HALF OF FAMILY INCOME

sponsored by 2016-2017 Industry STATISTICS Nail Techs Earnings Represent MOST NAIL TECHS SAY THEY HAD A GOOD SCHOOL EXPERIENCE The Majority of Nail Techs Are POSITIVE ABOUT THE INDUSTRY HALF OF FAMILY INCOME BIGGEST CHALLENGE FOR YOU? BUILDING AND RETAINING CLIENTELE SPONSORED BY

CREATING THE BIG BOOK IS [MOSTLY] A LABOR OF LOVE I ve said it many times before, but I have a love-hate relationship with the annual Big Book. Not only is it a lot of work because it s an extra issue, it s a lot of pressure. We know how salon owners, nail technicians, industry researchers, manufacturers, distributors, associations, and lots of other interested parties use this data, so it s critical to get right. I was at a meeting recently where the marketing director of a major product company had our Big Book heavily tabbed with Post-It notes and was referencing it frequently in her marketing plan. When I see something like that, or I hear from a nail technician who s thinking about opening her own salon and wants to know how much commission to pay her technicians, I want to provide the absolute best information possible so both of those professionals can make data-driven decisions. So not only does everything have to add up (literally), we want to provide context for the information. It s interesting to note, for example, that 88% of you buy your nail supplies from a fullservice professional-only dealer, but what makes that information useful in addition to interesting is the fact that that number has remained flat while other outlets like online distributors have grown. It will come as no surprise to most of you that the rollercoaster that is social media shows no sign of calming down. A social media platform that two years ago was indispensable to your business might this year be outright useless. Keeping up with those changes is hard for salon professionals, on top of the challenges of demanding clients (and in some cases, a dwindling number of clients), technical skills, business regulations, staffing issues, taxes, and juggling a family and personal life. I feel for you and want to provide you with resources that help, that reassure, that verify. Thank all of you who responded to our request to answer the often personal questions on our annual survey. I enjoy seeing your responses in the fill in the blank sections especially. Your responses are the basis of all this vital industry data. If there is any way I can return the favor to you by responding to YOUR questions during the year, write to me directly at Cyndy.Drummey@bobit.com. Working directly with our readers is definitely the love part of my love-hate relationship with this issue. Cyndy Drummey, group publisher/nails METHODOLOGY How do we get this data? > We did an online survey of our NAILS readership, online users, and social followers. > We surveyed the readers of VietSALON, our Vietnamese language publication for salon professionals. > We conducted monthly polls of online users of NailsMag.com. > We gathered the wisdom of our NAILS team, who travel regularly visiting salons and seeing nail technicians in their natural habitats. > We pulled third-party data, including from the Bureau of Labor Statistics, the U.S. Census Bureau, the state boards of cosmetology, business license databases, and others. 34 NAILS MAGAZINE 2016-2017 THE BIG BOOK HOW MUCH DOES IT MATTER TO YOU IF PROFESSIONAL NAIL PRODUCTS ARE SOLD EXCLUSIVELY TO PROFESSIONALS AND NOT THE GENERAL PUBLIC?* It matters a lot. I think professional brands should sell only to nail professionals. 81% When manufacturers sell their products at consumer outlets, it hurts my business because the products aren t considered special. 41% I only buy products from companies that I know are committed to nail professionals. 32% It bothers me a LOT. Our business is so competitive and we need every advantage we can get, including having exclusive products. 31% It makes me very mad when I see so-called professional brands in drugstores and other stores. 29% My services are professional and I offer a unique service, so it doesn t bother me if my clients can get the products themselves. They still can t do nails like I can. 20% There are so many places to get professional nail products that it doesn t matter that much. 5% I don t think it matters that much. 4% It doesn t matter to me at all where products are sold. 3% $9 billion $8 billion WHAT IS SPENT ON NAIL SERVICES? $8.54 $8.51 $8.53 2014 2015 2016 THANKS TO We thank the team at OPI for their devotion to the Big Book. Although OPI does not participate in the survey or the analysis, it is their underwriting of this project that allows us to do such deep research and present it in such an expansive way. We appreciate their support and we thank them for their vision. These are the only statistics of their kind in the professional nail industry and we salute our long partnership with OPI in maintaining this critical data. We first published this report in 1990 (under the name the NAILS Fact Book) and we celebrate the ways that the industry has changed and the ways it is enduringly, wonderfully the same.

Industry analysis HOW MANY PEOPLE DO NAILS IN THE U.S.? Good question. And the answer is, It all depends on who you ask. A drive through any town in the U.S. would lead you to believe that there are hundreds of thousands of nail salons in the U.S., practically one on every corner. But a glance through the records of the Bureau of Labor Statistics (the government agency that counts workers in most professions) would make you think that nail care was a growing, though still relatively small, career in the U.S. But we do ultimately come up with these numbers, which are admittedly only estimates, though made with experience, solid data, and a fair amount of intuition. We pull data from four business lists, our own circulation list, online databases, the state boards of cosmetology (ironically, not always the best source for this information), and then we compare our survey data to these lists to come up with something that feels right. The total number of active licenses in the U.S. that you see below to the right represents the best estimate of how many active licensees there are for nail care. We don t believe that more than half of those licensed are actually practicing. For this reason, we don t recommend dividing the number of nail techs by the number of salons to get a precise idea of salon staff size. As always we love to hear from our readers who are interested in more data or additional insights into this data. We offer this information simply as one of many tools to help you understand and run your business. active nail licenses in the U.S. 393,581 Did you have another career YES before you started doing nails? 63% IF YOU HAD HAVE ANOTHER CAREER BEFORE DOING NAILS, WHAT DID YOU DO? Administration/clerical 14% Medical 13% Retail 9% Hospitality/food service 7% Accounting/bookkeeping/finance 7% Hairdresser/other cosmetology or beauty arts 6% Education 6% General business management 5% Creative arts 5% Other 4% Customer service 3% Child care 3% * Armed services/government work, banking, driver, family business/freelance, electrician/electronic engineer, or graphic artist 2%* * Law enforcement, real estate, factory work, information technologies, insurance, travel industry, or human resources 1%* *Each career equalled 1%-2% 2016 # NAIL TECHS 2016 # NAIL SALONS Alabama 3,389 951 Alaska 977 174 Arizona 7,874 1,262 Arkansas 2,081 536 California 88,335 9,440 Colorado 8,308 1,026 Connecticut* 2,932 1,052 Delaware 212 207 Dist. of Columbia 206 107 Florida 31,882 6,293 Georgia 7,659 2,093 Hawaii 900 229 Idaho 1,933 309 Illinois 9,949 2,413 Indiana 5,367 1,023 Iowa 1,405 436 Kansas 1,080 509 Kentucky 2,634 616 Louisiana 4,311 1,284 Maine 1,103 171 Maryland 6,015 1,286 Massachusetts 14,795 1,622 Michigan 14,890 1,812 Minnesota 4,744 860 Mississippi 1,668 497 Missouri 5,352 986 Montana 154 184 Nebraska 1,103 379 Nevada 11,000 1,052 New Hampshire 1,108 250 New Jersey 7,870 2,575 New Mexico 1,118 380 New York 16,335 5,569 North Carolina 13,697 2,088 North Dakota 446 125 Ohio 12,332 1,863 Oklahoma 4,388 783 Oregon 11,551 691 Pennsylvania 11,444 2,663 Rhode Island 591 236 South Carolina 1,850 960 South Dakota 1,800 83 Tennessee 6,067 1,250 Texas 42,536 6,931 Utah 370 368 Vermont 204 69 Virginia 7,322 1,615 Washington 7,300 1,512 West Virginia 1,187 183 Wisconsin 1,474 1,023 Wyoming 333 114 393,581 69,738 >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 35

nail tech demographics Gender 3% male 97% female Which describes your family situation? * Married with kids 48% Married with no kids 17% Unmarried with kids 19% Unmarried with no kids 16% HOW OLD ARE YOU?* 25 or younger 2% WHAT IS YOUR NATIONALITY? 26-30 10% 31-35 10% 36-40 14% 41-45 18% 46-50 17% 51-55 14% 56-60 8% Over 60 7% 56% Vietnamese 36% Caucasian 8% Other HOW OFTEN DO YOU TAKE A VACATION? * HOW WOULD YOU DESCRIBE YOUR SALON? Nail salon 53% Full-service salon offering nails 33% Mobile or home-based salon 4% Day/hotel/destination spa 2% School 2% Other 6% Once a year 30% Twice a year 9% A few times a year 7% Every other year 19% I don t remember the last time I went on vacation. 35% 38 NAILS MAGAZINE 2016-2017 THE BIG BOOK *2015-2016 NAILS BIG BOOK

HOW MANY NAIL TECHNICIANS WORK AT THIS LOCATION (INCLUDING YOURSELF)? work habits 52% I am the only nail technician working at this location 18% 2 nail techs HOW FULL IS YOUR PERSONAL BOOK? * I am booked nearly 100% of the time. 20% Between 80% and 99% of the time. 27% Between 50% and 79%. 23% Between 30% and 49%. 8% Less than 30% but not empty. 9% I m just starting and building my book now. 13% 9% 3 nail techs 8% 4 nail techs 3% 5 nail techs 2% 6 nail techs 7% 7+ nail techs 9% of nail techs currently work at more than one salon. HOW MANY SALONS HAVE YOU WORKED AT IN YOUR CAREER? * One 26% Two 17% Three 11% Four 16% Five + 7% WHICH BEST DESCRIBES YOUR CURRENT EMPLOYMENT SITUATION? [1] Salon owner doing nails (not a booth renter) 37% Nail technician (booth renter) 24% Nail technician (employee) 15% Cosmetologist 4% Salon manager or nail dept. manager (doing nails) 2% Student or apprentice 2% Salon owner not doing nails 2% [1] Not every respondent completed question so total doesn t equal 100%. HOW LONG HAVE YOU BEEN DOING NAILS? Less than 1 year 7% 1-3 years 19% 4-6 years 12% 6-8 years 6% 8-10 years 7% 10-12 years 6% 12-14 years 3% 14-16 years 4% 16-18 years 3% 18-20 years 6% 20-22 years 5% 22+ years 22% >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 39

beauty school HOW WOULD YOU DESCRIBE YOUR OWN PERSONAL BEAUTY SCHOOL EXPERIENCE? Are you currently in a position that involves hiring new employees? YES 27% NO 73% I learned to pass the state board exam but I didn t feel ready to work in a salon. 28% I had a good or very good school experience. 29% My instructors were very helpful and provided the personalized attention I needed. 23% I felt like my instructors did not understand nails well enough. 14% I went to school so long ago, I don t remember much. 10% My overall experience was not good. But once I started doing nails in a salon, I learned what I needed. 18% I felt very prepared to work after beauty school. 18% Other 18% HOW WOULD YOU ASSESS THE RECENT BEAUTY SCHOOL GRADUATES YOU HAVE HIRED/WORKED WITH? (PLEASE CHOOSE 2) AT WHAT AGE DID YOU START BEAUTY SCHOOL?* I have no experience with recent beauty school graduates. 37% They are ill prepared to do work in the salon. 30% They know how to do the basic service techniques but don t know the more commonly requested services like nail art or gel polish. 30% They don t have good communication skills. 16% They are pleasant to work with because they are eager and enthusiastic about their careers. 18% They are fully prepared to do all requested work. 10% They have strong communication skills. 5% Other 10% 17 or younger 11% 18 8% 19 4% 20 4% 21 4% 22 4% 23 5% 24 3% 25 4% 26 3% 27 3% 28 4% 29 2% 30-39 24% 40-49 13% 50 + 4% WHEN HIRING A NAIL TECHNICIAN, WHAT QUALITIES OR CHARACTERISTICS ARE MOST IMPORTANT TO YOU? [1] Ability to work well in a team 64% Personality 62% Communication skills 59% Having enough experience to begin work immediately 56% Openness to training or retraining 55% Ability to work well individually 38% Awareness of new trends or techniques 37% Ambitious attitude 34% Ability to do advanced techniques 24% Being a new nail tech with no bad habits to break 13% Having strong references 10% Having a full book 10% Other reasons 5% [1] Respondents chose up to 3 reasons. 42 NAILS MAGAZINE 2016-2017 THE BIG BOOK

20% of our respondents have licenses in both nails and cosmetology. education 13% of our respondents have both a nail tech and an esthetician license. 77% No DO YOU BELONG TO A PROFESSIONAL BEAUTY ASSOCIATION? 8% Not a beauty association, but I belong to other business organizations. 15% Yes IN THE LAST 12 MONTHS, HOW MANY TRAINING EVENTS/COURSES HAVE YOU ATTENDED? 0 23% 1 19% 2 17% 3 15% 4 8% 5 7% 6 3% 7 1% 8 <1% 9 0% 10 <1% More than 10 3% WHAT LICENSE(S) DO YOU HAVE? Nail technician/manicurist 82% Cosmetologist /hairstylist 20% Esthetician 9% I am not licensed 4% WHAT IS THE highest level of school YOU HAVE COMPLETED?* Some high school Finished high school Some college/aa degree Finished college Some graduate school Finished graduate school 2% 28% 44% 17% 2% 7% have you attended any of these types of training in the last 12 months? Online training (including webinars or online video) 56% Tradeshow/conference 47% Class with dealer/distributor at the dealer s location 22% In-salon training 20% 54% more Do you expect to attend more or less educational events next year? 6% less 40% same Private training (in person or online) 20% Non-nail-related training of any kind (a business seminar, for instance) 17% Class with dealer/distributor NOT at the dealer s location 16% In-person networking event 15% Class with manufacturer NOT at the manufacturer s location 13% Class with manufacturer at the manufacturer s location 7% Other types 3% >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 43

nail tech income median: 40% average service income: $630 per week Average: 49% WHAT IS YOUR TOTAL WEEKLY SERVICE INCOME? $150 or less 12% $151 - $250 9% $251 - $350 13% $351 - $450 11% $451 - $550 15% $551 - $650 10% $651 - $750 5% More than $750 25% WHAT PERCENTAGE OF YOUR FAMILY S HOUSEHOLD INCOME DOES YOUR INCOME REPRESENT? Up to 10% 23% 11%-20% 10% 21%-30% 15% 31%-40% 12% 41%-50% 10% 51%-60% 6% 61%-70% 5% 71%-80% 3% 81%-90% 1% 91%-100% 15% ON AVERAGE, WHAT IS YOUR TOTAL WEEKLY INCOME? do you buy your own nail supplies? AVERAGE Service income $630 Tip income $115 Incentives or earnings from retail sales $82 46 NAILS MAGAZINE 2016-2017 THE BIG BOOK I provide all my own supplies, tools, and equipment. 74% The salon provides all my supplies, except my tools. 9% I provide some supplies; the salon provides some. 8% The salon provides all supplies, tools, and equipment. 8% Some other arrangement. 1%

55% of booth renters pay their rent weekly 40% of booth renters pay their rent monthly average booth rental $371/month DO YOU KNOW HOW MUCH IN PRODUCT COSTS IT ACTUALLY COSTS YOU TO DO A MANICURE? * 37% Yes 29% No 34% Kind of WHEN WAS THE LAST TIME YOU HAD A PRICE INCREASE (ON ANY SERVICES)? * WHAT KIND OF INCENTIVE DO YOU OFFER (IF YOU RE THE SALON OWNER) OR RECEIVE (IF YOU RE AN EMPLOYEE) FOR RETAILING? * I don t offer/receive incentive on retail sales 32% Commission on sales 25% This doesn t apply to me as I am a booth renter and sell products directly to my clients. 15% Discounts on salon services or retail products for myself 12% This doesn t apply to me as I am a booth renter and I do not retail products. 12% Points systems/awards 5% Bonus 5% (Respondents chose all that applied.) Less than a year ago 25% 1 to 2 years ago 25% 2 to 3 years ago 9% 3 to 4 years ago 5% 4 to 5 years ago 5% Never 14% Have had a price decrease 2% I can t remember 7% Haven t been in business long enough to have a price increase 8% which best describes your compensation system? I own the salon, but I also do nails and keep what I make from services I personally do. 28% I am a booth renter; I pay rent to the salon and I keep all my service fees. 24% I own the salon and pay myself a salary. 17% I am an employee and I receive just a percentage of my service fees (no salary). 9% I am a booth renter, I pay a percentage of service fees to the salon as rent. 3% I am an employee and my compensation is based on the number of clients I serve or the amount of business I do (for example, I receive a higher commission if I bring in more clients). 2% I am an employee and I receive a salary plus a percentage of my service fees. 3% I am a student. 2% I am an employee and I receive a salary. 4% Other arrangement 8% >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 47

Prices Do you charge for nail art? 57% Yes 32% Sometimes 11% No WHAT DO YOU CHARGE FOR GEL SERVICES IN YOUR SALON? 2015 Traditional gels (hard gels) $49.22 Traditional gels (hard gels) fills $34.03 Soak-off gels (initial service) $30.03 $29.96 Soak-off gels (fill) $29.13 Gel-polish (initial service) $28.07 $28.04 Gel-polish (fill) $25.55 AVERAGE PRICE 2016 HOW DO YOU CHARGE FOR NAIL ART? Different rates for different types of art 32% Per finger 23% Flat rate based on the complexity of the design 16% I don t have a formal system 10% N/A 7% I don t charge for nail art 6% Flat rate for nail art 4% Charge per minute that it takes, regardless of technique 2% Another way 1% Charge per color 1% average service prices 2016 2015 basic manicure $19.53 $20.20 deluxe/specialty manicure $29.00 $29.38 basic pedicure $32.09 $32.61 deluxe/specialty pedicure $43.79 $45.28 full set acrylics $38.41 $43.84 SERVICE PRICES THROUGH THE YEARS Service pricing is a key indicator of the health of the industry, especially a service industry. When what you are selling is your time getting a fair price for it is the difference between earning a profit and a decent living or not. This year we re looking at pricing from an inflation perspective; that is, if service prices on nail care kept pace with actual inflation, what would the prices be today? That means even if you had no price increase for 20 years, what would the real price be today if the service was worth the same as it was 20 years ago. 1995 price 1995 price adjusted for inflation What it actually costs todays 20-year price change adjusted for inflation Basic manicure $12.03 $18.92 $19.53 3.2% Basic pedicure price $23.32 $36.67 $32.09 12.5% Full set of acrylics $38.92 $61.20 $38.41 37.2% 50 NAILS MAGAZINE 2016-2017 THE BIG BOOK >>>

client demographics What is the demographic makeup of your salon clientele? Girls under 12 1% Girls 12-15 1% Girls 16-20 4% Women 21-25 11% Women 26-35 19% Women 36-45 28% Women 46+ 33% Men 3% of these client segments, where have you seen the most growth? * Increase in this segment Decrease in this segment Girls under 12 9% 10% Girls 12-15 13% 9% Girls 16-20 23% 8% Women 21-25 32% 10% Women 26-35 44% 11% Women 36-45 52% 8% Women 46+ 47% 7% Men 31% 7% Walk-in wait time * HOW MANY CLIENTS DO YOU PERSONALLY SERVICE PER WEEK? * 5 or fewer 15% 6-10 16% 11-15 15% 16-20 12% 21-25 10% 26-30 10% 31-35 6% 36-40 7% 41+ 6% Not applicable 3% HOW DO YOUR CLIENTS TYPICALLY MAKE THEIR APPOINTMENTS? * 39% Regular appointments (clients who schedule their appointments one by one) 25% Standing appointments (clients who come in every other Tuesday at 9, for example) 25% Walk-ins 11% Other 5 minutes or less 17% More than 5 minutes, less than 10 18% More than 10 minutes, less than 15 13% More than 15 minutes, less than 20 8% Between 20 and 30 minutes 6% 30 minutes or more 3% Salon takes no walk-ins 35% 52 NAILS MAGAZINE 2016-2017 THE BIG BOOK

OPEN BUSIEST DAY OF THE WEEK WHICH DAYS ARE YOU OPEN AND WHICH IS THE BUSIEST DAY FOR YOUR BUSINESS? * Saturday is the busiest day of the week. Sunday 12% 1% Monday 36% 2% Tuesday 60% 8% Wednesday 63% 9% Thursday 62% 28% Friday 60% 23% Saturday 53% 28% EDITOR S NOTE: THURSDAY AND SATURDAY WERE ESSENTIALLY TIED FOR BUSIEST DAY OF THE WEEK. how do you keep track of client records? I keep client cards. 42% I have a computerized client record-keeping system. 24% I don t have anything formal, but I do keep track or I just remember what I need to know. 14% I don t keep individual client records. 9% I keep informal paper notes. 8% Other 3% WHICH OF THE FOLLOWING DO YOU PRIMARILY USE FOR BOOKING APPOINTMENTS?* Traditional paper calendar/paper booking 46% Computer software 18% Smartphone app 10% Web-based booking service 10% Texting 13% Other <1% WHAT KIND OF CREDIT CARD PAYMENT DEVICES DO YOU USE? * (Select all that apply.) Computer payment software or app (like Square) 39% We don t use a device. 28% A credit card machine (not wireless) 21% A credit card machine (wireless) 12% It s part of our cash register. 5% *2015-2016 NAILS BIG BOOK >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 53

buying habits Where do you most frequently shop for nail supplies? Respondents chose top 3 most frequent sources. 2016 2015 I shop in a professional beauty supply store. 88% 83% I order from an online-only distributor (one that does not have a store). 60% 42% I buy direct from the manufacturer. 33% 36% I buy products at tradeshows. 25% 34% I order by phone from my dealer s catalog or deal sheets. 12% 30% For some items, I buy from non-traditional places that don t carry professional nail supplies (arts and crafts stores, for example). 16% 30% I shop at an open-to-the-public beauty store. 15% 23% Pro Beauty Store Online-Only Distributor Direct From Manufacturer Tradeshows Sales Sales Consultant Or Phone Call To Distributor Non- Traditional Store Open To The Public Beauty Store Not Applicable nail polish 64% 11% 7% 1% 5% 2% 5% 4% gels 51% 16% 14% 2% 5% <1% 3% 7% nail art products/ decals/embellishments 29% 38% 6% 4% 2% 8% 7% 5% sundries/disposables 49% 21% 2% 1% 4% 4% 7% 11% hand and skin care 52% 12% 7% 2% 5% 3% 4% 15% furnishings 23% 14% 6% 2% 3% 20% 3% 29% salon décor 12% 10% 5% 1% 1% 32% 3% 35% tools 58% 20% 7% 4% 4% 1% 4% <1% how often do you shop for nail supplies? Twice or more a week 7% Once a week 18% Three times a month 13% Every two weeks/twice a month 18% Monthly 28% Every other month 8% Quarterly 4% Less often than quarterly 4% HOW MUCH DO YOU SPEND PER MONTH ON NAIL SUPPLIES? $1 - $50 19% $51 - $100 33% $101 - $200 24% $201 - $300 14% $301 - $400 5% $401+ 5% 56 NAILS MAGAZINE 2016-2017 THE BIG BOOK

WHAT SERVICES ARE OFFERED AT THIS SALON? Salon Services Basic manicures 89% Nail art 85% Basic pedicures 83% Brush-on gel polish (using a polish-type brush) 83% Acrylics 71% Specialty pedicures 69% Specialty manicures 67% Soak off gels 67% Waxing 57% Eyebrow shaping 55% Nail Reconstruction 50% Full coverage nail art decals or coverings 50% Paraffin dips 49% Hair care 43% Skin care 36% Eyelash extensions 27% Eyelash tinting 24% Body massage 22% Wraps (any type) 23% Acrylic dip systems (or powder & glue extensions) 21% Reflexology 16% Other (Please Specify) 8% WHAT KINDS OF NAIL ART DO YOU OFFER? Handpainted 83% Swarovski crystals 67% Stamping 62% Chrome nails 52% Decals/nail coating 44% 3-D nail art 42% Airbrush 9% N/A 7% Other 5% DO YOU KNOW WHY YOUR PREVIOUS GEL REGULARS HAVE STOPPED GETTING THEM? They have stopped coming to the salon all together. 8% They didn t want to pay the price. 17% Nail damage. 25% They wanted to change nail color more often. 8% They wanted to try a different technique. 18% I don t know why. 9% Other reasons 15% DO YOU RETAIL PRODUCTS FOR CLIENTS AT-HOME USE?* YES 67% NO 33% top 10 Best selling retail products* this product is sold in my salon this product is one of my top 3 best selling retail items. Nail polish 45% 23% top/base coats 47% 12% cuticles treatments 45% 34% nail strengtheners 44% 24% nail decals/ embellishments 17% 5% hand and skin care 48% 39% hair products 38% 26% bath and body 35% 11% makeup products 29% 9% clothing/jewelry 28% 7% home goods 8% 3% 43% of salonshave added new services in the last year. HAVE ANY OF YOUR REGULAR GEL-POLISH CUSTOMERS STOPPED WEARING GELS IN THE PAST YEAR? I do not have any regular gel customers. 14% None of my regular gel customers have discontinued wearing gels. 46% Some of my regular gel customers have discontinued wearing gels. 32% At least half of my regular gel customers have discontinued wearing gels. 2% Most of my regular gel customers have discontinued wearing gels. 1% All of my regular gel customers have discontinued wearing gels. 1% HAVE YOU TRIED A NEW POLISH BRAND IN THE PAST 12 MONTHS? 65% YES 35% NO >>> 2016-2017 THE BIG BOOK NAILS MAGAZINE 57

career Each year we ask nail professionals what their biggest business challenges are, and their concerns are consistent year over year. The biggest challenge you all face is building a clientele and retaining it. Many of you are just starting out and struggling to earn the trust of new clients. We heard from some respondents who had been out of the industry and were trying to regain their footing. Sadly, I thought, was how fearful many nail professionals are about their ability to retain clients after a price increase. Competition is stiff for nail salons, with a service industry that has a salon on every corner. How do you stand out from the masses? These are the other challenges you mentioned: finding quality staff, doing more marketing and advertising, charging what you re worth, staying on top of new technical trends, and winning over clients with outstanding customer service. While it didn t make the Top 10 list, one of my favorite challenges, written by about 2% of you, was that you were too busy! What a great challenge to have! how long have you worked at your current salon? * Less than a year 22% between 1 and 2 years 17% between 2 and 3 years 11% between 3 and 4 years 8% between 4 and 5 years 6% between 5 and 6 years 5% between 6 and 7 years 5% between 7 and 8 years 3% between 8 and 9 years 3% 10 years or more 20% 1 Building and retaining clientele 2 Competition/too many discount salons 3 Keeping up with trends 4 Pricing 5 Product and general business costs 6 Finding and retaining quality staff 7 Advertising/marketing 8 Dealing with the economic downturn 9 Dealing with inconsistency with clients (late, no show, length between appointments) 10 Educating clients what is your ultimate goal as a nail tech?* Opening my own salon 44% Starting a product line 16% Becoming an educator 16% Being on the cover of NAILS 7% I ve already reached my ultimate goal. 7% Paricipating in competitions 4% None of the above 6% HOW WOULD YOU DESCRIBE YOUR CURRENT FEELINGS ABOUT YOUR CAREER AND THE NAIL INDUSTRY? SELECT YOUR LEVEL OF AGREEMENT OR DISAGREEMENT WITH THE FOLLOWING STATEMENTS. Strongly Agree I am satisfied with my current work. 43% 39% 12% 6% 1% I am satisfied at my current salon. 46% 31% 16% 6% 2% I am considering getting an additional job. 11% 18% 16% 19% 36% I am considering switching salons. 5% 8% 18% 21% 47% I have an overall positive outlook on the nail industry. 46% 39% 11% 4% I am satisfied with my income each week. 12% 31% 26% 22% 9% I feel that I am expanding my skills. 33% 45% 16% 6% 1% I look forward to going to work. 42% 43% 12% 2% 1% I have seen more new clients this year than last year. 29% 32% 25% 12% 3% I see future growth opportunities in my career. 40% 36.% 15% 8% 1% Agree Neither Agree Nor Disagree Disagree Strongly Disagree 60 NAILS MAGAZINE 2016-2017 THE BIG BOOK *Respondents chose all statements that were true for them personally.

48% of nail techs have their own website. WHICH OF THE FOLLOWING STATEMENTS ARE TRUE FOR YOU? 76% of salons have their own website. 2016 2015 I have my own Facebook page. 85% 86% My salon has its own Facebook page. 69% 60% I have a Twitter account. 85% 85% My salon has its own Twitter account. 32% 28% I have a YouTube channel. 84% 81% My salon has a YouTube channel. 23% 28% I have a Pinterest board. 93% 92% My salon has a Pinterest board. 16% 19% I have an Instagram account. 84% 88% My salon has an Instagram account. 49% 35% I have a LinkedIn account. 90% 89% My salon has a LinkedIn account. 20% 19% I have my own Four Square page. 59% 51% My salon has its own Four Square page. 45% 49% I have a blog. 69% 62% The salon has a blog. 39% 42% I have a Snapchat account. 91% n/a OF THE SOCIAL MEDIA OR ONLINE RESOURCES YOU OR YOUR SALON USES, WHICH THREE BRING YOU THE MOST BUSINESS? Facebook 73% Instagram 40% Website 37% Pinterest 8% Snapchat 6% Yelp page 5% YouTube Channel 5% Twitter 4% LinkedIn 3% Blog 2% FourSquare 2% Periscope <1% HOW EFFECTIVE HAS SOCIAL MEDIA BEEN IN YOUR MARKETING EFFORTS? TECHNOLOGY I have a Periscope account. 79% n/a I have a Yelp page. 84% n/a HOW DO YOU LEARN NEW NAIL ART TECHNIQUES AND DESIGNS? * YouTube 76% From other nail artists (online) 57% I teach myself 43% Pinterest 32% From other nail artists (in person) 29% Instagram 25% Manufacturer classes 23% Other social media 16% N/A 6% *Respondents selected up to 3. Very effective 27% Effective 31% Neither effective or ineffective 24% Ineffective 2% Very ineffective 1% I don t know 10% Social media marketing is not used 4% HOW NAIL TECHS ACCESS NAILSMAG.COM 67% Mobile 24% Desktop 9% Tablet 2016-2017 THE BIG BOOK NAILS MAGAZINE 61