When there are too many cleaners
When are there too many drycleaners? Anyone already established with no plans
for expansion would of course say — Now!
But as we go further into how to make money in this business, we have to look at
all the variables. There was a rule of thumb that Stan Golomb came up with that
took a basic number of 5,000 people to support an average plant doing $5,000 a
week or more as somewhat a goal figure.
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I can recall a sales meeting many years ago when a salesperson was being
chastised for poor performance and his only excuse was that his area was “saturated.”
The sales manager at the time did not believe that any area could reach that
position and simply switched the territories with a salesman with similar
experience.
Results? Not so amazing, but both territories took enormous increases within a
short period.
I am certain that these salespeople knew they were being tested and were putting
out their best efforts, which had something to do with their performance.
The point was definitely proven that there was no such phenomenon as “saturation” (again with consideration for the variables).
I wonder what results would be achieved if the owner of one “saturated” poor-performance stores simply changed hands?
As happens, when a new store fails and a second or third owner takes over, of
course we are talking about reduced debt service, which I do not believe is
always the only factor for success or failure. Nor do I refer to reduced
payroll by having the no-pay family from children to grandparents as the labor
force.
My reference is to the “attitude.”
I find there are people among us who possess a wining attitude. There are those
who simply will not accept failure.
The activity could be sports or running a convention. They get involved and take
a hard look at the variables, the obstacles and then probe and search for the
alternatives that will yield the success they seek and the accomplishment of
the goal they set for themselves.
Basically these goal-oriented people have conditioned themselves never to settle
for something less then they planned for and simply would never accept “saturation.”
There was an enlightening observation I made about 20 years ago when as an
equipment/supply salesman I would call on as many as four or five plants in the
same town with a population of 40,000.
Many times all would be slow, but one plant had all it could do to get the work
out. I also was able to note that conditions and variables such as parking,
price, workmanship, and years in business were all very similar.
Here came the startling difference. The boss or vested interest (partner, wife,
etc.) was always on the counter!
I might also add that the counterperson was polite, talented and knowledgeable.
You could tell they liked what they were doing by their welcome smile and
manner, and that they truly enjoyed dealing with the public, not just once in a
while, but always with an “up” attitude.
You sensed they appreciated the individual as a person and, yes, most important
as a customer.
Take a look at your own buying habits and see which stores you prefer to visit
frequently regardless of inconvenience or price and realize that it is the warm
welcome that brings you in and keeps you coming back. Can you offer your
customers the same treatment?
Too many drycleaners? Too much competition? Saturation?
As in any retail business or service, I truly believe there is no reasonable end
point.
The strong will survive, which is to say the more creative, conscientious and
dedicated will always have their place in the ranks of successful ventures.
Competition simply makes the incompetent fail faster.
