Nail Industry Trends 2016 Nailpro Essentials issue. I just finished studying the Nailpro survey for 2016 and there are some numbers and trends that jumped out at me. Be sure to read the entire issue, at the same time here are some of the key points as I see them. Overall the nail industry is strong and at the same time it is changing. To capitalize on the growth nail techs and nail salons/departments need to evaluate how these changes can be leveraged in the business to grow. First the independents accounted for 60% of the respondents in this survey and 34% were owners or employees. 6% were others….okay what ever that means. The survey showed independents were independent because they felt they could make more money, set their own schedules, and have more control over their time and schedules. At MIKAL salons have surveyed clients and one of the big complaints about independents is that they don’t keep a set schedule and tend to move appointments to accommodate personal scheduling needs. Interesting…. Income showed 69% of independents earn under $550 a week. That tends to show that unless you are well established with a large client base being an independent to make more money is not realized. The BIG FOUR in services are natural manicure 92% provide and charge $20 booking 34 minutes, Pedicure 89% provide and charge $33 booking 48 minutes, Nail art 84% provide and soak-off gel/gel polish 83% at $32 booking 55 minutes. The dollars per hour do not seem to correspond with the services times booked. Check your service times and make sure the time booked earns the dollars per hour desired. Add-ons are a great way to increase the client ticket and satisfaction level (who does not like a paraffin treatments?) The average prices for paraffin $11, nail strengthener $10, anti-fungal $14 and callus softener $13. Are you taking advantage of these up sell opportunities and have them in your booking script and as a pop-up recommendation on your on-line booking? The Customer Service portion of the survey was interesting. The techs complained about guests bringing companions, cell phone use, and lateness. The clients complained about the prices, waiting for service, sanitation and injury to the nails. A survey buy nail techs or salons to the clients using SurveyMonkey.com with questions on these topics would help each tech/salon concentrate on improving the client experience. Overall the information is interesting and can be used to help highlight areas to look at in the business. Fred Dengler CEO MIKAL Corporation fredd@mikal.com 800-448-5420

Salon Owners management and marketing CDs from MIKAL

GET OUR SHOW PRICES NOW -CALL 800-448-5420 AMAZING MARKETING CD 60+ Marketing Ideas, 14 month marketing Calendar, How to Create Unique Selling Points and Irresistible offers, 8 page Referral Contest Plan, the Hint Kit program, Salon and Spa Surveys, Year Round Gift Card Sales Ideas, 85 page Signage book, 3 – Marketing Presentations by Fred Dengler! SHOW SPECIAL $40.00 Website Price $69.00 - save $29.00 SuperCharge your Front Desk CD Complete Front Desk operations manual, Price Check, UpSell and More Scripting for Profits, complete Front Desk Presentation Slide Show, Receptionist Classified Ads, Receptionist and Salon/Spa Coordinator Job Descriptions, Payroll and Goal Setting Ideas, Terror on the Phones booklet. SHOW SPECIAL $50.00 Website Price $60.00 - save $10.00 NEW SALON OPENING CD Do it right the first time (or Re-Invent right the second time) with our information packed CD! New Salon Opening side presentation, Grand Opening Ideas, Profit Generating Workbook – 43 pages! Salon and Spa Job Descriptions, Opening Checklist, 10+ Funding Ideas, Planning Spreadsheets and much more! SHOW SPECIAL $15.00 Website Price $50.00 - save $35.00 Staff Up! & Salon Policy Manual CD A comprehensive employee policy and procedure manual on CD to edit and use, Ideas to DOUBLE your Classified Ad response, 20 Effective Interview Questions, Staff Up! Slide show class, job descriptions, Compensation Worksheets, Goal Setting Ideas, Training Tips and much more! SHOW SPECIAL $10.00 Website Price $59.00 – save $49.00 CD Package Deals Buy more – Save $ Hat Trick Pick ANY 3 CDs $60 You Save up to $50 more! Fab Four Deal all 4 CDs$90 Now Save another $35 more!

Salon Owners Barter for Profits!

MIKAL BARTER IDEAS MIKAL knows that in today’s economy, salon owners sometimes save money through bartering to get products or services they need. The IRS wants to remind salon owners that the fair market value of property or services received through barter is taxable income. Bartering is the trading of one product or service for another. Usually there is no exchange of cash. However, the fair market value of the goods and services exchanged must be reported as income by both parties. MIKAL allows you to track barter through the Accounts Receivable system. Set up the barter client in the client system and when you give them services/retail put the sales transaction on accounts receivable. This will keep track of what you have done for them. Also make an item call flowers or pizza or what ever as an accounts receivable payment item and use it with the client when they “pay” you by providing their products. This way you can see if the relationship is balanced and also give the barter partner information on how the relationship is going. You can also make Barter a pass thru sale by using the paytype for pass thought. This does not give you the a/r balance info but does show activity for the barter client. Pass through sales have different features and you should consult with MIKAL when setting this feature up. Call MIKAL at 513-528-5100. Here are four facts on bartering: 1. Organized barter exchanges A barter exchange functions primarily as the organizer of a marketplace where members buy and sell products and services among themselves. Whether this activity operates out of a physical office or is internet-based, a barter exchange is generally required to issue Form 1099-B, Proceeds from Broker and Barter Exchange Transactions, annually to their clients or members and to the IRS. 2. Barter income Barter dollars or trade dollars are identical to real dollars for tax reporting purposes. If you conduct any direct barter – barter for another’s products or services – you must report the fair market value of the products or services you received on your tax return. 3. Tax implications of bartering Income from bartering is taxable in the year it is performed. Bartering may result in liabilities for income tax, self-employment tax, employment tax or excise tax. Your barter activities may result in ordinary salon income, capital gains or capital losses, or you may have a nondeductible personal loss. 4. How to report. The rules for reporting barter transactions may vary depending on which form of bartering takes place. Generally, you report this type of salon income on Form 1040, Schedule C Profit or Loss from Business, or other business returns such as Form 1065 for Partnerships, Form 1120 for Corporations or Form 1120-S for Salon Corporations. For more information, see the Bartering Tax Center in the Business section at www.irs.gov. NOTE: always consult with your accountant or tax attorney when creating a barter situation so you are in compliance with tax laws. MIKAL does not recommend or support any specific barter policies. MIKAL only provides a way of tracking barter within the MIKAL software. Call MIKAL with any questions 513-528-5100. See out blog at www.mikal-salon-software.com for more management ideas!