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When it’s a question of sink or swim
Whenever a business teeters on the brink
of bankruptcy, it’s hard for an owner or manager to keep
a proper perspective to set things right. After all, a drowning
man who frantically tries to keep his head above water has no
time to gather his bearings, find the shore, and swim stroke
after stroke toward it. Most of us would rather have a life
preserver simply drop from the sky instead of swimming through
in turbulent waters. It’s just human nature. Just look at
this week’s staggering totals in your state’s
lottery jackpot and you’ll see that most of us want a
quick, easy fix.
For a cleaners sinking inevitably toward
the red (and away from the black), the idea of cutting prices
seems like a quick fix. Just offer a fantastic deal —
say, one-dollar shirts — and hope bargain hunters drop
from the sky and bring their expensive garments in for
drycleaning, as well. It’s a risky gamble, to be sure,
and cleaners have heard time and time again that it’s not
wise to slash prices to revive an ailing plant. Production may
increase, but in all likelihood, so will the problems that
already plague the store. In many cases, cutting prices only
results in losing money more efficiently.
This month, columnist Don Desrosiers warns
of the perils of looking for the easy way out. He writes:
“Price is what you compete with when you have no other
tools to fight with.” In other words, if you can’t
differentiate your business from others by your quality and
service, your only option is to reel in customers with price.
But if you lower prices to lure customers, you cannot raise
them back for fear of losing those bargain-conscientious
customers. Your business will soon end up lost at sea.
Don’s column (page 42) goes on to
point out that shirts are perceived as a pain-in-the-neck,
loss-leader item, which, incidentally, is part of the problem.
As long as cleaners think it’s acceptable to offer shirts
for a ludicrously low price, then customers will believe
that’s precisely what they’re worth. That begs the
question: if your shirts aren’t worth anything, then why
even clean them? Cleaners sell a service, not a product, so the
answer lies in raising quality, not lowering prices. To
accomplish that takes time and effort — not a quick, easy
fix. In the end, however, the extra work will pay off. After
all, customers will be willing to pay more for shirts (or other
garments) if they perceive that they are getting their
money’s worth.
No thanks for a job well done
No, it’s not just a figment of our
imagination. Although some news reports make it seem otherwise,
we are doing a better job of protecting and preserving our
environment. Drycleaners have been making progress in this area
for years, best witnessed by the dramatic decline in perc
consumption and huge improvements in the efficiency of
drycleaning machines. The industry has paid no small price for
these gains, yet criticism, not credit, is what drycleaners
usually get.
But as an industry we are not alone in
suffering the slings and arrows of the environmentalist lobby.
It runs across the board. In his book, The Progress Paradox,
writer Gregg Easterbook comments: “Despite the hysterical
tone of environmental reporting in the media, in the United
States and Europe all environmental trends, except for
greenhouse-gas accumulation, are positive, and in most cases
have been positive for decades.”
Examples? Easterbook has plenty. About
half of the lakes, rivers and streams that 25 years ago were
too polluted to sustain life have come back and are safe for
fish and humans. Smog has declined by one-third since 1970,
even though the number of cars nearly doubled and the vehicle
miles traveled increased 143 percent. Toxic emissions by
industry declined 51 percent from 1988 to 2002, while
petrochemical manufacturing, the main source of toxic
emissions, increased. Half of the Superfund sites have been
cleaned up and none of the remaining ones imperil public
health. Water consumption in the United States declined 9
percent in the past 15 years even as the population grew. Since
enactment of the Endangered Species Act over 20 years ago, at
most only one U.S. animal species has become extinct. If public
health is deteriorating due to environmental degradation,
it’s odd that life expectancy has nearly doubled since
the 1920s, Easterbrook notes.
Drycleaners have done their part in this
society-wide improvement. We’re not suggesting that we
should rest on our laurels, we’d just like acknowledgment
that cleaners are doing a good job, not a bad one.
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