Presentation given by Christopher White & Ed D\'Elicio at the California Cleaners Association convention Fabricare 2012 in Long Beach CA. How using certification and focusing on key financial and service scoring trends drycleaners can be regional leaders in quality and profitability.

1. Quality
the
Key
to
Profitability

2. History
of
America’s
Best
Cleaners
• Founded
in
2000
• 2006
– Ini@ally
a
cost
group
of
high
end
– Developed
the
only
independent
drycleaners
cer@fica@on
process
in
conjunc@on
with
the
Hohenstein
Ins@tutes
• 2002
• 2007
– Formed
into
a
coopera@ve
group
to
build
rela@onships
with
the
elite
– Cer@fied
our
50th
Affiliate
design
houses
• 2008
• 2004
– Developed
a
comprehensive
– Worked
with
top
execu@ves
in
database
of
quality
control
fashion
to
formulate
a
business
measures
and
repor@ng
strategy
to
provided
an
accredited
– Received
trademark
and
support
group
Cer@fica@on
mark
for
ABC
• 2005
– Chris
White
departed
from
Madame
PauleKe
to
partner
with
Ed
D’Elicio
to
Incorporate
ABC

3. History
of
America’s
Best
Cleaners
• 2009
• 2011
– Developed
the
most
comprehensive
– Katherine
McGraw
PaKerson
independent
Green
Cer@fica@on
for
joined
ABC
team
as
Marke@ng
drycleaners
with
the
Green
Business
and
Public
Rela@ons
Specialist
Bureau
– Included
Route
Pickup
and
– Mark
Josef
Shapiro
joined
the
team
Delivery
Secret
Shops
to
to
to
provide
E
Myth
and
cer@fica@on
mandate
management
coaching
services
• 2012
• 2010
– Launched
new
consumer
driven
– Began
par@cipa@on
in
closed
Beta
website
tes@ng
for
SystemK4
– Began
Webinar
Wednesday
– Developed
the
first
ever
Secret
Shop
Series
for
Route
pickup
and
delivery
– Star@ng
ABC
Next
Genera@on
service
Group
for
next
genera@on
management
and
owners

6. Founder
Ed
D’Elicio
• Over
40
years
in
the
Industry
• Built
and
Owned
1994
American
Drycleaner
Plant
of
the
Future
• Special@es:
– 3D
CAD
Design
– Financial
Analysis
– Mergers
and
Acquisi@ons
– Business
Planning
&
Development

7. Execu@ve
Director
Christopher
White
• Over
25
years
in
the
Industry
• Designed,
Built
&
was
Director
of
Opera@ons
of
Madame
PauleKe
• Special@es:
– Business
Planning
&
Development
– Technical
Training
– Plant
Design
– Team
Training
and
Development
– Financial
Analysis
– Execu@ve
&
Management
Coaching

8. Marke@ng
Specialist
Katherine
Pa6erson
• Over
20
years
of
Marke@ng
Experience
• Worked
in
Interna@onal
marke@ng
for
10
years
• Special@es:
– Marke@ng
Strategies
&
Execu@on
– Graphic
Design
– Email
marke@ng
– Public
Rela@ons
– Social
Media

9. Execu@ve
Coach
Josef
Shapiro
• Over
20
Years
of
Teaching
and
Coaching
• Cer@fied
E-­‐Myth
Coach
for
five
years
and
recently
reorganized
the
E-­‐Myth
Corporate
Structure
• Special@es:
– Personal
Development
– Execu@ve
Coaching
– Management
Development
– Family
Business
Specialist

11. Marke@ng
Community
Retail
Involvement
Loca@ons
Staff
Client
Quality
Development
Services
Management
Garment
Development
Quality
Pickup
&
Delivery
Route
Vehicle
Service

13. • Developed
in
2005
in
conjunc@on
with
the
Hohenstein
Ins@tutes
(RAL
990)
• The
Only
Independent
Cer@fica@on
• Trademarked
Brand
and
Cer@fica@on
Mark
• Open
to
all
Drycleaners
interested
in
available
markets
• Annual
one
day
On
Site
Inspec@on
• Quarterly
Secret
Shops
of
Retail
loca@ons
• Quarterly
Secret
Shops
of
Route
Services
• Internal
Monitoring
• Mandatory
par@cipa@on
in
Development
mee@ngs
• Mandatory
par@cipa@on
in
Educa@onal
Workshops

14. “You
can
increase
quality
and
produc?on
at
the
same
?me
-­‐
you
just
have
to
know
how.
It’s
like
driving
at
25mph
versus
100mph.
When
you
are
driving
slowly,
you
have
?me
to
look
around
and
not
pay
a6en?on
to
what
you
are
doing
-­‐
when
you
are
speeding,
you
HAVE
TO
pay
a6en?on!”
Stan
Kaplan

15. How
We
Work

16. Site
Secret
Inspec@on
Shopping
Consumer
Internal
Surveys
Financials

17. Typical
Trend
Quality
Produc@on

18. ABC
Trend
Quality
Produc@on

19. • Proper
P&L
Structure
Internal
– Direct
to
Sales
Expense
Financials
– Direct
to
Produc@ve
Expense
– G/S/A
• Variable
Produc@ve
Labor
– Cost
per
Piece
– PPOH
– Internal
Percentages

20. • Outside
Structure
• Call
Area
Site
• Client
Transac@on
Inspec@on
• Produc@on
Workflow
• Equipment
Opera@ons
• Garment
Quality
• Produc@on
Environment
• Employee
Training
Programs
• Marke@ng
Calendar
and
Materials

21. • Outside
Structure
• Call
Area
Secret
• Client
Transac@on
Shopping
• Garment
Intake
• Garment
Quality
• Website
&
Social
Media
• Scheduling
of
Route
PU
&
Delivery
• Delivery
service
• Overall
opinion
of
the
business

22. • Call
Area
Consumer
• Client
Transac@on
Surveys
• Garment
Quality
• Overall
opinion
of
the
business
• Scheduling
of
Route
PU
&
Delivery
• Delivery
service

23. Now
The
Number$

24. Benchmarks
• P&L
Categories
and
Percentages
– Direct
to
Sales
<25%
– Produc@on
Expenses
<35%
– Sales/General/Administra@on
<20%
– EBITDA
<20%
• Variable
Labor
Metrics
– Cost
per
piece
– PPOH
(great
Quality,
Good
pricing
• 8
DC
pieces
per
hour
• 12
Shirts
per
hour
– Internal
Percentages

25. Gross
Sales
Trend
2007 2008 2009 2010 2011 2012
100% 82% 82% 85% 92% 100%
Same Store Sales

26. Net
Profit
(EBIDTA)
Trend
2007 2008 2009 2010 2011 2012
15% 16% 18% 19% 20% 21%
Same Store Sales

27. Variable
Labor
Trend
2007 2008 2009 2010 2011 2012
30% 29% 26% 25% 23% 21%
Same Store Sales

28. On
Site
Cer@fica@on
Scoring
Trend
2012
2010
98%
96%
2007
89%

29. Secret
Shopper
Scoring
Trend
Retail
Loca@ons
2012
2010
93%
89%
2007
78%

30. Secret
Shopper
Scoring
Trend
Pickup
&
Delivery
2012
2011
73%
66%

31. Quality
=
Profitability
Trend
100%
90%
80%
70%
60%
Secret
Shopping
50%
Onsite
Inspec@on
Variable
Labor
40%
EBITDA
30%
20%
10%
0%
2007
2008
2009
2010
2011
2012

32. Consul@ng
Services
– Plant
Design
– Financial
analysis
– Execu@ve
coaching
– Email
marke@ng
– Social
media
services
– Direct
mail
– Graphic
design
– Management
development
– Technical
training
and
support
– Customer
service
training
– Secret
Shopping
and
analysis
of
retail
loca@ons
– Secret
Shopping
and
analysis
of
routes