The right time for some alterations
very persistent
businessman has called on me a number of times. He wants to buy
a drycleaning business. He has the money and was looking for
any going cleaning plant or franchise so he could move to the
Chicago area and be with his family. At the present time, he
lives in New Jersey and came to see
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The last time he was here, I told him this
was not a good time to go into the drycleaning business. I don’t
think he has a special liking for this industry but he was
under the impression that it is a money maker.
I told him the drycleaning business is a
good business if you know what you’re doing, have the
right location, the right help and the right attitude. Even
then, it’s not a high profit business but it can show a
good return for the investment.
He came to see me again recently singing
the same song. He still wanted to know if I knew of any good
deals in the area.
I suggested that he stay away from the
drycleaning business at this time.
The economy is down and people are cutting
back on drycleaning and related services. I suggested he look
for an industry that does better in times
like this.
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Some businesses do well in tough times as
people are inclined to take care of their possessions rather
than buy new when cash becomes more limited.
A perfect example of that is the
alteration and repair business.
Why buy new at today’s high prices
when you can repair or alter a pair of pants that are too
tight. And those who have cut back on rich food will want their
pants and slacks taken in to fit better. In the past, when cash
was abundant, they would buy new items.
I suggested that auto repair would be a
good recession-proof business.
People are not so quick to part with
$20,000 to $50,000 for a new car when they can get the one they
own repaired and keep driving it until times improve.
I also suggested he look in the telephone
book listing of businesses to get ideas for types of businesses
that would benefit from the slower economy.
He did look into a muffler franchise but
thought it was too much money and not quite the business for
him.
This morning, as usual, I worked out and
read the Investor’s Business Daily while warming up on a
stationary bike.
I came across an item that convinced me I
was giving him good advice.
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The article went on to say, “As of
Wednesday, the Retail/Wholesale-Auto Parts ranked second.
“What’s behind the group’s
rise?
“With a slowing economy, folks are
less likely to buy a new car. And when that happens, that’s
typically good for those that sell replacement parts.”
So while auto makers struggle in this
economy, auto parts retailers have taken the spotlight.
If I had a drycleaning plant today, I
would go all out to promote repairs and alternations. A leading
consultant in this field said the potential for a drycleaner
who promotes alterations would easily be 15 percent of total
sales.
Since most drycleaners pay their in-house
or outside service 50 percent of retail, a plant doing $6,000 a
week in sales could do $900 a week in alterations and make a
neat profit of $450 a week.
There are other things a person could do
to promote sales in bad times.
Cleaners could instigate a loyalty type
program for their customers and this type of promotion could be
very successful and profitable.
Now is the time to stop what you’re
doing and think. Think about what you can do to stimulate
business while others who don’t rethink the situation and
do nothing will see their sales decline.
Stan Golomb is president of The Golomb
Group Inc., a firm that designs marketing programs for
drycleaners. Contact him at The Golomb Group Inc., 7664 Plaza
Ct., Willowbrook, IL 60521; phone (800) 679-5856. His e-mail
address is:
stangolomb@golombgroup.com
stangolomb@golombgroup.com