Discount cleaning: can it survive?
Part 2
Part 1 of this series (February 1997,
available on the web here) was a comprehensive discussion of the requirements
necessary for success in the discount arena of drycleaning and
shirt laundering.
The article emphasizes the need for
quality work, which is the #1 requirement of all consumers. The
idea that a cheap price will permit second-grade workmanship is
a fallacy.
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A few of my former students who are in the
discount business have reinforced the fact that the consumer
demands top quality work at the cheaper price. Those operators
who do professional spotting with good cleaning, use sizing and
practical packaging materials to preserve quality finishing are
enjoying the high volume required for a decent profit.
Some operators make the drastic mistake of
suddenly going from full-price drycleaning and shirt laundering
to discount drycleaning and shirt laundering. They are not
prepared for the increased volume of work, and, consequently,
their quality drops way below the standard that they once
offered at a full price.
Also, their plant size suddenly is too
small, and their equipment is inadequate. The one pants
finishing unit must be doubled or even tripled since there will
surely be a great increase in the volume of pants. You will see
the number of suit coats and sport coats double as sales
persons, school teachers and office workers will clean them
more often due to the cheaper price.
The best location, as mentioned in Part 1,
is still the free-standing, large, attractive building with
plenty of glass and daylight. It should be situated on the
right side going into downtown and at a traffic light for easy
entry and exit.
Everybody likes a bargain
Do not underestimate the type of customer
you will be getting. My clients in Texas tell me that lots of
Mercedes, BMWs and a few Rolls Royces pull up to their customer
service areas daily. This reinforces the saying:
“Everybody likes a bargain.”
Your customer service representatives must
practice the same courtesy and professionalism as the full
price cleaner, and they should be dressed in an attractive
uniform. The plant personnel should be dressed in some form of
uniform shirt since the plant would be exposed to the public.
One of my busiest clients in Texas uses my
double-deck storage rack system since storage conveyors are too
slow and require a reference for delivery.
In this regard, prompt receipt and
delivery of orders is critical due to the excess traffic in the
customer service area. As mentioned in Part 1, the work
stations in two portions are most effective. These are a 4-foot
counter for receiving, and a 2-1Ž2 foot area for marking which
is separated from the receiving area by a 10-inch bulkhead.
This arrangement allows up to three clerks (receiving,
delivering, marking) at the same time.
The main difference between the discount
and full price operation is that the discount cleaner cannot be
slowed down with wedding gowns, fully pleated skirts, leathers
or very fancy garments requiring intricate finishing time.
However, as a professional drycleaner you must remove spots and
replace missing buttons. Minor repairs and alterations should
be offered at market prices, however.
A better shirt price
What about laundered shirts? Now is your
opportunity to get the same price as the full-price cleaner
since you will be getting most of the outer garments.
In order to get the full price for a
laundered shirt, you must give the same, if not better,
quality. This includes detailing the shirt with collar support;
buttoning the first, second and fourth buttons; crossing the
sleeves and with good pressing and packaging. Along with
getting pre-paid, this could be a good money maker.
Get the price right
What price per garment should you charge?
For starters, forget anything under $2 since your variable
expenses would eat that up, and your volume in the beginning
would not cover them.
You must list all your fixed expenses and
those capital expenditures which must be made on a timely
basis, such as mortgage payment, equipment note payment,
leasehold improvements, etc.
Even your payroll is partially a fixed
expense since you must guarantee your workers a decent wage in
order to keep them, and any bonus or incentive wages would then
be variable.
Your initial supply order will be several
thousand dollars, and your tools and spare parts must be
considered as your initial fixed cost.
It seems that a figure closer to $3 per
garment and $2.50 for shirts would be a good starting point.
Keep in mind that your costs keep going up, and your sales
price stays usually the same. With these prices you will need
at least a volume of almost 1,000 garments per day minimum.
With less than that volume, you may only work for a modest
salary or break even.
Also, you must have an aggressive
marketing program to reinforce your dedication to quality work
in addition to savings in price. You do not need to coupon or
offer any other discounts since your price is already the
lowest, but you MUST reinforce your professionalism, dedication
to quality and personal service. However, if you wish to offer
a small discount above that already offered, you should give it
only as an incentive to try you out.
Note: My spotting video, “The
Caplan Method of Stain Removal,” which includes my
comprehensive text and handy spotting board reference available
in English, Spanish and Korean (video only in Korean) from the
Golomb Group, c/o Dennis McCrory, 7664 Plaza Court,
Willowbrook, IL 60521, phone (800) 679-5856. A lecture and
demonstration are presented similar to my classes over the
years at IFI and SDA. This video and text are ideal for
training inexperienced spotters as well as a good review for
experienced spotters. Digesting with enzymes, bleaching,
oxidized oil stains and caramelized sugar stains are discussed
and demonstrated. An article on “Removing Spots in the
Cleaning Machine” and an article on “How to
Increase Production in the Spotting Department” are
included in the comprehensive text book.
Also available from the Golomb Group, in
English and Spanish, is my video on step-by-step shirt
finishing which includes my comprehensive text in loose-leaf
form outlining each procedure for single-operator and
two-operator cabinet shirt unit using a cabinet sleeve press.
Proper forming of the collar using heated collar formers is
demonstrated. Each lay is demonstrated for top quality with
very little effort by the operators. Attractive detailing and
packaging of the hangered shirt, padding, steam pressures and
timing are all discussed. A unique wash formula for whiter
whites and brighter colors and removal of grease and body oils
is included in the loose-leaf text book.
My experience with shirts spans over 55
years with US Army as a principal laundry and dry-cleaning
concessionaire at Ft. Meade, MD, where average shirt volume was
approximately 10,000 per day. We were constantly
“sampled” for excellent quality in both finishing
and washing in laundry and drycleaning and in tailoring. We
operated our own 40,000-sq.-ft. plant for over 35 years.
Stan Caplan has over 35 years experience
in his own high volume dry-cleaning, laundry and tailoring
plant and two package plants with adjoining coin-operated
laundry and drycleaning. Stan is the former chief instructor at
the International Fabricare Institute, the Southwest
Drycleaners Association and various other trade
association-sponsored schools throughout the US and courses in
Canada, Mexico, South Africa, Singapore and Hong Kong. Stan
offers consulting, training and engineering services in all
areas from customer service area to the boiler room since 1981.
His complete system withtotal quality management will produce
maximum efficiency, economy and product excellent quality. Stan
can be reached at 3601 Clarks Lane, Suite 307, Baltimore, MD
21215-2731, phone/fax (410) 358-0870. His e-mail address is stancap100@aol.com.
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