WBC SALES MEETING 2012

WELCOME

GERRY UDELL INC.

Agenda• Welcome

– Introductions

• Sales Presentation– 2011 Year in Review

• Top Performer

– 2012 Goals

• Marketing Presentation– 70th Anniversary– Show Deals– Product News– Miscellaneous

• Discussion

Sales

2011 Year in Review

1) 2011 Sales Increase Goal= 11.5%2) Increase the # of new accounts, with a goal of $300,000

in additional sales3) Fill in gaps so we maximize the number of accounts that

carry these 6 key Spilo brands:1. Flowery2. Spilo Foil/Color Accessories3. Personna4. Mehaz5. Toolworx by Personna6. Hairware

2011 Year in Review

4) Increase the sales of these key Spilo brands:• Colora• Flowery• Hairware• Hot Sock• Mehaz• Melting Pot

• Personna• Speed-O-Guide• Spilo Color Accessories/Spilo Foil• Toolworx by Personna

How did Gerry Udell Inc. do?

1) 2011 Sales: -5.5%2) New Account Performance:

– Sales of New Accounts were -47% compared to the previous year• 2010: $60,282• 2011: $32,221

– The # of New Accounts opened in 2011 was -44% versus 2010• 2010: 18• 2011: 10

3) 19 accounts carried all 6 key brands in 2011, which was -14% versus 2010

• 2010: 22• 2011: 19

How did Gerry Udell Inc. do?

4) Increase the sales of these key Spilo brands:

2010 2011 % Change 2010 2011 % ChangeColora 183,204$ 156,207$ -14.7% 81 81 0.0%Flowery 189,053$ 180,979$ -4.3% 101 106 5.0%Hairware 34,087$ 32,430$ -4.9% 85 72 -15.3%Hot Sock 18,693$ 13,128$ -29.8% 53 47 -11.3%Mehaz 247,530$ 230,574$ -6.9% 102 96 -5.9%Melting Pot 93,016$ 113,945$ 22.5% 31 29 -6.5%Personna 269,761$ 282,023$ 4.5% 107 101 -5.6%Speed-O-Guide 114,453$ 89,136$ -22.1% 49 38 -22.4%Spilo Foil/Color Accessories 66,542$ 65,587$ -1.4% 64 62 -3.1%Toolworx by Personna 41,806$ 36,359$ -13.0% 65 49 -24.6%

TOTAL: 1,258,145$ 1,200,368$ -4.6% 738 681 -7.7%

Sales # of AccountsGerry Udell Inc.

Gerry Udell

The award for the

Highest Percentage Sales Increase 2011

goes to . . .

Brian Garrett

The award for the

Second Highest Percentage Sales Increase 2011

goes to . . .

2012 Sales Goals

• Increase Overall Sales – Goal= 9%

• Positive New Account Growth– Goal= $100,000 in New Account Sales

• 10% Increase in the Number of Accounts that Carry All 6 Brands: Flowery, Spilo Foil/Color Accessories, Personna, Mehaz, Toolworx by Personna and Hairware– Goal= 21 Accounts

• 19 Accounts in 2011 x 10% (2)= 21 accounts in 2012

2012 Sales Goals

• 15% Increase in sales of accounts carrying Spilo’s key brands:

2011 2012 Goal $ Change % Change

Colora 156,207$ 179,638$ 23,431$ 15%Flowery 180,979$ 208,126$ 27,147$ 15%Hairware 32,430$ 37,295$ 4,865$ 15%Hot Sock 13,128$ 15,097$ 1,969$ 15%Mehaz 230,574$ 265,160$ 34,586$ 15%Melting Pot 113,945$ 131,037$ 17,092$ 15%Personna 282,023$ 324,326$ 42,303$ 15%Speed-O-Guide 89,136$ 102,506$ 13,370$ 15%Spilo Foil/Color Accessories 65,587$ 75,425$ 9,838$ 15%Toolworx by Personna 36,359$ 41,813$ 5,454$ 15%Velcro 137,497$ 158,122$ 20,625$ 15%

TOTAL: 1,337,865$ 1,538,545$ 200,680$ 15%

Gerry Udell Inc.Sales

2012 Sales Goals

• 15% Increase in sales of accounts carrying Spilo’s key brands:

2011 2012 Goal $ Change % ChangeColora 361,824$ 416,098$ 54,274$ 15%Flowery 1,722,426$ 1,980,790$ 258,364$ 15%Hairware 177,601$ 204,241$ 26,640$ 15%Hot Sock 7,191,513$ 8,270,240$ 1,078,727$ 15%Mehaz 912,052$ 1,048,860$ 136,808$ 15%Melting Pot 435,045$ 500,302$ 65,257$ 15%Personna 2,331,493$ 2,681,217$ 349,724$ 15%Speed-O-Guide 249,503$ 286,928$ 37,425$ 15%Spilo Foil/Color Accessories 869,591$ 1,000,030$ 130,439$ 15%Toolworx by Personna 114,839$ 132,065$ 17,226$ 15%Velcro 137,497$ 158,122$ 20,625$ 15%

TOTAL: 14,503,384$ 16,678,892$ 2,175,508$ 15%

SalesVan Nest Coleman

Marketing

Anniversary

70th Anniversary Promotions“Hunt for the Spilo Carnation”

– This promotion forces the customer back to the Spilo catalog, where they may discover other items they want to purchase

• Catalog Two will be sprinkled with different colored carnations featuring certain products

• The July, September, and November Hot Sheets will indicate what the discount percentage is and what color carnation it applies to

• The customer needs to go to the catalog to find the matching carnation to discover what product the discount applies to

“Hunt for the Spilo Carnation”

Hot Sheet Catalog Two

70th Anniversary Promotions

7-Day Deals– This promotion will help you get Spilo proprietary

lines into your accounts that do not carry them– It leverages hot deals on top selling open line

items to gain distribution on proprietary lines– Example: “Buy any Toolworx by Personna

product and qualify for 25% off our #1 selling Hot Tools blow dryer”*

– Beginning in April every other month until the end of the year

– Customers will be notified by direct mail, email, telemarketing, and customer service

*deal pending

70th Anniversary Promotions7 Deals at 10%-25% Off

Build your sales with hot deals!• Every Hot Sheet beginning with March/April will have 7

deals ranging from 10%-25%• Featured in the center spread of the Hot Sheet

celebrating Spilo’s 70th Anniversary

70th Anniversary PromotionsOnline Promotion

– Encourages customers to utilize our online ordering service who haven’t previously been registered

– Customer receives a 2% discount on their first online purchase

• Announced in the March/April Hot Sheet• Promotion good through end of April• Customers will also be notified by direct mail, email,

telemarketing, and customer service

– And Remember!• To take advantage of more timely orders, cost efficiencies, fewer

errors, and …. you still get the commission!!

Exclusions:– Personna factory orders– Customers with contract or redistributors' pricing (including hip pocket deals) are excluded

70th Anniversary Promotions Sales Increase Contest

– Level 1: Increase sales of Spilo products by 70%• One Week Hawaiian Vacation for two

– Airfare, hotel, spending money

– Level 2: Increase sales of Spilo products by 50%• Alaskan Cruise for two – 7 days

– Upgraded cabin, airfare to port, spending money

– Level 3: Increase sales of Spilo products by 30%• New Orleans long weekend getaway

– Hotel, airfare, spending money

• The calculation of any increase in sales is based on comparing full year 2012 net sales (sales less returns) of all accounts on a sales reps’ account list at the end of 2012 to 2011 net sales of those same accounts (baseline)– i.e. If a sales rep acquires an account in 2012, the 2011 sales for that

account will also come along with the acquisition and be included in the total 2011 baseline

• Minimum sales increase of $50,000• Prizes must be redeemed within 12 months of award date• Trips need to be planned 60 days in advance

Sales Contest Rules

Show Deals

WBC Show Deal

3% on orders over $2,5002% on orders over $1,500

Effective January 16 – January 31, 2012

Account must attend show and sign our log book to qualify for this discount - no exceptions.

Excludes Personna® Hair Shaper Blade Orders, as well as contract and hip pocket pricing.All show orders must be received in house by February 3, 2012 for immediate shipment to

receive the show discount. Invoice must be paid in terms.

Product News

Gravity Feed Display• Compact display loaded with 24

5-packs of Personna Blades• Secure and convenient way for your

customers to increase impulse sales• Mount on peg or slat wall or display

on counter or shelf• Measures only 3-/14” (w) X 6-1/4

(h) X 5” (d)

• Distributor Price: $54.98 ds• Suggested Salon Price : $4.50 per 5 pk

Pink Ribbon File Catty• We’re doing something new and

different! • Fashion print on one side mixed

with ribbons on the other side!– Leopard– Daisies– Gingham

• Sell sheet available in January• Distributor Price: $29.16 ds

($1.62 ea)• Suggested Salon Price: $3.99 ea

Holiday File Catty• Overview:

– Three new exclusive holiday designer nail files with coordinating designer cases

– Compact 18-piece display features 6 each of the 3 new designs

– Sell sheet available in January– Samples available in March

• Pricing:– Distributor Price: $29.16 ds ($1.62 ea)– Suggested Salon Price: $3.99 ea

Sales Goals for Seasonal File Catty Displays

Increase Distribution– File Catty Pink Ribbon Display

• 2012 Goal= 75

– File Catty Holiday Display• 2012 Goal= 300

Packaging Update• Clamshell Format:

– Bringing a consistent look to our large and small packaging footprints

– Reducing the depth of the large clamshell by half (will be ½” thick)

– Securing closure to eliminate safety band from large packaging

– Timing: May 2012

• Artwork:– Adding design elements and

accent colors for a more feminine appeal

– Organizing pertinent copy for better legibility

– Adding QR code to link to Facebook page

– Timing: Q4 2012OLD NEW

Rake Comb• 100% Hard Rubber Comb

from Germany– All Master Barber combs

have burr-free, saw-cut teeth rounded by hand for a smooth, even finish

– Will not snag or scratch the scalp

• 9” comb. Long enough and big enough to distribute conditioner or blend and smooth the hair when styling

• Distributor Price: $9.99 ea • Suggested Salon: $19.99 ea

Comfort Grip Alligator Clips

• Holds thin, thick, straight or curly hair with ease

• Perfect for sectioning and clipping all types and lengths of hair

• Rubberized coating for extra comfort• 4 – 4 ½” Clips

• Distributor Price: $2.24 pk• Suggested Salon Price : $4.48 pk

Hot Sheet Deals

HOT SHEET DEALS – JAN/FEB “REPEATED”

Mini Trim Grooming Kit$3,967

I-Stubble - $2,668 Easy Cut - $3,028

TOTAL INCREMENTAL BUSINESS - NOV/DEC - $14,431

10 in 1 system - $2,590 7 in 1 system - $2,178

HOT SHEET DEALS – JAN/FEB

Eye and Face Make-Up Remover Wipes 25ct.

Purchase 25ct @$6.60 and receive 25 “FREE”

No-Tweeze® Hair Remover 4oz.

Dist. Reg. Price $4.29 / Sug. Salon Price $8.60

Dist. Reg. Price $3.43 / Sug. Salon Price $6.86

HOT SHEET DEALS – JAN/FEB

Buy any 2 Ardell Lashes and get a “FREE” LashGrip Glue Dist. Price $4.20 (2x $2.10)

Poshé was purchased by a new Company and they’ve re-launched the product. “It’s Back”

$1.95 VALUE

Spilo Brands

Your 14 Proprietary Brands

Exclusive Brands

Your 9 Exclusive Brands

Our proprietary and exclusive brands are what separate you

and Spilo from the competition

Catalog Changes

We made the catalog more user-friendlyby matching each product picture with each product description

OLD NEW

We grouped complementary products together such as razors with razor blades to maximize cross-selling

And we unified brands and products together under hot categories like Gel Polish Treatments

QR Codes

• Coming in future Spilo hot sheets and catalogs, and being phased in on Spilo proprietary packaging and advertising

– Customers can scan the QR code and go directly to the Spilo website to order online

Online Update

• It’s Growing!– 2011 sales were up 36%– More and more customers are signing up and ordering more often

• What’s Coming in 2012?– You’ll be able to order online for your customers right from your

iPad or laptop– You and your customers will have more visibility to stock status

information– A new Pop up Welcome Screen will give your customers more real

time updates– Your customers can join our Email Sign-Up to get great deals and

updates by email– An enhanced suggestive selling screen makes it easier for your

customers to purchase complementary products• The more they buy, the more commission you make!

Social Media

Why You Should Follow Spilo on Twitter

• We will be posting 70th Anniversary deals on Twitter

• Your customers will hear the news first on Twitter

• You need to be in the know about what’s happening at Spilo

• We are continuing to aggressively pursue more customer sign-ups

Why You Should Follow Spilo on Facebook• Announce new accounts that carry these brands• Tell about customer promos & sales• Link to customers’ Facebook page and websites• Customize programs to drive pull through at your accounts

Discussion• Forecasting

– Timely• We need information early, well in advance, to plan properly and meet ship dates• Especially for seasonal purchases and customized programs

– Accurate and Realistic• Consult with your customer’s buyer

• Decision Feedback from Buyers• Faster turnaround regarding samples presented to buyers• When there are delays in the approval process, help us understand why so we can follow-up

accordingly

• Customized Promotions / Products– Provide complete details of proposals upfront

• i.e. warehouse and store introductory dates; pipeline and replenishment quantities; special packaging details

– Include realistic timelines• To determine urgency of projects and whether feasible

– Be more responsive and timely to requests for updates on pending issues• Need to keep projects moving to make ship dates

Thank you!!!