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May 1, 2013
Cutting Energy Costs (Part 2 of 2)

CHICAGO — Best strategy for keeping things in check: audit energy use regularly

CHICAGO — In today’s competitive business environment, it makes sense that every dry cleaning plant operator is seeking ways to increase profit. But one can increase prices only so much. And with any potential labor savings having generally been rung out of most plants, operators must find other ways. Simultaneously, environmental impact is a major concern.

One of the areas in which to save, yet one that is often overlooked or glossed over, is the high cost of energy: electricity, heat and water. Hence, prudent dry cleaning plant operators are, or at least should be, having a critical look at this expense and seeking ways to reduce this financial drain.

The best way to reduce this expense is to implement a pre-planned assessment (a.k.a. audit) of the energy consumers in your dry cleaning plant. Much of this you can do yourself. For those systems and equipment items that could prove more difficult to assess, most utility companies are more than willing to assist, usually at little or no cost to you.

April 30, 2013
Cutting Energy Costs (Part 1 of 2)

CHICAGO — Best strategy for keeping things in check: audit energy use regularly

CHICAGO — In today’s competitive business environment, it makes sense that every dry cleaning plant operator is seeking ways to increase profit. But one can increase prices only so much. And with any potential labor savings having generally been rung out of most plants, operators must find other ways. Simultaneously, environmental impact is a major concern.

One of the areas in which to save, yet one that is often overlooked or glossed over, is the high cost of energy: electricity, heat and water. Hence, prudent dry cleaning plant operators are, or at least should be, having a critical look at this expense and seeking ways to reduce this financial drain.

Best of all, energy costs are among the expenses that can be reduced without negatively affecting product quality or staff productivity. The direct cost of energy generally represents about 6% to 18% of total operating expenses. For those who also have an attached coin laundry, it consumes between 15% and 20% of revenue. Both depend on which part of the country you are in and your plant’s efficiency.

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:

April 28, 2011
Energy/Fuel Outlook: Stability And Volatility

WASHINGTON — The prices for natural gas and electricity remain stable, while regular-grade gasoline continues to climb, according to the most recent U.S. Energy Information Administration (EIA) short-term energy outlook.

Natural gas working inventories ended March 2011 at 1.6 trillion cubic feet (Tcf), slightly below the 2010 end-of-March level. EIA expects that working gas inventories will remain relatively high throughout 2011.

September 22, 2010
Lower Economic Expectations Fuel Natural Gas Price Projections

WASHINGTON — As fall nears, laundry owners may be looking at slightly lower-than-expected costs for natural gas, according to the most recent U.S. Energy Information Administration (EIA) Short-Term Energy Outlook.

The government projections reflect updated expectations for economic activity, with forecasted U.S. real gross domestic product (GDP) growth of 2.8% in 2010 and 2.3% in 2011, down from the previous growth projections of 3.1% and 2.7%, respectively.

June 30, 2010
Natural Gas: Weather A 'Wild-Card' Pricing Factor

WASHINGTON — While total natural-gas consumption is slightly up from last month’s forecast, prices are holding steady, and next year’s prices have been revised down a bit, according to the latest U.S. Energy Information Administration (EIA) short-term energy outlook.

March 31, 2010
Awareness Is Key to A 'Green' Message

Being “green” can create great opportunities, and with opportunity, there is always risk. But to ignore the trend or create an appearance of apathy is, I think, the greatest risk of all.

Some cleaners just buy a banner that says “Environmentally Friendly Cleaning” and don’t change a thing. Others follow “green” ideals to the letter. There are drycleaners all over the “green”-marketing spectrum, from “greenwashers” to “treehuggers.”

February 17, 2010
Use Tax Time to Take Stock

Tax season is here, and what are you going to do about it? “Don’t bug me,” you say, “I’ve got a business to run, orders to get out, employees to motivate, customers to satisfy. My accountant handles everything.”

Okay, but remember, you’ll spend extra money on accounting when you should be watching every expense carefully. More importantly, you’ll miss a great opportunity to build a keen understanding of your business.

March 3, 2009
Swan Cleaners Earns First Green Cleaners Council Certification

COLUMBUS, Ohio — The Green Cleaners Council (GCC) has named Swan Cleaners, with 31 locations in the greater Columbus, Ohio, area, its first fully Certified Green Cleaner, with four “leaves.”

“This certification is not only an important step for Swan Cleaners, but for our entire industry,” says Paul Gelpi, president of Swan Cleaners. “We’re proud to be the first cleaner in the world to win this prestigious award. Many other cleaners claim to be ‘green,’ but they’re just green with envy!”

October 13, 2008
Colder Winter, Worsening Economic Conditions Point to Higher Natural Gas Costs

WASHINGTON — According to the National Oceanic Atmospheric Administration’s (NOAA) most recent projection of heating degree-days, the lower 48 states are forecast to be 2.4% colder this winter compared to last winter, so households heating primarily with natural gas are expected to spend an average of $155 (18%) more this winter, according to the United States Energy Information Administration (EIA).

November 7, 2007
Barton Solvents Focuses on Recovery

DES MOINES, Iowa — Since a massive explosion and fire destroyed an Iowa warehouse, and loading dock last Monday, chemical supplier Barton Solvents is focusing on recovery.

The fire took local firefighters 11 hours to contain last week, and debris was still smoldering several days later. A preliminary review indicates that static electricity sparked an explosion of ethyl acetate, which has an extremely low flashpoint. Barton’s Valley Center, Kan., fire earlier this year is thought to have been ignited by a drycleaning solvent.

November 1, 2007
Audit Your Energy Use

According to the business-statistics firm BizStats, the cost of utilities in a drycleaning plant is 5.8% of its total income; for coin-ops, which many plants also operate, it’s 18.6%. A limited, unscientific survey I conducted suggests that these figures are not far off. These are high percentages that threaten to erode profits seriously.