Hair and Beauty Salons are increasingly looking for ways to differentiate themselves in an increasingly competitive market. While the borader salon industry has been contracting at a rate of 2% a year over the last three years, the organic salon segment increased by 16.7% in the same time period. As importantly, organic salon service fees are 12% - 16% higher than their chemical based alternative while the product cost is the same. Your clients want to feel good about looking beautiful. Shouldn't you be providing that for them?

1. The
organic
opportunity
right
in
front
of
your
eyes
Sco3
Mitchell
CEO,
Organic
Salon
Systems

2. Introduc=on
• Serial
entrepreneur
–
founder
of
several
public
companies
traded
on
the
NASDAQ
and
NYSE
• Exper=se
in
sales,
marke=ng,
Internet
technologies,
and
organiza=onal
development
• Founder
&
Principal
of
Mitchell
Capital
Partners
• Two
Bachelor
Degrees:
Economics
&
Psychology
• Three
Master
Degrees:
Business
Administra=on,
Computer
Science,
Organiza=onal
Development
• Former
Graduate
Business
Professor
• Dedicated
to
the
pursuit
of
several
philanthropic
endeavors
and
causes

3. Building
Blocks
of
a
Successful
Salon
Focused
Niche
+
Marke1ng
+
Passion
=
Profit
&
Growth
“Most
businesses
fail
because
they
lack
a
true
differen6a6ng
factor.
Many
of
today’s
small
businesses
largely
compete
in
a
“service
commodity”
industry,
where
most
professionals
are
trained
the
same
way,
have
similar
skills,
and
offer
similar
services.
The
only
way
to
compete
in
that
type
of
marketplace
is
by
refusing
to
allow
yourself
to
be
compared
to
your
compe66on
by
differen6a6ng
your
service
in
such
an
extreme
way
that
comparison
is
simply
impossible.”
Sir
Richard
Branson
Founder
–
Virgin
Group

4. Why
Organic
Ma3ers
–
Focused
Niche
• The
organic
salon
segment
has
been
growing
at
16.7%
year-­‐
over-­‐year
for
the
last
three
years
while
the
broader
salon
sector
has
been
contrac=ng
by
2%1
• The
organic
beauty
industry
has
been
growing
at
a
shocking
average
rate
of
15%
for
the
last
15
years2
• Although
78%
of
U.S.
adults
said
they
would
prefer,
and
pay
a
reasonable
premium
for,
organic
or
natural
beauty
products3;
only
15%
of
the
market
caters
to
this
niche2
“Local,
socially
responsible,
environmentally
friendly
businesses
will
always
compete
beJer
than
big
global
conglomerates
in
the
natural
and
organic
markets”
–
John
Mackey,
CEO
of
Whole
Foods
1. J.P.
Morgan
2010
Analyst
Report
on
Emerging
Trends
in
the
Health
and
Beauty
Industry
2. Nutri=onal
Business
Journal
on
Natural/Organic
Trends
in
Beauty
Report,
2010
3. A.C.
Nielson
and
Greenfield
online

5. Why
Organic
Ma3ers
-­‐
Marke=ng
• Loyal
to
their
Salons
-­‐
du=fully
devoted
to
salons
that
they
share
common
values,
beliefs,
and
a
shared
“ethos”
with
• Less
Price
Sensi=ve
–
understand
and
accept
that
organic
products
and
services
come
at
a
premium
and
appreciate
the
value
of
them
• More
Focused
on
Salon
Experience
–
they
want
to
feel
good
about
looking
great
• Exceedingly
Product
Focused
–
ingredients
ma3er
• Easily
Addressed
–
gravitate
towards
community
ac=vism
• Ac=ve
Client
Referrers
–
Fiercely
commi3ed
to
helping
and
enlightening
others
through
referrals
to
healthier
alterna=ves
• Tend
to
be
significantly
more
educated,
influen=al,
and
affluent
than
the
general
popula=on
• Extremely
socially
conscious
and
environmentally
responsible
• Prefer
small
local
salons
over
na=onal
chains
or
conglomerates

6. Why
Organic
Ma3ers
-­‐
Passion
• 76%
of
U.S.
employees
ranked
“feeling
good
about
the
company
they
worked
for”
as
“extremely
important”
up
12%
from
just
three
years
ago
• In
2010
Hewi3
Associates
reported
that
the
“truly
talented”
and
“truly
crea=ve”
would
prefer
to
make
less
but
work
for
a
socially
conscious
company
• A
2009
Covey
Ins=tute
research
report
demonstrated
that
consumers
can
sense
when
employees
are
happy
with
the
companies
they
work
for
and
sa=sfied
with
their
jobs
• A
2010
survey
of
recent
Harvard
Business
School
graduates
indicated
that
“personal
convic=on,
growth,
and
purpose”
was
the
number
one
factor
they
will
forgo
compensa=on
for

7. Why
Organic
Ma3ers
-­‐
Profits
• On
average,
salons
charge
between
12%
and
16%
more
for
organic
services
than
tradi=onal
services
• On
average,
product
costs
represent
less
than
10%
of
overall
service
fees
• Organic
treatments
typically
enable
clients
to
get
treated
more
frequently
(e.g.
grey
re-­‐growth)
• Adver=sing
spend
is
reduced
significantly
by
the
stronger
tendency
for
clients
to
refer
others
and
the
ease
of
addressing
a
targeted
audience
rather
than
the
broader
public
• Clients
are
much
more
eager
to
visit
the
salon
more
omen
if
scalp
irrita=on,
toxic
fumes,
and
other
un-­‐pleasantries
are
avoided
• Although
slightly
more
costly
to
produce,
organic
products
produce
a
healthier,
superior
result
without
damaging
the
cu=cle
or
sacrificing
the
integrity
of
the
hair’s
structure

8. Building
Blocks
of
a
Successful
Salon
Focused
Niche
+
Marke=ng
+
Passion
=
Profit
&
Growth
Focused
Niche
–
Fasted
growing
segment
in
an
otherwise
contrac=ng
industry
Marke=ng
–
Vacuum
of
demand
exists
in
a
growing
market
of
exceeding
desirable
demographics
that
is
easy
to
access
and
has
the
financial
means
to
drive
your
salon’s
prosperity
and
growth
Passion
–
Making
a
difference
in
the
world
in
a
meaningful
way
by
enabling
people
to
feel
good
by
you
making
them
look
and
feel
beau=ful
Profit
&
Growth
–Servicing
a
market
that
welcomes
higher
price
points
while
u=lizing
compe==vely
priced
products
which
enable
you
to
service
your
clients
as
omen
as
they
would
like
rather
than
as
omen
as
their
damaged
hair
will
allow!

9. Organic
Salon
Conversion
Example
Business
Case
–
Corner
Salon
(A
Good
Salon
Business)
• 5
Stylist,
1
Owner/Manager/Stylist
• Each
see
6
(36
total)
clients
per
day
• Salon
is
open
5
days
per
week
• Average
=cket
per
client
is
$55
with
average
15%
in
=p
• Cost
structure
includes
(as
a
%
of
revenue)
– 10%
for
product
– 15%
for
adver=sing
– 40%
for
payroll
– 25%
for
overhead
• Salon
client
base
is
growing
at
5%
year
over
year

10. Organic
Salon
Conversion
Example
Improvement
Assump1ons
–
5
Year
Organic
Plan
• Because
some
stylist
are
interested
in
working
in
an
organic
salon
for
health
reasons,
the
salon
is
able
to
add
1
stylist
in
2012
and
1
in
2014
• Instead
of
a
5%
client
growth
(actual
industry
metric
for
non-­‐organic
salons
is
-­‐2%),
the
salon
begins
to
realize
a
15%
client
growth
rate
(actual
organic
metric
is
16.7%)
• Instead
of
averaging
15%
in
=ps,
the
=ps
begin
to
average
20%
because
the
demographic
is
more
affluent
and
be3er
connected
to
the
salon
• The
salon’s
service
prices
increase
by
12%
over
=me
to
account
for
the
organic
treatments
(average
increase
ranges
between
12%
and
16%)
• Cost
structure
remains
the
same
except
adver=sing
spend
decreases
slightly
(from
15%
to
10%)
because
of
an
increase
in
client
loyalty
and
a
reliance
on
the
stronger
referral
network

11. Net
Profit
Compara=ve
Analysis
Conclusion:
The
owners
of
Corner
Salon
could
make
almost
$900,000
more
net
profit
over
the
next
5
years
by
conver=ng
to
Corner
Organic
Salon.
In
this
real
estate
market,
you
can
buy
quite
a
vaca=on
home
with
that
money!

12. Don’t
Spend
That
Money
Too
Soon
 These
are
lomy
assump=ons!
 But
what
if……
 We
were
able
to
help
realize
even
some
of
them?
 That
would
make
a
BIG
difference!
 If
you
don’t….
Then
what’s
your
plan?
 If
you
don’t….
How
long
will
it
take
for
your
compe==on
to
make
the
change?

13. We’re
Here
to
Help!
• In
Salon
Promo=on
Program
–
gim
cer=ficates,
prescrip=on
pads,
referral
cards,
client
loyalty
program,
pre-­‐booking
cards,
window
clings,
shelf
talkers,
aprons,
caps,
pins,
t-­‐shirts,
cloth
retail
bags,
posters,
etc.
• Coopera=ve
Adver=sing
• Proprietary
Organic
“Salon
Liaison”
program
• Online
Salon
Presence
and
Search
Engine
Op=miza=on
Program
• Salon
Marke=ng
Educa=on
and
Consulta=on

14. We
Want
to
be
on
Your
Team!
I’d
love
to
introduce
you
to
our
company,
our
products,
and
our
team!
Let’s
get
started….

15. Organic
Salon
Systems
Mission
To
provide
professional
hairdressers
with
high
performance
hair
products
which
maximize
the
use
of
gentle,
nourishing
and
natural
ingredients
while
minimizing
the
necessity
for
harsh
or
damaging
chemicals.
With
these
healthier
products
and
be3er
informa=on,
we
hope
to
bring
about
superior
results,
increased
competence
and
a
safer
salon
environment
for
all
concerned.
To
accomplish
our
mission,
we
vigorously
embrace
our
company
ethos.

16. Organic
Salon
Systems
Ethos
• To
only
distribute
the
highest
performance,
healthiest,
most
natural,
and
gentlest
products
available;
and
• To
con=nually
recognize
that
the
best
way
to
grow
our
business
is
by
helping
our
clients
grow
theirs;
and
• To
fully
disclose
all
product
ingredients
and
act
with
transparency,
honesty,
and
integrity;
and
• To
never
divert
our
product
lines
or
allow
them
to
be
sold
to
non-­‐
professionals;
and
• To
maintain
an
ethical
environmental
policy;
and
• To
not
tolerate
any
products
ever
tested
on
animals;
and
• To
train,
educate,
and
provide
informa=on
which
will
enable
the
industry
and
our
clients
to
become
healthier
while
improving
their
service
quality;
and
• To
provide
world-­‐class
service
to
our
clients
and
always
strive
to
become
the
best
at
what
we
do
in
every
regard.

17. Our
Stance
Against
Diversion
• Diversion
enables
companies
to
charge
a
high
premium
to
salon
professionals
for
the
“privilege”
of
being
robbed
of
any
equitable
value
in
their
business
by
those
very
companies
• Any
manufacturer
denying
direct
responsibility
and
knowledge
of
diverted
product
is
simply
incredulous
• “Big
Beauty”
companies
prey
on
the
trus=ng
salon
professional
to
build
their
brands
up,
while
making
a
hemy
profit,
only
to
inten=onally
divert
their
products
to
the
consumer
market
thereby
jeopardizing
the
clients
of
the
salon
professional
and
causing
the
long-­‐
term
value
of
their
business
to
quickly
deteriorate

18. Organic
Salon
Systems
Products
• Free
from
ammonia,
parabens,
formaldehyde,
resorcinol,
and
thioglycolates.
• Contain
Cer=fied
Organic
Ingredients
(cer=fied
by
the
United
Kingdom
Soil
Associa=on)
• Exceeding
all
European
Union
standards
regula=ng
cosme=cs
and
beauty
products
• PETA
cer=fied
as
being
100%
cruelty-­‐free
and
vegan
• Fair-­‐Trade
accredited
and
cer=fied

19. Organic
Color
Systems
(Color)
• 65
intermixable
colors
• Superior
grey
coverage,
cleaner
blondes,
&
beau=ful
reds
that
fade
on
tone
• No
damage
to
the
hair
cu=cle
allowing
for
a
far
healthier
and
lavish
result
• Up
to
3
levels
of
lim
with
color
&
7
levels
of
lim
with
lightener
• True
to
color
chart
results
• Semi,
demi
or
permanent
results
• Longer
las=ng
tonal
values

20. Organic
Curl
Systems
Organic
Curl
Systems
is
an
innova=ve
perm,
straightener,
and
relaxer
that
is
both
ammonia
and
thioglycolate
free,
while
containing
cer=fied
organic
extracts.
It
produces
a
bounce
and
curl
forma=on
that
is
healthy
and
looks
natural.

21. Organic
Care
Systems
Organic
Care
Systems
not
only
is
the
perfect
back
bar
for
the
color
line
but,
your
clients
will
also
love
to
take
them
home
to
maintain
their
hair
between
visits.
These
products
contain
no
animal
products,
parabens
or
SLS.
They
are
never
tested
on
animals
and
are
made
with
cer=fied
organic
ingredients.
The
Organic
Control
and
Connect
lines
give
all
the
styling
hold
and
manipula=on
you
have
come
to
expect
without
the
use
of
heavy
chemicals
or
plas=cs.
They
give
great
shine
and
a
natural
feel,
never
drying
bri3le
or
hard.

22. KeraGreen
KeraGreen
is
a
revolu=onary
new
formaldehyde-­‐free
organic
kera=n
system.
It
includes
a
full
line
of
treatments,
shampoos,
condi=oners,
and
serums
providing
a
more
natural,
organic,
healthier
and
be3er-­‐performing
alterna=ve
to
formaldehyde-­‐
based
Brazilian
Kera=n
Treatments.

23. Hairmonics
Hairmonics
Turbo
Ac=vators
from
Organic
Salon
Systems
offer
superior
color
load
and
cu=cle
penetra=on.
They
help
to
achieve
longer
las=ng
color
with
improved
tonal
value
and
color
reten=on.
This
product
is
great
for
gray
hair
and
also
allows
you
to
process
normal
color
in
about
half
the
=me.
Available
in
5,
10,
20,
30
and
40
volume.

24. Malibu
Wellness
Malibu
Wellness
products
use
a
patented,
fresh
dried
vitamin
complex
that
is
water
ac=vated
to
normalize
the
ph
of
the
hair
and
scalp
and
remove
minerals
and
oxidizers
to
ensure
consistent
and
superior
salon
services.
Great
for
areas
and
salons
with
hard
water
condi=ons.

25. What
Makes
Us
Different
• Centralized
Business
Model
• Unprecedented
educa=on
program
• Truly
Non-­‐Diverted
• Aligned
Interest
“Partnership”
–
truly
want
to
grow
and
build
embedded
value
in
your
salon
business
• Relentlessly
Innova=ve
• Excep=onally
Strong
Company
Ethos
• High
Performance
Bou=que
Niche
in
Fastest
Growing
Salon
Segment
• Excep=onal
leadership

26. Get
Started
Now
• Starter
Packages
–
Risk
Free
with
a
30-­‐Day
Money
Back
Guarantee
– Try
our
full
color
line
including
retail
sizes
of
our
care
and
control
lines
or
our
complete
KeraGreen
package
– Call
and
place
your
order
today
and
get
40%
off
on
packages
and
try
it
for
30
days.
If
you
don’t
LOVE
it
for
any
reason,
send
it
back
and
I
will
send
you
a
full
refund
regardless
of
what
you
used
Organic
Salon
Systems
Online:
h3p://www.OrganicSalonSystems.com
Toll
Free:
(888)
312-­‐4744
ext
903
Fax:
(727)
585-­‐2300
Support:
h3p://www.OrganicColorSystems.com