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12 New Lipsticks
12 New Eyeshadows
3 New BlusheS
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in Essie and Opi

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WEST

13 11_ CO CO n/11 IF I IE I_.

S5 7 —7323

Orchard Lake Road in the
West Bloomfield Plaza

O AK DARK

547-669

24695 Coolidge Hwy. at
10 Mile Rd. Plaza

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ANN ARBOR

LOCATIONS

4/9
1999

271 WEST MAPLE
DOWNTOWN BIRMINGHAM
248.258.0212

64 Detroit Jewish News

:

• Borders Books
• Barnes & Noble
• Hillel House
• Mainstreet Books
• Michigan Union
Bookstore
• Nicola's Books,

(A Little Professor Books Co.)

°ZingerMan'S

the country, Nailco boldly opened a
distribution center in Kennesaw,
Georgia, "the headquarters of one of
our biggest competitors," said
Gaynor, to reach the southeastern
states more easily. The resulting sales
have been encouraging, he added.
Another distribution center is
planned for California.
To make things more convenient
for salon professionals, many of
whom need to buy items for use in
their business each day, the Industry
Source division opened its first ,
branch store, in Grand Rapids, last
fall, and a second store at the renovat-
ed headquarters complex in January.
Five more stores are planned for
around the state before the end of
1999, all featuring Nailco's best-sell-
ing products (not for sale to retail
customers).
"These stores are targeting our corn-
petition's strongholds, and places
where we have a heavy concentration
of our clients," Gaynor said. "I con-
stantly study other catalogs and
industry magazines, visit the manu-
facturers, attend their trade shows
around the country, talk to clients,
and try my best to keep up with
trends. For example, the most popu-
lar upcoming nail colors will be blues
and neutrals.
"This industry is dominated by
women ... the salon operators, their
nail techs and their beauty aids cus-
tomers. They want prompt and high-
quality service and a wide range of
products, and that's what we give
them."
But men are playing a burgeoning
role in the beauty industry. Gaynor
said they are mainly baby boomers,
who are getting older and still want
to look good, plus the male who is
undergoing a mid-life crisis and wants
to sort of renew himself. Many salons
have designed areas especially for
men, who may not want to be seen
getting their hair colored."
Another Nailco division is the Salon
& Spa Design Studio, where two full-
time employees help companies
design new salons from concept to
competition. "With this service, we
cover just about all aspects of the pro-
fessional salon business," said Gaynor.
Despite the Nailco successes over
the past 14 years, the company is not
without problems. "The salon busi-
ness has been up and down in recent
years, and the industry was a bit soft
last year, especially in Vietnam," said
Gaynor. "Salons tend to open for
short periods, then go out of business,

which doesn't help our situation. One ,
reason for the volatility is that there's
often a shortage of nail technicians,
who can make more money in other
jobs."
To confront these and other prob-
lems, Gaynor's organization, using an
outside consultant, spent 20 hours a
week over the past year taking stock
of the operation and "just re-engi-
neering the business in general." He
said, "We benchmarked other compa-
nies, analyzed our competition, and
did our best to forecast the future of
the beauty aids industry.
"The result was to streamline the
operation, reduce costs, pinpoint our
sales promotion efforts, and place
strong emphasis on managing the
growth of our business. We always
proceed carefully onto the next level
of growth to make sure we have
enough resources to get the job
done.
Nailco hired an ad agency, Solomon
Friedman Advertising, and commis-
sioned the production of a marketing
and promotional video, featuring
Karen Newman, who sings the
national anthem at Detroit Red
Wings hockey games.
Taking a cue from auto industry
suppliers, Nailco became an ISO
9002-certified company, achieving the
international standard for quality. The
company's quality measures are audit-
ed continuously. Auto manufacturers
usually only buy from Ql and' ISO-
certified suppliers and that is becom-
ing prevalent in the beauty aids
industry. "Our employees worked
hard to accomplish this distinction
and are very proud of it,"said Gaynor.
Nailco also is active in community
affairs, sponsoring a "Support the
Kids" week for the St. Vincent &
Sarah Fisher Center for abused chil-
dren and families in crisis. The com-
pany matched client donations for
one week and also donated 5 percent
of sales for one day to make the
largest single gift to the center in
1998 — $16,000.
During the year-end holiday period,
Nailco and employees contributed
6,400 pounds of food to Forgotten
Harvest, which feeds hungry and
homeless people in the Detroit area. (--/
Nailco also donates funds to organiza-
tions doing cancer research.
Gaynor and his wife, Teresa, have
three sons. She is Nailco's vice presi-
dent of human resources. He is on
the board of Temple Shir Shalom and
serves on a number of synagogue
committees.

',