American Drycleaner - Nov/Dec 2013

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(Photo: firstVIEW)

“Business has never been better.”

Since 2003, CBS has given me consistent updates and easy to understand tech support, all at a price that our industry can afford. I would recommend CBS, and I have, to anyone who is still wasting their time and money on those over priced POS systems. DanLoesher SunshineCleaners

Pre-ins P ection

Fashion v. Fabricare

Sultry fall looks from the fashion runways emphasized a brazen sexuality, reports Ian Murphy, and artfully deconstructed looks made many garments seem as if they were already half off.

But the 2013 styles aren’t all indiscretion, he adds, with many designers borrowing silhouettes from post-war boom times.

• “The New Look,” including cropped jackets, defined waists, and voluminous skirts that fall just below the knee.

• “Riot Girl,” revisiting the ’90s grunge look—dark sheers, baby-doll dresses, lumberjack plaid overshirts— but adding pearls to the punk, plus lay ers of distressed, deconstructed duds.

• “Flower Power,” a riot of vibrant teals, oranges and reds in all-over floral prints, highlighted by sprays of decorative fabric flowers.

Bruce Beggs

Even when tailoring is traditional, the materials and decorations used could challenge your drycleaning skills. Be on the lookout for garments featuring these styles:

Publisher

Charles Thompson 312-361-1680 cthompson@american trademagazines.com

Editorial Director Bruce Beggs 312-361-1683 bbeggs@american trademagazines.com

Production Manager

Roger Napiwocki

National Sales Director

Donald Feinstein 312-361-1682 dfeinstein@american trademagazines.com

Digital Media Director

Nathan Frerichs 312-361-1681 nfrerichs@american trademagazines.com Main: 312-361-1700 Fax: 312-361-1685

• “The Sleepover,” including a pro fusion of “pajama” ensembles meant to be worn on a night out—not in. Read Ian’s complete report starting on page 10. 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.

POSTMASTER, Send changes of address and form 3579 to American Drycleaner, Subscription Dept., 440 Quadrangle Drive, Suite E, Bolingbrook, IL 60440 Volume 80, number 8. Editorial, executive and advertising of fices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher. American Drycleaner is distributed selectively to: qualified dry cleaning plants and distributors in the United States. No material appearing in American Drycleaner may be reprinted without written permission. The pub lisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2013. Printed in U.S.A.

American Drycleaner, November/December 2013 www.americandrycleaner.com

Survey: Dry Cleaners confident in ability to provide good service

Dry cleaners polled by American Drycleaner feel confident about the service they provide, with 62.7% saying their overall service quality is “much better” than that of their competitors, according to the results of October’s unscientific Your Views survey.

Some 28% say their quality is “somewhat better,” 5.1% say it is “slightly better,” and 4.2% say their service quality is “about the same” as that of their competitors.

No one who took the survey regarded their service quality as being “slightly worse,” “somewhat worse” or “much worse.”

Regarding how professional they believe their service to be, more than half of dry cleaners polled (54.2%) say their business is “very professional.” Approximately 28% called their operation “extremely professional” and another 18.3% say theirs is “moderately professional.” No one who took the survey described their drycleaning business as “slightly professional” or “not at all professional.”

The majority of dry cleaners also feel that their business is “very convenient” for customers (46.7%), while close to 41% of respondents say that they are “extremely convenient.”

ers say that their prices are about the same as their competitors (29.1%), while 19.7% say they are “somewhat more reasonable,” 9.4% see them TALK OF THE TRADE ▲

as “much more reasonable,” and 8.5% de scribe them as “slightly more reasonable.”

Others say that they charge more: 15.4% are “slightly less reasonable,” 12% are “somewhat less reasonable,” and 6% are “much less reasonable.”

Regarding the performance of their em ployees, the majority of dry cleaners polled (44.2%) are “moderately satisfied” (44.2%). Approximately 28% are “extremely satis fied,” and 11.7% are “slightly satisfied.”

Only small percentages say they are “slightly dissatisfied” (7.5%) or “moder ately dissatisfied” (2.5%) with their staff.

While some operators say that employee education and training is essential in im proving business, some believe that a “bet ter pool of workers” is what is needed.

Other operators say that upgrading equip ment is what they need to improve business, while others believe that knowing the true value of their service is key. “Lack of costs and pricing strategies cause uneducated own ers to charge less than the products cost to produce,” says one operator. “This business can’t survive as a ‘lowest cost provider com petition.’ Our industry has to adopt a qual ity and service model to increase prices to a level we can be profitable.”

“Too many dry cleaners think they have to lower their prices to drive revenue,” says another. “This is both counterintuitive and foolhardy. You need to charge a fair price for the service you offer.”

While American Drycleaner’s Your Views survey presents a snapshot of the trade audience’s viewpoints at a particular moment, it should not be considered scien tific. Subscribers to American Drycleaner e-mails are invited each month to partici pate in a brief industry survey they can complete anonymously. O

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

TOp News sTOries

1. Tide Dry Cleaners Opens Doors to New Midwestern Locations

2. Dec. 1 First Compliance Date for New Hazard Communication Training

3. America’s Best Cleaners Suits Up for ‘Fashion-Focused’ Affiliate Meeting 4. In Memoriam: Melvin ‘Mel’ Shapiro, Al Phillips The Cleaner

5. All by Design: 53rd Annual Plant Design Awards Call for Entries

TOp cOlumNs & feATures

1. Spotting Tips: ‘Old School’ Stresses Pampering Customers 2. How to Make Your Drycleaning Stores More Profitable 3. On-The-Job Attitude is Everything 4. Alternative Solvents: Which is Best for You?

TOp sTOries @ Our sisTer siTes

AmericancoinOp.com: 1. Important Healthcare Insurance Notification Deadline Coming...

Cautious, Customer-Friendly Collections

Building Coin-Op Success on Key Demographics

AmericanlaundryNews.com: 1. HLAC Calls for Board of Directors Nominations

Important Healthcare Insurance Notification Deadline Coming... 3. Linen Loss: Gone Before Their Time

Photos: firstVIEW

Drycleaning Experts Offer Advice on Handling New Fall Fashions

By Ian P. Murphy

The runways in the fashion capitals of Milan, New York and Paris simmered with sultry looks for the fall season this year, emphasizing a brazen sexuality that translates from the boardroom to the bedroom. Artfully deconstructed looks made many garments seem as if they were already halfway off, while pajama ensembles and a hotel-room set helped at least one collection look like it was advertising an illicit tryst and the ensuing walk of shame.

But the 2013 styles aren’t all indiscretion; many designers borrowed silhouettes from postwar boom times, when everyone dressed for dinner. The season’s fuller skirts feature hemlines that hit below the knee to leave something to the imagination, and big, boxy plaids protect against the winter chill.

Even when the tailoring is traditional, though, the materials and decorations used could challenge dry cleaners’ skills. Not every plant will see a neoprene evening gown or an ostrich-feather skirt, for example, but many of the year’s styles may present problems in processing.

The following are four fall fashion trends that dry cleaners will see in the months ahead, and expert advice on handling them.

ABOUT THE EXPERTS

• Chris Allsbrooks is director of training operations for ZIPS Dry Cleaners, a Greenbelt, Md.-based chain of more than 30 stores, and former garment analyst for the Drycleaning & Laundry Institute (DLI).

• Joe Hallak Jr. is vice president of Hallak Cleaners, New York, N.Y. His company’s Hackensack, N.J., production facility won Grand Prize in American Drycleaner’s 50th Annual Plant Design Awards.

• Alan Spielvogel is garment analyst for the National Cleaners Association (NCA) in New York, N.Y.

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An elegant ensemble from Rochas recalls Dior’s midcentury styles.

The New Look

With a nod to Christian Dior’s definitive mid-century style, fashion’s “new” New Look adopts the couturier’s elegant, feminine silhouette of cropped jackets, defined waists and voluminous skirts that fall just below the knee.

“The thing we have to watch out for here is the construc tion,” says Alan Spielvogel, garment analyst for the National Cleaners Association (NCA). “There are probably going to be heavy structural interfacings and fusibles inside the garment” that excess moisture and mechanical action can damage.

Finishing issues will be the chief concern—and particularly if pleats are used to build skirt volume.

“You can’t give them to a presser who’s going to bang and hang,” says Joe Hallak Jr., vice president of New York-based Hallak Cleaners. “When you get a skirt that’s two or three times the size of a regular skirt, you can’t treat it like a basic A-line. These items need to go to your best finisher, and you have to charge accordingly.”

Pleat straps can help, says Chris Allsbrooks, director of training operations for ZIPS Cleaners and a former garment analyst with the Drycleaning & Laundry Institute (DLI). But the season’s scalloped, bling-encrusted peplums are making cer tain dresses “more of an art piece than a wearable garment,” she says. “Peplums can be hand-ironed separately.” ▼

Fashion Vs. F abricare Look

Riot Girl

Just 20 years removed, the ’90s grunge look is back for women, with dark sheers, baby-doll dresses, and lumberjack plaid overshirts. This time around, however, the aesthetic adds pearls to the punk, and features layer after layer of distressed and deconstructed duds.

“Often, the layers on the grunge look aren’t pressed flat,” Hallak says. “Make note of what the look [is]. If you give it a constructed look, you’re basically taking the look out of it, and that’s not what they paid for.”

A gentle wet cleaning may be the best option, but regardless of the process, always clean sheers and items with exposed seams in a net bag.

On deconstructed garments with unfinished edges, agitation can make the edge fray more, Allsbrooks says. “On a grunge look, it’s a good thing, but eventually the edge may pull out from the seam—and then you have a garment that’s falling apart.”

And when grunge garments add elegant embellishments such as pearls, jewels or sequins to smarten up a streetwise look, “clip one off and test, test, test,” Hallak says.

“We have to make sure that pearls don’t dissolve in solvent, and that they’re not glued onto the fabric [and] going to come off in cleaning,” Spielvogel says.

▼

Saint Laurent’s Paris show brought added glitz to the grunge.

Photo: firstVIEW

Photo: firstVIEW

British designer Christopher Kane offered up a bouquet of sheer floral constructions.

Flower Power

This year’s runway collections offered a riot of vibrant teals, oranges and reds in all-over floral prints. And to bring more three-dimensional pop to the prints, many designers added sprays of decorative fabric flowers, making bouquets out of their runway-model beauties.

Color changes, bleeds and fading are common on such vivid prints in spotting and cleaning, and “the printing is only as good as the binding agent,” Spielvogel says. “If it is a multiplepiece garment, all pieces must be cleaned together. Even with a little fading, the item is not going to match the other pieces.”

Whatever the solvent, control cycle times and heat in clean ing and reclamation.

“Whenever you have anything like this that you’re wor ried about, spend a little more time on spotting and use the drycleaning wheel for a quick rinse,” Hallak advises. “Moisture makes these colors run.”

If a garment is festooned with fabric flowers, figure out how they are constructed and attached—they may contain wire to help maintain their shape; some will be sewn on, and others will be glued.

“Clean the garments in a net bag to minimize agitation,” Allsbrooks says.

“If you can take them off, take them off,” Hallak adds. “Even if they are sewn on, cleaning will crush the hell out of them.”

(Page 20) ▼

m ANAGE m ENT STRATEGIES

Fashionistas m ean Business

Fashionistas pay attention to the latest from the runway shows, and it is necessary for dry cleaners to pay attention as well. It’s about how you take care of those designer fashions and keep their owners happy with the care you provide for their prized clothing. Who do you see sitting in runway audiences from New York to Paris and from Colorado to Missouri? Is it the most frequent drycleaning clientele or is it the occasional “funeral and wed ding” customer? You’ll see the drycleaning regulars who are the most fashion-focused, who spend freely on their wardrobes, and who want those beloved garments pro fessionally maintained with maximum tender, loving care.

UNIVERSAL APPLICATION. Whatever the geographical market or population size of your city, the highest-volume dry cleaning clients are the local “fashioni stas.” In a large city, that might mean they wear Chanel, Zenga and Karl Lagerfeld. In most markets, they wear much more moderately priced ready-towear that usually includes a mid-range Ralph Lauren line, and Ellen Tracy to Jones New York. In a small town, it might mean St. John’s Bay, depending

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

on the accessibility of fashion outlets.

Any of these markets could include cutting-edge, eclectic thrift-store finds worn with flair. But either way, they are the fashion-conscious individuals in the community.

If you already serve this group, you understand their motivations and re quirements and their value to your busi ness, so you probably want to attract more of them. If you don’t currently enjoy the patronage of these fashion leaders, then you might want to con sider ways to appeal to them.

LABEL TRACKING. A basic starting point for reaching these influencers is to first track the clothing labels on their orders to see which designers your best cus tomers like to wear. In most cases, the most popular labels will not be couture or even designer, and that is fine. The point is to identify the favorites of your best customers.

Most point-of-sale computer sys tems provide a way to track this infor mation, and it is surprising how few cleaners use this internal resource. It is powerful marketing, communications and sales information that can be used to reach these select few in a true oneto-one marketing effort.

The first step of this process is to isolate the top 20% of your customers by sales volume. To fully appreciate this group, also calculate what percent

Diana Vollmer

age of your total business they provide. This analysis should help you put the chal lenges of their requirements into the proper perspective.

Seeing them in the profit light is im portant because, although most customers are nice and friendly, quite often these high-volume customers have special re quirements that make the customer service representatives reluctant to wait on them. They are clear in their specific wishes and desires. One memorable experience was to witness the counter staffers draw straws to see who (aka the “loser”) had to wait on a specific “Top 5” customer.

You might find it beneficial to examine your security camera archives to review some of these interactions and determine if they are handled to the highest standards. If you can achieve the elevated standards required to please these discriminating cus tomers, they will happily pay you exceed ingly well to do so, and they will tell their friends about your superior service.

RETAILER IDENTIFICATION. Once you have a hierarchy of labels by volume, you can search the retailers that sell these designer fashions to your customers.

This step is easier if you are in a large urban area, because your customers are like ly shopping close to home for the majority of their wardrobes. It is more challenging in a market that is not close to a wide variety of clothing stores, but it is easy to ask cus tomers where they shop when admiring the clothing they bring in for your care. They will react more favorably to admiration than to a discussion about the weather. They ap preciate that you recognize their taste, the value of their clothing, the fine fabrics, and the artistic design.

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JOINT VENTURES. Your best joint-venture partner prospects to reach this group may well be the local specialty stores and bou tiques. By partnering with them on projects and events, you receive the benefit of their implied third-party endorsement, which is much stronger than any marketing that touts your store’s strengths.

Fashionistas pay attention to the latest from the runway shows, and it is necessary for dry cleaners to pay attention as well.

They also have the resources to stage events that will attract the fashion-conscious clientele in your market. Some of these resources include fashion videos; garments and models for fashion shows; samples for trunk shows; attractive venues for events; access to wholesale gifts and prizes; profes sional display personnel; fashion directors; and personal shoppers for personalized previews.

You have resources that are valuable to them, the most important of which is your controlled access to your customers who love and buy fashionable clothing. You also have the skills to save the sale when a garment has been soiled, damaged or needs alteration.

There are infinite ways for you and these preferred retailers to cater to mutually desirable customers. Some successful ap proaches have included co-sponsoring and co-producing:

• Private designer viewings by invitation only.

• Fashion shows in local venues for various charity benefits.

• Trunk shows for custom clothing.

• A day of entertainment and

The Sleepover

boyfriend looks are everywhere this year, from Wall Streetstyle, double-breasted jackets worn as dresses to a profusion of posh “pajama” ensembles meant to be worn on a night out—not in. While the tailoring is traditional, the fabrics may go a step further for extra style.

“Glamorous pajama ensembles may be made from satin fabrics,” Allsbrooks says, and snag easily in routine wear with jewelry and other accessories. “Inspect them as they come in for pre-existing snags. To minimize additional snagging, gar ments should be placed in a net bag, and stain removal should be done from the reverse side of the fabric.”

As with the floral styles, bright colors and all-over prints may present a problem.

“There might be issues with colors bleeding out,” Spielvogel says, and alcohol in topical medications and hand sanitizers can pull color.

“It’s a different look, but these are basic fabrics,” Hallak says. “They shouldn’t require special care unless they have bright colors. The bottom line is, is it a surface print or throughand-through?”

Any unusual garment will take extra time and patience, he adds. “[If] it is not a basic garment, don’t handle it like a basic garment. You can’t rush these pieces, but you can keep your life from being miserable.” O

Ian P. Murphy is a freelance writer based in Chicago and was the editor of American Drycleaner in 1999-2011.

Photo: firstVIEW

Marc Jacobs’ fall collection for Louis Vuitton was an overnight sensation.

Fashionistas...

Continued from page 19

fashion at a well-known store hosted by the personal shopping staff.

• Clothing selection and packing techniques for the ideal vacation.

• Business fashion shows for the local businesswomen’s conference.

• A Gatsby day at the local club.

• A “Dress for Casual Success” coach ing session.

• An “Update Your Favorite Outfit with Accessories” event.

• Fashion previews and training for your staff (and you can educate their staff on clothing care).

Another joint-venture partner might be the local fashion institute that can cosponsor a design contest and student fashion show.

Given the popularity of the television show Project Runway, you might sponsor a local fashion illustration contest, display the entrants in your stores and on your website, and have your customers (and prospects) vote on the winners.

The list of leading fashion lifestyle part ners is endless when you add bags, shoes, luggage, cars, electronics (think of the range of fashion covers for phones), home decor, and more. All of these providers are trying to reach the same customers you are, so leverage each other to produce events that will dazzle your customers and prospects.

Allowing your loyal customers to in teract with your prospect customers at an event is a powerful marketing tool and an excellent opportunity for spontaneous per sonal testimonials in an informal setting.

The list of possibilities for these opportunities is only limited by your

imagination, so let it run wild.

GIFTS WITH PURCHASE. A simple way to begin your relationship with retailers is the proven approach of offering a complimen tary first cleaning for a newly purchased garment.

Customizing and presenting it as “a gift from John’s Custom Clothing and Classic Cleaners” is a welcome sight from the cus tomer’s perspective and provides a mutual endorsement that works for both dry cleaner and merchant.

You can begin to ingratiate yourself with other fashion lifestyle partners in simi lar ways. For example, provide the owner of the hottest restaurant with your business cards to give to customers who suffer spills during drinks or dinner. Even if you charge the restaurant for the cleaning work, it still provides an instant solution for a messy situation with the restaurant patron.

USE YOUR BUSINESS INTELLIGENCE. You already know a tremendous amount about the lifestyles of your fashion leader clients, and much of what you don’t know can be discovered or inferred. Use your close relationship with these fashionistas to create exciting opportunities for unique memorable experiences that will impress and entertain them. By co-sponsoring these events with like-minded partners, the cost is minimized and the impact is multiplied exponentially. O

Diana Vollmer is managing director at Methods for Management (MFM) Inc., which has served the drycleaning and laundry industries with af fordable management expertise for improved profitability since 1953. For assistance with your fashionista clientele, or retailer or joint-venture part ner development program, Vollmer can be reached at dvollmer@mfmi.com, 415-577-6544.

American Drycleaner, November/December 2013 www.americandrycleaner.com

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

Jan. 16-19, 2014 Drycleaning & Laundry Institute and National Cleaners Association Five-Star Brainstorming winter conference. To be held in Cancun, Mexico. Call 800-6382627 (DLI) or 800-888-1622 (NCA).

April 25-27, 2014 Southwest Drycleaners Association Cleaners Showcase Trade Show. To be held in Fort Worth, Texas. Call 512873-8195.

April 30-May 3, 2014 Textile Care Allied Trades Association Annual Management and Educational Conference. To be held in Naples, Fla. Call 973-244-1790 to learn more.

June 20-22, 2014 South Eastern Fabricare

Association Southern Drycleaners and Launderers Show. To be held in Jacksonville, Fla. Call 877-707-7332.

August 22-24, 2014 California Cleaners Association Fabricare 2014 trade show and convention. To be held in Long Beach, Calif. Call 916-239-4070.

Oct. 3-6, 2014 EXPOdetergo International. To be held in Milan, Italy. Visit www.expo detergo.com.

Oct. 18-19, 2014 Pennsylvania and Delaware Cleaners Association Drycleaning & Laundry EXPO. To be held in Atlantic City, N.J. Call 215-830-8495. O

Post your organization’s events on www. americandrycleaner.com; click “Calendar.”

THE NUMBERS

BUREAU OF LABOR STATISTICS data released toward the end of September shows that the national jobless rate in August was about the same as July’s, 7.3%. The report listed 18 states and the District of Columbia with higher unemployment rates. Seventeen states saw their jobless rates decline, and 15 states remained static.

THE INSTITUTE FOR SUPPLY MANAGEMENT reported a decline in the Non-Manufacturing Business Activity Index for September, which, according to ISM, indicates that growth had slowed from August.

The fall to 55.1% (down 7.1 percentage points) reflects growth but at a much slower rate than previously indicated. Respondents to the ISM survey continue to be positive, but are uncertain as to the future of the country’s economy, the Institute says.

MORTGAGE APPLICATIONS were down for the last week of September, according to the Mortgage

Bankers Association’s weekly survey. Refinancing activity increased to 63% of the total number of applications, the highest level since August. The average interest rate for a 30-year, fixed-rate mortgage was down to 4.49%, the lowest rate since June.

New foreclosures were down 2% in August as compared to July.

Pending home sales slowed in August, according to the National Association of Realtors, with tighter inventory, higher interest rates, rising prices and continued restrictions on credit seen as major factors.

The Association’s Pending Homes Sales Index, which focuses on contracts not closings, was down to 107.7 in August, compared to 109.4 in July.

CONSUMER CONFIDENCE FELL in September, according to the Surveys of Consumers by Thomson Reuters and the University of Michigan. American consumers see slow economic growth with fewer job opportunities and lower per-

sonal financial projections. Consumer complaints about economic policies were on the rise, and negative references to government policies were two times as high as they were only three months ago. Net income was down for most households, and half of those surveyed anticipated no increase in the year ahead.

On Sept. 27, before the U.S. government shut down for 16 days, Richard Curtin, Surveys of Consumers chief economist, had this to say:

“Although consumers have come to expect the Congressional theater that is now playing, they don’t expect the President and Congress to be careless enough to allow a government shutdown. … If consumers come to believe a shutdown is probable, it may generate a precautionary response that would significantly slow spending and overall economic growth. … Consumer confidence is fragile enough without this added source of economic uncertainty.” O —Jean Teller

Spotting t ip S

Salvage After the Storm

It has been 24 years but seems like only yesterday. Hurricane Hugo rushed ashore near Charleston, S.C., still packing hurricane-force winds when it reached my home just outside of Charlotte, N.C.

Names like Sandy, Katrina and Andrew bring to mind pictures of destruction. Someone has to clean up the mess. Someone has to salvage the good things that are left behind after the storm. Cleaning items of value, both monetary and sentimental, can be a great opportunity for a garment care specialist.

Storm damage can manifest itself in many ways. High humidity or contact with water can lead to dye migration. Water-soluble dye can move out, away from its original location, to surrounding areas. The dye may transfer to other items through contact.

Colored paper may give up that dye when wet and in contact with a garment. The dye will wick on to damp fabric. Water from the storm may contain foreign matter, such as mud, tree bark, rosin or oil. All these stains will require attention from the cleaner before they are ready to be cleaned.

When garments are allowed to remain damp, in close contact, and warm, the environment is ideal for the

formation of mildew.

Mildew is a plant, so the less time it is allowed to grow and extend roots into the fabric, the easier it is to remove. The more time that passes before treatment, the deeper the roots, requiring a greater amount of time and effort to remove the stains. Even with additional time and effort, it will probably be necessary to use one or more of the available bleaches to finish the job of stain removal.

Mildew will appear as a patch of color, ranging from black to orange. Left for an extended period of time, mildew will begin to break down the tensile strength of the fabric. Mildew also has a unique, identifiable odor.

It is best to spend time pre-treating water-stained garments. They are not damaged until the efforts of the garment care professional have failed.

Even though it is time-consuming, water circles can be quickly reduced or eliminated at the spotting board with NSD and steam. Working over the vacuum nose of the board, flush the area with steam, apply NSD, wait 10-15 seconds (no mechanical action), then flush again with steam. Slowly work around the circle until it is completely gone.

Any mud not removed by the lubrication of the NSD can be removed by mild bleaching. Greases and oils can

Martin Young

be dealt with using a wet-side POG or a citrus oil degreaser.

Fugitive dye migration and contact dye transfer will usually require the use of a reducing bleach/dye stripper.

For added safety, dye strippers can be applied with a cotton swab or even a wooden toothpick. Using a toothpick allows you to work in close to contrasting seams and embroidery with a relatively high degree of safety, by applying only the small amount of bleach absorbed by the wood to the sharp point of the toothpick.

Mildew should be brushed (outside, in open air) with a stiff brush to remove as many of the mold spores as possible. The best drycleaning solvent for treating mildew, I believe, is perchloroethylene; there is a drastic fall-off in effectiveness on mildew with the alternative solvents.

On garments with relatively “young” mildew, wet cleaning can be effective. But wet cleaning in its true form—strict pH control, use of tepid water, and drastically limited mechanical action—has an extremely limited effect on older stains.

It is important to separate mildewstained garments by fiber content before using any bleaching protocol to remove the mildew. Protein fibers such as wool, silk, cashmere, angora, etc., should be separated first, even before color and weight.

The most effective method for removing mildew involves using sodium hypochlorite, or chlorine bleach. (Always test on an unexposed area, before using any form of bleach.)

Put 4 oz. of cold water in a spotting bottle and add four drops of sodium hypochlorite, then use a cotton swab to apply the mixture to the mildew stain. If results are unsatisfactory, you can heat the area

with steam and add a few more drops of sodium hypochlorite. Use this method only on whites and light pastels, and only after testing.

For large quantities of whites, you can make up a bleach bath using 1 oz. sodium hypochlorite to 4 gal. tepid water, mixed with 4 oz. NSD. Soak for about 10 minutes. Increasing the amount of bleach and raising the water temperature will increase the bleaching action, but this also increases the risk to fabric and reduces the intensity of any colored dyes.

Always thoroughly rinse garments that have been exposed to bleach to eliminate fabric degradation. For white garments, rinse in sodium bisulfite or sodium hydrosulfite to neutralize the chlorine and to enhance the whiteness of the garments.

Never use chlorine bleach on protein fabric, as doing so will cause a chemical burn that cannot be reversed or camouflaged. If you are experienced and careful, you may use potassium permanganate applied with a cotton swab on white protein. This bleach is extremely strong, leaves a brown residue that must be neutralized with oxalic acid, and is unsafe for any fabric that contains color. You may attempt to remove mildew from colored protein fabric using hydrogen peroxide; start at a 3% concentration and slowly increase it. Unfortunately, the stain that is caused by mildew continues to spread with time. The sooner action is taken, the more likely the results will be positive. 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.

Small Business Health Care Tax Credit: Who’s Eligible?

By Mark E. Battersby

Survey after survey reveals that health insurance is among the top fringe benefits sought by employees. For many drycleaning businesses, offering health insurance is critical to attracting the type of workers needed to succeed. Fortunately, whether the business presently offers health insurance or is merely considering offering it, there is a sliver of silver lining in the form of a unique, oftenoverlooked tax credit for small employers.

The Internal Revenue Service (IRS) is encouraging small businesses to explore and, if qualified, claim a unique health insurance coverage tax credit. Statistics from 2011 reveal that two out of five busi-

nesses in the nation will qualify for these tax credits. This could affect 19.3 million employees and possibly provide $15.4 billion in tax credits to small businesses.

In fact, many small businesses with 25 or fewer employees are already taking advantage of this new tax credit.

THE SMALL-EMPLOYER CREDIT. A drycleaning plant or laundry business that provides healthcare coverage is eligible for the Small Business Health Care Tax Credit if, for the tax year, they have 25 or fewer fulltime equivalent (FTE) employees who are paid an average annual salary of less than $50,000. The tax credits are higher the lower the average salary and the fewer

(Photo: © iStockphoto/Maudib)

Changes in healthcare provide small-business owners chance to take advantage of tax credits

FTEs with the drycleaning business. The maximum credit is 35% this year and rises to 50% of the annual premium paid for 2014 and thereafter.

To qualify for tax credits, the employer also must contribute at least 50% toward the employee’s premium cost. Owners’ sala ries and owners’ families’ salaries are not counted in determining the average salary.

While any business meeting the above standards is eligible to receive a tax credit of up to 35%, the Small Business Health Care Tax Credit actually works on a sliding scale and is specifically targeted for those businesses with low- and moderateincome workers. Bottom line, the tax credit is highest for drycleaning businesses that have fewer than 10 employees who are paid an average of $25,000 or less. In other words, the smaller the business, the bigger the credit.

NEW IRS RULES. The IRS recently proposed guidelines for the small-employer tax credit created by the Affordable Care Act. Among other things, the guidelines address eligibility requirements for employers to claim the credit, provide guidance on how to calculate and claim the credit, and explain the effect on estimated tax, alternative minimum tax and, of course, tax deductions.

Under the guidelines, to take advantage of this tax credit, small-business owners must have in place a contribution arrange ment through which the business can make a non-elective contribution on behalf of each employee who enrolls in a qualified health plan (QHP) offered by the employer.

The contribution amount must be at least 50% of the QHP’s premium cost. In addition, the average annual wages of the

employer’s FTEs cannot currently exceed $50,000. Through 2013, the maximum credit is 35% of premiums paid by smallbusiness employers. For tax years beginning in 2014 or later, the maximum credit will increase to 50% of premiums paid by drycleaning businesses/employers.

And, as mentioned, the IRS has said certain higher-income individuals, specifically sole proprietors, partners in partnerships, or shareholders owning more than 2% of the stock in an S corporation, and any owners of more than 5% of other businesses, do not have to be counted as employees when calculating the average wage. Although the tax law does not specifically refer to spouses, the IRS says that spouses are nevertheless excluded from the definition of “employee” for those purposes.

The IRS’ proposed guidelines also contain transition rules if an eligible small employer’s plan year begins on a date other than the first day of its taxable year. Since about 30% of employers in the small group market don’t have plans that run on a calendar year, the new rules mean premiums paid by the drycleaning business under an old plan as well as what the business is paying when it switches to the exchange will be eligible for the tax credit.

What’s more, all qualifying drycleaning and laundry businesses are eligible to buy health insurance on a special exchange known as Small Business Health Options Program (SHOP).

MARKETPLACES, EXCHANGES, AND SHOP. One of the key features of the Affordable Care Act is the creation of Health Insurance Exchanges, or Marketplaces, for the sale of health insurance. For employers with

fewer than 50 employees, private exchanges will compete with the public Small Business Health Option Program (SHOP) exchanges each state is required to have.

Small employers that want to make health insurance coverage available to their employees can choose to offer those employees coverage from the SHOP. Should a small employer decide to offer this type of coverage, it has the ability to select which plans to make available to its employees — and it is not required to offer all coverages sold through the SHOP to its employees. However, if a small employer determines that SHOP plans will be made available to its employees, then all full-time employees must be offered this coverage.

The ugly truth is that one in four small-business owners in the United States are uninsured.

Small Employer Health Insurance Premiums. However, employers that took the credit before 2014 can take the credit for two more years in 2014 and later.

PAPERWORK. Not too surprisingly, employers providing healthcare benefits also face administrative reporting requirements under the ACA. In general, the drycleaning business must use IRS Form 8941 to calculate the credit. Most small businesses will include the amount as part of the general business credit on their annual income tax return. Plus, as a small-business employer, the drycleaning business may be able to carry the credit back or forward.

THE CHANGES ARE COMING. Every drycleaning plant, business owner and manager will see a number of important changes to the tax credit for tax years beginning in 2014. As mentioned, the credit amount increases to 50% of premiums paid by eligible small employers. Cost-of-living adjustments are made to the average annual wage phaseout amounts. (The credit is phased out gradually when average annual wages exceed certain amounts.)

Another difference involves the twoyear limit on taking the credit. Before 2014, there was no time limit on taking the credit, so employers that qualified could have taken it in 2010, 2011, 2012 and 2013. Beginning in 2014, there is a twoyear limit, which begins with the first year the employer files Form 8941, Credit for

According to the Government Accountability Office, Congress’ investigative arm, fewer small employers claimed the Small Business Health Care Tax Credit in tax year 2010 than were estimated to be eligible. While 170,300 small employers claimed it, estimates of the eligible pool by government agencies and small-business advocacy groups ranged from 1.4 million to 4 million. The cost of credits claimed was $468 million.

Among the factors reportedly limiting the credit’s use is that most small employers, 83% by one estimate, do not offer health insurance. According to many experts, the credit is not large enough to give employers an incentive to offer insurance. Complex rules on FTEs and average wages also are apparently limiting use. In addition, tax preparer groups the GAO met with generally said the time needed to

American Drycleaner, November/December 2013 www.americandrycleaner.com

calculate the credit deterred claims.

As the tax filing deadline approaches for many small drycleaning and laundry businesses, owners and managers look for ways to reduce the operation’s tax bills. Although the ACA does not require that a business provide health insurance, it does offer tax credits for eligible small businesses that choose to provide insurance to their employees for the first time, or maintain the coverage they already have.

The ugly truth is that one in four smallbusiness owners in the United States are uninsured. Thanks to the ACA, they can now afford their own health insurance. In fact, the ACA will allow 83% of currently uninsured small-business owners to become eligible for healthcare coverage. Additionally, many small-business owners who currently buy their own individual

Go

healthcare coverage in the private market may be eligible to take advantage of new cost savings as well.

Finally, for a drycleaning business eligible for the tax credit for the 2013 tax year, but that forgot to claim it on the annual tax return, there’s still time to file an amended return.

In order to fully understand all of the pros and cons of the Small Business Health Care Tax Credit, seeking out professional assistance is strongly recommended. O

Information in this article is provided for education al and reference purposes only. It is not intended to provide specific advice or individual recom mendations. Consult an attorney or tax adviser for advice regarding your particular situation.

Mark E. Battersby is a freelance writer specializing in finance and tax topics. He is based in Ardmore, Pa.

Does Your Portfolio Include CDs?

D

espite their puny interest rates these days, bank CDs are, or should be, a part of nearly every investor’s portfolio. With FDIC insurance, you’re sure to get all of your money back with interest — and it gets better if you know the rules.

CD INTEREST RATES ARE LOW, BUT ... With current inflation rates running less than 2%, putting some of your money in fed erally insured CDs is an important step in diversifying your portfolio despite the low CD rates.

But keep in mind that CD interest rates vary sharply from one bank to another, so it’s important to shop around before you buy. Go to www. bankrate.com/compare-rates. aspx to search for the highest available rates.

BEWARE OF THAT ENTICINGLY HIGH CD RATE. If you come across an offering of a CD rate that looks too good to be true, it probably is.

Some years ago, a major scam in volved investments in an Antigua-based bank that turned out to be promissory notes from the bank, not CDs as the investors expected. When the bank de faulted, it was discovered that it was part of a massive Ponzi scheme and fraud. Millions of investor dollars were lost. Stick with CDs issued by U.S. banks

that are members of the Federal Deposit Insurance Corporation (FDIC). Log on to www.fdic.gov to make sure the bank you’re dealing with is insured by the FDIC.

‘LADDER’ YOUR INVESTMENTS. As you probably know, cashing in a CD be fore it reaches maturity can be a costly mistake. Early-withdrawal penalties vary from one institution to another, but they are always painful. One way to help avoid that fiscal trap while pro tecting your portfolio is staggering the maturities of your CDs at intervals of six months or one year — a technique known as laddering.

Let’s say you have $25,000 to invest. Instead of investing all of it at the same time in one low-rate CD, you buy a one-year CD for $5,000, a two-year CD for $5,000 and continue until your last $5,000 buys a five-year CD. When the one-year CD on your ladder matures, you invest the proceeds in a new five-year CD. The original five-year CD now has four years left to maturity so you still have a five-year “ladder.”

This way, if interest rates rise, you can take advantage of the higher rate when your next CD matures and you have protected the liquidity of your investment by not locking in all of your money in a single CD.

Bill Lynott

UNDERSTAND THE RISKS IN MARKET-LINKED CDS. Sometimes known as indexed CDs or equity-linked CDs, market-linked CDs are a special type of CD with interest rates tied to a stock market index such as the Dow Jones Industrial Average (DJIA).

The idea is to combine the long-term growth potential of equity investments with the security of conventional CDs. You may not be familiar with this type of CD since relatively few banks offer them and they are not as common as conventional CDs.

This form of CD usually offers a higher rate of interest than conventional CDs over terms that can stretch out over many years, but it’s important to understand the risks involved. As with conventional CDs, you’ll get all of your money back when the CD matures, and you may benefit from a much higher yield in strong equity markets. How ever, falling markets could result in a 0% interest return.

In effect, investing in market-linked CDs is betting on a healthy stock market. If you have equity investments in your portfolio, as you should, you may want to ignore this type of investment.

YOUR BROKER CAN BE A BIG HELP. If you have an account with a brokerage firm, your broker can do most of the work for you by spreading your investment over several dif ferent FDIC-insured banks. This way, you’ll receive a single monthly statement covering all of your investments.

If you need your money before a CD matures, your broker can sell your CD in the secondary market, thus avoiding an earlywithdrawal penalty. Keep in mind, however, that the value of a CD on the secondary market will fluctuate with changes in the prevail ing interest rate. That means that you could

lose some of your principal if your broker sells a CD on the secondary market.

KEEP THE FDIC INSURANCE LIMIT IN MIND. Re gardless of how and when you invest in CDs, it’s important to make sure that you maintain the important advantage of knowing that your money is insured by the full faith and credit of the U.S government through the FDIC.

As a CD buyer, you can sleep better at night now that the federal government has permanently boosted bank deposit insurance to $250,000 per depositor, per bank. The limit was raised from $100,000 to the current level in October 2008, but the rise was origi nally set to revert back to $100,000 this Dec. 31. Passage of the Dodd-Frank Wall Street Reform and Consumer Protection Act made the higher amount permanent.

To make sure that you have not exceeded the FDIC insurance limits with multiple ac counts, use the Electronic Deposit Insurance Estimator at www.fdic.gov/edie. 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 in leading trade publications and newspapers, as well as consumer magazines including Reader’s Digest and Family Circle. Visit his website at www. blynott.com or e-mail blynott@comcast.net.

Disaster Recovery

By Phillip M. Perry

An industrial plant explodes in Texas. A tornado ravages Oklahoma. A hurricane floods the East Coast. Bombs shut down the city of Boston. Those recent disasters caused tremendous human suffering. All of them, too, brought devastation to businesses large and small. From damaged buildings to wrecked inventory to disrupted supply lines, natural and man-made disasters can tear a huge hole through profitability. In many cases, businesses close their doors for good.

PLAN FOR RECOVERY. What lessons can we learn from all this? Here’s one: Business owners must design and implement di-

saster recovery plans designed to mitigate harm when bad things happen. With that in mind, now would be a good time to revisit your own recovery plans with a fresh look. Are you taking the right actions to minimize damage if your dry cleaner is hit with a wind storm, a lightning strike, a flood or a power outage?

Your answer might well be “no.” Too often, the details of disaster planning get short-changed for pressing matters such as personnel or supplier issues. That’s a mistake. No matter how successful your drycleaning operations, everything you do can come to a halt if there’s no Plan B when Plan A gets derailed.

“A bad event can take down a company

(Photo: © iStockphoto/AndreyGatash)

A man cleans a store front in a Hoboken, N.J., shopping center flooded by Hurricane Sandy, October 2012.

forever,” says Jeffrey Williams, president of Binomial International, a disaster planning consultancy in Ogdensburg, N.Y. “That’s why it’s so dangerous for businesses to keep disaster planning on the back burner.”

In approaching a redesign of your own plan, experts counsel taking a broad view, incorporating as many “what-ifs” as possible.

T A k E Th IS D ISASTE r Qu I z

Score 10 points for each “yes” answer to these 10 questions. Then total to reveal your score.

• If you score between 80 and 100, you are in a safe zone.

• Results between 60 and 80 mean you need to dust off the emergency plan.

• Score less than 60? Take immedi ate steps to get your disaster plan up to speed. Have you. . .

1. Backed up your data regularly to an off-site location?

2. Identified a remote site for relocated quarters?

3. Arranged for an alternative Internet network?

4. Assigned key employees specific tasks in event of emergency?

5. Drawn up co-worker and client call lists and assigned to employees?

6. Detailed your list of emergency responders?

7. Selected vendors for emergency repairs?

8. Obtained property insurance for 100% of replacement cost?

9. Maintained regular inventory, having taken photos as appropriate?

10. Obtained business interruption, flood, and earthquake insurance, if appropriate?

American Drycleaner,

“There are three types of disasters,” says Williams. “The first is natural. Think weather. The second is technical, when equipment fails. The third is a human error, what people do to other people. That can be sabotage or a fire.”

Advice from Williams: plan for all three.

OFFSITE DATA. Suppose you were forced out of your building right now. Maybe you are the victim of a fire, flood or wind storm. How would you continue your business? The likeliest answer would be “with great difficulty,” unless you have taken measures to assure the maintenance of a certain level of customer service and sales.

“Businesses can take a number of steps to assist in getting through a crisis before the next disaster strikes,” says Chris Hackett, director of policy development in the research division of Property Casualty Insurers Association of America. Perhaps one of the most important, he says, is the determination of a temporary relocation site.

That temporary site might be the basement in your home, or a rented room in another city. Whatever the location, it must be one where you can access your critical files. That includes your accounts receivable so you know who owes you money. It also includes your customer lists to protect your future revenues. Keep a computer at this location with continually updated company data.

On the topic of alternatives, make sure you have a fallback Internet network into which you can plug your devices. And have a call-forwarding plan prepared that will route incoming calls.

Finally, put together an offsite list of ▲

www.americandrycleaner.com

emergency responders. These are people you’ll need to call to help solve the problems the disaster has caused. Include the following:

• Your attorney, accountant, and insurance agent.

• Any firms that can accomplish recovery tasks, such as removing water, cleaning, hauling trash, painting, repairing electrical/plumbing systems, replacing locks, and getting computer

equipment running.

• Real estate agencies that can help you set up a remote operational base while restorations continue.

The remote location is one thing: Having people who take the right actions is another. Identify the steps you’ll need to take when disaster strikes, then assign them to key personnel.

“Things will go much smoother if everyone knows what they ought to do in a

Flood Insurance Prem I ums

Why is flood insurance so expensive?

“Typically, the only people who buy flood insurance are those who expect a flood,” says Michael Sapourn, a Satellite Beach, Fla.-based attorney who has dealt extensively with flood damage insurance and litigation. “So, you don’t get the spread of risk necessary to keep premiums from escalating.”

As a result of that lack of spread of risk, private carriers generally don’t offer stan dard flood insurance. The federal govern ment, through FEMA, is the ultimate under writer for first-dollar flood insurance policies. “Because the federal government has taken major losses in this area in recent years, rates have been rising,” says Sapourn.

The U.S. government has set limits on how much it will write. For commer cial property, those limits are $500,000 per building and $250,000 on inventory.

(Coverage is half those limits for resi dences.) “However, you can get excess flood insurance through the private market, negotiating what limits and premiums you can,” notes Sapourn.

Bonus tip: Find a broker experienced in flood insurance.

“Any broker can sell the standard flood insurance policy through the National Flood Insurance Program,” says Sapourn. “While many brokers have licenses to write flood insurance, many might not write it very often. As a result, inexperienced brokers may misquote your flood insurance pre mium based on an incorrect reading of the FEMA flood insurance rate map.

“This may cause problems later when FEMA sends an adjusted invoice with a far higher premium. That is especially danger ous if you have planned your budget based on lower, incorrect premiums.”

Knowledge to your desktop

Our comprehensive, practical guide to textiles and problem garments—as well as everyday items— and how to handle them, from reception at the counter through spotting, cleaning and finishing.

GO TO

www.americandrycleaner.com/research-center

to check out these titles and more...

Going “green” is just another way to make money by giving people what they want, and this report offers simple strategies you can start using today to “green” your operation and build the bottom line.

This paper will help you better understand the fundamentals of marketing, what marketing messages you may already be sending about your business, and how to control those messages in order to promote your business.

This report examines the many factors that operators need to consider when designing a coin laundry, including equipment placement, customer preferences, maintenance concerns, and more.

It’s hard to ignore the impact that equipment has on a coin laundry business. This report touches on the equipment customers desire, current trends, efficiency concerns, pricing considerations, and what the future holds.

Topics featured in this paper include the efficient management of labor and production, equipment performance and utility conservation, purchasing and caring for textiles, and wash formulas and water quality.

crisis,” says Williams.

Assign the following tasks to some key individuals: 1) Calling employees and customers to let them know what has happened; 2) Notifying suppliers and insurance companies; 3) Arranging for repair work by plumbers, electricians, and restoration contractors.

REVIEW PROPERTY INSURANCE. Have you sufficient property insurance in place? What may be good one year may no longer be adequate several years later. So, revisit your policies with a trusted adviser.

“It’s always good to have a regular session with your agent every year or so to review what you have,” says Hackett.

A disaster can interrupt sales, and than means your expected revenue stream can dry up quickly.

The No. 1 insurance category is, of course, property insurance that covers fire.

“As it relates to fire, policies should insure your structure for 100% of its replacement costs,” says Hackett. Replacement cost is the amount necessary to rebuild your structure using construction materials of like kind and quality.

If you are thinking of adding an addition or making renovations that will substantially increase the amount necessary to repair or replace your property, you should inform your agent. If you have not done so, the settlement under the policy will be based on the replacement cost information the carrier had on file at the time of the loss.

Consider, too, your deductibles. “There are pros and cons to having

higher and lower deductibles,” Hackett points out. “Lower deductibles mean less money out of your own pocket after a covered loss but cost more in premiums. Higher deductibles mean lower premiums but more out-of-pocket costs when disaster strikes. You have to decide for yourself what you prefer. Ask yourself, if a loss happens tomorrow, would I be able to come up with the deductible or not?”

Insurance is great, but be prepared to prove your losses.

“It’s important to take inventory of the items in your business,” says Hackett. “Walk through your building with a camcorder and make a video. That will help expedite the settlement of your covered loss with the claims adjuster.” Store the video offsite in a safe or bank safe deposit box.

PROTECT YOUR REVENUE STREAM. A disaster can interrupt sales, and that means your expected revenue stream can dry up quickly. Think about buying protection.

“Business interruption insurance provides critical coverage for lost income— what your business would have earned but for the physical damage of a disaster,” says Hackett.

Purchasing interruption insurance requires thorough consultation with your agent. “It’s not as simple as an auto policy,” says Hackett. “The carrier will ask you questions about the nature of your business, your employees, your typical income in a month, and whether your business is seasonal in nature.”

You might also consider ‘extra expenses coverage,’ notes Hackett. “This insurance covers the higher expenses you might incur by moving to a new location, such as higher

American Drycleaner, November/December 2013 www.americandrycleaner.com

rents, and the costs of relocation.”

You can also get coverage for payroll expenses. “Just because your business is shut down, that doesn’t mean people will not expect a paycheck,” he says. “Paying them can be difficult if you are not taking in any income.” You can purchase such insurance just for the highest-paid employees or for your entire staff.

Two more things: “Contingent business interruption insurance” covers the lost income that results when a supplier is unable to deliver. You can also purchase what’s called “extra contingency expenses insurance.” That covers the higher prices you might end up paying to an alternative supplier.

Should you get either? “It depends on the nature of your business,” says Hackett.

“It’s particularly important for manufacturers which assemble products in one location but utilize parts from elsewhere. Retailers may also need the insurance if they depend upon suppliers in different locations to keep their doors open.”

UNDER WATER. Standard property insurance policies generally cover water damage that results from pipes bursting. Not covered, however, is flooding from causes such as tidal surges, the overflow of rivers, or water flowing down from a mountain or along the ground.

“Damage from flooding can be cata strophic,” says Michael Sapourn, a Satellite Beach, Fla.-based attorney who has dealt extensively with flood damage insurance and litigation. “Those who own build

ings located in areas vulnerable to such events should purchase flood insurance.”

“Much litigation results from the difficulty in distinguishing between water damage caused by windstorm (which is covered by standard property insurance policies) or from other causes such a tidal surge. Carriers often litigate the gray areas where windstorm ends and tidal surge begins.”

Mortgage lenders will require you to buy flood insurance if you are located in a flood zone as defined by the Federal Emergency Management Agency (FEMA). “Businesses which have paid off their mortgage often drop flood insurance since they no longer have a lender who requires it,” says Sapourn. “That’s a mistake.”

Finally, don’t make the common mistake of being underinsured. “Don’t try to save money by lowering limits. Get the coverage limits you need to protect you from a total loss.”

Flood insurance policies are typically

not available on a replacement cost basis, so you will need to estimate what you need to rebuild. If you have an older building, you may not be able to get the policy limit you want from FEMA, so you may end up going into the private market for excess insurance.

Once you have your recovery plan and your insurance policies in place, you are in a much better position to survive should you be hit with a disaster. But don’t just toss your recovery plan in a desk file and forget about it. Advisers counsel reviewing the program annually.

“Disaster recovery planning is an evergreen issue that is never done,” says Williams. “People change jobs, functions change, mobile phone numbers change. Keep revisiting your plan.”

You don’t want to be caught without a lifeline when a crisis hits. O

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

Rainy Day Blues

Suppose rain damages your building. Are you covered by your insurance policy?

“Rain entering a building may or may not be covered,” says Michael Sapourn, a Satellite Beach, Fla.-based attor ney who has dealt extensively with flood damage insur ance and litigation. “If the rain enters through a leaky roof or open window or door, there is no coverage anywhere for that damage (unless vandalism was involved).”

Water damage from rain entering a building after its exterior shell has been damaged by windstorm, hurricane, or tornado is covered under the commercial property policy, he adds.

“Rainwater which runs along the surface of the ground during heavy rains and damages the covered premises is excluded by the property policy, but it is covered under a flood policy.”

industry observations

Hiring the r ight Candidate

Four people have applied for the job at your drycleaning business. You’ve just finished the interviews, or rather, you spent most of the time telling them your company’s strengths and why they should want to work for you. Now you must decide which candidate to choose.

But you have no notes, and each individual seems a blur. In fact, you hate this part of the process and are thinking of deciding by pulling a name out of a hat. All the candidates seem like they would fit the bill.

Maybe there’s a better way.

Before you even begin advertising, consider your expectations and requirements. Whether you are hiring someone who will be replacing a departing staffer or you are establishing a new position, create a job description. For this description, don’t merely recite tasks. Instead, describe exactly what you need. For example, you want the candidate to be a steady worker, who will never miss work and never arrive late.

Or you want a candidate who can take a suggestion and come up with

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

his/her own procedures. Or you want a candidate to be able to watch you and do what you do, with minimum fuss.

Or you want your candidate to be a highly experienced spotter, someone who can remove almost any stain. Or you would like a take-charge dropstore manager, someone who can interact really well with customers and come up with his/her own marketing plans for increasing patronage.

Or you want the candidate to be an aggressive route salesman, someone who makes a good impression and who can talk to customers. Or you want a versatile person who can do most tasks in the plant, including repairing equipment.

Write down the ideal candidate’s characteristics list – five or six qualities that you would like the candidate to possess. This is your ideal candidate model, and this is how you judge the applicants. It aids the decision-making process to have this in writing, because it helps you focus on qualities.

It might be a good idea to jot down what you don’t want. For example, you don’t want an experienced manager who has a chip on his shoulder or an edge to his personality; he won’t take instructions well, and your dealings together will not be smooth. You don’t want a staffer who has never worked in a drycleaning plant.

Howard Scott

You don’t want a candidate who is used to receiving paychecks larger than you can afford, even though he says he will accept less; such a situation can become problematical.

You don’t want a presser who will not be able to help behind the counter when needed.

THE INTERVIEW. After you look over the candidate’s employment application, approach the interview with the idea that you will expose the candidate’s weakness(es).

Don’t look at the interview process as a formality, or as a bland connect-thedots talk. Rather, you expect to discover something, to uncover a potential problem. That doesn’t mean you are overly aggressive. Rather, ask the appropriate questions, listen to the answers and take notes. The

note-taking will help you focus on listening; the interview is mainly the candidate talking and you listening.

For the applicant with a sketchy work history, having worked at five or six different companies in the last 20 years, ask ▲

(Image licensed by Ingram Publishing)

why he or she didn’t stay longer than three years at any of these jobs. The question doesn’t beat around the bush. If the person answers that none of the companies appreciated his work, ask for an explanation. In other words, don’t let the applicant get away with a glib response. Follow up until you believe you’ve gained some insight.

Conversely, for the applicant who has worked for one company for many years, ask why he is looking to switch jobs now. If there was a dispute, make the candidate talk about the issue. Keep probing until you understand what transpired. This line of questioning is not intended to embarrass the individual, it’s to help you understand the person’s work perspective.

If the applicant is reluctant to talk, try to open him/her up by discussing a nonwork subject – family, spouse, children,

Which candidate would be more apt to become a long-term employee? Which candidate would fit in better with your crew? Who could you work with more comfortably?

TALK SALARY. Ask about salary expectations. Don’t reveal your range. This dialog will get him/her to talk about his/her wants and needs from working. Then ask why he/she deserves such a salary. This will get him/her to talk about his skills and how he can contribute the company. Here, perhaps, interject your own salary requirements, so you might eliminate the candidate then and there. If you don’t have some basis of agreeing on the salary, then the interview is over.

It’s a good idea to get the applicant in the plant for an opportunity to observe his or her skills. Is he/she fast? Does the applicant’s confidence level correspond to years in the business? Can he/she delegate tasks with ease? Is the applicant familiar with the equipment? Does he/she seem to be a savvy operator, or have some mechanical skills?

FOLLOWING UP. Follow up on references listed on the application. But do not let the respondents dish out bland platitudes. Rather, ask them tough questions, which will hopefully result in honest answers.

hobbies, etc. Get the interviewee to come out of his/her shell in one area and he/she will ultimately be forthright about work experiences.

Ask the candidate what he/she expects out of the job.

Why do you want to work here? What do you know about our company? What do you dislike about the size of our firm, employee mix, location, company specialization, etc.? What might you dislike about your new employer?

Get the applicant talking about what he/ she likes and dislikes about work.

Why isn’t this individual still working there? What did you pay him/her? Why didn’t you pay him/her more? What was the person’s worst fault? Was the individual completely responsible? Did the individual always show up for work and on time? Did you have a problem with the individual’s personal initiative? What single characteristic did you wish the individual had more off?

Such questions force the respondent to say something meaningful. Yes, there are legal guidelines for talking about former employees, but many managers will go beyond that.

American Drycleaner, November/December 2013 www.americandrycleaner.com

Now, in the quiet of your study after having done your homework, you must decide. With the desired requirements of the job written down alongside your notes, go through the candidates.

Eliminate the lesser candidates as soon as possible. It is better to decide between two people than five people.

Try to envision scenarios. Which candidate would be more apt to become a longterm employee? Which candidate would fit in better with your crew? Who could you work with more comfortably? Who do you think would be the most pliable staffer? Which candidate would add quite a bit to your work skills?

After you ask and answer these questions, check your gut feeling as to who is the best candidate. A gut reaction can often be achieved by closing your eyes and en-

visioning the person you would most like to work with. That individual is your first choice.

Make him/her a job offer. If the person doesn’t accept, go with the alternate. If the second candidate rejects the offer, you must start the process all over again. You don’t want to hire someone who is not a top candidate. Always keep in mind how important this decision is: The individual might be with you for years and years.

By being deliberate and forceful, you will choose the best candidate for your company. O

Howard Scott is a longtime industry writer and drycleaning consultant, and an H&R Block tax preparer specializing in small businesses. He wel comes 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.

Managing Employees by the Book

By Fred S. Steingold

(Image licensed by Ingram Publishing)

Microsoft, General Motors and IBM have long recognized the virtues of having an employee handbook. What works for the big time operators can work for you as well — even if you employ just a handful of workers.

Consider some of the advantages of having an employee handbook. For starters, once you give it to an employee, you don’t have to remember whether you gave the employee a list of paid days off or explained your vacation policies. It’s all there in the book, and all workers are getting the same information.

In addition, your handbook can help protect you legally if an employee sues your company. For example, a handbook statement that sexual harassment won’t be tolerated in the workplace can be crucial in a sexual harassment lawsuit.

Be aware, however, that there can be a legal downside to having an employee handbook. If you’re not careful, your handbook may be treated as a contract that limits your right to fire employees. To avoid that result, state in the handbook that employees don’t have employment contracts unless they are in writing and signed by the company president. Also, make it clear that your company reserves the right to terminate employees for reasons not stated in the handbook or for no reason at all.

These precautions may not be foolproof. Courts tend to look at the handbook as a whole. If a reasonable employee would conclude that the handbook creates rights in the employee, a court might treat the

handbook as a contract.

You can produce an employee handbook quickly and cheaply by using a self-help book or software program as a starting point. Modify the sample wording to fit your own needs. Then, if you have specific legal questions, see your lawyer.

Here are some topics to include in your employee handbook.

• Introduction. Describe your company’s history and business philosophy. This helps you set the tone — which can be friendly and welcoming if that’s your style. But make it clear the handbook doesn’t cover every possible situation.

• Hours. State the normal working hours and how overtime pay is authorized for those employees entitled to it.

• Pay and salaries. Be clear on how pay and salaries are set and how they’re raised. In very small businesses, this may be a statement that levels of pay are established and adjusted by the company president taking into consideration past performance, cost of living changes and the ability of the business to pay.

• Benefits. Employee benefits typically include paid vacations, health benefits, sick pay and unpaid leaves for extended illness, pregnancy or family matters. Since the law doesn’t require you to provide paid sick days or vacation days, you’re free to set the terms under which such benefits are granted. Be clear on whether the employee can carry unused sick or vacation days into the next year and what happens to such benefits if an employee quits or gets fired. Finally, describe any 401(k) or retirement benefits you offer.

• Drug and alcohol abuse. Most busi-

Employee handbook offers management protections, but avoid ‘contract’ interpretation

nesses prohibit employees’ use of al cohol or illegal drugs in the workplace. In addition, some businesses offer help to employees in dealing with abuse of these substances — often by paying for professional counseling.

• Sexual harassment. Remind employees that sexual harassment is illegal and violates your policies. Let them know that you won’t tolerate unwelcome sexual comments or conduct, and that you’ll assist those who speak up about it in ending any harassment.

• Job attendance. Emphasize the impor tance of good attendance and showing up on time. Tell employees the types of absence that are excused — such as illness, and perhaps a family member’s death. Also, explain that piling up a load of unexcused absences or coming to work late too often can be a basis for disciplinary action or even firing.

• Discipline. List the kinds of conduct that can get employees in trouble — for example, theft or violence. But again, let employees know this isn’t an exclusive list and that you always reserve the right to decide to terminate an employee’s employment.

• Employee safety. State that employee safety is a major concern and that em ployees are expected to heed the posted safety rules and to call to your attention any possibly dangerous conditions.

• Smoking. Most businesses need a written policy for on-the-job smoking. Many cities and some states now prohibit or restrict workplace smoking. Be sure your policy meets the requirements of state laws and local ordinances.

• Grievances. Let employees know the

procedures for resolving grievances. Consider setting up a grievance com mittee consisting of employees who meet informally and make recommen dations on employment issues.

• Workplace civility. State that employ ees must treat each other with respect and that the success of the business depends on cooperation and teamwork.

Document that each employee received the handbook. This is another chance to let employees know that the handbook isn’t a contract, that it doesn’t guarantee you’ll continuously employ them, and that you’re not obligating your company to continue the current job benefits forever.

To do this, include with your handbook two copies of an Employee Handbook Acknowledgement. Then ask each new em ployee to sign both copies to acknowledge that he or she has received the handbook and is familiar with its terms.

Keep one signed copy of the acknowl edgment in the employee’s personnel file maintained by your business. The employee can keep the other copy. Have each em ployee sign a similar receipt each time you distribute significant revisions or updates. O

Legal strategies may vary depending on the state in which you live and the specifics of your situa tion. See your lawyer for legal advice.

Fred S. Steingold practices law in Ann Arbor, Michigan. He is the author of Legal Guide for Starting and Running a Small Business and The Employer’s Legal Handbook published by Nolo.

Emphasize the importance of good attendance and showing up on time. Tell employees the types of absence that are excused...

JANUARY

Feature: Plant Design Awards

The 53rd annual edition of our magazine’s competition spotlights the best new plants and renovations completed in 2013.

Editorial Submission Deadline — November 15

FEBRUARY

Feature: Buyer’s Guide

Our annual directory issue of manufacturers and suppliers is the most anticipated of the year—a valuable resource that you’ll want to keep handy.

Editorial Submission Deadline — December 15

MARCH

Feature: Point of Sale Systems

The latest developments in these computer systems and how to use them effectively for marketing and management. Showcase: Point-of-Sale Systems

APRIL

Feature: Branding Operations that build name recognition and define their marketplace positioning, including franchises, stand to succeed more quickly than the generic dry cleaner.

Editorial Submission Deadline — February 15

MAY

Feature: Exhibit in Print

This “trade show you can put in your pocket” offers an illustrated guidebook to our advertisers’ latest and greatest products.

Editorial Submission Deadline — March 15

Editorial Submission Deadline — January 15 Want

Phone: 312-361-1683 E-mail: bbeggs@americantrademagazines.com

Tide Dry Cleaners opens doors to new Midwestern locations

Two new Tide Dry Cleaners stores re cently opened in the Midwest, accord ing to Procter & Gamble.

Via Nova Holdings LLC has part nered with the company to open a lo cation in Omaha, Neb., while Vequity LLC has partnered with the company to open a location in the Chicago sub urb of Naperville, Ill.

Though the stores are the first of the Tide Dry Cleaners brand for both states, both locations will utilize Tide’s 60 years of fabricare experience, in conjunction with GreenEarth cleaning solutions, the company says. Other amenities the stores will feature include drive-thru concierge servic es and access to “Tide Dry Cleaners Anytime,” allowing for 24-hour pickup and drop-off access, the company adds.

“We are proud to provide excellent customer service, superior drycleaning quality and amazing convenience to every customer of Tide Dry Cleaners,” says Kimberly McCutcheon, general manager of Tide Dry Cleaners Omaha.

“We are excited to join the fran chise system and bring the amazing Tide Dry Cleaners experience to the residents of Naperville,” says Raj Pa tel, Tide Dry Cleaners franchisee of Naperville. “Once customers try us,

we believe they will love the many differences offered compared to other dry cleaners.”

Andrew Gibson, Tide Dry Cleaners brand manager, explains the company is “excited” about its location in Oma ha, and that the company is focused on changing the industry through its “unique offerings.”

Of the Naperville location, Gib son adds, “This location is off to the fastest start we have seen in the Tide Dry Cleaners network. The positive response we have received from cus tomers has been outstanding.”

Jeff Wampler, CEO of Agile Pur suits Franchising, a subsidiary of Procter & Gamble, says his compa ny is happy to be partnered with Via Nova Holdings and Vequity in bring ing the Tide Dry Cleaners brand to their respective locations.

America’s Best Cleaners suit up for Affiliate Meeting

America’s Best Cleaners (ABC) host ed its semi-annual Affiliate Meeting Oct. 20-22 in Newark, N.J., featuring presentations and activities focused on today’s couture-level fashions and in dustry best practices, the independent certification organization says.

The meeting also included a tour of the 20,000-plus-square-foot facili ties of Rent the Runway, as well as a

visit to the manufacturing facilities of Mel Gambert Custom Shirt Makers, according to ABC.

Among speakers for the event were Dave Kerpen, chairman of social media marketing agency Likeable Media, who talked about the “growth and importance of social media for small businesses,” and introduced Likeable Drycleaners, Likeable Media’s Facebook marketing solution for dry cleaners and vertical markets, accord ing to ABC.

In addition to Kerpen, the association’s professional team led interactive discus sions on best practices for dry cleaners.

Natick store is fifth Lapels location to open in Massachusetts in ’13

Lapels Dry Cleaning has opened a new location in Natick, Mass. The 9/27 Shop ping Center store at 213 N. Main St. is the fifth Lapels Dry Cleaning location to open in Massachusetts in 2013, joining others in Cohasset, Cambridge, Franklin and Quincy.

“We are delighted to bring Lapels’ standard of high-quality dry cleaning and superior customer service to Natick,” says Joe Caracappa, one of the co-owners of the Natick Lapels along with Raphael Bustos. The duo also own Lapels West End in Boston.

Each Lapels Dry Cleaning store offers a full slate of services, including same-day dry cleaning; shirt service; tailoring; shoe repair; wedding gown preservation; suede and leather processing; box storage; and fur storage.

Lapels Dry Cleaning has stores in 14

www.americandrycleaner.com

states, with the largest share located in Mas sachusetts. Additional locations are coming to Austin, Texas; Cedar Park, Texas; and Needham, Mass., the franchisor says.

Lapels Dry Cleaning has been ranked in Entrepreneur’s 26th Annual “Franchise 500” as well as Entrepreneur’s “Top 50 New Franchises.”

CD One Price Cleaners expands into Minneapolis/ St. Paul market

Chicago-based CD One Price Cleaners has brought its value-driven, one-price concept to the Minneapolis/St. Paul market with the opening of its first franchise in Hop kins, Minn., the company says.

Based on the success of the 30 fran chise and company-owned CD One Price Cleaners “superstore” locations in the Chicago area, the company has targeted the Minneapolis/St. Paul market for expan sion.

CD One Price Cleaners offers a dis counted, one-price policy for all men’s and women’s garments and a same-day service policy at no extra charge. The company reports that it cleaned nearly 15 million garments in 2012.

“CD One Price Cleaners successful ly introduced a new business model with state-of-the-art technology in an otherwise fragmented industry that has operated for decades without much innovation, brand ing or value,” says Tom Ryan, CD One Price vice president of franchise devel opment. “We’ve proven that the singleprice concept for laundry and dry cleaning resonates with consumers, making this a compelling franchise opportunity for ▲

American Drycleaner, November/December 2013

individuals who want to introduce a new business in the Minneapolis area and take control of their financial future.”

The CD One Price Cleaners executive team currently supports 24 franchise loca tions and six company-owned stores. The company was founded in 2001.

DLI contest seeks videos demonstrating, promoting use of member services

The Drycleaning & Laundry Institute (DLI) is offering a cash prize for videos that demonstrate or promote the use of DLI member services. The contest is open to all cleaners working in the industry, as well as all consumers and organiza tions. DLI will award $5,000 for the video judged to be “best” by the DLI staff and Board of Directors.

The video project is intended to ac cumulate ideas for how DLI professional dry cleaners can promote their services more effectively, says DLI District 2 Di rector Dave Beatty, owner of Murrysville (Pa.) Cleaners.

“We think we know why a consumer should bring a pair of pants they can clean at home to us, but we’re certain to get a great many ideas from this project,” Beatty says. “It’s easy to list convenience, quality and things like that, but those things are too general. We thought we’d go to the source and get consumers to tell us their reasons for using professional services.”

Al l videos must demonstrate the ad vantage of using professional drycleaning services, run no longer than two minutes, and may not promote a specific cleaning company.

To submit a video, post it to YouTube and share a private link with DLINews@ DLIonline.org; all submissions become DLI property. DLI employees and board members are not eligible to win the con test.

Deadline for entries is April 1. The prize will be awarded by June 23. Offi cial contest rules are available at www. dlionline.org/contest.

EIA forecasts higher natural gas prices this winter

Homeowners are expected to face higher prices to heat their homes this winter, ac cording to projections in the U.S. Energy Information Administration’s (EIA) ShortTerm Energy and Winter Fuels Outlook.

Compared to last winter, the EIA projects that residential expenditures for natu ral gas will increase by 13%, or an average of $80 more this winter heating season (Oct. 1 through March 31).

“ The increase in natural gas expen ditures represents a 14% increase in the average U.S. residential price from last winter, with consumption that is slightly lower than last winter nationally,” says the EIA. “The projected changes in residential natural gas prices this winter range from a 10% increase in the West, to a 15% in crease in the Northeast.”

Despite its projection of higher natural gas expenditures this winter, the EIA says that it is still lower than the average of the previous five winters (October 2007 to March 2012).

Expenditures for propane are projected to increase 9%, while electricity will in

American Drycleaner, November/December 2013 www.americandrycleaner.com

crease by 2%, the EIA reports. However, heating oil expenditures are expected to be 2% lower this winter.

Brent crude oil spot prices fell from a recent peak of $117 per barrel in early September to $108 per barrel at the end of that month, with the EIA attributing the cause to a restart in oil production in Libya, “and concerns over the conflict in Syria moderated.”

“EIA expects the Brent crude oil price to continue to weaken, averaging $107 per barrel during the fourth quarter of 2013, and $102 per barrel in 2014,” the organiza tion says.

West Texas Intermediate (WTI) crude oil prices are expected to average $101 per barrel during the fourth quarter of 2013,

falling to $96 per barrel during 2014, ac cording to the report.

Natural gas working inventories ended September at an estimated 3.52 trillion cubic feet (Tcf), 0.17 Tcf below last year’s level, and 0.04 Tcf above the previous five-year average (2008-2012), accord ing to the EIA, which also expects the Henry Hub natural gas spot price to aver age $3.71 per million British thermal units (MMBtu) in 2013, and $4.00 per MMBtu in 2014.

Residential electricity prices are ex p ected to increase by 2% in 2013, and 1% in 2014. The EIA attributes the “mod est increases” to stable coal prices and an increase in electricity generation from coal. O

Eight students graduated DLI’s School of Drycleaning Technology’s Five-Day Cleaning & Stain Removal Course on Sept. 13. They include (front row, from left) Brian Johnson, DLI director of education and training; Denise Nuismer, Plantengas Cleaners, Spring Lake, Mich.; Kris Baumgarner, Plantengas Cleaners, Spring Lake, Mich.;

Colleen Marshall, Weil Cleaners, Monroe, La.; Namrata Dalela, Museum Conservation Institute, Suitland, Md.; (back row, from left) John Cho, Peach Cleaners, Marietta, Ga.; Young O, Pride Cleaners, Herndon, Va.; Emeka Anekwe, Crest Cleaners, McLean, Va.; and Antonio Edwards, Dutch Girl Cleaners, Canton, Ohio.

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.

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 contact us at 312-3611700.

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.

POSITIONS AVAILABLE

Production/Operations Manager for our Brandon, Tampa, FL location plant. Must have min. 5 years experience operating a large volume, quality drycleaning and shirt laundering plantcleaner/spotter, ability to train and manage 25 employees and take control of all phases of plant operations. Equipment knowledge and repair a plus, 6-day week. Fax resume to 813-653-3756 or email to admin@majiktouchcleaners.com or call 813-654-2323.

STATEMENT OF OWNERSHIP, M ANAGEMENT , AN d

1. Publication Title: AMERICAN DRYCLEANER 2. Publication Number: 00028258 3. Filing Date: 9/24/13. 4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 11 6. Annual Subscription Price: $39.00. 7. Complete Mailing Address of Known Office of Publication: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Contact Person: Charles Thompson, 312-361-1700. 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. 9. Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor. Publisher: Charles Thompson, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Editor: Bruce Beggs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. 10. Owner: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Charles Thompson, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Bruce Beggs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Donald Feinstein, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Nathan Frerichs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. John Suhler, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. 13. Publication Title: AMERICAN DRYCLEANER 14. Issue Date for Circulation Data Below: September 2013

15. Extent and Nature of circulation: (average number of copies each issue dur ing proceeding 12 months=”X”) (Number copies of single issue published near est to filing date = Y”) (a) Total Number of Copies (Net press run): X=22,018, Y=21,830. b. Legitimate Paid and/or Requested Distribution (By Mail and Outside the Mail). (1) Outside County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange cop ies.) X=12,144, Y=11,252. (2) In-County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemar

C IRC u LATION

keting and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) X=0, Y=0. (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid or Requested Distribution Outside USPS®: X=0, Y=0. (4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail®): X=0, Y=0. (c) Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4)): X=12,144, Y=11,252. (d) Nonrequested Distribution (By Mail and Outside the Mail). (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources): X=9,514, Y=10,409. (2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources): X=0, Y=0. (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class Mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail® or Package Services Rates): X=0, Y=0. (4) Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms and Other Sources): X=48, Y=14. (e) Total Nonrequested Distribution (Sum of 15d (1), (2), (3) and (4)): X=9,562, Y=10,423. (f) Total Distribution (Sum of 15c and e): X=21,706, Y=21,675. (g) Copies not Distributed (See Instructions to Publishers #4, (page #3)): X=312, Y=155. (h) Total (Sum of 15f and g): X=22,018, Y=21,830. (i) Percent Paid and/or Requested Circulation (15c divided by f times 100): X=55.95%, Y=51.91%.

16. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the November 2013 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanc tions (including fines and imprisonment) and/or civil sanctions (including civil penalties): Charles Thompson, Date 9/24/2013

www.americandrycleaner.com American Drycleaner, November/December

American Drycleaner and AmericanDrycleaner.com

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American Drycleaner is the industry’s premier publication for news relating to drycleaning 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.

company’s capabilities to meet customers’ replacement needs, says Vivian Brim, parts department manager … While some cleaners offer added services such as wedding gown restoration to increase revenue, McInnes Dry Cleaners in Salt Lake City, Utah, has created a unique business model to gain extra income. The business, owned by father-son duo Murray and Marcus McInnes, has added video rental to its service line. Housed in the facility’s call office, McInnes charges 99 cents Monday through Thursday, and $1.99 Friday to Saturday, per movie rental, helping the dry cleaner make an additional $800 to $2,000 a month.

50 YEARS AGO. Huebsch Originators will display a piece of the drycleaning and laundry industry’s history at the upcoming Laundry and Cleaners Allied Trades Exhibit Corp. (LACATEC) show, by exhibiting the oldest open-end tumbler-dryer known to still be operating in the country. The 31-year-old Huebsch dryer, located at Infant Service in Culver City, Calif., was found to be continuously operating since 1932. … Cissell Mfg. Co. recently made its way to national TV, with Vice President Eloise Cissell Lewis making an appearance on the To Tell the Truth game show. Lewis was selected for being the first and only woman to receive the Presidential “E” award, in recognition of Cissell Mfg.’s record in foreign trade. The show’s panelists ask questions of three guests to deduce which is the one that host Bud Collyer is introducing. Only one of the panelists guessed who was the “real” Mrs. Lewis.

… Instead of fur trapper hats, cleaners may find that men’s headwear is taking a reptilian turn, as cobra skin fedoras will be en vogue this winter season. Hat makers are using such exotic materials in hopes of targeting “rakish, young executive” types in order to boost sales. Conventional felt fedoras have faced a drastic decline in sales after World War II servicemen, who weren’t wearing them while in service, continued to go fedora-free after the war.

75 YEARS AGO. As cleaners prep for the influx of various furs that come across their counters this winter, what’s a cleaner to do when a customer brings in an item of a different feather? One cleaner faced such a conundrum when a customer asked to have a mounted pelican dry cleaned. American Drycleaner’s C.C. Hubbard suggests dusting such items with compressed air and wiping them down with a soft cloth saturated with cleaning solvent. After air-drying, wipe the stuffed animal with 2% to 3% acetic acid, and rub on sodium perborate. After air-drying again, dust off the critter one last time, always with the lay of the feathers. … As customers begin to transition their wardrobe into winter, heavy jackets and coats will become the popular garment many cleaners will process. One issue that cleaners can’t seem to button down is the problem of dye stains from bleeding buttons. Sam Kaiser, spotter at Chicago’s Star Cleaners & Dyers, has found a possible solution. Kaiser treats the spot using a brush and a solution of hot soap and ammonia. After 15 minutes, he sponges the stain and brushes it with alcohol. He then dips the treated part in water, extracts, and dries the garment. O

— Compiled by Carlo Calma

Dry Cleaning and a Movie

10 YEARS AGO. Mini, menswear, mod, zoo and ski; alone, without much context, they conjure up as much confusion to a dry cleaner as a mysterious stain. But together, they represent the top five fall fashions dry cleaners will see at their counters this season. In “mini” fashions, like mini skirts and cigarette pants, fabrics will often be made of stretch material like Lycra, while menswear looks will be constructed of staple fabrics, like tweed, but will have a more feminine drape and cut. Cleaners will have to be particularly careful about the colorfastness of fabrics in mod and “zoo” styles, where loud oranges and reds, alongside animal prints, ruled the runway. In “ski” looks, cleaners will have to pay close attention to hooks, clasps and zipper pulls, which can get damaged in the cleaning process. … Textile manufacturers are looking ahead as to what’s in store for future fabrics. University of California at Davis researchers are working on chemically grafting a compound called halamine, which attracts and holds ambient chlorine, onto fabrics, killing germs and other microorganisms. Others, like German scientists Markus Schubert and Michail Rakhlin, are developing synthetic fibers that can harness solar energy, enabling consumers to charge devices like cell phones on-the-go …

Metropolitan Laundry Machinery of Long Island, N.Y., will have much to celebrate this holiday season, as the distributor has been named No. 1 dealer by Realstar at Clean ’03.

25 YEARS AGO. Milnor has opened the doors to its new 86,000-square-foot factory addition, bringing its total square footage to more than 360,000 square feet. The addition will house several departments, including final assembly and testing; electrical assembly; special assembly for custom accessories; and final treatment for packing and shipping. A 350-foot test rack increases Milnor’s capacity for testing to 26 washerextractors and four dryers at a time. … Brim Laundry Machinery Co. recently completed expansion of its parts department facilities. The addition gives Brim’s parts department 5,600 square feet of office and warehouse space for personnel, inventory and the company’s computerized order entry system. The new facilities will strengthen the