American Drycleaner - March 2016

© Copyright 2016 American Trade Magazines All rights reserved.

® March 2016

GAME ON! Assess Your Insurance ‘Risk’

THE FUTURE OF ON-DEMAND SERVICES SPRING CLEANING

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drycleaner drycleaner A M E R I C A N

March 2016

FEATURES

DEPARTMENTS

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up ynew.

order share y is a

Vol. 82, No. 11

(Cover Photo: ©iStockphoto/gcammino)

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The Future of On-Demand Drycleaning Developing a mobile app through which a customer can remotely order drycleaning or laundry service, share preferences and request delivery is a relatively new trend worth exploring.

Bruce Beggs, Editorial Director Game On! Remember playing the game of Risk, marching your armies into neighboring countries to achieve victory? Dry cleaners face ever-shifting business trends, some of which don’t respect borders.

That’s why it’s so important to stay up-to-date on your business insurance needs.

Tim Burke, Editor

American Drycleaner, March 2016

Pre-Inspection

4

Buyer’s Guide Addendum

6

Education & Training Calendar

6

Calendar of Events

8

Management Strategies Spring Cleaning Diana Vollmer

22

Industry Observations Five Major Tax Misconceptions Howard Scott

26

Spotting Tips Breaking Down Cosmetics Stains Martin Young

30

Introducing ...

Burke Named Editor of American Drycleaner

34

Around the Industry

36

Classified Advertising

38

Advertiser Index

39

Wrinkle In Time The Shirt Off His Back

40

NEED HELP FINDING THE HIDDEN HANGER? Scan this QR Code for help in finding the hidden hanger on this month’s cover.

Good luck!

www.americandrycleaner.com

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“Business “Business has never been has never been better.” better.”

“The support from CBS was great. Even before Since consistent updates we2003, signedCBS up, has theygiven were me responsive and flexible andineasy understandThey techhave support, all our at ateam price theirtoapproach. helped that become our industry afford. I would recommend CBS, morecan efficient.” and I have, to anyone who is still wasting their time Brentsystems.

Ramenofsky and money on those over priced POS Boston Cleaners Dan Loesher Sunshine Cleaners

We Speak Cleaner We Speak Cleaner 800.406.9649

800.406.9649 www.cleanerbusiness.com

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P RE - I N SP E CT I O N

When Risk Isn’t a Game

T

he thought of artillery tanks taking aim at my drycleaning business would be enough to keep me up at night. For your sake, I’m glad the tanks pictured on our cover are plastic and only a fraction of the size of real ones.

But the “threat” they represent in the popular board game Risk is real in the sense that dry cleaners incur risk every day. Not to the degree of a mortar shell, certainly, but risk that should not be ignored.

Bruce Beggs That’s where your insurance coverage comes in. Tim Burke, the new editor of American Drycleaner (read our story introducing him on page 34), asked several

Publisher Charles Thompson

National Sales Director Donald Feinstein

cthompson@ATMags.com

dfeinstein@ATMags.com

Editorial Director Bruce Beggs

Digital Media Director Nathan Frerichs

312-361-1680

312-361-1683

312-361-1682

312-361-1681

bbeggs@ATMags.com

nfrerichs@ATMags.com

Editor Tim Burke

Production Manager Roger Napiwocki

312-361-1684 tburke@ATMags.com

insurance experts about what dry cleaners should be aware of when assessing their needs and coverages in order to guard against potential loss. One new area of note is cyber liability coverage.

Our other main feature this month also is cyberbased. The Future of On-Demand Drycleaning Services explores the trend of app-based businesses that are trying to capitalize on consumer desire for convenience. It’s never been easier to remotely order drycleaning service, share preferences and schedule delivery.

I spoke to the developers of three such mobile apps to get a sense of what they offer and where they see the trend going. We also surveyed dry cleaners to see which side of the fence they’re on ADC regarding on-demand services.

Advisory Board Steven Dubinski Lawton Jones Mike Nesbit Herron Rowland Fred Schwarzmann

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

Subscriptions 630-739-0900 x100 www.american drycleaner.com

Contributing Editors Howard Scott Diana Vollmer Martin Young

American Drycleaner (ISSN 0002-8258) is published monthly except Nov/Dec combined. Subscription prices, payment in advance: U.S., 1 year $46.00; 2 years $92.00. Foreign, 1 year $109.00; 2 years $218.00. Single copies $9.00 for U.S., $18.00 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 82, number 11. 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. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2016. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Drycleaner does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Drycleaner or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

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American Drycleaner, March 2016

www.americandrycleaner.com

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B U YE R’ S GU I DE A D D E N D U M

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ue to a technical glitch, updates from some companies weren’t included in the American Drycleaner Buyer’s Guide issue published in February. This Addendum prints their updated listings as intended. — Bruce Beggs, Editorial Director

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ClearWater Tech/ Ecotex

850 Capitolio Way San Luis Obispo, CA 93401 Contact: Marc DeBrum Phone: 805-549-9724 Toll Free: 800-262-0203 ✉ sales@ecotexozone.com www.ecotexozone.com Products & Services: Ozone Laundry Units

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Fabritec International

8145 Holton Dr., Ste. 110 Florence, KY 41042 Contact: Jeff Jordan Phone: 859-781-8200 Toll Free: 800-543-0406 Fax: 859-781-8280 ✉ jeffjordan@fabritec.com www.fabritec.com Products & Services: Advertising & Marketing Services Drycleaning Chemicals Franchises, Licenses Injection Systems Wetcleaning Supplies

Sankosha USA Inc.

8145 Holton Dr., Ste. 110 Florence, KY 41042 Contact: Jeff Jordan Phone: 859-781-8200 Toll Free: 800-543-0406 Fax: 859-781-8280 ✉ jeffjordan@fabritec.com www.fabritec.com Products & Services: Advertising & Marketing Services Drycleaning Chemicals Laundry Chemicals Sizing & Starch Solvents, Alternative Specialty Chemicals Spotting Chemicals

1901 Landmeier Rd. Elk Grove Village, IL 60007 Contact: Wesley Nelson Phone: 847-427-9120 Toll Free: 888-427-9120 Fax: 847-427-9634 ✉ info@sankosha-inc.com www.sankosha-inc.com Products & Services: Bagging Equipment Conveyors Finishing Equipment Form Finishers Form-Finisher Bags Press Pads & Covers Presses Shirt Finishing Equipment Tensioning Finishing Equipment

Henderson Insurance

Stamford, a Division of Fabritec International

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4675 MacArthur Ct. #420 Newport Beach, CA 92660 Contact: Scott Henderson Phone: 949-863-0900 Fax: 949-863-0963 ✉ service@henderson insurance.com www.hendersoninsurance.com Products & Services: Insurance

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Sanitone, a Division of Fabritec International 6

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8145 Holton Dr., Ste. 110 Florence, KY 41042 Contact: Jeff Jordan Phone: 859-781-8200 Toll Free: 800-543-0406 Fax: 859-781-8280 ✉ jeffjordan@fabritec.com www.fabritec.com/stamford Products & Services: Drycleaning Chemicals Specialty Chemicals Spotting Chemicals

American Drycleaner, March 2016

EDUCATION & TRAINING Practical Tips on Growing Your Business, and Florida DEP: What Inspectors Are Looking For. One-day NCA session, to be held April 3 in Delray Beach, Fla. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Basic Spotting 101, Including Alternative Solvents. One-day NCA course, to be held April 17 in Bronx, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

NY State DEC Certification (in English or Spanish). Two-day NCA course, to be held May 1 and May 8 in Bronx, N.Y. Call 212-9673002 or e-mail ncaiclean@aol.com.

Advanced Spotting and Bleaching. Oneday NCA session, to be held May 15 in Bronx, N.Y. Call 212-967-3002 or e-mail ncaiclean@ aol.com.

Avoiding Claims at the Counter. One-day NCA session, to be held June 5 in Nanuet, N.Y. Call 212-967-3002 or e-mail ncaiclean@aol.com.

Introduction to Drycleaning. Five-day DLI course, to be held July 11-15 in Laurel, Md. Call 800-638-2627 or visit www.dlionline.org.

Advanced Drycleaning. Ten-day DLI course, to be held July 18-29 in Laurel, Md. Call 800638-2627 or visit www.dlionline.org.

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

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Speakers set for June 24-26 SEFA show in Jacksonville

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he South Eastern Fabricare Association (SEFA) has set topics and speakers for seminars scheduled as part of its Southern Drycleaners and Launderers Show June 24-26 in Jacksonville, Fla., at the Prime F. Osborn III Convention Center.

A variety of presentations are planned beginning with two programs on Friday, June 24, the day before the show officially opens. These sessions will focus on social media and route service and will be free to SEFA members; non-members will have to pay a nominal fee.

BeCreative360 will provide the expertise for the social media and reputation management program. The company, with roots in the drycleaning industry, plans, designs and writes marketing campaigns to promote customer loyalty through e-mail marketing and brand awareness.

Also on the Friday program, James Peuster of The Route Pro will explain how to take routes to the next level.

The Saturday, June 25, agenda features The Magic of a Touch Point by Trudy Adams, widely known in the drycleaning industry from her days with Cleaner’s Supply, and now the principal at Blue Egg Consulting, which helps create and implement customer relationship programs.

Also on Saturday, two speakers will discuss The Anatomy of a Drycleaning Plant, focusing on the “heart and lungs” of the plant. Mike Campbell, Quincy Compressors, will discuss air compressors, and Michael Leeming, Parker Boiler, will talk about boilers.

The program on Sunday, June 26, will feature two Tennesseans. First, Don Holecek, owner of Crown Cleaners in Knoxville and a SEFA board member, will discuss how to get the most out of association membership.

Then, Linda Say, owner of Nicholson Cleaners in Nashville, will tell attendees how to EARN Your Spot Among the Best. Say was a work-from-home seamstress who became known as the tailor who could fix anything.

She became a branch manager for White Way Cleaners in Nashville in 1993, then purchased Nicholson Cleaners in 1995.

SEFA plans to have shirt finishing and stain removal clinics in the exhibit hall during show hours: 10 a.m. to 5 p.m. on Saturday and 10 a.m. to 3 p.m. on Sunday.

A discounted room rate is available at the Hyatt Regency Riverfront (888-421-1442) by mentioning the Southern Drycleaners and Launderers Show.

For more information on the show, visit SEFA’s website, www.sefa.org.

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American Drycleaner, March 2016

CA L EN D A R Independent Textile Rental Association.

2016 Mid-Year Training Conference & Supplier Exhibits, to be held April 17-19 in Chicago.

Call 706-637-6552.

Southwest Drycleaners Association.

Cleaners Showcase 2016, to be held April 2224 in Fort Worth, Texas. Call 512-873-8195.

Textile Care Allied Trades Association.

Annual Management and Educational Conference, to be held April 27-30 in Ponte Vedra Beach, Fla. Visit www.tcata.org.

Coin Laundry Association. Excellence in Laundry Conference, to be held May 18-19 in Ojai, Calif. Call 800-570-5629.

North Carolina Association of Launderers and Cleaners. Annual Convention, to be held May 27-30 in Wrightsville Beach, N.C. Call 704-689-1301.

Texcare International: World Market for Modern Textile Care. To be held June 1115 in Frankfurt am Main, Germany. Visit www. texcare.com.

Ontario Fabricare Association. 2016 Conference, to be held June 17-18 in Port Credit, Ont., Canada. Call 416-573-1929.

Wisconsin Fabricare Institute. Fitzgerald Scholarship Golf Classic, Summer Conference, Trade Show and Auction, to be held June 21-22 in Mequon, Wis. Call 414-5294707.

South Eastern Fabricare Association.

Southern Drycleaners and Launderers Show, to be held June 24-26 in Jacksonville, Fla. Call 877-707-7332.

California Cleaners Association. Fabricare 2016, to be held Aug. 26-28 in Long Beach, Calif. Call 916-239-4070.

ADC

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The Future of

On-Demand

Drycleaning Services App-based businesses capitalize on consumer desire for convenience

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By Bruce Beggs, Editorial Director

eed to get somewhere but don’t have a car?

Schedule a ride through Uber.

Don’t feel like going out to eat but there’s nothing good in the fridge? Use GrubHub to order from a nearby restaurant and have your meal delivered.

Looking for a birthday gift for a friend? Go shopping on Amazon to find that perfect item and have it shipped right to your door or to theirs.

The ease with which consumers can connect with businesses by using apps on their smartphones or by accessing websites from their personal computers has never been greater.

A January 2014 Pew Research Center survey revealed that 87% of American adults use the Internet. Add to this the proliferation of smartphones — Pew reports that, as of October 2014, 64% of American adults have such a phone — and their increasing functionality places unparalleled tools at a consumer’s fingertips to easily order and customize service experiences.

The concept of offering pickup and delivery as part of one’s drycleaning service certainly isn’t new. But developing an app through which a customer can remotely order drycleaning or laundry service, share preferences and request delivery is a relatively new trend. A number of players have entered the market in hopes of capturing the convenience-driven crowd.

In metropolitan cities like New York, Chicago and San Francisco, or in commuter-heavy areas like Bakersfield, Calif., these businesses will gladly pick up one’s dirty laundry, have it cleaned, and then return their clothes to them for a price.

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The companies behind these drycleaning and laundry service mobile apps either process the goods in their own facility or they partner with a dry cleaner or dry cleaners in the service area to do the cleaning.

American Drycleaner spoke to the developers of three such mobile apps to get a sense of what they offer and where they see on-demand drycleaning services going in the future.

WASHCLUB Rick Rome is the CEO and founder of WashClub, an on-demand laundry, drycleaning and tailoring service that is now available in 14 states and four New York City boroughs. Last month, the company announced the opening of its newest branch in Miami.

WashClub licenses its exclusive, customizable software to brick-andmortar laundry and (continued)

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drycleaning operators across the United States. Licensees are able to offer services to customers via WashClub or their own branded concept.

“Our software is built by an operator for operators,” says Rome, who owns WashClub NYC and offers laundry services to New Yorkers in Manhattan and Brooklyn.

WashClub charges a one-time fee, then receives 5% of all business generated by the software.

“Our interest is aligned with yours,” Rome says.

“There is no competition. If you kill, we get to eat, too. If you don’t kill, we’re starving with you.”

It can be difficult for a traditional laundry or drycleaning business to grow organically without acquiring another similar business, he says, and the growth of the Internet is “all about extending your storefront virtually.”

In many cases, the businesses that become WashClub licensees already have the necessary laundry or drycleaning equipment and facility in place, and the software enables them to utilize their excess capacity, according to Rome.

He doesn’t agree with the assertion that on-demand

“

The customer, in this day and age, they want that kind of instant experience...

”

— Nick Chapleau, CEO, Starchup services like his may simply be an “urban phenomenon.”

“That’s not true at all. I don’t know anybody in the suburbs who likes doing laundry anymore than someone likes doing laundry or dry cleaning in the city. It’s just about service and convenience.”

STARCHUP Starchup is a new entry among the drycleaning/laundry app start-ups, having gone public in September. CEO Nick Chapleau co-founded it with Dan Tobon. Tobon’s father, whom Chapleau says works in marketing in the (continued) Laundromat industry, gave them the idea.

WILL YOU CATCH THE ON-DEMAND WAVE? Do you see on-demand business as the wave of the future for dry cleaners?

“It will definitely increase,” answers a dry cleaner in response to the latest American Drycleaner Your Views survey. “Not sure about 90% but it will definitely be something you have to offer or you will miss out.”

Forty percent of the dry cleaners who responded to that survey question answered ‘yes,’ they thought on-demand business is the wave of the future. One cleaner opines: “Yes, it will kill the drop store business.”

A little more than one-quarter of dry cleaners surveyed (26.3%) say they offer a website or mobile app that customers can use to order/ schedule drycleaning pickup and delivery. Slightly more than one-third (35.7%) of those who don’t offer on-demand drycleaning services say they are considering doing so.

Of those who offer on-demand services, about half (45.8%) say their drycleaning business has grown from use of the on-demand technology.

And of those who have a website or app, 38.9% developed their own service while the remaining 61.1% used an outside company.

Wave of the future, you say? Another dry cleaner in the survey says: “Possibly, but I am very wary of the efficiency/costs of providing this service as dry cleaners historically have never

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charged for delivery.”

Yet another states: “45% of our business is scheduled pickup and delivery (P/D). I don’t see on-demand P/D as being very efficient, unless you can blend it into the existing route system.

We still require minimums for route service. That won’t likely change.”

Survey comments from dry cleaners show there’s a divide in opinion. While one dry cleaner states that it is a “positive trend, making it convenient,” another indicates that “on-demand is tough for a dry cleaner that is trying to efficiently manage routes. I think most frequent users of dry cleaning (the customers we all want) are happy with a routine of once or twice a week … and on-demand is not as important. The young techsavvy crowd is more suited to on-demand and as they grow into their 30s and 40s, it will be more of an issue.”

The availability of on-demand service is “positive, yes, but in our experience, customers still prefer coming into our stores,” one cleaner points out.

The American Drycleaner Your Views survey is a snapshot of the trade audience’s views and should not be considered scientific. Qualified subscribers to American Drycleaner e-mails are invited to participate in a survey they can complete anonymously online.

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Rather than establishing a service that could be seen as being in competition with existing laundries and dry cleaners, Chapleau says, “we knew there were thousands of excellent laundry and drycleaning operators out there in the market who have been doing it for years, might not be able to build a mobile app or might not have that kind of technological ability, but can certainly clean your clothes better than anybody else.”

“

There are phenomenal opportunities ... for those who embrace the technology and the paradigm swings that are happening...

— Rick Rome, CEO, WashClub

”

Starchup focuses on connecting a dry cleaner or laundry with customers they may not otherwise reach.

“The goal is to connect you with customers you might be losing to someone who has better technology. Because of Starchup, you’re able to reach those customers and possibly widen your demographic reach generally by getting a younger, busier customer base who might forgo [dry cleaning] because it’s a pain in the butt but if you’re going to come pick up their clothes at their house, they’ll do it.”

There is no set-up fee. Each Starchup client receives a free trial, then a paid trial before full pricing — a monthly subscription fee plus a “small percentage” of each software-driven transaction — takes effect, according to Chapleau. Clients can choose from among different tiers of service to find a package that suits them.

“We work with all of our vendors to make sure that the service is both economically beneficial to them as well as us so that, in the end, everybody wins,” he says.

“We’re really trying to grow the pie for everybody and then share in that value.”

CD One Price Cleaners and Tide (“Tidespin”) are examples of companies that utilize the Starchup platform, according to Chapleau.

“I’ve been very impressed by how savvy and smart a lot of operators out there are,” Chapleau says. “All cleaners have their own way of doing things. You go from one cleaner to the next and they do it a little bit differently. We’ve tried to build in as much flexibility in our platform as we possibly can.”

WASHIO Washio arrived on the scene in March 2013 after several months of software development. Jordan Metzner 14

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and his co-founder came up with the concept based on experiences both had had while living abroad. Metzner owned restaurants in Latin America and, while living in Argentina, would have his clothes washed in a “laundry service center.”

“I had this idea that if people could use the service and get the clothes picked up from their home, it would be an incredibly valuable service,” Metzner says. “When I came back to the States, I realized that by-the-pound laundry service was not something readily available except within New York.”

Washio currently operates in Los Angeles, San Francisco, Washington D.C., Chicago, Boston and Oakland.

It partners with an individual laundry provider and an individual dry cleaner in each market that does the garment cleaning, Metzner says.

“I think that might change over time as our size changes and our geographical spread changes,” he says.

“Currently, in most cities we operate in, we really focus on the city center, so all of our service partners are kind of by the center of the city.”

While Washio’s developers have identified convenience as their No. 1 value proposition, Metzner says the Washio service model offers much more, including itemized receipts via e-mail and 24/7 customer support.

“I don’t want to compare ourselves to Uber, per se, but Uber isn’t just better because you don’t have to call for the car,” Metzner says. “It’s better for a multitude of reasons. Not having to call for the car is just one of many.”

WHAT LIES AHEAD Each of these services’ creators believes that the use of technology to provide or enhance on-demand drycleaning and laundry services is really only getting started.

“The customer, in this day and age, they want that kind of instant experience, or at least want the convenience wherever they can find it,” Chapleau says. “We all have less time in the day than we ever have before and anything like this that can help me save time and energy is something that customers like.”

“Technology is changing the world around us,” Metzner says. “Even to this day, [doing] laundry is still a very manual process that has not been automated as many other things in our society have. I think, over time, you’ll see that technology could provide a significant benefit to lowering the cost and allowing the increase of service in the physical location to spread as well.”

“There are phenomenal opportunities on the horizon for those who embrace the technology and the paradigm swings that are happening in our society today,” says Rome. “Whether they like it or not is a another story, but this is the reality of what’s happening.”

ADC www.americandrycleaner.com

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GAME ON! Stay current on insurance needs for your business

RR

By Tim Burke, Editor

emember playing the game of Risk? You marched your armies into neighboring countries to achieve victory. You placed yourself in strategically sound positions to deal with any of the changing forces coming your way.

Drycleaning business owners face ever-shifting trends, too — rolling across their industry landscape. Some of those risks don’t respect borders. Wirelessly through the air they arrive. Call them cyber villains or cyber liabilities, whatever you wish, but they are here now. They can reach your business through the wired systems, devices and websites linked to sales.

Cyber threats is not the only area to be concerned with, of course, but as dry cleaners look to diversify like never before, and seek out more revenue streams, they need to be aware of rising risks and of insurance coverage choices.

What types of insurance are you familiar with? Maybe you carry environmental impairment liability to cover exposure to chemicals and detergents. You might carry automobile insurance for exposure based on either new routes or an increase in pickup/delivery services. And equipment coverage provides your business with protection from sudden and accidental breakdown.

New opportunities also usher in new coverage needs.

For instance, dry cleaners might be looking to grow their commercial accounts as they search out new customers in hotel, restaurant and institutional industries. Other cleaners might be trying to add or expand their restoration services. And the new addition of amenities to the store itself

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(Photo: ©iStockphoto/gcammino)

can include more than just beverages and snacks, such as a full café that offers a menu of bistro items. Prioritizing customer convenience is further highlighted by ordering via mobile app or website.

To understand what the insurance picture looks like today, American Drycleaner asked a number of insurance experts who serve the drycleaning industry to talk about what dry cleaners should be aware of when assessing their needs and coverages in order to guard against potential loss.

There isn’t just one risk, of course. There are many risks to consider, and just as many insurance policies to get your business protected properly.

WIRELESS WORLD “Cyber liability coverage is becoming more of a necessity to both large and small businesses, including dry cleaners, who often keep personal information on their customers, like credit cards,” notes Adam Weber, president, Irving Weber Associates, out of Smithtown, N.Y. He points out that more and more responsibility for the protection of privacy and personal data has fallen on business owners in recent years and that cyber liability coverage protects the business owner.

“Cyber liability and data compromise coverage offers protection for liability that arises out of unauthorized use of, or unauthorized access to, electronic data within your business,” he says. (continued) This type of coverage, Weber further www.americandrycleaner.com

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“

Most business owners are aware of the standard coverages … the challenge is understanding the details.

”

notes, also provides protection for liability claims for spreading a virus, malicious code, computer theft, extortion, or any unintentional act, mistake, error or omission made by you or your employees while performing their job. Reading the news headlines today, we see stories of businesses large and small that have taken a cyber hit.

John O’Brien, certified insurance counselor with John Devries Insurance Agency, St. Joseph, Mich., comments that, “If you back up your information on the web or store your information on a server that may host a website, then this creates a new challenge to protect your client data, credit cards and other private information you may have.”

There are many other liabilities to be aware of. There is also employment practices liability, which, O’Brien notes, “has continued to be a concern for larger organizations, with the Equal Employment Opportunity Commission (EEOC) reviewing employee complaints for wrongful termination, wage, age or sex, race, color, religion, na-

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tional origin discrimination, and retaliation if you file a complaint.”

Cyber risk isn’t the only new wrinkle going on in dry cleaning, notes Scott Henderson, president, Henderson Insurance, Newport Beach, Calif. “Landlords and business referral sources are becoming substantially more restrictive and specific on their insurance requirements. Dry cleaners now need to pay better attention to the insurance requirement notices than they had to in the past.”

Henderson says it is common for these entities to add new requirements — such as waivers of subrogation (meaning substitution) or higher liability limits — and not give the dry cleaner clear, advance notice of the changes.

“And if the dry cleaner does not provide the entity with the proper certificate of insurance one day, seemingly without notice, they may not be allowed access to the desirable corporate office route location that they currently enjoy.”

Concerning equipment breakdown coverage, he adds that policies will protect against “sudden and accidental” breakdown of equipment but “wear and tear” is not covered. Many dry cleaners, Henderson cautions, “read the ‘Equipment Breakdown’ coverage line on their policy and think that it is similar to an equipment warranty, and (continued) expect the coverage to repair their broken

www.americandrycleaner.com

2/19/16 3:06 PM

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equipment, regardless of what happens to it.”

“Sometimes, the dry cleaner even forgoes normal customary maintenance,” Henderson points out, “because they mistakenly believe that the insurance company will pay to repair the equipment when it wears out. This misunderstanding causes frustration. The best practice is to properly maintain all equipment, and to realize that when equipment breaks, it is perfectly acceptable to report that breakdown to your insurance company, but to realize that, likely, the breakdown will not be covered.”

Pollution liability is a hot topic right now, too, says Fran Chamberlain, program manager at CLG Insurance, Nanuet, N.Y. “As more cleaners convert from perc to other solvents, landlords are looking for protection for claims that may have occurred over the past five, 10 or

“

Vital to assessing risk is asking the right questions.

”

50 years,” she says. “Unfortunately, insurers will not retroactively cover any pollution liability claims made on a newly purchased policy. We are working with the National Cleaners Association (NCA) to recommend some alternative solutions for their members.”

LIVING IT RIGHT Carrying the right amount of building insurance is another of today’s topics to discuss with your drycleaning insurance specialist. Dealing with leases and loans can make you aware of your insurance requirements in a hurry.

“Leases and third-party contracts are getting more and more complicated,” says Ann Hawkins, vice president, NIE Insurance, St. Louis. “Landlords want higher limits of insurance, sometimes umbrella coverage, and require equipment breakdown coverage (and) are now asking to see it on the certificates of insurance. Some of their other requests can be cost-prohibitive, especially for a start-up.”

Hawkins indicates that on the commercial accounts mentioned earlier, the requirements can be staggering.

“Sometimes,” she notes, “we need to add five or six entities as additional insured in order for our customer to bid on a contract.”

One of the big challenges, she says, is getting small dry cleaners to insure to value.

“When they are renting, they sometimes don’t realize that they need to cover improvements and betterments and they lowball the contents limit.”

She explains that they should add cost of improvements, 20

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delivery, installation and taxes into the limit, as all of those items are covered. A coinsurance penalty will apply if the customer does not insure to value.

“Customers are, for the most part, aware of their insurance needs,” Hawkins says. “But we educate them on items that are not addressed in those contracts, such as offpremises coverage for utility service outages, state requirements for workers’ compensation, and boiler inspections.

We also advise them if we think they are not carrying enough or are carrying too much building insurance. We can do a replacement cost survey on the building, which will give them an accurate limit.”

Dry cleaners today continue to diversify, Weber notes.

With many more becoming involved in restoration work, routes, fur cleaning, storage and coin-ops, he reminds that “all of these come with their unique risks, challenges and responsibilities that go beyond the core drycleaning business. Any of these can add revenue to the business if handled properly and responsibly.”

However, they can also add exposure that the business may never have contemplated. Owners should put a lot of thought and planning into expanding their operations, what they can truly handle, and what protections they should have in place, both physically and through insurance, to be out in front of these added exposures, he says.

Schedule time annually to review your policies and make sense of what you need. Most business owners are aware of the standard coverages such as fire, equipment, inventory and liability. The challenge, according to Weber, is understanding the details of coverage.

“For example: Does your storage coverage only respond if there is a valuation on the ticket? Do you have to issue a proper storage receipt or have a specific storage enclosure for coverage to be provided?”

Some other questions to which you may need to know the answers: Have you kept up with what the actual replacement limits are on your equipment and not just the price you paid when it was purchased? Does your customer goods coverage include damage in processing and mysterious disappearance?

Vital to assessing risk is asking the right questions.

There are lots of details that usually are not considered.

“The drycleaning industry keeps getting more complicated,” says Bob Aikin, president of NIE. “There are more solvents to choose from. Equipment keeps getting more sophisticated and expensive. Regulators keep getting more aggressive. Effective marketing practices keep changing.

Dry cleaners are forced to wear many hats.”

Busy as drycleaning owners are, taking time to assess exposure to liability and getting the right coverages is key.

Be sure you are playing the game to the best of your ability; don’t find out too late that the game is playing you. ADC www.americandrycleaner.com

2/19/16 3:00 PM

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8/11/15 5:10 PM

M A N A G E M E N T ST RAT E G IES

Spring Cleaning T

ticipants design them! You can provide he arrival of spring is always wela realistic budget to plan around. If you come. It brings renewed energy in Gear for skiing, need to kick-start their creative juices, nature and optimism in people. snowboarding, give them an example to get started Depending upon your geographic locaand encourage them to come up with tion, the drycleaning cycle can introduce sledding and snowtheir own ideas that they will buy into the beginning of a seasonal uptick in mobile riding all fit because it is theirs. business or the end of the busiest season into this cleaning/ Use something visual that represents all year. Regardless of your locale, it storing/freshening the season, such as paper daffodils, to typically is an opportunity for a breakout mark each storage sale for the month or in sales because customers are changing cycle... each wardrobe cleaning of more than wardrobes and household décor. eight pieces. Pin the flowers on the If spring has not been historically a back wall so the staff can see the garden expand. This is busy season for you, it is time to rethink and not a contest for customers, so keep it for staff viewing redesign your promotional efforts to take advantage of only. this natural opportunity. Subtle and not-so-subtle reMake every participant an instant winner at each step minders should abound in your stores, on your hang tags, of the program, even if they only win a fancy cupcake or on your flat-screens, and throughout specialty coffee as each sale is made. At the end of the your promotional media and materipromotion, allow each associate to choose a gift card to als. Reminder phone calls and/or their favorite store in an amount based on their number electronic communication generated of sales. Award the sales associate with the most accuby your customer communications mulated flowers a large prize that you identified at the system should prompt your custombeginning, again preferably by the group. ers and prospects to bring in items Reward the store with the most sales with its choice of for cleaning before storing them for prize that fits your budget parameters. Let the sales team the summer.

Diana Vollmer select benchmark rewards for meeting target levels durIf you offer storage, this is the ing the month, i.e. at 25 sales, the manager has to serve time to exhibit storage boxes in your facilities to remind them a meal or do something funny. The rewards that customers and staff members that the time is right to team members select themselves are much greater incentake advantage of storing seasonal items out of sight in tives than those chosen by management. a climate-controlled environment. If you don’t provide Equally important to capitalizing on seasonal changes storage, or they don’t want that service, emphasize the is to maximize resulting sales, which allows the entire necessity of cleaning everything before storing it at any company to get involved. Employees all know prospects location. for change-of-season services because everyone has TEAM BUILDING, TOO coats, sweaters and jackets, so these orders need not only This is a perfect opportunity to get your team on your arrive over the counter but via route as well. side of the profit-and-loss equation by making everyone Don’t forget to involve your outside joint-venture parta winner through incentives to excel in sales. Contests ners in this effort. Your specialty retailers know which of and games with rewards can be an effective way to fire their customers have cashmere coats that need your speup your team for a major promotional effort. The incencial care. Your fine linen store keeps a list of customers tives should include individual rewards as well as team who have bought fine tablecloths that need professional rewards. processing.

These incentive games for staff work better if the par(continued) Shoe stores can refer owners of Uggs,

“

”

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M A N AG E M E N T S T RAT E G IES

suedes and other materials that need salt stains removed.

Home décor stores need a resource that can maintain the accent items they sell. These partners will be happy to share your professional service with their customers to help preserve their fine textile investments.

Of course, this approach is not just relevant for spring.

It will work for any promotional effort you are making, and it trains your sales associates to talk to customers about all of the services that you offer.

GET FRESH In addition to wardrobe changeover, there are many other opportunities for you to help your customers prepare for the upcoming warm weather.

Gear for skiing, snowboarding, sledding and snowmobile riding all fit into this cleaning/storing/freshening cycle and customers need to be reminded that the time is now for you to take care of these specialty clothing items.

Household linens need care now since the heavy blankets and duvets are being replaced by lighter, brighter bedding that is more appropriate to the warmer temperatures.

Both heavy and light items need to be prepared for the changeover by cleaning, pressing or both.

Upcoming holidays need preparation as well. Whether Easter, Nowruz, Passover or any other of the numerous special holidays that occur during the season, spring frequently brings out fine linens, including heirlooms that need special handling and care. Be sure to remind your customers and prospects of the holiday needs well in advance because you need time to pick up, process and return these treasures so they are ready when the table is set.

As socializing moves outdoors, patio cushions need cleaning and freshening for the season. This is a process not easily done at home and most of your customers are unaware that you can provide them with this valuable service.

Tents and sleeping bags are emerging from their winter storage, usually from areas in the home that aren’t conducive to dry, fresh-smelling environments. Again, a reminder in advance will prevent that first night of camping from enveloping the sleeper with an aroma reminis24

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“

This is a perfect time to send a reminder saying: ‘Your rug was last cleaned on [date] and it’s overdue for a cleaning.’

”

cent of the basement, attic or garage.

Car mats have ground-in winter dirt and grime, including salt and other snow-melting chemicals that are difficult to remove at home. Do your customers a favor and let them know you can quickly make these mats look like new.

Doormats, too, are ready for a spring cleaning. This is a great opportunity to pick up several more pieces from every single household. These mats are easy for you to process in your large machines or on hanging racks with a hose system.

This can be a lucrative year-round business requiring little effort on the part of your route drivers. No one wants to put these dirty mats in their car and bring them to you, even if they know you provide the service. Use it as a way to expand your route business.

The same is true of area rugs throughout the home and office. This is a perfect time to send a reminder saying: “Your rug was last cleaned on [date] and it’s overdue for a cleaning. Let us pick it up and clean out the winter dirt, odors and pet hair. We’ll deliver it back to you looking and smelling fresh and clean. Pickup and delivery are complimentary.”

A little thought about the broad range of opportunities available and how to capitalize on them can make the spring season a profitable time indeed. Be sure to include it as an agenda item for your annual strategic planning retreat with your management team.

ADC Methods for Management (MfM) has served the drycleaning and laundry industry with affordable management expertise and improved profitability since 1953. For assistance with change-of-season planning, contact Diana Vollmer at dvollmer@mfmi.com or call her at 415-577-6544. www.americandrycleaner.com

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I N D U S T RY OB S E RVAT I O NS

Five Major Tax Misconceptions D

oing taxes professionally for more than 20 years, I’ve come across several misconceptions that need to be shared with you. It always surprises me how erroneous notions exist, even among those with large incomes who pay the most taxes, percentage-wise. Of all people, you would think successful businesspeople would understand their own taxes.

When I ran my business, my accountant would give me the figures and I would write the checks.

One year, my accountant gave me vouchers for $23,000 and I never even questioned his calculations.

Was that the correct sum, or was it $21,000? Could I have saved $2,000? What we’re concerned Howard Scott about here is the merchant’s reasoning when dealing with income taxes.

Often, perceptions do not match reality. Let’s look at five common misconceptions: MISCONCEPTION 1: THE HIGHER YOUR INCOME, THE HIGHER YOUR OVERALL TAX BRACKET It always amazes me how people don’t understand tax brackets. A successful dry cleaner approached me with this question: “I make quite a bit of money, so I don’t want my wife working because she’ll push my income into the next bracket.”

“What do you mean?” I asked.

“Well, I’m at the 28% bracket now and a few more thousand would put me over into the 33% bracket. It would be pretty silly to pay $20,000 more in taxes just for letting her make $10,000.”

He thought $10,000 more in income would put him into the next tax bracket, and all his income would be taxed at the higher bracket. He didn’t know that he would be taxed at the 33% only on the marginal income and that the rest of his income would be taxed at no more than 28%.

This is how our progressive income tax system works.

Several tax steps exist. At each step of your income level, you pay the appropriate tax percentage. Let’s illustrate with an example.

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A dry cleaner earns $151,200 from his business. His wife wants to sell cosmetics at craft fairs, bringing in an extra $5,000 profit. Coincidently, that $151,200 income level is the point where the rate switches from 25% to 28%. Will all the income be taxed at 28%? Of course not. Only income above $151,200 is taxed at 28%.

Here’s how it breaks down through the various tax brackets: • On the first $18,450, the family pays 10%, or $1,845; • On the next $56,450 (which tops out at $74,900), the family pays 15%, or $8,467; • On the next $76,300 (which tops out at the $151,200 in our example), the family pays 25%, or $19,075.

• With the craft fair income, the family passes from the 25% step into the 28% step. So on this $5,000 income, the family pays 28% or $1,400.

Certainly that’s real money, but it doesn’t affect the taxes on the first $151,200. This is the basic law of our progressive tax system and it is important to understand its implications. What it means is that every taxpayer pays the identical amount of taxes for the same income level.

MISCONCEPTION 2: TAXES ARE SOMETHING WE SHOULD TRY TO AVOID No one loves paying taxes. It’s true that 47% of the population does not pay federal taxes (although many of those individuals do pay Social Security and state taxes because they have lower exemptions). But taxes do keep our society healthy and vibrant.

Taxes keep up the infrastructure, maintain our highways, provide peace in our land, support law and order, guarantee public safety, ensure that our foodstuffs are safe, provide a safety net for the poor and keep the flow of enterprise rolling. I don’t want to sound superpatriotic, but you must do your part and pay your share of taxes.

For those of you who argue that graft and corruption rule the land and politicians only want us to pay taxes because they want their share, I respond yes, graft, corruption and mismanagement can exist in our institutions. But there is much that is right and functional at the same time.

Our democratic system has worked for more than 200 years to provide us with an ever-rising (continued) www.americandrycleaner.com

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I N D U S T RY OB S E RVAT I O NS

standard of living. When 65% of the population owns their own homes, that’s prosperity with a capital P. When an individual can open a business and build it into a large enter-

prise, that indicates an open society full of opportunity for all.

MISCONCEPTION 3: FILING FOR A HOME OFFICE SENDS UP A RED FLAG

Many dry cleaners are afraid to set up a home office because they don’t want to confuse their home with their business. Nothing could be further from the truth. A home office deduction is an expense that is comprised of a proportionate portion of housing costs: mortgage, property taxes, utilities, repairs, improvements and depreciation. The only requirement is that the space is used exclusively and regularly for doing administrative chores.

If you work at home, then you should set aside space for, say, a desk and file cabinet, to reserve the space for your business work. That’s a legitimate home office. Even if you have an office at work, you can still have an office at home, and in turn, receive a home office deduction.

In the old days (30 years ago), a home office deduction was a red flag.

No more. These days, with more and more individuals working at home at least some of the time, a home office is a fully accepted deduction.

MISCONCEPTION 4: THE IRS DOESN’T AUDIT SMALL COMPANIES BECAUSE IT ISN’T WORTH ITS WHILE The Internal Revenue Service audits all kinds of situations, from solo practitioners to large corporations.

Their reasons for auditing are varied: the firm’s results are vastly different from past years; the company is out of line with companies in the same industry; there seems a gross disparity between lifestyle living and business performance; there’s a big push on that industry; or, simply because the IRS undertakes a number of random audits.

The IRS also targets ‘company types’ to focus on. For example,

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they might choose companies with six to 15 employees. So one is never safe from the IRS. Audits go on all the time.

One dry cleaner who was audited by the IRS and found to be hiding a great deal of profit was then assessed $135,000 in penalty and interest. He hired a lawyer to fight the assessment, but lost the court case.

By this time, he was in debt $200,000. He then proceeded to lose his business, his wife and his house, in that order. Don’t let this happen to you. If you are making money, pay your share of taxes.

MISCONCEPTION 5: THE RICH AVOID PAYING TAXES, SO WHY SHOULDN’T I? Before 1986, this was true. There was a provision in the tax code that said passive loss could reduce income to zero. For example, real estate was one way to achieve great passive losses. The person invests in real estate that puts out huge paper losses during the first several years. Result: the business owner’s $200,000 income was offset by $200,000 in losses, resulting in zero tax liability.

But President Ronald Reagan created the Income Tax Reform Act of 1986, in which he limited passive losses to $25,000. In one fell swoop, the greatest personal income tax loophole was eliminated.

For the rich taxpayer, there are automatic reductions in credits as income rises. In addition, Alternative Minimum Tax (AMT), an autonomous tax system, is superimposed above the conventional system to make sure the taxpayer pays at the 26% tax rate for a part of his income. As a result, most rich people, with incomes at $300,000, pay 30% federal, state and Social Security taxes.

Wealthy families making $500,000 pay 35% taxes. To compare, a family in the $100,000 inwww.americandrycleaner.com

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come range averages 18% to 20%.

One might argue that the wealthy can afford to pay more than 35%, or that 20% is a far more onerous burden on the $100,000 income earner.

That’s a subject for debate. But one can no longer say that the rich don’t pay a lot of taxes. For the $300,000 income-earner, his $90,000, or 30%, is onerous to him. Furthermore, he feels he’s worked hard for his money

and is a useful economic resource.

ADC Have a good tax season.

Howard Scott is a longtime industry writer and drycleaning consultant, and a former H&R Block tax preparer who specialized in small businesses. He welcomes questions and comments, and can be reached by writing him at Dancing Hill, Pembroke, MA 02359, by calling 781-293-9027 or via e-mail at dancinghill@gmail.com.

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S P OT T I N G T I PS

Breaking Down Cosmetics Stains M

akeup on garments was and is a problem for the garment care professional. We all know cosmetics accentuate the face and help skin to attain that desired glow. We also realize it takes time and effort to look our best. But the makers of beauty products give little thought to what happens when those same products accidentally, but invariably, find their way onto people’s clothing.

From the standpoint of the cleaner/ spotter, cosmetics should be viewed as a blend of a carrier and some form of pigment. In the case of lipstick, that carrier is a wax-type substance.

Mascara is an oily liquid, and a base is a combination of both pigment and liquid. I strongly recommend that Martin Young

cosmetic stains be pre-spotted on the dry side before being exposed to the immersion cleaning system.

The potential severe complications brought about when the immersion system falls short of removing the entire stain can render supplemental post-spotting ineffective.

You can rest assured that terms like “smudge-proof” and “long-lasting coverage” can only mean trouble for the garment care professional.

Items on today’s market include, but are not limited to, night cream, moisturizing lotion, base, blush, mascara, eye liner, eye shadow, lipstick and lip gloss. (Nail polish is not included here, as it is a subject that requires an article of its own.) Most cosmetics are developed and marketed with a minimum of consideration given to the impact of contact between the cosmetic and a garment.

Several observations and informed assumptions must

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be made to increase the effectiveness of your stain removal efforts. The most obvious characteristic of the stain will be any pigment (color) that is present and the intensity of that color. The brighter the color usually means the greater the chance that pigment will remain after the “carrier” is gone.

Another characteristic to check is the level to which the stain has penetrated the fabric. It would be nice if the stain was always sitting nicely on the fabric surface, but many cosmetics are formulated to penetrate deeply and “enrich” the skin. This also means that it will be embedded in the fabric. When you apply your chemical tool to the stain, wait a second or two to observe to what extent the stain breaks down before any mechanical action is applied.

I have found that most of the night creams and body lotions are colorless on garments, but they appear to darken the stained area. These stains are found inside the collar and the front placket (the opening at the top of the shirt or trouser). These stains are usually solvent-soluble, but it is best to apply a general pre-spotter to loosen the stain before cleaning. The problem to avoid is accepting less that total removal since the area is inside and only slightly darker than the normal color. On tough stains, you should move on to your paint-oil-grease (POG) removal to achieve total stain eradication.

Lipstick, lip liner and lip gloss contain pigment. The risk of your actions causing that pigment to set should always be taken into consideration. Break down the carrier on the dry side, knowing that as the carrier is flushed, it will carry away a majority of the pigment. It is still a good mindset to approach these particular cosmetics as colored wax.

Apply a good POG remover over the solid portion of the board and then tamp the stain to drive the bristles into it, penetrating the surface and carrying the POG into the stain. When the POG alone no longer achieves results, you can add a few drops of amyl acetate to act as a co-solvent in further breaking down the stain.

When the POG is no longer effective on the stain, proceed with your solvent immersion processing. Any remaining pigment can be removed by using spot bleaching at the board or for larger areas, and an (continued)

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S PO T T I N G T I PS

immersion bleach bath.

I usually start with sodium perborate, then move on to titanium sulfate for blue dyes and ink, and sodium hydrosulfite for red dyes and berry stains. Chlorine bleach has its place, but it is never my first choice when bleaching, and it is never used on protein fibers.

Mascara, eye liner and eye shadow are found in the darker shades of brown and black. I have adopted the habit of treating eye liner and mascara as an insoluble stain.

Place the stain over the solid portion of the spotting board and tamp lightly with a slop spotter or general prespotter. Apply an oily-type paint remover to lubricate and break down the stain. Tamp lightly until the stain is floating on the pre-spotting solution. Dry-clean to flush the stain from the garment.

The toughest of the cosmetic stains is the base that is applied before the other makeup. It is formulated to even skin tone and contains both lotion and pigment. The lotion

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contributes to penetration, the pigment contributes color.

The initial action is to work the stain much like lipstick, using a general pre-spotter and a good POG. But since the lotion has carried the stain deeper into the fabric, tamping time and effort should be increased. White blouses will often require soaking in a bleach bath of sodium hydrosulfite to complete a superior restoration.

Cosmetics are far too close to paint to ignore the similarities. If you do a good job on those stains found on dresses and blouses, more suits and shirts are sure to follow. Raising the ticket total goes a long way toward ADC making your business a success.

Martin L. Young Jr. has been an industry consultant and trainer for 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.

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2/17/16 5:29 PM

I N T RO D U C I N G . . .

Burke named editor of American Drycleaner

A

merican Trade Magazines LLC, the parent company of American Drycleaner, has hired Tim Burke as the magazine’s new editor. He reports to Editorial Director Bruce Beggs.

Burke is a publishing professional with more than two decades of experience as a magazine editor, freelance writer and print production specialist.

He has covered markets as diverse as public safety, criminal justice, healthcare and fraternal societies.

“We’re excited to have Tim onboard with us,” says Charlie Thompson, president and publisher of American Trade Magazines LLC. “He brings years of true journalism experience and a fresh perspective to the coverage of our industry. I think our readers will be excited to see the work he produces.”

“I want to build on the great strengths of American Drycleaner already in place and help bring the drycleaning industry’s best stories to the pages of the magazine and its website,” says Burke. “I’m excited to be here and look forward to meeting Burke and talking with readers and associates in the business.”

Burke and his wife of 30 years, Ann, have three college-age children: daughters Alissa and Amy, and son Jack.

Burke can be reached at tburke@atmags.com, ADC 312-361-1684.

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with permanent barcode and text only clothing labels.

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www.americandrycleaner.com

2/19/16 2:46 PM

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A R O U N D T H E I N D U S T RY

Chortkoff celebrates 70 years in the industry Highlighted by a vintage 1946 GMC delivery truck parked at his store — just like the one he drove for his father’s cleaners — Milt Chortkoff recently celebrated 70 years in the drycleaning industry Feb. 15-29.

Chortkoff, who turns 87 this year, is the owner of Milt & Edie’s Drycleaners & Tailoring Center in Burbank, Calif. He was just 9 months old when the stock market crashed in 1929, and times were tough for the son of an immigrant tailor growing up in Brooklyn.

In 1946, after his family moved to Los Angeles and his father bought Hollyway Cleaners, the 17-year-old began delivering laundry and cleaning around Echo Park and Silverlake.

“Seven decades doing something that you love to do is an epic achievement worth celebrating and Milt deserves to be honored,” says Michael Shader, director of special

ies of themselves around the company’s premises, with staff members, or with the newly restored delivery truck and then post the images on Facebook.

During the celebration, Shader said he hoped for “a lot of photos with the vintage truck since it was such a labor of love finding the exact model that Milt drove back in 1946 and overhauling it to be a testament to Milt’s accomplishment.” Shader noted that it took more than three months to refurbish the vehicle, once it was shipped to Burbank from where it was found in Alabama.

Lapels Dry Cleaning opens newest store in Massachusetts Lapels Dry Cleaning opened a new franchise location in Wakefield, Mass., in early January, the company reports.

Ribbon-cutting took place at an afternoon reception with representatives and members of the Wakefield-Lynnfield Chamber of Commerce on hand to welcome the owners and staff.

“The support from new customers and the business community has been wonderful,” says Kevin Dao, who owns Lapels Dry Cleaning of Wakefield with Lien Tang and Thanh Tran. “Lapels Dry Cleaning has been

Milt and Edie Chortkoff stand in front of a fully restored 1946 GMC truck, a tribute to Milt’s 70 years experience in the drycleaning industry. (Photo: Milt & Edie’s Drycleaners & Tailoring Center)

projects. “We have a lot of promotions taking place for this milestone event.” Those were to include giveaways of lint rollers and selfie sticks, Shader indicated.

The selfie sticks were sure to come in handy for another celebratory promotion: customers were to have $10 in free services credited to their accounts if they took self36

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Owners and employees, along with guests from the local Chamber of Commerce, pose in front of the newly opened Lapels Dry Cleaning in Wakefield, Mass. (Photo: Lapels Dry Cleaning) www.americandrycleaner.com

2/19/16 2:43 PM

ABC welcomes social media pro Fitzpatrick Independent certification entity America’s Best Cleaners (ABC) recently hired popular social media speaker, trainer and author Peg Fitzpatrick as head of social strategy.

Fitzpatrick Fitzpatrick has worked with global brands and leaders in social media, including spearheading successful social media campaigns for Motorola, Audi, Canva, Google and Virgin as well as having been a brand ambassador for Kimpton Hotels, ABC says. www.americandrycleaner.com

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messaging and engagement to further assist our affiliates in communicating with existing and future clients.

“Social media marketing is no longer a choice but the way business is being done and, as usual, ABC is at the forefront of industry trends and offering value to its affiliates in every possible way,” Fitzpatrick says.

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USA

She has built an engaged following on social media of more than 1 million followers across Facebook, Twitter, Instagram, LinkedIn, Google+, Pinterest and YouTube, ABC adds.

Partner and Managing Director Chris White says that ABC’s “new social media strategy, developed in conjunction with Fitzpatrick, will allow for rich, consumer-targeted

World Market for Modern Textile Care June 11 – 15, 2016, Frankfurt, Germany

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very well-received at our existing location in Boston (Boston Trilogy). Today’s turnout and response makes us feel even better about our decision to open a store here.”

Guests toured the store and drycleaning plant, received a “Welcome” package that featured a VIP dry cleaning bag, and took part in a raffle for gift cards.

In other company news, Lapels announced that it has expanded into Canada, marking its second major international development. The franchisor also recently signed a master franchise agreement with the Bani Hashim Trading Company to open 11 Lapels stores in Qatar over the next three years.

“I’m not sure how many times Qatar and Canada come up in the same conversation, but it’s a great example of the rapid growth in development we have seen in all parts of the world,” says Kevin Dubois, CEO of Lapels Dry Cleaning.

Even bigger. Even broader. Texcare International 2016.

The world’s leading trade show for the laundry, cleaning and textile rental sectors is the number one venue for the entire industry. Your chance to get information on – and inspiration from – the latest trends, talking points and issues driving the market: digitization, automation, energy and resource efficiency, and of course innovations in textiles. For all the latest news and information, go to www.texcare.com Can’t miss event: The Texcare Forum will feature high-caliber presentations to help you further create new business opportunities. info@usa.messefrankfurt.com Tel. 770.984.8016

New: Texcare in Halls 8 and 9!

American Drycleaner, March 2016

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2016 RATES: One- to five-time rate: $2.05 per word, boldface $2.15 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.

DEADLINE: Ads must be received by the 1st of the preceding month.

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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.

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PARTS FOR SALE

For example, for a June ad, the closing date is May 1st.

PAYMENT FOR CLASSIFIED ADS: Must accompany order.

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.

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Air World, Inc.. . . . . . . . . . . . . . . . . . 29

Mustang Enterprises. . . . . . . . . . . . . . 33

Ally Equipment Co. . . . . . . . . . . . . . 18

Newhouse Specialty Co. . . . . . . . . . . 39

Arrow Leathercare Services . . . . . . . 39

NIE Insurance . . . . . . . . . . . . . . . . . . 23

Cleaner’s Supply . . . . . . . . . . . . . . . . 39 12/8/14 4:19 PM Columbia/ILSA

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CRDN. . . . . . . . . . . . . . . . . . . . . . . . . 31 Dajisoft. . . . . . . . . . . . . . . . . . . . . . . . 11 EzProducts . . . . . . . . . . . . . . . . . . . . . 34 Fabricare Management Systems . . . . . 9 Firbimatic. . . . . . . . . . . . . . . . . . . . . . 19 Global Business Systems . . . . . . . . . . 32

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800-532-2645 www.comcoil.com

Methods for Management . . . . . . . . . 38

Commercial Coils . . . . . . . . . . . . . . . 39

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Steam Or Water Replacements Large Inventory • FAST Delivery

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

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SUPPLIES

Laundry/Dry Cleaning Coils

O’Mara Brothers Equipment . . . . . . . 30 Parker Boiler Co. . . . . . . . . . . . . . . IBC Parts Pros . . . . . . . . . . . . . . . . . . . . . . 38 PROS Parts. . . . . . . . . . . . . . . . . . . . . 38 QuickSort . . . . . . . . . . . . . . . . . . . . . . 21 R&B Wire Products . . . . . . . . . . . . . . 28 Realstar . . . . . . . . . . . . . . . . . . . . . . . 25 Scan Q . . . . . . . . . . . . . . . . . . . . . . . . 13 Southwest Drycleaners Assn. . . . . . . 35

Iowa Techniques . . . . . . . . . . . . . . . . . 5

SPOT Business Systems . . . . . . . . . . . 7

Irving Weber Associates . . . . . . . . . . 27

Texcare International . . . . . . . . . . . . . 37

Luetzow Industries. . . . . . . . . . . . . . . 39

Union Drycleaning Products . . . . . . . 17

Maineline Computer Systems . . . . .IFC

Unisec USA . . . . . . . . . . . . . . . . . . . . 15

American Drycleaner, March 2016

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2/22/16 2:15 PM

W R I N KL E I N T I M E

The Shirt Off His Back 10 YEARS AGO. Drycleaning stores are frequently targeted by crime, according to the most recent survey appearing on the Wire, American Drycleaner’s e-mail newsletter, with 42.9% of respondents reporting that their operations have been hit by crime at some point in the past.

Asked what types of crimes their stores had experienced, four out of five (79.2%) cited a property crime such as burglary or vandalism, while 41.7% said they had been targeted by an in-person robbery of cash or merchandise.

Roughly 17% have been the victims of a fraud or confidence game that cheated the business, and 12.5% cited employee theft. Only 4.2% reported a physical assault or serious violent crime. ... An unseasonably warm winter had shoppers dipping into their savings and spending their Christmas gift cards. January retail sales excluding autos jumped 2.2%, the Commerce Department says — the largest increase in more than six years and more than double economists’ forecasts.

25 YEARS AGO. To help keep the Environmental Protection Agency (EPA) on the right track regarding the regulation of perchloroethylene, IFI’s assistant general manager/vice president, Bill Fisher, presented comments on the drycleaning industry’s position at a January meeting of the National Air Pollution Control Techniques Advisory Committee.

NAPCTAC serves as an independent body to review EPA Air Office proposals for new regulations and standards. …

Pellerin Milnor Corp.’s management and employees in suburban New Orleans recently began tying yellow ribbons March 1991 and bows in prominent areas of the factory and have participated in drives to collect items such as batteries, soap and sanitary supplies for troops in the Persian Gulf. The effort was made to show concern for the employees who have left for the Gulf and to provide visible support for employees whose family members have also gone.

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50 YEARS AGO. As a switch from all the complaints these days about drifting and pirated employees, it’s good to hear about Maxine Davis. She was recently leaving the parking lot at Charm Cleaners, La Grange, Ill., where she’s worked for eight years, when she saw a customer driving away with a purse left lying on top of her car.

Davis drove after the other car and tried to attract the woman’s attention, but during the pursuit, Davis saw the purse fall off. She stopped to pick it up and lost the lady in the other car. She took it home and upon examining it found a telephone bill with the owner’s name, Mrs. Alton L. Murray, and address. She called Murray and told her she could get the purse at Charm Cleaners the next morning. … A shirt that surely won’t come in for laundering was in the news recently in Oakland, Calif.

A judge ordered Dr. James M. Harris, a veterinarian, to pay $1,500 in fees to the attorney who helped Harris’ wife get her divorce. The vet made it clear how he felt by making the final $75 payment on the shirt right off his back. He wrote a check on it for $75. The bank cashed it.

Attorney Nat Frankel said, “I endorsed it very neatly; the doctor may want to hang it on his wall.”

75 YEARS AGO. A news item in the Louisville Times describes the life of members of Battery E at Camp Shelby, Miss., including Pvt. Gerald E. Amos, formerly employed at the drycleaning plant of Herbert T. Mountjoy in Madison, Ind. “Pride and joy of the regiment and always trotted out for examination are Pvt. Gerald ‘Bunny’ Amos, a dry cleaner and one of the biggest men in the division, and Pvt. Melvin ‘Mosshead’ Lockridge, one of the fattest. Amos, who weighs 225 pounds and stands 6 feet, 2½ inches, has as yet been unable to get an issue of denims to fit him. ‘Mosshead’ is only 5 feet, 2½ inches tall, but he tips the beam at 209 pounds.” … An ad in the Ann Arbor (Mich.) News announced that the Boys Washington Club would be buying old hangers, using coupons redeemable in dry cleaning. Greene’s, prominent Ann Arbor cleaner, was paying the boys in cash for all the hangers they collected during the campaign, so that they might earn their trip to Washington, D.C. ADC — Compiled by Tim Burke, Editor

www.americandrycleaner.com

2/19/16 2:40 PM

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We expect 15 to 25 years from our We expect 15 to 25 years from our interchangeable tube bundles, and interchangeable tube bundles, and 30 to 40 years of life our more out 30 to 40 years of life our more out the boiler. the boiler.

Indirect Indirect Fired Fired Water Water Heaters Heaters 209-211 Series 209-211 Series We normally expect 10-25 years We normally expect 10-25 years out of the copper heat exchangout of the copper heat exchanger, 30 to 40 years out of the boiler. er, 30 to 40 years out of the boiler.

Thermal Thermal Liquid Liquid Heaters Heaters 207 207 Series Series

We expect 30 to 50 years out of We expect 30 to 50 years out of our thermal fluid heater models our thermal fluid heater models 209-211 Series 209-211WH600 Series Indirect Water Heater Shown Model Model WH600 Indirect Water Heater Shown On all of the above units we have continWe are asked by many new and existing customers on what is our projected life On all of the above units we have continWe are asked byproducts. many newWe and customers on what is our projected lifewe ued to build, and will continue to have expectancy of our areexisting not always the lowest initial price but know ued to build, and will continue to have expectancy of our products.

We are not always the lowest initial price but know we available any part of the pressure vessel, have one of the lowest cost of ownership of any boiler manufactured in North America. available any part of the pressure vessel, have one of the lowest cost of ownership of any boiler manufactured in North America. burners, cabinet, and controls meaning These facts are based on our 90 plus years of boiler manufacturing, feedback and burners, anda controls These facts from are based onusers, our 90service plus years of boiler manufacturing, feedback and that for cabinet, as long as customermeaning wants, experiences our end departments, and all of our representatives that asbe long astoa customer wants, experiences our end These users, life service departments, and of our being representatives theyfor will able infinitely repair and dealers from worldwide. spans are based on ourallboilers installed they will be able to infinitely repair and dealers worldwide.

These life spans are based on our boilers being installed their equipment rather than replace the properly, and do receive our minimal recommended care, are applied to the correct their equipmentequipment. rather than replace the properly, and do receive our minimal recommended care, are applied to the correct application, and include the proper maintenance and water treatment programs. equipment. application, and include the proper maintenance and water treatment programs.

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