National Clothesline

The beginning of the year signifies a time for resolutions — a time when most people are ready to make changes, albeit under their own terms. Of course, change comes whether we want it to or not, and it can happen on any day of the year. The truth is, most of us are creatures of habit who hate doing things differently. We resist it. But, whether we want the world to change or not, it continues to do so, faster than ever. What does that mean for your business? According to columnist Dennis McCrory, it means everything. This month, he writes, “Cleaners who can accept change and use it to their advantage will be the survivors. Those who cannot will, in time, fade away.”

Currently, there are two chief schools of thought dominating the industry. Some cleaners believe in providing stellar service and aren’t afraid to raise their prices and charge more. Others think they can provide good enough service while offering relief to their patronage’s pocketbooks. There are merits to both methods, but will both work in the future? The problem is that customers expect more every day. Many already demand a perfect final product for a competitive price. It’s hard to meet such standards. Low-priced cleaners face the dilemma of when to raise prices and by how much. If you wait too long and raise the prices by a significant increment, customers will feel cheated. Yet, many consumers also grow weary of prices that are increased often, which could prompt them to look elsewhere for more affordable service.

No matter which type of cleaner you are, you can learn from the other archetype. Higher-priced cleaners can ask how discount cleaners charge so little and still be in business. On the other side, discount cleaners have to understand that price alone won’t keep customers coming in the door. They expect more value for their money. After all, there is no point in going to the cleaners — no matter how little they charge — if you don’t get back your clothes stain-free and ready to wear.

So, as usual, the only thing for certain is that nothing is certain. The industry will continue to change... gradually shifting toward meeting the ever-increasing expectations of customers. Keeping up with those standards might seem impossible when you look at the big picture, but not so much if you break it down in scope. In other words, don’t wait until you have to make drastic changes just to stay alive. Make a point of instigating new “resolutions” every month, or, if need be, every week. Those who change as the world changes — little by little — hardly feel like they are changing at all.

For years, one of the selling points for professional garment care has been “protecting your investment in your wardrobe.” Unfortunately, Americans are less inclined to see their wardrobes as investments these days. And why not? New clothes are a bargain. Over the past 10 years, while the Consumer Price Index rose 27 percent, clothing prices fell 10 percent. In some key apparel categories, the decline has been even steeper — 25 percent for women’s dresses, for example. Low-cost imports and intense competition among retailers have driven prices down for almost every type of clothing except men’s socks, underwear and neckties. And let’s face it, there’s not a big market for cleaners in protecting a man’s investment in socks and underwear.

The fact that imports — which constituted 97 percent of the clothing sold in the U.S. in 2003 — may be of lower quality is a concern to cleaners who are asked to service those garments, but many consumers don’t seem to care. The stuff is so cheap that it’s almost disposable. Why pay $50 to clean a leather jacket that you paid $100 for two years ago when you can buy a new replacement for $60 from a retailer desperate to keep sales figures up?

Don’t expect this trend to reverse anytime soon. The American apparel manufacturing industry has all but disappeared and competition among garment-makers from abroad to satisfy the American appetite for new clothing will continue to drive prices down.

Sorry, we don’t have a solution, but we are told that one of the growth industries in the apparel sector is the sorting, grading and repacking of the hundreds of millions of garments that U.S. consumers no longer want but that still have value and can be re-sold. Hmmm... sorting, grading and packaging garments. Know anyone who can do this?