The Nailco Group

The Nailco Group
Building the Beauty Business

by Hollie Costello

Started in 1985 as a nail product company, The Nailco Group slowly and steadily has entered the indoor tanning market to become one of the leading suppliers of indoor tanning equipment, lotions and accessories in the world. As a distributor, the Farmington Hills, Mich.-based company continues to bring innovative ideas to the salon market through its catalog, the beautybook, its Internet site and its reputation for complete customer service.

The Foundation

After growing into a successful nail products company in only five years time, Larry Gaynor, president and chief executive officer of The Nailco Group, started to notice an interesting trend. Indoor tanning salons throughout the country, even the world, were adding nail services to their salons and ordering products through The Nailco Group.

"Since we started with tanning in 1990, The Nailco Group has created programs strictly for the indoor tanning industry," he says. "We provide salon owners a program that includes competitive pricing, co-op advertising, delivery, rebates and more."

That program, CLUB2000, offers salon owners the opportunity to purchase everything they need for a start-up operation. According to Gaynor, membership in the club is minimal compared to the benefits behind the CLUB2000 name. Membership is free for any tanning salon that buys its top three lotion lines from The Nailco Group. In addition to low prices, the club offers incentives, as well as discounts and payment options that are not given to regular Nailco Group customers. The CLUB2000 also serves as a link between the company and the customers, creating better customer service through direct information.

"We have licensed and trained sales consultants who handle all calls, and ship all orders more than 99-percent complete," he says. "The CLUB2000 is our loyalty program--rewarding our customers with gifts throughout the year in addition to our 100-percent quality guarantee that enables customers to return anything purchased in the last six months."

The Framework

Nailco Group strives to bring up-to-date techniques, information and knowledge to all its customers, as well as to people who want to learn more about the beauty industry.

"We have been doing direct marketing since the company's inception and offer one of the most complete catalogs of beauty products in the industry," Gaynor says. "the beautybook contains four distinct sections: hair, nails, spa and tanning. This has helped not only our company but also our customers expand and improve over the past 10 years."

the beautybook offers 350 full-color pages of merchandise, and since it is published twice a year, contains up-to-date, quality products for every aspect of the salon industry. According to Gaynor, full beauty treatment salons have helped keep the industry competitive--before the day spa, customers would make six different trips to get all the services they wanted. Today, they can enjoy indoor tanning salons that offer nails and hair, as well as massage, facials, skin systems and relaxation therapy.

The sheer number of stores in The Nailco Group also is effective in creating good customer service. With more than 200 employees and distribution centers in Atlanta and Los Angeles, and, with a third distribution center opening in Newark, N.J. this summer, the company has the United States more than covered. It also is certified by the International Standards Organization based in Europe--extending the company's hold worldwide as well as in the United States. The company also has four stores in Michigan and is opening five more in 2000.

The addition of a Web site, www.nailco.com, also has created a buzz in the industry. The Web site allows customers to order free copies of the beautybook, as well as provides a comprehensive look at the company and the products it offers.

Finishing Touches

Gaynor says the success of The Nailco Group, as well as its affiliates, comes from top customer service and current beauty industry news and trends.

"The Nailco Group is dedicated to creating new programs that will allow indoor tanning to expand its presence in the beauty industry," he says. "The company wants to be like its customers--innovative, diversified and successful."