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Issue link: http://beautystorebusiness.epubxp.com/i/141850
Editor's Note A Big Deal In Repdom Marc Birenbaum Executive Editor mbirenbaum@creativeage.com "It takes a lot of feet in the streets to really service [the western territory]." 10 August 2013 | beautystorebusiness.com THERE ARE ALWAYS NEW AND incredible opportunities in the beauty business for those who truly understand it, have a vision of where it is and could be, and act decisively. Take, for example, the world of manufacturers rep firms— an important arena for your business because of the wide assortment of beauty products reps present to you to sell to consumers and beauty professionals. As in other industry sectors, the economic challenges of the past few years have affected repdom. Most firms—a number of which started in the beauty store-rich West—went national (some international). The standard consolidation model was one would acquire others in "needed" regions—and fold them into the group. Sometimes, a firm would make the lead rep a principal or a partner. What about a rep firm buying another one and setting it up as a second, separate sales force in the same exact territory? That's what Jay Halaby, president of Jay Halaby + Associates, told me June 25 that he's doing. The Glendale, Californiabased firm that services all 50 U.S. states and Latin America in all segments of the professional-beauty market has purchased a rep firm that services the OTC salon/supply business in the West and will operate it as a separate division within its existing organizational structure. Halaby's firm has purchased certain assets of D.N. Crane Associates, and he expects that the transaction will benefit the breadth and depth of his organization's representation in the western territory. D.N. Crane Associates' sales team is remaining separate from the Halaby team members in the West. The partners— father-and-daughter team Norman and Danielle Crane—are remaining onboard as the cornerstone of the sales team, which is being increased to maximize coverage and market penetration. The separate division will have different reps and different lines than Jay Halaby + Associates' existing representation in the West. Management and operations are being incorporated into the infrastructure of the JHA organization. "The western territory is by far the largest and most difficult territory to cover effectively," says Halaby, who started his business in the West. "The West is very concentrated with accounts, and the states are very large. It takes a lot of feet in the streets to really service this market." By adding this additional team, the Halaby organization will have 11 salespeople focused solely on the western territory. All markets will be covered completely— full-service distributors, redistributors, nail supplies, ethnic accounts, spa distribution, etc.—and now what Halaby calls "the absolute best coverage of the OTC market." The deal makes Jay Halaby + Associates the largest sales organization in the western territory, according to Halaby. Will we see other manufacturers rep firms follow in the wild West? Stay tuned! ■