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Prepared by Mark Palermo, CEO

FAQs FOR THE SALON COMMUNITY

Why did you choose SalonCentric (SC)?   

"We established clearly defined criteria; location, store design, business structure, competitive brand representation, and much more.  The most important criteria was business model compatibility.  We evaluated EVERY option.  In the end, SC stood out as the best fit us.”

 Which SalonCentric stores will represent JPMS in our Louisiana?

Monroe, Alexandria, Lafayette, and Covington.

Why did you choose to not open Vanguard stores in the referenced markets?

Our long-term business plan included Vanguard stores in each major market within Louisiana.  However, it was a LONG-TERM plan (7-9 years).  It takes a lot of capital to start of store from the ground up. Considering the rapid pace of change, the time it was going to take, the capital to do it, and the success my distributor colleagues are experiencing with the outsourcing approach, it became a no-brainer decision. “   

Will Vanguard eventually open Vanguard stores in these markets?

We won’t be able to make this determination without allowing time to past and see how it goes with our new strategic partner.”

Is this the extent of Vanguard store expansion?

“No. As we go forward we will closely watch sales and salon/hairdresser population trends.  We have our sights on the west bank of NOLA and Houma-Thibodaux.  We have a lot of fans in those areas.

Will Vanguard eventually allow SalonCentric stores in markets where Vanguard already has stores?

“No.”

What is going to happen with the existing Vanguard Stores?

Nothing, so long as they continue to perform well and deliver an adequate ROI.”

When will these SalonCentric stores begin carrying JPMS?

Next month, October.”  

Will there be a Grand Opening Event similar to what Vanguard hosted during its store openings?

Absolutely.  We’re Louisiana, the world capital of festivals and host of the biggest party ever – Mardi Gras.  Stay tuned to our various social media outlets for more details.  Laissez le bon temps rouler!”        

How many JPMS products will SalonCentric stores carry?

SalonCentric stores will offer the full product line of JPMS products.  Product quantities and assortment may vary store to store based on each markets preferences.”

Will there be purchase limits?

Yes.  It’s a matter of product control (diversion).  The policy is as follows: $200.00 of product purchases per order on product that is resold to the public (retail items).  There are no purchase limits on professional-only products and/or appliances available for resale to the public.  $500.00 in aggregate value of product purchases per calendar month.

Will the new Omni-Channel price policy for certain Perks level customers apply with SalonCentric Stores?

No. Since SalonCentric is a third party entity (separate corporation), i.e. “sub-distributor”, they operate independently. Federal Trade Commission laws inhibit how like-company’s behave under such circumstance. We cannot compel SalonCentric to comply with our pricing, participation in salon contests, distributor-specific promotions, etc.  This is also the case between JPMS and Vanguard.  This is why we were exlicit when we announced the new Omni-Channel Pricing policy as an exclusive Vanguard initiative. 

Will I receive credit towards JPMS Perks with SalonCentric purchases?

No. Same reason as stated in the above answer.   

So, what’s the benefit to high volume Perks Customers?

We realize the larger the customer volume, the higher the likelihood something may get missed during the order process.  The third objective of this initiative was to provide a safety net for our higher volume Perks customers, but only as a safety net. The restrictions for purchase volume relative to diversion control as well as overall store pricing structure makes it cost prohibitive for higher volume salons to buy big at an area Vanguard affiliated distributor store.  There are times we shop at a convenience store, and times when it’s better to shop at Sam’s Wholesale Club.  Prior to this move, you only had the ‘Sam’s’ option.  Now you have both.     

Will my salon customers be able to buy JPMS at SalonCentric?

Absolutely not.  Like Vanguard, SalonCentric does not sell to the general public. Only licensed beauty professionals can shop at SalonCentric. Additionally, we monitor customer purchase levels to ensure diversion does not take place.”

How will this affect service from my Vanguard Salon Consultant?  

It gets better.  We’re all about making things better for all involved.  Greater shopping convenience for you, and ease of service for our team is huge to us.  I am happy to let you know, (unlike the industry standard), our DSC’s receive full sales credit regardless of how you buy, whether it be direct, on-line, or store.  Maintaining high morale and team work is always mine and Lisa’s top priority.  Everyone wins with this move.”

What about Shreveport-Bossier City? 

"It’s the 3rd largest city in Louisiana and has the highest per capita of Independent Stylists in the state.  SalonCentric does not have a store there.  As such, we are considering options which offer us the quickest and most cost-effective approach.  I must presume this question is coming from those in the Shreveport-Bossier City area.  Let’s talk.  I am all ears.”  

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