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Content about Microeconomics

February 28, 2012

SAN FRANCISCO — The lifestyle changes of consumers (most notably more casual attire), their extremely hectic lifestyles that limit time and/or desire to run errands, and the downward economic pressure in general have all been factors in the search for alternative profit centers to maintain the economic health of the fabricare industry.

I’m going to address some of the alternatives that are contributing to the sales and profit of cleaners. It is important to remember that any and all of them take careful planning and execution to be successful.

DISASTER RESTORATION

Disaster restoration divisions, with their large orders on the positive side, and the uncertainty of demand on the negative side, have been a common and welcome addition to many companies.

Anyone considering entering this business for the first time is advised to thoroughly research the required initial investment, potential challenges of collection, and the extremely aggressive competition in the sales process. If these factors are manageable, a professional team is required to make this business a success.

September 6, 2011

EVANSTON, Ill. — By focusing on the cultural values of their growing foreign-born Latino workforce, drycleaning plants and laundries can boost productivity, lower per-unit costs and better meet ever-stiffer customer demands.

Most drycleaners have tried to motivate their workers for better productivity—with varying degrees of success. Those with mainly Mexican or Spanish-speaking workers find “gainsharing” gives them more productive employees and a greater competitive advantage. Why? Latin cultural traditions meld closely with gainsharing values.

WHAT IS GAINSHARING?

Gainsharing is a group pay-for-performance program. Worker performance is quantified and given a dollar value. When workers top a threshold pre-set by management, they can earn a bonus. Employees receive half the value of their better performance, and the company, the other half.

September 3, 2010

Jolly Belin of France opened the world’s first drycleaning “business” in the 1840s. He accidentally spilled some kerosene on his stained clothing and saw the spots vanish. The rest is history, as they say.

Today, there are more than 30,000 drycleaning establishments in the United States. About 85% of are small, Mom-and-Pop establishments employing approximately five people and generating about $200,000 in annual sales.

March 20, 2009

MIAMI — Dryclean USA Inc. reports that its revenues and earnings for the three- and six-month periods ending Dec. 31, 2008, grew.

For the three-month period — Dryclean USA’s second quarter of fiscal 2009 — revenues increased 10.1% to $6.2 million,  from $5.6 million in second-quarter 2008. Net earnings for the period increased 25.9% to $225,690 ($.03 per diluted share), compared to $179,266 ($.03 per diluted share) in 2008.

March 16, 2009

RIPON, Wis. — Alliance Laundry Holdings LLC is reporting increased revenue and income for the year ended Dec. 31, 2008.

Net revenues for full-year 2008 increased $17 million, or 3.8%, to $460.3 million from $443.3 million for 2007. Net income for 2008 was $15.5 million compared to $9.9 million for 2007. Adjusted EBITDA for 2008 increased $3.5 million to $72 million from $68.5 million for 2007.

June 23, 2008

LAUREL, Md. — The Award of Excellence (AOE) voluntary certification program has a new website to promote member businesses to consumers, according to the Clothing Care Council (CCC). Consumers can now visit www.gooddrycleaners.com and search by ZIP code to locate a quality drycleaner in their areas.