Oregon Dry Cleaners Assoication
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Oregon Dry Cleaners Association |  |
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From the Editor's Laptop... I have always wondered why our industry hasn't done crossover promotions. The "marriage" of advertising for our industry with the myriad of other products and services makes a lot of sense with the opportunity for greater exposure at a much reduced cost. Sure, many cleaners have managed to do this on their own, but only on a limited plant by plant basis and at great cost. Over the years I have seen a couple of "Poly Promotions". Some product or service will have their name printed on garment bags and we were offered the option of purchasing these bags at a reduced cost to help promote them. The Weather Channel and Pure Citrus are two examples. This past year, EcoHangers were introduced to cleaners with advertising for a number of national companies. These were distributed to cleaners at no charge. The problem with these advertising ventures is they are only one sided. We do the advertising for them and they reap the benefit.
Someone finally figured it out. Here is an excerpt from a letter I received, dated March 19, 2008 . . . Carl's Jr. is working closely with the Drycleaning & Laundry Institute on a humorously marketable and mutually profitable campaign for the Chili Cheese Burger and Fries. These products have received an official endorsement by the Board Members of the Drycleaning & Laundry Institute. The Campaign will include press releases and commercials discussing how delicious the new burgers are, but how messy they are at the same time. The campaign will explain how pleased drycleaners across the country are thanks to the added business they will receive from people dripping chili and cheese on their clothing. Along with this letter, a full color, professionally produced decal was included to place on the front door of my cleaners. It reads . . . We Support the Carl's Jr. Chili Cheese Burger & Fries. "See us after you indulge!" Your Drycleaning and Laundry Institute Member. A Celebration of Messy Goodness. Before I tell you why I am not participating in this promotion, I would like to acknowledge and thank the Board of DLI. The endorsement of this promotion is almost the perfect marriage of crossover advertising. Not only are we promoting another product, but they are promoting us as well. It couldn't be better. Or could it? I have never eaten at a Carl's Jr. Restaurant. While I'm not a big fan of fast food, Carl's Jr. has a history of what I would call offensive advertising. For years they have consistently shown poorly dressed and overweight characters sloppily eating their food. Shoving juicy burgers into their mouths and dripping it all over themselves, they seem to want to always promote sloth and gluttony. If my customers eat at one of these restaurants and drip on their clothes, they will come to me anyway. My concern is that if my customers see me promoting this, they will think of me as wanting them to spill and further, they will see me as a greedy businessman who will reap the benefit. I do thank the DLI! I applaud their efforts and believe they are on the right track with this cross promotion. I look forward to future promotions for products a little less, well, messy. This month, President Scott McClure invites you to tell us what is working for you to make your business more efficient. Tell us, what IS working for you? He also invites our Allied Trades members to submit information to this newsletter to better help our members run their businesses. Rosanne Wilson has already stepped forward. She owns 1st Independent Leasing in Beaverton Oregon and has a wealth of information about the benefits of leasing over purchasing. The coming weeks and months promise to be challenging, more so than ever. Don't underestimate the value of your membership in this organization!
Contact Brian
Olson
at
bolson@oregondrycleaners.org.
Brian Olson CED, SSB, Director, District 1 - Newsletter Editor
Spring has sprung! Here it is the first of April and we are all looking for that bump in sales that usually comes with spring cleaning. We know that we have to pay those dreaded taxes and get our returns filed once again. The past month has been a busy one on the national scene for dry cleaners and I hope that we continue to see State and National Associations stepping up for their members and protecting their rights. First, in New Jersey, a bill was introduced to ban PERC from the state similar to what California has done. The State Association along with NCA and other National Associations were able to defeat this bill and now a new bill has been introduced with the help of NCA that would stop any action until 2012, This will give ample time for all cleaning solvents to be investigated. In Maryland, a bill was introduced to hold a cleaner responsible for any damage to a garment, even if it was not their fault, and the cleaner would have to try to recover their money from the manufacturer of the garment. Thankfully this bill was killed on the floor. The days of cheap hangers are over. It looks as though the complaint filed by M&B Hanger arguing for a tariff on hangers imported from China is sure to happen and all cleaners are going to see price increases of 30% to 60% based on what I have read. This is going to happen so get ready as we also have seen the size of our poly rolls go down in weight but not price. If you haven't raised your prices in awhile then this is something you should be considering as your costs are certainly going to continue to go up. What has helped you become more efficient in your operation? I would like to hear from members about how sales are holding up and what suggestions you might have for your fellow dry cleaners to help control costs. For our Allied Trades members, I encourage you to become involved by contributing articles to this newsletter highlighting new products and innovations to help keep us informed. We need everyone's input to continue to make this association and newsletter the tool to help build our businesses. Have you got something to say about the dry cleaning business? Write an article and let us all know your thoughts. Good dialogue is something we need. I am looking forward to hearing from you!
Contact Scott
McClure
at
smcclure@oregondrycleaners.org.
The purpose of this article is to help new businesses and old businesses alike with the decision to lease or to buy. Business owners can benefit from the many benefits leasing offers and overcome perhaps any fears that exist about leasing. That is why 90% of the businesses in the United States today choose lease financing. "It's the Lease we can do". DID YOU KNOW that 2 out of 3 pieces of equipment in the United States are purchased through a lease? WHY? Companies are realizing the many benefits of using leasing as a means of acquiring the essential equipment they need today. From improved cash flow to increased tax deductions, Leasing provides companies with the easiest method to acquire the equipment needed to operate, with flexible terms for every budget. The need to satisfy your customers with quality results for the garments they entrust to your care is the key to surviving business cycles. You should be asking yourself, What changes can I make to improve my business and grow my revenues? Today it is more critical than ever before. Nationwide, U.S. businesses leased over $250 billion in equipment last year. Oregon businesses leased $7.9 billion alone! Instead of paying cash for equipment, business owners can conserve their cash and reinvest it into the business at a higher rate of return. With leasing, your business can spread all the payments over time so you pay for the equipment as you are using it. Under a leasing arrangement the equipment is paid for as it generates profits. Equipment purchased with cash must be paid for long before it can generate any profits. With leasing, you OWN the equipment at the end of the lease term. Leasing offers 100% financing. That means a company can acquire essential operating equipment and begin using that equipment immediately to generate revenues with NO large down payments. Leasing companies will fund 100% of the cost of the equipment, including delivery costs and installation costs. Bank financing usually ends up meaning that you pay for your own installation costs . Banks have "tightened" their credit requirements for businesses during this downturn in the economy and make it far more difficult to borrow funds needed to buy equipment. Leasing companies are more flexible and cater to small businesses because we understand small businesses generate most of the revenue in this country. What can be financed? NEW or USED equipment and virtually anything that is needed for your dry cleaning business today can be leased. Even software programs to make you more efficient and customer friendly can be leased. Now is a great time to upgrade your older or "tired" pieces of equipment that aren't as efficient as they once were. If you can handle more shirts, or more loads in the same hours with better quality, you will keep the customers coming. Leasing provides customers with "One Stop Shopping" The customer can select the equipment from any seller, and can have multiple vendors or supplies of equipment all on one lease! New or used, we will put all of the equipment items you need into one lease with one easy payment! Leasing keeps pace with technology. New and innovative products are available today that can make your company more competitive, achieve higher production, and efficiency. The problem is - these products cost money and lots of it. Leasing allows you to have the products you need with a minimal outlay of cash, spread out over time. All leases carry fixed affordable payments that will offset inflation. I am new in business and would like to lease, can I? YES! Any business under 2 years in operation, or just starting can also apply for affordable leasing. 1st Independent Leasing also specializes in this "new business" financing. How long does it take to get the application approved? Generally 1 - 2 working days. A one page application is generally all that is needed for businesses that have operated 2 years or longer. Additional information will be needed to complete a newer operation, but with all information received, the application decision is usually made in 1- 2 working days. What about payments and terms? Leasing companies today will custom tailor the term and the monthly payment to fit the client's budget. You can take up to 5 years to pay. There are other programs such as step-up and step- down payments, deferred payments, and seasonal payments that help each client with the uniqueness of each person's business. Is there a limit on the dollar amount? The only "limit" is at the "low end". Most lease companies start at $2,000 and there is no maximum depending on the client's qualifications. In the next newsletter, I will explain the Economic Stimulus Act of 2008 signed by the President on Feb. 13, 2008 to offer you income tax incentives for acquiring equipment for your businesses. You are eligible for these incentives even if you lease the equipment!
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