nails big book 2004-05

®�

2004-2005 Industry Statistics

Sponsored by

ALL NEW:Salon service volume

swells 4.8%10-year growth patterns

of service prices5-year trends

in services, income All new client demographics“Did school prepare you?”

[all new data]

BB05_STATs19.qxp 11/1/04 12:58 PM 9

For more information about Manicure by OPI, log on as a professional at www.opi.com or contact your Authorized OPI Distributor.

EXFOLIATESKIN RENEWAL SCRUB Natural Sugar Scrub with Emollients

A luxurious, restorative first step toward more beautiful hands! Natural ultra-fine water-dissolving sugar crystalsgently exfoliate away dryness to leave hands smooth and glowing. Deep penetrating olive oil derivative producesnatural AHA within skin to speed cell turnover for younger-looking hands. Requires no mixing or activator. Waterrinse, or treat hands to the revitalizing and nourishing benefits of OPI Effervescent Soak.

Natural Ultra-Fine Sugar Crystals • Hydrating Emollients • Oleyl Lactate • Aromatherapeutic essences of lemon, lime,orange, juniper, coriander, pineapple, melon, geranium, heliotrope, peach blossom and treemoss

REVITALIZEEFFERVESCENT SOAK Hand Soak with Minerals and Brighteners

A spirited, effervescent soak that brightens nails and revitalizes hands! The nutrient-rich infusion of mineralshelps restore proper electrolyte balance and purifies skin to leave hands feeling refreshed. Natural emollientsnurture, soothe and hydrate overworked skin for a younger-looking appearance.

Natural Emollients • Magnesium • Aromatherapeutic essences of mandarin orange, lime & basil

RENEW REJUVENATING SERUM Anti-aging Hand Serum with Grape Seed and Licorice Extracts

Turn back the clock for younger looking hands! This clinically proven, powerful single-step professionaltreatment infuses skin with natural ingredients, including Licorice Extract, to help reduce the visible signsof aging on the hands. Deep penetrating olive oil derivative produces natural AHA within skin to speed cellturnover for younger-looking hands. Nourishes skin with Vitamins A, C and E, plus Grape Seed Oil,known for its powerful antioxidant protection.

Kojic Dipalmitate • Licorice Extract • Oleyl Lactate • Vitamins A, C & E • Grape Seed Oil • Aromatherapeutic essences oflavender, eucalyptus and camphor

PROTECTFINISHING BUTTER A Skin Massage and Moisturizing Butter with SPF 15

A luxurious, professional massage and finishing butter! Envelops skin in a protective layer of silky emollientsto combat dryness. SPF 15 protects skin from the damaging effects of the sun, while discouraging the returnof age spots for more youthful-looking skin. A luxury for the entire body!

SPF 15 Sunscreen • Hydrating Emollients • Aromatherapeutic essences of lavender, eucalyptus and camphor

INTRODUCTORY KIT

Expand your service menu and your profits! Introductory kit contains everything you need to get started,including all four Manicure by OPI products: Skin Renewal Scrub 291 g / 10.2 Oz. Net Wt., EffervescentSoak 253 g / 7.7 Oz. Net Wt., Rejuvenating Serum 59 mL / 1.95 Fl. Oz., and Finishing Butter SPF 15 259 mL / 8.7 Fl. Oz.

Also included, Avoplex® Exfoliating Cuticle Treatment 30 mL / 1 Oz., Avoplex Nail & Cuticle Replenishing Oil 15 mL / .5 Fl. Oz., OPI Brilliance File, Instructional Brochure, Tabletop Instructions, Tent Card, and Manicure by OPI DVD.

BB05p020-021.qxd 10/29/04 6:36 PM 0

E X F O L I AT E • R E V I TA L I Z E • R E N E W • P R O T E C T

S O S I M P L E , I T ’ S P E R F E C T

Call 800.341.9999 or visit www.opi.com. ©2004 OPI Products Inc.

BB05p020-021.qxd 10/29/04 6:36 PM Page 21

22 NAILS 2004-2005 THE BIG BOOK

Who, exactly, is the “average nail technician”?When we put together these statistics, we’recreating a snapshot of the industry,averaging outthe information on thousands of nail techniciansinto a composite,so that we can develop a generalunderstanding of who makes up our thrivingindustry.Maybe you find that your own situationresembles the “averages”published here, maybeyou’re at the high or low end in certain areas.

This year we wanted to show the real peoplebehind these statistics and see “the numbers”onliving breathing nail technicians. So in theintroduction to each section,we asked one surveyrespondent to share her personal information togive these numbers a personal touch, a real nailtechnician,someone whose information is usedto figure out these numbers in the first place.

In our constant attempt to get moreinformation each year, we’ve stuffed more statsin these 32 pages than ever before. We’ve seena few shifts in the recurring information andwatched some other areas barely budge. Thegrowth in the size of the industry is the biggest

jump we’ve seen in quite a few years.Thisis attributable to the 5% increase in

the number of nail technicians,despite the number of salons beingflat, as well as healthy increases inservice prices in the four key areaswe evaluate.

As always, I thank all the peoplewho responded to our survey tomake these statistics possible.And

to George Schaeffer and everyone at OPI, whosegenerosity in sponsoring this statistics section,enables us to publish the most detailed picture ofthe nail industry possible. I told George about our“personal statistics”theme this year and he says hecouldn’t agree with the idea more.“Our industry ismade up of so many unique individuals, who,together, make us strong.The information on eachperson makes a difference in how we understandthe industry as a whole,”says George.

How We Gather the Data,Develop the Numbers

The statistics this year are based on surveysconducted by the NAILS Magazine staff.This yearour primary survey tool was a survey that mailed toa selection of readers in the August 2004 issue.Wereceived more than 2,300 response. That kind ofresponse allows us to project the survey data acrossthe universe of nail technicians.

As always, I welcome your comments on thematerial in the Big Book.This publication is the mostreferred-to issue we publish all year. It’s quoted,copied, referenced, studied, and dog-eared, and wetake very seriously our responsibility to providereliable data.But most seriously is how we take theeffect the information can have on you personally, inyour own small business. It can be the basis for yourbusiness plan, it can show you that you are ripe toexpand or are due for a raise, or it might just makeyou feel good that you’re an “average nail technician”and help you set new goals for yourself.

— Cyndy Drummey,publisher

stat

istic

s

Figure represents total dollar volume, in billions,spent by salon customers on salon services.

$6.44

$6.34

$6.45

$6.53

$6.84

2000 2001 2002 2003 2004

$8

$7

$6

$5

How we develop these projections:NAILS’ market size projection figures are esti-mates derived from our own research.They arecalculated (in a proprietary way) based on thenumber of salons in the U.S., the number of nailtechnicians per salon in each state, the averageservice prices of four key salon services, and anestimate of the number of practicing nail tech-nicians.The final figure represents, to the bestof our ability, the total amount of money spentin the U.S. in nail salons for services.The amountdoes not include earnings by technicians orsalon owners, tips, cost of products, or anyother business expenses.

Is There Such a Thing as an “Average Nail Technician”?

industry outlook and trends

Nail Salon ServicesMarket Size

(figures in billions)

BB05_STATs22-29.qxp 11/1/04 2:28 PM Page 22

Call 800-341-9999 or visit www.opi.com.© 2005 OPI Products Inc.

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23NAILS 2004-2005 THE BIG BOOK

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Miles of Pedicures. We will continue to see the further specialization of pedicure services,with some salons turning most of their service menu over to foot careoptions.Pedi spa chair marketers can look forward to a great year,assalons looking for an edge line the walls with pedicure thrones toentice clients.

That’s the Rub. New manicure and pedicure services will revolve around themassage,rather than the nail care.Nail techs who learn reflexology,Shiatsu,or Swedish massage techniques will be earn substantiallymore from their smiling clients.

P&L Doesn’t Stand for Play & Leisure. Finally,nail salons get serious about the business side of nails.We’ll seemore salon owners (and independent nail technicians) talk about“cost of goods”and “bottom line,”as they learn how to price servicessmarter,allocate dollars for their time,and start tracking theirbusiness’s health.

Products Drive the Service. More than ever,the products themselves will dictate services.Nailtechnicians will customize services — in natural nail care andenhancements — that revolve around the products.You’ll see warmweather pedicures and winter pedicures, for example,each using aunique product line.Savvy marketers will help salons customizemenus to go along with their products,providing service “recipes,”pricing suggestions,and even client handouts.

Self-Policing. As state licensing regulations come up for sunsetting,the industry willsee that there is no rubber stamp of approval on the cosmetologyarts,and will have to show that not only is education and licensingneeded,but so is self-policing.Look for a healthy discussion of the truechallenges the industry faces and — hopefully — real solutions thatwill drive a new era in salon safety.

Trends to Watch


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Ethnicity These figures represent estimates by NAILSMagazine of the ethnic breakdown of nail technicianlicensees in the U.S.These estimates are developedbased on a survey of the U.S. licensee list,as well asinterviews with industry experts,schooladministrators,and state board representatives.

Are you licensed?*YES 94.6% NO 5.4%

salon owner (doing nails) 38.4%

nail technician/booth renter 32.0%

nail technician/employee 22.2%

salon manager/nail dept.manager 5.0%(doing nails)

salon owner (not doing nails) 1.3%

student 0.8%

salon manager/nail dept.manager 0.3%(not doing nails)

which title best describes your position?

8%

43%

7%

Vietnamese

Asian/other

Hispanic

African American/Black

2%Korean

1%

Caucasian

39%

demographics

* Based on state licensing data

How long have you been doingnails?

one year or less 4.7%

2-3 years 17.7%

4-5 years 13.5%

6-7 years 9.0%

8-9 years 7.5%

10+ years 47.6%

9.1 years (average)A silhouette shows a general shape,butnot detail.These statistics show ageneral shape with details beingaveraged out.The average nail tech isrequired to be licensed in her state, isfemale,38 years old,and has beendoing nails a little over nine years.She’smarried and has kids,has attendedsome college,and is either Caucasian orVietnamese.She is either a booth renteror owns the salon herself (but stillhandles clients) and she’s most likely tobe found in the west or the southernpart of the U.S.

Our “snapshot”of a real nail technician isRinda Wech,who lives in Topeka,Kansas,and works in a salon with nineother nail technicians.She’s 35, latina,married with kids,and she’s a boothrenter.She’s been doing nails 13 years.

Gender2004 2003 2002

female 95.7% 93.8% 95.9%

male 4.3% 6.2% 4.1%


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East 17.8%

Mountain 2.7%

Midwest 19.2%

South 22.4%

West 37.9%

where do you live?*

Some high school 3.5%

Finished high school 31.0%

Some college 45.6%

Finished college 15.7%

Graduate school 4.2%

Highest level of school completed

16.1%

Married with kids

Unmarriedwith kids

Married withno kids

12.4%

50.4%

HomeLife

1 tech 40.8%

2 techs 19.6%

3 techs 14.0%

4 techs 9.2%

5+ techs 16.4%

How old areyou? 38.6 (average)

How many nail techniciansare in yoursalon? 2.6 (average)

Unmarriedwith no kids

18.3%

No response

2.8%

➤


stat

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2004 2003 2002 2001 2000manicures 97% 99% 99% 99% 95%

pedicures 96% 94% 96% 92% 88%

acrylics (any type) 89% 90% 94% 92% 84%

paraffin dips 82% 83% 86% 85% 63%

nail art 78% 74% 75% 78% 68%

waxing (for hair removal) 68% 70% 72% 74% 58%

hair care 52% 58% n/a 54%

gels/UV light-cured systems 50% 49% 51% 44% 33%

fiberglass 44% 49% 57% 54% 51%

silk wraps 42% 47% 52% 50% 43%

UV top coat service 40% 35% 60% 55% 48%

nail jewelry 36% 34% 51% 54% 43%

facials 35% 37% 43% 38% 32%

skin care 33% 36% 52% 40% n/a

massage 33% 33% 51% 39% 25%

colored/design acrylics 32% 40% 35% n/a

makeup application 30% 33% 36% 37% 29%

powder/glue extensions 28% 32% 73% 60%

airbrushing 25% 27% 31% 30% 26%

reflexology 21% 21% 32% 30% 19%

tanning 21% 21% 25% 26% 22%

aromatherapy treatments 20% 21% 47% 36%

ear piercing 17% 19% 29% 29% 24%

ear coning 7% 6% n/a

non-waxing hair removal 5% 4% n/a

glamour photography 2% 2% 3% 6% 4%

nutritional analysis/weight control 2% 2% 8% 6% 6%

body piercing 2% 1% 4% 6% 5%

body wraps 1% n/a

permanent makeup 1% n/a

water therapies 1% 2% 5% n/a

What services are offered in your salon? Powao$nchi

salon services



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How many different PEDICURESERVICES do you offer: 2.3(average)

Offer one 28.0%

Offer two 36.8%

Offer three 20.2%

Offer four 7.4%

Offer five or more 6.3%

No response or offer none 1.3%

Do you use an electric file forany services? 63.2% YES

What percentage of your business doeseach service category account for?

other servicesnail art

34.7%6.5%

manicures/natural nail services

3.5%

11.6% other artificial/enhancements

services

18.5%

acrylics

25.2%

pedicures

Pedicure services continue tooffer a versatile,profitable service,which is why so many salons offerat least two different pedicureoptions,with prices ranging from$27.03 to $43.87.Pedicures arenot unique in how they can becustomized,but nail technicianshave shown enormous creativityin the options they offer.

No longer are electric files a symbol of a lazy nail technician oran assembly-line salon.What used to be called a drill is nowused by even old-time filing purists.The electric file allows a nailtechnician to speed up some services,refine others,and workwith a high level of efficiency on both natural and artificial nails.


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1994 1995 1996 1997 1998 1999 2000

$40

$30

$20

$10

AVERAGE SERVICE PRICES$41.83

$38.92 $38.81 $38.40

$22.01$23.32

$24.06 $24.57

$20.74$21.05 $20.89 $20.52

$10.97$12.03 $12.10 $12.69

$37.97

$25.90

$20.91

$12.88

$37.33

$26.77

$21.36

$14.11

$39.82

$27.49

$22.10

$14.47

Wyo

Service prices are how we take our industry’s pulse.You expect prices to

continue to rise year after year,keeping pace with inflation and a competitive

environment,but in one key area — acrylic services — prices are literally flat-

lined.Due to enormous competition in this area,prices have dropped over the

course of 10 years and now the average price of an acrylic full set is almost 7%

less than it was 10 years ago.Conversely,prices on natural nail services like

manicures and pedicures have enjoyed robust growth,up 43% and 36%,

respectively,over a 10-year window.We’ve added new service categories this

year,showing you clearly that expanded service menus offer pockets of

profitability that can be sensibly used by nail technicians.

Our “snapshot”nail tech is Kim Myers of Simi Valley,Calif.The southern

California market she works in is as competitive as ever,but Kim’s prices remain

solidly average.Her menu:basic manicure:$15;pedicure:$27; full set/acrylics

with tips:$45,full set/sculpts:$45; fill/acrylic tips:$25,fill/acrylic sculpts:$27;

colored acrylics:$55 full/$35 fill; full set/pink-and-whites:$45;backfill/pink-and-

whites:$30;wraps/full set:$45;paraffin dip:$7;and polish change:$12

service prices



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➤


AVERAGE SERVICE PRICESmanicure $15.78

pedicure $30.84

acrylic full set (tips with overlay) $38.94

acrylic fill (tips with overlay) $22.97

full set/sculptured acrylic $44.76

fill/sculptured acrylics $25.62

wraps/full set (any kind,over tips) $40.97

gels/full set (any style) $43.15

colored acrylics (full set) $46.07

pink-and-whites (full set) $45.56

paraffin dip $8.52

polish change $7.93

2001 2002 2003 2004

ACRYLIC FULL SET

$39.64

$27.58

$21.99

$14.18

$42.12

$30.62

$23.02

$15.67

$38.75

$29.83

$23.22

$15.42

$38.94

$30.84

$22.97

$15.78

PEDICURE

ACRYLICFILL

MANICURE

$27.03 to $43.87 (average)

What is the price range ofyour pedicure services if youoffer more than one?

6.9%

43.8%

10 YEARCHANGE

35.5%

10.8%


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For more information about OPI professional products, or to find an OPIprofessional education workshop in your area, log on as a professional at

www.opi.com or contact your Authorized OPI Distributor.Call 800.341.9999 for more information.

©2004 OPI Products Inc.

BB05p030-035.qxd 11/1/04 2:53 PM Page 30

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The ultimate in speed and precisionONE SYSTEM – A MULTITUDE OF SERVICEOPPORTUNITIES!

For today’s Spa-salon environment!ADVANCED ODOR-FREE ACRYLIC TECHNOLOGY

Liquid & Powder SystemFOR SOFT, SOPHISTICATED PINKS AND WHITES

COMPETITION FORMULA

BB05p030-035.qxd 11/1/04 2:53 PM Page 31

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BB05p030-035.qxd 11/1/04 2:53 PM Page 32


HIGH-PERFORMANCE SPEED AND ACCURACY• High-quality Russian Kolinski Natural Red Sable bristles• Designed for speed and accuracy for precision applications • Elegant chemical-resistant hardwood handles with unique Patented no-roll design

COMPETITION 3000 BRUSHES

- Competition 3000 Edge #7- Competition 3000 Oval #7- Competition 3000 Wedge #8

- Competition 3000 Point #8- Competition 3000 Concave #10

THE ART OF DETAIL• High-quality Russian Kolinski Natural Red Sable bristles• Designed for detailed artistic acrylic applications • Elegant chemical-resistant hardwood handles with unique Patented no-roll design

COMPETITION 3000 DESIGN BRUSHES

- Competition 3000 Designer #1- Competition 3000 Striper #000

PROVEN PERFORMERS FOR ALL ACRYLIC APPLICATIONS• High-quality Russian Kolinski Natural Red Sable bristles• Elegant chemical-resistant black handles with a unique Patented no-roll design• Extensive size range: Petite Fine Point #4 to Royale Pointe #12

RUSSIAN KOLINSKI NATURAL RED SABLE BRUSHES

- Petite Fine Point Brush #4- Petite Flat Edge #4- Golden Oval #5- Golden Point #6

- Golden Edge #6- Grand Kolinski #7- Grand Pointe #9- Royale Pointe #12

ECONOMY AND PERFORMANCE!• High-quality Natural American Red Sable bristles • The most economically priced brushes in the OPI line• Ideal for the student

AMERICAN RED SABLE BRUSHES

- Round Red Sable Brush #5R- Flat Red Sable Brush #5F

DESIGNED FOR EXACTING GEL APPLICATIONSMade with long-lasting synthetic fibers, this oval-shaped brush is specificallydesigned for efficient applications with MicroBond Gels. Unique handledoubles as an orangewood stick.

- Universal Gel System Brush #6

UNIVERSAL GEL SYSTEM BRUSH

Brush shown:Competition 3000 Designer #1

Brush shown:Competition 3000 Concave #10

Brush shown:Grand Kolinski #7

Brush shown:Flat Red Sable Brush #5F

Brush shown:Universal Gel System Brush #6

BB05p030-035.qxd 11/1/04 2:53 PM Page 33

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BB05p030-035.qxd 11/1/04 2:53 PM Page 34


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Natural • Full Well

ELEGANTLY TAPERED TIPLINEAR

- For sleek, graceful nailsNatural • Full Well

SHEER, FLEXIBLE-FIT TIPEXPANSION

- Unique three-prong well fits all nail platesNatural • Full Well

SPORT-LENGTH TIPPERSPECTIVE

- Same design as Dimension, in natural- For a natural-looking two-tone nail

Natural • Half Well

SPORT-LENGTH TIPDIMENSION

- Same design as Perspective, in white- For a dramatic pink and white nail

White • Half Well

BB05p030-035.qxd 11/1/04 2:53 PM Page 35

stat

isti

cs


16.5%

72.5%

6.9%

3.1%

0.3%

0.7%

weekly

every other week/every two weeks

every three weeks

once a month

every other month

less than every other month

How many clients doyou see a week? 34.8

(average)

girls (under 12) 1.9%

girls (13-20) 5.6%

women 21-25 9.9%

women 26-35 19.4%

women 36-45 28.5%

women 46+ 28.6%

no response 6.1%

BY AGE25

30

35

40

"2001"2002"2003

female93.6%25

30

35

40

"2001"2002"2003

male6.4%

On average, how often doclients come in for services?

Monday 58.7%

Tuesday 6.7%

Wednesday 3.6%

Thursday 2.3%

Friday 4.8%

Saturday 13.8%

Sunday 98.5%

When is yoursalon closed?

clients & retailThe more you know about your clients, the betteryou can serve them.That’s why we’ve been soearnestly gathering information on them this year. Ifyou look at your clientele more carefully, you mightfind new and better ways to serve them. If everyother salon is closed on Mondays, is it an opportunityfor you to be open? If few salons are catering to thepost-graduate age group of 21-25, could youcustomize services that might attract them and carveout a niche for yourself in the process?

Our “snapshot”nail tech is Julie Schneider ofNashotah,Wis.Her clientele is 100% female,breakingdown like this:3% girls under 12,4% girls 13-20,30%women 36-45,and 50% women 45+.On average,herclients come to the salon every other week for services,and she’s closed Saturday and Sunday.She sees 35clients per week on average,and works 40 hours a week.

Who are your clients?BY GENDER


➤


WHAT IS YOUR NUMBER-ONE RETAIL BEST SELLER? 1.nail polish 52.1%

2.nail strengtheners/treatments 18.0%

3.hand lotion 9.2%

4.other 7.2%

5.hair care 4.3%

6.cuticle treatments 4.1%

7.top/base coats 3.9%

8. implements 1.2%

% represents the number of respondents who said it was their best-selling retail item

What products are retailed in your salon? *

nail polish 98.2%

hand lotion 88.5%

nail strengtheners/treatments 88.4%

top/base coats 84.2%

cuticle treatments 73.3%

quick drying products 62.2%

nails files or buffers 61.8%

adhesive/glue 46.5%

personal implement kits/implements 36.1%

boutique items 34.4%

makeup/cosmetics 32.8%

hair care 11.1%

vitamins/nutritional supplements 10.0%

clothing 5.9%

skin care 4.2%

tanning products 3.5%

jewelry 3.4%

toe rings 0.5%

candles 0.5%

Monday 4.6%

Tuesday 9.9%

Wednesday 11.5%

Thursday 29.1%

Friday 24.3%

Saturday 19.1%

Sunday 0.2%

No response 1.3%

What is your busiestday for business?

80.3% of nail techsretail products forclients’ at-home use.

47.2% of nail techs receive a

commissionor other incentive

for retailing.

* Source:2003-2004 Big Book


stat

istic

s


Average weekly income $541.05

weekly earnings by regionwest $636.97mountain $513.75midwest $511.32south $547.69east $521.13

weekly earnings by years in businessless than one year $276.952-4 years $435.795-7 years $631.148-10 years $598.2811+ $656.68

weekly earnings by ageunder 20 years old $255.0020-29 $567.9230-39 $690.3940-49 $595.1550+ $578.33

weekly earnings by job description nail technician/employee $462.93nail technician/booth renter $464.50salon manager/nail dept.manager (doing nails) $681.23salon manager/nail dept.manager (not doing nails) $500.00salon owner (doing nails) $731.74salon owner (not doing nails) n/a

salary only 33.2%

salary plus commission 14.2%

straight commission 46.7%

tiered commission 5.9%

This data reflects only respondents who were not booth renters.

What commissionpercentage do you receiveon services? 56.5% (average)

more than 60% 11.1%

56%-60% 37.0%

51%-55% 14.1%

46%-50% 30.4%

less than 45% 4.4%

no response 3.0%

2004 5 Years Ago

$150 or less 6.9% 11.9%

$151-$250 11.7% 20.1%

$251-$350 8.8% 16.9%

$351-$450 11.5% 14.1%

$451-$550 14.6% 12.2%

$551-$650 9.4% 7.1%

$651+ 37.1% 17.7%

income & buying habitsYou earn it;you spend it.Money makes the world go ’round.Yourearnings are up 9% over last year,thanks most likely to decentincreases in service prices.You’re spending a bit more onsupplies,and spreading the wealth around to more than threedistributors.As the distribution landscape has changed so muchover the years,we wondered whether nail technicians felt thathad more or less choices.Although to get all their shoppingdone,they need to seek out more sources,most seem pleasedwith the choices and variety.

We asked our “snapshot”nail tech Sherie Works of Dayton,Ohio,about the earnings and expenditures in her business.She’sa booth renter,averaging $345 per week in income.She pays$260 per month for booth rental and provides all her ownsupplies, including tools and equipment.On average,she spends$50-$75 per month on nail supplies between professional supplystores,mail order,trade shows,and the Internet.

Which best describes yourcompensation system?


➤


What are your TWO main SOURCES for NAIL SUPPLIES?

2004 2003 2002

Professional beauty 87.0% 86.2% 84.2%supply store

Mail order catalog 35.6% 34.2% 42.0%

Full service distributor’ssales consultant 19.3% 25.6% 23.0%

Direct from the 14.9% 18.4% 19.8%manufacturer

Open to the public beauty store 11.7% 11.5% 10.3%

Internet 9.3% 9.5% 16.0%

Trade show 5.0% 12.3% 7.8%

Mobile distributor 3.2% 3.7% 2.4%

Drugstore or other 0.6% 1.4% 3.0%general store

once a week

once a month

twice a month

less than once a month

HOW OFTEN DO YOU PURCHASE SUPPLIES?*

$198.932003

$234.112002

Do you purchase your own nail products?Yes, I provide all my own supplies, including tools and equipment. 68.8%

I provide some supplies, the salon provides some supplies. 4.8%

The salon provides all my supplies, except my tools. 17.1%

The salon provides all supplies, including tools and equipment. 9.3%

*Source: 2003-2004 Big Book

14%

36.6%

29.9%

19.5%

average hours workedper week: 36.1

$204.222004

12

34

5

How many different DISTRIBUTORS do

you use? 3.1(average)

Use one distributor 9.3%

Use two distributors 28.7%

Use three distributors 29.3%

Use four distributors 18.1%

Use five or more distributors 13.7%

No response 0.9%

How much do you spenda month on supplies?

$288.422002

$321.082003

How much is your monthly booth rental?

$329.232004



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Connecticut 890 871 2.2% 3,214 3,135 2.5%Delaware 180 181 -0.6% 512 514 -0.4%District of Columbia 90 102 -11.8% 803 796 0.9%Maine 174 158 10.1% 866 741 16.9%Maryland 887 857 3.5% 7,465 7,713 -3.2%Massachusetts 1,383 1,333 3.8% 11,723 11,997 -2.3%New Hampshire 211 205 2.9% 1,288 1,271 1.3%New Jersey 2,581 2,534 1.9% 8,550 9,366 -8.7%New York 3,798 3,740 1.6% 16,452 16,344 0.7%Pennsylvania 2,624 2,588 1.4% 10,560 11,403 -7.4%Rhode Island 177 165 7.3% 922 889 3.7%Vermont 58 55 5.5% 182 173 5.2%Virginia 1,309 1,227 6.7% 7,520 7,472 0.6%

Eastern Total 14,362 14,016 2.5% 70,057 71,814 -2.4%

Colorado 844 838 0.7% 7,788 7,275 7.1%Idaho 221 241 -8.3% 1,059 1,064 -0.5%Montana 166 172 -3.5% 472 470 0.5%Nebraska 289 286 1.0% 957 828 15.6%North Dakota 56 52 7.7% 132 126 4.8%South Dakota 51 55 -7.3% 34 38 -10.4%Wyoming 101 104 -2.9% 333 330 0.9%

Mountain Total 1,728 1,748 -1.1% 10,775 10,131 6.4%

Illinois 2,096 2,060 1.7% 9,610 8,164 17.7%Indiana 830 834 -0.5% 3,752 4,529 -17.1%Iowa 308 303 1.7% 592 727 -18.6%Kansas 446 435 2.5% 2,550 2,523 1.1%Michigan 1,595 1,625 -1.8% 14,207 13,000 9.3%Minnesota 570 537 6.1% 3,087 2,519 22.5%Missouri 848 832 1.9% 4,367 4,367 0.0%Ohio 1,737 1,763 -1.5% 13,866 10,714 29.4%Wisconsin 882 884 -0.2% 2,029 2,033 -0.2%

Midwest Total 9,312 9,273 0.4% 75,610 68,837 9.8%

Alabama 713 703 1.4% 1,218 1,202 1.3%Arkansas 430 426 0.9% 6,865 1,086 532.0%Florida 3,757 3,728 0.8% 44,576 40,993 8.7%Georgia 1,715 1,648 4.1% 5,912 6,707 -11.9%Kentucky 525 525 0.0% 2,318 2,310 0.3%Lousiana 811 800 1.4% 1,364 1,264 7.9%Mississippi 403 405 -0.5% 1,508 1,507 0.1%North Carolina 1,579 1,535 2.9% 8,198 7,675 6.8%Oklahoma 620 622 -0.3% 5,638 4,080 38.2%South Carolina 657 682 -3.7% 2,452 2,653 -7.6%Tennessee 747 949 -21.3% 7,240 7,715 -6.2%West Virgina 168 177 -5.1% 490 566 -13.5%

South Total 12,125 12,200 -0.6% 87,779 77,759 12.9%

Alaska 111 110 0.9% 406 233 74.1%Arizona 933 915 2.0% 7,455 7,320 1.8%California 7,882 7,905 -0.3% 82,870 79,664 4.0%Hawaii 192 190 1.1% 1,770 1,754 0.9%Nevada 369 353 4.5% 4,520 4,331 4.4%New Mexico 343 340 0.9% 1,448 1,386 4.5%Oregon 605 614 -1.5% 18,287 17,806 2.7%Texas 4,694 4,559 3.0% 23,100 22,821 1.2%Utah 316 320 -1.3% 1,849 1,846 0.1%Washington 1,148 1,072 7.1% 7,300 6,861 6.4%

West Total 16,593 16,378 1.3% 149,005 144,022 3.5%

U.S. Total 54,120 53,615 0.9% 393,226 372,563 5.5%

NAIL SALONS2004 2003 % Change

LICENSED TECHNICIANS2004 2003 % Change

The information contained in this chart has been verified as of September 20, 2004 by NAILS’ research staff andeditorial department. The source of the information for the number of beauty salons and nail salons is InfoUSAlists (2004), the state boards of cosmetology, and NAILS estimates.

regional analysis


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When you left schooldid you feel youknew enough aboutthe variety of nailproducts that wereavailable to you?

We sought to understand moreabout the “school experience”of nailprofessionals and how prepared forsalon work they felt upongraduation.We asked veteran nailtechnicians what they felt they knew(and didn’t know) when they werereleased into the working world andwhat products they used andwhether they have stayed loyal tothose.This data is from an e-mailsurvey to 300 professionals done inMarch 2004.

Which statements were TRUE for you when you finishedschool? (% of those that agree with the statement)

YES 25% NO 75%Do you remember which

brand or which acrylicsystem you used in school?YES 87% NO 13%Do you still use that brand?

YES 31% NO 69%If you do not use that brand,

why did you change brands?

61% It wasn't a good product; it didn't work well,it wasn't a name brand, it was hard to use.

16% I no longer do acrylics; I've switched to wraps or gels.

14% It was an odorless system and I found it difficult to use.

5% The product is hard to find or not made anymore.

2% I just wanted to try different products.

7% Other reasons.

78% I wanted to learn more about the nail industry.

68% I wanted to continue taking classes to improvemy technical skills.

60% I was concerned that I was still too slow to work on clients.

58% I felt nervous about working on paying clients.

52% I didn't know how much continuing educationwas available once I finished school.

50% I didn't know how to build a clientele on my own.

48% I had no idea how many products were availableto professionals.

47% I felt I needed to know more about business.

45% I have taken two or more continuing education classes since graduation.

42% I was confident about starting my nail career.

40% I didn't know what other career options wereavailable to me besides working in a salon.

23% I felt completely prepared to work in a salon for paying clients.

22% I didn't know how to go about finding a job in a salon.

18% My school helped us find jobs in salons and get started.

schools

Do you remember whichbrand or which gel system

you used in school?YES 32% NO 68%Do you still use that brand?

YES 53% NO 47%If you do not use that brand,

why did you change brands?

50% We didn't learn gels in my school.

22% I found a better system.The gel system in school was inferior.

19% I don't do gels now.



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have computeraccess* 78.5%

have Internetaccess** 96.4%

average time spent onlineper week* 5.3 hours

FOR WHICH OF THE FOLLOWING FUNCTIONS DO YOU USE A COMPUTER?

accessing the Internet 77.3%

creating promotional material 67.6%

managing client records 47.2%

managing inventory 26.7%

scheduling/booking (clients or staff) 28.2%

payroll 19.8%

WHERE DO YOU ADVERTISE?

yellow pages 53.2%

local newspaper 52.9%

direct mail 26.2%

school papers 24.9%

outdoor advertising (benches,billboards) 19.4%

websites (including referral sites) 16.1%

salon newsletter 12.3%

local magazines 12.3%

radio 9.8%

television 4.0%

other 4.5%

60.8% use a computer for their business

63.7% advertise their business

of those with computer access saying yes

*Source: 2003-2004 Big Book **Percentage of those with computer access saying yes

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istic

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istic

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Sources:1. nailsmag.com poll, August 2004, 202 responses2. nailsmag.com poll, April 2004,166 responses3. nailsmag.com poll, September 2003, 150 responses4. nailsmag.com poll, September 2003, 223 responses5. nailsmag.com poll, August 2003, 72 responses6. nailsmag.com poll, July 2003, 112 responses7. nailsmag.com poll, July 2002, 72 responses ■

34% 1

40% 2 to 4

26% More than 4

How many salonshave you worked in?1

Daytime during the week 17%

Evenings during the week 22%

Weekends (both Saturday and Sunday) 20%

Saturday 37%

Sunday 1%

Other 3%

When is your salon the busiest? 2

2% By going to trade shows

3% Other

7% I try to attend a fewclasses a year

25% By reading industry publications such as NAILS

63% All of the above

How do you keep up to datewith the nail industry? 3

If you had a friend or relativeplanning on becoming a nailtech,how would you react?4

55% Enthusiastically encourage

34% Encourage

4% Reserve comment

5% Discourage

2% Enthusiastically discourage

How strong have your retailsales been this year? 5

26% Sales are up from the same time last year

19% About the same as last year’s figures during this time

35% Sales are down

19% Don’t know

Does your salonhave a website? 6

39% Yes

26% No, but we’re planning oncreating one soon

35% No, we won’t have a websiteany time soon

How often do you RAISE your PRICES? 7

21% Once a year

33% Every two or three years

15% Every four or five years

24% Have never raised my prices

6% Other

quick studyEvery month we run aquestion by our readers toget a quick reaction.Thesetidbits were the result ofseveral web polls we've done over the last 18months.The figures are notsubject to the same scrutinythe rest of our statistics are,but we thought the data was interesting enough toshare.To participate in ourmonthly poll, visit ourwebsite at www.nailsmag.com.



T O E - T A L L Y I N L O V E !


nails big book 2004-05

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