American Drycleaner - April 2013

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Pre-ins P ection

Finding the Losses

In today’s business climate, I wouldn’t be surprised if every dry cleaning plant operator is seeking some way to increase profit.

But one can raise prices only so much, and potential labor savings has been rung out of most plants. What does that leave? How about the high cost of energy: electricity, heat and water?

product quality or staff productivity. A pre-planned assessment (aka audit) of the energy consumers in your dry cleaning plant is the best way to achieve reductions, Manning says. And guess what? Most utility companies are willing to assist, at little or no cost to you. Isn’t that worth a look-see?

•••••

Bruce Beggs

As Lloyd Manning writes in Cutting Energy Costs beginning on page 20, energy costs are among the expenses that can be reduced without negatively affecting

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American Trade Magazines LLC, publisher of American Drycleaner, is celebrating 75 years of membership in the Textile Care Allied Trades As sociation this year. Such milestones serve to remind me that many came before in making this publication what it is today. And for that, I thank them ... and you. O

American Drycleaner (ISSN 0002-8258) is published monthly except Nov/Dec combined. Subscription prices, payment in advance: U.S. and Possessions, 1 year $39.00; 2 years $73.00. Foreign, 1 year $89.00; 2 years $166.00. Single copies $7.00 for U.S. and Possessions, $14.00 for all other countries. Published by American Trade Magazines LLC, 566 West Lake Street, Suite 420, Chicago, IL 60661. Periodicals postage paid at Chi cago, IL and at additional mailing offices.

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American Drycleaner, April 2013 www.americandrycleaner.com

talk of the trade

NYC mandates dry cleaners to disclose chemicals used

NEW YORK — Beginning February 2014, New York City dry cleaners will be required to disclose to consumers the primary chemicals used in their dry cleaning process, says the New York City Department of Environmen tal Protection.

About 1,400 dry cleaning busi nesses throughout the Big Apple will be required to list the chemicals and a link to information about their health effects, so that consumers can access their potential impact.

DEP will work with affected busi nesses over the next year to implement the new rule ahead of the enforcement date.

“The local dry cleaner is an essen tial part of life for most New Yorkers, and it is important that information about all the chemicals used by these businesses is available,” says DEP Commissioner Carter Strickland. “At virtually no cost to businesses, this rule will ensure that this important public health information is available to the public.”

DEP developed the new disclo sure rule in close consultation with the National Cleaners Association (NCA) and other industry groups. Nora Nea lis, NCA executive director, says her organization “was pleased to work

cooperatively with DEP to develop a strategy for educating consumers about the new cleaning solutions being used in the dry cleaning industry, and we applaud DEP’s investment in developing a consumer-friendly website to answer that challenge.”

Dry cleaners that use perc are re quired to post an informational sign that provides contact information to report odors and other problems, the DEP says. The notice also lists where additional information can be found about the potential health effects of perc exposure.

Some dry cleaners have more re cently promoted the use of non-perc chemicals but these cleaning agents may also have health risks.

The cost of compliance is minimal or non-existent, according to DEP; dry cleaners simply have to fill out and print the applicable form from its web site and post it in their business.

The draft form for perc dry clean ers is available here: www.nyc.gov/ html/dep/pdf/air/nyc-perc-postingnotice.pdf. The draft form for non-perc dry cleaners is available here: www. nyc.gov/html/dep/pdf/air/non-percposting.pdf.

Natural gas costs still higher than 2012, but gasoline prices falling

WASHINGTON — The Henry Hub

natural gas spot price is expected to av erage approximately 65 cents higher per million British thermal units (MMBtu) this year, while natural gas working invento ries ended February at a level below the same time one year ago, according to the U.S. Energy Information Administration.

EIA expects the spot price to be $3.41 per MMBtu in 2013 and $3.63 per MMBtu in 2014. It averaged $2.75 per MMBtu in 2012.

In other energy news, the weekly U.S. average regular gasoline retail price fell in early March for the first time since midDecember. The March 11 average was $3.71 per gallon, down 7 cents per gallon from Feb. 25.

EIA expects that lower crude oil pric es will result in monthly average regular gasoline prices staying near the February average of $3.67 per gallon over the next few months, with the annual average retail price declining from $3.63 per gallon in 2012 to $3.55 per gallon in 2013 and $3.38 per gallon in 2014.

U.S. crude oil production exceeded an average level of 7 million barrels per day in November and December, the highest volume in more than 20 years.

Total U.S. liquid fuels consumption fell from 20.8 million bbl/d in 2005 to 18.6 million bbl/d in 2012. EIA expects total consumption to rise slightly over the next two years to an average of 18.7 mil lion bbl/d in 2014, driven by increases in distillate fuel and liquefied petroleum gas consumption.

EIA warns that energy price forecasts are highly uncertain and that the current values of futures and options contracts suggest prices could differ significantly from its forecast. O

Top stories @ AmericanDrycleaner.com for the 30 days ending March 15

Top News sTories

1. New York City Mandates Dry Cleaners to Disclose Chemicals Used

2. In Memoriam: William W. ‘Bill’ Haiges, Haiges Machinery

3. The Numbers: Modest Economic Growth Reported While Unemployment Rate...

4. In Memoriam: Norvin L. Pellerin, Pellerin Milnor Corp.

5. Access to Small-Business Loan Programs to Expand Under Proposed Rule

Top coluMNs & feATures

1. Avoid These Money Mistakes

2. Is There New Opportunity in Restoration?

3. Over the Fiscal Cliff for Tax Savings

4. Manage the R > E Flow

5. StatShot: West Leads Regions Posting Better Dry Cleaning Sales... Web eXCLUSIVe!

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Americancoinop.com:

1. Over the Fiscal Cliff for Tax Savings 2. Financing Company Launches Streamlined Credit Application

3. American Dryer Corp. Realigns Sales Responsibilities

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THE NUMBERS

PROMPTED BY a lower unemployment rate and a favorable report from the Federal Reserve concerning the annual banking stress test, the Dow Jones industrial average reached 14,400 for the first time during the first week of March. U.S. investors showed their support of the growing economy by trading more, and European stocks also reached their highest point since 2008.

ACCORDING TO THE BUREAU OF LABOR STATISTICS, the ranks of the employed swelled by 236,000 in February, and the unemployment rate nudged down to 7.7%. Increases came in professional and business sectors, along with construction and healthcare industries.

“This … report shows a resilient economy continuing to recover,” said Acting Secretary of Labor Seth D. Harris. “February marks three uninterrupted years of private-sector employment growth, with a total of 6.4 million jobs created over that time.”

PENDING HOME SALES also showed an increase in January, across all regions of the United States. The National Association of Realtors reports that figures have been above the previous years’ numbers for the past 21 months. The industry’s data is at its highest reading since April 2010.

THE U.S. SHOPPING CENTER INDUSTRY’S income for fourth-quarter 2012 was up 3.6% from 2011, according to a report from the National Council of Real Estate Investment Fiduciaries and the International Council of Shopping Centers. The industry also reported a lowering of operating expenses by 2.4%.

THE LATEST NON-MANUFACTURING Institute of Supply Management’s Report on Business included this from Anthony Nieves, the chair of the ISM’s NonManufacturing Business Survey Committee: “The NMI registered 56% in February, 0.8 percentage point higher than the 55.2% reg-

Drycleaner, April 2013

istered in January.” The report indicates that growth was reported by 13 nonmanufacturing industries.

THE U.S. DEPARTMENT OF COMMERCE released data focused on the rate of export sales in 2012. Twentynine states set new records, and 35 reported growth of total merchandise exports last year. Jobs supported by exports were up by 9.8 million, an increase of 1.3 million since 2009.

THE LATEST BEIGE BOOK from the Board of Governors of the Federal Reserve System was also positive. Twelve Federal Reserve Districts reported modest to moderate growth since the previous report. Five districts reported moderate January and early February growth, five noted modest growth, one district indicated the economy expanded slowly, and one district reported a slow pace for economic growth. Expansion was seen in consumer spending, and automobile sales were strong. O

—Jean Teller

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i D c planning m ini c onvention 2013 as c lean s how precursor

The International Drycleaners Con gress (IDC) is planning Mini Con vention 2013, described as “a one-day, information-packed conference immedi ately preceding the Clean Show in New Orleans.”

The event is scheduled for Wednes day, June 19, the day before the threeday World Educational Congress for Laundering and Drycleaning opens.

Details will be released via the group’s website, idcgroup.org, as they become available.

n ashville to host s EFA Annual m eeting this month

The South Eastern Fabricare Association (SEFA) will have its 2013 Annual Meeting on April 21 at the Re naissance Nashville Hotel.

The event, which will be held in conjunction with SEFA’s quarterly board of directors meeting, will feature the board meeting, an educational meet ing, and a social, SEFA says. All mem bers are invited.

For more information, call 877-7077332, or visit the association’s website at sefa.org.

American Drycleaner, April 2013

o hio c leaners Association plans marketing workshop

The Ohio Cleaners Association, along with online marketing com pany SiteInSight, will present Market ing Your Cleaners to Attract More Cus tomers, a workshop at the New Albany (Ohio) Public Library, on May 8.

Attendees will learn how to get the most bang for their buck when setting up a website and/or online marketing; how to convince people to like their dry cleaning business on Facebook, and why social media is important for their business; and the importance of web sites and search rankings and how they relate to other types of advertising.

To learn more about the event, call the OCA at 614-228-4716 or visit ohiocleaners.org.

i ndependent t extile Rental Association to celebrate 10 years

The Independent Textile Rental As sociation (ITRA) will celebrate its 10th anniversary during its 2013 An nual Convention, scheduled for Sept. 29-Oct. 2 at the Silverado Resort & Spa, Napa, Calif.

For more information, call 706-6376552. O

CALENDAR

June 19 International Drycleaners Congress Mini Convention 2013. To be held in New Orleans. Visit idcgroup.org for more information.

June 20-22 Clean Show: World Educational Congress for Laundering and Drycleaning. To be held in New Orleans. Visit cleanshow.com for more information.

June 21 Drycleaning & Laundry Institute Membership Reception. To be held in New Orleans. Call 800-638-2627 for more information.

July 26-28 Michigan Institute of Laundry & Drycleaning Summer Convention. To be held on Mackinac Island, Mich. Call 877390-6453 for more information.

July 31-Aug. 3 Textile Care Allied Trades Association Annual Management and Educational Conference. To be held in San Diego. Call 973-244-1790 to learn more.

Aug. 8-10 2013 China International Laundry and Cleaning Exhibition. To be held in Beijing, China. Visit laundryexpo.cn/EN/ main/index.asp for more information.

Sept. 22-24 Textile Rental Services Association Annual Conference. To be held in Sonoma, Calif. Call 703-519-0029 for more information.

Oct. 11-14 JET Expo 2013. To be held in Paris, France. Visit jet-expo.com for more information.

Oct. 19-20 National Cleaners Association Texcare Trade Show & Exhibit. To be held in Secaucus, N.J. Call 212-967-3002.

Nov. 19-21 Texcare Asia. To be held in Shanghai, China. Visit texcare-asia.com. O

Post notices of your organization’s events on AmericanDrycleaner.com

Next Month in American Drycleaner Clean 2013 Show Guide

We’ll have complete listings of the exhibitors, educational sessions and events that make Clean the industry’s can’t-miss show.

www.americandrycleaner.com

American Drycleaner, April 2013 13

Protecting Unique Characteristics

In a previous edition of American Drycleaner, readers like you were given a “heads-up” about what to expect from the fashion styles entering the marketplace (Fashion vs. Fabricare, November/December 2012).

The Federal Trade Commission’s recent request for comments on gar ment care labeling is a symptom of the continuing problem facing our industry.

The manufacturer’s focus on marketability and profitability at times runs contrary to serviceability. It is the obligation of the garment care professional to recognize that the customer’s item has a unique set of handling characteristics and then determine the best way to protect those unique characteristics while reconditioning the item for continued use.

That is a mouthful, I admit, but I hope you get the point. “They” design the garment and “we” have to clean and finish the garment.

WHERE DARKS AND LIGHTS MEET. When garments have a dark color and light color joined at a seam, there is potential for trouble. And when garments have a dark color embroidered over a light-colored background, there is potential for trouble. When pre-spotting near dark and light panels, take the

time to test the dark panel for colorfastness.

In cases where there is only minimal dye migration, mineral oil can be placed on the light side of the seam to form a barrier to the dark dye that is staining the light material. Dark embroidery on a light background fabric requires extensive testing, as even the slightest dye migration can permanently stain the light background.

Rub the embroidery with a slightly damp white cloth, then inspect the cloth for any dye transfer. If no dye is apparent, lay the cloth on top of the em broidery and then fog the area with the steam gun. If no dye transfer is appar ent, proceed with caution and spot the stain using normal wet-side protocol.

TREATING SOFT PROTEIN. Soft protein fibers contribute both warmth and appearance to the wearer. The application of a chemical tool designed to break down a protein stain can also damage these protein fibers.

Always spot these fabrics from the back side by turning the garment inside-out. Remove as much of the stain as possible using steam and neutral synthetic detergent. If it is necessary to use a protein stain remover, apply the stain-removal chemical, followed quickly by light mechanical action and then thorough flushing.

Martin Young

You should dry clean soft protein items by turning them inside-out and placing them into a net bag. Leave room within the bag so the items can move about during the drying cycle.

FUR CLEANING. It can be extremely hard to distinguish some imitation furs from the real thing, even if you have an experienced eye. Always check the label for the exact fiber content of “furs” coming into the plant and give additional consideration to the manufacturer’s care instructions.

It is true that a knowledgeable, experienced cleaner may choose to wet clean a faux fur, but that cleaner is assuming all risk, plus putting his reputation and pocketbook on the line.

Treat imitation furs like the soft proteins. Pre-spot the item from the back when possible and dry clean after turning inside-out and placing into a loose net bag.

Cleaning real fur is risky under even the best of circumstances. The ability to successfully spot, clean and restore real fur is a product of knowledge, experience and confidence. The most common fur seen by cleaners is rabbit trim and jackets.

Rabbit pelts are small, so it takes a large number of pelts to make a jacket. This means one will find a large number of irregularly shaped seams in the jacket’s construction. Rabbit pelts are thin, meaning that they tear easily when twisted during cleaning and stressed during spotting. A majority of rabbit jackets are sprayed with dye after construction to give the surface an even appearance. And so the cleaner/spotter is faced with multiple irregular seams; a thin, drying pelt that becomes ever more brittle; and quite probably unstable color.

Spotting real fur is done without steam. Wet the area with tap water from a spare spotting bottle. Apply neutral synthetic detergent sparingly. Apply mild mechanical action. Flush the area with more tap water. Air-dry the area, maintaining twice the normal distance between the gun and the item’s surface.

ORNAMENTAL TRIM. Garments today are showing a greater variety of ornamental trim. Large imitation jewel stones are appearing on traditionally plain garments. Most have a painted reflective backing that will dull with normal-length dry cleaning cycles and be removed completely when using dry-side paint-oil-grease removers.

One can encounter the same problems when the trim is rhinestones or sequins. Metallic thread—which is little more than metallic paper glued to a central thread—is fragile. Consider all trim to be fragile and alter your handling procedures to protect it.

Knowledge of unique considerations required by a garment’s construction demonstrates your professionalism. O

Martin L. Young Jr. has been an industry consultant and trainer for almost 20 years, and a member of various stakeholder groups on environmental issues. He grew up in his parents’ plant in Con cord, N.C., Young Cleaners, which he operates to this day. Contact him by phone at 704-786-3011, e-mail mayoung@vnet.net.

American Drycleaner, April 2013 www.americandrycleaner.com

(Photo: © iStockphoto/Romanchuck)

Deliver What Your Customers e xpect

When I was a new salesperson, one of my first bosses had a saying about the service we were selling: “You can have it on time, cheap, or right. Pick two.”

Consider having your top customer service representative (CSR) inform Mr. or Mrs. Cheapskate, “Well, certainly we will be happy to let you pay $X for dry cleaning that designer wool blazer. It will be ready for pick up in July.” Or, “Of course we will be happy to charge you $Z and ruin the lining in the pressing process.” I’ll let you have some fun generating additional permutations.

The reason I’m bringing up the issue of cost is that my firm has compiled the data from 2012 mystery shopping results from around the country. The cost of providing service is something we are hearing about from owners. For example, we have been told it’s too costly to:

• Hire qualified CSRs

• Develop a training/mentoring program for CSRs

• Sustain a mystery shopping program to evaluates the customer’s experience

• Survey and engage customers

• Offer multiple ways of using dry cleaning and laundry services

The crazy part about cost is that it ranks lowest on the list of items that customers say is important to them. From the recent NCA/DLI conference, here’s the order:

1. Convenience

2. Customer Service 3. Quality 4. Price

We have been performing mystery shopping for cleaners throughout the country for more than 15 years. For the past six years, we have compiled and analyzed the data. We look at scores for drop off and pick up, cleaning evaluation, and four key questions. Following are some conclusions and trends we are seeing for the past year.

DROP OFF AND PICK UP. Overall, scores have become more similar in this year’s report. Unfortunately, they are both lower than in previous years. When we began evaluating the data in 2007, drop-off scores were significantly higher than pickup scores. Why? We found that experienced staffers were usually scheduled from 7:30 a.m. to about 3 p.m., while students or trainees made up the post-3 p.m. shift. Customer problems usually arise upon pick up, which usually occurs after 3 p.m. Guess who was there to answer a customer’s detailed questions? Yes, it was the least trained and

Carolyn Nankervis

prepared staff and part-time workers.

We have helped our clients reschedule workers to be sure that they have an experienced CSR on staff in the afternoons and evenings.

CLEANING EVALUATION. In some respects, the least important factor about dry cleaning and laundry evaluation is the actual cleaning. Satisfaction and consistency has remained extremely high over the years, running way above 95%. If any cleaner has complaints of more than 2% of their total business, they have other serious problems.

PERFORMANCE ISSUES. Let’s drill down into the actual performance issues that comprise the drop-off and pickup scores, the “customer service” part of the transaction. We have been tracking four key items as seen from the front counter. They are if the CSR 1) used the customer’s name during the transaction, 2) asked about spots or stains, 3) attempted to cross-sell, and 4) engaged in small talk or conversation (only on non-express bag transactions).

Name Use — Use of the customer’s name has hovered around 60% for years, according to our data. Clients who have scores that are well above the average have chosen to track and post their CSR scores each month. The saying that you can’t change what you don’t measure is especially true here.

Spots or Stains? — I have been on a mission to ensure that our clients’ CSRs are routinely asking about spots or stains. I’m happy to report that scores have increased dramatically. Unless a customer comes in for pressing only, there is a reason they are showing up with their clothing at a cleaner. Asking your customer about

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spots or stains helps to ensure a correctly cleaned item (nearly) every time.

Cross-selling? — Instances of crossselling and using opportunities to ask an existing customer for additional, new business have doubled over the years. We have found that if overall cross-selling at a location reaches 25%, the results show up at the bottom line. Asking for a sale equals more sales!

Conversationalist? — Years ago, I wrote an article titled Speechless at the Counter. Sadly, we still are. The most common phrase heard at drop off is, “Dropping off?” The most common phrase at pick up is, no surprise, “Picking up?” One of our mystery shoppers wrote, “Really? I don’t have anything in my hands, so what do they think I’m there for?”

We encourage our clients’ CSRs to offer, “How are you today?” or “What can I do for you?” or “How may I help you?” If not memorable, at least these greetings are designed to prevent a customer’s counter experience from bordering on the absurd.

What a cleaner invests in service helps the bottom line in ways that might not seem so obvious. Treating a customer as an individual reminds the customer that cleaning is not a commodity. Good service also helps the customer to see the value they receive for the price they pay.

Customers are willing to (and do) pay more for fantastic service, nearly perfect cleaning, and fair problem resolution. It’s up to you to be sure you are delivering. O

Carolyn B. Nankervis is president of MarketWise Consulting Group, Appleton, Wis. A former direc tor of marketing, sports writer, radio announcer and TV producer, she is a frequent speaker on customer service and marketing topics. She can be reached at carolyn.nankervis@marketwi.com, 902-735-4970.

American Drycleaner, April 2013 19

C utting Energy Costs

Best strategy for keeping things in check: audit energy use regularly

By Lloyd R. Manning

In today’s competitive business environment, it makes sense that every dry cleaning plant operator is seeking ways to increase profit. But one can increase prices only so much. And with any potential labor savings having generally been rung out of most plants, operators must find other ways. Simultaneously, environmental impact is a major concern.

One of the areas in which to save, yet one that is often overlooked or glossed

over, is the high cost of energy: electricity, heat and water. Hence, prudent dry cleaning plant operators are, or at least should be, having a critical look at this expense and seeking ways to reduce this financial drain.

Best of all, energy costs are among the expenses that can be reduced without negatively affecting product quality or

(Photo: © iStockphoto/ Christine Glade)

The Minnesota Technical Assistance Program indicates that, with rising energy prices, utility bills could soon reach 25% of total operating expenses.

staff productivity. The direct cost of energy generally represents about 6% to 18% of total operating expenses. For those who also have an attached coin laundry, it consumes between 15% and 20% of revenue. Both depend on which part of the country you are in and your plant’s efficiency.

It is a given that every year, in every locale of the country, energy is becoming more expensive. And there is no indication that it will ever be reduced or even level off. The Minnesota Technical Assistance Program indicates that, with rising energy prices, utility bills could soon reach 25% of total operating expenses. The bottom line: unless rectified, in the future, energy will consume a still larger share of income and profit. By implementing energy-efficient operations and maintenance strategies, substantial savings can be achieved.

The best way to obtain these expense reductions is to implement a pre-planned assessment (aka audit) of the energy consumers in your dry cleaning plant. Much of this you can do yourself. For those systems and equipment items that could prove more difficult to assess, most utility companies are more than willing to assist, usually at little or no cost to you.

FINDING THE LOSSES. Dry cleaning is an energy-intensive operation. By keeping your equipment and systems efficient, you can both save money and protect the

environment. An energy use assessment is a comprehensive evaluation of the performance of the plant’s energy-consuming equipment, systems and procedures. It particularly seeks to establish where energy is being wasted and money frittered away.

Establishing where some of the losses are occurring will be straightforward and obvious. Finding others will require a more in-depth examination and perhaps expert assistance. The data can then be compared to the industry’s optimum performance levels. This is the basic yardstick for what you are using correlated with what should or could be. It also provides the benchmark against which energy cost savings can be measured and could be vital to your plant’s financial performance. Many dry cleaning plant operators have found an assessment to be revealing as to where the deficiencies lie and to discover economical rectification methods to reduce energy consumption.

The starting point of any such review is to compare your energy consumption volumes with what they should be. Analyze your utility bills for at least the past year, but preferably the last two or three. Record current and historic rate structures, demand and consumption amounts and other charges. Check for abnormal variations, and look particularly for excessive billings. Factor out rate increases that are caused by inflation; use constant dollars.

Next, check your maintenance ▲

American Drycleaner, April 2013 www.americandrycleaner.com

(Photo: © iStockphoto/Kiyoshi Takahase Segundo)

program—if you have one—to ensure that it is in line with today’s needs, and that all equipment and systems are being used in accordance with the manufacturer’s instructions and your own loads.

Budget for and make upgrades and corrections as required. Incorporate rejuvenation, repair and, where necessary, replacement of specific units. Calculate what you are now paying per unit, what you probably will be paying after the upgrading or replacement is completed, and the payback period (the time during which you will recoup your capital investment by the reduction in utilities cost). Ensure that what you are about to do will be costeffective.

Madison Gas and Electric of Madison, Wis., has developed an extensive checklist for this express purpose. This and related statistical analysis are available online at no cost. Visit mge.com and look up “Managing Energy Costs in Small Commercial Dry Cleaners,” then “Quick Fixes.”

The states of Minnesota, Ohio, California, and probably several others have done extensive studies on this topic, which they are pleased to share.

BUYING NEW EQUIPMENT. Modernizing equipment, with its costsaving features, utility and higher efficiency, could substantially reduce energy consumption and, probably, labor costs. All manufacturers will advertise and give you a sales pitch on the many reasons

why you should purchase their products. But, due to the high initial capital outlay or lease cost, it may not be cost-effective for some owners to replace outdated equipment with the very latest if they are considering selling or opting out in the near future.

Over the longer haul, patching up the old could be a “loser” while replacing obsolete pieces with new ones could be a wise investment. Still, with some operators, the economics are not there. The numbers are marginal for others, and some think that the results are not worth the effort and capital outlay. Required is a hard looksee at balancing the projected energy savings of any new equipment against the initial cost and the payback period. It is always nice to have some new presses, perhaps the latest in dry cleaning machines, and certainly one of those high-output, gas-saving boilers. Yet, do you really need them, and are they wise investments? If you are thinking of selling out in the next few years, consider what this new equipment will add to the market value of your dry cleaning plant.

INDUSTRIAL PLANT

EXAMPLES. While not related to dry cleaning, here are some examples of the benefits that energy audits can provide:

American Drycleaner, April 2013 www.americandrycleaner.com

(Photo: © iStockphoto/mohamed sadath)

• The Boise Cascade Paper Mill at Jackson, Ala., replaced missing pipe insulation and saved $80,000 per year. Cost of the work was $25,000, and the payback period was less than four months.

• Dow Chemical, Evansville, La. reports that by replacing, repairing and improving insulation on steam systems, the potential saving is $811,000 per year.

It is prudent to understand how your company’s utility costs are arrived at and how they can be substantially reduced.

carry out this assessment on your behalf. Charges for this service are reasonable, if not free.

• United States Steel, Gary, Ind., reports that by using the proper type, size and thickness of insulation, and by improving maintenance of the related systems, there is a potential savings of $1.5 million per year. And there are others. Where the numbers would not be nearly this large for your dry cleaning plant, these industrial complexes point out that measurable cost savings are there to be had.

CALLING ON THE EXPERTS. The assessment can be done by you, a qualified staff member, or one of several companies specializing in this work that you would hire. You may wish to ask for expert advice in some of these areas. The utility companies normally have personnel on staff who will

It is prudent to understand how your utility costs are arrived at and how they can be substantially reduced. Madison Gas and Electric reports that most utility companies charge for natural gas based on the amount delivered. Electricity can be charged based on two measures: demand and consumption. The demand component is measured in kilowatt-hours based on a facility’s average demand in 15-minute increments during a billing period, while consumption is the number of kilowatt-hours that are actually used by the facility. This suggests that if your electric bill includes demand charges, work to reduce them whenever possible.

A CASE STUDY. In one of its “Fact Sheets,” The Eco-Efficiency Centre of Canada’s Dalhousie University, citing the Delaware Department of Natural Resources and Environmental Control, describes how an unidentified dry cleaner replaced its dry cleaning machines and lists the benefits received:

“A dry cleaning facility used three transfer cleaning machines and four drying units with a total capacity of 155 pounds. In advance of some environmental legislation deadlines, it replaced all three www.americandrycleaner.com

American Drycleaner, April 2013

(Photo: © iStockphoto/Paul Fleet)

machines with three closed-loop dry-todry machines with a combined capacity of 160 pounds. All three new machines included improved cartridges and systems for recycling perc. The largest machine utilized a spin disc to enhance its recycling system and reduce the need for disposable cartridges. With the old machinery, the dry cleaner purchased 500 gallons of perc per month. With the new machinery, the company used a total of 50 gallons of perc over a four-month period resulting in a monthly saving of (more than) 480 gallons of solvent. This is saving $1,950 per month

THE BOTTOM LINE. The task of undertaking a comprehensive energy-use assessment and making the necessary changes could be considered gargantuan (it isn’t). You may even take the approach that everything in your plant is just fine (the law of probability is that everything is not just fine). It cannot be repeated too often: there is evidence that equipment and systems in dry cleaning plants can waste energy and dollars. As in all businesses, as costs rise, profit declines. Check-ups, which are not that expensive, should be done frequently.

No matter how you go about getting it

Audit every department in your dry cleaning plant and cure any deficiencies found so that every piece of equipment operates at maximum efficiency...

through the reduced purchases of solvent.

“The company’s hazardous waste generation was also greatly reduced, since fewer cartridges have to be disposed (of). Their hazardous waste disposal costs have been reduced by two-thirds, from $1,500 per month to $500 per month.

“The capital cost for this project was $150,000 U.S. The payback period, based on reduced purchasing and hazardous waste disposal is four years. In the first three years after the equipment was installed, 75% of the investment has already been recouped. The company has also reported a 20% increase in quality, measured by fewer returns for re-cleaning.”

done, it is a must if you want to give your business the best chance to survive in this cost-conscious, competitive environment.

Audit every department in your dry cleaning plant and cure any deficiencies found so that every piece of equipment operates at maximum efficiency, keeping energy costs as low as possible. This is a never-ending task, yes, but reducing energy waste is one of the more obvious profit builders available to you. O

Lloyd R. Manning is a semi-retired commercial real estate and business appraiser, and a free lance writer. He is the author of Winning With Commercial Real Estate – The Ins and Outs of Making Money In Investment Properties.

American Drycleaner, April 2013 www.americandrycleaner.com

(Photo: © iStockphoto/Andrew Cribb)

n o Passive Path to Boost Profitable s ales

In our consulting practice, we field many questions, but the most common question has long been “How do I increase sales?”

When this question arises, we always encourage the person who is asking to modify it to “How do I increase profitable sales?”

Have you tried Groupon, delighted initially at the large number of respondents but then evalu ated the retention rate on those deeply discounted sales and vowed never to use it again? These promotional efforts can be used as a marketing introduction for a new service or new location, but resulting sustained sales are rare. They have the added disadvantage of training your customers to think that your ser vice is not worth your normal price.

So what is the answer?

First, there is no silver bullet. Profitable sales require a multi-pronged, sustained effort. There is no passive path to increased profitable sales.

It is time to acknowledge that 1) dry cleaning has a narrow target market and 2) there is a great deal of competition for the attention, disposable income, and loyalty of this desirable

To find past Management Strategies columns or share this month’s with your friends, visit AmericanDrycleaner.com.

target market. To compete successfully in this crowded field, you must differentiate yourself and model your company to be remarkable.

Since most cleaners equate increased sales with discount coupons, your strategically designed marketing efforts will stand out from the crowd and make you notable.

B asi C r UL e : K n OW YOU r CU st O mer an D t H eir L i F est YL e . Customers are not interested in your story unless it makes life better for them. To let them know how you can benefit them, you first must understand their lifestyle. You know a great deal about your best customers, but there is much more you can learn through profiling the ones you want to clone and duplicate. Once you understand their activities, needs, wants and motivations, you can create a more successful message that will appeal directly to them.

Customers will pay for the things they want (even if they don’t yet know they want them).

For example, the industry has traditionally taken the approach that the shirt price drives the dry cleaning volume. Our statistics show, however, that beautifully finished shirts are more important to the customer than gener ally believed and that shirt piece counts have risen appreciably with improved

Diana Vollmer

quality and resulting higher pricing, even as dry cleaning piece counts leveled off. Never underestimate the image-making impact of a perfectly pressed shirt in a high-level business meeting.

Other examples of customer convenience that will make them loyal and make you profitable:

• Once a parent with kids and/or pets in the car has experienced the convenience of drive-thru service, they won’t go back to the counter

• Around-the-clock access is invaluable to the “always on” generation

• Delivery service that eliminates a “nuisance” errand (yes, dropping off and picking up dry cleaning is a nuisance to most customers) provides free time that customers can’t buy

• Service hours that match customer demand make them happy and loyal. The No. 1 phone question to stores continues to be “When do you close?” Have you considered later evenings and Sundays? Especially in shopping center locations, dry cleaners are often the only stores open before 9 a.m. and the only ones closed before 8 or 9 p.m. Track your customer traffic and adjust accordingly.

Customers will always willingly pay for welcoming, knowledgeable, friendly, consistent quality and service.

CREATE A SELLING CULTURE AND SUPPORT IT WITH SALES TOOLS. Just opening for business is not enough. Today’s business environment requires a full-blown sales effort—one that is supported by everyone in the entire organization.

Start with your vocabulary. If you expect people to sell, you should call

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them “salespeople” and their job description should prominently focus on sales. “Counter person” or “customer service representative” becomes “counter sales representative,” for example. “Route driver” becomes “route sales and service.” This change may seem subtle, but the implications are huge.

Getting your production staff on-board is equally important. Make a life-size cutout of the “Top 10” clients. Yours might have “Socialite Suzie,” “Efficient Eva,” “Tycoon Tom,” “Jet-Setting Sarah,” etc. Discuss these clients’ lifestyles and why their clothing and image are so important to them.

Help your dedicated sales team find the most efficient prospect or partner targets:

• Profiled prospect targets

• Influencers, i.e. fashion clubs, Pinterest groups, bloggers, retailers

• Charities that your best customers support

• Related services, i.e. fine restaurants, spas, etc., that your customers frequent

Everyone wants to be successful and work on a winning team. They just need the tools to make it happen.

TRAIN TO SELL. The next step is to train everyone to sell, a daunting task because most associates resist sales.

But they are willing to provide information that is useful to customers, and can be prompted to do this in many ways. One is through the use of visual prompts, i.e. flat screens, counter mats, service displays, delivery displays, hang tags, “Did you know we do ____?” buttons, etc.

These and other items “prompt” the customers to ask about services they ▲

American Drycleaner, April 2013 29

don’t currently utilize.

Help associates to cross-sell by providing them with a list of questions (updated periodically) to ask of each customer and make them aware of additional services from which they can benefit. This can work via hang tags for customers that you don’t see face-to-face.

Whatever the media you choose, there must be a realistic budget to fund your sales and marketing efforts.

Give your dedicated sales team professional sales training and management, with sales goals, call requirements, closing percentage targets and constructive feedback.

INVEST IN MARKETING. Recently, marketing attention has rightly focused on the Internet and social media. Since so much information is available about this marketing channel, I won’t dwell on e-marketing here.

While traditional media may be less effective than it once was in many cases, well-selected media buys are proving to be extremely successful and much less expensive than previously due to the reduced circulation of newspapers. A declining subscriber base can make a newspaper less valuable for mass marketing, but there is a high correlation between newspaper readership and dry cleaning usage, so wellplaced messages (including press releases) can create a significant impact for you.

The cost of cable TV advertising has also dropped dramatically, and is now affordable for, again, selective placement during programming identified as desirable to your customer based on the profiling

you conduct.

Whatever the media you choose, there must be a realistic budget to fund your sales and marketing efforts. Those of you who have experienced the challenge of the highly visible chain dry cleaners know their spending is far higher than you ever budgeted before. For those who have not yet faced the challenge, be prepared to face marketing expenditures of 5-7% of sales.

CONSIDER

ACQUISITIONS THAT ARE COMPLEMENTARY AND IMPROVE EFFICIENCY. Perhaps the simplest way to increase profitable sales is to acquire a compatible competitor that is ready to move on. The economies of scale that can be achieved by combining operations may result from:

• Better utilizing your existing plant capacity

• Improving personnel efficiency

• Right-sizing your store store and route offerings

• Combining central management

• Back-office operations

The length of the economic downturn has increased the number of acquisition opportunities. As always, thorough analysis is required to ensure that the opportunity is valid for your organization and that the transaction is designed appropriately to optimize your benefit.

These are just a few primary approaches to the question of how to build profitable sales. If you implement any of these basic steps, you are headed for increased sales and profit. O

Methods for Management (MFM) Inc. has served the dry cleaning and laundry industries with afford able management expertise for improved profitabili ty since 1953. For assistance with sales, marketing, or acquisition plans, contact Diana Vollmer at dvollmer@mfmi.com, 415-577-6544.

American Drycleaner, April 2013 www.americandrycleaner.com

d ry cleaning Machinery: Perc

Firbimatic

Firbimatic’s Vortex Plus machines include Vapor Induction Drying, which streamlines airflow through the chamber to help reduce drying times. A Smart Combi controller is fully programmable, has 20 programs, a fully manual control, and features more than 10 languages. A Maintenance Manager incor porates diagnostics and a full maintenance schedule.

Two independent circuits handle filtration,with two spin-disk filters and two all-carbon filters. ChillPerc is a refrigerated solvent cooler that cools the solvent prior to entering the wheel to reduce dye bleeds, and the integrated CoalPerc carbonadsorption system removes the solvent.

Firbimatic also offers economical Axial Series machines featuring two filter circuits with an ecological spin-disk filter, an allcarbon filter, large-format housing, double water separators, solvent cooler, CoalPerc, and steam traps.

firbimaticusa.com | 800-220-0630

Columbia/ILSA

<<

TD Mach 2 fourth-generation perc ma chines from Columbia/ILSA are available in 40-, 50-, 55-, 65-, 80-,99-, 120- and 160-pound capacities, as well as tandem systems for up to a 320-pound capacity. The machines reduce cycle times and speed production with Quick Dri technology, which directs airflow into the center of the drum with 95% efficiency.

TD Mach 2 machines feature 316 stainless steel in the recovery unit, still, condenser, water separator and button trap for durability, and the sealed refrigeration coils are ac cessible for easy maintenance. The IL-2 microprocessor allows users to choose up to 40 programs, and adjusts temperatures and drum speeds during every step of the cycle.

All machines come with Columbia’s patented, emission-free still-cleaning system, door locks, and safety switches to maintain operator safety. columbiailsa.com | 800-446-5634

Italclean

Perc machines continue to be at the core of Italclean’s business, and the company exports machines around the globe, it reports. Italclean’s basic machine is the Liberty 200; at 10 to 12 kilo grams (or 25 pounds), the machine is simple with no frills, the com pany says. It features an inverter drive, Danfoss valves, aeroquips fittings in the refrigeration unit, extra-powerful distillator, and more. The machine also is available in 15-kg and 18-kg capacities.

To minimize shipping costs, the company ships 10 units in a 40foot container.

The machine is popular with hotels around the world, Italclean says, including the famous Burj Hotel in Dubai. italclean.com | 39-051-6630468

Realstar USA

Realstar’s perc dry cleaning machines are available in 35- to 90-pound capaci ties in two- or three-tank configurations. The T Series is available in 40-, 50- and 60-pound capacities in a two-tank con figuration, making them ideal for dry cleaning facilities with space limitations.

The M Series machines are available in 40to 90-pound capacities in a three-tank configuration. The RS Series is available in a 35-pound, two-tank configuration. realstarusa.com | 888-822-7827

Aero-Tech

<< <<

Engineered with the dry cleaner in mind, the Aero-Tech perc dry cleaning machine contains the company’s original two-filter design, allowing for the separation of light and dark fabrics. The machine also features a “Logitrol” Dual Control Panel for a simple and flexible manual operation, a Refrigerated In-Line Solvent Cooler to maximize solvent flexibility and wash capabilities, and Advanced Recovery Filtration for better solvent mileage. steineratlantic.com | 800-333-8883

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American Drycleaner, April 2013 33

Donini International

Donini International’s perc dry cleaning machines observe safety, emission and con sumption regulations, the company says.

The system allows an operator to reduce water consumption to zero, thanks to a built-in feature that keeps the machine independent from the water supply. During distillation and drying phrases, the machine is self-sufficient, using chilled solvent – at temperatures that can reach -15 C.

The same solvent is used for normal dry cleaning, but the system allows the dry cleaner to adjust the solvent temperature for each load, which means a wide range of dry-cleanable garments can be cleaned, the company says.

A dynamic suspended cage is fitted with springs and shock absorbers, allowing 175 G-force with minimal vibrations. A frequency inverter drive electronically controls the ma chines, ensuring a smooth run of the drum with variable-speed spin and wash settings.

Soft-mount technology is designed to pro

Renzacci

tect the machine from the usual wear-andtear characteristics of rigid-mount machines, Donini says, granting up to a 30% increase in the life of any machine component. The technology also reduces the machine’s overall maintenance needs and cost.

A touch-screen control system includes a 5.2-inch monochromatic display, allowing the operator to interface in a more immediate fashion without keyboards or confusing codes. Another feature is the on line troubleshooting guide: if an alarm appears during the cycle, an error message will appear on the display indicating the type of problem, and a single touch will provide a clear explanation and how to fix it.

Solvent monitoring of tanks is displayed at all times, and there can be a partial or total drain of the solvent after washing. The machines also allow the opera tor to choose the destination tank, providing for solvent recovery after distillation or drying.

The machines also have an optional mo dem connection to allow for troubleshooting and software upgrades. donini.com | 39-059-697094

In its range of equipment using perc, Renzacci says it offers a new and advanced line of dry cleaning machines: the Progress models range from 18- to 352-pound capacities.

The machines feature a micro-filtration system known as No Flex™; Windjet™, a new built-in drying and solvent-recovery system; and an advanced quick-solvent-extraction system called Multipoint, which helps an operation lower its costs while meeting the latest, most stringent regulations.

The Progress series also offers a real-time control and management system featuring interactive capabilities that allow the operator to check the machine’s consumption of solvent and its solvent recovery. renzacci.com | 39-075-862961

American Drycleaner, April 2013 www.americandrycleaner.com

ending Off Hack Attacks F

By Phillip M. Perry

Protect your business’ online back account from fraud

Quick. Easy. Efficient. Who doesn’t love online banking? Be aware, though, of the danger: Hackers can access your account, drain your funds and threaten the survival of your business. The risk is growing. Cyber attacks increased some 24% in the first half of 2012 over the same period the previous year, according to a new report from security firm Symantec. Reason? “Any time the economy goes down, white collar crime goes up,” says Bill McDermott, CEO of Atlanta-based McDermott Financial Solutions. “We’re seeing an increase in corporate account takeovers. It’s a huge problem.”

Banks commonly refuse to indemnify companies for funds stolen from commercial accounts. “A lot of people have the misunderstanding that banks offer to business accounts the protection offered

to consumers,” says McDermott. “In fact, banks will not hold business account holders harmless for losses from cyber-fraud.”

TARGET: YOU. “There seems to be a trend toward hackers targeting smaller businesses,” says Brian Krebs, a cyberfraud investigative reporter in suburban Washington, D.C. “Perhaps that’s because larger businesses tend to have protective systems in place so the bad guys have to jump through more hoops.”

The numbers tell the tale: Some 36% of attacks during the first half of 2012 were directed at businesses with 250 or fewer employees, according to Symantec. That’s a big spike from the previous year.

“There appears to be a direct correlation between the rise in attacks against smaller businesses and a drop in attacks against larger ones,” says Paul Wood,

(Photo: ©iStockphoto/PN_Photo)

Symantec’s cyber security intelligence manager. “It almost seems attackers are diverting their resources directly from one group to the other.”

SECURE SYSTEMS. Why won’t banks protect business accounts? One reason is legislative: Only consumers are protected by the Federal Electronic Funds Transfer Act, also known as “Regulation E.” If timely notice is given by the victimized consumer, almost all of the stolen money is reimbursed. Here’s another reason: Banks expect business owners to perform due diligence.

“In the area of cybersecurity, banks expect businesses to possess a level of expertise higher than that of consumers,” says McDermott. “For example, businesses are expected to maintain protection against malware and to train employees to avoid Internet sites where they can pick up viruses.”

A cyber attack most often begins when a hacker installs a rogue program on the computer of a targeted business. Called “malware,” this program captures usernames and passwords for the company’s online bank accounts. From there, it is an easy step for the hacker to access the account and wire funds to other financial institutions.

And here’s the really bad news: Computers give little indication they are infected with malware. Programs designed to detect rogue programs are often unable to identify the code written to hack financial data. “Once on your system, sophisticated malware may keep itself patched faster than your antivirus software updates itself,” says Krebs. As a result, the only way to really cure a sick computer is to reinstall the operating system.

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What to do? Even small businesses without IT staffs can take basic security steps. “Make sure your computers have virus protection and the appropriate firewalls,” suggests McDermott. “From the business practice standpoint, if you send out ACH [Automated Clearing House] transactions, set up a system of dual control so that one person initiates the transaction and a second person approves it before the bank accepts it. And look at accounts on a daily basis to spot unauthorized transactions quickly.”

Some experts suggest dedicating one computer solely to the task of online banking. Keep infections off the computer by prohibiting its use for e-mail or for web surfing other than bank-related sites. “Strip down the computer to whatever software you need and nothing else,” says Krebs. “And keep it up to date with the latest patches every day; don’t fall behind.”

That last bit of advice, adds Krebs, applies to all your computers. Hackers constantly write new programs that exploit vulnerabilities in software such as the Windows operating system, Java, and the Adobe Acrobat reader of PDF files.

One final thing: Install the most up-todate computer operating system, because each iteration provides better security.

GOOD HABITS. Modern operating systems, with their native security features, can only do so much. Employees must be trained on good computing habits. Here are some of the best:

Avoid e-mail attachments — “Three out of four malware attacks come from e-mails with links that are clicked on by recipients,” says Krebs. “If the browser is not fully patched, one click can do it.” ▲

American Drycleaner, April 2013 37

Surf safely — “Visit certain web pages with a browser that is not fully patched and you can get infected by code in an ad banner or elsewhere on the page,” Krebs warns.

Bank securely — When visiting your bank’s website, use a bookmark that points to the institution’s secure “https” page. In other words, go directly to “https://www. bankname.com.” In contrast, going to “www.bankname.com” can allow attackers to exploit your unencrypted connection.

Review bank statements — Monitor your monthly bank statement closely for unexplained financial activity.

Go offline — When finished with a computer for the day, shut it down completely rather than put it in sleep mode. “While a computer is in sleep mode, the encryption keys used for anything from web sessions to hard-disk encryption are likely to be resident in memory,” cautions Stephen Sims, senior instructor at Bethesda, Md.,-based SANS Institute, a security training organization. “An attacker can use special tools to dump the memory from a system that is not completely shut down and potentially steal this information to gain unauthorized access.”

STRONG PASSWORDS. Security experts have long championed the virtues of strong passwords. A mix of letters and numbers is much safer than using an easily guessed word such as “qwerty” or even “password.”

It’s not really necessary to commit passwords to memory. “There is a lot of good software to help you manage your passwords,” says Michael Spadaro, presi dent of Help with a Smile, a New York City-based technology support firm serving small businesses. “One of my favorites

is LastPass (lastpass.com). But you could also use something as simple as keeping your passwords in a notebook locked in your desk.”

Be careful how you distribute passwords to employees, adds Spadaro. “Many banks will allow multiple log-ins, so assign different passwords to different users,” he suggests. “Then you can disable a departing person’s password without disabling everyone’s.”

VET YOUR BANK. There is some motivation for financial institutions to maintain a minimal level of security: Good internal practices are encouraged by government agencies charged with overseeing bank activities.

Even so, you will want to subject your own bank to some due diligence. “Perform risk assessments when evaluating potential banks,” Sims says. “Draft a list of questions with your biggest concerns and run them by each organization.”

How good is the bank’s Internet defenses? How do the bank’s practices, and the security features it offers business accounts, compare with other institutions? For example, does it offer a two-step validation, in which an ACH transfer must be approved by a second representative at your office? There are other forms of what is called “multifactor authentication,” in which the bank must receive a backup confirmation from your business, in the form of a voice phone call or e-mail, before honoring a wire transfer.

Sims suggests researching each prospective bank using publicly available tools such as Google, the Securities & Exchange Commission, Dun & Bradstreet, and others. “Analyze each bank’s stock

American Drycleaner, April 2013 www.americandrycleaner.com

performance if publicly traded,” he says. “Read through some of the comments in public message boards. Hint: Many of the posters are employees.”

Sims suggests visiting websites such as darkreading.com to see if there are any reports regarding incidents at your prospective bank.

Big bank or small bank? Each has its benefits. While all financial institutions are required to abide by federal regulations, larger banks may have more security resources and experience. However, smaller banks may have fewer accounts to monitor and may give each one more attention.

WHEN HACKERS STRIKE. Suppose, despite your best efforts and smart practices, a hacker siphons money from your account. Can you get any back? While it’s highly unlikely that a victimized business will

recover all of its stolen money, portions can often be saved. “Fraudulent transactions frequently are reversed, so most victims get some money back,” says Krebs. The secret to recovering your cash? Act fast. “Time is your enemy,” he says. “The longer the time that elapses since a breach, the more money you are likely to lose.” Don’t wait until the last minute to figure out whom to call in the event of a money loss. Put together a list of vital financial and legal contacts and keep it handy.

Quick action on your part, though, must be matched by your financial institution. “You have to have a cooperative bank that pulls things together quickly,” says Krebs. Once your funds have been withdrawn as cash, they are gone for good. O

Phillip M. Perry is a freelance writer based in New York City.

www.americandrycleaner.com

American Drycleaner, April 2013

DLI/NCA CONFERENCE

Dry cleaning pros exchange best practices, soak up sun during Cancun gathering

Five-Star Brainstorming

When was the last time you shared ideas with industry peers on how to make your dry cleaning business more efficient, expand your customer base, or boost your bottom line?

More than 100 dry cleaning professionals traveled to a Cancun resort in January to exchange best practices during a joint conference sponsored by the Drycleaning & Laundry Institute (DLI) and the National Cleaners Association (NCA).

Brian Johnson, DLI’s director of education and analysis, called Secrets The Vine resort a “fantastic venue. Attendees learned each other’s business secrets at daily, three-hour seminars. For example, motivational speaker and author Jack Mitchell discussed his “Hug Your Customers” philosophy that helps his business operating men’s and women’s specialty stores to thrive.

“His methods were fascinating,” says Johnson, explaining that “hugs” are unexpected gestures like placing a birthday card in a customer’s suit pocket.

“He enters every bit of information he learns about a customer into a database— the names of their spouse, children and pets; anniversaries; favorite sports teams; where their kids go to school—then uses that information to build relationships.

“Customers not only remember those hugs, but become loyal, and encourage their family and friends to do business with him.”

Economist Ray Keating told attendees that the sun will rise sometime soon.

“According to what we heard, even bad economic times present opportunities to the creative and forward-thinking entrepreneurs,” says Ann Hargrove, director of special projects for NCA. “Ray’s message was to be creative, keep trying inventive ideas and to remember the ancient proverb, ‘This, too, shall pass.’”

Nora Nealis, NCA’s executive director, found the mix of seminar and leisure time to be ideal.

“Some great information came from the sharing done among the cleaners when

they were poolside, dining together or just sitting around,” she says. And the best part of any conference, according to Nealis, is the opportunity to meet and greet. “Renew ing old friendships and forging new ones in such great surroundings is always a high spot for everyone attending.”

Jamie Albano, president of Albano’s Cleaners, Norfolk, Va., says she took home a lesson on how to hug her customers.

“I am working on how, with a central plant, to make sure all staff feels like they are hugging their customers, even though they may never see the customer,” she says. “Teaching them to take pride in what they do will ultimately make a huge difference.”

Joe Hallak of Hallak & Sons in New York City says he found the energy generated by such a wide cross-section of cleaners to be extremely exciting.

For Fred Schwarzmann, president of A.L. Wilson Chemical Co., the networking opportunities were a highlight. “I think this year’s event had about double the number

of people as last year’s event, because it’s the second year now and people were very positive about last year’s event.

“The more people who come to these events, the better because it facilitates a more robust cross-pollination of ideas.”

His allied trade co-sponsors, Adco Chemical, CLG Insurance, Electrolux and The Green Garmento, agree that it was great to be able to spend relaxed, quality time with such a group of cleaners.

DLI CEO Mary Scalco summed up the event by saying the annual collaborative conference represents a unique opportunity for dry cleaners to discover new practices, address common challenges, gain industry insights and receive constructive feedback about specific operational issues and solutions.

DLI and NCA have already begun planning next January’s conference. In the meantime, more educational opportunities await attendees of Clean Show 2013 in New Orleans (June 20-22) and NCA’s Texcare 2013 in New Jersey (Oct. 19-20). O

(Photo: DLI)

How to Safeguard Your Business Name

By Fred S. Steingold

Microsoft. Starbucks. Walmart. They’re all memorable names. You can bet that those companies carefully made sure they had exclusive rights to them.

Your business name may not be as distinctive or well known. Still, you’d hate to have a judge tell you that you can’t use it anymore. And if another business copied your name, you’d like to be able to go into court and put a stop to it.

So how do you protect the name of your business or service? We’ll look at

a few techniques. But, ultimately, only you and your lawyer can decide how much effort and expense to invest in name protection.

Your decision will depend on many factors, including:

• the size of your business

• the size of the market in which you operate

• the type of product or service you offer

• your expectations for growth and expansion

Generally, the more customers

(Photo: ©iStockphoto/Yuriy Kirsanov)

your business will reach, the more you need to be sure that you have the exclusive right to your chosen name. Joe who runs a local computer repair service won’t need as much name protection as Alicia who plans to sell a new line of iPad cases in all 50 states.

Obviously, the Internet is a major factor. It’s caused a rapid growth in the number of small and mid-sized businesses that compete with one another. How does this affect you? It means you may have a greater need than in the past to do in-depth name searches — and perhaps to seek trademark protection.

HOW FAR SHOULD YOU GO? Let’s start by focusing on the simplest situation. Yours is an extremely small local business, for example, that probably needs to do noth-

ing more than meet a few requirements of state law.

Example: Jeff wants to start a local photography studio called “Portraits by Jeff.” He’ll be a sole proprietor. Since his is a small, unincorporated local business, he’s probably safe enough if he just registers his business name at the county level. (Some states require registration at the state level — and publishing the name in a newspaper.) Jeff probably doesn’t need to spend time and money to register the name as a trademark or service mark. He should, however, check to be sure there are no other photographic studios in his area using the same or a similar name.

If Jeff decides to incorporate his little business or form a limited liability company, he’ll need to make sure the business name contains the right additions (such ▲

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American Drycleaner, April 2013

as Inc. or LLC). He’ll also need to be sure the name doesn’t conflict with that of other corporations or LLCs in his state. The corporate filing office can probably check this out for Jeff in advance. The cost, if any, will be minimal.

But be aware of this important fact: having the state accept your corporate or LLC name doesn’t give you the protection of a trademark.

Still, in most cases, if you have a small local business that uses your name or an extremely common name to market goods and services locally, you can pretty safely ignore trademark concerns. So if you call your business Harvey Walker Roof Repair, you’re not likely to have a trademark problem.

But if your business is bigger—such as a large camping equipment store, Wilderness Outfitters—or sells goods or services beyond a local or industry-specific niche—Lamps.com Online Lamp Store, for example—I recommend that you look into trademark protection. Here’s why.

You don’t want to buy signs, stationery and ads and then get a nasty letter from a large company that claims a right to the name you’re using and threatens you with a trademark infringement lawsuit.

Just defending such a case in federal court can cost you upward of $100,000. Even if you’re sure that you’re in the legal right, you’ll probably wind up changing your business name just to duck the lawsuit.

MAXIMUM PROTECTION. If name protection is important to your business, you’ll get the maximum protection by obtaining a trademark if you sell a product—or by getting a service mark if you sell a service.

A trademark is a word, phrase, design

or symbol that identifies a product brand. Examples are Dell computers, Nike shoes, Kodak cameras and Marathon gasoline.

A service mark is a word, phrase, design or symbol that identifies the provider of a service. Examples include Burger King (fast foods) and Roto-Rooter (sewerdrain service), Kinko’s (copy centers) and Hertz (car rentals).

To properly register a trademark or service mark, you’ll probably need help from a lawyer who specializes in intellectual property law. But if you’re a do-it-yourself type, you can save money by doing some of the preliminary work, including conducting a search of existing names that have been registered. For guidance on how to do this, read Trademark: Legal Care for Your Business & Product Name, by Richard Stim and Stephen Elias.

From a legal protection standpoint, the best trademarks are coined words, such as Kodak or Yuban. Or try for an arbitrary word—such as Arrow for shirts or Apple for computers—that has nothing to do with the product. Nearly as good are suggestive trademarks, ones that hint at some aspect of the product. For example, Talon suggests the gripping power of a zipper.

Even if you don’t seek full-fledged trademark protection, it helps to conduct a national name search. That way, you’ll avoid stepping on someone’s toes. O

Legal strategies may vary depending on the state in which you live and the specifics of your situation. Consult your attorney for legal advice.

Fred S. Steingold practices law in Ann Arbor, Mich., for the firm of Hamilton, Judge, Schroer & Stein gold, PLC. He is the author of The Legal Guide for Starting and Running a Small Business and T he Employer’s Legal Handbook , published by Nolo Press.

American Drycleaner, April 2013 www.americandrycleaner.com

Hunt for the Hidden Hanger

Did you know that, for more than a decade, American Drycleaner has hidden a small hanger on virtually every cover? The tradition began in February 2003 as nothing more than a simple, lighthearted way to challenge our readers. And we don’t make it easy, because where’s the fun in that? It can be caped, or plain wire, and size and color varies, but a hanger is always there. So, put on your reading glasses and spend a few extra moments searching this month’s cover. And if you can’t find it, don’t despair — we’ll give you a clue. Scanning the QR code below with your mobile device will open a web page that will show you a visual clue. If you don’t have a smart phone, visit americandrycleaner.com/hanger-clue . Happy hunting!

industry observations

t he e mployer/ e mployee r elationship

L

et’s talk relationships. You are the boss, and you have employees working for you. You pay them wages to do a good job. You expect them to want your company to do well and become mad when it seems they don’t care. Is there something more you can do to build allegiance and get them to care about your business?

Believe me, if you paid them one and a half times what they would earn at a competitor’s shop, you wouldn’t have created more allegiance. Money is not the answer. You build allegiance by creating a team.

One aspect of a team is that everyone looks out for everyone else. Since you are the most successful member of your team, the heaviest burden falls on you. You must be someone the others can go to when they need a favor.

This is tricky, because allegiance walks a fine line. Become overly friendly with an employee and you’ll lose the ability to be his or her boss. You will have difficulty making the hard decisions that are demanded of a business owner. The crew will take advantage of your softness.

They will make unreasonable demands. They will be derelict in their duties. They will walk all over you.

To find past columns from Howard Scott or share this month’s with your colleagues, visit AmericanDrycleaner.com.

Ultimately, your team will become dysfunctional and you will suffer the plight of a harried manager. Become someone for whom teamwork is key. As the team leader, demonstrate that you value your employees more than just economic pegs that fit into appropriate holes. You see them as vulnerable human beings trying to live their lives as best they can and you are willing to go out on a limb for them. In fact, you are willing to help them out with their problems because they deserve a little help every so often.

Your staffers may not be the most ambitious people in the world. They may not be Rhodes Scholars. They may have made poor judgments in the past, have messy personal lives, not be terribly articulate. But they are human beings who are willing to work. The fact that they are willing to do repetitive drudgery in a dry cleaning plant is testament to their work ethic. Attention must be paid to these people.

If an employee has their car in the shop, maybe you could lend them one for a few days. You might help a staffer move by loaning use of the company truck and even pitching in on the day of the move. You might let an employee and his bride use your getaway cottage for their honeymoon. How about sitting down with a longtime worker and listening to his marriage problems? Give him some good advice, and maybe arrange an

Howard Scott

appointment with someone in the know. Invite the workforce over on a hot Sunday to use your swimming pool. Hire a staffer’s daughter to baby-sit your kids. Use your general manager’s brother–inlaw as your plumber. Hire your longtime seamstress’ son to work in the shop during his college break.

Go to bat for a steady worker when he receives a DUI by involving your lawyer. When an employee’s apartment floods out, arrange for him or her to buy appliances from your appliance dealer friend at a deeply discounted price. Help your faithful longtime worker complete paperwork for a home mortgage.

What about lending money? Tread carefully, because here is where you could get hurt. You’re committed to your team, you want to help them, but you don’t want money to come between you. Yes, you want to be a good guy, and you want to

feel that they can come to you when they need help. But lending money seems to be the stumbling block where things can snag and go wrong. And they often do.

If you co-sign a note, for instance, and

What about lending money? Tread carefully, because here is where you could get hurt. ... you don’t want money to come between you.

the staffer reneges on the obligation, making all kinds of excuses, the debt falls on you. You have two options: forget about the money or fire the employee.

Garnishing the individual’s wages is not an option, because that relationship almost always results in dissatisfaction. Firing the person causes two problems: you have to replace the worker, which ▲

is a headache, and you absolutely won’t get paid. Better not get involved in loaning money. Steer clear of this ticking time bomb.

Bend over backward for your people (in everything but money) and they will bend over backward for you.

If an individual comes to you for a loan, offer a reason why you can’t help. My money is all tied up in investments. I am saving for my daughter’s wedding. My father needs 24-hour care and my brother and I are paying for it. I am putting two kids through college. Instead, help the staffer find a loan from other sources. Perhaps you know a banker who might create an arrangement. If the staffer needs a second car, possibly you could figure out a way in which the staffer and his wife could manage one car for a while. Maybe you could help the worker examine her mortgage to figure out a way to take out an equity line of credit. Offer aid without giving out the money. That’s my advice, because I know from personal experience. Twice, I lent money

to my employees. Twice, I lost both staffers and never got paid. The incidents created sour grapes among the entire staff because everybody knew what was going on. Talk about destroying team spirit.

Become a resource for your staffers. Your assistance will come in handy and will garner much appreciation. Second, you’ll become more involved in their life. Third, the workers will come to see themselves as part of a team and will want the company to succeed as much as you do.

You won’t just be the boss. You’ll become a person who values staffers. You’ll become a human being with a heart and soul. And people respect that sort of person more than just a money-grubbing, onedimensional businessperson. That’s the ultimate bottom line. You grow committed employees.

Bend over backward for your people (in everything but money) and they will bend over backward for you. O

Howard Scott is a longtime industry writer and dry cleaning consultant, and an H&R Block tax prepar er specializing in small businesses. He welcomes questions and comments, and can be reached by writing Howard Scott, Dancing Hill, Pembroke, MA 02359, by calling 781-293-9027 or via e-mail at dancinghill@gmail.com.

(Photo: © iStockphoto/Alashi)

Consolidating Defined Benefit Plans

The more things change, the more they stay the same. So goes that old saying illustrating an important truth in many aspects of life, but not in retirement planning.

The world of retirement planning has undergone many drastic changes in recent years, most of which would appear to be here to stay. Perhaps the most significant of those is the gradual disappearance of the corporate defined benefit plan.

A generation ago, in the days of generous corporate retirement plans, spending an entire working career with one employer was a common experience; these days, not so much. Today, many if not most of us will have more than one employer during our working careers.

Some of those employers may provide one of the new retirement accounts such as 401(k)s and some may not. In those cases, we have the option of opening individual retirement accounts (IRAs) to help save money for our retirement years. As a result, over a working career, many people wind up with retirement dollars spread out in several different accounts.

Accumulating multiple IRAs and 401(k)s is not the best investment strategy, according to Nancy Skeans,

CPA and Certified Financial Planner, Schneider Downs Wealth Management Advisors, Pittsburgh. “This can be counterproductive to a good investment strategy for several reasons,” she says. “Some examples are: (1) one account is so small, we just ignore it or let it sit in cash earning little or no investment return, (2) due to mutual fund investment minimums, our smaller dollar amounts may end up in funds that charge higher management fees, or (3) we end up collecting mutual funds over time with no real investment strategy in mind.”

Consolidating IRAs and 401(k)s into a single IRA can help to solve these problems, according to Skeans.

“First, when added all together, the higher dollar amount might now get your attention. Second, the higher balance may allow you to invest in a mutual fund or a lower-cost share class of a particular fund that was not available before. Third, when all of the assets are in one account, you will be better able to build and monitor a diversified portfolio with a common investment strategy,” she says.

“However, before you start closing IRA accounts or requesting distributions from old 401(k) plans, you should be aware of the tax implications and penalties that can be assessed if the consolidation is not

Bill Lynott

handled correctly.”

Skeans suggests picking a single IRA account into which all of the other accounts are going to be rolled.

“Most important, don’t request that any distributions from the old accounts be paid to you personally,” she cautions. “Have all distributions sent directly for your benefit to the custodian of the common IRA that you have selected. This is called a trusteeto-trustee transfer.”

The mistake you want to avoid is closing one retirement account and requesting payment to you directly. If you do that, the custodian is required to withhold income taxes.

When you receive the check to roll over, the taxes have to be made up. For example, if you are 40 years old and withdraw $10,000 from a regular IRA, the custodian will give you a check for $8,000 ($2,000 must be withheld for income taxes). Now, if you do not put $10,000 into another IRA within 60 days, you will have to report the $10,000 on your tax return, pay income tax on it, and pay a 10% penalty for early withdrawal.

If you instead roll over the $8,000 you received within 60 days, you still have to report the $2,000 of income and pay tax plus a penalty of $200. This is also true if you take the money from an old-employer 401(k). (The IRS allows 60 days to move money from one retirement account to another without penalty or income taxes.)

“All of this is avoided by using a trustee-to-trustee transfer,” says Skeans. “Since you never touch the money, there is no requirement for the old custodian to withhold taxes. If you are moving money from a 401(k), you have the custodian of the 401(k) transfer the assets directly to

www.americandrycleaner.com

The mistake you want to avoid is closing one retirement account and requesting payment to you directly.

the custodian of your IRA. That way, no taxes are withheld, and there are no early withdrawal penalties. It takes a bit of extra work, but in the long run, it ensures that no mistakes are made, and taxes and penalties are avoided.”

It’s a good idea, Skeans suggests, to have a financial planner help you with set ting up trustee-to-trustee transfers and other investment planning.

However, brokerage firms such as Charles Schwab, Vanguard, Fidelity and most others have departments that work with setting up and transferring retirement assets for individuals.

“They can explain the process thoroughly and help with the paperwork,” says Skeans. O

Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommenda tions. Consult an accountant or tax adviser for advice regarding your particular situation.

Bill Lynott is a freelance writer whose work appears regularly in leading trade publications and news papers, as well as consumer magazines including Reader’s Digest and Family Circle. Visit his website at blynott.com or e-mail lynott@verizon.net.

American Drycleaner, April 2013

edu C ation & training

Calendar

DEC Certification. Two-day NCA course, to be held April 7 and April 14 in Nanuet, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Technical Training II — Interactive Training for CSRs. NCA course, to be held April 7 in Nanuet, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Advanced Stain Removal and Intensive Bleaching. NCA course, to be held April 21 in Bronx, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

DEC Certification. Two-day NCA course, to be held May 5 and May 12 at a location to be announced. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Pressing & Finishing. NCA course, to be held May 19 in Miami, Fla. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Wetcleaning. DLI course, to be held June 3-4 in Laurel, Md. Call 800-638-2627 or visit dlionline.org.

Basic Spotting 101. NCA course, to be held June 9 in Bronx, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Intermediate Stain Removal and Bleaching. NCA course, to be held June 16 at a location to be announced. Call 212-967-3002 or e-mail ncaiclean@aol.com.

DEC Certification. Two-day NCA course, to be held July 14 and July 21 in Nanuet, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Extreme Stain Removal. NCA course, to be held July 14 in Miami, Fla. Call 212-9673002 or e-mail ncaiclean@aol.com.

Introduction to Drycleaning. DLI course, to be held July 15-19 in Laurel, Md. Call 800638-2627 or visit dlionline.org.

Advanced Drycleaning. DLI course, to be held July 22 through Aug. 2 in Laurel, Md. Call 800-638-2627 or visit dlionline.org.

Intermediate Stain Removal and Bleaching. NCA course, to be held July 28 at a loca tion to be announced. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Radical Drycleaning/Stain Removal. NCA course, to be held Aug. 5 through Aug. 9 in Northvale, N.J. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Advanced Stain Removal and Intensive Bleaching. NCA course, to be held Aug. 25 in Bronx, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com. O

Post your organization’s education and training course announcements on AmericanDrycleaner.com!

American Drycleaner, April 2013 www.americandrycleaner.com

MAY

Feature: Clean 2013 Show Guide

We have complete listings of the exhibitors, educational sessions and events that make Clean the show you can’t afford to miss!

Editorial Submission Deadline — March 15

JUNE

Feature: Boost Casualwear Sales

What you can do to gain more of the dress-down business. Coin-Op Laundry A self-service laundry could make your plant a comprehensive fabricare center. NOLA Know-How Here’s what to see and do while you’re in New Orleans for the Clean Show.

Editorial Submission Deadline — April 15

JULY

Feature: Customer Connections

A dry cleaner’s ability to build customer relationships presents valuable marketing opportunities.

Clean Show Report Part 1 The big news from the just-completed event!

Editorial Submission Deadline — May 15

AUGUST

Feature: Distributors Directory Updated annually, our easy-to-use directory issue lists equipment/ supplies distributors nationwide.

Clean Show Report Part II We offer an expanded look at the announcements, introductions and ideas that made Clean ‘13 a success.

Editorial Submission Deadline — June 15

SEPTEMBER

Feature: Contamination and Cleanup

Should your dry cleaning site have some chemical contamination, there are strategies for pursuing cleanup—and doing it without going bankrupt.

Editorial Submission Deadline — July 15

In Memoriam:

Norvin L. Pellerin, Pellerin Milnor Corp.

KENNER, La. — Norvin L. Pellerin, the co-founder of laundry equipment manufacturer Pellerin Milnor Corp., died Feb. 11, the company reports.

“Norvin took pride in offering the very best to his customers, family, and friends through out the world,” Milnor says. “He was a true visionary, who held 18 patents for various laundry machinery and pioneered top-transfer continuous batch washing. … Norvin’s design and engineering expertise, as well as his leadership, revolutionized the laundry industry.”

Pellerin won many awards, in cluding Tulane University’s School of Engineering Alumnus of the Year in 1996, the National Association of Institutional Linen Management (now the Association for Linen Man agement) Hall of Fame in 1998, The Rudolph Maglin Lifetime Achievement Award for Associate Members from TRSA in 2004, and the Junior Achievement Hall of Fame Laureate in 2012.

Surviving Pellerin are his wife of 63 years, Sue; two sons, Jim Pellerin and Curtis Pellerin; two daughters,

Julie Bukrey and Renee Gordon; 13 grandchildren; and five great-grand children.

In lieu of flowers, memorials may be made to either the Junior Achievement of Greater New Orleans (5100 Orleans Ave., New Orleans, LA 70124) or the Willis and Mildred Pel lerin Foundation that awards meritbased college scholarships (P.O. Box 400, Kenner, LA 70063).

In Memoriam:

William W. ‘Bill’ Haiges, Haiges Machinery

BROWNSBURG, Ind. — William W. “Bill” Haiges, the co-owner and op erator of commercial laundry and dry cleaning equipment distributor Haiges Machinery Inc., died Feb. 17 at the age of 66. Haiges oversaw the Indi ana division of the company, which is headquartered in Huntley, Ill.

He was a 1964 graduate of Dundee (Ill.) Community High School and served in the U.S. Air Force during the Vietnam War.

Surviving him are his wife, Victo ria; four children, Kimberly HaigesNavarro, Darrin Haiges, Brian Haiges and Timothy Haiges; four stepchildren; and nine grandchildren. Other survivors include his former wife and the moth er of his children, Diane Haiges; and two brothers, Robert Haiges and Lee Haiges.

Pellerin

Memorials may be made to The Animal House Shelter, 13005 Ernesti Rd., Hunt ley, IL 60142.

In Memoriam:

James H. ‘Jim’ Fitzgerald Sr., Herb Fitzgerald Co.

MILWAUKEE — American Drycleaner has learned of the recent death of James H. “Jim” Fitzgerald Sr., president of Herb Fitzgerald Co., a laundry and dry clean ing equipment distributor headquartered in Butler, Wis. He died Jan. 3 at the age of 85.

ing laundry and dry cleaning equipment and technologies to dry cleaners, laundries, hotels and hospitals in Russia for more than 30 years.

The exclusive licensing agreement en ables Koblenz & Partner to move forward to satisfy the fabricare needs of Russia’s fashion-forward, eco-conscious customers, GreenEarth says.

Koblenz & Partner sought to part ner with GreenEarth due to the unique fabricare and environmental benefits of GreenEarth’s silicone-based dry cleaning process.

With the addition of this Master Li cense, GreenEarth is now licensed in 44 different countries. It has more than 1,600 “Affiliate” licenses worldwide.

Fitzgerald

Fitzgerald is an inductee of the Wisconsin Fabricare Hall of Fame, among other industry honors he received over the years.

Surviving him are his children, Jim, Jeff, Dann and Janell; eight grandchildren; and two great-grandchildren. He was pre ceded in death by his wife of 53 years, Dolores.

Memorial contributions may be made to Lumen Christi Catholic Church, 138 W. Buntrock Ave., Thiensville, WI 53092.

GreenEarth Cleaning inks licensing deal for Russia, now in 44 countries

KANSAS CITY, Mo. — GreenEarth Cleaning LLC has signed Koblenz & Part ner as a new “Master Licensor” for Russia, GreenEarth reports.

Headquartered in Germany and Luxem bourg, Koblenz & Partner has been provid

www.americandrycleaner.com

“GreenEarth’s international roster has more than doubled in the last two years,” says company President Tim Maxwell. “And while it is certainly nice to be grow ing our global footprint, even more impor tant to us is the quality of the partnerships we are making. Like GreenEarth, Ko blenz & Partner is committed to making the world a cleaner, safer place through technologies and practical, comprehensive support.”

DLI launches listings site to promote members’ community service

LAUREL, Md. — Beginning March 1, DLI Cleaners Care, from the Drycleaning & Laundry Institute (DLI), began collect ing information to help raise awareness of community service projects that dry cleaners provide in their communities.

DLI members involved in any com ▲

American Drycleaner, April 2013 55

munity program, such as Coats for Kids, Glass Slipper Project, food drives, recy cling programs, etc., are encouraged to list their company and some basic information on DLIonline.org’s members-only section.

DLI will notify media producers and editors in North America of the program and supply a link to the list so editors may identify a cleaner in their coverage area. The overall goal, DLI says, is to promote a more positive image for DLI members by emphasizing the positive aspects of the cleaning industry overall.

ment rights to the south-southwest suburbs of Chicago, which include the Illinois vil lages of Frankfort, Mokena, Orland Park, New Lenox, Tinley Park, Joliet, Palos Heights, Oak Forest, and Romeoville.

Aversano’s plant is a 2,000-square-feet (with another 500 square feet of “flexspace”) end cap located in the Mokena Towne Square shopping center. The dry cleaning/shirt laundry features a Union GreenEarth™ 60-pound dry cleaning machine, a full lineup of Unipress™ dry cleaning and shirt pressing equipment, and a Wascomat wetclean-capable washer and dryer. His point-of-sale device is powered by CleanSuite™.

Prior to becoming a Martinizing franchisee, Aversano was the head of com munications at Rotary International. “Working for Rotary gave me the chance to meet a lot of business leaders who work tirelessly to make their communities bet ter,” he says.

He is now a volunteer member with Rotary and runs the business side of a dental practice with wife Dr. Laura Aver sano along with developing his Martiniz ing business.

Martinizing Dry Cleaning franchisee opens first of five planned stores in Chicago suburbs

CHICAGO — Martinizing Dry Cleaning franchise reports the opening of the first of five stores planned in the south and south west Chicago suburbs.

New franchisee Vince Aversano was awarded the five-store exclusive develop

“We really love our community, and I try to give back,” he says. “I’m the presi dent of the chamber of commerce, and we are very much involved.”

Small-business loan program access to expand under proposal

WASHINGTON

American Drycleaner, April 2013 www.americandrycleaner.com

Vince Aversano has received Martinizing’s five-store exclusive development rights to the south-southwest suburbs of Chicago.

(Photo: Martin Franchises Inc.)

proposed regulation aimed at streamlining the application process while strengthening oversight and program integrity.

Among the proposed changes are:

• Eliminating the Personal Resource Test — A borrower will no longer be required to obtain a maximum level of personal finance resources for a 7(a) or 504 loan. This will streamline the loan process by eliminating compli cated regulations used to determine the amount of collateral required.

• Revising the Rule on Affiliation — This will open access to SBA loans to businesses that, under current rules, would not qualify as a small business under SBA’s size standards by virtue

of their association with other compa nies. It also would streamline 504 loan applications and reduce paperwork re quirements.

• Eliminating the Nine-Month Rule for 504 Loans — This will remove a restriction that limits a business to in clude in its 504 project only expenses incurred nine months prior to submit ting the loan application. The new rule would allow inclusion of expenses in curred at any time (e.g., projects put on hold for more than nine months due to a natural disaster).

Comprehensive information on the new rules and potential benefits for small busi nesses can be found at sba.gov. O

The Drycleaning & Laundry Institute recently graduated its 357th Introduction to Drycleaning Class. Pictured are (front row, from left) Brian Johnson, DLI director of education & analysis; Kimberly Hardy, Dixie Dry Cleaners, Alliston, Ont.; Elena Samofalova, Cleaning Service Inc., Pompano Beach, Fla.; Lisa Gunderson, Royal Fine Cleaners, Northport, Ala.; Heather Spence, MW Cleaners, Spring, Texas; Stevia Sutanto, TU Delft, Delft, Zuid Holland, Netherlands; Natalia Baldwin, McLean, Va.; (back row, from left) Marc Kobrosli, Blondie Cleaners/Somethin’ Special Shop, Windsor, Ont.; Jason Chan, Gaskins Dry Cleaners, Midlothian, Va.;

www.americandrycleaner.com

Ian Noble, Rick’s Cleaners, Austin, Texas; Rowland Achuko, Fayetteville, N.C.; Jason Yates, Yates Services, Alexandria, Va.; John Porter, Porter’s Drycleaning, Bossier City, La.; Eric M. Moncada, American Dryclean, Tegucigalpa, Honduras; Robert L. Milner, Kleen Laundry & Drycleaning Services, Lebanon, N.H.; Cliff Robinson, MW Cleaners, Spring, Texas; and Saeid Sahragard, Husky Dry Cleaners, Missouri City, Texas. Samofalova, Spence, Porter and Robertson attended at no cost as DLI Premier Club Members. Hardy attended on the Tom Kimmel scholarship from Fabricare Canada . Kobrosli, Gunderson and Noble attended on R.R. Street & Co. scholarships.

American Drycleaner, April 2013 57

2013 RATES: One- to five-time rate: $2.40 per word, boldface $2.50 per word. Minimum charge: $25.00 per ad. Call or write for our three- and 12-time rates. If box number is used, add cost of 5 words. Display classified rates are available on request. All major credit cards are accepted.

PAYMENT FOR CLASSIFIED ADS: Must accompany order. DEADLINE: Ads must be received by the 1st of the preceding month. For example, for a June ad, the closing date is May 1st.

BUSINESS OPPORTUNITIES

Own Your Own Drycleaners—Managers, Spotters, Tailors, Pressers! 100% Financing. Plant or Drop, location of your choice. Call 1-561-302-5031 or 1-888-275-6637.

AMERICAN DRYCLEANER BOX NUMBERS:

Most ads contain a phone number, street address or a U.S. Post Office Box number for reply. However, some advertisers choose an American Drycleaner confidential reply number. For these ads, address your reply to the box number printed in the ad, c/o American Drycleaner, 566 W. Lake St., Suite 420, Chicago, IL 60661, or fax replies to 312-361-1685. For more information, please con tact us at 312-361-1700.

EQUIPMENT FOR SALE

105LB HOYT PETRO-MISER with refrigeration unit. Model PET 105 unit was purchased in 1998 and is in good condition. Asking $6000

60LB EXPLOSION PROOF MARVEL HYDRO-CARBON D/C MACHINE with filter housings. Model EP-60-2BATH. Machine was purchased in 2003 and is in excellent condition. Asking $6000 CALL EDDIE AT 540-494-3316

HELP WANTED

Midwest Laundry Distributor seeks experienced service technicians for locations in Indiana, Illinois, and Wisconsin. Please call Haiges Machinery @ 800-542-2828 x 35 or email Steve@haigesmachinery.com.

Plant Manager: Large drycleaning plant in Oklahoma City, OK. Prefer someone with man agement and drycleaning plant experience. Benefits and competitive salary. Email a resume to perryokc@coxinet.net or fax to 405-341-8794.

HELP WANTED

Tampa, Florida: Mechanic needed for multi-store operation with high volume and expanding rapidly. Salary based on experience and know how. Must have at least 3 years experience in a dry cleaning setting. Please apply on-line at qpcleaners.com

SALE

Price’s Cleaners, Plymouth, IN. Dry-cleaning and shirt laundry. Turn key. Business, building and lot. Priced to sell. In business 43 years. Lot: 60 X 188 ft. Building: 2702 sq. ft. Corner lot. Busiest street. Restaurants, church and offices near. Retiring. 574-936-9021

REWEAVING SERVICES

W ITHOUT-A-TRACE WEAVERS— More than 50 years’ experience. We are the experts in silks, knits, French weaving and piece weaving. Reasonable prices. Send garments for estimate to: 3344 W. Bryn Mawr, Chicago, IL 60659; 800-475-4922; www.withoutatrace.com.

SUEDE & LEATHER SERVICE

American Drycleaner and AmericanDrycleaner.com

A Winning Te A m

Print

American Drycleaner is the industry’s premier publication for news relating to dry cleaning plants. In it, you’ll find profiles of successful businesses and their owners, tips for running your operation more successfully, expert advice, and much more.

E-News Web

AmericanDrycleaner.com is your one-click site for all of the most up-to-date information on the industry today. Stories are updated daily to ensure you’re always informed. Plus, online tools such as the Distributors Directory and Buyer’s Guide will fulfill all of your plant’s needs.

Visit us at the Clean Show in New Orleans June 20-22 — Booth 4171

Chewing Gum...

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50 YEARS AGO. Bill Naill, of Artistic Cleaners & Tuxedo Rental Service in Wichita, Kan., made a gamble a couple of years ago by purchasing 10 tuxedos to rent out, in addition to his dry cleaning business. His gamble paid off more than tenfold, as Naill has expanded his business into a 4,000-square-foot facility, and now not only stocks 300 tuxes for rent, but also caters to full bridal parties. Naill also has 200 cocktail dresses, 50 bridal gowns and 300 bridesmaids outfits for rent, which has garnered his business positive feedback from customers as far away as Oklahoma and Texas … Bob Babst, of St. Mary’s Laundry & Dry Cleaning in Ardmore, Pa., has taken the business savvy of personalized service one step further in a new ad campaign his company has released this month. The ads feature the headshot and full name of one of eight different route men for St. Mary’s, how long he’s been working for the company, and the route territory that he serves. “We are enthusiastic about the response from old and new customers, and the men themselves,” says Babst … The process of radiation has been proven to preserve food and has helped in making the anesthetic ethyl bromide cheaper. But recent findings conducted by the Army’s Natick lab has produced an allnew type of fabric, bonding vinyl to cotton duck cloth through radiation. The hybrid fabric is reported to be water-repellent, fire-retardant, resistant to mildew, and wears better than untreated cotton.

75 YEARS AGO. C.C. Hubbard has the solution for the chewing gum conundrum that

spotters face when treating chewing gum stains: a hammer. Hubbard explains that the hydrocarbon, milk-like substance from the bully tree used in making chewing gum is both water-soluble and soluble in “dry” solvents. Since the gum gets brittle at cold temperatures, the fix involves placing an ice cube on top of the stain and using a tack hammer to break the gum into pieces. … Cows may soon make an appearance on fashion runways, as a limited amount of a new fabric, called casein fabric, has made its way into the country. The fabric is made from a “cottage cheese”-like substance and spun into fibers with a fixing medium. Though government departments explain that general distribution of the product won’t occur for quite some time, the fabric itself is expected to react to dyes and spotting and cleaning agents much like any animal fiber … William Holmes, sales promotion expert, has the key to pull your business away from the red: dramatize every sale. For Holmes, one market that cleaners could look to would be offering upholstery and rug cleaning, which affords cleaners a chance to truly dramatize and sell their service. “Each job should be a demonstration,” says Holmes, who also encourages cleaners to not only explain each step of the cleaning process to customers but also dress the part while performing work. O

March 1938

— Compiled by Carlo Calma

Chewing Gum Conundrum

10 YEARS AGO. American Drycleaner isn’t the only one celebrating its 70th birthday this April, as Resillo Press Pad Co. is also celebrating this significant milestone of manufacturing press pads for the fabricare industry for 70 years. Founded by Morris Rosenthal during the Depression, the steel wool press pads were first constructed at his family’s Sheridan Laundry. After discovering the success his product had at neighboring laundries, he then formed Resillo in 1933. By 1948, the company had formed a nationwide clientele, triggering its 1956 move to the 30,000-square-foot Lincolnwood, Ill., facility the company still calls home to this day … As Resillo celebrates this milestone, dry cleaning machinery manufacturer Satec is set to celebrate one of its own as the Rheinbreitbach, Germany-based company has acquired fellow German manufacturer Seco. While both product lines will be marketed separately, Satec will hold responsibility for both brands.

25 YEARS AGO. Though Town & Country Cleaners of Huntsville, Texas, shares the grand prize in this magazine’s 27th Annual Plant Design Awards with Washington state’s Simon’s & Son Fine Drycleaning, it was more than open to giving American Drycleaner a tour of its winning

facility. The 9,240-square-foot plant features a bright, free-flowing design, which allows the company to hit a peak week of $20,000 in business. In addition to providing a drive-thru service, Town & Country also offers services such as fur storage and cleaning, and is even called on by customers to assist in wedding planning: it offers tuxedo rental and bridal gown heirlooming … Those in the industry need no longer worry if they’re at the right trade show, as The World Educational Congress for Laundering and Drycleaning, or Clean Show as it’s commonly known, is now protected by a registered trademark. This means that no other product, company or trade show can be called “Clean” unless it pertains to the event … Through its participation in National Consumers Week, the International Fabricare Institute (IFI) has been awarded with a certificate of appreciation by the U.S. Office of Consumer Affairs. Charles Riggott, executive vice president and general manager of IFI, accepted the certificate. The organization promoted National Consumers Week in its Fabricare News by encouraging 12,000 members to offer promotions and open-house programs to customers as a sign of appreciation for their patronage.

NO BLOWER OR ELECTRICAL COST FOR FAN

NO POST PURGE OR PRE-PURGE

NON PROPRIETARY

REPAIRABLE