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Content about Management

May 14, 2013

CHICAGO — Nearly two-thirds of dry cleaners have given pay raises on individual basis in last six months

CHICAGO — A majority of dry cleaners report they have given raises in the last six months, according to data from this month’s unscientific American Drycleaner Wire survey.

When asked if they’ve reviewed employee compensation in the last six months, 64.7% of respondents replied yes, saying they “raised pay on an individual basis,” while 23.5% “raised pay across the board.” Only 11.8% replied no, saying that they “did not raise pay.”

Coinciding with this trend, more than half of cleaners (52.9%) report that they pay their employees more than other plants in their market area. Roughly 41% of respondents have kept their pay rates about the same as other area plants. Just 5.9% report paying their staffers less than other plants in their area.

Just 17.6% of respondents report having had to lay off employees in the last 12 months for financial reasons.

May 2, 2013

PEMBROKE, Mass. — Identify anything that shows where customers are coming from

PEMBROKE, Mass. — Do you have a map on your office wall? No? You should. I don’t mean a road map, but rather a map of your marketplace.

This map would depict your competitors, busy main drags, affluent neighborhoods, any information that tells you where your customers are coming from.

This is not something that you can purchase, so I suggest you get started making your own. Start with a town or city map that lists streets; have it blown up. Then fill in the information that you need.

Obviously there’s the town you’re in, but if you do business in neighboring towns, include them. Put in competitors in all directions. Color-code affluent high-use neighborhoods. Mark in busy shopping streets and commuter roadways. You might have to drive around and explore the territory in order to do justice to your project. The effort gets you canvassing the territory, which is a good thing to do, because you’ll continually make discoveries.

April 29, 2013

FAIRFAX, Va. — Has spent majority of 33-year career in senior management positions

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.”

March 28, 2013

EVANSTON, Ill. — Teaching Latino supervisors how to improve performance in face of customer demands

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 continued 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.

March 26, 2013

EVANSTON, Ill. — Teaching Latino supervisors how to improve performance in face of customer demands

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.

March 7, 2013

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 13, 2013

HANOVER, Mass. — Franchise looks to bring signature services overseas

HANOVER, Mass. — Lapels Dry Cleaning has built its franchise upon environmentally friendly dry cleaning methods, “outrageous” customer service and marketing, the company says, and now it’s looking to bring those signature services abroad with a new international division.

“I believe there are markets outside the United States that will be as strong, if not stronger, because of the lack of quality competition and the importance of quality garments and the care of those garments,” says Michael Eisner, director of franchise development for Lapels. “Over the years, we have been inundated with requests for franchising from overseas.”

“Being able to have your garments cleaned in an affordable and timely fashion that doesn’t negatively impact the environment is something that’s appreciated everywhere, not just in the U.S.,” says Lapels CEO Kevin Dubois. “With this new division, we are currently speaking with Franchise Partners from across the world and anticipate opening our first store within 2013.”

January 16, 2013

GILBERT, Ariz. — Granite counters, custom cabinetry, chandeliers, pendant lighting and more

GILBERT, Ariz. — The newest Lapels Dry Cleaning plant from Massachusetts-based franchisor Next Step Franchising features granite counters, custom cabinetry, chandeliers, pendant lighting, French doors, etched glass, crown moldings, and a fully separated call area from the on-site plant.

Lapels offers dry cleaning, shirt service, on-site tailoring, leather/suede care, shoe repair, 24-hour drop-off, heirlooming, and same-day service, pickup and delivery.

The air-conditioned production area in the 2,200-square-foot facility includes a Firbimatic hydrocarbon dry cleaning machine, Wascomat wet cleaning equipment, and Forenta and Unipress finishing and tensioning equipment. Boiler room equipment is by Fulton and Ingersoll Rand. The plant utilizes DCCS and SPOT Business Systems point-of-sale software.

This Lapels location employs 12 full-time-equivalent workers.

Next Step Franchising designed the plant layout, and Mike Marden, Marden Design, was architect.

December 27, 2012

SAN FRANCISCO — Isn’t it reasonable that the way the industry was run when you learned the business may need an update?

SAN FRANCISCO — Often, your biggest asset can also be your biggest obstacle. Your positive experience that led to past success can blind you to the current opportunities that exist with new approaches.

Some examples might be:

November 12, 2012

GREENBELT, Md. — Pro basketball player sees parallel between franchising and sports

GREENBELT, Md. — Jared Jeffries of the NBA’s Portland Trail Blazers, along with business partner Shawn Strader, recently joined the likes of Shaquille O’Neal, Venus Williams and Drew Brees in looking to make a fortune in franchises.

Jeffries and Strader have committed to opening a ZIPS Dry Cleaners, a Mid-Atlantic-based chain that has built a brand name on its low-cost, one-price-for-any-garment model. Their franchise is expected to open in Northern Virginia by the end of the year.

“Owning a franchise was the next logical step for me and Shawn, and ZIPS provided a safe and promising way to ease into the industry,” says Jeffries, who has been business partners with Strader since the two started their own company specializing in residential real estate investment in 2007.

Jeffries also believes franchising is uniquely suited to the skill sets he has developed as a professional athlete.

May 24, 2012

WOODSTOCK, Ill. — Equipment maker gets new digs, new employees

WOODSTOCK, Ill. — Firbimatic, a manufacturer of dry cleaning machines, has relocated its U.S. corporate office to 13802 Washington St., Suite A, Woodstock, IL 60098. Its toll-free number—800-220-0630—and website—firbimaticusa.com—are unchanged.

The company announced two new hires: Rod McLemore as sales manager and Jon Pierce as parts manager.

McLemore brings with him extensive knowledge acquired through management/ownership of a large drycleaning chain in Texas, and many years working with various equipment manufacturers.

Pierce comes from the IT field with extensive knowledge in computers and web design, Firbimatic says. His responsibilities include effective inventory management and ensuring that Firbimatic provides the highest levels of customer service, according to the company.

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.

August 27, 2010

CHICAGO — In all my years in business, I’ve only fired one person. Usually, I let problem employees dig their own holes, and they fade off into history. Documentation is the key to blocking an unemployment claim—or so I thought.

I’m not saying that documentation doesn’t work, but I am saying that whoever works in the Illinois Department of Employment Security (IDES) offices is giving out benefits regardless of documentation. Perhaps they are being more lenient because the economy is weak, but it isn’t helping my business.

August 13, 2010

CHICAGO — Workplace violence is far too common; it seems like there’s a news report about a shooting rampage daily. Someone often knows about the killer’s emotional problems or violent tendencies, but does nothing. Are people afraid to get involved? Is society reluctant to profile those who might be a threat to others for the sake of individual rights?

October 7, 2009

How well do you know your community? The knowledge is invaluable to a business — it can’t be bought or sold. It provides you with one of the most valuable competitive advantages you can have. How do you use this knowledge on a daily basis?

Some in the industry think that retail drycleaning is mostly a real-estate venture: Picking the right neighborhoods, and the right locations, and the right drive-thru buildings nearly guarantees success.

July 20, 2009

SAN LEANDRO, Calif. — Small-business leaders believe that the work environment has more impact on employee satisfaction than financial factors such as benefits or compensation, according to a quarterly survey of more than 250 small businesses conducted for TriNet, a provider of human-resources outsourcing services to small businesses.

July 1, 2009

Suppliers and vendors are critical to the success or failure of a drycleaning operation. They are the source of equipment and partly responsible for its longevity; vehicles and their roadworthiness; point-of-sale (POS) systems, cleaning solutions and packaging materials. They represent your company’s second-largest expense after employees.

February 4, 2009

Suppliers and vendors are critical to the success or failure of a drycleaning operation. They are the source of your equipment and its longevity; your vehicles and their roadworthiness; and your point-of-sale (POS) systems, cleaning solutions and packaging materials. They represent your company’s second-largest expense after employees.

December 9, 2008

DRAPER, Utah — SPOT Business Systems has opened a new customer-service support center in Draper, Utah. This 2,000-square-foot facility effectively doubles the total future capacity for technical-support service personnel, the company says.

July 18, 2007

The “winners” in business are the companies that first recognize and effectively use new ideas and technologies, or find and exploit new efficiencies and markets.

Two dramatic examples are FedEx and Microsoft. FedEx developed a way to deliver packages overnight at a profit. Microsoft found ways to take advantage of improved computer hardware to standardize and sell software repetitively.