American Drycleaner - April 2013

© Copyright 2013 American Trade Magazines All rights reserved.

® April 2013

CUTTING ENERGY COSTS What’s the best strategy for keeping things in check?

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drycleaner drycleaner A M E R I C A N

April 2013

Vol. 80, No. 1

FE A T U R E S

D EP A R TMENTS

20 (Cover Photo: ©iStockphoto/ Christine Glade)

20

Cutting Energy Costs Best strategy for keeping things in check: audit energy use regularly Lloyd R. Manning

36

Fending Off Hack Attacks How to protect your business’ online bank account from fraud Phillip M. Perry

40

Five-Star Brainstorming Dry cleaning pros exchange best practices, soak up sun during DLI/NCA Cancun gathering

42

How to Safeguard Your Business Name You’d hate to have a judge tell you that you can’t use your name anymore.

Fred S. Steingold

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Pre-Inspection 4 Talk of The Trade 6 The Numbers 10 Upcoming Events 12 Spotting Tips 14 Protecting Unique Characteristics Martin Young Other Side of the Counter 18 Deliver What Your Customers Expect Carolyn Nankervis Management Strategies 28 No Passive Path to Boost Profitable Sales Diana Vollmer Product Showcase 32 Dry Cleaning Machinery: Perc Industry Observations 46 The Employer/Employee Relationship Howard Scott Your Money 50 Consolidating Defined Benefit Plans Bill Lynott Education & Training 52 Around the Industry 54 Classified Advertising 58 Advertiser Index 62 Wrinkle in Time 64

www.americandrycleaner.com

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“Business has never been better.”

“The support from CBS was great. Even before we signed up, they were responsive and flexible in their approach. They have helped our team become more efficient.”

Brent Ramenofsky Boston Cleaners

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Booth 2853

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Pr e-i n s p ec t i o n

Finding the Losses

I

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

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

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

product quality or staff productivity.

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

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

Publisher Charles Thompson

National Sales Director Donald Feinstein

cthompson@american trademagazines.com

dfeinstein@american trademagazines.com

Editorial Director Bruce Beggs

Digital Media Director Nathan Frerichs

bbeggs@american trademagazines.com

nfrerichs@american trademagazines.com

Contributing Editors Everett Childers Howard Kaschyk Carolyn Nankervis Howard Scott John Spomar Jr. Jean Teller Diana Vollmer Martin Young

Production Manager Roger Napiwocki

Main: 312-361-1700 Fax: 312-361-1685

Editorial Assistant Carlo Calma

312-361-1680

312-361-1683

312-361-1682

312-361-1681

SUBSCRIPTIONS 630-739-0600 www.american drycleaner.com

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 Chicago, 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 1. Editorial, executive and advertising offices 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 publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2013. Printed in U.S.A.

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talk of the trade

NYC mandates dry cleaners to disclose chemicals used

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Natural gas costs still higher than 2012, but gasoline prices falling WASHINGTON — The Henry Hub

▲

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

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

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

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

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

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

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

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

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

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

www.americandrycleaner.com

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

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

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

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

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

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

EIA warns that energy price forecasts are highly uncertain and that the current values of futures and options contracts suggest prices could differ significantly from its forecast. O 8

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

Top News Stories 1. New York City Mandates Dry Cleaners to Disclose Chemicals Used 2. In Memoriam: William W. ‘Bill’ Haiges, Haiges Machinery 3. The Numbers: Modest Economic Growth Reported While Unemployment Rate...

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

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

Top columns & features 1. Avoid These Money Mistakes 2. Is There New Opportunity in Restoration?

3. Over the Fiscal Cliff for Tax Savings 4. Manage the R > E Flow 5. StatShot: West Leads Regions Posting Better Dry Cleaning Sales... Web EXCLUSIVE!

Top stories @ our sister sites AmericanCoinOp.com: 1. Over the Fiscal Cliff for Tax Savings 2. Financing Company Launches Streamlined Credit Application 3. American Dryer Corp. Realigns Sales Responsibilities 4. Survey: Laundry Owners Weigh Best and Worst About Their Stores

AmericanLaundryNews.com: 1. OPL 101: Equipment Choice Can Lessen Infection Risk, Utility Costs 2. Faultless Healthcare Linen Expands...

3. Panel of Experts: Sharps Pose Constant Threat to Soil Sorters, Others

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THE NUMBERS

PROMPTED BY a lower

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

ACCORDING TO THE BUREAU OF LABOR STATISTICS, the ranks of the em-

ployed swelled by 236,000 in February, and the unemployment rate nudged down to 7.7%. Increases came in professional and business sectors, along with construction and healthcare industries.

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

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

THE U.S. SHOPPING CENTER INDUSTRY’S income for

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

THE LATEST NON-MANUFACTURING Institute of

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

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

THE U.S. DEPARTMENT OF COMMERCE released data

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

THE LATEST BEIGE BOOK

from the Board of Governors of the Federal Reserve System was also positive.

Twelve Federal Reserve Districts reported modest to moderate growth since the previous report. Five districts reported moderate January and early February growth, five noted modest growth, one district indicated the economy expanded slowly, and one district reported a slow pace for economic growth. Expansion was seen in consumer spending, and automobile sales were strong. O —Jean Teller www.americandrycleaner.com

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Up c o m i n g E v e n t s

IDC planning Mini Convention 2013 as Clean Show precursor

Ohio Cleaners Association plans marketing workshop

T

T

he International Drycleaners Congress (IDC) is planning Mini Convention 2013, described as “a one-day, information-packed conference immediately preceding the Clean Show in New Orleans.”

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

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

Nashville to host SEFA Annual Meeting this month

T

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

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

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

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he Ohio Cleaners Association, along with online marketing company SiteInSight, will present Marketing Your Cleaners to Attract More Customers, a workshop at the New Albany (Ohio) Public Library, on May 8.

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

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

Independent Textile Rental Association to celebrate 10 years

T

he Independent Textile Rental Association (ITRA) will celebrate its 10th anniversary during its 2013 Annual Convention, scheduled for Sept.

29-Oct. 2 at the Silverado Resort & Spa, Napa, Calif.

For more information, call 706-6376552. O www.americandrycleaner.com

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C A LE N D A R June 19 International Drycleaners Congress Mini Convention 2013. To be held in New Orleans. Visit idcgroup.org for more information.

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

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

Next Month in American Drycleaner

Clean 2013 Show Guide (Photo: © iStockphoto/ivanastar)

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

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

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

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

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

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

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

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

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

www.americandrycleaner.com

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S potting T ips

Protecting Unique Characteristics

I

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

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

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

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

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

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

▲

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

time to test the dark panel for colorfastness.

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

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

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

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

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

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

Rabbit pelts are small, so it takes a large number of pelts to make a jacket.

This means one will find a large number of irregularly shaped seams in the jacket’s construction. Rabbit pelts are thin, meaning that they tear easily when twisted during cleaning and stressed during spotting.

A majority of rabbit jackets are sprayed with dye after construction to give the surface an even appearance. And so the cleaner/spotter is faced with multiple irregular seams; a thin, drying pelt that becomes ever more brittle; and quite probably unstable color.

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(Photo: © iStockphoto/Romanchuck)

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

Spotting real fur is done without steam.

Wet the area with tap water from a spare spotting bottle. Apply neutral synthetic detergent sparingly. Apply mild mechanical action. Flush the area with more tap water.

Air-dry the area, maintaining twice the normal distance between the gun and the item’s surface.

ORNAMENTAL TRIM. Garments today are showing a greater variety of ornamental trim. Large imitation jewel stones are appearing on traditionally plain garments.

Most have a painted reflective backing that will dull with normal-length dry cleaning cycles and be removed completely when using dry-side paint-oil-grease removers.

One can encounter the same problems when the trim is rhinestones or sequins.

Metallic thread—which is little more than metallic paper glued to a central thread—is fragile. Consider all trim to be fragile and alter your handling procedures to protect it.

Knowledge of unique considerations required by a garment’s construction demonstrates your professionalism. O Martin L. Young Jr. has been an industry consultant and trainer for almost 20 years, and a member of various stakeholder groups on environmental issues. He grew up in his parents’ plant in Concord, N.C., Young Cleaners, which he operates to this day. Contact him by phone at 704-786-3011, e-mail mayoung@vnet.net. www.americandrycleaner.com

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o t h e r s id e of t h e coun t e r

Deliver What Your Customers Expect

W

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

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

The reason I’m bringing up the issue of cost is that my Carolyn Nankervis firm has compiled the data from 2012 mystery shopping results from around the country. The cost of providing service is something we are hearing about from owners. For example, we have been told it’s too costly to: • Hire qualified CSRs • Develop a training/mentoring program for CSRs • Sustain a mystery shopping program to evaluates the customer’s experience • Survey and engage customers • Offer multiple ways of using dry cleaning and laundry services 18

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The crazy part about cost is that it ranks lowest on the list of items that customers say is important to them.

From the recent NCA/DLI conference, here’s the order: 1. Convenience 2. Customer Service 3. Quality 4. Price We have been performing mystery shopping for cleaners throughout the country for more than 15 years. For the past six years, we have compiled and analyzed the data. We look at scores for drop off and pick up, cleaning evaluation, and four key questions.

Following are some conclusions and trends we are seeing for the past year.

DROP OFF AND PICK UP. Overall, scores have become more similar in this year’s report. Unfortunately, they are both lower than in previous years.

When we began evaluating the data in 2007, drop-off scores were significantly higher than pickup scores.

Why? We found that experienced staffers were usually scheduled from 7:30 a.m. to about 3 p.m., while students or trainees made up the post-3 p.m. shift. Customer problems usually arise upon pick up, which usually occurs after 3 p.m. Guess who was there to answer a customer’s detailed questions? Yes, it was the least trained and www.americandrycleaner.com

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prepared staff and part-time workers.

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

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

PERFORMANCE ISSUES. Let’s drill down into the actual performance issues that comprise the drop-off and pickup scores, the “customer service” part of the transaction.

We have been tracking four key items as seen from the front counter. They are if the CSR 1) used the customer’s name during the transaction, 2) asked about spots or stains, 3) attempted to cross-sell, and 4) engaged in small talk or conversation (only on non-express bag transactions).

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

Spots or Stains? — I have been on a mission to ensure that our clients’ CSRs are routinely asking about spots or stains.

I’m happy to report that scores have increased dramatically. Unless a customer comes in for pressing only, there is a reason they are showing up with their clothing at a cleaner. Asking your customer about www.americandrycleaner.com

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

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

Conversationalist? — Years ago, I wrote an article titled Speechless at the Counter. Sadly, we still are. The most common phrase heard at drop off is, “Dropping off?” The most common phrase at pick up is, no surprise, “Picking up?”

One of our mystery shoppers wrote, “Really? I don’t have anything in my hands, so what do they think I’m there for?”

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

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

Customers are willing to (and do) pay more for fantastic service, nearly perfect cleaning, and fair problem resolution. It’s up to you to be sure you are delivering. O Carolyn B. Nankervis is president of MarketWise Consulting Group, Appleton, Wis. A former director of marketing, sports writer, radio announcer and TV producer, she is a frequent speaker on customer service and marketing topics. She can be reached at carolyn.nankervis@marketwi.com, 902-735-4970.

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

(Photo: © iStockphoto/ Christine Glade)

By Lloyd R. Manning

I

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

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

▲

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

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

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The Minnesota Techni-

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environment. staff productivity. cal Assistance Program An energy use The direct cost of assessment is a energy generally indicates that, with rising comprehensive represents about energy prices, utility bills evaluation of 6% to 18% of could soon reach 25% the performance total operating of total operating of the plant’s expenses. For energy-consumthose who also expenses. ing equipment, have an attached systems and coin laundry, it procedures. consumes be(Photo: © iStockphoto/Kiyoshi Takahase Segundo) It particularly tween 15% and seeks to establish where energy is being 20% of revenue. Both depend on which wasted and money frittered away. part of the country you are in and your Establishing where some of the losses plant’s efficiency. are occurring will be straightforward and It is a given that every year, in every obvious. Finding others will require a more locale of the country, energy is becoming in-depth examination and perhaps expert more expensive. And there is no indication assistance. The data can then be compared that it will ever be reduced or even level to the industry’s optimum performance off. The Minnesota Technical Assistance levels. This is the basic yardstick for what Program indicates that, with rising energy you are using correlated with what should prices, utility bills could soon reach 25% of or could be. It also provides the benchmark total operating expenses. The bottom line: against which energy cost savings can be unless rectified, in the future, energy will measured and could be vital to your plant’s consume a still larger share of income and financial performance. Many dry cleaning profit. By implementing energy-efficient plant operators have found an assessment operations and maintenance strategies, to be revealing as to where the deficiencies substantial savings can be achieved. lie and to discover economical rectification The best way to obtain these expense methods to reduce energy consumption. reductions is to implement a pre-planned The starting point of any such review is assessment (aka audit) of the energy conto compare your energy consumption volsumers in your dry cleaning plant. Much umes with what they should be. Analyze of this you can do yourself. For those your utility bills for at least the past year, systems and equipment items that could but preferably the last two or three. Record prove more difficult to assess, most utility current and historic rate structures, decompanies are more than willing to assist, mand and consumption amounts and other usually at little or no cost to you. charges. Check for abnormal variations, and look particularly for excessive billings.

FINDING THE LOSSES. Dry cleaning is an Factor out rate increases that are caused by energy-intensive operation. By keeping inflation; use constant dollars. your equipment and systems efficient, Next, check your maintenance you can both save money and protect the 22

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

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

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

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

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

why you should purchase their products.

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

Over the longer haul, patching up the old could be a “loser” while replacing obsolete pieces with new ones could be a wise investment. Still, with some operators, the economics are not there. The numbers are marginal for others, and some think that the results are not worth the effort and capital outlay.

Required is a hard looksee at balancing the projected energy savings of any new equipment against the initial cost and the payback period. It is always nice to have some new presses, perhaps the latest in dry cleaning machines, and certainly one of those high-output, gas-saving boilers. Yet, do you really need them, and are they wise investments? If you are thinking of selling out in the next few years, consider what this new equipment will add to the market value of your dry cleaning plant.

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

(Photo: © iStockphoto/mohamed sadath)

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It is prudent to carry out this assessment • The Boise Cason your behalf. Charges cade Paper Mill understand how your for this service are reasonat Jackson, Ala., company’s utility costs able, if not free. replaced missare arrived at and how It is prudent to undering pipe insulathey can be substantially stand how your utility tion and saved costs are arrived at and $80,000 per year. reduced. how they can be substanCost of the work tially reduced. Madison was $25,000, Gas and Electric reports and the payback that most utility compaperiod was less nies charge for natural than four months. gas based on the amount • Dow Chemical, delivered. Electricity can Evansville, La. be charged based on two reports that by measures: demand and replacing, repairconsumption. The demand ing and improvcomponent is measured in ing insulation on kilowatt-hours based on a steam systems, facility’s average demand the potential savin 15-minute increments ing is $811,000 during a billing period, per year. while consumption is the • United States (Photo: © iStockphoto/Paul Fleet) number of kilowatt-hours Steel, Gary, Ind., that are actually used by the facility. This reports that by using the proper type, suggests that if your electric bill includes size and thickness of insulation, and demand charges, work to reduce them by improving maintenance of the whenever possible. related systems, there is a potential savings of $1.5 million per year.

And there are others. Where the numA CASE STUDY. In one of its “Fact Sheets,” bers would not be nearly this large for The Eco-Efficiency Centre of Canada’s your dry cleaning plant, these industrial Dalhousie University, citing the Delaware complexes point out that measurable cost Department of Natural Resources and savings are there to be had.

Environmental Control, describes how an unidentified dry cleaner replaced its dry cleaning machines and lists the benefits CALLING ON THE EXPERTS. The assessment received: can be done by you, a qualified staff mem“A dry cleaning facility used three ber, or one of several companies specialtransfer cleaning machines and four drying izing in this work that you would hire. units with a total capacity of 155 pounds.

You may wish to ask for expert advice in In advance of some environmental legsome of these areas. The utility companies islation deadlines, it replaced all three normally have personnel on staff who will www.americandrycleaner.com

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

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

Check-ups, which are not that expensive, should be done frequently.

No matter how you go about getting it

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

(Photo: © iStockphoto/Andrew Cribb)

through the reduced purchases of solvent.

“The company’s hazardous waste generation was also greatly reduced, since fewer cartridges have to be disposed (of).

Their hazardous waste disposal costs have been reduced by two-thirds, from $1,500 per month to $500 per month.

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

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

Audit every department in your dry cleaning plant and cure any deficiencies found so that every piece of equipment operates at maximum efficiency, keeping energy costs as low as possible. This is a never-ending task, yes, but reducing energy waste is one of the more obvious profit builders available to you. O Lloyd R. Manning is a semi-retired commercial real estate and business appraiser, and a freelance writer. He is the author of Winning With Commercial Real Estate – The Ins and Outs of Making Money In Investment Properties. www.americandrycleaner.com

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m a n ag em e n t st r ate gi e s

No Passive Path to Boost Profitable Sales

I

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

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

Have you tried Groupon, delighted initially at the large number of respondents but then evaluated the retention rate on those deeply discounted sales and vowed never to use it again?

These promotional efforts can be used as a marketing introduction for a new service Diana Vollmer or new location, but resulting sustained sales are rare. They have the added disadvantage of training your customers to think that your service is not worth your normal price.

So what is the answer?

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

It is time to acknowledge that 1) dry cleaning has a narrow target market and 2) there is a great deal of competition for the attention, disposable income, and loyalty of this desirable To find past Management Strategies columns or share this month’s with your friends, visit AmericanDrycleaner.com.

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

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

BASIC RULE: KNOW YOUR CUSTOMER AND THEIR LIFESTYLE. Customers are not interested in your story unless it makes life better for them. To let them know how you can benefit them, you first must understand their lifestyle. You know a great deal about your best customers, but there is much more you can learn through profiling the ones you want to clone and duplicate. Once you understand their activities, needs, wants and motivations, you can create a more successful message that will appeal directly to them.

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

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

3/20/13 12:32 PM

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

Other examples of customer convenience that will make them loyal and make you profitable: nce a parent with kids and/or pets •O in the car has experienced the convenience of drive-thru service, they won’t go back to the counter •A round-the-clock access is invaluable to the “always on” generation elivery service that eliminates a •D “nuisance” errand (yes, dropping off and picking up dry cleaning is a nuisance to most customers) provides free time that customers can’t buy ervice hours that match customer •S demand make them happy and loyal.

The No. 1 phone question to stores continues to be “When do you close?”

Have you considered later evenings and Sundays? Especially in shopping center locations, dry cleaners are often the only stores open before 9 a.m. and the only ones closed before 8 or 9 p.m. Track your customer traffic and adjust accordingly.

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

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

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

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

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

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

them “salespeople” and their job description should prominently focus on sales.

“Counter person” or “customer service representative” becomes “counter sales representative,” for example. “Route driver” becomes “route sales and service.”

This change may seem subtle, but the implications are huge.

Getting your production staff on-board is equally important. Make a life-size cutout of the “Top 10” clients. Yours might have “Socialite Suzie,” “Efficient Eva,” “Tycoon Tom,” “Jet-Setting Sarah,” etc.

Discuss these clients’ lifestyles and why their clothing and image are so important to them.

Help your dedicated sales team find the most efficient prospect or partner targets: • Profiled prospect targets • Influencers, i.e. fashion clubs, Pinterest groups, bloggers, retailers • Charities that your best customers support • Related services, i.e. fine restaurants, spas, etc., that your customers frequent Everyone wants to be successful and work on a winning team. They just need the tools to make it happen.

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don’t currently utilize.

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

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

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

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

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

The cost of cable TV advertising has also dropped dramatically, and is now affordable for, again, selective placement during programming identified as desirable to your customer based on the profiling 30

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you conduct.

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

CONSIDER ACQUISITIONS THAT ARE COMPLEMENTARY AND IMPROVE EFFICIENCY. Perhaps the simplest way to increase profitable sales is to acquire a compatible competitor that is ready to move on. The economies of scale that can be achieved by combining operations may result from: •B etter utilizing your existing plant capacity • I mproving personnel efficiency ight-sizing your store store and •R route offerings •C ombining central management •B ack-office operations The length of the economic downturn has increased the number of acquisition opportunities. As always, thorough analysis is required to ensure that the opportunity is valid for your organization and that the transaction is designed appropriately to optimize your benefit.

These are just a few primary approaches to the question of how to build profitable sales. If you implement any of these basic steps, you are headed for increased sales and profit. O Methods for Management (MFM) Inc. has served the dry cleaning and laundry industries with affordable management expertise for improved profitability since 1953. For assistance with sales, marketing, or acquisition plans, contact Diana Vollmer at dvollmer@mfmi.com, 415-577-6544. www.americandrycleaner.com

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Digest_page

2/29/12

3:51 PM

Page 1

Product showcase

Firbimatic

Columbia/ILSA

<<

<<

D ry cl eani ng Mac hi nery: Perc Firbimatic’s Vortex Plus machines include Vapor Induction Drying, which streamlines airflow through the chamber to help reduce drying times. A Smart Combi controller is fully programmable, has 20 programs, a fully manual control, and features more than 10 languages. A Maintenance Manager incorporates diagnostics and a full maintenance schedule.

Two independent circuits handle filtration,with two spin-disk filters and two all-carbon filters.

ChillPerc is a refrigerated solvent cooler that cools the solvent prior to entering the wheel to reduce dye bleeds, and the integrated CoalPerc carbonadsorption system removes the solvent.

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

TD Mach 2 fourth-generation perc machines from Columbia/ILSA are available in 40-, 50-, 55-, 65-, 80-,99-, 120- and 160-pound capacities, as well as tandem systems for up to a 320-pound capacity.

The machines reduce cycle times and speed production with Quick Dri technology, which directs airflow into the center of the drum with 95% efficiency.

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

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

firbimaticusa.com | 800-220-0630

columbiailsa.com | 800-446-5634

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www.americandrycleaner.com

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<<

Italclean

Perc machines continue to be at the core of Italclean’s business, and the company exports machines around the globe, it reports.

Italclean’s basic machine is the Liberty 200; at 10 to 12 kilograms (or 25 pounds), the machine is simple with no frills, the company says. It features an inverter drive, Danfoss valves, aeroquips fittings in the refrigeration unit, extra-powerful distillator, and more.

The machine also is available in 15-kg and 18-kg capacities.

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

The machine is popular with hotels around the world, Italclean says, including the famous Burj Hotel in Dubai.

Realstar USA

Realstar’s perc dry cleaning machines are available in 35- to 90-pound capacities in two- or three-tank configurations.

The T Series is available in 40-, 50- and 60-pound capacities in a two-tank configuration, making them ideal for dry cleaning facilities with space limitations.

The M Series machines are available in 40to 90-pound capacities in a three-tank configuration.

The RS Series is available in a 35-pound, two-tank configuration. realstarusa.com | 888-822-7827

www.americandrycleaner.com

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Aero-Tech

<<

<<

italclean.com | 39-051-6630468

Engineered with the dry cleaner in mind, the Aero-Tech perc dry cleaning machine contains the company’s original two-filter design, allowing for the separation of light and dark fabrics.

The machine also features a “Logitrol” Dual Control Panel for a simple and flexible manual operation, a Refrigerated In-Line Solvent Cooler to maximize solvent flexibility and wash capabilities, and Advanced Recovery Filtration for better solvent mileage. steineratlantic.com | 800-333-8883

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<<

Donini International

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

The system allows an operator to reduce water consumption to zero, thanks to a built-in feature that keeps the machine independent from the water supply.

During distillation and drying phrases, the machine is self-sufficient, using chilled solvent – at temperatures that can reach -15 C. The same solvent is used for normal dry cleaning, but the system allows the dry cleaner to adjust the solvent temperature for each load, which means a wide range of dry-cleanable garments can be cleaned, the company says.

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

Soft-mount technology is designed to pro-

donini.com | 39-059-697094

<<

Renzacci

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

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

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

The machines also have an optional modem connection to allow for troubleshooting and software upgrades.

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

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

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

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www.americandrycleaner.com

3/20/13 12:34 PM

Digest_page

6/12/12

9:49 AM

Page 1

F

ending Off Hack Attacks

(Photo: ©iStockphoto/PN_Photo)

By Phillip M. Perry

Protect your business’ online back account from fraud

Q

uick. Easy. Efficient. Who doesn’t love online banking? Be aware, though, of the danger: Hackers can access your account, drain your funds and threaten the survival of your business.

The risk is growing. Cyber attacks increased some 24% in the first half of 2012 over the same period the previous year, according to a new report from security firm Symantec. Reason? “Any time the economy goes down, white collar crime goes up,” says Bill McDermott, CEO of Atlanta-based McDermott Financial Solutions. “We’re seeing an increase in corporate account takeovers. It’s a huge problem.”

Banks commonly refuse to indemnify companies for funds stolen from commercial accounts. “A lot of people have the misunderstanding that banks offer to business accounts the protection offered 36

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

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

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

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

3/20/13 12:37 PM

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

www.americandrycleaner.com

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GOOD HABITS. Modern operating systems, with their native security features, can only do so much. Employees must be trained on good computing habits. Here are some of the best: Avoid e-mail attachments — “Three out of four malware attacks come from e-mails with links that are clicked on by recipients,” says Krebs. “If the browser is not fully patched, one click can do it.”

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

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

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

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

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

Some experts suggest dedicating one computer solely to the task of online banking. Keep infections off the computer by prohibiting its use for e-mail or for web surfing other than bank-related sites. “Strip down the computer to whatever software you need and nothing else,” says Krebs.

“And keep it up to date with the latest patches every day; don’t fall behind.”

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

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

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

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

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

Go offline — When finished with a computer for the day, shut it down completely rather than put it in sleep mode.

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

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

It’s not really necessary to commit passwords to memory. “There is a lot of good software to help you manage your passwords,” says Michael Spadaro, president of Help with a Smile, a New York City-based technology support firm serving small businesses. “One of my favorites 38

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

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

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

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

How good is the bank’s Internet defenses? How do the bank’s practices, and the security features it offers business accounts, compare with other institutions?

For example, does it offer a two-step validation, in which an ACH transfer must be approved by a second representative at your office? There are other forms of what is called “multifactor authentication,” in which the bank must receive a backup confirmation from your business, in the form of a voice phone call or e-mail, before honoring a wire transfer.

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

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performance if publicly traded,” he says.

“Read through some of the comments in public message boards. Hint: Many of the posters are employees.”

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

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

WHEN HACKERS STRIKE. Suppose, despite your best efforts and smart practices, a hacker siphons money from your account.

Can you get any back? While it’s highly unlikely that a victimized business will

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recover all of its stolen money, portions can often be saved. “Fraudulent transactions frequently are reversed, so most victims get some money back,” says Krebs.

The secret to recovering your cash? Act fast. “Time is your enemy,” he says. “The longer the time that elapses since a breach, the more money you are likely to lose.”

Don’t wait until the last minute to figure out whom to call in the event of a money loss. Put together a list of vital financial and legal contacts and keep it handy.

Quick action on your part, though, must be matched by your financial institution.

“You have to have a cooperative bank that pulls things together quickly,” says Krebs.

Once your funds have been withdrawn as cash, they are gone for good. O Phillip M. Perry is a freelance writer based in New York City.

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DL I /N C A C O N F E RE N C E Dry cleaning pros exchange best practices, soak up sun during Cancun gathering

Five-Star Brainstorming W

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

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

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

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

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

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

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

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

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

“Some great information came from the sharing done among the cleaners when www.americandrycleaner.com

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(Photo: DLI)

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

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

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

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

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

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

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

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

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

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

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How to Safeguard Your Business Name

(Photo: ©iStockphoto/Yuriy Kirsanov)

By Fred S. Steingold

M

icrosoft. Starbucks. Walmart.

They’re all memorable names.

You can bet that those companies carefully made sure they had exclusive rights to them.

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

So how do you protect the name of your business or service? We’ll look at 42

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

Your decision will depend on many factors, including: • the size of your business • the size of the market in which you operate • the type of product or service you offer • your expectations for growth and expansion Generally, the more customers www.americandrycleaner.com

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

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

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

ing more than meet a few requirements of state law.

Example: Jeff wants to start a local photography studio called “Portraits by Jeff.” He’ll be a sole proprietor. Since his is a small, unincorporated local business, he’s probably safe enough if he just registers his business name at the county level.

(Some states require registration at the state level — and publishing the name in a newspaper.) Jeff probably doesn’t need to spend time and money to register the name as a trademark or service mark. He should, however, check to be sure there are no other photographic studios in his area using the same or a similar name.

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

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

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

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

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

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

Just defending such a case in federal court can cost you upward of $100,000.

Even if you’re sure that you’re in the legal right, you’ll probably wind up changing your business name just to duck the lawsuit.

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

A trademark is a word, phrase, design 44

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or symbol that identifies a product brand.

Examples are Dell computers, Nike shoes, Kodak cameras and Marathon gasoline.

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

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

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

Even if you don’t seek full-fledged trademark protection, it helps to conduct a national name search. That way, you’ll avoid stepping on someone’s toes. O Legal strategies may vary depending on the state in which you live and the specifics of your situation.

Consult your attorney for legal advice.

Fred S. Steingold practices law in Ann Arbor, Mich., for the firm of Hamilton, Judge, Schroer & Steingold, PLC. He is the author of The Legal Guide for Starting and Running a Small Business and The Employer’s Legal Handbook, published by Nolo Press. www.americandrycleaner.com

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Hunt for the Hidden Hanger Did you know that, for more than a decade, American Drycleaner has hidden a small hanger on virtually every cover?

The tradition began in February 2003 as nothing more than a simple, lighthearted way to challenge our readers. And we don’t make it easy, because where’s the fun in that? It can be caped, or plain wire, and size and color varies, but a hanger is always there. So, put on your reading glasses and spend a few extra moments searching this month’s cover.

And if you can’t find it, don’t despair — we’ll give you a clue.

Scanning the QR code below with your mobile device will open a web page that will show you a visual clue. If you don’t have a smart phone, visit americandrycleaner.com/hanger-clue.

Happy hunting!

www.americandrycleaner.com

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in d u s t r y o bs e rv a t i o n s

The Employer/Employee Relationship

L

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

Believe me, if you paid them one and a half times what they would earn at a competitor’s shop, you wouldn’t have created more allegiance.

Money is not the answer. You build allegiance by creating a team.

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

This is tricky, because allegiance walks a fine line. Become overly friendly with an employee and you’ll lose the ability to be his or her boss.

You will have difficulty making the hard decisions that are demanded of a business owner. The crew will take advantage of your softness.

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

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

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Ultimately, your team will become dysfunctional and you will suffer the plight of a harried manager.

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

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

If an employee has their car in the shop, maybe you could lend them one for a few days. You might help a staffer move by loaning use of the company truck and even pitching in on the day of the move. You might let an employee and his bride use your getaway cottage for their honeymoon.

How about sitting down with a longtime worker and listening to his marriage problems? Give him some good advice, and maybe arrange an www.americandrycleaner.com

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

If you co-sign a note, for instance, and What about lending money? Tread carefully, because here is where you could get hurt. ... you don’t want money to come between you.

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

Garnishing the individual’s wages is not an option, because that relationship almost always results in dissatisfaction.

Firing the person causes two problems: you have to replace the worker, which

▲

appointment with someone in the know.

Invite the workforce over on a hot Sunday to use your swimming pool. Hire a staffer’s daughter to baby-sit your kids.

Use your general manager’s brother–inlaw as your plumber. Hire your longtime seamstress’ son to work in the shop during his college break.

Go to bat for a steady worker when he receives a DUI by involving your lawyer.

When an employee’s apartment floods out, arrange for him or her to buy appliances from your appliance dealer friend at a deeply discounted price. Help your faithful longtime worker complete paperwork for a home mortgage.

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

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

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(Photo: © iStockphoto/Alashi)

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

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

If an individual comes to you for a loan, offer a reason why you can’t help.

My money is all tied up in investments. I am saving for my daughter’s wedding. My father needs 24-hour care and my brother and I are paying for it. I am putting two kids through college. Instead, help the staffer find a loan from other sources.

Perhaps you know a banker who might create an arrangement. If the staffer needs a second car, possibly you could figure out a way in which the staffer and his wife could manage one car for a while. Maybe you could help the worker examine her mortgage to figure out a way to take out an equity line of credit. Offer aid without giving out the money.

That’s my advice, because I know from personal experience. Twice, I lent money 48

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

Become a resource for your staffers.

Your assistance will come in handy and will garner much appreciation. Second, you’ll become more involved in their life.

Third, the workers will come to see themselves as part of a team and will want the company to succeed as much as you do.

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

Bend over backward for your people (in everything but money) and they will bend over backward for you. O Howard Scott is a longtime industry writer and dry cleaning consultant, and an H&R Block tax preparer specializing in small businesses. He welcomes questions and comments, and can be reached by writing Howard Scott, Dancing Hill, Pembroke, MA 02359, by calling 781-293-9027 or via e-mail at dancinghill@gmail.com. www.americandrycleaner.com

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Yo u r M o n e y

Consolidating Defined Benefit Plans

T

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

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

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

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

Accumulating multiple IRAs and 401(k)s is not the best investment strategy, according to Nancy Skeans, 50

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

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

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

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

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handled correctly.”

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

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

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

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

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

“All of this is avoided by using a trustee-to-trustee transfer,” says Skeans.

“Since you never touch the money, there is no requirement for the old custodian to withhold taxes. If you are moving money from a 401(k), you have the custodian of the 401(k) transfer the assets directly to www.americandrycleaner.com

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

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

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

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

“They can explain the process thoroughly and help with the paperwork,” says Skeans. O Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult an accountant or tax adviser for advice regarding your particular situation.

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

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ed u c a t i o n & t ra i n i n g C a l e n da r DEC Certification. Two-day NCA course, to be held April 7 and April 14 in Nanuet, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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www.americandrycleaner.com

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DON’T

MAY

OUT

JUNE

MISS HERE’S WHAT’S COMING UP IN AMERICAN DRYCLEANER...

VISIT US at the Clean Show in New Orleans June 20-22 — Booth 4171

Feature: Clean 2013 Show Guide We have complete listings of the exhibitors, educational sessions and events that make Clean the show you can’t afford to miss!

Editorial Submission Deadline — March 15 Feature: Boost Casualwear Sales What you can do to gain more of the dress-down business.

Coin-Op Laundry A self-service laundry could make your plant a comprehensive fabricare center.

NOLA Know-How Here’s what to see and do while you’re in New Orleans for the Clean Show.

Editorial Submission Deadline — April 15

JULY Feature: Customer Connections A dry cleaner’s ability to build customer relationships presents valuable marketing opportunities.

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

Editorial Submission Deadline — May 15

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

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

Editorial Submission Deadline — June 15

SEPTEMBER Want to send a press release or submit a story? Contact Bruce Beggs, editorial director, today! Phone: 312-361-1683 E-mail: bbeggs@americantrademagazines.com

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

Editorial Submission Deadline — July 15

...and much more!

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ar o u n d t h e in d u s t ry In Memoriam:

Norvin L. Pellerin, Pellerin Milnor Corp.

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

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

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

Surviving Pellerin are his wife of 63 years, Sue; two sons, Jim Pellerin and Curtis Pellerin; two daughters, 54

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

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

In Memoriam:

William W. ‘Bill’ Haiges, Haiges Machinery BROWNSBURG, Ind. — William W. “Bill” Haiges, the co-owner and operator of commercial laundry and dry cleaning equipment distributor Haiges Machinery Inc., died Feb. 17 at the age of 66. Haiges oversaw the Indiana division of the company, which is headquartered in Huntley, Ill. He was a 1964 graduate of Dundee (Ill.) Community High School and served in the U.S. Air Force during the Vietnam War. Surviving him are his wife, Victoria; four children, Kimberly HaigesNavarro, Darrin Haiges, Brian Haiges and Timothy Haiges; four stepchildren; and nine grandchildren. Other survivors include his former wife and the mother of his children, Diane Haiges; and two brothers, Robert Haiges and Lee Haiges. www.americandrycleaner.com

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

In Memoriam:

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

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

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

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

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

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

DLI members involved in any com-

▲

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

Headquartered in Germany and Luxembourg, Koblenz & Partner has been provid-

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

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

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

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

“GreenEarth’s international roster has more than doubled in the last two years,” says company President Tim Maxwell.

“And while it is certainly nice to be growing our global footprint, even more important to us is the quality of the partnerships we are making. Like GreenEarth, Koblenz & Partner is committed to making the world a cleaner, safer place through technologies and practical, comprehensive support.”

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

DLI will notify media producers and editors in North America of the program and supply a link to the list so editors may identify a cleaner in their coverage area.

The overall goal, DLI says, is to promote a more positive image for DLI members by emphasizing the positive aspects of the cleaning industry overall.

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

(Photo: Martin Franchises Inc.)

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

New franchisee Vince Aversano was awarded the five-store exclusive develop56

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

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

by CleanSuite™.

Prior to becoming a Martinizing franchisee, Aversano was the head of communications at Rotary International.

“Working for Rotary gave me the chance to meet a lot of business leaders who work tirelessly to make their communities better,” he says.

He is now a volunteer member with Rotary and runs the business side of a dental practice with wife Dr. Laura Aversano along with developing his Martinizing business.

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

Small-business loan program access to expand under proposal WASHINGTON — Borrowers and lenders of U.S. Small Business Associationbacked loans will have greater access to capital and less paperwork as a result of a www.americandrycleaner.com

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

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

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

of their association with other companies. It also would streamline 504 loan applications and reduce paperwork requirements.

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

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

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

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

www.americandrycleaner.com

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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 312-361-1700.

BUSINESS OPPORTUNITIES

EQUIPMENT FOR SALE

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

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

COMPUTER SOFTWARE New or Refurb

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60LB EXPLOSION PROOF MARVEL HYDRO-CARBON D/C MACHINE with filter housings. Model EP-60-2BATH. Machine was purchased in 2003 and is in excellent condition.

Asking $6000 CALL EDDIE AT 540-494-3316

HELP WANTED COMPUTER SYSTEMS Western Wonder Touch $990 (refurbished) $1990 (new) 1-year warranty Perfect for small to medium sized cleaners Various management reports Absolutely reliable, tested systems www.WesternDCcomputer.com 773-878-0150 westernk@msn.com 58

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

Plant Manager: Large drycleaning plant in Oklahoma City, OK. Prefer someone with management and drycleaning plant experience.

Benefits and competitive salary. Email a resume to perryokc@coxinet.net or fax to 405-341-8794. www.americandrycleaner.com

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HELP WANTED

SUEDE & LEATHER SERVICE

Tampa, Florida: Mechanic needed for multi-store operation with high volume and expanding rapidly.

Salary based on experience and know how. Must have at least 3 years experience in a dry cleaning setting. Please apply on-line at qpcleaners.com

PLANTS FOR SALE SELL OR BUY A DRYCLEANER. WE HAVE BUYERS!!!

PATRIOT BUSINESS ADVISORS SPECIALIZES IN SELLING DRYCLEANERS IN NJ, PA, DE & MD. CALL LILIANE AT 267-391-7642.

Price’s Cleaners, Plymouth, IN. Dry-cleaning and shirt laundry. Turn key. Business, building and lot.

Priced to sell. In business 43 years. Lot: 60 X 188 ft. Building: 2702 sq. ft. Corner lot. Busiest street.

Restaurants, church and offices near. Retiring.

574-936-9021.

For more classifieds, visit: AMERICANDRYCLEANER

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REWEAVING SERVICES WITHOUT-A-TRACE WEAVERS—More than 50 years’ experience. We are the experts in silks, knits, French weaving and piece weaving.

Reasonable prices. Send garments for estimate to: 3344 W. Bryn Mawr, Chicago, IL 60659; 800-475-4922; www.withoutatrace.com.

SUEDE & LEATHER SERVICE LEATHER-RICH INC. Since 1977 • High quality cleaning, refinishing & repair Leather, Suede and Fur; • Free shipping in USA and rewards program; FOR MORE INFORMATION: Email: leatherrich@att.net Call 800-236-6996 Route Service in Upper Midwest

www.americandrycleaner.com

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SUPPLIES

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Steam Or Water Replacements Large Inventory • FAST Delivery

800-532-2645 www.comcoil.com See us at Clean Booth 4951

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

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www.americandrycleaner.com

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American Drycleaner and AmericanDrycleaner.com

A Winning Team

Print

Web

E-News

American Drycleaner

AmericanDrycleaner.com

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

is your one-click site for all of the most up-to-date information on the industry today. Stories are updated daily to ensure you’re always informed.

Plus, online tools such as the Distributors Directory and Buyer’s Guide will fulfill all of your plant’s needs.

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

www.americandrycleaner.com

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Advertiser

Page No.

Advertiser

Page No.

A.L. Wilson Chemical Co. . . . . . . . . . . . . . . . 1

Firbimatic . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

Ally Equipment Co. . . . . . . . . . . . . . . . . . . . 39

Global Business Systems . . . . . . . . . . . . . . . 43

Arrow Leathercare Services . . . . . . . . . . . . . 59 bizzie . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Clean Show . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Cleaner Business Systems . . . . . . . . . . . . . . . . 3

Iowa Techniques . . . . . . . . . . . . . . . . . . . . . . 21 Irving Weber Associates . . . . . . . . . . . . . . . . . 5 Luetzow Industries . . . . . . . . . . . . . . . . . . . . 60 Maineline Computer Systems . . . . . . . . . . . IFC

Cleaner’s Supply . . . . . . . . . . . . . . . . . . . . . . 60 Mustang Enterprises . . . . . . . . . . . . . . . . . . . 27 Columbia/ILSA . . . . . . . . . . . . . . . . . . . . . . BC Commercial Coils . . . . . . . . . . . . . . . . . . . . . 60 Consorzio . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Dajisoft . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Dry Cleaning Computer Systems . . . . . . . . . 17 Fabricare Management Systems . . . . . . . . . . . 9 62

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Parker Boiler Co. . . . . . . . . . . . . . . . . . . . . IBC Personal Touch Systems . . . . . . . . . . . . . . . . 58 Renzacci . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 SPOT Business Systems . . . . . . . . . . . . . . . . . 7 Steiner-Atlantic . . . . . . . . . . . . . . . . . . . . . . . 35 www.americandrycleaner.com

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Chewing Gum...

Continued from page 64

50 YEARS AGO. Bill Naill, of Artistic Cleaners & Tuxedo Rental Service in Wichita, Kan., made a gamble a couple of years ago by purchasing 10 tuxedos to rent out, in addition to his dry cleaning business.

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

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

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spotters face when treating chewing gum stains: a hammer. Hubbard explains that the hydrocarbon, milk-like substance from the bully tree used in making chewing gum is both water-soluble and soluble in “dry” solvents. Since the gum gets brittle at cold temperatures, the fix involves placing an ice cube on top of the stain and using a tack hammer to break the gum into pieces. … Cows may soon make an appearance on fashion runways, as a limited amount of a new fabric, called casein fabric, has made its way into the country. The fabric is made from a “cottage cheese”-like substance and spun into fibers with a fixing medium. Though government departments explain that general March 1938 distribution of the product won’t occur for quite some time, the fabric itself is expected to react to dyes and spotting and cleaning agents much like any animal fiber … William Holmes, sales promotion expert, has the key to pull your business away from the red: dramatize every sale. For Holmes, one market that cleaners could look to would be offering upholstery and rug cleaning, which affords cleaners a chance to truly dramatize and sell their service. “Each job should be a demonstration,” says Holmes, who also encourages cleaners to not only explain each step of the cleaning process to customers but also dress the part while performing work. O — Compiled by Carlo Calma American Drycleaner, April 2013

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Wrinkle In Time

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

While both product lines will be marketed separately, Satec will hold responsibility for both brands.

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▲

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

facility. The 9,240-square-foot plant features a bright, free-flowing design, which allows the company to hit a peak week of $20,000 in business.

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

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