Be wary of Diverted Product

[Sandralew]

Hi everyone,
I just thought I would post my letter that I wrote to CBC's Marketplace in regards to diverted spa/salon product. I understand that everyone loves to get deals on highend product, but sometimes it is just not worth it, especially if it could affect your health. Many spas/salons lose money because of this. As an aesthetician, I take this very seriously, but I don't want to preach, so use the information as you will.
Sandralew


Subject: Story Ideas for the New Season
To: [email protected]

Dear Erica and Wendy,

My name is Sandra L. (CIDESCO Diplomat) and I have been a professional Aesthetician for 12 years. I have worked at a number of spas and salons, and all of these businesses use professional spa/salon products. In order to be a representative retailer of these products, they are required by the wholesalers (also known as distributors) to sign a contract. This contract basically requires them to uphold a standard of ongoing education, reliability and respectability towards the product(s) the spa or salon would like to carry on their shelves.
Individual professionals, hairdressers and aestheticians, are also required to sign a contract, I have signed several myself in order to purchase product for my own use. I have had to produce proof of my certification before I was allowed to sign any and all contracts.
The biggest reason Distributors require this contract is to prevent the problem of Diversion. Diversion is the selling of professional spa/salon products by unauthorized retailers. It is big business, it is illegal, but only considered to be grey market. The product is usually obtained by one of several methods. A spa/salon is going under or out of business, and the owner cannot pay the outstanding credit, so the product is sold to an unauthorized retailer in order to receive untraceable cash. Professionals themselves purchase product in bulk and resell it to the unauthorized retailer for money, or the unauthorized retailer hires a professional in order to purchase product for the store. The retailers tend to be "Big Box" stores that have the resources to find the product. Several of the mass market retailers actually have divisions in the corporation to seek out and purchase diverted product.
A professional product sold in a spa/salon is guaranteed by the professional as well as the spa/salon itself. The product is guaranteed fresh, effective and legitimate. It will have a legitimate expiry date and lot number. If a client does not like it, it does not work , or he or she has a concern, they will get either their money back or a store credit. They can always return the product (within reason) to the licensed retailer.
So why is it a big deal? Why should the spas/salons care?, they charge more than the mass markets anyways, aren't the manufacturers happy that their product is out there and they are making more money?
Well, No and No. In my own experience when I come across diverted product in the grocery or drug store, the product is MORE expensive than what a spa/salon retails it for and it is never guaranteed by the unauthorized retailer. But, because consumers see it in mass market, big box or drug stores, they assume it is less expensive or don't even realize it is professional product and purchase it, causing the legitimate salon/spa retailer to lose profits. If the product has been diverted from its original course, it means a legitimate distributor or retailer has not gotten paid, has lost product, and contracts have been broken.
Several of the big name manufacturers like Joico, Paul Mitchell, O.P.I and Sebastian, to name a few, have started huge multi-million dollar educational campaigns targeting consumers and professionals alike regarding diversion. Just Google "Diversion spa salon" and its easy to find, or check out the manufacturers websites.
But its not just about the money, there are also more dangerous reasons why Diversion needs to be cracked down upon. Diverted product can be old and expired, counterfeit and/or contaminated with bacteria and fungus. In March and May of 2003, Health Canada put out two press releases regarding counterfeit "Bed Head" by TIGI that was contaminated by Enterobacter gergoviae and Burkholderia cepecia. These are dangerous bacterias that can cause infection and damage if it comes into contact with open sores (like acne), eyes, nose, ears and mouth. The product looked real, had serial numbers, lot numbers, even the colour of the shampoo was exact, but it contained enough harmful bacteria that it could very seriously hurt someone.
The links are below,
http://www.hc-sc.gc.ca/ahc-asc/media/advisories-avis/2003/2003_10_e.html
http://www.hc-sc.gc.ca/ahc-asc/media/advisories-avis/2003/2003_31_e.html

In the wake of fake pharmaceuticals, toothpaste and other common household items, it is alot more than "it fell off the back of a truck",
I believe Diversion is going to cost someone much more than a few lost dollars or a bad hair day. I would love to see this problem spotlighted on your show and to really feel that the consumers have been educated on a very serious but little known problem.
Sincerely,
Sandra L