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Paul Mitchell CEO John Paul DeJoria explains how beauty salons and Patron are economic indicators.
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All right now on the economy slowly get back on track you would think well.
Still not where it used to be of course but our next guest believes that hair -- The best economic -- out there you certainly knows a thing or two about hair care beauty care personal care tequila.
I don't all enjoy -- co-founder up -- -- also owner of the kinds.
-- it's gonna -- hi guys pleasure being here with you New York this perfect day -- and it's nice let's start with.
Hair salons and is it frequency of visits that your best indicator is it -- The price of that each visit it is frequency of visits we have salons all of these flow of the United States the world they charged various prices for their services.
When the economy went bad people don't want to give -- -- their hair but they'll come less frequent what we've seen the last six months is now they're coming more frequently.
Which is Geoffrey an indication that the economy is turning around you want an economic indicator don't put -- Wall Street greater local beauty salon -- is it.
-- John charge stage manager that it appears as if we're back and that's what is like 1929 -- -- depression if you look at it and it but other people are going more office ultra clean up today that.
-- put it -- this kind of funny half joking but this.
-- -- -- in the last six months that we see more in the last six months and the that's indicating a -- About the by the -- say give us reports on this.
And also on the poll -- sales the real Paul Mitchell's only saloon salons and even noticed that going up and that's attributed to not just some of the -- -- unique products.
But to more people -- -- and on a regular basis.
How are you competing though and I've heard this from other small salon -- Bit their at their.
Pricing is being pushed down by these coupon sites like Groupon and living social should.
That people are becoming less loyal to their hair stylist that there willing to go anywhere just four of discount if fault.
Very good point.
When you're -- having more more though is salons realizing you have to create a salon experience we have classes on -- -- all over schools by the way.
Where when the person comes in whether it's a fifteen dollar haircut or whether it's a fifty dollar -- -- The experience.
Must match what's going on.
For example the wash based that we must have an experience back there you know your -- Airbus saw it really get maybe -- tree rubbed into her something but have that wash house experience.
If the experienced people want yes there are various budgets of people are on but it's the experience and it's not that summer's goodwill for fifteen dollar haircut.
And also -- message for fourteen -- into the fourteen dollar what that's not the case it's the experience they're looking for.
You're in and this is kind of interest thing.
To look at all both of your admit businesses at least and say hey -- hair business is a great economic indicator -- for them to go to to kill temperature own.
Had saved by I don't know maybe people and this there are stories done about this people drink more when the economy's rough is -- early truer now.
Well I would say in our case no because we promote drink responsible at the -- However patrolled skyrocketed.
A year -- -- -- -- double digit growth and why should we became the largest dollar volume tequila company in the world we surpassed -- -- and we only sell high in two key largest -- -- to premium tequila us.
That indicator is that people want to treat themselves whether it's good times or bad times.
When you drink -- you don't get drunk.
You may be at home to get -- -- buzz off of that.
But you don't get that horrible drug and -- be normally look for so all of a sudden people are treating themselves to feeling a little bit better and it's syndicated -- You which is astonishing for the first time in 28 will 123 years old.
-- the largest by volume only with the best and people like that how do you itself.
How do you now expand that brand to take it bigger and broader and further -- but yet it's very easy to patrol -- become a brand working go task force not tequila -- -- may please have a patrolled.
It's easy because most of our expansion -- through word of mouth.
If you're drinking something else regards for the commercials on TV say and you drink patrol and it's something you want to stick with one it's something could sit and drink responsible number two.
It's a very very good indication of how you want to feel not just said -- you wanna get a get a bus and sick the next day so.
A lot of what we're doing by the -- is organic and he's here commercials.
They're all about giving back we don't knock on particular companies we give back hears the -- leave our product -- -- we do for the people of Mexico in the world.
Well every single ties -- every single time you've been -- what -- you've been a glass half full guy that's not even a dumb.
You know to -- upon or anything like that but it's just you really you're always positive.
Did you ever get down during the last few years when things looked rough in the economy.
No -- time I was down was when the economy was really down wanna start of Paul Mitchell with 350 bucks yeah -- part night UN but remember then it was worse than today.
Inflation.
Twelve and half percent a -- -- yes 801980 and 81.
Unemployment ten and a half percent 18%.
For.
Interest and he waited in line to get gasoline.
Are things worse than the today of course the door but we started company survives people can do the same today they have that opportunity in America -- -- then.
To that point do you feel good about the direction of the country right now.
I feel good about the direction that people are speaking up saying that we want some changes we want this we want that for many years people would never speak up.
There's a little -- -- turmoil with the present administration -- -- turmoil with everyone else that wants to become president.
But I think we have the people are speaking up that we could help direct politicians not to -- there was like they do every time will do this in -- -- elected.
But to really do something in concretely put it in writing -- -- -- in that case what's one thing you'd like to see changed I'd love to see change the person who's running for president.
Writes this out I'm gonna do this this in this for the economy for taxes for the people they care for everybody.
And if I don't impeach me after one year impeach me.
No one wants to sign that -- a lot of people give promises -- never gonna keep.
But all their promises sound good.
But right in their right and in writing impeach me after one -- I'm not doing this if I don't get rid of pork barrel spending and ECB signing bills to pork barrel spending that's in there.
It peachy right away I lied to you if I don't get rid of lobbyists.
Impeach me highlight if you do it in writing award to see a government change be accountable good -- -- allows everybody tells us but I can make a promise.
What about the millionaire's tax the so called Buffett role.
How do you feel that I'm part of this club by the way and I'm -- -- what I have anyways okay but I feel this way.
If we had a 5% increase in sales tax -- in our personal taxes.
And it went to something that was beneficial that we could help control I'd write it in two seconds because I give a lot of when given away more every year.
But it was going to the existing government to control -- you know that three force of that is a waste why would somebody want to give money that -- gonna be waste it.
If the government would stop wasting money and these Smart about the way they spend that yeah they're politicians they're there to be elected we -- this is guys that they're helping it will -- -- -- -- doesn't guys -- -- for each.
Large they're going to charge a coveted but let us help our dates they're volunteering to be often volunteered to do it and try bargaining that's it but at a high level bill -- -- -- have to pay me one dollar a year are we the people are getting -- this nation does give a shot at -- my god -- to see against great bringing the total flip through the guys they're cutting yeah.
How does have -- -- -- -- you have and that's right he's always is always class FO thanks for coming up from one dollar to this question how much we June.
