What do you charge, and why?
What pricing system do you presently use?
Is it based upon your competitor’s? Or is it based on a
recent discount sale price? Was there an increase because of a
rent hike? More important, when was the last time you sat down
and carefully calculated just what it costs you to produce a
garment, and find out if you are making the fair profit
you’re entitled to?
I’m somewhat amazed that
many long-time operators haven’t
taken the time recently to figure out just what their true
costs are. It wouldn’t take long, especially with the
help of an accurate accountant, and also considering that we
have the help of a computer. We should know just how many
garments we turn out per week, per month, etc.
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We surely know how many hours the boiler
runs, and all our overhead if we pay our bills on time. While
we’re at it why not determine what the business is worth
if we were to sell tomorrow? Or next year?
How about a little thing called ROl
(Return On Investment)? Can we afford some new, needed or
updated equipment?
It’s not so easy with all of the
variables that we have to confront, including government
involvement with restrictions, and taxes imposed on solvent and
disposal cost. Just as important is how do we deal with them,
or do we just cast them aside?
Fortunately, we have IFI and NCA and very
knowledgeable organizations such as the Golomb Group, that
periodically have seminars on these topics. The subjects are
timely and are conducted by leading experts in that particular
field. The most recent was by some 10 nationally known leaders
on the current trend and hot topic of “discount
drycleaners.” The discounters certainly know their costs.
I was privileged last year to be one of
the speakers for the Golomb Group and to address the recent
trend and advantages of building and operating “The Route
to Success.” For more than 200 attendees who converged in
Chicago for two exciting days, every question, large or small,
was answered factually and backed up with personal experience.
It reminded me of my father’s timely advice when I was
about to buy a new car: “Ask the man who owns one!”
(That’s from the old Packard car ad.)
Our industry is now making enormous
strides in the use of tensioning equipment. Considering the
new, care-free miracle fibers on the market, we are more than
ever accepting “wetcleaning” and its benefits. That
is fine, but it has put a burden on pressing and finishing.
Fortunately, tensioning equipment seems to
solve this production problem. Most cleaners who know their
costs will accept that finishing is about 30 percent of their
overhead (labor, fuel, utilities etc.) and with this new
tensioning equipment, they are finding unskilled labor can
achieve excellent and professional results with high production
as well.
It’s nice to get a break on
occasion. It becomes management’s responsibility to take
a closer look at “motion study,” whether your plant
is on salary or piece work, since the cost of fuel oil,
utilities, air cooling, etc., can be a factor when we examine
the “cost of doing business.” (Write for my
guidebook, “Pressed for Perfection.”)
If we include the cost of effective and
proper advertising and good packaging, the cost of operating
with a profit becomes a serious bottom-line reality.
Last but not least, it would be foolish to
adjust our costs up or down without taking a careful review of
our true overhead and without having control not of just
production, but also “quality.” What I mean is
consistent quality!
Do you have one trained individual
assigned in quality control? Here we need someone with good
eyesight who has the knowledge and authority to return an order
to a department head for correction before it is checked out or
bagged. No words or personality conflicts are permitted. Just
use a simple color assigned to that department with stick-on
attention being noted. For example, a green sticker for the
spotter and marking a stain; a yellow sticker for the finishing
department showing a double crease; a blue sticker for the
tailoring department to repair a seam or replace a broken
button, etc.
Each department head makes the correction
and each return is treated as an immediate high priority so the
order can be completed.
Your quality control individual records a
dated log showing the number and nature of returns to each
department and to be reviewed once or twice a month by
management. The best “final inspector,” of course,
is the customer, which this system is designed to fully
acknowledge and continually avoid unpleasant confrontations.
Believe me, it works!
Ray Colucci, a consultant to the fabric
care industry, has updated his three guides for key areas of
the drycleaning business. “Up Front” on how to
secure an image and build on customer loyalty; “Pressed
for Perfection” on how quality and production can be
achieved; and “Route to Success,” for continued
profit growth and growing volume. The pamphlets are $25 each or
all three for $70. Postage is included in the price and
immediate delivery is available. Send requests and payment to
Ray Colucci, 410 Warren Ave., Mamaroneck, NY 10543.
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