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Prepare for the pitfalls of success
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In reviewing the lessons of history, some learned the hard way, I see that
drycleaners have found many additional avenues of generating revenue for
survival.
A utopian dream? Not necessarily. They represent a good number of the
drycleaners in business.
But what about the rest? Maybe they are doing most of the above, but due to
competition or a lack of general managerial skill, they are not making the
return on investment they should be and if they can
’t turn it around they are at risk of failing.
Concerning managerial skill… I make no special tribute to the owner/operator who can remove the most
difficult stain or press a washed raincoat and have it look like new.
Those skills were paramount when the individual went into business. But shame on
the owner/operator who never left the drycleaning room or went beyond the
technical part of the business. Sure, it is great to know every phase of your
operation so you have the knowledge to train and recognize a job well done. But
at some point, managerial skills must begin to factor into the formula for a
successful business.
Success is equated with making money and profit. It is of prime importance when
we rate success or failure. How good a manager are you? How profitable is your
business? How much time is left for you to promote your business and open new
avenues of revenue?
Now let’s examine why you are not getting your market share and what you should be
considering to keep your business on an upward profitable curve.
Let’s start with drycleaning, which is the reason you opened the door in the first
place. It would be poor on my part to ask,
“Have you done everything possible to insure your quality and have it in place?”
Let’s just assume that part is working well, but for reasons beyond your control — maybe the loss of a strong customer-drawing neighbor or nearby supermarket — you can not turn things around. You have to rescue this business with the
number of customers you now have. Your choices become: open a drop store; start
a route service; agree to do wholesale work; or add in a commission agent.
Once those areas are fully exhausted, it’s time to consider diversifying. The first areas to consider should always be
those that are adjuncts to drycleaning. Maybe you could add
tailoring/alteration services then or even full-time tailor in residence. As
with an on-premise shirt laundry, this can help drycleaning volume increase as
much as 15 percent.
You might want to look at custom drapery sales or slip covers, including
hardware, in conjunction with a drapery manufacturer which would not only offer
an increase revenue, but also can enhance the appearance of your call office.
What other drycleaning-related businesses would match up with your location and
add revenue or increase drycleaning shirt laundry volume? How about those
sleeping giants, carpet cleaning and fire restoration?
Maybe necktie sales with a promotion of picking out a new tie with an
introductory $30 drycleaning offer. Monogramming, with the right promotions,
can be a high-profit, quick service. Or there is shoe repair with modern,
easy-to-use equipment.
Next you might consider a partnership with a furrier, or uniform or tuxedo
rentals.
These are just a few related businesses a progressive drycleaner can introduce
to increase traffic and dollars. The rule of thumb is a rather simple one.
First and foremost, secure your drycleaning business with high quality and good
public relations. If the profit is not what you have a right to expect, then
seek out every drycleaning and fabric related business as a supplement.
If all those avenues are exhausted, then and only then can you diversify by
starting another business outside the fabric care realm but still within the
confines of your existing location. But try to select a service-type business.
Hereafter, the governing factors are:
• Survival.
• Physical properties of your call office.
• Restrictions on your lease.
• Investment.
• A need in your area for your choice business.
It is indeed sad to enter a drycleaning store and find locksmith service or
custom jewelry sales, but it
’s far better than finding a huge sign: “Please call for your garments. We’re going out of business.”
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