The events of Sept. 11 put a damper on the International Drycleaners Congress 43rd annual convention, but still more than 80 cleaners from around the world made it to Phoenix, AZ, for the Oct. 3-7 gathering. IDC's top awards went to three industry members from the United States. Jack Barron of El Paso, TX, received the President's Award while Tom Gosselin of Lebanon, NH, was presented with IDC's International Drycleaner of the Year honor by IDC executive director Manfred Wentz. Gosselin, in his role of IDC president, presented the association's George Shepherd Award to IFI CEO Bill Fisher.
IDC officials had debated whether to cancel the convention in the wake of the Sept. 11 attacks, deciding that it was consistent with the spirit and mission of IDC -- to strengthen international understanding and goodwill in the textile care industry -- to go ahead with the conference. Since its first convention in Tokyo in 1959, IDC has met every year, covering most of the globe in the process. Next year's gathering will be Aug. 27-31 in London.
OSHA has delayed plans to unveil a new approach to ergonomics in the workplace. Following a series of summer hearings, the agency had planned to announce its new ergonomics program in late September. Events of Sept. 11 caused the postponement.
In a brief announcement, OSHA said its involvement in rescue and recovery efforts at the World Trade Center and the Pentagon prevented it from "devoting full attention to this important issue." At this point, OSHA would only say that an announcement of its ergonomics plan "will be made later this fall."
A year ago, OSHA announced a sweeping ergonomics program but that plan was strongly criticized by business groups and, ultimately, shelved by an act of Congress earlier this year. Those regulations would be in effect now had it not been for the protest against them and subsequent congressional action. The International Fabricare Institute was among the many business groups that opposed the rules, saying that they were as overly vague and potentially financially devastating for businesses.
The congressional mandate prevents OSHA from reissuing the regulations in a "substantially similar format."
To set a new course, Labor Secretary Elaine L. Chao scheduled a series of public forums in July designed to hear testimony and advice from interested parties on ergonomics.
Although it's not known what form a new program might take -- mandatory rules, voluntary guidelines or some form of legislation -- Chao outlined the following principles for the department's new approach to ergonomics:
Updates on OSHA's plans are available on the OSHA web site: www.osha.gov.
Allegations of gender-biased pricing have plagued the industry for years despite the efforts of many to put it to rest. From California to Florida and everywhere along the way, in halls of legislatures, the front-pages of the press and the court of public opinion, cleaners' pricing practices have been scrutinized and criticized. Does it cost more to launder a woman's shirt than a man's? "That depends," answers the industry. "But it shouldn't!" shout the critics. And so it goes. Wherever there is an enterprising reporter looking for a story or a lawmaker looking for some publicity or an activist looking for attention, cleaners find themselves in a spotlight that, try as they might, they just can't seem to stay out of.
In the following articles two industry members who have long been in the forefront of this issue recap where we have been and offer their thoughts on how we can keep from going there again. It may be, suggests Ed Boorstein, that the cost of fighting the battle is not worth it. That cost has included innumerable unfavorable portrayals in the media of drycleaners as discriminators against women. Do the few extra cents charged for some garments make up for that cost?
On the other hand, Dave Norford believes the problem persists because too few cleaners have followed the directives from industry leadership on how to handle this issue. If all cleaners took care to ensure that their pricing follows accepted guidelines, there would be no "story" for the media to report or new laws for legislators to enact.
Both may be right. What is certain is that the industry suffers as long as the issue persists.
Gender-based pricing by drycleaners for the laundering of women's shirts/blouses has been a "hot button" national issue for 20 years. The perception of gender bias in pricing is almost as emotionally charged as the reality. Either makes many women livid, particularly those with high-level awareness of the historical feminine struggle for equality. These women tend to be successful in their lines of work and, as parents, guide their children's moral and intellectual development while teaching them marketplace coping skills. They are our important customers, raising important customers of the future.
In my opinion, it is an unwise marketing strategy to risk alienating them over the principle of production cost differential or concern about perceived losses incurred by "eating" the additional cost of hand-finishing a small shirt or blouse. Why not consider this a "discount" given to instill customer loyalty?
In its Summer 2001 newsletter, the Neighborhood Cleaners Association (NCA) asks and answers the question "why do women's shirts often cost more to process than men's shirts do?"
NCA states: "The answer is simple, time and labor... [automated shirt finishing] machinery is designed to accommodate a man's big, boxy cut shirt... it also stands to reason that a shirt designed to fit a female form won't fit the cleaner's automated machinery that was designed to finish a man-sized shirt."
We fabric care professionals know that NCA's logic is incontrovertible, but I believe that it misses a vital point. Women, or for that matter, men who have been sensitized to women's reaction to even the appearance of gender bias, view the "doesn't-fit-the-form" explanation as an industry evasion of responsibility to develop and use flexible automated equipment which will accommodate all normal adult sizes of both sexes. At the Clean 2001 show, machinery was demonstrated that has done just that and can finish knit shirts acceptably, as well.
Of course, investment in this or like equipment to handle what in the average plant constitutes a quite small proportion of the shirt laundering work load may not be cost effective. Since it is most often the issues of size and shape as rationale for upcharges that offend, might it not be better as a goodwill builder to absorb the cost of hand finishing required because of size and shape exclusively?
When a woman's "man-tailored" blouse/shirt comes before our eyes at the counter in my plant, we explain that we can wetclean and finish it on the drycleaning side at our (higher) drycleaning price or finish it on the hothead at the laundered shirt price, which we point out cannot be expected to be as fine as the steam and hand-iron finish we achieve in drycleaning.
Some typical responses we receive are "Do it in your laundry; I didn't pay much for it" or "Do it. I hate ironing." We do get repeat business for the hot head version, which takes 8 to 12 press lays to complete.
In the Spring of 1989, George Washington University Professor of Law and Activism John F. Banzhaf, III, brought an action in the Washington, DC, Office of Human Rights alleging that two local drycleaners engaged in gender-based pricing relative to shirt/blouse laundering. Although the two accused cleaners were not members of any trade association, the Metropolitan Drycleaners Association volunteered to try to bring truth and balance to the case and resolve the pricing bias issues.
At the conclusion of very tense negotiations during which Banzhaf played the media like the seasoned activist he was, language was agreed upon and disseminated to Washington, DC, drycleaners, stating, in effect, that size and shape of shirts/blouses could not be a price point factor, but fanciness and delicacy requiring special handling can. That language forms the essence of the approach suggested by the MidAtlantic Association of Cleaners to non-discriminatory pricing, which is available as guidance today.
In September 1989, The American Drycleaner printed a long article which I had submitted describing the Banzhaf ordeal. At the conclusion of the article, I offered the following observations which I believe are valid today:
"I am convinced that the fabric care industry would be served best by accepting the Banzhaf position that size and shape are connected immutably to sex; that unisex pricing for laundering and finishing of plain tailored shirts of basic cotton or basic blends becomes accepted industry practice nationwide.
"Why? Because the issue has festered in the public mind for too long; because, over at least most of a decade, it has been a recurring problem; because each time we 'win,' we lose, for the issue we 'won' makes us look like bad guys anyway; because with each 'win' we are perceived less and less as the 'dependable ally' which many years ago behavioral pollster Ernest Dichter recognized that most consumers wish their fabric care service provider to be. But most important, we need to hear the pain bred of centuries of societies' mistreatment of women, as well as accept the irrefutable fact that, at least in the western world, more women than men are created small.
"Why does the industry find it so difficult to accept the 'unisex' pricing principle? Is it because as entrepreneurs we resent and resist outsiders telling us how to run our businesses? Is it because small shirts do cost more to produce? Is it because we are entitled to be paid fairly for our labors? Of course, it's all of the above.'
"But let's recognize that we do feel uneasy charging additionally to launder those occasional little boy's or big football player's shirts that come our way. We seldom charge more on the drycleaning side for an obese man's pants, or charging less for a mini-skirt than for one of regular length. We often dryclean and wetclean a heavily soiled piece without charging for both processes. We volunteer to clean American flags and 'coats for kids' gratis. We settle claims out of 'goodwill' when unconvinced of their validity and charge the cost to advertising. Do we really know the cost of these 'losses'? Are they really losses?
"America has been defining and re-defining the terms 'justice,' ''fairness,' and 'freedom' and studying their interaction since our country's inception. We fabric care professionals, as individual American citizens, and as representatives of our industry, have the opportunity now within our businesses to eliminate even the appearance or the effect of sex discrimination. We have the opportunity to demonstrate that our sense of social justice and fairness overrides our economic fears and entrepreneurial independence. I have adjusted my price schedules. I think we all should."
Ed Boorstein, CED, CPD, CPW, is owner/operator of Prestige... Exceptional Fabricare in Silver Spring, MD. He serves on the boards of the MidAtlantic Association of Cleaners (MAC) and the Professional Wetcleaning Network (PWN) and was the recipient of IFI's first Meritorious Service Award for fostering positive recognition of the industry. Contact him by phone at (301) 588-0333.Pricing based upon race, color, religion, national origin, gender, marital status, sexual orientation or age, has no place in the professional textile care industry. That's not conjecture; it's the law. However, allegations that the law is too often ignored persist throughout the country.
Here's a case in point. In late 2000, the cleaning industry in Maryland was put on notice that Delegate Anthony G. Brown had drafted a fair pricing bill. In a letter to MidAtlantic, he stated: "It has come to my attention that drycleaning and laundry establishments in Maryland are continuing to practice gender-based pricing. As you might be aware, Article 49B of the Maryland Code, which is Maryland's anti-discrimination law, prohibits discrimination in public accommodations. The Human Relations Commission, which is responsible for enforcing this law, considers gender-based pricing a form of discrimination. In addition to the mandates of Maryland's anti-discrimination law, drycleaning associations have adopted guidelines that promote non-discriminatory pricing efforts. Gender-based pricing continues to occur, however, on a consistent basis. In response to these deplorable practices, I have been asked to sponsor a bill in the 2001 session which specifically addresses the discriminatory pricing policies within the drycleaning industry. Many believe, as do I, that a more aggressive approach needs to be undertaken in order to control the widespread occurrence of gender-based pricing.
Even though Delegate Brown's bill as drafted was redundant in that it would outlaw that which is already illegal, it had to be addressed for the benefit of IFI/MidAtlantic members.
I relate this occurrence because I think it is demonstrative of the pressure and position that state legislators across the country too often assume, and the time it takes an aggressive trade association to investigate and respond to a bias pricing ultimatum. I think it makes a fairly simple case for the importance of being part of a strong cleaning industry trade association because our trade associations are the only line of defense against poor legislative and regulatory proposals. If there were no trade association standing guard, hurtful cleaning-industry specific measures would simply sail through the legislative and regulatory processes.
In the past, MidAtlantic has been successful in defeating measures similar to that proposed by Delegate Brown in Virginia and Maryland, and it was the only trade group to assume a role in doing so.
However, the short and simple fact is this: While we believe IFI/MidAtlantic members have embraced the law and operate within it, there remain those outside of the trade association information loop that ignore realities, and in so doing substantially contribute to and serve to help make real, a poor industry image.
Other than a lack of professionalism, there is no reason that pricing bias allegations should so often have to be addressed when the remedy is so simple. A clearly stated and carefully followed Pricing Policy is all that is necessary.
It is MidAtlantic's position that equitable prices for servicing any garment should be based upon its characteristics and the amount of labor and expertise required to clean and finish it. There need be no other considerations -- period.
Considering that labor is the largest cost factor, a garment with design characteristics or unusual care label instructions requiring specific processing techniques -- including finishing by hand -- costs more to produce than automated machine-processed or machine-finished garments. That's simple economics.
Everyone wears a shirt, or dress, pants, jacket, or whatever, but each is different. Different fabrics, different colors, design, buttons, belts. Different care instructions. Some smaller, and some larger in size.
What makes them the same, is that those engaged in the textile care industry attempt to take all of these various garments, each different from the other, and place them into broad categories, which are then averaged together to create a basic service price for each. It's a formidable task that requires more than "seat of your pants" guesses when it comes to knowing your constantly changing costs of doing business.
As I have testified on numerous occasions, my investigations reveal that when garments are incorrectly priced, it is most often the result of poor training, rather than a deliberate attempt to overcharge or otherwise incorrectly represent the price for a specific service.
Careful investigation of price overcharge complaints often reveal that the allegation of prices based upon the gender of the person who owns or wears a specific garment is the result of a textile care employee attempting to be helpful and answer a question over the telephone without a garment to examine, or, relying upon some sort of short-cut answer that only serves to raise more questions than it answers. There are no short-cut answers when it comes to a question about prices.
The textile care industry must be concerned and vigilant of its image. Headlines like, "Women taken to the cleaners," "Cleaners wring women," "Women getting a dirty deal at the cleaners," "Women steamed about shirt pricing" all hurt. They are hurtful and offensive because sometimes the allegations are accurate, and sometimes they hurt because they are blatantly untrue and appear to be purposefully created and distorted.
Because some self-proclaimed, self-styled public interest groups routinely use the telephone to "survey" prices and "report" them to the media as accurate, some textile care facilities have simply stopped responding over the telephone to questions regarding price. Warning flags go up when an unknown caller uses gender-based terms for their frame of reference.
"What do you charge to launder a blouse?"
"Do you charge more to launder a shirt that belongs to a woman?"
Clearly this fear of responding stifles business and breeds resentment. This need not be the case if a well-defined Pricing Policy is in place and everyone who answers the phone and serves customers has been trained to respond in a specific manner.
MidAtlantic has a long history of being proactive as a leader in encouraging all members to examine their pricing with regard to the removal of even a hint of bias.
MidAtlantic's suggested written Pricing Policy and training guidelines are an essential benefit provided to members. The carefully crafted suggested Pricing Policy and suggested responses to an inquiry regarding prices, removes the fear associated with responding to price related questions.
However, with all that having been stated, regrettably, there remain too many businesses that are outside of the trade association information loop. How misinformed some industry members are when they say, "I don't need to be part of a trade association. It does nothing for me."
They refuse to consider the positive possibilities that being an active cleaning industry trade association member holds during what can arguably be viewed as the most fast-moving dramatic period of change our industry has ever endured. Their survival is doubtful.
When it comes to the notion that investing any minuscule amount of money to be part of a trade association is too much, the old adage about being "penny wise and pound foolish," comes to mind because in today's society it's so much easier to stay out of trouble than to get out of trouble. This is especially true when it comes to having a solid Pricing Policy, knowing how to implement and effectively use it.
MidAtlantic Executive Vice President David Norford, a recognized pricing policy authority, is frequently called upon by state and local governing and regulatory authorities and has offered testimony on this subject before the United States Civil Rights Commission. MidAtlantic Association of Cleaners is the IFI affiliate representing members in Virginia, Maryland, West Virginia, and The District of Columbia. For information about the association, including how to join, call (800) 235-8360, or visit www.macla.net.The following information for the industry and the general public on gender-based pricing is provided by the International Fabricare Institute on its web site (www.ifi.org):
IFI believes that gender-based pricing has no place in the drycleaning industry. The price of a garment should not be based on:
1. The gender of the person who brings the garment in.
2. The gender of the person who wears the garment.
3. The size of the garment unless it is so small or so large that it is outside the range of normal sizes.
The price should be based on the processing needed to return a professional garment to the consumer.
Any garment that requires special handling may demand a higher price. Items that have care labels that say "Hand Wash," "Wash Separately," or "Dry Flat" will need extra care.
Some other garment characteristics that may require special handling to watch out for are: angora, beads, bias cut or large collars, dark or bright colors, elastic cuffs or waists, fragile buttons, heat sensitive fabrics, knits, military creases, pleats, sequins, and unstable dyes.
When it comes to cleaning "Old Glory," you can never take too many precautions.
Drycleaners donating their services to clean American flags for free would be wise to follow these tips recently released by the International Fabricare Institute.
First of all, it is important to remember that the American flag is a beloved symbol capable of inspiring strong emotions, so counter help should take extra time to inspect them when they arrive for cleaning.
Look for problems such as color bleeding or fading, fraying of the seam and edges, rips, tears, breaks and wrinkles. Since most flags are hung outside and are severely weather-beaten, the counter inspector should try to determine the extent and cause of the banner's uncleanliness. Insect damage may be apparent.
American flags are comprised of several different fabrics and fibers. Some are 100 percent wool or cotton, while others contain acetate to produce the red stripes and nylon for the white stripes. If a flag is made of nylon or nylon and acetate, then it is generally sewn with a common thread. If that thread has not been pre-shrunk, then atmospheric conditions or the cleaning process can cause shrinkage, which may lead to the puckering of seams, especially along the red and white stripes.
In fact, it is nearly impossible to eliminate the flag's puckered condition once the cotton thread has shrunk.
Before cleaning or stain removal, flags should be tested for colorfastness. If the flag is extremely soiled, utilize extreme caution when handling. If the flag contains halyards -- a gold rope and tassels -- it is better to remove them. Tie the tassels together with string to avoid fraying or damage during cleaning.
If the halyards are not detachable, the entire assembly should be bagged prior to the drycleaning process. Pre-treatment is required if the halyards and fringe are badly soiled.
Wetcleaning is actually the preferred method of flag cleaning for most flags. Prior to wetcleaning, all trims, painted designs and colors should be tested for colorfastness.
American flags can be drycleaned in about three to five minutes. Standard pre-treatment techniques such as spray spotters are acceptable if the flag has been tested.
Fragile flags should be placed in a net bag during cleaning.
When finishing the flag, the stripes should be placed parallel to the buck if the stripes are sewn together. After positioning the lay, bottom steam will relax the fabric. The operator should then pull in the lengthwise direction to avoid puckering the stripes along the sewing thread. If the stripes are printed on the fabric, then it does not matter how the flag is placed on the press.
To produce a superior finishing job, spray water from the water spray gun before the head is lowered onto the fabric. On fancier flags, such as ones with a fringe, it may be necessary to hand finish the area adjacent to the fringe. It may also be necessary to finish some areas of the flag on a puff iron.
Once the flags are clean, there are many ways to package them. One common way is for the flag to be folded several times in a lengthwise direction before it is folded crosswise so that the blue field is in the upper left corner.
If the flags are going to be stored for a lengthy period of time, cleaners should place them in a box lined with white acid-free unbuffered tissue paper. Rolls of tissue should be placed appropriately to cushion the folds of the flag. This will prevent creasing.
An alternative long-term storage method is to cushion the folds with white acid-free unbuffered tissue paper then wrap a cotton bedsheet around it. Never use plastic to wrap around a flag. Make sure the bedsheet has been washed without the use of chlorine bleach or fabric softener and has been thoroughly rinsed and dried.
Customers should be informed that the box containing their flag should be stored in an area devoid of moisture, excessive heat or cold, and insects.
The Clean Canada trade show scheduled for next spring in Toronto has been moved to a larger facility.
The Toronto Congress Centre, where the show was originally to be held, did not contain enough space. With more than 100 exhibitors are anticipated, the show will be held at the nearby International Centre at 6900 Airport Road in Mississauga, Ontario. Dates remain the same: April 12-14.
Exhibiting hours are also unchanged: 11 a.m. to 6 p.m. on Friday, April 12; 10 a.m. to 5 p.m. on Saturday, April 13; and 10 a.m. to 5 p.m. on Sunday, April 14. Seminars will be held in conjunction with the exhibits.
For more information, contact Canadian National Show Management at (888) 695-2677 or (416) 695-0309. They can also be reached by fax, (416) 695-0381, or e-mail, info@cnsm.ca.
Two years ago, a major issue in the industry was the Silent Spring Institute study in Newton, MA. Remember it? It was a study that attempted to link breast cancer to chemical exposure, specifically in the drycleaning and professional lawn service industries. For a little while, headlines everywhere asked if drycleaning caused breast cancer.
Nobody outside the industry bothered to question the validity of the study, which offered no evidence, merely conjecture. For some unknown reason, women with more education and wealth were being diagnosed with breast cancer at a more frequent rate. Silent Spring wanted to find a reason for this. They turned to the drycleaning and lawn service industries because they figured that those are services more often employed by people of a higher income bracket. They spent $100,000 and randomly questioned 1,350 women between the ages of 35 and 75 to find out more. Their conclusions were inconclusive, to say the least, but their suspicions remained leveraged toward drycleaners and lawn cutters.
Two years have passed and the issue is no longer prevalent. Sure, there is still an occasional news story that warns of the potential threat that perc poses, but that really is nothing new to the industry. Drycleaning kills. Drycleaning causes breast cancer. Drycleaners are gender biased. Drycleaners are polluting the planet. Drycleaners shot JFK. Negative publicity is one of the perks of the job.
The media's negative predisposition on cleaners isn't about to go away. There will always be a controversial issue pervading through headlines. Once in a while, cleaners get a vacation from the bad publicity, but it always comes storming back.
Still, that is not to say that cleaners shouldn't strive for positive publicity. That is not to say that cleaners shouldn't educate the public when misinformation that damages the industry seeps into headlines. All of these things must happen. Will it make a difference? Yes, but not overnight. Issues like the Silent Spring study will fade away, but others will take their place. It's an ongoing battle. It's important to remember that all you can do is... all you can do. Clean flags for free. Clean coats for kids. Educate your customers on your pricing policies. Follow the law and subscribe to environmentally-safe business practices, whether it is a closed-loop system or an alternative solvent. Support your association. If you do these things, then you will have truth on your side. Accusations come and go, but, in the long run, the truth is what people will remember.
There are two types of problems: Those that you can do something about and those that you can't. One problem that the industry has faced for many years falls into the first category. And plenty of people have tried to do something about it. Unfortunately, until everybody gets involved, it won't be solved. That's the problem of gender bias in pricing. Hardly a year has gone by over the last two decades that the issue hasn't raised its ugly head, leaving cleaners with black eyes and red faces -- even those who are not guilty as charged. Many policies have been proposed that would put this issue to rest. Just about any of those policies would work, if every cleaners chose one and adopted it.
Unfortunately, there are too many cleaners who have been lackadaisical either in adopting a policy or implementing one, and that leaves the entire industry open to attacks by politicians, the media or so-called public interest groups who know an easy target when they see one. In this month's issue Dave Norford and Ed Boorstein offer two different approaches to putting an end to the "gender bias" issue. Although different, either one would work. And there are others out there, too. Since it has been proven over the years that this issue is not going to just fade away, each cleaner needs to adopt a proactive policy that ensures fair pricing, not just in theory but in fact. Only then we will be able to rest assured that we won't be painted with a broad brush of "discrimination." See how your pricing policies stack up against the guidelines offered herein -- and help take this target off our backs.
The immensity of the attack on September 11 is taking its toll in so many, many ways -- more than most Americans dared imagine -- from the unprecedented loss of life to the disruption of our economy. Dazed and confused at first, the immensity of the tragedy only slowly seeped into our consciousness.
In retrospect, life in those first few days after September 11, 2001 was a state of suspended animation -- motion without movement. Then we told ourselves it was time to get moving again -- to pick ourselves up, get away from the TV, and get down to business. Isn't this what we have always done? And we tried. But it was difficult to shake the sadness.
We pushed ourselves and went through the motions, but something didn't work the way it had in the past. "Kicking butt" is the way we talked before September 11.
What's new and different is that the feelings just don't go away. Getting going again sounds easy. It just takes will power, we tell ourselves. But somehow it doesn't work. We're mentally lethargic, not just lazy.
Over against what is a new experience for most of us, how should we behave in this new business environment? What's appropriate? And what's out of place? What can help us regain the momentum?
1. It's no fun being blindsided. Anyone who gets caught off guard has a bruised ego. We had become comfortable with the idea that the U.S. was indeed the world's only superpower. That made us feel safe -- perhaps too safe -- but safe, nevertheless. Then to have our world disrupted by the most unexpected enemy is a shock to our national psyche. Formidable enemies we can fathom -- and grudgingly respect. But some guy in a cave in a backward country? That hits where it hurts.
2. Don't fight it. One way or the other, we are all affected by the attack on America. That's an unavoidable fact. While we take pride in our ability to get over hurdles, we have never encountered one like this. The experience may be something akin to having surgery. We think we are feeling great -- until we try to get out of bed.
There's a big difference between self-pity or feeling sorry for ourselves. Getting back to something near normal may just take longer than we might imagine, like recovering from surgery.
3. We each react differently. Over the days following the nightmarish events of September 11, 2001, you probably noticed that some people weren't as talkative as they had been, while others couldn't seem to stop talking. We all react differently to crises and we need to be free to do what seems best.
The point is that we should not expect anyone -- particularly customers -- simply to pick up where they left off on September 10. Some may be able to do this, but others will need more time.
4. Take it easy. In the days after September 11, 2001, we put aside many of the tasks we had thought were so important just the day before. While we want to get business back to the way it was, that may be easier said than done. Also, it may be easier for some of us than it will be for others.
Inside us, there is a lurking fear that things may not be the same. We weren't prepared for such upheaval. That takes awhile to sink in.
As a poet wrote, "Things take time." So does the adjustment, perhaps much longer that we want or expect.
5. Be more tolerant with ourselves and everyone else. Just about everyone has felt up and then down. At one moment, we're energized and seemingly back to normal. Then, without warning, it's down in the dumps, surrounded, without warning, by a black cloud. It's easy to say that we should get up and brush ourselves off. That's what we have done often enough. Somehow, this is different.
We are not alone. Others feel the same way -- including customers, suppliers, and everyone we deal with in business. Strange as it may seem, "pushing" seems out of place. This is one time when we should trust people to operate at their own speed. Customers will come back. Homebuyers will come back. Automobile shoppers will come back. Air travelers will come back. When they get ready.
6. Don't try to grab on to tragedy's coattails. Over the past couple of decades, observers of life in America have told us that our values have changed, our morals have eroded, and that we're only out for number one. Perhaps we didn't sink as far as some have thought. All of a sudden, good taste is in. Restraint is in. We are even dressing more conservatively. This is good news. No one told us to change; we did it. It seems as if we instinctively responded correctly.
All this is to suggest that we do know how to act appropriately, even though some companies appear to be trying to outdo each other in advertising their patriotism. Trying to benefit from tragedy will only backfire. We don't need "messages" from every CEO in the country.
So, where do we go from here? First, we've taken a big body blow individually and as a people. We have been violated and to some extent, control of our lives has been taken away from us. That's tough for anyone to take, particularly Americans. Yet, there are people who depend on us to perform up to expectations, tasks that need to be done, and challenges that must be met. That's where we find ourselves in the post-September 11, 2001 era. It may be that the late Jerry Garcia of The Grateful Dead was thinking of us when he said, "Somebody has to do something and it's incredibly pathetic that it has to be us." In a way, it is, of course. But we're also up to it.
John R. Graham is president of Graham Communications, a marketing services and sales consulting firm. Mr. Graham 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). He writes for a variety of publications and speaks on business, marketing and sales topics for company and association meetings. Graham is the recipient of an APEX Grand Award in writing. He can be contacted at 40 Oval Road, Quincy, MA 02170 (617-328-0069; fax 617-471-1504); j_graham@grahamcomm.com). The company's web site is www.grahamcomm.com.The tax bill that was passed recently significantly expanded retirement savings incentives and increased potential deductions for business owners who offer retirement plans. As a business owner, now is a good time to review the retirement plan you offer or to establish a plan if you haven't already done so.
Higher contribution levels
Under the new law, participants in certain defined contribution retirement plans, such as 401(k) plans and 403(b) plans (for eligible non-profit organizations), may contribute up to $11,000 of their salary in 2002, an increase from $10,500 this year. That amount is scheduled to rise annually in $1,000 increments to $15,000 in 2006.
The annual elective salary deferral limit for Savings Incentive Match Plan for Employees (SIMPLE) plans, available to companies of 100 or fewer workers, will rise to $7,000 next year, up from $6,500 this year. By 2005, that amount is scheduled to rise to $10,000.
Participants age 50 or over will have the opportunity to use a "catch-up" provision that may allow workers them to contribute an additional amount above the annual deferral limit.
Eligible participants in 401(k) plans may be able to make catch-up contributions of $1,000 next year, an amount that increases in increments of $1,000 a year, to $5,000 in 2006.
SIMPLE plan participants in this age group may be able to make catch-up contributions of $500, a limit that increases in increments of $500 a year to $2,500 by the year 2006.
For employers who offer defined benefit plans, the annual maximum benefit allowed will increase from $140,000 to $160,000, beginning in 2002. The compensation limit, the annual amount used to determine and calculate benefits, is increased to $200,000 in 2002, up from $170,000 currently.
This change will give plan participants an increased ability to save for retirement in a tax-advantaged way, and you as an employer an opportunity for increased business deductions.
Increased portability
The new tax law addresses one of the chief concerns of American workers -- the portability of employer-sponsored retirement savings.
Beginning in 2002, after-tax contributions to qualified retirement plans will be eligible to be rolled over into Individual Retirement Accounts (IRAs), which can extend tax-deferred saving. Deductible contributions originally made to an IRA will be eligible for rollover into certain employer-sponsored retirement plans, beginning in 2002. Workers who are retiring or changing jobs will have more choices regarding where to move their retirement assets.
Estate tax changes
For business owners whose wealth is chiefly tied to their business, changes in estate tax laws will necessitate a thorough review of current estate plans.
The tax law repeals the estate tax and the generation-skipping transfer (GST) tax beginning in 2010. In the interim, it increases the amount of the GST exemption and the unified credit that allows taxpayers to exempt a portion of their assets from estate taxes. In 2001, up to $675,000 of assets qualify for the unified credit and up to $1 million of assets may be used for GST exemption. The unified credit will increase to $1 million in 2002 and gradually increase based on a phased-in schedule to $3.5 million in 2009. The GST will increase to $1.5 million in 2004 and to $3.5 million in 2009, based on a phased-in schedule.
In 2002, the highest estate and gift tax rates will be reduced from 55 percent to 50 percent and will then gradually drop to 45 percent in 2007. Upon the repeal of the estate tax, the top gift tax rate will be reduced to the top individual income tax rate of 35 percent.
Keep in mind that as the law now stands, the estate tax will revert to its current form after 2010, unless the repeal is extended. In 2011, the estate tax is scheduled to roll back to the current $675,000 unified credit exemption amount and the estate tax rate is slated to return to the current 55 percent.
Gifting accomplished during one's lifetime will now be treated differently. From 2002 onward, the maximum lifetime gift exemption will be $1 million. In addition, after 2009, transfers made in trust will be treated as a taxable gift, unless all of the income of the trust is taxed to the granter or the granter's spouse.
It will be important to manage your estate plan between now and 2010 in order to take full advantage of the phased-in changes. You should review all of your current estate planning documents, such as wills, trusts and powers of attorney. Also under review should be your titling of assets in order to take advantage of the increasing unified credit. Your gifting strategies should also be thoroughly examined.
Other provisions of the new tax law may affect you as a business owner or an individual. Now is a good time to meet with your tax and financial advisors to review the new tax law and its implications for your business planning and your individual tax planning.
Michael I. Falcon is first vice president and chief operating officer of benefits and investment solutions for Merrill Lynch.Friendship or loyalty, that is the question.
You want to be a critic? Be knowledgeable on a particular subject or thing. When you are about to criticize, keep in mind that good is not always good and bad is not always bad. Also keep in mind there is a little something bad in something good.
The same goes for something bad -- you may find something good. With such dispersion, a critic must make judgment without favoritism or ridicule. Good critics are almost nonexistent. Blaming and accusing has become widespread. Blaming others is much easier and most gratifying for the accuser.
Mark Twain as a critic was diplomatic. He was asked for an opinion on the music of German composer Richard Wagner. He said that Wagner's music is better than it sounds.
Now a dissatisfied drycleaning customer could be the most undesirable, unforgiving critic who could haunt you for a long time unless restitution is made in an amicable manner.
Starting your discussion with a militant attitude, you become a frustrated loser.
Instead, begin with telling the customer that her satisfaction is guaranteed. Then explain what happened. Whatever you do, don't beg for mercy. That's when the customer gets disgusted and sticks it to you.
How often have we heard and said that customers don't appreciate our services? Many times perhaps, but it all depends how we are focused. Are we appreciative of our customers? Do we tell them that their patronage is appreciated? Have they heard that? Perhaps not.
The best way, providing your work is good, in order to get appreciated, is to become friendly. Treat your customers as friends and they will respond as a friend. Don't expect or want loyalty. In the business world loyalty is not achievable, too demanding and just wishful thinking. Perish the thought.
Friendliness is better than loyalty. Loyalty could be an agonizing experience that could end up in a fist fight because of betrayal. Stick with friendliness.
Small brand retailers are being choked by the conglomerate chain operators who are doing it with money power. They buy more for less and sell to the consumers for less at prices the small retailers can't match. Price is what chokes the small retailer. This is what happens to small retailers selling brand merchandise.
Drycleaners do not sell brand merchandise. They don't sell a product. They sell service. Period.
Don't yell quality if it isn't. Let quality speak for itself. Customers will know if it is there. To make sure that quality is there, put value into the garment.
Knowing you want to please customers as friends, quality will automatically appear. The power of friendship is greater than loyalty. In order for the drycleaners to keep friendship alive, quality must be maintained.
The sad part of dealing with customers is that they grow old or retire or move on, therefore we must attract new customers in order to survive.
Today people are selective in where they shop, what they buy and in choosing a drycleaner. To attract attention, make your business stand out from your competition and the conglomerate chain operators.
You need to decide what customers should know about your business. See your business through your customer's eyes to find the value of your services.
In the service industry, especially drycleaning, there is a no substitute for knowledge. People prefer doing business with a knowledgeable drycleaner. Ignorance creates enemies.
Your success depends on knowledge and friendliness. Be noticeable.
Bill Bogus is president of Textile Restoration Services Inc. in Laurel, MD. He can be reached at (301) 776-4961.
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