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March 27, 2012

SAN FRANCISCO — About 2% separates our industry’s average utility cost and the benchmark, which equates to another $20,000 of profit per $1 million of sales

SAN FRANCISCO — Small businesses are generally not very resource-efficient. This is certainly true of drycleaning and laundry plants. The differential between our industry’s average utility cost and the benchmark utility cost as a percentage of sales is approximately 2%, which equates to an additional $20,000 of profit per $1 million of sales. That is a savings worth pursuing.

The easiest way to reduce this expense is to have professionals conduct an energy audit. Often, your utility provider offers this service free. If that is not the case in your area, there are professional energy consultants who perform the same service and get paid a percentage of your resulting cost savings.

EFFICIENCY CHECKLIST

A myriad of resources exist on the subject, some of which are referenced later in this article. You are probably familiar with the basics of energy and resource efficiency, but the following “Efficiency Checklist” may be helpful as a refresher.

General:

• Track your resource usage

• Compare your usage to industry benchmarks

March 26, 2012

HARRISBURG, Pa. — The Pennsylvania Department of Environmental Protection awards grants for energy-efficiency or pollution-prevention projects

HARRISBURG, Pa. — The Pennsylvania Department of Environmental Protection has awarded more than $62,000 in grants to help 31 small businesses across the state, including some dry cleaners and laundries, invest in energy-efficiency or pollution-prevention projects.

“This program empowers small-business owners to invest in important upgrades that make the most sense for their business,” DEP Secretary Mike Krancer says. “It gives them the opportunity to lower the costs of production, which makes them better environmental stewards and more competitive.”

Receiving grants were:

March 1, 2012

PEMBROKE, Mass. — A customer walks into your store and says a few words to the counter person. Your employee enacts some business: looks up an order, takes in money, pulls the order off the rack and hands it to the customer, or checks the status of an item. Then the customer leaves.

This exchange is typically brief—three to five minutes at most—but it is the most important few minutes for you and your customer.

This time of customer/employee interaction is an opportunity for your business to shine or to disappoint. It is how the customer forms his/her opinion of his/her dry cleaner. The customer walks out with answers to these questions:

February 23, 2012

COLD SPRING, Ky. — Two valued Fabritec International employees and veteran contributors to the dry cleaning industry have died in recent months, the company reports.

Retired Vice President Bob Knippling died Jan. 12 at age 85. Knippling, a U.S. Army veteran who served during World War II, graduated from college with degrees in chemistry and biology. He joined then-Emery Industries in 1951 as a chemist.

While with Fabritec, he was in charge of the Stamford distribution and Emerbrite divisions, and he worked closely with Fabritec’s salesmen. Knippling made major research contributions during his 50 years in the industry. He served as Fabritec vice president for 20 years before retiring in 2001.

Retired Sales Support Manager John Geer died Oct. 22 at age 78. After receiving a physics degree, Geer began his dry cleaning career with his family’s business in Marion, Ohio. In 1976, he joined Fabritec (Emery Industries at the time), where he became director of technical services.

February 22, 2012

PUERTO RICO — The Five-Star Brainstorming conference, co-sponsored by the Drycleaning & Laundry Institute and the National Cleaners Association, was pronounced a success by organizers and attendees.

About 50 dry cleaning professionals gathered at a Puerto Rican resort in mid-January to discuss customer trends and produce ideas to improve their businesses. The unique gathering, the first time the two groups have co-hosted a conference, featured a number of speakers, including Brian Carter, co-author of Facebook Marketing.

“He showed attendees that you really can make money with Facebook,” says Brian Johnson, DLI director of education and analysis.

Identifying different levels of familiarity with online marketing among audience members, Carter tailored his talk to involve all attendees. He provided basic steps that everyone, even those with only 15 minutes per month to spend on the project, could take, including creating a Facebook page and running a simple Facebook ad to promote their business in their area.

February 16, 2012

LOS ANGELES — During that first hard year of building my personal management company, I had lunch with Michael Levine, a celebrity publicist who seems to show up on TV every time a star overdoses, heads to rehab or goes to jail.

“Rick,” he said, “what you need is revenue. Doesn’t matter if you believe in the clients or not, it only matters if they help pay your rent.”

Several years later, with my company now mature and well established, he called me to remind me that it was his advice that led to my subsequent success.

“I do have to thank you,” I told him. “Every time I thought about taking on a client I wasn’t passionate about but was making money, I thought of your advice and chose not to take on the client.”

My business success was predicated on casting directors and producers believing in my sense of taste. How could I have asked the buying community to trust my belief in my clients if I didn’t believe in them?

February 15, 2012

FAIRFIELD, N.J. — The Textile Care Allied Trades Association’s Annual Management and Educational Conference will feature three speakers covering a wide array of topics to help members with their businesses.

Scheduled to appear during the April 18-21 event at the Williamsburg Lodge in Williamsburg, Va., are:

February 2, 2012

HARRISBURG, Pa. — The Pennsylvania Department of Environmental Protection (DEP) recently awarded 46 small businesses $293,889 in grants to help them invest in energy-efficiency or pollution-prevention projects, and three dry cleaners—Quality Cleaners in Lemoyne, Steininger’s Laundry & Dry Cleaning in Selinsgrove, and Murrysville Cleaners in Murrysville—were among the recipients.

Quality Cleaners received a $7,500 grant to aid in the purchase and installation of a K4 hydrocarbon system to replace a perchloroethylene system (total project cost is $87,635). The business is owned by Barry Gordon.

Steininger’s Laundry and Dry Cleaning received a $7,500 grant to aid in upgrading to a Union drycleaning machine for greater solvent mileage and waste reduction (total project cost is $67,385). Owner of the company is Charles Steininger.

Murrysville Cleaners received a $7,500 grant to install a high-efficiency boiler, with a goal of reducing emissions (total project cost is $31,000). David Beatty is the owner.

January 30, 2012

SAN FRANCISCO — You may be experiencing pangs of envy as you congratulate this year's Plant Design Awards winners. A new plant can be a tremendous asset, but an existing plant can feel new again with some focused effort. Relatively minor revisions can improve productivity, boost morale, increase throughput and enhance profit.

Here are 10 ways to renew your existing plant:

10. REMOVE THE CLUTTER

Overcome the “pack rat” tendency to hold on to everything. This is a huge challenge for frugal owners, but clearly most excess/old equipment will never be re-activated. Even if you operate duplicate equipment and keep the defunct piece for parts, can the usable parts be more orderly?

How often have the boxes stored in the out-of-the-way places been opened? Do you know what they contain? Why are the contents being saved? Do they have any value that can be captured by use or sale?

Removing excess unused items of all kinds provides light, air and floor space for productive use and shows an organized approach to operating your business.

January 19, 2012

LOS ANGELES — Those who know I spent 25 years in show business often ask why I’d ever leave show business for dry cleaning. And they get one of three answers.

Some I tell that I’ve been to the Cannes Film Festival, to Sundance, to the Toronto, London and Telluride Film Festivals, and the nicest people I’ve met were at the Long Beach dry cleaners convention.

And that’s true: in Sundance, everyone looks both ways before saying hello; they don’t want to engage you and miss Harvey Weinstein or George Clooney coming their way. But dry cleaners have spent 12 hours a day for years being nice to the customers who walk in their stores and, as a result, they’ve just become nicer.

Others I tell that I wanted to represent a product instead of a person, especially after having clients who wanted me to complain to the studio and network of the series they were starring in that they wanted DirecTV, not Dish TV, wired into their dressing room. No matter how successful our business gets, I doubt one will ever demand premium cable channels.

January 11, 2012

SAN DIEGO — Margaret’s Cleaners’ 22,000-square-foot plant, formerly an upholstery fabric outlet, was designed from the ground up for servicing couture garments and accessories. Work on the two-story structure began in summer 2009 and continues today.

“That’s who we are,” says Chuck Horst, president of the family-owned company and the plant’s designer. “We’re always making changes. I have two departments in a temporary home as we’re still getting the remainder of those departments set up. … The plant is 95% complete.”

Margaret’s services more than 150 fine retailers. It offers delivery throughout Southern California plus Las Vegas, and nationwide through CleanByMail.

THEY DO

Two professional photo studios are available to keep up with photography demands. One studio is used to document wedding gowns and other garments, before and after cleaning and restoration. The other is used exclusively for Margaret’s luxury wardrobe storage and archive service called Garde Robe.

January 3, 2012

PEMBROKE, Mass. — Tax time is here again. Before I give you some tax tips, I want to tell you to pay your fair taxes. I know that not all of you do.

While visiting a dry cleaner’s store, he said to me, “I pay myself a salary of $25,000, $500 a week. But I can’t make it on that. So I take another $20,000 out of here,” pointing to his cash register.

I looked around his small shop. This owner has worked hard 15 years to make his living. He’s doing no more business now than he was a decade ago, and he still does the lion’s share of volume himself. He works 50-55 hours a week processing clothes.

I ask myself, has he not progressed because he skims the top? Is he not interested in building a business? Is his only goal to make a living?

Would it have been different if he drew a fair salary, paid his fair share of taxes, and stayed focused on the business? I can’t say for certain, but I bet his unwarranted withdrawals have had something to do with his lack of progress.

December 21, 2011

ALBANY, Ga. — Equinox Chemicals has announced that it has acquired Adco Cleaning Products, based in Sedalia, Mo. Terms of the acquisition were not announced.

Equinox will move Adco’s manufacturing operations to its state-of-the-art manufacturing plant in Albany, according to Yalda Harris, Equinox’s executive vice president for Global Product Management. Dr. Jim Schreiner, Adco’s chief product technology officer, will also be relocating, she says.

Customer-service and order-taking staff will remain in Sedalia, and there will be no changes to the way customers or distributors order from Adco, Harris adds. The national sales team will remain the same.

Nine operator jobs and one office employee have been relocated to Albany, with many key employees receiving relocation package offers, according to Harris.

Equinox is a specialty chemical manufacturer with specialty research, innovation, product development and commercialization capabilities that reach markets spanning the globe, the company says.

December 20, 2011

SAN FRANCISCO — What a year it has been! Much about 2011 was erratic—the economy, sales trends, financial markets, even the weather. Plus, there were asteroids headed for earth, natural (and man-made) disasters, industry consolidation … and the necessity to proactively sell our services.

The uncertainty created by all these events affected our customers as well as our businesses. It has made budgeting and goal setting for the coming year a greater challenge than ever.

Although there were strong signs of improvement, there are no guarantees for 2012. If you feel that 2011 drove you to be reactive instead of proactive, now is the time to create your strategic and tactical plans for the year ahead.

Planning for the Future

As a business owner, you have worked to improve your efficiency, but this may not be enough to generate distinctive competitive advantages.

December 14, 2011

EVANSTON, Ill. — As we predicted here several months ago (Could The Unions Still Clean Up?), the National Labor Relations Board (NLRB) is continuing its pro-union agenda with the same thunder as a battleship blasting a broadside.

On June 21, the NLRB published the proposed changes it wants in rules governing union representation elections. When adopted, these rules will make the jobs of union organizers easier by handcuffing management and fast-tracking representation elections in which a company’s employees vote whether or not they wish to unionize.

Following the defeat in Congress of the Employee Free Choice Act, which would have allowed “card check unionization” and eliminated nearly all representation elections, union leaders are trying a different way to reach their easy organizing goals. They know “if you can’t legislate, regulate.” And the NLRB regulates labor relations in America.

December 12, 2011

EVANSTON, Ill. — As we predicted here several months ago (Could The Unions Still Clean Up?), the National Labor Relations Board (NLRB) is continuing its pro-union agenda with the same thunder as a battleship blasting a broadside.

On June 21, the NLRB published the proposed changes it wants in rules governing union representation elections. When adopted, these rules will make the jobs of union organizers easier by handcuffing management and fast-tracking representation elections in which a company’s employees vote whether or not they wish to unionize.

Following the defeat in Congress of the Employee Free Choice Act, which would have allowed “card check unionization” and eliminated nearly all representation elections, union leaders are trying a different way to reach their easy organizing goals. They know “if you can’t legislate, regulate.” And the NLRB regulates labor relations in America.

December 1, 2011

The National Labor Relations Board has postponed the implementation date for its new notice-posting rule to allow for enhanced education and outreach to employers, particularly those who operate small and medium-sized businesses.

The new effective date of the rule is Jan. 31.

The decision to extend the rollout period from November followed queries from businesses and trade organizations indicating uncertainty about which businesses fall under the Board’s jurisdiction, and was made in the interest of ensuring broad voluntary compliance. No other changes in the rule, or in the form or content of the notice, will be made, NLRB says.

Most private-sector employers will be required to post the 11-by-17-inch notice, which is available at no cost from the NLRB through its website, either by downloading and printing or ordering a print by mail.

November 22, 2011

PEMBROKE, Mass. — Raises are not exactly a hot topic these days, particularly in the dry cleaning industry. But here is a story of something that happened to a young person I know, and it’s worth reading.

This person—we’ll call her Liz—had been working at a dry cleaner for a year when she asked for a raise. She wasn’t the usual type of worker. She was a college graduate who had taken a lowly job at a two-plant, four-store chain in the hopes that she would move up the ladder. The owner, a sharp businessman, realized her worth and didn’t want to lose her. He sensed that she could grow to become one of his top managers. On the other hand, business was down. There were no raises.

The owner called Liz into his office and closed the door. “Liz, these are hard times. My business is down 10%. I’m hard up against all my costs. Things will improve, but not tomorrow or the next day. On the other hand, you’re a good worker. So I’m giving you a 50-cents-an-hour raise because you’ve asked for one and because you’re been a loyal employee. And, finally, I don’t want to lose you.

November 16, 2011

WASHINGTON — The Internal Revenue Service (IRS) has launched a program that will enable many employers to resolve past worker classification issues and achieve certainty under the tax law at a low cost by voluntarily reclassifying their workers.

This new program will allow employers the opportunity to get into compliance by making a minimal payment covering past payroll tax obligations rather than waiting for an IRS audit.

The new Voluntary Classification Settlement Program (VCSP) is designed to increase tax compliance and reduce burden for employers by providing greater certainty for employers, workers and the government. Under the program, eligible employers can obtain substantial relief from federal payroll taxes they may have owed for the past, if they prospectively treat workers as employees.

The VCSP is available to many businesses that erroneously treat their workers as non-employees or independent contractors, and now want to correctly treat these workers as employees.

To be eligible, an applicant must:

November 15, 2011

CONCORD, N.C. — If you have been in the industry for less than three years, if you have never received formal training in the “ins and outs” of garment care, if you are dependent on outside salesmen for your information and technical set-up, I urge you to take a minute or two and read this column. It will cover a variety of subjects related to stain removal, and even a little about good, basic dry cleaning that contributes to stain removal.

I have the opportunity to visit a variety of operating plants during a given year and see the ideas of other business people being applied. It breaks my heart to meet someone who has invested their own money plus borrowed money, only to find that volume was much less than they expected. Each and every time, I find someone who failed to research the technical side of cleaning and assumed that buying equipment and leasing space were going to make them rich. Pride goes before destruction.

October 26, 2011

LOS ANGELES — I have shopped all over the world: in Toronto, I shop at Rochester Big and Tall. In New York, Rochester Big and Tall. In London, Rochester; Chicago, Rochester. Being 6-foot-4 with 37-inch sleeves, my choices in clothing have been pretty limited. At most big and tall men’s stores, Nehru jackets are just coming into style.

That was a bit of a problem when I was a personal manager and knew that there’d be some “Hollywood” people judging me on my “look.” Though I love dressing well, most clothing stores are fashion museums to me, and stylish clothes the artifacts.

I compensated with ties. I became known for having an amazing tie collection: thin, wide, vintage and new. While designer threads were out of the question because they weren’t made in my size, I got people to focus on the one fashion accessory where I could compete.

Instead of accepting my limitations, I concentrated on the positives.

October 13, 2011

SAN FRANCISCO — Why would you want to share information with employees? When times are tough, you keep the bad news, tight cash flow and potential layoffs all to yourself. When times are good, you want more of the money for yourself, repay your own debts, make up for the tight times and then think about growing and reinvesting again. On the other hand, we’ve all heard that sharing information with employees is a good idea. What’s the scoop?

THE HERE AND NOW

There may be times when growth is spectacular or, alternatively, sales drop dramatically, but neither of those conditions dominates right now. The more common situation today is to have a few days or weeks that are better than the last two years because of your sales efforts. If those efforts fall off, volume falls off a bit.

October 11, 2011

CHICAGO — In the spirit of Halloween, American Drycleaner asked members of the trade audience to answer which spooky scenario frightens them the most. And while there was a clear-cut No. 1 choice, every potential situation presented in the Wire survey received votes.

Top of the list—at 26.3%—was receiving a call from the Occupational Safety & Health Administration (OSHA) after it had received an anonymous complaint. Running a close second at 23.7% was a lengthy power outage. Third (15.8%) was “other,” including fears of going out of business and being investigated by the Environmental Protection Agency.

Other scenarios were a key piece of equipment is out of commission (13.2%), a big customer stops using your service (10.5%), a staff member injured on the job threatens to sue (5.3%), circumstances force a 10% cut in next year’s budget (2.6%), and an audit reveals that funds are missing (2.6%).

Operators were asked about the most frightening thing to have affected their store or plant. Some of the responses were:

October 6, 2011

WILLIAMSBURG, Va. — The Mid-Atlantic Association of Cleaners (MAC) will host its Annual Convention here on Oct. 22-23 at the Holiday Inn.

MAC’s board meeting on the morning of Oct. 22 will be followed by free time so that attendees can visit the area’s attractions. Drycleaning & Laundry Institute CEO Mary Scalco will be the dinner speaker that night.

DLI President Charlie Smith will preside over the Oct. 23 Educational Conference. Scheduled educational sessions include:

  • The Most Common Employer Mistakes, by attorney Frank Kollman.
  • Conducting Your Business to Minimize Environmental Liability, by attorney Channing Martin.
  • Using Data to Provide Better Customer Experiences, by Norman Way, Puritan Cleaners.

Also on the agenda is Frank Briercheck, director of marketing for Phenix Supply and an expert on supply costs, packaging and route sales.

MAC’s allied trades organizations will also stage a tabletop trade expo that day.