Editorials

There’s a reason Bob Barker doesn’t have to worry about being unemployed anytime soon. For about 30 years, he has served faithfully as a game show host for “The Price is Right.” Contestants can win “fabulous prizes” and one of the most common ways is for them to guess how much an item costs. As the entrepreneurial land of the free, America is obsessed with pricing. Here, more than any other country, consumers shop carefully, always trying to get the most for their money. There are even several web sites devoted to helping shoppers find out how much different companies charge for the same product. Price comparison is in our blood. We worked hard for the money and we want to spend it wisely.

In the drycleaning industry, there is a tendency to point fingers. High-end cleaners believe that quality is the key and they know they have customers who are willing to pay a lot of money for it. On the other end of the pricing spectrum, value cleaners satisfy their customers by offering a lower price that is commensurate with the services they perform. Does this mean that the high-end cleaners are greedy and charge too much, or that the value cleaners bring down the integrity of the industry by producing shoddy results? Of course not. Both statements are ridiculous simplifications. You can’t group all the cleaners in the industry into two categories that are so limited in scope. The truth is, every plant is different. When a person invests money so they can own a business, they have earned the right to develop their own business philosophy.

So, how do you know when the price you charge is right? Well, are your customers happy with the service they get for the price you charge? They won’t be coming back if they aren’t. If that happens, your profitability will be dead in the water. Of course, there are many ways to make a profit. Some places try to charge more; others may reduce their profit margin and try to make it up in volume. The real thing to consider is, do you really know your customer base? Are you doing everything you can to meet their needs? What else can you do to make sure they come back? Once you know the answers to these questions, look at your bottom line and decide for yourself if you are a success.

The cycle of regional trade shows is starting up and, with the economy in recession, it will be interesting to see how allied trades and cleaners respond. During past recessions, trade shows have been downbeat and sometimes even gloomy affairs. That’s certainly understandable and even to be expected. When business is off, retrenchment becomes the order of the day. Spending money and having a good time take back seats to cutting costs and working harder. Optimism is hard to muster.

Yes, it would be a mistake not to trim the fat and streamline operations in response to the current tough business conditions. But it would be an even greater mistake to act as if the current conditions will persist indefinitely. Sooner or later — and the sooner the better — the rebound will begin. Some cleaners will see a rebound in their business even before the general improvement takes place. Why? Because weaker competitors who can’t hack it will fold up. Then their customers will be at your door. When your business picks up, will you be ready? Or will you be trying to push through the work with a bare-bones staff and creaky equipment and yesterday’s technologies?

Planning now for the better times that are surely ahead offers some tangible bottom-line benefits. For example, interest rates are lower than they have been in 40 years. Don’t expect them to stay low once the economy begins heating up. Now is a good time to borrow the money you need to invest in your future. It may be hard to think of taking on the risks that borrowing entails if cash flow is not what it used to be, but if you weigh your plans, goals and future needs against the risk, you might find that this is the best time to reinvest in your business.

Even if you determine that now is not the time to make that investment, that’s no reason to stay home, working in isolation and waiting for that better day. Take in a trade show or convention near you. Get away for weekend, mix it up with your peers, find out what the experts are saying and prepare yourself to make the best of the good times that are to come.