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Content about Costs

March 7, 2013
Manage the R > E Flow

PEMBROKE, Mass. — You should know all your costs like the back of your hand

PEMBROKE, Mass. — Running a dry cleaning business is not rocket science. It is a matter of adopting and living by one simple principle: the inflow must be greater than the outflow.

Simplified, it’s R > E, in which R equals revenue (inflow) and E equals expenses (outflow). But then the rule gets a bit complicated. It doesn’t apply to end-of-year results, it applies to every day you open your doors. For most, that means 270 to 360 days a year. Every day you’re open for business, the inflow must be greater than the outflow.

If it isn’t hard, why then do so many dry cleaners either limp along without much success or fold up? The answers vary:

February 25, 2008
Are You Ready for Recession?

Drycleaners are experiencing what may be the worst time in the history of the industry. Economists are predicting that the U.S. is either in a recession or at the start of one.

Orders for durable goods are down, the dollar is at a new low, home foreclosures are rising fast, and fuel costs are going up with no end in sight. New home construction is at its lowest in 27 years. Business in the future is going to be bleak, the experts say. All I can say is, “Welcome to the world of drycleaning.”

August 15, 2007
Pearson to Appeal Lost-Pants Verdict

WASHINGTON, D.C. — D.C. administrative judge Roy Pearson filed an appeal this morning to overturn the verdict in the ongoing $54 million lawsuit he brought against Custom Cleaners operators So Jin and Soo Chung over an allegedly lost pair of pants. Judge Judith Bartnoff ruled against Pearson in D.C. Superior Court in June, rejecting his claim and charging him the Chungs’ court costs.

June 25, 2007
Plaintiff Gets Nothing in Lost-Pants Verdict

WASHINGTON — D.C. Superior Court Judge Judith Bartnoff announced her verdict this morning in the multimillion-dollar lawsuit brought by Judge Roy Pearson against So Jin and Soo Chung, operators of Custom Cleaners in Washington, over a lost pair of pants.