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GreenEarth cuts some affiliation fees;
announces Dow-Corning deal
GreenEarth Cleaning is
cutting in half certain affiliation fees for drycleaners who
add multiple machines at a single location.
The company said that effective July 1 it
will charge $1,250 for the second and subsequent dry-to-dry or
washer-extractor machines a drycleaner begins operating at one
location using the patented silicone-based GreenEarth Cleaning
solution. The affiliation fee for the first machine at any
location remains $2,500. The discount does not apply to
multiple machines used at multiple locations.
“As drycleaners ourselves, we are
pleased to respond to a growing number of requests from people
in our industry to help drycleaners expand in this difficult
financial period,” said Jim Barry, the company’s
chairman. “GreenEarth Cleaning is committed to helping
drycleaners succeed, and we’re delighted to make this
special offer so they can grow more quickly.”
Barry said the drycleaning
industry’s earnings before interest, taxes, depreciation
and amortization have fallen from 30 to just 12 percent over
the past decade. Barry attributed the drop in drycleaning
business to the nation’s still recovering economy and a
more relaxed dress code in the workplace.
He said the reduced affiliation fees are
designed to help drycleaners convert more easily to the
GreenEarth system, which he said has boosted revenues in
locations where the solution is promoted to consumers.
To use the patented GreenEarth Cleaning
process, drycleaners currently invest $2,500 in an annual
license fee per machine at every location. Barry said capital
costs to use GreenEarth Cleaning’s system are similar to
costs for perc or hydrocarbon drycleaning machines — an
average of $40,000. The cost of the silicone-based solvent is
less than $20 per gallon, and one gallon can clean from 1,000
to 1,500 pounds of clothing.
GreenEarth Cleaning has licensed 13
machine manufacturers to develop equipment for use with the
silicone-based solvent. These include Böwe Garment Care
Systems, Firbimatic, Forenta, Hoyt Corp., Lindus, Marvel
Manufacturing Company, Multimatic Corporation, Multitex
Maschinenbau, Realstar, Renzacci, Sanyo Techno Clean, SailStar
Machinery, and Union Drycleaning Products.
Dry-to-dry machines manufactured by
Union, Firbimatic, Realstar, Forenta and Böwe and a
reclaimer made by Hoyt Corp. are currently approved for use
with GreenEarth. Other equipment is in the beta field test
phase and should be approved soon.
“We will continue to work very
closely with manufacturers to be certain their machines perform
at the high standards that cleaners have come to expect of
GreenEarth Cleaning’s system,” Barry noted.
“That’s very important to us, our customers
and their customers.”
Dow-Corning agreement
The new affiliate discount follows
GreenEarth Cleaning’s announcement that it has signed an
agreement with Dow-Corning to provide drycleaners with another
source of silicone solvent used in the patented cleaning
system.
Previously, the sole supplier was GE
Silicones, which is a joint venture partner of GreenEarth
Cleaning and Procter & Gamble.
Barry said Dow-Corning will be required to
adhere to the high standards the company expects of every
supplier selected to accelerate adoption of the GreenEarth
Cleaning solution.
“The actions we’ve already
taken just this spring demonstrate our firm commitment to
delivering the best processes, best equipment, best products
and best performance possible for drycleaners,” Barry
said. “We’re delighted we have been able to take
these positive actions on the industry’s
behalf.”
Barry said the GreenEarth system has been
used to clean more than 15 million pounds of garments in
approximately 200 locations throughout the nation.
According to GreenEarth, drycleaners who
have adopted its system report their customers can actually
see, feel and smell the difference in their clothing.
Barry said economic benefits reported by
GreenEarth Cleaning drycleaners include reduced labor costs of
up to 15 percent and increased sales ranging from 15 to 70
percent.
GreenEarth Cleaning was created in 1998 by
three drycleaners who, in the face of regulatory pressure
and other business issues, were seeking an environmentally
preferable alternative to the nation’s leading
drycleaning solvent which is used by 85 percent of commercial
operators.
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