,000 salon/spa professionals
economist to develop an economic profile, creating— in the United States.
for the first time ever—a salon-specific description
of the industry’s impact on the nation’s economy.
• A diverse workforce is a hallmark of the salon
All data was sourced through the U.S. Department
industry. 14% of salon-industry employees
of Labor and the Census Bureau. Highlights of the
are African American, compared to a national
profile include the following findings: • Non-supervisory employees in the salon industry
average of 11%. 11% of salon-industry
earned an average of $11.75 per hour in 2003,
employees are Asian, compared to just 4%
• There are more than 655,000 salon-industry excluding tips. In comparison, non-supervisory
of the overall U.S. workforce. 11% of salon-
establishments in the United States. employees in the overall private sector earned
industry employees are of Hispanic origin,
an average of $15.35 per hour in 2003.
• The vast majority of salon-industry slightly below the national average of 13%.
establishments are small businesses, in • Since 1990, average hourly earnings of
• 84% of salon-industry employees are women,
terms of annual sales volume. 51% of salon-industry employees have risen steadily.
compared to 47% of employees in the overall
salon-industry establishments (with payroll The average of $11.75 per hour earned by
U.S. workforce.
employees) have annual sales of less than non-supervisory employees in the salon
$100,000, while 84% of establishments have industry in 2003 represented a strong 67% • Average daily sales are $80 million.
annual sales of less than $250,000. increase above the $7.03 earned in 1990.
In comparison, the average hourly earnings To request your copy of the National Salon Industry
• 46% of all individuals in the salon industry of non-supervisory employees in the overall Profile or Fact Guide, call 800-468-2274 (480-281-
are self-employed. private sector increased at a lower 51% rate 0424) or email
between 1990 and 2003.

Bookstore – Three Must-Reads

Marketing Retail Distributor
Recommendation Recommendation Recommendation
Free Prize Inside Trading Up: The New American Luxury Distribution Software Guide
By Seth Godin By Michael Silverstein and Neil Fiske By Brown Smith Wallace Consulting Group

Purple Cow was the #1 bestselling marketing This is a fascinating look at why millions of The Distributor Software
book on Amazon in 2003. Now Seth Godin is back consumers are “trading up” to premium goods and Guide assists distributors
with practical advice on how to “make something how companies can profit from this phenomenon. with software selection
happen.” Free Prize Inside is a fun guide to doing Middle-market consumers have more discretionary and technology
innovative marketing that works when the traditional income than ever before. Consumers are looking for evaluation projects. This
approaches have all stopped working. You don’t emotional engagement—they look to products to one-of-a-kind guide
have to spend a fortune to create something help them manage the stresses of everyday life and provides independently
cool that virtually sells itself. to help them realize their aspirations. A new luxury researched information
Free Prize Inside teaches good may be as simple as shampoo ($9 from Aveda about distribution-
you how to create versus $3 from Suave), which brings moments of centric solutions
blockbuster marketing comfort and sensual pleasure. Or it may be as that focus on the
at your own company complex as a car ($26,000 for a bottom-of-the-line operational issues
without a bunch of MBA- Mercedes versus $20,000 for a Pontiac), which that drive distribution
brainwashed marketers. delivers feelings of safety and excitement. companies today.
You don’t have to be a
All PBA members get full access, at no cost, to
genius—you just need Trading Up explores what’s driving this move to
the information as part of their membership dues.
curiosity, initiative premium goods, tells the inside stories of many
With more than 40 different trade associations
and a strategy for “New Luxury” companies and their leaders, and
endorsing and distributing it, the guide compares
overcoming resistance offers insights and methods that can help the reader
software solutions in a common format. The
when you champion take advantage of this remarkable phenomenon.
guide seeks to help eliminate six-figure software-
your idea.
selection mistakes by following a proven software
To order, visit
selection methodology.
To order, visit bookstore or call 800-468-2274 (480-281-0424).
bookstore or call 800-468-2274 (480-281-0424). Email to request
To request your complimentary copy,
Email to request a a full sales list that can be faxed in.
call PBA at 800-468-2274 (480-281-0424)
full sales list that can be faxed in.
or email
ABBIES Honors Skin & Body Distributors
PBA Members Care/Cosmetics
(In-Salon Use or Retail) Best Distributor
for Marketing In-Salon Education Program
Pivot Point International, Inc.
Excellence Best Product Marketing
Depasquale / Avancé – Cares to Go
– Design Forum 275 – Retrospect
– Sinus Relief and Bathing Rituals
Best Distributor Catalog
Columbia Beauty Supply
Best Product Packaging
Recognizing innovation, creativity and – CBS Corporate Brochure
Dermalogica – Daily Resurfacer

overall excellence in marketing for Best Print Advertisement

in Industry Publication Salons & Spas
the professional beauty industry, PBA Depasquale / Avancé – Avancé Spa Asia Ad
Best Salon/Spa Corporate Image
honored its member companies at the Best Merchandising Display Robert Andrew – The Salon & Spa
Sebastian International –
Trucco Best Sellers Display Best Salon/Spa Retail Promotion
9th annual ABBIES (America’s Best
Stuart Laurence Salon, Inc.

Beauty Industry Efforts for Salons) on Nail Care – Melissa, Get the Wagon!
(In-Salon Use or Retail)
February 5, 2005 at the Renaissance Publications
Best Product Marketing
Creative Nail Design – Brisa Gels Best Editorial Feature
Hotel in Long Beach, CA. in an Industry Publication
Best Product Packaging Allured Publishing – “Starting from Scratch”
Creative Nail Design – Brisa Gels Skin Inc. Series May/June/July/August 2004

Best Print Advertisement Best Cover

in Industry Publication Bobit Publishing – Nails Magazine January 2004
Creative Nail Design – Brisa Gels Insert

Best Merchandising Display All Entrants

Creative Nail Design – Spring 2004 Dig
Enamel Collection & Dig Enamel Pinkies Collection
Best Industry Website –

Congratulations to this Equipment & Tools Best Professional

year’s winners! (In-Salon Use or Retail) Public Relations Campaign
OPI Products, Inc. – OPI Van/Feel Good.
Best Product Marketing Get a Manicure Autowrap Program
The Extremely Useful Hair Co.
Hair Care – Nicholas French Pin Ups Best Print Advertisement
in a Consumer Publication
(In-Salon Use or Retail) OPI Products, Inc. – Whisper/Color Ad Series
Best Product Packaging
Best Product Marketing Industrie (a division of NewellRubbermaid)
– The Industrie Collection Best Sales Promotion
Sebastian International – Body Double
Clairol Professional, a division of P&G
Best Print Advertisement – Clairol Professional School Partnership Program
Best Product Packaging
Goldwell Cosmetics USA – Color Glow in Industry Publication
Industrie (a division of NewellRubbermaid)
Best Print Advertisement – The Industrie Collection GOLD ABBIES
in Industry Publication The best of the best! The Gold ABBIES award is
Giovanni Cosmetics, Inc. Best Merchandising Display presented to the winning entry that best represents
– Giovanni Organic Hair Care Industrie (a division of NewellRubbermaid) innovation, creativity, savvy marketing acumen and
– The Industrie Collection professional advancement for the industry.
Best Merchandising Display
Kenra LLC
– Kenra Platinum Product Display “Caddy”
Industrie – The Industrie Collection
Advocacy & more salon employees to generate an annual sales
volume that would be considered ‘small’ in most
Overtime Rules
other industries.”
Government New federal regulations went into effect on
August 23, 2004, spelling out which employees
The Salon Association, along with
Affairs other small business industries,
are entitled to receive overtime pay at time-and-
a-half rates under federal law after working 40
notified the SBA of their strong hours during a workweek. The changes may affect
your employees. The federal Fair Labor Standards
concerns with the change and Act (FLSA) exempts “executive, administrative
urged that the rule be withdrawn.
Tip Tax Bill: Small and professional employees” from overtime-pay
requirements under federal law. The updated
Business Tax The SBA had set July 2, 2004 as the deadline for overtime regulations provide clearer guidelines
for both employers and employees regarding the
Equalization & comments to be filed. However, as a result of the
overwhelming opposition, including from TSA, the overtime status of “white collar” employees. The
House of Representatives voted to repeal the new
Compliance Act SBA issued a statement rescinding the proposed
overtime rules, which passed by a vote of 223-193.
rule change on June 30. For a copy of the letter,
please call PBA at 800-468-2274 (480-281-0424). However, the provision is expected to remain in
For the first time, we have early introduction of our place. The U.S. Department of Labor’s Web site
tip tax bill in both the House (H.R.1345) and Senate ( offers full details on the regulations.
(S. 327). The bill permits salon employers to claim Health Care Reform
the 45(b) tip tax credit currently offered solely to the
restaurant industry. The legislation also provides Small businesses represent 60 percent of the Washington, DC
needed assistance to the federal government by uninsured Americans in this country. Double
digit increases in health care costs and concerns
Events in May
improving tip-reporting requirements for certain
sectors of the industry. Let’s make this the year we over premiums and liability issues are prohibiting
return over $600 million back into the pockets of more and more small businesses from providing Join us in Washington, D.C. to show your support
salon and spa owners. health care to their employees. Several legislative for PBA’s government affairs initiatives! You’ll
initiatives have been pursued this Congress to help experience two days filled with memories, activism
• Highlight from 2004. make health care more affordable: and education!
In July 2004, the House Ways and Means
Committee, which has jurisdiction over this • Medical Liability Reform. Hill Visits
legislation, held a hearing on tip-related issues. Today, the country is facing a health-insurance May 18-19, 2005
Frank Zona, TSA board member, testified before premium crisis. Some in Congress believe that 8:00AM – 3:00PM
the committee’s Oversight subcommittee on the large jury awards may have contributed to health
legislation. The hearing succeeded in educating insurance premium increases, forcing specialists, Join PBA as we take the Hill by
lawmakers on the unique issues facing businesses such as OB-GYNs, to retire or move to neighboring storm on Wednesday, May 18
with tipped employees. Most importantly, states. While the number of malpractice suits has and Thursday, May 19! Make
committee members recognized the inequity been holding steady, the average jury award has appointments to meet with your Congressional
that exists with regard to the tax credit, currently increased 79 percent in the last ten years. Doctor representatives or their staffs. You have two Senators
available only to restaurant tipped-employees. shortages in the health-care system may lead to representing your state and one Congressperson
(Please call PBA/TSA for a copy of the testimony increased costs for small-business owners who are representing your district. Congresspeople are
as well as additional information on the hearing.) voluntarily providing health care for their employees. generally easier to reach. Prepare yourself with
HR 5 and its Senate companion, S. 607, were talking points about the issues that matter to you
introduced IN 2004 to try to limit lawsuit-damage as a small-business owner. If you are unable to join
awards. Watch for more developments this year. us in DC, consider making appointments with staff
SBA Victory in the local district office. You can also simply make
• Association Health Plans (AHPs). a phone call or send a letter. If you would like help
Earlier this year, the Small Business Administration In most states, a handful of insurance companies preparing for your appointments, phone calls or
(SBA) announced their intent to change the definition dominate the small-business market. Research letter writing, call PBA at 800-468-2274 (480-281-
of a “small business,” making fewer businesses, shows that small employers face fewer choices and 0424) or email
including salons, eligible for government programs. higher prices for health plans than bigger businesses.
In fact, the salon industry was singled out by In May 2004, the House of Representatives passed Welcome to Our World
the SBA as an industry that would be negatively legislation creating AHPs, which allow small Thursday, May 19, 2005
impacted by the proposed change. business owners to band together, across state 4:00PM – 8:00PM
lines, to purchase health insurance as a group.
The proposal would establish “size” standards in AHPs will allow small-business owners, through Each year, the Professional
terms of the number of employees of a business, their membership in a bona fide trade association Beauty Federation invites
rather than receipts-based size standards. For the such as PBA, to purchase health coverage for Capitol Hill to share an
salon industry, the proposal would have changed their families and employees. If AHPs became evening with important members of the small
the current eligibility of salons with $6 million in law, a small-business owner could purchase business community—salon owners and licensed
annual sales or less to salons with 50 employees or health benefits through any one of these entities professionals. At Welcome to Our World, the
less—eliminating more than 400 salon businesses that would, in turn, act as a “human resources professional salon industry “makes over” Congress.
from eligibility for SBA assistance. department” similar to that of large companies. And as the Congressional representatives and
Some are concerned that the AHPs legislation their staffs experience haircuts, manicures and
In late June, the SBA formally withdrew the proposed omits standard safeguards that protect consumers massages, our members take the time to explain
rule. The Salon Association played a key role in under current insurance programs. The U.S. House the issues that are critical to their success as
having the rule withdrawn. The Salon Association, of Representatives passed this legislation twice small business owners. (The Professional Beauty
along with other small business industries, notified during the 108th Congress, but the Senate did not Federation is an organization of salon industry
the SBA of their strong concerns with the change act before adjournment. Watch for more movement associations, including PBA.)
and urged that the rule be withdrawn. In the letter to on AHPs in the 109th session of Congress.
the SBA, the association wrote, “compared to the
vast majority of other industries, a larger number
of employees are needed in salons to generate a
certain amount a sales. As a result, it takes many
Distributor Manufacturer Salon & Spa
Leadership Council Leadership Council Leadership Council

Jon Stan Klet, Sr. Myriam Bruce Selan Sasha Rash NeCole
Shakour Vice President Clifford Vice President President Cumberlander
President President 1st VP

photo not

Jim Barbara George Tom E. Manuel Serena Chreky

Marshall Ashworth Schaeffer Crumpton Benevich VP Communication
Vice President Secretary- Secretary- VP Education
Treasurer Treasurer

photo not

Bill Gray Bob Peel, Jr. Bill Decker John Heffner Richard Eveline
Calcasola Charles

photo not

Beth Pence William Raymond Lee John Cary

Ranney Mager Rizzuto, Jr. Galietti O’Brien

Mike Lydia Melissa

Renzulli Sarfati Yamaguchi

For more information on PBA member benefits, call 800.468.2274

Featured Benefit Providers (480.281.0424) or email

Capitol Marketing Concepts National Association Roadway Express

800.238.5659 of Wholesaler Distributors 800.368.6745 202.872.0885
Incentive Programs Freight Discount
Capitol Marketing Concepts Health Insurance Roadway Express, a PBA “freight partner,” has
offers you the ability to participate in a flexible Through PBA’s membership in the National been recognized for outstanding performance by
discount travel incentive program that is affordable Association of Wholesaler-Distributors (NAW), all the Logistics Management & Distribution Report
for both large and small companies. Whether you PBA/TSA members have access to a varied menu as one of the top “Quest for Quality” less-than-
are a manufacturer, distributor or retail firm, CMC of business and career services, including health truckload (LTL) carriers. Roadway meets the ever-
will develop, design and implement a revenue- insurance. This is of particular import to our Salon changing challenges of moving freight faster and
generating promotional travel program to help & Spa Section members, who have long requested more efficiently and providing solutions to today’s
you attain your goals. Programs can include hotel, health coverage options for their staffs. Insurance supply chain requirements. For PBA members,
meals, airline tickets, cruises, spa packages, golf benefits include medical, dental, disability and life Roadway offers a 58% discount off current
and many other travel-related activities. coverage with an emphasis on the PPO option, Roadway E-Z Rates. Call for an enrollment.
This benefit is open to PBA manufacturer and allowing employees and dependents to access a This benefit is open to PBA distributor and
distributor members only. larger network of physicians and hospitals directly. manufacturer members only.
This benefit is open to all PBA members.

Watch your email for regular updates regarding PBA member benefits!
Mark your calendar with these upcoming PBA events.

PBA Capitol Hill Visits Cosmoprof North America ABBIES

May 18-19, 2005 (North American Beauty Events) February 4, 2006
Washington, DC July 24-26, 2005 Renaissance Long Beach Mandalay Bay Convention Center Long Beach, CA
Las Vegas, NV

Welcome to Our World International Salon & Spa Expo (ISSE)

(Professional Beauty Federation) Symposium 10 February 4-6, 2006
May 19, 2005 (PBA’s Salon & Spa Section Long Beach Convention Center
Washington, DC – The Salon Association) Long Beach, CA January 14-17, 2006
Manchester Grand Hyatt
San Diego, CA

North American Hairstyling Awards

July 24, 2005 For additional information on
Mandalay Bay Convention Center the events above, please call
Las Vegas, NV 800-468-2274 (480-281-0424) or email

Professional Beauty Association

15825 North 71st Street, Suite 100
Scottsdale, Arizona 85254