Content about Labor

NEW ORLEANS — Every morning during Clean ’13, plus for a couple of hours each afternoon, attendees will have the opportunity to sit in on educational sessions aimed at saving them money, boosting their productivity or generally improving their operations or businesses.

Access to all seminars at the Ernest N. Morial Convention Center is included in the show registration fee and isn’t dependent on association membership.

THURSDAY, JUNE 20

• 8-8:30 a.m. — Meritorious Service Awards, sponsored by the Drycleaning & Laundry Institute.
• 8-9 a.m. — Coin Laundry Trends for 2013, sponsored by the Coin Laundry Association (CLA).

Learn where the coin laundry industry is going and how that may affect your business so that you can plan for profits.

FAIRFAX, Va. — Reid Bechtle is the newly appointed chief executive officer for ZIPS Dry Cleaners, the Mid-Atlantic dry cleaning franchise chain has announced.

This comes on the heels of the company’s recent acquisition by JPB Capital Partners, a Maryland-based private equity firm that makes control investments in lower-middle market companies located primarily in the Mid-Atlantic and Southeast United States.

“ZIPS is the perfect opportunity to work with a proven franchisor and enhance a franchise network that is poised for aggressive growth,” Bechtle says. “Together with JPB Capital Partners, I look forward to moving ZIPS Dry Cleaners through its next phase of growth, including improved execution of the existing system and further geographic expansion of the concept.”

APPLETON, Wis. — When I was a new salesperson, one of my first bosses had a saying about the service we were selling: “You can have it on time, cheap, or right. Pick two.”

Consider having your top customer service representative (CSR) inform Mr. or Mrs. Cheapskate, “Well, certainly we will be happy to let you pay $X for dry-cleaning that designer wool blazer. It will be ready for pick up in July.” Or, “Of course we will be happy to charge you $Z and ruin the lining in the pressing process.” I’ll let you have some fun generating additional permutations.

The reason I’m bringing up the issue of cost is that my firm has complied the data from 2012 mystery shopping results from around the country. The cost of providing service is something we are hearing about from owners. For example, we have been told it’s too costly to:

PEMBROKE, Mass. — Let’s talk relationships. You are the boss, and you have employees working for you. You pay them wages to do a good job. You expect them to want your company to do well and become mad when it seems they don’t care. Is there something more you can do to build allegiance and get them to care about your business?

Believe me, if you paid them one and a half times what they would earn at a competitor’s shop, you wouldn’t have created more allegiance. Money is not the answer. You build allegiance by creating a team.

One aspect of a team is that everyone looks out for everyone else. Since you are the most successful member of your team, the heaviest burden falls on you. You must be someone the others can go to when they need a favor.

This is tricky, because allegiance walks a fine line. Become overly friendly with an employee and you’ll lose the ability to be his or her boss. You will have difficulty making the hard decisions that are demanded of a business owner. The crew will take advantage of your softness.

CHICAGO — Quick. Easy. Efficient. Who doesn’t love online banking? Be aware, though, of the danger: Hackers can access your account, drain your funds and threaten the survival of your business.

The risk is growing. Cyber attacks increased some 24% in the first half of 2012 over the same period the previous year, according to a new report from security firm Symantec. Reason? “Any time the economy goes down, white collar crime goes up,” says Bill McDermott, CEO of Atlanta-based McDermott Financial Solutions. “We’re seeing an increase in corporate account takeovers. It’s a huge problem.”

Banks commonly refuse to indemnify companies for funds stolen from commercial accounts. “A lot of people have the misunderstanding that banks offer to business accounts the protection offered to consumers,” says McDermott. “In fact, banks will not hold business account holders harmless for losses from cyber-fraud.”

EVANSTON, Ill. — I once wrote an article titled Training Foreign-Born Hispanics for Supervisory Jobs in the Dry Cleaning Industry due to the need to teach the growing numbers of Latino first-level supervisors how to improve performance in the face of customer demands for high-quality cleaning and next-day service, all at competitive prices.

The article explained how dry cleaners could boost productivity and speed turnaround times by training Hispanic supervisors to adapt the traditional authoritarian Latino leadership style to a U.S. “best practices” mode of supervision. I also discussed the five key elements needed for effective training of Hispanic supervisors.

Here are those elements, and the results of the training from six dry cleaners using this approach. Each had four to seven drop-off stores, for customer convenience, feeding their garments to a single central plant.

ARDMORE, Pa. — The so-called “fiscal cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. For the owners and operators of small- and medium-sized dry cleaning businesses, there is good news and bad news contained in the fiscal cliff tax laws.

First, the good news: greater certainty in taxes. The owners and operators of dry cleaning businesses have grown used to many longstanding tax breaks but they also have had to get used to the uncertainty of whether they will be renewed each year.

On the downside, in addition to a 3.8% Net Investment Income (NII) tax and a 0.9% Additional Medicare tax that, thanks to the Health Care and Education Reconciliation Act of 2010, began in 2013, many dry cleaners and laundry owners discovered they are subject to new taxes. Single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013.

BERKLEY, Mich. — The Certified Restoration Drycleaning Network (CRDN), an international organization of textile restoration specialists serving the insurance industry, has added two new staff members to its corporate management team: Shawn Fair, director of training, and David Grant, national sales manager.

Fair is responsible for the development and implementation of internal and external training, enabling CRDN to enhance the breadth and depth of its educational programs. Prior to joining CRDN, Fair spent 15 years in executive sales, management and training in the telecom and wireless industries. He has served as a director of sales and as training executive.

CHICAGO — The gut-wrenching volatility in the stock market over the past few years has been a tough challenge for busy business owners and professionals. That’s probably why so many are looking for professional help in dealing with investment decisions.

Business for “financial advisers” has been booming since the 2008 market meltdown. The problem is that searching for the right adviser can be almost as difficult as searching for the right stocks.

In most states, anyone can declare himself or herself a financial adviser without the need for a license or any formal credentials, even to the point of creating an official sounding title. At most brokerage firms, employees who used to be called stockbrokers are now called financial consultants or advisers. Whatever they are called, it’s important to remember that they are essentially salesmen who earn their money by getting you to buy and sell equities.

CHICAGO — DECEMBER SAW THE NATION’S ECONOMY adding another 160,000 jobs, although the unemployment rate remained at 7.8%, according to the U.S. Bureau of Labor Statistics. Job numbers increased in the healthcare, food service, construction, and manufacturing industries.

“December’s report marks 34 straight months of private-sector job growth, which have added close to 5.8 million jobs,” says Secretary of Labor Hilda L. Solis. “For nearly three years, steady gains have occurred across different sectors of the economy, and December finishes a strong year of consistent growth with average increases of about 160,000 private-sector jobs per month in 2012.”

THE NON-MANUFACTURING SECTOR ALSO GREW in December for the 36th consecutive month, according to the latest Institute for Supply Management’s Non-Manufacturing Report on Business, with a report of 56.1% in December, which was 1.4 percentage points higher than the November figure.

CONCORD, N.C. — I recently received a phone call from my friend, Norman Oehlke. Norm probably served IFI (now DLI, the Drycleaning and Laundry Institute) in most every technical position and wrote this very column until 2008. When he speaks, I listen. Closely.

He still keeps a close eye on the cleaning industry and the changing solvents. We talked about the changes we had seen and the struggles facing owner/operators in today’s marketplace. We exchanged a few ideas and agreed that many cleaners have fallen victim to the concept of processing over pampering.

A symptom of this is that large companies have perceived there is profit in home dry cleaning kits due to consumer dissatisfaction with the quality of garment care available. Sadly, these dry cleaning kits have intimidated a number of cleaners, owner/operators who consider the end product of their service to be little better than the level of quality delivered by a rag, a bag and a home dryer.

OXFORD, Miss. — Herron Rowland really didn’t want to sell the corner location his Rainbow Cleaners occupied. For months he politely declined the inquiries of a real estate developer representing a major drug store chain. The chain kept looking for a suitable site in Oxford but always came back to Rainbow’s corner. Eventually, Rowland agreed to sell the property and relocate his business.

He promptly set into motion a plan to build a better plant. Having seen his business operate out of what once had been a steakhouse, Rowland was excited to take advantage of the opportunity to build new.

He invested in excess of $1 million to design and develop a 5,000-square-foot “building that’s purpose was to function as a dry cleaning operation.” That high-visibility plant, located just seven blocks from Rainbow’s previous location, earned the Grand Prize for Best Plant Design in the 52nd Annual American Drycleaner Plant Design Awards.