National Clothesline

In the drycleaning industry, there may be a shortage of customers for many plants struggling to survive in tough times, but there was hardly a shortage of attendees at the seminars presented by the Pennsylvania and Delaware Cleaners Association at its Expo 2008, Oct. 24-26.

Held in front of a packed house inside the Atlantic City Convention Center, the Carl Gardner Educational Series kicked off with a program called “Surviving a Recession” by former DLI President Barbara Harvey.

According to Harvey, the industry is mired by a saturated marketplace that will soon weed out the less profitable stores. The reason behind the trend is simple: supply and demand is not balanced.

“Now, we have more drycleaning plants and less drycleaning garments,” she said. “Figure this: if you had eight plants in a trading area doing 12,000 pounds of work weekly. Each plant has 1,500 pounds a week. But, if you have more plants... let’s say you go up to 12 plants in your trading area. You still have the same 12,000 pounds of clothing to clean. Now, each plant is only doing 1,000 pounds a week, a 33 percent loss.”

Not only are there less customers per plant, but customers may also try to visit their cleaners less often.

“You can expect that if you can wear a garment more than once, this is going to be happening,” she added.

To ride out the recession, cleaners will need to do a lot of things across the board.

“Try to diversify, but go slow,” she advised. “Watch your expenses. Market, market, market. Differentiate yourself.”

She also warned cleaners about instigating changes out of desperation. Every action should be well thought out.

“If you’re thinking about cutting prices, think twice then sleep on it and think a third time,” she said. “If you’re thinking about changing solvents, make sure you understand everything there is to know about that solvent — how it might impact your bottom line.”

Harvey also emphasized that cleaners must continue offering a quality product accompanied by stellar customer service.

“You’ve got to be giving the customer what they want, not what you decide is good enough,” she added.

Delving deeper into the subject of customer service was Trudy Adams of Cleaners Supply who followed Harvey with a program entitled “Wow Your Customers.”

Most drycleaners believe they are selling the service of cleaning clothes, but that is not true, according to Adams.

“People choose you based on emotion,” she noted. “If they walk into your establishment and they don’t get greeted with a smile, or at least some sort of acknowledgement that they are spending money with you, are they going to come back? Why should they? There are drycleaners everywhere. So, make sure you’re selling that emotion to them, also.”

Of course, occasionally customers end up invested in angry emotions resulting in complaints, but that is not necessarily a bad thing if cleaners handle it right.

“When you get a complaint, that is gold. That is everything,” Adams explained. “That person just gave you an opportunity to fix something. Are your employees trained to acknowledge a complaint and convey it to somebody in the company who can fix it?”

Once that happens, though, Adams warned that keeping your employees happy is just as important as pleasing your customers.

“If you don’t have strong, happy employees, you are never going to have outstanding customer service,” she added. “As owners and managers, you have to spend time talking to your employees and figure out what it is that is going to motivate them. Find out what it is they want and give it to them and make it rewarding. You are going to see a complete change in your employees’ attitudes.”

Keeping employees and customers happy can be costly at times, but fortunately, former PDCA President Joe Schmidt offered a seminar on “Reduce Your Costs and Increase Your Profits” at 9 a.m. on Sunday morning.

One of the best ways to make more money by spending less is to improve customer retention.

“They say it’s a lot easier to keep the customer you already have than to gain a new one,” Schmidt said. “It’s six times less expensive. So, if you can keep that customer coming through the door, why not do that rather than throwing money out trying to get people coming through?”

Many plant owners have computer systems at the front counter. Unfortunately, too many do not utilize their full potential.

“Do you go into your computer and take everything out of there, every bit of customer information you can get?” he asked.

That data can be used for effective postcard marketing, everything from discount offers to happy birthday wishes.

True, the implementation will cost money up front, but it will be well worth it in the long run. Schmidt tried the strategy at the former plant he ran. He gathered personal information by holding a contest for $25 in free cleaning.

“It was absolutely astonishing what we got from people. I’m not saying what they brought in… I’m just saying the expressions on people’s faces. ‘How did you know it was my birthday?’ They forgot they signed up for the contest,” he said.

Helping customers celebrate birthdays is just one way to win their hearts and minds. At Sto Fox’s Fox Cleaners in Greensboro, NC, a folksy atmosphere, long-time employees who know customers by name and a constant reinforcement of the Fox brand keep customers coming back. In his seminar on Sunday morning, Fox noted that 65 percent of his customers have been with him for ten years or more and 20 percent go back at least 30 years.

“We have many second- and third-generation customers,” he said. The company itself is in its third generation and still uses the guarantee that his parents adopted when they started out in 1947: “You must be pleased.”

“You want your customers to be married to the brand,” Fox said. “And if the customer is always satisfied, you have a brand marriage.”

While Fox relies heavily on word-of-mouth advertising, he also stays engaged with what he called “shoestring marketing.” He displayed a series of postcards and door-hangers that he has used over the years.

One such card poses the simple question, “Looking for a good cleaner?” on the front and, on the back, a map with directions to his store.

He figures the cost at $1.18 per piece, which includes purchasing a targeted mailing list, printing, mailing and postage.

The cost could be reduced to $1 per piece by paying employees to fold, stuff and stamp the cards. If volume is light in the plant, this kills two birds with one stone: it occupies employees with productive work, which in turn can build plant volume.

“You have to be flexible to adapt and survive,” Fox said.




						Expo seminars put survival first





	DECEMBER 2008 This Issue Back Issues Classified Ads Dateline Resources Allied Trades Associations Instruction ABOUT US Home

						In the drycleaning industry, there may be a shortage of customers for many plants struggling to survive in tough times, but there was hardly a shortage of attendees at the seminars presented by the Pennsylvania and Delaware Cleaners Association at its Expo 2008, Oct. 24-26. Held in front of a packed house inside the Atlantic City Convention Center, the Carl Gardner Educational Series kicked off with a program called “Surviving a Recession” by former DLI President Barbara Harvey. According to Harvey, the industry is mired by a saturated marketplace that will soon weed out the less profitable stores. The reason behind the trend is simple: supply and demand is not balanced. “Now, we have more drycleaning plants and less drycleaning garments,” she said. “Figure this: if you had eight plants in a trading area doing 12,000 pounds of work weekly. Each plant has 1,500 pounds a week. But, if you have more plants... let’s say you go up to 12 plants in your trading area. You still have the same 12,000 pounds of clothing to clean. Now, each plant is only doing 1,000 pounds a week, a 33 percent loss.” Not only are there less customers per plant, but customers may also try to visit their cleaners less often. “You can expect that if you can wear a garment more than once, this is going to be happening,” she added. To ride out the recession, cleaners will need to do a lot of things across the board. “Try to diversify, but go slow,” she advised. “Watch your expenses. Market, market, market. Differentiate yourself.” She also warned cleaners about instigating changes out of desperation. Every action should be well thought out. “If you’re thinking about cutting prices, think twice then sleep on it and think a third time,” she said. “If you’re thinking about changing solvents, make sure you understand everything there is to know about that solvent — how it might impact your bottom line.” Harvey also emphasized that cleaners must continue offering a quality product accompanied by stellar customer service. “You’ve got to be giving the customer what they want, not what you decide is good enough,” she added. Delving deeper into the subject of customer service was Trudy Adams of Cleaners Supply who followed Harvey with a program entitled “Wow Your Customers.” Most drycleaners believe they are selling the service of cleaning clothes, but that is not true, according to Adams. “People choose you based on emotion,” she noted. “If they walk into your establishment and they don’t get greeted with a smile, or at least some sort of acknowledgement that they are spending money with you, are they going to come back? Why should they? There are drycleaners everywhere. So, make sure you’re selling that emotion to them, also.” Of course, occasionally customers end up invested in angry emotions resulting in complaints, but that is not necessarily a bad thing if cleaners handle it right. “When you get a complaint, that is gold. That is everything,” Adams explained. “That person just gave you an opportunity to fix something. Are your employees trained to acknowledge a complaint and convey it to somebody in the company who can fix it?” Once that happens, though, Adams warned that keeping your employees happy is just as important as pleasing your customers. “If you don’t have strong, happy employees, you are never going to have outstanding customer service,” she added. “As owners and managers, you have to spend time talking to your employees and figure out what it is that is going to motivate them. Find out what it is they want and give it to them and make it rewarding. You are going to see a complete change in your employees’ attitudes.” Keeping employees and customers happy can be costly at times, but fortunately, former PDCA President Joe Schmidt offered a seminar on “Reduce Your Costs and Increase Your Profits” at 9 a.m. on Sunday morning. One of the best ways to make more money by spending less is to improve customer retention. “They say it’s a lot easier to keep the customer you already have than to gain a new one,” Schmidt said. “It’s six times less expensive. So, if you can keep that customer coming through the door, why not do that rather than throwing money out trying to get people coming through?” Many plant owners have computer systems at the front counter. Unfortunately, too many do not utilize their full potential. “Do you go into your computer and take everything out of there, every bit of customer information you can get?” he asked. That data can be used for effective postcard marketing, everything from discount offers to happy birthday wishes. True, the implementation will cost money up front, but it will be well worth it in the long run. Schmidt tried the strategy at the former plant he ran. He gathered personal information by holding a contest for $25 in free cleaning. “It was absolutely astonishing what we got from people. I’m not saying what they brought in… I’m just saying the expressions on people’s faces. ‘How did you know it was my birthday?’ They forgot they signed up for the contest,” he said. Helping customers celebrate birthdays is just one way to win their hearts and minds. At Sto Fox’s Fox Cleaners in Greensboro, NC, a folksy atmosphere, long-time employees who know customers by name and a constant reinforcement of the Fox brand keep customers coming back. In his seminar on Sunday morning, Fox noted that 65 percent of his customers have been with him for ten years or more and 20 percent go back at least 30 years. “We have many second- and third-generation customers,” he said. The company itself is in its third generation and still uses the guarantee that his parents adopted when they started out in 1947: “You must be pleased.” “You want your customers to be married to the brand,” Fox said. “And if the customer is always satisfied, you have a brand marriage.” While Fox relies heavily on word-of-mouth advertising, he also stays engaged with what he called “shoestring marketing.” He displayed a series of postcards and door-hangers that he has used over the years. One such card poses the simple question, “Looking for a good cleaner?” on the front and, on the back, a map with directions to his store. He figures the cost at $1.18 per piece, which includes purchasing a targeted mailing list, printing, mailing and postage. The cost could be reduced to $1 per piece by paying employees to fold, stuff and stamp the cards. If volume is light in the plant, this kills two birds with one stone: it occupies employees with productive work, which in turn can build plant volume. “You have to be flexible to adapt and survive,” Fox said.