National Clothesline

What ever happened to cash? We have been seeing it disappear bit by bit each year, along with an increase of “credit card debt.” Gone is the dilemma of that old, empty-pocket plea, “I’m broke!”

The growing use of credit cards has many advantages. One is the control and record keeping of how and where the money goes.

It’s not that the use of credit cards makes money go farther; there is always a day of reckoning at the end of the month, and a stiff penalty for abuse. But like all modern conveniences, it makes life a little easier Now the only use for coins might be for a parking meter or buying a morning paper. Who can deny the advantages of having all purchases, shopping and restaurant being documented so you can see what you spent, the date, where and the purpose, be it for yourself or for business -related tax purposes.

How about in drycleaning, a traditional “cash and carry” business? Credit cards have become popular for customers, but their use is more than a convenience or accommodation for the customer.

Accepting credit cards is a practical fact of customer retention, but it can also be a necessity for the business that is trying to develop routes. Using credit cards frees route drivers of handling cash. It means the route customers do not need to be at home and when pick-up and delivery is made in their absence, 30 and 40 calls an hour are very possible when cash is not a factor.

The in-store counter can also support the expanding route by having the counter person offer a 10 percent discount for an order paid in advance by credit card and then asking, “When would you prefer to have the order delivered?” This not only reduces stock of finished garments and improves their cash flow, but also introduces the customer to the pick up and delivery service.

Charge accounts or debit accounts have become the simplest way of doing business. Cash control problems and shortages become a thing of the past. An accurate form of record keeping becomes a welcome practice, and a paper trail is always there when transactions are documented.

I often hear how the better operators research their records to find the frequency and activity of their customers, both the good and bad. Why is this practice important? Because it tells them how and where they should advertise and at what time of year. It also shows what specials are being taken advantage of.

The possibilities become endless and it all comes about with the forced and accurate record keeping of offering the use of the credit card.

Gaining more control of your business has never been easy, but now we are offered a shortcut that forces us to take the means that can give us a faster transaction, eliminates cash, improves customer convenience, lessens the possibility of cash shortages, provides more space for finished inventory and opens the door for route expansion.