National
Clothesline
hanger
Prepare for the pitfalls of success
I’m always extremely pleased when I get a response to a program that I brought to my readers’ attention. And so it has been with the hundreds of requests I have received from drycleaners seeking more information on “The Route to Success.”
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I know the advice was timely and well received because the comments I’m getting are not only letters of appreciation but also requests for “How can I protect my new, successful route from this new and ambitious driver?”
Suddenly, the route has become a monster with an upward volume of $5,000 a week and steadily growing! I would hope that everyone would have that problem!
Let’s assume the driver is being properly compensated. He was assured a minimum of $10 or $15 an hour as a starting base salary with an incentive bonus for each new customer. Next, he was trained and we made sure the individual had the ability to knock on doors. And we advertised.
Now, with each delivery and each stop, the volume climbs higher. One hundred calls (pick-ups and deliveries) in a few hours was soon achieved. Remember, no cash was exchanged as all transactions were conducted automatically on a credit card. If a route was carefully planned, it was not unusual to make 30 to 40 calls an hour.
Let’s assume the commission structure was pegged at around 18 percent of gross sales (each part of the country will be different). And let me also assume that the route was established with an upscale clientele whose wardrobes usually cost more per garment. It soon became apparent that the profit was guaranteed.
So where’s the problem?
This ambitious driver soon rationalized, “Why not go into business for myself? I can be a silent partner, under a different name. After all… the customers only know me! Why not make 40 or 60 percent of each order instead of the measly percentage I’m now getting? Why can’t I be my own boss?”
One place to begin is always at the beginning. Let’s see how this route developed in the first place. The initial starting road map came when the smiling, uniformed counter person greeted the established customer by name, and then cheerfully asked, “Would you like to have this delivered? There’s no extra charge, and we can even deliver it in the evening or Saturday morning. Would you prefer an evening delivery? And when can we schedule a weekly stop?”
This of course is the oldest persuasive sales ploy ever established — using the power of suggestion, not the usual yes or no, but the assumption of when!
The driver was then advised, with each new delivery, to place a “Hi, Neighbor” door knob tag on the adjoining homes or apartments. This tag told the pertinent facts about the drycleaner, and yes... “we’re the same drycleaner your neighbor is using.” The attractive, no-charge, introductory offer was outlined.
No driver should ever leave a vehicle stop without making at least six calls. Eventually they’ll never leave empty handed. No special skill is needed other than to ask for the order. Just smile and say, “I’d like you to try us.” You see, routes are built by association. Since you’re dealing with their neighbor, and why shouldn’t they be dealing with you?
You’re convenient, there’s no extra charge and you’re making an introductory offer! Who can say “no” to such service? It’s certainly worth a try.
I once had a lengthy discussion with Stan Golomb on “who is a customer.” It was Stan’s opinion that they are your customers until they leave your shop with their order. Once they leave, and until they come back, they are technically a prospect and are anyone’s customer! How true!
With all call services, people become creatures of habit, as in fuel oil delivery or even daily newspaper delivery. That’s why routes are stable and continuous, dependable, regardless of weather or economic conditions. Furthermore, they are geared for growth. If you need more volume simply knock on more doors! You can see where a route can became unlimited and outrank the confinement of a drop store. You’re going to the customer, the customer is not choosing to come to you.
But what happens when it becomes tempting for the driver to take this business and go elsewhere or go it alone? And don’t tell me it can’t happen. Just look at the prize that a new plant can offer, a running start for a successful route operation! You must remember, he’s also stealing the nucleus of the route, which came from your counter so the route could get started.
You would think the way to protect yourself would be a simple contract with a no-compete clause that would state that he or she cannot go into the drycleaning business within a 25-mile radius. Or that they cannot enter into a partnership within three years of their employment, etc. The name of the bad guy need not appear on the new ownership of the store or the stolen route, and you can’t expect the customers to appear in court on your behalf.
Somehow the law becomes ambiguous, especially when the judge says, regardless of the notarized signature and agreement, that you, as the former employer, cannot deny the pirating individual the right to make a living. All individuals are not chattels or indentured servants bound for eternity — even if he had stolen your customers! It’s true.
What’s the answer?
How can you be assured of protection?
The first step is to have the entire route continually documented. Commissions are only paid on an updated current weekly list of customers. Next, your work should be packaged and as personalized as you can afford. Two- or three-color customized plastic garment bags with your name and a seasonal change of colors.
You should maintain contact with your customers with personalized letters of appreciation and announcements of new services, such as monogramming, pillow cleaning, rehanging drapery service, etc., and at least four new discount offers per year.
You have the advantage of attaching literature to each order and making distribution convenient and inexpensive. Explain your quality control, announce your employee of the month, and how honored you are to serve them.
Be certain to contribute free drycleaning to their favorite charity, lodge, church or synagogue. Contact the home economics teacher at the local high school and offer a plant tour on the “Art of Fabric Care.” Offer a special prize for the best essay on “Why my drycleaner and I are clothes friends!”
Occasionally switch drivers, if possible, on the pretext that is a guard against sickness or absenteeism and the maintenance of continuity.
Last but not least, take a seat, make yourself comfortable and go for a “ride on the route” as an excuse to get out of the plant, and more important, do it unannounced. It’s your way of protecting the growing part of your business!
It’s your insurance for protecting your investment.
Ray Colucci, a consultant to the fabric care industry, has upda