The past decade has brought remarkable improvements in drycleaning technology, regardless of your "solvent of choice." Think about it. Perc drycleaning uses about one-third as much solvent today as at the beginning of the decade, thanks to more efficient equipment and better operating practices. Petroleum drycleaning, which had nearly faded into the mists of time ten years ago, has a new lease on life (and a new name -- hydrocarbon), thanks to developments both in the solvents and the machinery. Advancements in both machinery and chemistry also have extended the ability of professional cleaners to clean clothes in water. And while those time-tested cleaning technologies were getting their upgrades, new solvents and systems found their way into the everyday world of drycleaning, too. It's just a start, but there are now several dozen cleaning plants operating every day with one of the newcomers -- GreenEarth, liquid carbon dioxide or Rynex.
Much of the impetus for these improvements and developments grew from a heightened awareness of the need to protect the environment and reduce pollution. It should be a no-brainer that the cleaning industry wants to be clean. But now it seems we are faced with a pollution problem of a different sort -- the fouling of the air around the debate and dialogue concerning the relative merits of these various systems.
If one were to believe everything that is said about the various systems, one would believe that a drycleaning plant, regardless of solvent or system in use, is a disaster waiting to happen -- it could either blow up, burn down, despoil the environment, waste precious water resources, threaten public health -- the list of potential horrors seems to grow faster even than the list of new cleaning alternatives.
These negative characterizations of the "other guy's" cleaning system come from within the industry. We don't need the government or the media to tell the world what is wrong with our industry. Certainly we must turn a critical eye to each of the available cleaning technologies, and we should expect the champions of each system to extol the virtues of their chosen solvent. But the negative portrayals provided by those pitting one system make the entire the industry look bad in the public eye. Bashing the "other guy" ultimately bashes the industry and poisons the well from which we all must drink. We should be celebrating our progress, not smearing our competitors.
On a recent cyber-trek on the Internet, National Clothesline discovered a few web sites concerned with the impact that casual dress has had on the business world. At www.1dressup.com is a web site that promotes "Dress Up Thursdays" to various CEOs of big corporations, hoping to return professionals to their formal attire roots. On the site, a passage reads: "Casual dressing results in a workplace environment which does not promote nor encourage more productivity. Casual dressing has not been implemented as originally intended."
The site points out that there is much confusion regarding what constitutes casual dress. People are more apt to behave and perform in a professional manner if they are dressed accordingly. A research psychologist is cited on as having conducted surveys on 500 firms between 1997 and 1998. He claims his studies demonstrate that a relaxed dress code results in more tardiness, less company loyalty and commitment and a decrease in overall productivity and ethical behavior. If big companies adopt "Dress Up Thursdays," 1dressup.com hopes that changes may become apparent in how a company performs on a formal Thursday, as opposed to a casual Friday. The target date for corporations to implement "Dress Up Thursdays" is September 21. We encourage our readers to support these efforts to swing the fashion pendulum back to more professional modes of dress.
Another web site, www.casualpower.com, focuses on the confusing ramifications caused by casual dress in the workplace. The site is presented by Sherry Mason, author of Casual Power: How to Power Up Your Nonverbal Communication and Dress Down for Success. Mason's company, Empowerment Enterprises, specializes in communication-image consulting. In Mason's book, she discusses two primary questions: How dressed down is too casual? and How dressed up is not casual enough?
The basic principle in advertising is to make things happen -- buy and sell, and to stimulate demand. Advertising is to create awareness of your services.
Advertising made its first appearance before the written word when a caveman chiseled a symbol into rock. There were no initials. He had none. His message was in the symbol.
What the caveman did then, we do now. We use symbols. We use symbols for identity purposes. Symbols on wearing apparel are used to create loyalty.
Logos are symbols of trust and dedication. Those who use logos for identification are proud of their products and services. Recently in the business section of the Washington Post, a number of logos were shown in design and color. Some were bigger than others: Ford, Dupont and Dow were small by comparison, but they did provide instant identification. Dow reminded me of perc.
Drycleaning has a logo, too. By putting two words together the logo is... DRYCLEANING. It is recognized the world over as a cleaning process that uses solvent instead of water.
It is no secret that the industry has to be revitalized. The younger generation needs to know why drycleaning exists and why more people should take advantage of the services being offered.
Drycleaning suppliers have taken the initiative by placing a drycleaning message on trucks. They are helping the drycleaner in getting more business by creating awareness. Manufacturers who make poly bags and other accessories can help with messages. Drycleaners should participate in getting the message across to customers and potential customers by running ads in local newspapers to expound the benefits of drycleaning.
There are skeptics who are prone to criticize drycleaning messages printed on supply trucks. What they should know is that a message on a truck is a billboard on wheels that will attract motorists' attention! Over a period of time, the message will be seen by thousands of motorists. The message that arouses curiosity will have greater influence in stimulating demand for drycleaning.
The best message is the one that gets attention. When writing an advertisement to get potential customers, find out what they want. More important, what do they want from you? Do you have answers for their questions?
Advertising is not like playing the lottery hoping to win. You are advertising wanting to win.
When writing an ad, write for those who will read it. Write like you are writing to a friend. Friends don't lie. Tell them you are doing something you know they will like.
To get a customer's attention away from competition, start with a headline that stimulates curiosity. For example, why do drycleaned clothes last longer? Then your ad copy tells why.
Should we advertise our industry when many of us are successful?
The answer is yes. The industry cannot grow on failures. The purpose of the message program is to stimulate more business for the drycleaner and those connected with the industry. It will be too late to advertise when the industry is sitting up on cinder blocks. That's like the ballplayer hitting a home run after the game is over.
What about Dryel?
What about Dryel and other novelty drycleaning concepts that are being presented for home use?
Before responding we must understand why they are there. We should know more about the companies that make the products. The biggest home-product maker is Procter & Gamble. They have been making home products for more than 100 years. They didn't discover cleaning in a bag. It was discovered many times before and failed. It failed when people tried it and didn't like it.
Why did Procter & Gamble revive something that people didn't like? Giving the product a name, Dryel, didn't improve the product or its performance. They are doing it for the money and they believe Dryel can be sold by pretentious advertisements -- the slick, dressed up kind.
Now suppose Dryel would have blasted-off like a rocket, soaring with sales. That didn't happen. This is the reason why Procter & Gamble is spending millions of dollars trying to convince people to buy Dryel.
Keep in mind, P & G products are favored in major retail food stores throughout the world, and they have first preference on shelf space, and have the competitive edge over similar products. They also have the money for mass marketing using televised commercials that will reach millions of viewers.
Now here is the angst. TV advertisements are notorious for fakery and exaggerations. This is easily done when words are spoken to the camera and not to people. Communication is best when it is people-to-people talk.
Drycleaning is a service that begins with talk, person to person. A camera can't ask questions; customers can. Drycleaners have the competitive edge when voicing a message. They talk to people and not to a camera.
Demobilize mom and pop
Believe it or not, it is true. A giant bigger than others is getting into drycleaning that is going to demobilize mom and pop drycleaners from the industry. The giant is going to do it with 400 million dollars in pocket change, 150 trucks and a cleaning plant bigger than 400 mom & pop drycleaners put together.
Now here are the promises that sound like turkey gobble that only a turkey can understand. Here is what the giant promises:
Everything will be distinctive... everything. Value added courtesies will be provided. Product offerings will be expanded and 20 people will sit around and think about nothing but drycleaning. Personalized pick-up and delivery service will be provided.
What else could it be? The worst kind of service is delivering clothes to the wrong customers.
Knowing this, one of our consultants taught and encouraged drycleaners to do better. Most of them did. He was a good instructor. Unfortunately, he absconded and was last seen wearing a purple tie.
Bill Bogus is president of Textile Restoration Services Inc. in Laurel, MD. He can be reached at (301) 776-4961."Four months after Sally was hired to work the cash register at Clyde's Drycleaners, sales began to plummet and shortages began to soar. I suspected employee theft and told all the employees there would be an investigation. Sally quit without notice the next day. Immediately, the shortages ceased and sales returned to normal."
Sound familiar?
Employee theft is one of many personnel problems that is easier to prevent than to solve. To prevent employee problems, you need a screening process that will identify problem employees before they go on your payroll. This process need not be complicated or expensive.
Here are some suggestions.
Suggestion #1: Avoid crisis hiring.
"I hired Sally when we were short-handed. I needed someone real bad so I took a chance."
When you need someone real bad, odds are greater that you will hire someone real bad.
There is a natural temptation to short-circuit the standard screening process and hire a replacement immediately. Applicants you would normally judge unacceptable suddenly seem very desirable when the need to hire a body -- any body -- becomes acute.
To avoid crisis hiring, encourage applicants to submit employment applications even when you have no job openings. Keep their applications on file. These days, employees are more likely than ever to quit without notice. Having qualified candidates waiting in the wings is the best way to avoid crisis hiring.
Ask your best employees to refer their friends who are looking for work. Offer them small rewards for their referrals.
Suggestion #2: Avoid interviewing from resumes. "...and Sally's resume really looked good..."
The applicant's resume is her personal advertisement. Its purpose is to highlight her assets and hide her shortcomings. Most applicants don't overtly lie on their resumes, they just omit negative information. Unsuccessful short-term jobs, reasons for leaving, and dates of employment are items most frequently omitted from resumes.
Interviewing an applicant from her resume can lead you to overvalue her assets and never see her liabilities.
Suggestion #3: Interview from completed employment applications.
"...so I thought I could dispense with the employment application."
A comprehensive employment application is the cornerstone of every successful pre-employment screening program. It will identify many undesirable applicants early in the selection process.
A critical look at your company's employment application may suggest ways that it can be improved. Applications of the one-page stationery store variety are too brief. They fail to elicit vital information that can be legally requested.
Do not grant the applicant an interview until he fills out your company's employment application legibly and completely. Omitting answers is one way applicants conceal negative information.
Completing the employment application is your potential employee's first job task. Don't accept an incomplete or half-hearted effort.
Suggestion #4: Study the applicant's employment history.
"Later, I noticed that she left many of the work history questions blank."
The nitty-gritty of the employment application is the work history section. Recent jobs are the best predictors of future job performance and permanency. Your application should provide enough spaces to allow the applicant to list every job he has held for at least the past five years. His personal saga of success or failure is often clearly displayed in his unabridged employment record.
Application instructions should direct job seekers to list every job, including part-time, second jobs, and volunteer jobs. Beginning and ending dates of each job (month as well as year) are also necessary.
Precise dates of employment expose gaps between jobs. What did the applicant do during these periods of unemployment? Attend school? Work a short-term job he was fired from? Make license plates for the state?
Suggestion #5: Ask to see the applicant's driver's license.
"I wish I'd asked her to show me some I D."
Checking I.D. quickly establishes the applicant's identity and will often save you time. If the applicant does not have a driver's license, she should be able to produce a valid I.D.
If she has no driver's license, how does she plan to get to work? Those who depend on others to take them to work frequently have problems getting to work on time. Is her driver's license suspended? Why? Is the name on the license or I.D. the same as the name she entered on her application? Is her address the same? Does her picture resemble the person who sits before you now or does it look like someone else? Does she claim to have graduated from high school in 1996 when her driver's license says she was born in 1981?
Suggestion #6: Check work references.
"I was in a hurry so I didn't call any of her former employers."
Requesting previous supervisors' names and phone numbers makes reference checking easier. Former supervisors know the applicant far better than their personnel departments.
Former supervisors can often be coaxed into providing candid information about a former subordinate even in companies that have policies against releasing reference information.
The possibility of obtaining a candid reference from a former supervisor is well worth the few minutes it takes to make the phone call.
Suggestion #7: Ask about criminal convictions.
"After she quit, I began to wonder is she had ever been convicted of theft."
This suggestion is a must for adult applicants seeking money-handling positions. Ask the applicant, "If I could take a look at your criminal record, what would it show?" The applicant who has never been convicted of a criminal offense will tell you so without hesitation. Those applicants who hesitate usually have something to hide. The applicant who admits a recent conviction will be willing to discuss the circumstances in detail and should be asked to do so.
If the applicant claims to have a clean record, you may ask him to get a copy of his record from the local police and bring it back to you. Offer to reimburse him for the fee. The Freedom of Information Act gives us all the right to obtain a copy of our criminal records for a small fee. Applicants who have criminal records seldom return when sent to obtain copies of them.
Suggestion #8: Use a pre-employment honesty test.
"I think I'll start giving honesty test to my applicants from now on."
The case for written honesty tests is strong. Research shows that honesty tests can drastically reduce employee theft. Honesty -- defined as the likelihood to steal -- can be predicted accurately by these inexpensive questionnaires. Pre-employment honesty tests can uncover applicants' shortcomings in several important areas. Information about work history, substance abuse, work attitudes, and customer service attitudes are also provided by many of these tests.
A pre-employment honesty test will reduce the time it takes to hire a qualified applicant so she won't accept another job first. These tests tactfully ask the tough but necessary questions that you may find difficult to ask in face-to-face interviews. These tests also help insure that no critical information areas are overlooked.
James W. Bassett is the president of a firm that provides investigative questionnaires to businesses. He is the author of the Veracity Analysis Questionnaire honesty pre-employment test, The Shortage Questionnaire, The Specific Loss Questionnaire, and the Crime Questionnaire. He can be reached through his company's web site, www.theftstopper.com, or by phone at (513) 421-9604.BY JOHN R. GRAHAM
In spite of 19th hole braggadocio about rising sales figures, bottom-line results and upcoming prospects, businesses do stall and stagnate.
Streamline.com was a raging Internet stock until it ran into a wall. Kodak was a Wall Street favorite and now it's struggling to find itself. P&G once had 99 and 44/100% acceptance; now the tide seems to have gone out. For years, Xerox set the standard; then it lost direction.
It happens to smaller businesses, too. A competent, well-connected credit manager formed a company. From the moment the doors opened, it was a runaway success. For four years, there was continual growth. More employees were added and the office space doubled. Then things slowed and some months later there was an actual plateau. Finally, volume began to slide.
"I couldn't figure out what was going on," said the president. "Everything was so good for so long. Every month set a new record. Then it all began to change."
At first, the owner thought it was a "minor glitch" on the screen.
"We had been doing so well, I thought we were just slowing down a bit." When the downward slide continued, he called in a marketing consultant.
The analysis revealed that the success of the business was due mainly to his excellent networking over many years as a credit and collections manager for a large company. They fueled his success.
Then the fabric began to unravel as some of these helpful associates took new jobs and their replacements had their own vendors. Others retired and a number of businesses merged, while several excellent accounts closed their doors.
What happened?
What happened was clear: the collection company ran out of what can be called "goodwill capital." It used up its long-time relationships. Once they were gone, the company was "bankrupt" and didn't know it.
The marketing consultant also discovered that with the immediate influx of business at the beginning and the quick growth, the company had never marketed itself.
"Frankly, we didn't even think about it," said the president. "Besides, we didn't need it. We had more business than we could handle for a long time."
The scenario with an insurance group was a little different, but the results were the same. The company was formed to supply products and services to its members.
Within a short time, it recruited a substantial number of agencies around the country and became profitable.
Then, the new member supply line dried up. Even though what the group offered its member was considered outstanding by everyone who heard about it, recruiting new participants slowed to a halt. As hard as management tried, few signed on.
The experience of the networking firm was quite different. It took nearly 20 years for sales to hit the wall.
After enjoying years of growth, sales slowed and then almost stopped over a 12-month period. In spite of glowing customer satisfaction reports, new customers were few and far between.
"I've tried to stand back and assess what happened," reported the CEO. "I can't figure it out."
While the insurance group and the networking firm are different situations, they both followed the collection firm's scenario. The insurance agency buying group was made of members of the same trade association who were not part of other buying groups. Once the unaffiliated members were tapped out, sales stopped.
The networking company enjoyed a long run, nearly two decades, before sales lagged. First sales slowed, then they leveled off and, finally, they began declining.
Where's the marketing?
Like the collection company, neither the insurance agency group nor the networking company felt a need to market itself in terms of differentiating itself from the competition and building a brand image
All three firmly believed they were good at what they did. As the chairman of the insurance agency group said, "No one comes close to what we can offer our members."
Each of these companies was experiencing a predictable phenomenon: The Killer Curve.
In most cases it appears to be a Bell Curve. There is a period of growth (A) sometimes slow but many times quite rapid that is generally driven by "goodwill capital." This is followed by slower growth (B) that is often "explained" by changes in the market, the entrance of new competitors, or both.
"We had done so well so fast," reported the collection company CEO, "we just thought it was a temporary situation."
So did the owner of the networking company.
The next phase is sales stagnation, a time when business plateaus (C). This leveling off is often viewed with some concern but is generally seen as a "temporary" situation.
Finally, the curve turns downward (D) in terms of sales or profitability. Once decline sets in, it is often difficult for companies to take the steps necessary to solve the problems, mainly because they have difficulty identifying them.
There are a number of relevant implications that can be learned from The Killer Curve scenario. Here are several possibilities:
Attempts to transition into other office machines failed because the customers' picture of the company was indelible.
Amazon.com avoided becoming equated in the customer's mind with "books." It is the company's ability to deliver extraordinary service that gives it its brand identity. It can sell music, electronic equipment and just about anything else. It has built change into its identity.
Do some businesses beat The Killer Curve? Undoubtedly. But why take unnecessary chances? The Killer Curve is a dramatic portrayal of both success and failure. There are many times when a rising growth curve is the right time to sell. Snapple is a good example. As soon as the company was sold to corporate America, sales slumped.
It isn't just start-ups that fall victim to The Killer Curve. Companies that have been in business for decades can experience its effects:
1. Companies that have "more business than we can handle." They assume the sales curve will go up forever.
2. Companies that rely on acquisitions, either of salespeople with a book of business or competitors. The infusion of "new business" often masks a lack of "real" sales growth.
Is there an inevitably to The Killer Curve?
Only if marketing is missing from the entrepreneurial plan. Leave marketing out and chances are the killer will strike.
John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. He is the author of The New Magnet Marketing (Chandler House Press), the revised and updated version of his original book, Magnet Marketing, and 203 Ways To Be Supremely Successful In The New World Of Selling (Macmillan Spectrum). The recipient of an APEX Grand Award in writing, Graham writes for a variety of publications and speaks on business, marketing and sales topics for company and association meetings. He can be contacted at 40 Oval Road, Quincy, MA 02170; phone (617) 328-0069; fax (617) 471-1504; or e-mail: j_graham@grahamcomm.com . The company's web site is www.grahamcomm.com.Effective business tax planning should be a year-round effort, so it's not too early to begin thinking about your 2000 tax situation. Now is a good time to implement strategies to lessen your tax liability for the year.
Here are eight ideas that may improve your tax situation for the year 2000:
1.Keep track of business interest expense deductions.
Does your business need to borrow to finance growth or expansion or to meet other business needs this year? If so, you can deduct 100 percent of the business interest expense you incur.
2. Deduct all business account fees.
You can deduct all account fees that you pay to your service provider for company retirement plans or other services, as long as the costs are paid for separately by the business.
3.Deduct business equipment purchases.
Businesses can expense, or deduct, up to $20,000 of the cost of new equipment purchased this year. The limit will gradually rise to $25,000 in the year 2003.
Whether it's best to buy or lease new equipment depends on factors other than tax implications, including the expected life of the equipment, so talk with your business advisor about your plans.
4.Establish or contribute more to your company retirement plan.
Contributing to a company-sponsored pension or profit-sharing plan can provide you with business tax deductions.
The deduction amount can be significant -- up to 25 percent of your eligible participants' compensation, depending on the type of retirement plan, or even more if you have a defined benefit plan or multiple plans.
If you encourage your employees to share in retirement funding through a 401(k) plan or Savings Incentive Match Plan for Employees (SIMPLE), any matching contributions you make generally are deductible.
To reduce your tax bill this year, consider increasing your company matching contribution.
To make contributions for this year, you'll have to set up a pension or profit-sharing plan by the end of your fiscal year, but once you have a plan you can make contributions as late as your tax-filing date plus extensions.
Simplified Employee Pension and SIMPLE plans can be very cost-effective ways to create business tax deductions as well as attracting and motivating employees. Depending on which plan you establish, you may be able to contribute a few thousand dollars or less annually.
Don't forget to be a participant in your own plan. Using tax-deferred retirement saving plans can make your personal assets grow faster.
5.Change the structure of your business.
If your business taxes are currently assessed using your individual tax rate, as are unincorporated businesses such as S corporations, partnerships and sole proprietorships, you may be paying more than you need to. Depending on your income, your personal tax rate might be as high as 39.6 percent. Changing to a C corporation status could reduce taxes on your business profits not taken as salary.
6.Invest in tax-wise ways.
You may be able to manage your business's investable assets in ways that minimize your tax liability. Tax-exempt money market funds and other tax-advantages investments, such as municipal bonds, may be attractive options for corporate cash reserves.
If your business is in a lower tax bracket, however, you may benefit from the taxable returns on CDs, commercial paper, agency securities or taxable money market mutual funds.
7.Take advantage of the dividends-received deduction.
C corporations are permitted to exclude from their taxable income 70 percent of the dividend income from certain other corporations whose stock they hold.
The securities that pay the dividends must be held for at least 49 days. Remarketed preferreds, which are perpetual equity securities with the characteristics of a debt instrument, can also be sold at par every 49 days.
8.Defer investment income and accelerate deductions.
Defer investment income into 2001 and accelerate deductions into 2000. If you are a sole owner, partnership or S corporation that has adopted a cash basis accounting system, you can shift cash from money market funds into short-term discount obligations, such as CDs, that mature next year.
You could also delay sending year-end billing notices until 2001, prepay estimated taxes or consolidate business tax deductions into this year.
Conversely, if you expect your business to be in a higher tax bracket in 2001, or if you expect to be subject to the Alternative Minimum Tax this year, consider accelerating income in 2000 and deferring deductions until 2001 to lower your tax bill next year.
Meet tax due dates
One last note: Consider matching the maturity dates of your investments with the due dates of your tax payments, so the money is there when you need it. There is a wide variety of short-term securities available, with maturities ranging from a few days to a few months. As always, you should discuss these ideas with your tax advisor.
Date created: May 30 2000 Copyright © 2000, National Clothesline Maintained by: Hal Horning Hal Horning