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Editorials
They keep business humming
There was a time where the three secrets to success were believed to be location, location, location. Nowadays, however, with many Americans struggling in a desperate economic climate, the trick seems to be more about timing, timing, timing.
After all, imagine the rise and fall of two kinds of car salesmen: one who specializes in gas-guzzling SUVs, and one who offers fuel-efficient hybrids and compact vehicles. With gas surpassing the $4 mark, nobody is surprised to see fewer Hummers driving off the new car lots.
Much can change in two years. In 2006, the Hummer brand enjoyed a nice niche in the domestic market, reaching a U.S. sales peak of 71,524, according to AP writer Dee-Ann Durbin. Information from Autodata Corp. also reveals that U.S. Hummer sales are down 36 percent this year, compared to the same period from last year. By contrast, Honda Motor Co. sold over 53,000 Civics in one recent month. Small cars are immensely popular; however, hybrid sales were down in May compared to May, 2007, even as demand rose because hybrid automakers weren’t prepared to meet the rising consumer demand. If they could make them at a faster rate, then sales would smash through the roof. After all, people need cars, but most cannot afford to keep paying outrageous gas prices. A fuel-efficient vehicle is a smart, easy way to save money.
Does that mean that SUV sales will disappear altogether? Not really. Such vehicles remain popular with people who don’t care too much about the rise in gas prices. The niche market is still there, albeit considerably smaller. Does that sound familiar? Many cleaners have seen on-the-fringe customers disappear because they consider the service a luxury, not a necessity. Yet, for many working professionals, having their expensive wardrobe cleaned and finished to perfection is absolutely imperative. Image is still everything, and such people are willing to keep paying for it.
It’s tempting to cut prices when sales drop off. That might help keep a few customers, but it will not help keep your best ones. Quality cleaners need to cling to their “SUV” customers and the way to do that is to keep them more than satisfied (see page 48 for more on this topic). Ultimately, you must deliver a final product that amazes them (and also preserves their expensive clothing investment). That is what they will remember more than the final cost, and it will keep them returning.
What have you done for them lately?
A good question was posed recently to members of the Fabricare Forum, the industry’s e-mail list: “What have you done for your people lately?” It was a question that brought a slew of replies and is worth repeating here.
The question came from David Gregory, owner of Regency Cleaners in Tyler, TX, who added the following: “The biggest mistake that owners and managers make is that they don't think every day ‘What can I do, that doesn't cost a lot of money, that will make the overall group happy and express to your employees that you are there for them and they are not there for you necessarily?’”
He kicked off the discussion by listing some of the things he does and other forum members jumped in with dozens of ideas. Here are is a sampling: Gatorade, ice tea and donuts, coffee and sometimes free lunches; rides to work when needed; employee of the month awards; a day off with pay for birthdays; Friday parties (with barbecue during the summer); immediate cash rewards for exceptional work; free or discounted personal drycleaning; and, one that is sure to be appreciated in these times, a free tank of gas.
One item frequently mentioned and important this time of year was providing a cool work place. Drycleaning plants are notoriously hot and steamy, but many owners see the benefits of air conditioning. Who wants to work in an un-airconditoned environment these days? Probably not the sort of person you would want to hire. And that leads to another comment from one of the respondents: “We try to avoid hiring (potential) psychotics.” While it’s a bit tongue-in-cheek, it’s true that if you want good employees your have to hire good people. And train them. And provide modern, safe, efficient and well-maintained equipment to work on. And keep them happy.
Hanger