How can a discount cleaner do it?
Discount cleaning: Can it survive? The
answer lies in four parts:
1. The absence of inventory, which
is actually an accounts receivable in a
cash flow sense.
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2. The necessity of large volumes as a
multiplier of a small rate of profit from a realistic price.
3. The use of a proper amount and type
of equipment in order to produce the larger volumes and with
quality acceptable to the market.
4. Proper location in upscale area.
The absence of inventory
Discount cleaning is founded upon the
procedure of advance payment. Signs are posted in the customer
service area stating the requirement for pre-payment and
reinforcing the simple price list of one (basic) price for all
garments, but there are some exceptions to the basic price:
pleats, gowns, leathers, sizing, water repellent and extremely
fancy trim, etc.
Some discounters include silk as an
exception. However, the discounter really does not want these
price exception garments since they tend to slow down the work
flow production process.
Pre-payment eliminates finished work
inventory. Since all stored orders are pre-paid, your cash flow
is greater and you have no “dead stock” to give
away or try to sell. Most of your orders are current and you
could care less about those that are “old
stock.”
Most cleaners are in the same, or worse,
position as the discounter because several thousand of dollars
a year are lost through excessive inventory and failure to pick
up the dead stock.
Also, the cost of printing and circulating
coupons and advertisements, together with the lost revenue from
the reduced price, puts the regular-priced cleaners in the same
category as the discounter — and they really don’t
realize that fact. Most discounters don’t advertise
heavily, just occasionally.
Necessity of high volumes
The high volume must be from a realistic
price, not from $1.25 or $1.49 since these prices can very well
be at, or below, your total cost to complete a garment and file
it into storage. When you figure your debt service as coming
out of profit, you will just go deeper into the red.
Just what the price per garment should be
depends solely upon the volume you must get after deducting
your fixed expenses (including capital expenditures as well,
such as notes payable) and accurately estimating the variable
expenses. Since you don’t have a crystal ball to gaze
into, you must depend upon demographics of your immediate area
less what the competition will get since the regular price
cleaners will be forced to fight back.
To maintain a high volume, you must have an
attractively low price together with reasonably good quality.
My experience has been, to my surprise, that customers want
just about the same quality as they would get from a regular
priced cleaner. This is especially true if you are located in
an upscale area.
A minimum of 1,000 garments per day is
required from a price of around $2 per garment, (excluding
pleats of over four) for six days per week to generate a
profit. Of course, this includes the owner being on the
premises, earning his salary as general manager, etc., not
sitting on his butt in the office, but being all over the
building. The owner’s presence in the customer service
area is important to see that customer traffic flows smoothly
in and out and customers must be shown your appreciation of
their business, mostly from a smile and a “thank
you.”
A lot system must be maintained and orders
must be completely written and prices as they are received
(point of sale). Obviously, this point of sale invoicing is
required to get your pre-payment. Just as important, the order
must be tagged, pockets searched and prepared for processing
immediately. All this must be done at the counter, not at a
table several feet away from the receiving counter.
This is why my “work station”
counter works so efficiently with its three-foot marking area
separated from the receiving and delivery areas by a 10-inch
high bulkhead, three persons can operate the counter at the
same time: one receiving, one delivering and one marking.
Use a proper amount and type of equipment
Most discount plants I have seen and the
many equipment lists I have checked, seem to be short in the
equipment area. This also applies to installation as well.
The amount of equipment and the type are
equally important. Nothing should be overlooked in the
specifications since you must follow all of the proper
procedures of good cleaning, finishing, wetcleaning,
inspection, etc.
The U.S. automobile industry put production
ahead of quality control, and it lost its market to the Germans
and Japanese in spite of the higher prices charged by the
competition. Not until U.S. manufacturers updated their
equipment and perfected their quality control did they
pull from the bottom to the top.
Isn’t this the same with our
industry?
Beginning with the power plant, the boiler
must be large enough to generate a reserve of steam with
everything running at the same time. A spare return pump must
be installed with a by-pass arrangement to ensure steam all the
time. The return tank must be large enough to receive all the
condensate rather than overflow it to the sewer.
The water heater must be large enough to
service several washer/extractors filling at the same time. A
city water pre-heater (heat exchanger) is a big advantage since
it uses the return condensate to pre-heat the incoming cold
water which adds greatly to the efficiency to the water heater.
The vacuum should be in pairs, and each one
rated at double the capacity since good vacuum can reduce the
finishing time considerably, Each vacuum should be alternated
weekly to ensure continuity of production at all times.
The air compressor should be oversized in
order to ensure a good supply of cool, moisture-free air. A
separate pump should be mounted alongside the other and
alternated each week to ensure continuity of production at all
times. Remember to include a water separator, after cooler and
pressure regulator after the air compressor.
The electric service must be of the amount
of amps to more than service all motors running at the same
time.
Next, the drycleaning room must be equipped
to handle the large volume and still adhere to the principle of
classification to avoid redeposition of soil and swales due to
uneven drying which also contributes to residual odor in
garments. Three (true) 45-lb. machines are ideal and youare not
only able to classify lightweight garments from heavier weight
garments but you have an insurance policy in case one machine
breaks down.
Also, you will be able to run your loads
for the best required times to produce good cleaning and
odor-free garments. Remember, short cycles produce poor
quality.
Don’t forget wetcleaning and laundry.
Care labels should be followed. Your wetcleaning and laundry
area should be well equipped to quickly dry and condition all
washed garments. Bleaching and digesting are just as important
to the discounter as to the regular-price cleaner. Therefore,
soaking tubs, temperature controlled sink with hand brushing
attachment, a top-loader washer, wind whips, drying cabinet and
line drying capability are all essential.
Spotting boards and inspection tables for
two persons should be located in front of the cleaning machines
and facing the finishing area. Each garment must be examined
for stains before being sent to the finishers. Finishing is the
most productive operation in the plant and the pressers must
receive only spot-free garments or spotted garments with a
“sorry tag” attached for those permanent spots or
on garments needing customer’s consent for further
spotting, etc.
Being the most productive, the finishing
area determines on-time or late delivery, and it is the key
factor in production of quality garments. A minimum of four
units should be used: one pants, one coat/utility; two
ladies’ utility.
Each unit should stand on its own, which
means no presser should have to use another unit’s
machine, except for unusual circumstances.
Puff irons should have vacuum, and puff
sets should have fabric heads in addition to vacuum. Coat units
should have Coat-A-Matics to quickly and beautifully finish
coat collars and shoulders. Ladies’ units should have
mushroom presses to finish the bodice of the dresses with the
same pressure as the suits (cotton and linen) and also to
finish slacks and skirts of small sizes and with elastic
waistbands.
A vertical sleeve finisher should be used
to finish sleeves last instead of first for better quality and
speed. Also, this sleever can finish balloon slacks by using a
special oversized bag tied to the regular bag.
All pressing machines should have an
all-steam iron, water gun sleeve ironing board and garment
hanger chain at the small end. One hand should be the only
requirement to bring the press head down. Be wary of those
presses requiring two hand to lower the head. That is necessary
when finishing wet laundry, but not when speed operating a
utility drycleaning press.
ANSI Standard Z 81.1-1990, Section 4.42
states: “Operators shall have to use both hand
simultaneously on two button or levers to lock drycleaning
presses.”
Two buttons are not required to lower the
head on presses as long as the other hand has to put the head
into locked position.
Laundered shirts are a necessary companion
to drycleaning. Ideally two single-operator units are better
than one two-operator unit with two collar cuff presses since
no conflict ever arises over one operator being faster than the
other, or one operator is absent or the unit breaks down and
can’t be used. At least, one unit is better than nothing.
However, if space is of the essence, then a two-operator unit
with two collar/cuff presses) is all right. The single-operator
unit takes one heated collar former (no slot for a hanger), and
the two-operator unit takes a triple head heated collar former
(no slot for a hanger).
Tailoring is just as good a money-maker for
the discounter as the regular price cleaners. Also, someone
must be present for minor repairs and buttons as well as for
alterations. A minimum of one utility sewing machine, one blind
stitch machine and layout table is required. A shirt button
sewing machine is located in the shirt assembly area with the
semi-automatic folding table.
As far as equipment goes, do not depend on
your competitor to help you out when a machine breaks down or
an employee is absent.
Don’t believe what some cleaners say
that discounters can get away with bad quality. Quality is
still the #1 requirement for customer satisfaction, not price
nor super-fast service. This is why discounters are learning
that a steam tunnel will not produce a finished garment to
satisfy customers, that was OK during the 100 percent polyester
era (for all but pants).
Proper location
The same old adage: — location,
location, location — still holds true.
The best location for a discounter is in a
free-standing building on the right side of the main
thoroughfare going into the heart of town, the demographics are
still the best for upscale consumers. The old saying that
everyone likes to save a buck still holds true.
The strategy of the discounter is to move
into an upscale area which is already saturated with
competition and thereby create a different category of
drycleaning whereby only a select few fancy garments would go
to the regular price cleaners while the bulk of the plain
everyday garments (large volume) would go to them (discounter).
Stan Caplan has over 35 years experience
in his own high volume dry-cleaning, laundry and tailoring
plant and two package plants with adjoining coin-operated
laundry and drycleaning. Stan is the former chief instructor at
the International Fabricare Institute, the Southwest
Drycleaners Association and various other trade
association-sponsored schools throughout the US and courses in
Canada, Mexico, South Africa, Singapore and Hong Kong. Stan
offers consulting, training and engineering services in all
areas from customer service area to the boiler room since 1981.
His complete system withtotal quality management will produce
maximum efficiency, economy and product excellent quality. Stan
can be reached at 3601 Clarks Lane, Suite 307, Baltimore, MD
21215-2731, phone/fax (410) 358-0870. His e-mail address is
stancap100@aol.com.
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