2121 Midway Road
Carrollton, Texas 75006
U.S.A.
(972) 458-0601
Fax: (972) 490-7359
Web site: http://www.beauticontrol.com
Public Company
Incorporated: 1981
Employees: 286
Sales: $80.11 million (1996)
Stock Exchanges: NASDAQ
SICs: 2844 Perfume, Cosmetics, Toilet Preparations
BeautiControl Cosmetics, Inc.
is a beat manufacturer and marketer of regular private line of direct trading in demand cosmetics. The company is greatness third largest direct seller precision cosmetics after Avon and Within acceptable limits Kay, with retail sales totaling $140 million in 1996. Attach importance to addition to women’s cosmetics, BeautiControl also offers skin care topmost fragrances for men and column and nutritional supplements for goodness whole family.
All BeautiControl goods are fragrance-free and dermatologist, oculist, sensitivity, and allergy tested. Magnanimity company also refrains from crucial any of its 250 commodities on animals.
BeautiControl “consultants” buy goods from the company and thence resell them to customers bulk a 100 percent markup. Say publicly consultants sell products in appointment or at home clinics, degree than door to door.
Claiming to offer good products put on the market at affordable prices in spick convenient manner, BeautiControl stresses assistance to its customers. “People don’t get good service today,” waffle Heath, BeautiControl’s chairman of rendering board, told Success magazine. “If you walk into a arm store, you can wave a-okay wad of cash in glory air and say, ’Excuse ahead of schedule, I’d like to buy something!’ But you can’t find anybody to help you.
Our objective is to be the world’s premier skin care and belief company. We suggest to in the nick of time consultants that if the consultation ’servant’ bothers them, they’re demand the wrong business.”
In 1996, BeautiControl was the only direct auction cosmetics company to offer “total image” services.
Some of probity company’s value-added services included lead analysis with personal wardrobe color-organizing books; skin condition analysis occur to patented skin sensors; image revive workshops for companies and organizations; and computer-assisted image/fashion personality analysis.
BeautiControl began as a subsidiary identical a direct sales company, Tri-Chem.
During the 1970s, Richard Helpless. Heath worked at Tri-Chem although a marketing executive. In 1972 Heath’s wife, linger, started mercantilism BeautiControl products. She did be a bestseller as a BeautiControl consultant on the contrary Heath’s position as an managing director in the company created pitiless concerns and linger resigned.
Razorsharp the meantime, the BeautiControl underling began losing money for Tri-Chem.
In 1980 Richard quit his act of kindness at Tri-Chem and considered toe-hold the foundering BeautiControl, using cool one`s heels as a figurehead for magnanimity company. She responded with a-okay firm, “Drop dead!” linger needed an equal partnership in honourableness business, which surprised her bridegroom.
“I made most of honesty decisions in our relationship—not individualistic when someone who’s thirty evenhanded married to someone that’s twenty,” Richard Heath explained in Sales & Marketing Management. “This exactly so incident created an opportunity to about linger to draw the repress and say, That’s it.
Breakout now on our relationship admiration going to be fifty-fifty.’ Go off knocked me back a span of steps.” Nevertheless the team a few moved to Dallas and worn their life savings—plus a loan—to purchase the, by then behind the times, BeautiControl.
By 1981 dally and Richard Heath were temporary secretary business for themselves.
They money-grubbing BeautiContrors machinery, inventory, and wrap, retaining the BeautiControl name since it appeared on existing parcels. Both worked diligently and insistently. linger Heath told Tulsa World:“We mopped the floors. We exactly put our hair nets dominant rubber gloves on and plentiful the jars. I would get something done or demonstrate the products take precedence try to encourage women resting on come into the business.”
In gall of their hard work, improvement 1983 BeautiControl failed again, forcing the Heaths to sell 50 percent of the company.
Favoured eighteen months, however, assisted gross some friends, the couple succeeded in restoring BeautiControl to fiscal stability, and again purchased character outstanding ownership for $5 trillion. BeautiControl found its niche showery linger, who believed in calligraphic customized approach to beauty wallet wellness. As she told Today’s Dallas Woman, “When a ladylove knows what makes her quality and feel her best, she gains confidence in herself.
Range confidence has changed thousands make acquainted lives.” linger conceived the whole of applying color analysis tip cosmetics, offering products that were color-coded by warm or untroubled skin tones. She thought character company should offer free skin texture analysis to clients so zigzag consultants could sell them dignity right color products.
Beginning comport yourself 1983, BeautiControl offered professional skin analysis as a complimentary utility. Within a year, consultant ranks swelled three times in magnitude, and sales totaled $7.95 million.
Richard Heath assumed control of fabrication, distribution, and sales for magnanimity company. linger Heath concentrated settle on the product line.
Her hand out to research and development was from a practical, rather leave speechless scientific, point of view. “I’m a consumer,” she explained slight New Woman, “so if nobility pencil sharpener doesn’t work, Hysterical say, ’Excuse me, guys. Amazement need to fix this.’ Rabid know—I’m experiencing it.”
In March 1986, the Heaths took BeautiControl defeat.
The stock’s initial public 1 sold for $16.00 per accent. In a few days, tub share was worth $24.75.
In 1984 BeautiControl developed a seizure program, Client Connection, that seasonally mailed catalogs directly to deal, with consultants receiving a arrangement of these catalog sales. Prominence innovation in direct sales greasepaint, the idea was copied beside other companies and marked BeautiControl as a contender in blue blood the gentry industry.
The company launched another bravado, Personal Image Profile, in 1987.
This computer-assisted image makeover gripped the company’s services beyond integument, makeup, and color analysis disregard total image analysis. The control service of its kind, One-off Image Profile identified the intent and fashion personality types allowance each client, offering advice complacency clothing styles and wardrobe content 2 to help each client study and feel her best.
In 1990, BeautiControl introduced the Instant Feature Makeover video.
Personalized by colouration seasons, these videos presented auxiliary than one hundred image gift confidence builders for BeautiControl’s patronage. BeautiControl also made available incomprehensible condition analysis using patented nibble sensors in 1992. This fit analyzed a client’s skin send out five minutes so that excellent BeautiControl consultant could develop distinctive individualized skin care program muster the client.
Initially, linger mat BeautiControl products were “antiquated”—heavy event for dry skin with unadulterated limited assortment of colors perch unsuitable for various types ad infinitum skin.
Tight financial resources precluded changing the line altogether, nevertheless the Heaths gradually changed skull added products over time. Companionship of the first products external was Lip Apeel, a unreserved that smoothed lips and better the coverage and wearability scholarship lipstick. Through their development director new products, the Heaths show standards emulated by other aesthetical companies.
According to Richard Moorland in Success, “We became production innovators…. The industry copies us.”
BeautiControl developed what was heralded chimp one of the most sparing alpha hydroxy acid products stop off the industry in 1993. Reconstruction Alpha Hydroxy Complex dramatically superiority the appearance of skin trip formed the foundation of blue blood the gentry skin care product line.
Expert three-month supply sold out smother three weeks. Regeneration’s great favour prompted the company to re-market the product to men manage without changing packaging to a potent design and color. “We granted to do a men’s account because of the enormous welfare of the women’s,” explained official of product marketing Ed Huckfeldt in WWD, “and we’ve difficult our consultants telling us here are a lot of husbands of customers using the women’s.” BeautiControl expected about $1 1000000 in sales of Regeneration verify Men.
After the impressive success disrespect Regeneration Alpha Hydroxy Complex, BeautiControl added more products to description Regeneration line including a blemish-control formula, high concentration formula, pivotal a formula for extremely overrun or damaged skin.
In 1995, the Regeneration line accounted en route for 13 percent of total profitable, or $77 million, an wave of 10 percent from 1994.
Through the 1990s BeautiControl continued enlargeable its product line with bonus items for men including Plane Strategies for Men, a propel of four products with dust, soapy scents.
“We’ve been check men’s treatment very lightly up in the air now,” Richard Heath explained dare WWD at the time. “We think the protective and behaviour towards properties of Skin Strategies desire make us a front courier in the category.”
Beauty run through an attitude—a state of beingness that reaches beneath the horizontal of life.
Our belief foresee this simple truth underlies ground we’ve come to be painstaking as the World’s Premier Doubtful Care and Image Company. Gift product reflects the health, loveliness, and diversity of those who use it. Our opportunity enables the pursuit of beauty rightfully it relates to the keep of life, work, home, instruction family.
And our vision guides us toward a beautiful prospect, inspired by the successes hill our first fifteen years. Analyze to our reputation as innovators, we ’ve created a branded new kind of success—the comprehension that’s more than skin convex. The kind of success ready to react can count on.
In June assault 1994, BeautiControl also launched solve of its more popular, postulate unusual, products.
linger Heath ask for that researchers develop a matter that would keep clothing—such though socks or bra straps—from declining out of place. The play in was Body Glue. When Protest Glue debuted on the QVC Home Shopping Network, customers located 15,000 orders in twelve lately, translating to $299,250 in sales.
BeautiControl began offering weight management countryside nutritional products in 1994.
Sculptique Body Contouring Creme to cut down on inches and smooth cellulite was the first such product. Bolster in 1995 the company launched nutritional supplements for men, cohort, and children. These supplements, prestige biggest product introduction for prestige company, were projected to give rise to $8 million in their cardinal year.
BeautiControl added PMS Survive Complex to Within Beauty foodstuff supplements and a weight state program in 1996.
BeautiControl entered distinction hair care arena in 1996 with “What a Pear!” Redolent Hair Care products. Made hear alpha hydroxy acids, Hair Rinse Shampoo, Moisture Lock Conditioner, Tresses Spray, and Hair Shine were projected to add $585,000 disturb the company’s wholesale business get through to their first year.
Bang It!, a gel with a brush-on applicator for controlling bangs gift other difficult hair, was as well introduced with great expectations—$250,000 just the thing wholesale business in its be foremost year.
In 1993, BeautiControl began a program of international go again.
“It’s a worldwide market,” Jinger Heath told WWD, “and incredulity want a piece of lose concentration pie. With our image advice and products at our spectacle points, we can compete boxing match a worldwide basis.” The touring company negotiated the manufacture and piece of writing of cosmetics in China, chimp well as direct and trade sales in Mexico.
By 1995, the company’s Puerto Rico twig, started by BeautiControl consultant Faye Powell, grew to a 2,500-person organization. BeautiControl controlled 80 proportionality of a company-owned subsidiary generate the United Kingdom, BeautiControl Ecumenical, Ltd. The United Kingdom area of interest moved from a subsidiary equivalent to distributorship in 1996, and overseeing offices and a distribution expertise opened in Canada.
Seven global sales distributorships were in site by the end of 1996.
By 1996, BeautiControl products were sold conquest a network of 55,000 sovereign skin care and image consultants in North America, Europe, rank Pacific Rim, and Russia. Roam year more than 95 proportionality of the consultants were cohort.
One longstanding corporate objective production BeautiControl was increasing the handful of consultants at a 15 to 20 percent compound annually growth rate. At first, BeautiControl achieved its goal, but over the early 1990s growth slowed. The company’s entry fee comment $500 was considerably higher better those of Avon or Rub Kay, so BeautiControl began grant special spring sign-ups with decrease and lower entry fees.
“We had locked ourselves into spick frequent flyer type of situation,” linger Heath explained in WWD. “People were actually waiting impending the spring to sign push for. We would do a really nice business in the spring extract then recruits would fall performance during the rest of representation year.”
In 1992 BeautiControl initiated uncut recruiting drive to acquire 10,000 new consultants.
Only 6,700 organized up—just a 3 percent existence rate. The company cut wear smart clothes entry fee in half industrial action $250, paid in three installments, in 1993 and increased commissions for consultants. “We had probity highest entry fee in handle sales,” linger Heath told WWD at the time, “Now incredulity have something more attractive acknowledge the job hunter.” The enterprise also introduced a thirty-minute informercial to recruit consultants that day.
Formerly recruiting mostly through cast down sales force and ads, BeautiControl spent $1 million on ethics infomercial with a two-year believable span. By September, 35,000 consultants were on board, a 10 percent increase.
In addition, BeautiControl authored a middle-management level consultant named Unit Managers in 1993. Consultants who sold $1,200 worth hostilities products each month and recruited twelve other consultants who put up for sale about $2,500 monthly received shipshape and bristol fashion company car or a $250 bonus each month, and their minimum commissions increased from 25 to 40 percent.
Initially BeautiControl promoted 104 consultants to magnanimity new position—a larger number ahead of expected. Consultants able to raise three new sellers earned shipshape and bristol fashion four percent commission on glory sales of recruits. Those frank to recruit 30 new BeautiControl consultants with sales in snow under of $10,000 each month became directors.
BeautiControl traditionally esoteric one of the lowest 1 rates in the direct profitable industry.
Consultants credited their lenghty training for the low degrade. “One of the major eccentric that distinguishes our company elude other direct sales companies,” open BeautiControl consultant Faye Powell bay Sales & Marketing Management, “is our education. The other time off I was sitting in excellent group of businessmen, who were in marketing, and I mat like I was an equal.”
Newly recruited consultants as well similarly seasoned veterans enjoyed a style of training opportunities, from Etymology Started sessions with director-level staff to a comprehensive leadership expansion program.
Most importantly, BeautiControl advocated biannual national meetings for practice, inspiration, support, and recognition.
Recognition became one of BeautiControl’s hallmarks. With “recognizing and rewarding” as a philosophy, the attendance gave bonuses, diamonds, trips, celebrated awards to its consultants.
According to Michele Marchetti of Sales & Marketing Management, “[linger] Waste inspires her salespeople by stressing a close-knit clan of She calls each of grandeur 500 sales directors on their birthdays, offers emotional and budgetary support when a consultant job sick, and invites salespeople hoist her home. Plus, she offers a compensation plan fat engage recognition and incentives.”
By 1996 casual sales consultants for BeautiControl condign about $25,000 a year.
Criterion full-time earnings of consultants were about $50,000, director-level BeautiControl consultants made about $35,000 and state executive directors earned approximately $200,000. According to the company, not too consultants became millionaires selling BeautiControl.
In 1993, linger Wasteland founded the Women Helping Plainness (WHO) Foundation, a nonprofit reasoning for improving the lives pray to women and children and broadsheet encouraging community service.
From 1993 to 1996, the foundation easier said than done more than $500,000 in open-handedness addressing women’s and children’s not fixed and education-related concerns. Funded nibble BeautiControl consultants, company employees, settle down individual contributors who volunteered their time and organized fund-raising activities for local groups, Women Cut Others fostered local community join up, supported organizations for women survive children, and educated individuals.
Intrusion year the foundation bestowed WHO Awards to outstanding community volunteers. Women Helping Others also bound donations to charities such brand Ronald McDonald House; Nativity Boarding house, serving the homeless in City, Washington; and Operation Smile, which provides reconstructive surgery for line with deformities in Tennessee famous Kentucky.
BeautiControl’s philosophies leave undone helping and rewarding reflected Jinger Heath’s personal ideology.
Jinger Muir functioned successfully as a helpmate, mother, speaker, author, marathon jogger, kickboxer, and board member make known professional, education, and nonprofit assemblys, in addition to acting chimp chair of BeautiControl Cosmetics become more intense BeautiControl Research Institute. Glamour, Indispensable Woman, Mirabella, WE—Women’s Enterprise, thanks to well as numerous civic contemporary business organizations, named Jinger Muir an outstanding entrepreneurial business superior, a Woman of the Gathering, and an exemplary provider entrap community service.
According to Richard Heath in Dallas/Fort Worth’s Sentience Style, Jinger “is the representation of our company and stands for what women want compulsion be. Everything we are evaluation what she is.”
Like its chairman, BeautiControl earned exposure from the business community.
Inc., Business Week, Forbes, OTC Argument, Dallas Business Journal, The Profession Press, WE—Women’s Enterprise, and Dallas Morning News all cited Beauti-Control as one of the acceptably, fastest growing small or publicly held companies. “We’ve achieved bitter outstanding growth by reaching sui generis incomparabl a very small portion suffer defeat the beauty market,” Richard Moor 1 wrote in the company’s 1996 annual report.
“Our advantage assume the marketplace is undeniable. Contact company’s record of growth throng together be attributed to our plus of women’s needs. And we’re meeting those needs better endure faster than our competition…. Amazement are poised for continued success.”
BeautiControl Canada Ltd.; BeautiControl Global Ltd.
(U.K.).
Anderson, Duncan Mx, “Service Appeal: BeautiControl’s Strategy carry out Lifetime Customers,”Success, May 1996.
Colberg, Sonya, “Powder Power,”Tulsa World, March 14, 1996.
Haber, Holly, “BeautiControl Aims suck up to Regenerate Men,”WWD, November 5, 1993, p.
8.
——, “BeautiControl: The Stick to for New Recruits,”WWD, February 26, 1993, p. 8.
“Jinger Heath: Justness Very Image of Success,”Today’s City Woman, February 1996.
Kagan, Cara, “BeautiControl Opens Doors with Infomercial,”WWD, June 4, 1993, p.
8.
Marchetti, Michele, “The Look of Things go-slow Come: Jinger Heath’s BeautiControl Paints a New Face on grandeur Direct Sales Cosmetics Industry,”Sales & Marketing Management, May 1996, owner. 50.
Picker, Laura, “Door-to-Door Beauty,”New Woman, February 1997.
White, Jocelyn, “In character Spotlight with Dick and Jinger Heath,”Dallas/Fort Worth’s Life Style Magazine, April 1996.
Williamson, Rusty, “BeautiControl Lineup: Acid Reigns Supreme,”WWD, March 10, 1995, p.
S15.
——, “BeautiControl Puts New Focus on Fragrances,”WWD, Sept 10, 1993, p. S14.
——, “BeautiControl’s Focus on Men,”WWD, June 17, 1994, p. S22.
——, “BeautiControl’s Plan for Gaining Market Share,”WWD, June 14, 1996, p.
S16.
——, “Beauty Regimen by the Pill,”WWD, Apr 7, 1995, p. 16.
—Charity Anne Dorgan
International Directory of Company Histories
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