Adding on profit

Drycleaners can tap into a major profit area by paying more attention to selling add-on services and products.

As an area manager at Sketchley a good proportion of my time was devoted to finding ways to increase customer spend. Customers are likely to visit the shop for three reasons, to drop-off or collect an item, or because they just happen to be passing. Once a customer came through the door, my staff used their sales skills to win as much business as the circumstances would allow.

Management

The route to gaining extra sales starts with the shop management. A good manager, properly motivated, can increase sales in a poorly performing shop by 35% in the first year and ensure continued growth thereafter. This does not only apply to shops in prime sites.

I can recall taking over an area of about 30 neglected shops. In the first nine months I changed 18 of the managers, introduced a housekeeping and organisational campaign and told them we were going to be one of the best areas in the company. Within three years we were.

A key factor in choosing a drycleaner is convenience. Customers do not want to go out of their way just to get something cleaned. If you are handy, they will give you a try. Make visiting your shop a pleasant experience and they will come back, but if they wonder why they ever came through shop door in the first place, they are unlikely to return.

Your shop

Let’s start by assuming you’ve got the basics in place. You have a manager who is interested in the business, smiles readily, says good morning and thank you, treats customer items with respect and has an incentive to improve sales. Incentives need not necessarily be financial, although this is clearly an option. The motive could be self-pride, desire for promotion or competition with other managers in the chain.

Achieving add-on sales, presupposes that you have something over and above your basic product to sell. The options range from specialist services, usually obtained from a third party, such as suede and leather cleaning, invisible mending and re-waxing, to those which you can introduce yourself with minimal outlay. These might include shower-proofing, tailoring repairs or permanent creasing.

However, a two-tier service offers one of the best opportunities for extra sales. You may feel strongly that you should offer only one service level and give all customers the best quality that you can achieve. While I respect this viewpoint, experience tells me that customers appreciate and, indeed, expect a choice. You could convert at least 20% of your base business onto your premium-priced service, if you promote it in the right way.

Upgrading

Businesses such as hotels, airlines or car washes, all offer the chance to upgrade without making customers feel they are getting poor value if they choose not to do so. The trick is in positioning the new offering.

Obviously you have to provide competent cleaning and finishing for your regular service but the introduction of extras, such as the use of tissue paper, shaped hangers, enhanced packaging, a stitch-in-time service, stain-resist treatments and personal inspection by the manager, give enough promotional leeway to more than justify a 25% premium.

Once you have introduced a range of services and trained counter staff on the benefits, service times, pricing and the expected quality standards, you need to provide them with appropriate selling skills. This will help them to deal with customers confidently, identify their needs and turn these into additional sales. Well presented staff, with clean clothes (preferably a uniform) and shoes are important.

You are, after all, selling cleanliness.

Encourage staff to acknowledge customers when they come into the shop. A smile will suffice if the assistant is already serving. “Good morning, how can I help you?” is as good a greeting as any and the answer may give clues about weddings, business trips or other events in the customer’s life that present an opportunity for trading up.

To achieve that 20% conversion, staff should offer the premium service to most customers and they should never prejudge the value placed on a garment by its owner. An old suit may be the only one the customer possesses and could be in need of expert restoration for a special occasion.

Setting targets

A simple and effective technique for increasing sales of additional services is to set targets to each member of staff, pro-rata to their hours. For example, you might ask a full timer to make 15 premium-service sales, two repairs and two permanent creases during the shift. Break these down into hourly targets. A goal of two premium sales an hour and one repair morning and afternoon will seem much less daunting. A weekly newsletter showing performance league tables for different shops will encourage staff to achieve targets, especially when good results are rewarded with praise, and even a prize.

Tailoring repairs and invisible repairs can typically account for 7% of a shop’s sales. This figure can easily rise to 12% if garments are inspected for tears, holes in the pockets, broken zips or split seams. A local tailor may be hard to find, but there are trade companies that will provide such a service for drycleaners if they have enough volume.

Discreet

Most customers visit the drycleaner because they need a specific item cleaned. However, it is surprising how many will respond to a discreet prompt to bring in a major order. Encourage staff to chat casually to customers about the type of items that other people are bringing in. Comments such as “Now the weather’s turned, we’re getting lots of suedes and leathers in for cleaning” or “during this hot weather everyone is having their duvet washed” will make them wonder if they should be doing the same.

Clothes-related accessories provide another opportunity for extra sales. The larger chains often sell items such as hangers, lint removers, garment covers and travel washes, although smaller independents may find that the profit made does not justify the effort in sourcing and funding a worthwhile range. If you do go down this route, make sure you maintain an interesting, dust-free display of pre-priced products and that it is readily accessible.

Displays of special garments awaiting collection can also be used effectively and can help enhance a shop’s image. For instance, positioning evening and wedding dresses where they are shown off to their best effect makes a powerful statement about the cleaner’s skill in handling special items. The clear implication is that if you make a first class job of complicated garments, you will do everything well.