EDITORIAL:If you don't dress up, who will?

The war of casual wear vs. business wear is still being waged. Certainly, a trend of corporations adopting less stringent dress codes has been growing the past ten years. In a 1995 poll conducted by the Society for Human Resource Management, 90 percent of the companies surveyed allowed workers to wear casual clothes to work, either regularly or on specified days. When you consider that there was a 10 percent drop in men's suit sales between 1995 and 1999 (according to the retail market research firm NPD group), casual wear seems to be as popular as ever.

However, clothing groups have tried to fight back with slogans like "It's Time to Get Dressed" and "It's Time for Dress Up Thursdays." Unfortunately, there has been little discernible impact as of yet.

Maybe in time, the casual wear trend will be reversed and drycleaners will face more prosperous times. Then again, the casual wear trend may continue to grow and cleaners will only have more to complain about. Regardless of what the future holds, cleaners cannot afford to wait and hope for the best. Instead, it really is time to set an example for your customers. Wear professional clothes to work and convey a professional image. Not only will it inspire confidence from your customers, but it will be a direct affront to casual wear. After all, doing nothing only contributes to a dress down mentality.

Right now, IFI is encouraging its members who dress up to send in a picture of themselves for entry in a "Best Dressed Drycleaner" contest. This is a great idea because it recognizes the cleaners out there who are doing more than complaining. Skeptics may believe that a few drycleaners dressing up won't change the casual trend one bit. That might be true, but what might happen if thousands of drycleaners began dressing up?

Certainly, anything is possible. For cleaners to send a message to the rest of the world, it will require widespread participation. Nothing would kill that message quicker than widespread apathy.

EDITORIAL: Getting a fair price in the right way

We have always been skeptical of the practice of adding an "environmental surcharge" to invoices. Yes, we know some cleaners do it and feel it's quite justified considering the burdens that have been placed on them by new environmental rules. And we know that it is a common practice in other industries, too. Nonetheless, environmental compliance is just one of many costs of doing business today. Can you imagine how long the invoice would be if all the costs were itemized? We really didn't need yet another reason to be wary of these surcharges, but the class action suits reported this month on page one give us another one. While they don't directly affect the drycleaning industry, the precedent set in them surely could and we hope cleaners who are adding on these surcharges are paying attention.

In short, such charges can't be represented as a tax that is remitted to the government. It is true that most of these costs are due to mandates from the government, but the courts are saying that you can't tell customers that these charges are to cover costs created by the government unless you are, in fact, giving the money directly to the government. Otherwise, you must be specific in saying that the surcharges -- whatever you wish to call them -- are being used to offset your own costs and to boost your own bottom line.

It is a shame that so many cleaners feel they can't pass along to their customers the regular increases they are seeing in their own costs -- for labor, for utilities, for supplies, for insurance and, yes, for environmental compliance. But let's face it. That is the industry's problem. For some sad reason, when it comes time to put a price on the services provided, many cleaners don't feel they can fairly charge what it costs them to do the work. (Does anyone really process a shirt for 99 cents?)

You need to raise your prices to account for your increasing costs. If you're like most drycleaners, the increase in the general inflation rate has far outstripped your prices during the time you have been in business, whether that's been five years or 20. But when you do raise prices, be professional and business-like about it. Don't use the excuse that "the government made me do it."

Help with "sizing" up a situation

It makes good sense in letting customers know how we dryclean their clothes. We should tell them what we do and why. We should also tell them the precautions we take with delicate and expensive garments. And we should also point out that quality is more than just words. Quality is something you can see, feel and smell. And above all, tell them that quality in drycleaning maintains the color, shape and texture of the garment.

Women are more caring than men about clothing. They ask more questions and want reliable answers.

And importantly, you can't fake quality with nice words -- women won't believe it until they see it and feel it. They know when it is not there because they have a method of finding out. It is the same method they use when the go grocery shopping, especially in the produce department. They look, feel and smell.

Now in drycleaning, the search for quality begins when the woman lifts up the garment bag. Her attention is immediately drawn to her favorite garment, whether it's a jacket or whatever. This time it is the jacket. She inspects and inspects. She gently rubs the fabric. Then she holds it up to her face and gently rubs it against her cheek. She's not saying a word, nor smiling.

The drycleaner, watching her every move, also is not smiling. The woman quits inspecting. She looks the cleaner square in the eye and asks, "What did you do to this jacket? It feels like burlap."

Now flustered and a bit angry, the drycleaner responds, "What do you mean, what did I do? I did nothing wrong. The jacket looks good to me. What's your problem lady?"

"Mr. Drycleaner, or whatever your name, this jacket is 100 percent cashmere. I paid $400 cold cash for it. Now it looks like something cheap bought from a thrift store. What are you going to do about it?" she asks.

Swallowing hard, with a remarkable change of voice, the drycleaner said, "Please don't get upset. I'll fix it. I'm sure I can. I'm a reliable drycleaner. Trust me. Just give me some time. Not more than a couple of days."

The woman thought for a moment and said, "I'll give you a week and nothing more."

"I'll take it," he said.

He knew he had to do something quick. The woman was out to get him. He distinctly remembered being up twice against a small claims magistrate and twice he lost. He believed the local magistrate would get him again, that's for sure.

He called on several of his drycleaning friends. No help there. All they wanted to talk about was how slow business is. Disappointed with drycleaners, he called his supplier. The warehouse manager answered, "All of our salesmen are out making calls, but I know what you are saying. Here is the number for our chemical supplier. They're good people, I'm sure they can help you. Call them up."

He did call, and was referred to the company's chemist. After listening to the drycleaner's problem, the chemist responded, "From what you are telling me about the lady's jacket, she is absolutely right and here's why. The textile mills use a special formulated substance called sizing in order to give fabrics a soft, luxurious feel. Unlike starch, the sizing is flexible and holds the shape of the garment with newness retention. The purpose of this is to make garments comfortable to wear with good appearance."

"Back in the early years, outer garments were not treated with sizing. There was no such thing. Wools were itchy and scratchy. During that time street lampposts not only provided illumination, but a good place for back scratching. Today there is no need for that as garments are comfortable to wear."

The drycleaner was beginning to understand the purpose of sizing, and what happens to a new garment when drycleaned the first time.

The chemist said the sizing is soluble in solvent. Chemical manufacturers recognized this change from the beginning, and not only did the manufacturers replicate the sizing the textile mills are using, but made a sizing that made finishing easier for the pressers and spot removal easier for the spotters. Because of sizing, spots didn't stick to fabric like crazy glue.

The cleaner smiled. He knew what the chemist was saying and he was impressed.

The chemist asked the drycleaner, "Are you now using sizing in your cleaning system?"

The drycleaner said, "No."

"Start using sizing, that should solve your problem," the chemist said. "If you do, it will also please the lady with the jacket."

The chemist asked, "Did the woman really say the jacket felt like burlap?"

"She sure did. She was mad like a pit bull and that scared the hell out of me," said the drycleaner.

So the drycleaner followed the chemist's advice and discovered that he was right.

It is unfortunate there are salesmen who don't know the value of the products they are selling. Their excuse is that the cleaners don't ask. And another thing, there are cleaners who repeat like a parrot, "Your price is too high," no matter what product is in question. The salesman feels disgusted and walks out.

This is a sad situation. Products are made for the benefit of the users and their customers. The salesman knows this, and he also knows which products are best to benefit the cleaner.

The salesman is more than just a salesman. By calling on drycleaners every work day, he learns more abut human nature. He knows which cleaners are deadbeats, which are successful and which will go belly up. The salesman is a psychologist.

Those "wannabe" salesmen who "wannabe" successful in sales should know that products aren't made to be placed on shelves or stored in warehouses. They are made to be sold. They are meaningless until someone buys the product. This calls for effective advertising that tells "why" and effective salesmen who explain "how" it works.

Now the drycleaning industry, being big in numbers but small in units, has a definite need for supply salesmen who know how the industry works and what is needed to keep it working. Not many years ago a salesman who met these standards and believed in what he was selling would benefit the drycleaner and his customers. Not only was he an effective salesman, but a counselor as well. He worked diligently for his customers in order for them to succeed. His name was Waldo Starkweather. However, as a salesman he was more comfortable being called "Starky." Not too many people are familiar with the name Waldo.

There was another person who had the name Waldo. That person is Ralph Waldo Emerson (1803-1882). He was a famous American essayist and poet. He and Starky had little differences in name preference. Emerson preferred to be called Waldo instead of Ralph, whereas Starkweather preferred to be known as Starky instead of Waldo.

Starky always believed that the products he was selling would benefit the drycleaner. He called on more successful drycleaners because he helped them to become successful. Starkweather was an Adco salesman from head to toe. He believed in helping customers from the beginning.

Don't be "myth-led" about marketing

Call it branding. Call it marketing. Call it whatever you want. But it has the singular objective of motivating the right customer to want to do business with a particular company or buy a particular product or service.

This may seem rather simple on the surface and we can argue over the words, but this is the heart of marketing. Even so, marketing is perhaps the most misunderstood term in business.

At times, even those who are given the title of "Marketing Manager," "Director of Marketing," or "Vice President of Marketing" are unclear and sometimes confused in their understanding of marketing's role. The way management can be heard discussing marketing suggests there is more than enough room at the top for clarification of this critical business function.

It does not come as a surprise that company executives question the effectiveness of marketing. "We spend lots of money and what do we have to show for it?" is a question that's often asked.

One reason for all this confusion is that marketing seems to be shrouded in myths and misconceptions. Getting rid of these is an opportunity to see the marketing function in a clearer light and to take advantage of the powerful and positive role marketing can play in growing a company.

Here are nine myths that can thwart successful marketing efforts.

Myth #1. Marketing can be done on a shoestring.

How to market without spending money is a popular subject. There always seems to be an article, seminar, or book promoting "marketing on a shoestring." Why doesn't someone write about "accounting on shoestring," "selling on a shoestring," or "manufacturing on a shoestring"? Why is it just marketing that gets the shoestring treatment?

It's often difficult to understand that marketing is an investment in the future of a company, a product, or a service

In other words, marketing costs money. Depending on what needs to be accomplished, the price tag on marketing can be high. And it will be substantial if a company wants to differentiate itself from the competition, achieve significant visibility, and gain market share.

At the same time, it's easy to waste (throw away) marketing dollars. Without a clear understanding of objectives and tactics, money is literally thrown away.

Myth #2. Marketing supports sales efforts.

This is one of the most popular marketing myths and it's particularly prevalent with business owners and company executives. They see marketing as assisting the organization's sales activities. The sales department is the heavy and marketing is the water boy.

Companies have been known to do things backwards -- and marketing is close to the top of any list. Here's a simple way to set the record straight: Salespeople are interested in orders; marketers are interested in customers. The first task is to make sure there is a market for the product or service being offered. That's a marketing task. If there is a market, then marketing identifies the customers, creates the message, and sets in motion a plan to elicit interest from the target constituencies. Now, sales is ready to go to work.

Myth #3. Marketing takes too long.

There is a second, often unspoken, part: "We need sales now." Marketing isn't an instant answer or a miraculous cure-all for slumping sales. The best quick fix to increase sales is to offer generous incentives, give away big discounts, or simply slash prices. These are sales strategies and they have nothing to do with marketing.

Marketing takes time. But a carefully crafted and well-executed marketing plan produces continuing positive sales results over a long period without having to resort to price cuts.

Whether it is Wal-Mart or Tiffany's, Giorgio Armani or Office Depot, customers seek out these retailers because of value, not just price. They will get what they want for the money they spend. That's marketing.

Myth #4. Marketing is just another word for advertising.

If there ever was a common misconception about marketing, this is it. Marketing and advertising are often used interchangeably by those selling and producing advertising.

Depending on the goals of the marketing plan, advertising may be one component of an overall program that includes a variety of promotional and public relations activities. The full effect of marketing is achieved by using a number of tactics at the same time to create a cost-effective impact.

Myth #5. We don't need research; we know our customers.

It's easy to assume we know our customers. Why should we be confident? We've been serving them for years. But times change and so do customer demands and expectations.

A marketing consultant was asked to review a series of help wanted ads for insurance salespeople that had failed to attract candidates.

The consultant reported that the ads were appropriate for a period of high unemployment but were out of synch with the current low unemployment situation. Aimed at the "recent college graduate" and those seeking "a good career," the ads offered little more than "a golden opportunity."

This is a basic but good example of how even a modicum of research of recent college graduates who fit a sales profile would have been helpful in designing an employment package and an advertising campaign that fit their expectations.

Myth #6. Marketing is just frosting on the cake when sales are up.

It's true. Marketing is often ignored during periods when sales are strong. When sales drop, there's never enough money for marketing.

These common attitudes reflect a lack of understanding of the function of marketing. A consistent, unified, coherent marketing program is designed to produce a constant flow of business to minimize the "hills and valleys" so many companies face.

The process of influencing how customers view a company and its products must be continuous to maintain its marketplace position and to deny competitors an advantage. Influencing how a company is perceived is fundamental to its success and not frosting on the cake.

Myth #7. Marketing is OK for big companies.

It is often assumed that it takes a big company with extensive resources to benefit from a marketing program. While it's true that large companies tend to take marketing seriously, companies with proportionately smaller budgets can benefit from marketing.

A West Coast insurance broker saw the need to differentiate itself from a growing number of both larger and smaller competitors. "We wanted to get away from a price driven posture and have customers choose us because they see us doing a better job protecting their assets," said the vice president in charge of marketing.

After adopting a marketing message that fit its objective, the company set out to position itself as a knowledge-based broker. Although its budget is limited, each marketing activity serves to reinforce the competence theme.

Myth #8. Marketing only wastes money.

There are good reasons to hold this view because many so-called marketing decisions actually waste financial resources.

The person in charge of "advertising" at a community bank didn't know that the radio spots he purchased were running through the night. "I thought they were on at drive time," he said.

When the advertising fails to produce positive results, someone will correctly conclude that spending the money was a waste. Marketing isn't the culprit, however. People who lack an understanding of the subject cause the problem.

Marketing that is based on solid information and focused on the correct audience produces positive results. But like any other discipline, good marketing takes talent, knowledge, and experience.

Myth #9. Marketing and sales are one and the same.

It can be argued that this should be at the head of the line -- the number one marketing myth. So why leave it to the end? Because this is where the confusion begins and ends. Some companies try to disguise the salesperson's role and give them the title of "Marketing Representative."

Often those who claim to understand the distinct roles played by marketing and sales have difficulty keeping functions separate in practice. It's so easy to fall into the trap of viewing marketing as "sales support."

The success of the dotcoms in raising venture capital was a marketing success story. Good marketing connects with what already exists inside someone's head. In this case, it was greed. Because investors "wanted to believe," the money flowed freely. The salespeople only needed to take orders. It wasn't until there was nothing to show for the dollars invested that the fantasy faded.

Home Depot's Expo stores are an excellent example of a marketing-driven retail concept. It took the company a few years to find the right formula, but found it they did. The stores attract crowds because they are designed to appeal to the life-style "pictures" homeowners have in their heads of kitchens, baths, floors, custom appliances, lighting, and outdoor living.

It isn't all the appliances and lighting fixtures and floor tiles that make the difference. It is placing them in appealing and compelling settings that connect with the customer.

In creating what is nothing less than a Disney World of the Home, Expo is a marketing triumph.

The objective of marketing is to seal the deal, while the goal of sales is to facilitate the order. Separate and distinct as the two functions may be, they are also two sides of the same coin.

If the marketing is on target, making the purchase makes sense to the customer. The role of sales in this process is to stay close to the customer, interact appropriately, and serve as a guide and counselor. In this way, marketing and sales complement each other in a way that results in creating willing -- and at times -- eager customers.

The failure of companies to harness the full power of marketing inhibits growth. Getting rid of these myths can open the way to benefiting from marketing as well as sales.

Checking out on-line cash management

Online business cash management is no longer in its infancy. Revenue from the transactions of corporate customers of electronic banking services accounts for 37 percent of cash management revenue today and is expected to account for 47 percent by 2005, an increase of $4 billion, according to The Tower Group.

Demand for online banking services is growing as evolving technology increases their convenience and cost-effectiveness.

If you're looking for ways to take your business banking online, you'll need to consider what capabilities and functions will make your online experience convenient, secure and valuable for your business.

Easy access
Before you even begin to think about what functions you'll need, make sure your online business banking service is easy to access. You'll want an integrated suite of robust, easy-to-use 24-hour banking services with access to all financial activity through a single electronic portal. That online portal should be a source of account access, financial information, analytical tools and educational resources to help manage all aspects of your business's life cycle. It's likely that your cash management needs are more extensive and sophisticated today than ever before.

Whatever your accounting and treasury service needs, you'll want to consider these features in an online cash management service:

Information reporting. Look for a service that provides comprehensive balance and transaction reporting through a single account with a seamless link to your online portal. You'll want access to current information about your account and loan balances, Automated Clearing House (ACH) and Fed wire transfers, checking and credit card activity and lockbox receipts.

For added value, look for a service that allows you to view from one central account online information from all of your business and financial accounts, no matter what institution holds the account.

To further your financial management abilities, you'll want to make sure that balance and transaction reports can be downloaded into a variety of financial software applications.

Transaction processing. To eliminate your need for excess paperwork, make sure you can create and execute a variety of electronic receipt and disbursement transactions online. Electronic transactions are a reliable, cost-effective alternative to the traditional check settlement process.

Both deposits and disbursements can be handled electronically. You can automate the collection of your client receivables, for example, and even require that the transaction be approved before it is executed.

You can also automate the movement of funds in other business accounts to your central asset account, either in fixed amounts at periodic intervals or in transfers based on parameters that you select.

Look for a system that includes an electronic bill payment service, so you can pay bills on a timely basis. A business bill payment service is perfect for all of your vendor payments, from equipment purchases to the monthly rent payment. Your system should be able to handle one-time payments as well as repetitive payments.

To streamline payroll processing, look for a service that deposits payroll proceeds directly into employee accounts and lets you make your federal and state payroll tax payments online.

Control features. You may want to use online cash management applications to delegate daily administrative tasks to employees, yet ensure that you'll maintain financial control. Your electronic cash management service should include this feature.

You should be able to authorize who can create and release a transaction, designate who can access information and establish spending limit controls for transaction processing.

Enhanced security. Protecting your financial data from unauthorized viewing and modification is vital.

Your online cash management service should use state-of-the-art Secure Socket Layer (SSL) technology, which is used worldwide to protect the integrity of data.

To further strengthen security, you'll want potential users of your service to pass through an extensive gateway before gaining access.

Many services use only a two-tiered authentication platform, but you can find some that offer a three-tiered process that requires users to enter your company's name, a user identification number and a password.

An online business banking service can be a valuable tool for day-to-day cash management. If you want to manage your cash flow better, talk with your financial consultant about choosing an online service that offers the optimum in management capabilities.

Date created: Jan 30 2001
Last modified: Jan 30 2001
Copyright © 2001, BPS Communications