American Drycleaner - March 2018

© Copyright 2018 American Trade Magazines All rights reserved.

® March 2018

■ HAPPY GAPPY ■ FACING TAX ‘REFORM’

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2/20/18 4:54 PM

Maineline Computer Systems Choose Your Direction

1-800-354-2525

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Learn more about Compassmax Crescent 2018 at our website www.compassmax.com “Compassmax nailed it again! With the new CRM and Texting features interacting with customers has never been easier.”

-Tonny Walden, Walden Cleaners

“The online user portal has simplified the pickup and delivery process for our customers. It is simple to use and manage, and has become a profit center.”

-Jason Loeb, Sudsies Dry Cleaners

Same company. Same team.

Better Software.

“Our pressers are producing more pieces with better quality using the Compassmax Piece Tracking module. The integration with our assembly and dispatch conveyors is reliable, flexible and efficient.”

-David Gianfrancesco, Courtesy Cleaners

“The new scanning at the point of delivery feature is a prime example of less is more. It is simple enough that everybody can use and provides all the data we need to provide over the top service to our clients.”

-Jordan Wood, Davis Imperial Cleaners “The new route prepay process that Maineline developed and just rolled out is outstanding! This saves us so much time each day as we can now batch and charge out all the route deliveries due for the next day at once. It has also saved us on collections situations. ” -Jon Simon, Parkway Custom Drycleaning

“Compassmax made our switch to cloud based Microsoft Azure a dream come true. The conversion was extremely well-supported and we no longer have to manage a primary server and back-up server.”

-Dave Coyle, In the Bag Cleaners

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1/19/18 7:09 PM

Drycleaning Stain Removal Has Never Been So

Easy!

Spray improved EasyGo onto soiled areas before drycleaning.

Stains and soil disappear right in the wheel. For more difficult stains, use on the spotting board before or after cleaning. EasyGo is also an excellent leveling agent.

EasyGo now flushes freely in all drycleaning solvents, including GreenEarth®, Perc, Hydrocarbon and K4.

And it's still eco-friendly...California compliant, chlorinated-solvent and NPE free, biodegradable and non-combustible.

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Become a STAIN WIZARD at ALWilson.com

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To learn more, visit ALWilson.com or call 800-526-1188 A. L. WILSON CHEMICAL CO.

12/5/17 3:09 PM

drycleaner drycleaner A M E R I C A N

March 2018

Vol. 84, No. 11

FEATURES

DEPARTMENTS

(Photo: La Única Dry Cleaners)

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Wow ’Em Wreathed in fire towers Zozobra, in a Southwestern mural painted by a local Santa Fe, N.M., artist that attracts customers to La Única Dry Cleaners. Your store’s curb appeal can work in many ways, and that’s just one. Come explore other ways of grabbing the attention of passersby and wowing them with that It factor that is absolutely necessary when you only have one chance to impress.

Tim Burke, Editor

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Facing Tax ‘Reform’ Drycleaning owners can look for tax reductions on their 2018 taxes through the recently passed Tax Cuts and Jobs Act (TCJA). A writer, columnist and author with more than 25 years experience with business taxes and finance explains the changes in equipment write-offs and more. But is TCJA as reform-minded as it seems? Find out.

Mark E. Battersby

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American Drycleaner, March 2018

Pre-Inspection Spring Talk

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Happy Gappy Generation Gap: Reaching Younger Customers Tim Burke

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Get Set, Get Wet Wet Cleaning — Part 1: New Dryer Tech Helps Raise the ‘Wet’ Game Jeff Quail

10

Management Strategies Retail is Reality Diana Vollmer

28

Spotting Tips Slam That Stain Martin Young

32

Industry Observations Money Whisperer Howard Scott

36

Product News

39

Around the Industry

40

Off the Cuff Get to Know: Dave Coyle

41

Yarns Spun Here Woolly

43

Classified Advertising

46

Advertiser Index

47

Wrinkle in Time

48

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

2/20/18 4:56 PM

“Business has never been “Business has neverbetter.” 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 “Ibecome don’t have rely on anybody for information. moretoefficient.”

I can see immediately what I have for inventory, Brent Ramenofsky orders and accounts receivable.”

Boston Cleaners Becky Afendoulis, Owner of Afendoulis Cleaners

We Speak Cleaner 800.406.9649 We Speak Cleaner

www.cleanerbusiness.com 800.406.9649

sales@cleanerbusiness.com

sales@cleanerbusiness.com

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www.cleanerbusiness.com

12/18/14 9:02 AM

P RE - I N SP E CT I O N

Spring Talk S

pring is a time for themes: renewal, blooming, youthfulness. Today, I’m simply asking a few of you what’s on your mind. You know, how are you doing?

A drycleaning operator on the West Coast told me sudden rising costs of a lease at renewal time can be a real profit-stomper. Don’t be unprepared.

A drycleaning owner in the Midwest told me that expanding their services to new locations such as stores in small towns has proven to be a sudden blossoming of business.

An operator on the East Coast told me he’s taken over as the next-in-line in his family cleaners and wants to introduce apps and e-mail, showing youthful “oomph.”

In this issue, the feature Wow ’Em, on curb appeal, three drycleaning owners talk about that one, all-important chance to catch a passing customer’s eye. Check out the front cover for some ‘It’ Tim Burke factor at play! The feature Happy-Gappy gives tips to reach your younger customers. There are also special features, your three favorite columnists, a new Off the Cuff, and more. We are energized and happy to serve ADC you with refreshing new springtime content.

CORRECTION

A caption published in Up From the Ashes, the January 2018 article featuring Brothers Cleaners, grand prize winner in the American Drycleaner Plant Design Awards, did not accurately describe the piece of equipment that was shown.

The Brothers Cleaners plant utilizes two boilers: a 50-horsepower model, and a 70hp model equipped with an economizer to capture waste heat for use in heating laundry water. While the photo published shows the 50-hp model, the caption references the 70-hp model with economizer.

American Drycleaner regrets the error and apologizes for any inconvenience it may have caused.

ADC 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 84, 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, 2018. 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 2018

Publisher Charles Thompson 312-361-1680

cthompson@ATMags.com

Associate Publisher/ National Sales Director Donald Feinstein 312-361-1682

dfeinstein@ATMags.com

Editorial Director Bruce Beggs 312-361-1683

bbeggs@ATMags.com

Editor Tim Burke

312-361-1684

tburke@ATMags.com

Digital Media Director Nathan Frerichs 312-361-1681

nfrerichs@ATMags.com

Production Manager Roger Napiwocki Advisory Board Mike Bleier Steven Dubinski John-Claude Hallak Mike Nesbit Herron Rowland Fred Schwarzmann Beth Shader Ellen Tuchman Rothmann Contributing Editors Howard Scott Diana Vollmer Martin Young Office Information Main: 312-361-1700 Subscriptions 630-739-0900 x100 www.american drycleaner.com

www.americandrycleaner.com

2/21/18 9:12 AM

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11/24/14 12:33 2:25 PM 11/26/14 PM

HAPPY GAPPY

Orange, Calif.-based Kona Cleaners’ managers and team leaders are all smiles. They know the power of connecting with customers, including millennials who rely on apps and social media to do business. Front row (from left): Eric, Oscar, Tony, and owner Bobby Patel.

Middle row (from left): Flor, Amanda, Emma, Rosa, Valeria, Beverly, Laly, Sandy, Vivian, Ana, Faye and Kamini (Bobby Patel’s wife). Back row (from left): Dave, general manager, Karla, Shavon and Maria. (Photo: Kona Cleaners)

Generation Gap: Reaching Younger Customers

D

By Tim Burke, Editor

o you text in complete sentences? Do you think Twitter and Snapchat are “newfangled?”

Look in a mirror. Pinch your cheek. You might be caught in the newest, quote-unquote, generation gap. You know, out of touch with Gen X/Gen Y customers for their clothes-cleaning needs.

Bobby Patel, owner of Kona Cleaners in Orange, Calif., and Drycleaning & Laundry Institute (DLI) district director of the California Cleaners Association, sees differences in the younger generations.

“When something goes wrong, they are vocal on Yelp, Google, and social media,” he points out. “They

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American Drycleaner, March 2018

want everything instantly. They are impatient. They are always on a time crunch. They don’t need the human interaction.”

He also describes the new-gen customer as being not as loyal, unlike previous generations.

But how important is it for drycleaning operators to reach and connect with these new customers?

“It is extremely important to court millennials,” Patel says. “These are the customers we are going to deal with for a long time. Millennials are going to go to businesses that they perceive to be cool, technologically advanced, and provide a good value.”

So, technology reaches them. Patel (continued) www.americandrycleaner.com

2/20/18 4:58 PM

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1/30/18 4:56 PM

This photo taken during a holiday party shows the smiling team of Minneapolis- and San Franciscobased Mulberrys Garment Care, where owner Dan Miller exclaims: “I’m extremely bullish on technology. I think with younger users, more is always better when it comes to technology.” (Photo: Mulberrys)

explains: “We are constantly tweaking our website to have a modern vibe. We use SMS/e-mail for order-ready alerts. We have an app, and on it we have a feature that the client can use to alert us they are on the way so that we can have the order retrieved from the conveyor and ready when they arrive.”

He adds that Kona wants to explore 24-hour service using lockers.

Since this generation does not respond to any kind of traditional mailers, Patel relates, the only way to reach this client is through an online presence.

“We have had a huge success in reaching this client base through cultivating positive ratings on Yelp and Google, and coupon usage via our mobile app is wellreceived,” he says.

The app might be the most important tool you will develop in your business this year.

APP IT UP “The most success we’ve had reaching younger customers has been through our mobile app, which allows customers to order pickup and delivery on-demand and monitor the status of their order,” explains Dan Miler, CEO of Mulberrys Garment Care, a toxin-free dry cleaner that he founded in Minneapolis in 2009, now with 15 locations in the Twin Cities and San Francisco Bay area.

“Younger people are accustomed to being able to get anything with the touch of a button on their smartphone and monitor progress as it unfolds. Allowing them to do that with their dry cleaning and laundry is just a logical extension of the interactions they’re used to,” he says.

What are some of the issues today with the younger Gen X and Gen Y customers?

“The two big differences I see between younger and 8

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American Drycleaner, March 2018

older customers are in the clothes they clean and how they like to drop their clothing off.

“Younger customers tend to do more shirt laundry and wash-and-fold, whereas older customers tend to do more dry cleaning. Younger customers also prefer delivery versus coming into the stores.”

Reaching out and connecting with these customers is key, Miller notes: “Younger customers are the future of our industry so it’s critical to be aware of their needs and preferences.”

Technology comes into play in a big way today with millennials.

“I’m extremely bullish on technology. I think with younger users, more is always better when it comes to technology,” he relates.

“We use e-mail, text, and mobile push notifications to let our customers know about deals, order status, and other updates. While no one technology is a silver bullet, I believe that the full range of technology provides a distinct user experience,” Miller says.

His tip to success in this area: “The biggest secret I have is to look at leaders in other industries. The more you can match the experience that an Amazon or Uber is providing their customers, the more comfortable those younger customers are going to be using your service.”

About the generation gap and the opportunity drycleaning owners have to handle millennials’ clothescleaning needs, Patel sums it all up: “This generation is not going to own washers, dryers or an iron.”

The gap is real. Being the “go-to” cleaner that has it all, from wash-dry-fold to apps, is how you’ll work and thrive in that gap. And that’s gap control. I mean #gapcontrol. You get it now.

ADC www.americandrycleaner.com

2/20/18 4:58 PM

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8/18/17 3:20 PM

WET CLEANING — PART ONE

GET SET, GET WET

(Photo: Cia Gould/Unsplash)

New dryer tech helps raise the ‘wet’ game

By Jeff Quail

H

ighly programmable wetcleaning machines have been on the market for years. But, they haven’t been utilized to their fullest potential because their partner dryers were seriously lacking.

These traditional tumble dryers made it difficult to dry delicate items, such as silks, wools and linens, without damaging them. So, delicate items coming in the door were either air-dried, which took a lot of time and space, or dry-cleaned.

New dryer technology, however, is changing the industry’s perception of wet cleaning. For the first time, wet cleaning is a viable processing option for virtually any garment or fabric type. It’s also a great technique for catapulting plant throughput and business opportunity.

Why are the new “wetcleaning” dryers the answer? Because they are completely different than traditional tumble dryers.

As you likely know, garments Jeff Quail are most vulnerable when they are fully saturated with water or nearly dry. The new dryers give operators the ability to remove moisture quickly, without tumbling, by controlling g-force and drum action.

When garments are wet, the drum must spin with just enough g-force so the garments will cling to the drum, rather than fall and tumble from top to bottom. Additionally, new dryers can hit high drum temperatures extremely quickly in order to evaporate moisture without

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as much tumbling, and programmable moisture-sensing ensures items dry to correct moisture levels.

Look for dryers with phased control over the drying process. Each phase should allow programmability of drum rotation speed, drum rotation interval, moisture level, timed reversing, input air temperature, drying temperature, heating temperature, drying time and time limit.

Thanks to today’s technologies, plants can wet-clean quickly and cost-effectively.

For example, a plant utilizing a 60-pound-capacity wetcleaning machine and 60-pound dryer (new technology) can process (wash/dry/finish/package) 90 pounds of garments in 75 minutes. If that plant used a 60-poundcapacity drycleaning machine instead, it would take 75 minutes to process the 60 pounds. (See graphic on page 12.)

Moreover, wet cleaning outperforms dry cleaning without the cost, space, or potential negative environmental impact. When compared with dry cleaning, wet cleaning takes a 70% smaller initial investment, and the system occupies a smaller footprint.

GAME ON While historically wet cleaning was not comparable to dry cleaning in terms of results and production, I believe now it is. And, by adding or expanding wet cleaning, traditional dry cleaners are drastically elevating production and, in doing so, creating opportunity.

Most textile care plants use wet cleaning for 10-30% of what they process. By turning that up a few notches, really good things can happen. (continued) www.americandrycleaner.com

2/21/18 9:28 AM

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7/12/17 11:42 AM

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Potential differences are depicted between wet cleaning and alternative-solvent dry cleaning.

(Photo: Poseidon Textile Care Systems)

And yes, with the right equipment, fabricare plants are effectively wet-cleaning anything that can be drycleaned. This includes wool coats, suits, skirts and sweaters, as well as silks, taffeta, cotton, GORE-TEX® and linen. Rather than sending out leathers and suedes at $30 to $40 per item, plants are successfully wet-cleaning them for less than a dollar each.

Gary Heflin of Perfect Cleaners, in Detroit, has transformed his business from predominately dry cleaning to predominately wet cleaning. He harnesses new wetcleaning/drying technology in his plant and reports seeing a 50% boost in production and 7% increase in profits.

“Wet cleaning allows us to finish our work a couple of hours sooner in the day and turn off the boiler, which saves a ton of money on gas and labor,” says Heflin.

Other plant owners are investing in wet cleaning to improve throughput and take on new business.

“The technology for wet cleaning has improved so much, we could operate without a drycleaning machine,” says Paul White, owner of Lifestyle Garment Care, in Midland, Mich.

White recently launched Lifestyle Laundry, which caters to area residents looking for wash/dry/fold services, pickup and delivery. He expects Lifestyle Laundry to double current sales volume using strictly wet cleaning.

And at Belding Cleaners, in Grosse Point, Mich., Joe Hebeka never turns anything away. “Our customers trust us to clean their garments perfectly,” he says.

Rather than relying solely on dry cleaning, Belding 12

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Cleaners wet-cleans 20% of incoming items, including wool coats and wedding gowns. “I love wet-cleaning wool coats, because it is a huge timesaver over dry cleaning,” he says.

“Rather than an hour-long drycleaning cycle, wool coats go through an eight-minute wetcleaning cycle and 15-minute dry cycle. Finishing them takes hardly any time. Wet cleaning is very important to our growth, because we can take on more volume and clean a wider variety of items.”

Like the owners mentioned, I believe that as your comfort level grows, you’ll turn up your wetcleaning production and, with it, your profits and opportunity.

Look at all items that come in the door and cherry-pick those you are comfortable wet-cleaning. If needed, make appropriate equipment updates. With experience, your confidence will grow and your share of wet cleaning will increase.

By growing the percentage of items processed via wet cleaning, textile care facilities are maximizing throughput, lowering utility costs, reducing labor hours, marketing a ADC “greener” operation, and enjoying fatter profits.

Jeff Quail, co-owner of Poseidon Textile Care Systems®, is a fabricare, drycleaning and wetcleaning expert with more than 30 years of hands-on industry operations experience. In this, the first of a planned three-part series, Quail unveils technology’s impact on wet cleaning and fabricare. Contact him with questions at jquail@poseidonwetcleaning.com. www.americandrycleaner.com

2/21/18 9:28 AM

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You Only Have One Shot to Grab the Attention of Passersby

By Tim Burke, Editor

V

aya in Spanish means Wow. Hang on to that thought.

Curb appeal can be defined simply as: You know it when you see it.

And when you see it, you feel it. It may be funny, clever, cute, cool, stylish, but it’s got to have It. Many drycleaning owners around the country pride themselves on their unique store look, one that expresses, or captures, what they do, how they do it, and attracts customers to their business.

Let’s hear from three drycleaning owners about the It ingredient that creates their own Wow. First, we’ll swing on down Southwestern United States-way to Santa Fe, the capital of New Mexico, where Route 66 ambles past, bringing tourists and travelers.

The city’s website exclaims, “Artists and other creative dreamers all bring their culture, talents and experience with them and when they meet Santa Fe’s unique blend of Anglo, Spanish and native cultures against a backdrop of the Sangre de Cristo mountains’ majesty and the spectacular sunsets over the Jemez range — nothing short of magic transpires.”

Early Native American inhabitants called it “Dancing Ground of the Sun.” Upon that “dancing ground,” at 647 Cerillos Road, sits a smart-looking, adobe-style building housing a cleaners that draws people to it, sort of like the setting sun or the starry night, not only for the quality of service, but also for the beautiful Spanish-flavored artwork viewed from the street.

Vaya! (Wow) — that mural on the outside wall catches the eye — that’s the first thing.

Then footsteps follow, of people drawing closer. And then comes (continued) the smiles, and lastly the hands that hold the cameras and 14

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Showing plenty of Curb-Wow, Manuel Lopez (right), owner, and his son Javier (Chaz) stand by their attractive Southwesternthemed mural on the east side of their La Única Dry Cleaners in Santa Fe, N.M. (Photo: La Única Dry Cleaners) www.americandrycleaner.com

2/20/18 4:18 PM

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2/6/18 11:12 AM

iPhones that click away with joy and local pride.

Customers enter the business to drop off their clothes at the friendly, family-owned dry cleaner called La Única, which the owner says is Spanish for “the only one.”

Manuel Lopez, the owner of La Única Dry Cleaners, says his mom, Julieta, came up with the name. At the time, he points out, they were the only ones there who offered tailoring, and rug, suede and leather cleaning.

“My father started La Única Dry Cleaners in 1969 in Santa Fe. I was 16 years old at the time and worked alongside him after school and summers. After leaving college, I became his manager and subsequently the owner,” he relates.

About the curb appeal aspect of his store, he says, “Years ago, I installed a giant hanger over the front porch of our building. Our business logo includes a hanger with our name in the middle.”

The imaginative mural is a whole other story, as he relates: “I recently took advantage of a citywide program where kids involved with graffiti were paired with a local artist and encouraged to put their talents to work in a positive way.

“Using only spray paints, a mural depicting various popular characteristics of Santa Fe was painted on my building.

“It has been quite popular for residents and tourists alike. Often, people will stop and take pictures of the mural, some even going as far as to set up tripods for their cameras.

“I will watch from the back door and if I catch their eye, I like to fill them in on all the details behind the painting of the mural. I am very proud of my community and enjoy bragging about it whenever possible.”

There’s strong curb appeal at Emerson Cleaners, located in Emerson, N.J., where third-generation owner Craig Goulian says “a clean, modernlooking storefront is paramount to attracting customers.” (Photo: Emerson Cleaners) 16

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Manuel, with his wife Jolene, indicates that their customers come to their store “because of our service and quality of cleaning. They talk about the mural, only that they like it and locals know what it represents.”

The couple, along with their eldest son Chaz, relate that they have incredibly dedicated customers comprised of mostly Santa Fe locals. When they decided to put the mural up in 2015, they reached out to famed local artist and friend, Sebastian Velasquez (Vela), to paint something that reflected the culture and individuality that makes Santa Fe “the city different.”

Their daughter Juliet describes the mural: “Under a starry Santa Fe night sky, stands the Cathedral Basilica of Saint Francis, watching over the farolito (small paper lantern)-topped walls of the downtown pueblos since 1886, adorned with red and green Hatch chilis, that are the hallmark of the state of New Mexico.

“Wreathed in fire, towers ‘Old Man Gloom’ himself, Zozobra, the paper and firework embodiment of despair, who, since 1920, has been reborn annually and set ablaze on the first night of the historic Fiestas de Santa Fe, carrying with him all regrets of the last year that the locals of Santa Fe have carried, starting a new year fresh with hope and joy.

“The scene is purely Santa Fe, a colorful mix of both religious and mystic history, and one the owners of La Única and their customers couldn’t be more proud of.”

The mural dominates the entire east side of the lightbrown, earth-tone-colored building.

“We tell them about our culture and the pictures that represent this. Our customers and tourists see how proud we are of our business and our reputation in the community and hopefully this reflects in our presentation of this mural,” Manuel explains.

Elements of pride and local flavor aren’t the only things making curb appeal Wow. There’s also being clean, sharplooking, and modern, too.

HEY, GOOD-LOOKIN’ “I feel a clean, modern-looking storefront is paramount to attracting customers if you are in a retail location. If your business exterior is not kept up to date, then your image will reflect that,” notes Craig Goulian, the owner of Emerson Cleaners in Emerson, N.J. “I am the third generation in the drycleaning business started by my grandfather in 1903. This is one of many stores and plants my family has owned through the years.

We have had huge operations running 24/7 365 with a central plant and as many as 30 drop stores in New Jersey and New York City also serving cruise lines and the military, out of Hoboken, during the war years. We have been (continued) in this location since 1986.” www.americandrycleaner.com

2/20/18 4:18 PM

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“It’s absolutely key to building and maintaining existing and new customers with an attractive storefront,” he points out. “If they are shopping around, what else would attract them to your location except the look?”

What are some of the challenges that might face owners modernizing their storefront?

Goulian indicates his own challenge had to do with zoning and obtaining permits. “It’s costly because, for every town council meeting we attend, you need to be represented by a lawyer and an architect. Then there are the variances that need to be approved.”

He mentions that the next biggest challenge was getting signed approval, which he terms the most important, yet hardest part of the process. “After two years of negotiations, I was finally able to install an electronic, window-mounted message sign. That was my greatest accomplishment. I was, and am still, the only business in our town to get that approval.”

“Customers give us very favorable compliments about our exterior and its look,” he adds. “I feel it’s not only the look but how well the grounds are maintained. They go hand in hand.”

He let us in on a secret to success when designing a storefront: “Get and use a professional architect. They have access and knowledge of products and materials you may not be aware of.”

There are still other elements that go into creating the It factor in your drycleaning storefront, including establishing your identity and knowing your market.

I SEE YOU What catches a customer’s eye from the street? Enter Howard Spiro, owner, The Dry Cleaning Factory (DCF), with two stores in Chicago’s Near North suburbs.

“In my former life, I worked in advertising,” Spiro says, “so I really felt a big need to establish and support a distinct brand, including a recognizable logo within the community. Along with brand, we had our call-area designed to be welcoming and able to assist our staff to accommodate the large traffic flow of customers.

“This is definitely noticeable from the street while people are stopped in their cars in traffic. The large windows enable us to promote seasonal specials.”

The DCF, he indicates, was started in 1999 close to its current location as a plant with a retail counter. “We were about 50 feet from the street, with wonderful foot traffic at an intersection with great visibility,” he says.

“About five years ago, the State of Illinois reconfigured the intersection and we were forced to relocate the plant off-site. There was a big challenge in keeping our client base, as we would lose our prominence in the mall, but with some effort and luck, we have been fortunate to keep 18

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our clients and continue to grow,” Spiro says.

What about making your storefront give that great first impression?

“Once a new customer is in the door, we’re often asked if we are part of a large franchise, which may at first be a little unsettling as we are constantly striving on the service side to make people feel as though we are part of the community, which we are,” he relates.

“Now I recognize this as a compliment,” he continues, “as far as first impressions go, because it means that it puts us in the same class as large corporations, which invest heavily in their design, in an effort to convey quality.”

It’s crucial for any retail establishment to initially create a positive visual connection with potential customers. As Spiro points out, “That old saying is still relevant today: ‘You only get one chance to make a first impression.’”

About his customers responding to his storefront look, he says, “People appreciate our simple and clean design.

We try to be careful with our advertising in the windows, as I really want folks to see our foot traffic and the constant movement of customers, as this speaks volumes about our establishment.”

Be strong visually from the window of a passing car or from the sidewalk, like The Dry Cleaning Factory, located in Glenview, Ill., a Near North suburb of Chicago. (Photo: Tim Burke)

Spiro concludes: “Of course, location and parking are primary to any effort, but just because you build it doesn’t mean they will come. That being said, just keep it simple.”

The storefront tips from these three drycleaning owners are to connect with your community, use professionals to design a good-looking store, and keep it simple.

As as you finish reading this article, ask yourself, “How ‘loudly’ is my storefront ‘talking’ to the foot and car traffic going past my drycleaning operation?”

The answer is your level of curb appeal. In any language, make sure It says Wow. ADC www.americandrycleaner.com

2/20/18 4:18 PM

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2/12/18 3:21 PM 2/12/18 3:48 PM

TAX CUTS AND JOBS ACT

Dry Cleaners will look for tax reductions — on 2018 taxes

By Mark E. Battersby

(Photo: Jomar Thomas/Unsplash)

A

re you ready for tax “reform?”

Thanks to the recently passed Tax Cuts and Jobs Act (TCJA), the tax rate for incorporated drycleaning businesses will be reduced from its current 35% to 21% — for the 2018 tax year and thereafter.

Although the business tax cuts are for the most part permanent, the tax cuts for individuals are only temporary, expiring in 2026.

Unfortunately, while regular, “C” corporations will be taxed at a flat 21% tax rate, the majority of small businesses operating as pass-through businesses will face new personal tax rates higher than the corporate tax rate.

Pass-through businesses operating as partnerships, limited liability companies (LLC), “S” corporations and sole proprietorships pass their income to their owners, who pay tax at their individual tax rate.

The TCJA created a 20% deduction that applies to the first $315,000 of income (half that for single taxpayers) 20

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earned by drycleaning businesses operating as passthrough entities.

All businesses under the new income thresholds, regardless of whether they’re considered service professionals or not, can take advantage of the 20% deduction.

For pass-through income above this level, the TCJA places limits on who can qualify for the pass-through deduction, with strong safeguards to ensure that socalled “wage income” does not receive the lower marginal tax rates for business income.

Thus, while providing a deduction for up to 20% of pass-through income, that 20% deduction applies only to business income that has been reduced by the amount of “reasonable compensation” paid the owner, reducing the owner’s effective marginal tax rate to no more than 29.6%.

Lawmakers have not defined “reasonable compensation” as yet. (continued) www.americandrycleaner.com

2/20/18 2:33 PM

LIFESTYLE GARMENT CARE EMBRACES POSEIDON WET CLEANING; LAUNCHES WASH/DRY/FOLD SERVICES A new name. A fresh brand. A state-of-the-art plant. Lifestyle Garment Care (formerly Roth Cleaners), in Midland, Mich., is transforming. Paul White, a veteran textile care expert, purchased the business from his father 30 years ago. Since then, he’s witnessed major industry changes; among them the emergence of wet cleaning and its potential in today’s society.

“We wanted our business name to represent who we are and what we do,” said White. “We provide ‘Garment Care to fit your Lifestyle’.”

just load, select a program number and Spurred by enthusiasm to grow wet press start. Chemicals are automatically cleaning revenue, White outfitted a section injected, according to White. Items move of the new plant with a mix of Poseidon from wet cleaning into the Poseidon Dryer, Textile Care Systems® (Poseidon) softand finally, to finishing. The dryer features mount wet cleaning machines and dryers. moisture-sensing technology, “The technology for wet cleaning drum-rotation control and has improved so much, we We can wet timed reversing to safely could operate without a clean, dry and dry virtually any item dry cleaning machine,” finish a suit in one type, including gowns, said White. “We always hour. Poseidon allows coats, dresses and sweaters. do what we think is us to wet clean challenging “Items come out of the professionally best for garments like wool suits dryer soft and wrinkle each garment.” and wedding gowns free with just enough Lifestyle Garment without worry. moisture that the presser Care now processes - Paul White, Owner Lifestyle Cleaners doesn’t have to do much 80 percent of all with it,” said White. This incoming garments using the Poseidon wet saves time and energy over traditional dry cleaning machines; the cleaning. “We can wet clean, remaining 20 percent is dry dry and finish a suit in one hour,” said cleaned. Programmability makes it possible White. “Poseidon allows us to wet clean to wet clean everything from silks, wools and challenging garments like wool suits and cashmeres to cottons, linens and synthetics.

Poseidon Wet Cleaning Machines offer wedding gowns without worry. It allows me complete control over my 20 pre-programmed cycles and up to 79 equipment and my destiny.” individually modifiable cycles. All variables Amped about the future, White are programmable, including water will soon debut Lifestyle Laundry temperature by degree, wash rotation speed and duration, wash rotation combinations, Care — an offshoot of Lifestyle water levels, bath cool-down by degree, and Garment Care — that caters to area residents looking for wash/dry/fold extract speeds up to 400 G-force. Operators

POSEIDON LifestyleAdvertorial-ADC.indd 1 ADC_Full Page.indd 1

services, pickup and delivery.

Operating out of the same location, Lifestyle Laundry Care wash/dry/fold will complement White’s already booming garment care/dry cleaning business, which is the largest in the Great Lakes Bay region. In doing so, Lifestyle Laundry Care will further harness the potential of the company’s Poseidon wet cleaning equipment.

Once launched, White expects wet cleaning revenue to significantly increase current sales volume. In a single shift, his Poseidon equipment has the potential to serve 30 families and process 1,600 pounds of wet cleaned wash/dry/fold laundry per day.

Read full story at poseidonwetcleaning.com.

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8/16/17 10:43 AM 8/16/17 11:24 AM

systems, fire prevention alarms EQUIPMENT WRITE-OFF and security systems qualify Unlike in past years when a The tax rate for under the new Section 179 rules, drycleaning business was reproviding another opportunity quired to claim depreciation, incorporated for dry cleaners that actually spreading the recovery of their need equipment. equipment costs over several drycleaning years, many businesses will now businesses will be be able to fully and immediately QUALIFIED PROPERTY deduct the cost of certain equipWRITE-OFFS GONE reduced from its ment. Even more notable, this The shorter depreciable lives change is retroactive to Sept. 27, that increased the annual writecurrent 35% 2017. off for leasehold improvements, This may involve recalcularetail and restaurant improveto 21%. tion of assets based on when they ments has been eliminated along were placed in service. If, for with the 15-year recovery period instance, an asset was acquired that so many dry cleaners benprior to Sept. 28, 2017, and efited from. placed in service after Sept. 27, Today, improvements are 2017, it would qualify for the old generally depreciable over 15 50% expensing. years using the straight-line Assets acquired and placed in service after Sept. 27 method and the half-year convention, whether the imwould qualify for the 100% write-off. provements are property subject to a lease or placed in Unfortunately, the faster write-off of equipment service more than three years after the date the building costs is only temporary. The write-off will remain at was first placed in service. the 100% level for equipment and business property INTEREST EXPENSES expenditures made between Sept. 27, 2017, and Jan. 1, In the past, with a few exceptions, interest was usu2023. ally tax-deductible in order to protect the ability of small After 2023 and before 2025, the amount deductible businesses to write off the interest on loans that were so drops to 60%, with a further decrease to 40% after 2025 important to their growth — or survival. and to 20% after 2026. On Jan. 1, 2027, the equipment In an attempt to “level the playing field” between cost write-off disappears. businesses that capitalize through equity and those that SECTION 179 borrow, the TCJA caps the interest deduction to 30% of Despite the narrowing of differences between bonus the adjusted taxable income of a drycleaning operation or depreciation and the tax law’s Section 179, first-year business. expensing, with both offering 100% write-offs for new A special rule applies to pass-through businesses that and used property, the tax law’s Section 179, first-year must make the 30% determination at the entity level expensing allowance remains a valuable option. rather than at the tax-filer level. In other words, at the The immediate write-off, or “expensing” of capital partnership level instead of the partner level. assets, is appealing because, unlike so-called “bonus” Other exceptions exist for small businesses, generally depreciation, the use of equipment doesn’t have to begin those with gross receipts that have not exceeded a $25 with the drycleaning business. million threshold for a three-year period.

Prior to the TCJA, dry cleaners were allowed to exLIKE-KIND EXCHANGES pense the cost of a business asset to the tune of $510,000 The tax law’s Section 1031 governing like-kind exin 2017 ($500,000 plus an inflation adjustment), with the changes currently allow dry cleaners to defer the tax bill maximum deduction reduced, dollar-for-dollar, as addion the built-in gains of property by exchanging it for tional assets placed in service exceeded $2,080,000. similar property. Although more a strategy for deferring With the new law, businesses will be able to expense a tax bill when business assets are sold or otherwise disup to $1 million in 2018, with the new phase-out amount posed of, with multiple exchanges, gains can be deferred set at $2.5 million. Naturally, as with the earlier amounts, for decades and ultimately escape taxation entirely. these will also be adjusted for inflation.

Under the TCJA, likeAnd now, improvements including roofs, HVAC (continued on page 27) 22

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www.americandrycleaner.com

2/20/18 2:33 PM

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(continued from page 22) kind exchanges will be limited to so-called “real” property (but not for real property held primarily for sale).

The provision redefines like-kind exchanges and includes language that would limit Section 1031 exchanges to likekind “real” property. This ensures real estate investors maintain the benefit of deferring capital gains realized on the sale of property.

Similar rules apply to not only passenger automobiles, but to any property used as a means of transportation or used for the purpose of entertainment, recreation, or amusement.

Computers and peripheral equipment have been removed from the definition of listed property and are no longer subject to the increased substantiation requirements applying to listed property.

LOSING ‘NOL’ ACCOUNTING SIMPLIFIED A major benefit of Net OpSimplifying the rules governerating Losses (NOL) was the ing the accounting method that Businesses with fact that they could be carried must be used for tax purposes back to more prosperous years is a welcome option. Businessaverage annual gross to create a refund of taxes paid es with average annual gross in those earlier years and proincome of less than $25 million income of less than viding an immediate infusion may now use the simple cashof badly needed cash. basis accounting method. $25 million may now Today, the NOL deduction Accrual-basis taxpayers has been severely limited. include amounts in income use the simple The write-off is now limited when all of the events have to only 80% of the drycleaning cash-basis accounting occurred that fix the right to operation’s taxable income. receive income can be deterOnly in special cases will method mined with reasonable aca NOL carry-back be permitcuracy. Cash-basis taxpayers ted. There is no limit on how generally include amounts in far forward NOL may be carincome when actually or conried. structively received.

With the cash method of acMORE TCJA counting, dry cleaners may account for inventory as nonThere are many more changes contained in the massive incidental materials and supplies. Or, as an alternative, Tax Cuts and Jobs Act. a business with inventories using the cash method of acThe newly passed law provides immediate relief from counting would be able to account for its few inventories the so-called “Death Tax” by doubling the estate tax exusing the method of accounting reflected on its financial emption so it applies to fewer estates until it “sunsets” in statements or its books and records.

2026. The corporate Alternative Minimum Tax has been AUTO EXPENSES eliminated. The tax credit for rehabilitation expenses has New write-off limits for the cost of so-called “luxury” been repealed, as has the Disabled Access Credit. automobiles and personal use property were included in Also, S corporations attempting to convert to regular C the TCJA. corporations will face new rules; Section 199, the deducFor passenger automobiles and light trucks placed in tion for so-called “domestic production activities,” has service after Dec. 31, 2017, where the additional firstbeen repealed; and partnerships will no longer terminate year depreciation deduction is not claimed, the maximum upon the death or exit of a partner. amount of allowable depreciation is increased to $10,000 All in all, however, the TCJA appears to favor busifor the year in which the vehicle is placed in service, nesses over individuals with longer-lived tax savings. $16,000 for the second year, $9,600 for the third year, Unfortunately, with few exceptions, the potential savings and $5,760 for the fourth and later years in the recovery won’t be seen by drycleaning businesses and their owners period. until the tax bill for 2018 comes due.

ADC For passenger automobiles placed in service after 2018, these dollar limits are indexed for inflation. And for those Mark E. Battersby is a freelance writer, columnist and author eligible for bonus first-year depreciation, the maximum with more than 25 years experience with business taxes and first-year depreciation allowance remains at $8,000. finance. His website is http://thetaxscribe.com.

.

www.americandrycleaner.com

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American Drycleaner, March 2018

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2/20/18 2:35 PM

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

Retail is Reality It matters to drycleaning owners — here’s why

M

aintaining the status quo is a danger that most often results in stagnation and deterioration for businesses both large and small.

This pattern is well-demonstrated in the retail world that is currently undergoing a major transformation, with many players jockeying for improved market position.

There are some strong lessons to be learned from the successes and failures that have emerged. There is a serious game being played by the traditional and non-traditional retailers as they fight for customer attention, dollars and loyalty.

You may be thinking: “Why does this matter to me? I’m not a retailer. I provide a service.”

On the contrary, your business is directly related to this battle that is being waged by competitive retailers because they: • Provide your customers with the textile products that you care for.

• Share and compete for your customers’ disposable income.

Diana Vollmer • Drive traffic patterns toward or away from your stores.

• Train consumers to increasingly rely on and use technology for goods and services.

• Drive and define the fashion trends that affect what you clean (or don’t clean).

• Educate the consumer eye to what is a fresh “retail” environment.

If your business isn’t thriving, growing and looking to the future, it may be at least partially be because you are lagging behind in making changes that are necessary to compete with others who have done a better job of observing impactful trends and participating in the necessary competitive changes.

The most successful fabricare companies are not only participating in but anticipating and often leading the industry in making the transitions early.

Leading the field is not to say that you must always be on the bleeding edge of technology and innovation. But 28

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(Photo: Cayton Heath/Unsplash)

awareness and early adoption can provide an advantage that keeps you ahead of the profitability pack.

So what are some of the key lessons to be learned from the retail industry maneuvering?

PRICE NOT MOTIVATOR Take the case of the retail icon JCPenney (JCP) as they went through a highly visible and publicized disastrous transition to “Lower Everyday Low Pricing.”

According to a September 2013 article by Panos Mourdoukoutas writing in Forbes: “What haunts JCPenney? A strategic mistake regarding its pricing strategy — replacement of sales through coupons with everyday low prices.”

He opines that, “JCPenney’s strategic mistake comes from a misunderstanding of an important difference between itself and Apple stores: Hype! Apple’s word-ofmouth (WOM) and ‘buzz’ marketing machine and unique products already hype customers heading for its stores.

They know what they want; they don’t need conventional sales promotions to be lured to the stores.”

But JCP doesn’t have a similar marketing (continued) www.americandrycleaner.com

2/20/18 1:41 PM

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M A N A G E M E N T ST RAT E G I ES

machine, and its products aren’t unique either; they are carried by Macy’s, Kohl’s, Walmart, and Target, he writes.

“This means that JCP’s customers have yet to be hyped (according to customer feedback). Boutiques/streets, WiFi, juice bars with smoothies and coffee — no long-term customer of JCP cares about all that. JCP got away from what it did best.”

They forgot their core advantages, such as carrying big and tall where they had a lock on the non-specialty shop market.

INSTANT REVENUE Last summer, Amazon.com purchased Whole Foods Markets for $13.7 billion to gain instant access to 18.2 million square feet of prime real estate in the U.S. and Canada (as well as the UK).

This move into the brick-and-mortar business in perishables is a new direction from its core business, a move that ownership feels will keep the company growing at its historically robust rate. The brand also gains expertise in the new category with the acquisition.

Once it masters the challenging category of food, will it then buy or open large-item brick-and-mortar stores like furniture?

Watch out for more of these mergers and acquisitions as other retailers partner or buy access to expertise, revenue and space.

Walmart’s recent $310 million acquisition of Bonobos helped the firm build upon its previous purchase of Jet.com and expand its e-commerce for menswear while bringing the company more expertise and advanced technology in the package. Walmart is trying to combat the incursion of Amazon.com into its retail base.

Other lagging retailers must now play catch-up to be competitive with these two huge (and other smaller, nimble) innovators. Notice the number of empty stores across the continent that have been closed by traditional retailers.

HOW YOU FIT Dry cleaners can learn from and imitate the successful advances that are transforming the retail landscape. Warning: Avoid the pitfalls of the proven failures as well.

Consolidation — Brick-and-mortar stores can be expensive to acquire and expensive to run. Location and access is crucial to running profitable stores.

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Have multiple stores? Rank each of your locations on the basis of profitability. In what ways are the most profitable stores different from the least profitable ones?

Can you make changes that will narrow the gap? Perhaps you have locations that should be closed to free investment for better locations or other distribution channels, such as your routes or small 24/7 kiosks.

Partnerships — Who has the expertise or technology you now lack? Does a competitor have complementary locations that would mesh profitably with yours?

Does a merger between similar companies provide an opportunity for economies of scale, saving you operational expenses, such as accounts payable/relievable and other recordkeeping?

Is there an energetic operator who could be your retirement exit strategy? Think about the immediate and the long-term implications of partnerships.

Acquisitions — Consider the same issues that are listed in “Partnerships.” Perhaps an outright acquisition is more favorable or preferable to accomplish your goals and the goals of your competitor.

Technological Advancements — Our industry has many players who love technology and who try to stay cutting edge, but for most owners, this is neither a passion nor a current skill.

Technological advances are dynamic and continuous.

For those who would rather use someone else’s programming or e-commerce skills, outsourcing, partnering or hiring are all viable solutions.

Whatever your choice, ensure that your tech provider has the resources and support to move as fast as the constant innovations.

Even if you know how to optimize customer analysis, communication, consumer reach and search engine optimization (SEO), do you have the time to learn the latest advances or actually do the tasks yourself?

Do you have “big-picture” uses for your time and leadership skills to take your company forward?

Take advantage of the opportunities available in the dynamic marketplace.

ADC Diana Vollmer is a managing director for Methods for Management, which has served dry cleaners and launderers with affordable management expertise and improved profitability since 1953. For assistance analyzing your opportunities and implementing plans to capture them, call 415-5776544 or e-mail dvollmer@mfmi.com. www.americandrycleaner.com

2/20/18 1:41 PM

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S P OT T I N G T I PS

Slam That Stain Get tough on old stains by getting creative with your stain removal

O

n occasion, normal just don’t cut it.

What do you do when standard protocol — your “by the book” training — is not getting the results you need?

What can you do to impress your customer, or just to get yourself out of a trouble spot of your own creation? (This seemed to be the themes of questions I confronted at the Clean Show last summer.)

Most of the time, things go pretty much as expected. I grew up in a drycleaning plant and started workMartin Young ing on the counter at age 12. In the 54 years since, I have handled more than my share of garments.

But what do you do when your efforts seem to make matters worse?

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(Photo: Nathan Dumlao/Unsplash)

JELLY THAT PAINT You recognized the paint the moment you picked up the garment. You made the decision to pre-spot the stain.

You pull the skirt over the solid portion of the board, apply your favorite POG, rub the stain with your bone scraper — nothing.

You add a few more drops of POG and try again — still nothing. Apparently, the paint has been in the garment for a while.

Before you grab that “Sorry” tag, give this a try: cover the stain with petroleum jelly and let it sit for at least four hours, or even overnight. Now apply your POG, with mechanical action, as before.

Put a few drops of POG on the remaining stain and then add a drop or two of amyl acetate, followed by mechanical action. Once the stain begins to break down, it will go in a hurry. If you are left with a trace of pigment after pre-spotting on the dry side, go to the wet side with a reducing bleach (dye stripper).

When the trace of pigment is in the red/orange category, I use bisulfite or hydrosulfite, and when the trace of pig-

Don’t give up on bold splashes — slam them back!

ment is in the blue/green category, I use titanium sulfate.

OIL THAT CARBON Some stains, by their makeup alone, will not break down. An example is the black specks left by car exhaust. These black specks are “insoluble” pieces of carbon.

An insoluble stain is removable with lubrication and (continued) mechanical action. In many cases, the www.americandrycleaner.com

2/20/18 1:39 PM

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over the solid portion of the application of an oily-type paint spotting board. Be sensitive to a remover, brisk tamping, and dry Well, year-old red wine or color change in the area around cleaning will get the job done. the stain. Otherwise, this can be However, there will come a brown spicy mustard gives repeated until every trace of the time when this normal course of me a fit. When normal ain’t stain is gone. action will require a little help.

Peroxide is used by applying and An option is to apply mineral working, I have to move to a waiting, sometimes repeatedly. oil (found in the “Laxative” secdifferent strategy.

Peroxide is a bleach, although tion at the drug store), and heavy a mild one, so test first on an tamping. Your immersion soluinside seam. This procedure can tion will easily remove the minbe repeated, as long as there is no eral oil and the heavy lubrication color change in the garment and will do wonders for removal of the stain removal shows progress. the solid particles imbedded in the fabric.

Neutralize the area with a few drops of acetic acid BLOOD IS BLOOD when you are finished spot-bleaching.

It is a bad sign when the customer has neglected a RED, RED WINE blood stain and, through the passing of time, that blood We all have our weak points, and mine is a tannin has changed from red to brown, then to black. stain.

I have seen many garments chafed by overly aggresIt seems that the customer believes that regardless of sive mechanical action in stain removal. The explanation the amount of neglect and abuse they can inflict on the is “blood is blood.” To which I reply, “Time always garment, the cleaner can fix the garment. makes things tougher.”

Well, year-old red wine or brown spicy mustard gives When you see little or no red in the stain, you should me a fit. When normal ain’t working, I have to move to a always apply a digester, then set the garment aside for different strategy. a while with a warm, moist cloth covering the stain.

Each option mentioned must be tested on an inside It takes time, warmth, and moisture for the digester to seam before proceeding with the stain removal process. work well.

The first chemical tool I try is a general formula (a Come back to the stain later. Apply neutral synthetic pre-mixed strong tannin formula). I will allow it to sit detergent and flush the stain over the vacuum nose of for about 20 seconds before applying light mechanical the board. There is no need for mechanical action at this action over the solid portion of the board. If there is only point. limited success, I move to oxalic acid and repeat the Now, follow your normal protein stain protocol. If same process. If there is only limited success, I consider there is a trace of the stain left after testing on an inside the same bleach protocol used above, on the protein seam, you can apply a drop of dilute ammonia with light stains. mechanical action, then flush over the vacuum nose of As a last resort, I will consider a reducing bleach. As I the board. have said, test first.

Your final option is to use spot-bleaching with either Again, when the trace of the stain is red/orange, try peroxide or perborate. I use a very fine form of “actibisulfite or hydrosulfite, and when the trace of the stain vated” perborate, as it melts more quickly and evenly, is blue/green, try titanium sulfate. rather than the more coarse granules found in the bulk The customer is going to seek out someone to restore perborate used in the laundry operation. their garment, someone with the knowledge and motivaI have four different concentrations of peroxide at the tion to make the effort. spotting board: 3%, 10%, 20%, and 30%. You can purWhy not diversify into stain removal? You already have chase small bottles of various concentrations of peroxide a majority of the tools in your plant right now. Don’t give at a shop that sells supplies to hair salons. up on bold splashes — slam them back!

After testing on an inside seam, use a salt shaker to ADC apply the perborate powder to the moist stain, then apply Martin L. Young Jr. has been an industry consultant and a drop of protein formula to the dry perborate to keep it trainer for 20 years, and a member of various stakeholder in place. groups on environmental issues. He grew up in his parents’ Get just a “wisp” of steam coming off the nose of plant in Concord, N.C., Young Cleaners, which he operates the steam gun and melt the perborate through the stain, today. Phone: 704-786-3011, e-mail: mayoung@ctc.net.

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I N D U S T RY OB S E RVAT I ONS

Money Whisperer Afraid to ask questions at tax time? Don’t be. Listen in on eight absolutely vital questions and answers between a drycleaning owner and an accountant.

O

ften, in the rush of business, your accountant gives you the end-of-year results and you make out a check and that’s the end of it.

Basically, you go along with whatever the accountant says.

Is this you?

It’s time to start asking your accountant pointed tax questions. Here Howard Scott are eight hypotheticals: Question 1: “Why didn’t my company make more money?”

Answer: “Of course, it depends on your situation, but there are common scenarios: “You didn’t make more money because labor costs are 45% of revenue, and that’s too high.

“You didn’t make more money because you drew too much money out of the business, both on the books and off, in order to minimize tax liability.

“You didn’t make more money because your capital payments are too high. That is, you’re overleveraged. Between bank borrowing, buying new equipment and spending $150,000 to remodel, your finance notes are eating up profits.

“You didn’t make more money because your sales are not sufficient to cover overhead. You need to focus on expanding sales. Your profits are 36

minuscule because you squandered money on harebrained schemes.”

Question 2: “Why can’t you conceal more of my profits?”

Answer: “You made money; you have to pay taxes on it. If we were to put down that your sales were $60,000 less than they actually were, this would create several imbalances.

“First, last year’s sales wouldn’t tally to this year’s. Second, what about next year? Do we increase the lie? Third, the ratios of sales to cost of goods sold and sales to production labor would be off. A tax auditor looking at this might suspect tampering with figures.

“The same with expenses. If I were to increase your marketing costs by $30,000, the exaggeration would be

(Photo by Aidan Bartos/Unsplash)

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a dead giveaway. I would hate to be representing you in a tax auditor’s office when he asks why marketing costs are so out of line, when they were only X last year.

“But, besides all that, what you are suggesting is fraud. I would be stripped of my license to practice.

You don’t expect me to risk that, do you? Finally, by being honest and aboveboard, you can sleep soundly at night.”

Question 3: “What was new in the tax system in 2017 that helped my bottom line?”

Answer: “There are really no new provisions in the tax code that apply to you. Mileage allowance went down from .54 cents to .535 to reflect relatively low gas prices. Section

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179 Depreciation deduction remains at $500,000. On the other hand, all indices of personal taxes — standard deduction, exemptions — have increased a bit to slightly reduce your personal taxes, but basically the same tax code exists that churned out last year’s taxes.”

Question 4: “What are you doing to lower my taxes?”

Answer: “I gave you a home office deduction, because you do some administrative work at home and have a designated space for it, even though you have an office at your place of business.

“Because home office deductions are so common these days, I thought the deduction is reasonable. That resulted in a $4,000 expense.

“I used Section 179 to take all this year’s capital purchases, which totaled $18,000 off this year, which reduced profits much more than if I had depreciated it over the expected life of the seven-year life of the asset.

“I used Actual Costs of your four vehicles — gas, repairs, insurance, truck payments — rather than Standard Mileage rate (.535 per mile) because Actual came out higher, especially with all your repair bills.

“In Travel, Meals and Entertainment, I included all your meal and entertainment expenses. In Other Expenses, I included several items that weren’t strictly business-related, like newspaper and magazine subscriptions, professional organization dues, and education costs, under the theory that these all help you do your work.

In total, all the above provisions lowered your tax liability by $2,500.”

Further explanation on lowering taxes: “A home office is allowed as a business deduction if you have a space at home where you do some administrative work, like paying bills, and use the space regularly and exclusively for business.

“Depreciation covers asset cost. www.americandrycleaner.com

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Section 179 allows you to take the full amount of the purchases, up to $500,000 in the year of purchase. Car and Truck Expenses can be figured through either Actual or Standard Cost on a per-mile estimate, whichever is higher.

“Travel, Meals and Entertainment includes all expenses such as taking out customers to dinner or treating employees to a company outing.

Other Expenses includes any of the miscellaneous expenses, which helps the owner do his work.”

Question 5: “How effective am I compared to your other clients who own drycleaning businesses?”

Answer: “It’s always hard to compare, since every business is unique.

But OK, I’ll give you some pointers.

You do a heck of a load of business, compared to other dry (continued)

American Drycleaner, March 2018

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I N D U S T RY OB S E RVAT I ONS

cleaners I do the accounting for. By assets, by employees, you really get out a lot of volume.

“On the other hand, your productivity leaves something to be desired.

You spend too much money per unit.

It’s about 20% more than other dry cleaners. That means your people aren’t efficient or your production line is unproductive. Look into that.

“You say you need to do good work to produce high quality, and that costs, but prices are not high enough to compensate for the higher production costs. You should raise prices right away if you want to be at the normal price-to-cost margin.

“Finally, you personally pull too much money out of the business. It is more than most of your competitors.

You say you need it, but it affects your growth potential because there isn’t enough left over to provide for expansion strategies. Cash flow is always barely in the positive side.

Rather, you’re just getting by, year after year.”

Question 6: “What is the relationship between paying personal taxes and paying business taxes?

Why couldn’t I draw more out of the business, or vice versa, and pay lower taxes.”

Answer: “You elected to be a corporation, so the tax division matters.

At your income level, personally, you are in the 25% bracket on the margin. But $75,000 of your income was taxed at 10% and 15%. Plus you had a $30,000 exemption. So while you make $110,000, you only paid $11,500 federal plus $5,000 state plus $7,100 Social Security, for a total tax liability of $23,500. This is 21% of your income.

38

“Your corporate income of $100,000 paid 15% on the first $50,000, 25% on the next $25,000, and 34% on the remaining $25,000.

Along with state taxes, your corporate tax bill is $27,000, or 27%.

“Corporate tax is a bit higher. But if you were to shift more income to personal, it would be at the higher rate of 25%, and with state being 5%, it brings up the percentage to 30%.

“So we’re dividing the burden as best we can. If you elected to be a Schedule C business, it wouldn’t matter, because both the personal and company are combined.”

Question 7: “Why do some corporations pay zero taxes?”

Answer: “It is true that General Electric made $42 billion profit in the last eight years, and paid no federal taxes. But they did pay state, Social Security contribution, property and all kinds of other taxes. So you’re right.

They don’t pay their fair share.

“General Electric employs 75 tax attorneys and experts to figure out legal ways for avoiding taxes. For example, when they build a plant, they demand tax considerations such as local tax relief, and they get it because they are such a powerful entity.

“On the other hand, the vast majority of companies, large and small, pay their fair share. For example, the largest 100 corporations in America averaged 25.4% federal taxes.”

Question 8: “How do I know that my figures are accurate on the P&L statements?”

Answer: “Check with your bookkeeper who keeps the books. But if something seems incorrect, do some research. Example: if it surprises you production labor is 35% of revenue,

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ask the bookkeeper about that figure.

“On your own, list the relevant salaries, including a portion of yours and see that it adds up in the P&L figure. You should be as intimate with these figures as you are with members of your family. You should know your break-even point. You should know what utility costs are as a percentage of each garment category — shirts, slacks, jacket, dress, suit.

“You should know what percent upcharges comprise as a percent of total revenue. You should know how much additional volume would double profits. You should know your daily nut, the total money it costs to open your doors every day.”

Understand those questions and answers and you’ll better understand your taxes.

And about the new tax laws...

The new tax program went into effect on Jan. 1.

As business proprietors (Schedule C), you deduct 20% of profits, and then pay taxes at the new rate, so you will probably be better off. As a corporation, you might pay less because the new corporate rate is 21%. But if your corporate profit is around $30,000 or less, you will be better off under the old system, where the corporate rate of the first $25,000 of profit is 15%.

There might be switching around of corporations and proprietorships because of changes. But with all the giveaways, the question is, what will happen to the national debt?

ADC Howard Scott, a longtime industry writer and drycleaning consultant, is a former H & R Block employee and has been preparing taxes since 1998. He can be reached at 781-293-9027. www.americandrycleaner.com

2/20/18 1:30 PM

PRODUCT NEWS

Vertical water wall design featured in low-NOx steam boilers The machine at right is a 9.6L-WW (Low NOx) water wall design 9.6 HP, 150 PSI steam boiler from Parker Boiler. The company conducted extensive testing on this new vertical water wall design in the last few years, it reports.

Standard, heavy-duty 1-inch tubes are used with a 0.12-inch wall thickness. “The tubes are bent around the flame, creating a water wall furnace,” Parker Boiler says. “A large, half-inch-thick seamless horizontal steam drum is used for a steady water line and clean, dry steam production. The footprint is similar to a vertical tubeless boiler.”

The sealed combustion design “raises efficiency with lower excess air and minimizes heat loss to the room,” the company reports. “A low-NOx metal fiber burner is standard for 20ppm and pre-certified to AQMD [Air Quality Management District] 1146.2.”

Units will be available in 9.6 HP to 24 HP, the company indicates. The boiler also has up to 4 inches of insulation; a 5:1 turn-down ratio; digital pressure control; reflex prismatic sight glass; and, Parker Boiler explains, “Two sides that do not require access, allowing it to be stuck in the corner of the room, saving floor space.” www.parkerboiler.com | 323-727-9800

ADC_R_Hhalf.indd 1 www.americandrycleaner.com

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11/3/14 American Drycleaner, March 2018

2:27 PM

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

Lapels Dry Cleaning creates corporate/ hospitality division Lapels Dry Cleaning reports that it has formed a corporate/hospitality division. The new division was formed to better serve hotels, restaurants and corporate accounts that require and/or offer drycleaning services for guests and staff, it notes.

“Several of our locations serve large corporate accounts like Intel, Google, Starwood Lodging and others,” says Kevin Dubois, CEO of Lapels Dry Cleaning.

“Our new corporate/hospitality division will serve as a resource for our franchise owners to better serve these types of clients.

Kevin Dubois “This includes providing the training and systems to serve corporate and hospitality customers as well as the marketing tools needed to attract corporate businesses, hotels and restaurants.”

The company’s new division equips each of its plants to serve restaurants, hotels and other guest-oriented businesses with its full range of drycleaning offerings.

This will include same-day and 24-hour dry cleaning, tailoring and more, the firm points out.

Lapels states that it has “pioneered an eco-friendly drycleaning experience over the past dozen years,” adding there is no hazardous waste in their process.

“When you’re on the road and you want your clothes cleaned, you’re not necessarily thinking of the longterm effect on your clothes,” says Dubois.

“All our locations serving corporate accounts use GreenEarth® solutions,” he adds. “Consequently, our cleaning process has no odor and is gentler on clothes, thus lengthening the life of clothes. That’s a comforting thought for business travelers.”

The company writes that it has same-day service and pickup after 5 p.m. It also “offers a ‘car hop’ service where customers can drop off and pick up their clothing without ever leaving their cars.”

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They’ll remember always, DLI school The Drycleaning & Laundry Institute’s (DLI) School of Drycleaning Technology has trained thousands of dry cleaners over its long history, teaching everything from basic cleaning to advanced dry cleaning and wet cleaning, notes former American Drycleaner Editor Ian P. Murphy, writing for DLI. The DLI School has, in turn, helped advance the industry by giving production staffers, supervisors, and owners nationwide a baseline of knowledge they might not have had if learned only by doing.

Jason Harmon, production manager at Medlin-Davis Cleaners in Raleigh, N.C., signed up for the school’s Introduction to Drycleaning and Advanced Drycleaning courses after eight years in the business at the suggestion of owner David Makepeace. (continued on page 42)

Jason Harmon, a graduate of the Drycleaning & Laundry Institute’s (DLI) School of Drycleaning Technology, is the production manager at MedlinDavis Cleaners in Raleigh, N.C. When asked about what advice he might give a future student at the school, he says, “Ask your peers questions; they are a wealth of knowledge. I made great connections in the classroom.” (Photo: Drycleaning & Laundry Institute) www.americandrycleaner.com

2/20/18 1:26 PM

O F F TH E C U F F

Get to Know....

Dave Coyle

Owner, In The Bag Cleaners

T

ell us where you were born, grew up, and reside today.

“I was born and raised in Cleveland, Ohio. Today, I live in Wichita, Kan., with my beautiful wife, Aram.

We have four kids: Brie (20), Ethan (11, adopted from Guatemala at birth), Pari (2) and Penelope (newborn).”

Hobbies (that you’ll admit to)?

“I love doing anything on the water — boating, sailing, skiing, surfing, fishing. I love to vacation in the Caribbean, mostly in the more

remote island chains of the Bahamas.”

What gets you excited at work?

“Marketing. MarketDave Coyle and his family. (Photo: Dave Coyle) ing. Marketing. Coming up with unique solutions a lot of bright kids with tons of to our clients’ pain points. I also ambition. Very competitive, both love team-building with my internal in the classroom and on the sports group of 78 team members.”

ADC fields.”

Lastly, tell us a secret (keep it clean) nobody knows about you.

(Do you want to take part, or know “I went to an all-boys prep school someone who does? E-mail tburke@ for all of high school. I was around atmags.com.)

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American Drycleaner, March 2018

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

“He thought this would be a great course to take to gain all of the knowledge necessary to come home and work with my staff,” Harmon indicates.

The classes offered a mix of textbook learning, classroom lecture, discussion, and hands-on practice with clothing and machinery, he relates, in an extremely collegial atmosphere. “We focused on many subjects: textiles, spotting, wet cleaning, dry cleaning, and finishing.

“I learned so much with the hands-on parts of the course,” Harmon says. “It was so great to watch the demonstrations and learn things I never would have thought of. It gave me so much confidence upon returning.”

DLI instructors are available throughout the sessions to answer questions and assist with critical techniques.

“They assisted by going over the sections in the course and gave us the opportunity to ask questions,” Harmon points out. “They were extremely accessible and happy to help in any way they could.”

Albano joins Methods for Management staff Independent consulting firm Methods for Management (MfM) reports it has welcomed Jamie Albano as the newest member to its staff, as the director of member development.

“After attending two recent member meetings in Durham, N.C., and Greenville, N.C., Jamie’s responsibilities will include new member recruitment, and development of additional member services including social media,” the management consulting group indicates.

Growing up in the drycleaning Jamie Albano business, Albano is third-generation, from Tidewater, Va. She grew up working the front counter and learning the importance of customer service, MfM adds.

“We have known Jamie for years, first as a client and now as a part of the team, and couldn’t be happier that she is on board,” says Marta Shaffer, vice president of client services for MfM. Albano has a bachelor of science degree in business 42

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management from Radford University, and is a graduate of the Drycleaning & Laundry Institute (DLI). “Having worked in every aspect of the business, she believes in paying attention to the small details and knowing what great customer service is,” MfM says.

The management firm serves privately owned businesses through relationships as well as coordinating and facilitating what it calls “management bureaus.”

MFM management bureaus, it points out, “provide a safe, non-competitive environment where members are comfortable sharing information, issues, and concerns with peers that they trust and respect.”

Leonard hires Quarles Leonard Automatics recently welcomed Keith Quarles as its Central and Southeast regional sales manager. As an industry veteran, the firm notes, “Keith has 21 years of experience providing direct capital equipment solutions in the laundry industry.”

Quarles brings an extensive knowledge of the wash aisle and flatwork sides of the business to complement the company’s garment finishing expertise, it notes.

“Keith’s consultative solutionbased sales approach, paired with his well-rounded knowledge of the laundry industry, will serve Leon- Keith Quarles ard’s new and existing customers very well,” says Dan Farnsworth, vice president of sales.

“I am thrilled to be part of the Leonard team as a regional manager,” Quarles says, “because I know they have sound ethics, provide world-class support, and are totally committed to customer satisfaction.”

Lyons Textile buys Evans Garment Restoration Restoration dry cleaners Lyons Textile Restoration last fall purchased Springfield, Ill.-based Evans Garment (continued on page 44) Restoration, known for its www.americandrycleaner.com

2/20/18 1:26 PM

(Photo: Jordan Koons/Unsplash)

YARNS SPUN HERE

Woolly

By Tim Burke, Editor

D

id you ever hear the story of the man who wore a sheep to his place of business?

I didn’t either.

He had a sheepdog sitting on his shoulders, too, to protect his neck from the cold winter air.

This is a woolly yarn being spun, if ever there was one.

But sheep, and others, do fall into the category of wool providers.

Wool is made from sheep hair, from Angora or Cashmere goat, also from alpaca, camel, llama or vicuna. (Vicuna is a smaller-sized cousin of the alpaca and lives in the Andes mountains of Peru.)

Wool holds large amounts of water and is warm and comfortable. Often, it is blended with fibers.

“Wool can be damaged,” writes author Norman Oehlke in American Drycleaner’s The Complete Spotting Guide & More (available at https://americandrycleaner.com), “by strong alkalis and chlorine bleach; heat, moisture and mechanical action will cause permanent felting shrinkage.”

Note: Felting is an age-old tradition of making wool

thicker by filling in the spaces between the threads using various means. We may do a future Yarns Spun Here on Felt and the nomad’s Felt Yurts. (Might be fun to say out loud at a party... “My felt yurts!”)

Wool is ... a protein fiber, forms the curly fleece on sheep, has excellent affinity for dyestuffs, gets a bad rap as uncomfortable, and is cleverly used in idioms like “don’t try pulling the wool over my eyes.”

“Wool can be wet-cleaned and air-dried,” Oehlke writes. “Wet cleaning is best for water-soluble stains.”

Steel wool is, of course, made from the rare “metal alpaca.” You can sometimes hear the herd at night, when the older, rustier critters give off a telltale squeak as they amble by.

Now you’re asking yourself, “Was the goat just pulled ADC over my eyes?”

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1/5/18 11:09 AM

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

patented garment and soft goods restoration processes, Lyons reports.

“Our goal is to go national in two to three years and global in five,” says Lyons Textile Restoration CEO Joel Lyons. “Evans can help us get there, as they bring 40 years of drycleaning experience and will help us to become a national player faster.”

So just how did the September 2017 transaction come about?

“How it happened,” Joel Lyons says, “is that Evans invited me to tour its operation and once I saw a great, state-of-the-art facility, we were able to come together and make a deal.”

The Lyons company website writes that it “specializes in large-loss restoration dry cleaning. But our true value is how we make life easier for insurance agents, claims adjusters and homeowners affected by fire or flood damage.”

It further claims on the site to “restore 96% of the clothing, drapes, rugs, blankets and other irreplaceable textiles entrusted to our care.”

Joel Lyons indicates that his goal is to open corporate locations, “partnering with insurance companies and looking for the ‘best in class’ to join us.”

He notes that his company’s strength is in what he calls a “hybrid strategy of teaching operators in textile restoration how to dry-clean with measurable success along with marketing and branding.”

“I started in the late 1990s,” he relates, “started doing restoration jobs, and learned how to handle leather myself, starting humbly in my own house in Memphis. In 2001, I opened a store behind my house and added an ozone room. Then Lyons took off. It serves 10 states now.”

He adds that, “This recent acquisition, we’re calling ‘Evans 2.0.’”

He relates that his firm is looking for more partners: “We’re super-excited,” Lyons concludes.

Ernest Winzer Cleaners now 110 years old Ernest Winzer Cleaners has been around since 1908, celebrating 110 years. “We are a fourth-generation business and third in our family,” notes Bruce Barish, 44

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Bruce Barish (left) and wife Sarah own Ernest Winzer Cleaners, which serves Broadway theatres and is celebrating its 110th year in 2018. (Photo: Ernest Winzer Cleaners)

owner with wife Sarah.

Despite the fact that Winzer Cleaners and General Motors were founded in the same year, 1908, Winzer’s website writes that “for the first 10 years of our existence, we made our deliveries the old-fashioned way — by horse-drawn carriage.”

In honor of Winzer’s early support of the innovations of the American automotive industry, Barish says: “We’ve recently undertaken the restoration of a 1930 Chevy panel truck that we were able to locate on eBay similar to the one in an old photo. While we have no plans to actually make pickups and deliveries in it, we do plan to put it on display in our Bronx facility.”

Barish notes he has worked for his family business since he was 7 years old and he has been full-time since 1986. “I took over ownership in 2000. Our largest clients are the Broadway theatres. My wife, Sarah Barish, joined the Winzer Team in 2005,” he relates.

“Presently, we have a staff of 20. The majority of our staff have been with us for many, many years. Our drivers have been with us for 20 years and one particuwww.americandrycleaner.com

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

lar gentleman from our leather staff has been with us for over 40 years,” he says.

“One of our ‘personal touches’ is that Sarah and I personally keep in contact with our customers and their needs, as well as being in the mix with our employees on a daily basis,” Barish continues. “Sarah and myself also physically see and inspect every garment that comes in.

“Our drivers work a full day during the day and also work four nights a week to pick up the Broadway shows, as we have to get all of the costumes and wardrobe back to the theatres the following afternoon.

“Ernest Winzer Cleaners is known for our commitment to Broadway for our services, hence picking up and delivering through snowstorms and hurricanes,” he points out.

“During the (2014) Super Bowl in New York, Times Square was shut down all week. We had to coordinate police escorts in and out of the area in order to service our clients and Broadway. This enabled my employees work to produce as opposed to not working the whole week.

“Whether it be a heat wave or a snowstorm or even a holiday, there is never a question from our clients on Broadway if Winzer is working. They depend on us, and we show up.

“At Winzer Cleaners, we all believe that the show must always go on,” says Barish.

event, and some new ideas that will enhance the attendees’ experience,” he adds.

According to CCA, it has retained the same show management company as in 2016, and the team is led by Show Manager Leslie Schaeffer.

Blake writes that her team did an outstanding job taking over in 2016, and that the experience of having done the previous show will help in making this year’s show even better.

“This will be an event you can’t afford to miss,” Blake says. “We are fortunate to have Leslie back running the show. Her unique experience coupled with her familiarity with the venue from last year will give us a great opportunity to really improve the show.

“I am confident the show will be one of the best in CCA’s recent past, and I am excited about some of the enhancements we will be bringing to the attendees — and the exhibitors.”

Details are still being finalized, CCA indicates, but visitors can expects aisles full of the latest industry technology and services throughout the exhibit hall, as well as several educational programs designed to help dry cleaners be more profitable and remain strong in the future.

The association has a block of rooms at its host hotel, Renaissance Hotel, at a rate of $189 per night, and a small block of rooms at the Hyatt Regency for $219 per night, it notes.

ADC

Boating back to Long Beach: Fabricare ’18 The California Cleaners Association (CCA) is preparing for a return visit to Long Beach for Fabricare 2018.

The association relates that booth sales are open for the event that is set to take place August 18-19, and commitments have already been cruising along at more than 50% of floor space, well ahead of previous shows.

“Exhibits like this are a tremendous undertaking,” says Peter Blake, CCA executive director. “The planning takes well over a year. I am really excited about the event, and I know it will be one of the best in the entire country.

“We have been looking at show improvements, great educational programs to hold in conjunction with the www.americandrycleaner.com

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The Long Beach, Calif., yacht harbor shown here is the picturesque backdrop for the Fabricare ’18 Show, cruising once again to the Long Beach Convention Center on Aug. 18-19. (Photo: Tim Burke) American Drycleaner, March 2018

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2/21/18 11:17 AM

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Sell your stuff at American Drycleaner online classifieds

American Drycleaner, March 2018

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WITHOUT-A-TRACE WEAVERS—More than 60 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.

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American Drycleaner, March 2018

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2/21/18 8:13 AM

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

‘War Work or Fight’ 10 YEARS AGO. Falling home prices are not enough to encourage buying: Sales of new homes fell to a 12-year low in December, wrapping up the worst year since records began in 1963. The Commerce Department says sales decreased 4.7% to an annualized 604,000 units, while the median home price dropped 10% to $219,000 in 2007 — its largest decline in 37 years. As part of an economic stimulus plan passed by Congress, Fannie Mae and Freddie Mac, the largest U.S. mortgage finance companies, have gotten the go-ahead from the government to temporarily buy out mortgages of as much as $729,750, exceeding today’s $417,000 limit.

35 YEARS AGO. A woman in Staten Island wrote to the “Good News” section of her newspaper recently because a dry cleaner kept his store open to press her dress so she could go to an important christening the next day. She said she had called all the cleaners in the phone book before one agreed to stay open for her. “I couldn’t believe his kindness,” she explained. “Not only did he keep his store open, he welcomed me when I got there and took me back to the press to let me watch.” She never learned his name, but said she won’t forget his good deed. … Franchising is the “expansion opportunity of the ’80s,” according to a franchising consultant. He reports that the sales volume of “business format” retailers (those following specific guidelines of franchisors) grew by an estimated 25% in the 1980-82 period.

50 YEARS AGO. Dad’s duds will cost more. A rise of 10% in the cost of men’s clothing is predicted for fall by the president of Phillips-Van Heusen Corp. The increase will cover a broad line of products reflecting sharply rising costs of materials, trim and wages. Many clothing manufacturers were apparently overstocked at the beginning of the year because of the changeable weather. Moreover, it was necessary to “liquidate all non-durable press garments,” a spokesman for the clothing industry reports.

So, it seems that durable press is giving other industries problems, too.

Being declared “Essential” was important in 1943, as the March 1943 American Drycleaner front cover blurb notes. The corresponding story inside the issue explained that as the labor situation grew worse, cleaners became eager to be declared an essential industry under the “War Work or Fight” order issued by the U.S. War Manpower Commission. It caused some cleaners to lose key employees they had left to enlistment in the services during World War II.

75 YEARS AGO. What Will “Essential” Mean to You? As the labor situation grows worse, cleaners become eager to be declared an essential industry under the “War Work or Fight” order issued by the U.S. War Manpower Commission. It caused some cleaners to lose key employees they had left. The truth must be faced: There is evidently not a chance that the industry as a whole will be declared essential. But there is a chance that this status will be granted on a purely local basis, based largely on the preponderance of war workers and soldiers in the locality. ... “Thank God for the Complaints!” That’s what one cleaners in Arizona said in the heading of a large ad: “Thank God for the Complaints!

We Want Them. Your Complaints Tell Us How to Conduct Our Business.”

ADC — Compiled by Tim Burke, Editor

To read more of American Drycleaner’s chronicling of the industry over the years, visit www.americandrycleaner.com.

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American Drycleaner, March 2018

www.americandrycleaner.com

2/20/18 9:41 AM

PARKER BOILER’S “WATER TUBE ADVANTAGE” #1

WHY WATER TUBES ARE BETTER BOILER EFFICIENCY. The Parker is one of the most efficient boilers on the market today.

The 8 to 12 pass water tube design provides a much larger heating area to maximum heat transfer compared to tubeless designs.

LONGER LIFE. Our tubes are double the thickness of standard tubes and our steam drum at 1/2” is 50% thicker to resist corrosion, the tubes flexibly expand and contract to prevent warping and leaking, and can be easily flushed instead of manually cleaned. Some Parker Boilers have been in continuous service for 40 years without experiencing a service problem.

SAFETY. The heavy construction and the flexible design make it one of the safest boilers in the world. The low water volume of the Parker design stores much less pressure energy than tubeless designs so explosions are highly improbable. To our knowledge, no Parker has ever exploded, even when injected with cold water. Please don’t try that with a tubeless boiler.

VARIABLE OR MODULATING FIRING. All Parker Steam Boilers* are provided with either full modulation or variable firing to prevent cycling and save fuel. The majority of tubeless boiler manufacturers provide only on-off firing or LHL as standard. *Except model 103-9.5 LA. Available as an option on 9.5L and 15L.

Parker Boiler Company • 5930 Bandini Boulevard, Los Angeles, CA 90040 Phone (323) 727-9800 • Fax (323) 722-2848 • www.parkerboiler.com

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2/6/18 11:05 AM

The Evolution of Clean Join these satisfied customers...

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~Kurt and Drew Skasik, Skasik’s Quality Dry Cleaners “Ten days ago we made the transition from a Columbia perc machine to a Columbia SENSENE machine. Having been a perc operator for so long, I was very nervous about making the move.

Fast forward 10 days, I can honestly say I am very happy with the purchase! The learning curve is minimal, the solvent does the job as advertised, we are down to 4 spotting chemicals, the running cycle is just a little bit longer than perc, the clothes come out soft and the colors are vibrant. And when you open the door at the end of the cycle, instead of getting a blast of perc, you get a pleasant and refreshing smell.”

“I’ve been in the drycleaning business for 28 years, always using perc. I have been searching for an alternative solvent for the past two years. After researching Sensene, visiting plants running with Sensene for the past few months, it has been beyond my wildest expectations. It’s better than perc! As the owner of Ruthie’s Cleaners, Owasso, MI, I am a hands-on operator and the one that has always done the cleaning. This solvent is just phenomenal. This is my second Columbia machine. In 23 years Columbia has always been the leading company in technology and my new Columbia is a testament to that fact.”

~Robert Marks, Ruthy’s Cleaners

“Having finally bought my Columbia, I can honestly say I’ve entered the 21st Century. This machine produces exceptional cleaning and is efficient, whites are white and I don’t have to worry about anything after I hit Start. My only regret is having waited so long!”

~Craig Ford, Owner/Operator, SeaBreeze Cleaners

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