Oregon Dry Cleaners Assoication
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From the Editor's Laptop... The last thing any of us would want to hear is someone yelling "Fire!" in a crowded dry cleaning plant. To help keep that from happening, there are regulations and codes we all have to abide by. And to ensure we are following the rules, inspections are part of our lives. In my jurisdiction, we are inspected by the fire marshal every two years. We receive a letter notifying us that we will be inspected within the next thirty days and included is a list of common violations and things to do to correct them. This list can save you a lot of grief and a great deal of money. Not only are you billed for the inspection but you will be charged for each violation and the re-inspection that will take place thirty days later.
Sometimes these inspections are not so pleasant. Charged with public safety, the Fire Marshal is intent on finding "anything". In the past, I have challenged some of the findings and successfully had the infraction removed. Other times, well, I fixed the problem, paid my fines and moved on. This year, the inspection occurred at a very difficult time. Not only was my shop extremely busy that morning but I was dealing with the stress and worry over a family member's difficult road through radiation and chemo and my dog was on his second of three days in ICU in an attempt to save his life. When I looked up from my spotting board and saw the Fire Marshal standing there, something in my brain cried "Uncle!" and I just didn't have it in me to have a difficult inspection. I smiled, reached out to shake his hand and introduced myself as the owner of the business. I think he was a little shocked that I actually welcomed him because these inspections are often not very pleasant with both parties being somewhat defensive.
We went over the paperwork and updated the information. I then invited him to check out the facility and if he had any questions I would be right here working. I did not follow him around. It was about ten minutes later when he came to me and said, "It all looks good, thank you". The Fire Marshal has a difficult job and spends his day citing violators. By welcoming him, answering questions to help him get his job done more efficiently and opening my plant for him to do his job without me being his shadow, it made for a good experience for both of us. This was the easiest and most pleasant inspection ever and the first time, I'm happy to report, the inspector from the Fire Marshal's office didn't find any violatiions. So April ends and May begins. This month Scott has some really good thoughts about being efficient in your plant. With rising costs and a slowing economy, we all need to pay strict attention to what we are doing. Allied trade member Rosanne Wilson from 1st Independent Leasing gives us part two of her report on leasing. This month, the Economic Stimulus Act of 2008 and how you can take advantage of it is the topic. Are you a perc cleaner? Do you service, sell or install perc machines? Follow the link to the fact sheet and print out the pdf file provided to us by the Department of Environmental Quality. This valuable information will ensure you have the knowledge you need to avoid errors in compliance. Lastly, welcome back Kathey Butters as she shares the first part of her trip to Mexico for the NCA Brainstorming with the Best conference. The word "envy" comes to mind here! Enjoy.
Contact Brian
Olson
at
bolson@oregondrycleaners.org.
Brian Olson CED, Director, District 1 - Newsletter Editor
Prior to writing this month's article I was talking to Brian and I was telling him how hard it is sometimes to come up with topics for this newsletter every month. It can sometimes be a dilemma to come up with new subjects to talk about. After thinking about it, I came to the conclusion that this month I would talk about why we chose to be in this business. Our reasons could all be different, but what matters to all of us is the bottom line or net profit. Some of us went into business to be our own bosses and hopefully to have the flexibility business ownership can give us, others because they chose this profession as their career and want to grow a business and provide a living wage to their employees. They also want to give back to the communities they live in. Others involved in this industry might just be investors whose only concern is a good rate of return on their investment. Whatever the reasons, none of it can happen unless your net profit provides you with the lifestyle you desire, which could be different for every one of us. In these times of economic turmoil we are all facing rising costs of raw materials, everything from hangers, poly, soap and starch to the boiler compound or raises for our employees. And we each face the personal decision to raise prices or live on less ourselves. For me personally, the answer is simple, I will raise prices but I will also start taking additional steps to make sure my operation is run in a more efficient manner. I will educate my customers to recycle more hangers and if they do this they can help keep the costs down. They will also help keep unwanted hangers out of landfills. I have begun changing the lights in my plants to new energy saving T-8s that actually give better lighting than a standard florescent and save me money over the long term. I am also planning my production more efficiently so I can get the boiler off an hour earlier every day. If I do that, I will save about $170.00 a month on gas alone. By taking these steps I will be able to keep the increases in my prices lower than if I did nothing. Maybe you might look at adding services that you do not currently offer that might enhance your revenue stream. Maybe you should add pickup and delivery; maybe you should start renting formal wear as an agent for a local tuxedo store and pick up the cleaning business as well. Maybe you should offer shoe repair by working with a local small business. After all, they are in the same boat you are and they need the revenue stream as well. Maybe you should network with the local small business in your general area and come up with a program to promote each other's businesses. I could go on but the point is we all have to ask ourselves just one question. "Will we, as individual owners, take the steps that are needed to reduce costs and raise prices or do we work for less this year?" You already know my answer.
Contact Scott
McClure
at
smcclure@oregondrycleaners.org.
On February 13, 2008, President Bush signed the Economic Stimulus Act of 2008. This Act provides businesses a first-year "Bonus" tax deduction for depreciation equal to 50% of the cost of the equipment ordered and placed in service in 2008. This provision will create a significant cash flow benefit for all businesses. This Act also increases "Section 179" or "Rule 179" deductions for capital expenditures, allowing companies with capital expenditures of less than $800,000 to expense up to $250,000 annually for qualifying purchases. The qualifying equipment is:
New dry cleaning equipment of all types, as well as software, is eligible under this Act. This is a great time to think about upgrading equipment that is old, tired, or not as efficient. Perhaps you've thought about upgrading your software to enhance your business's ability to better track and serve your customers. Now is a great time! This Act covers purchases even if you Lease them or finance them! You don't have to pay cash for them in order to qualify! Under Section 179 or "Rule 179" of the IRS code, you can spend up to $250,000 annually for tangible business equipment, including such things as computers, equipment, or software and write off the entire amount during a single tax year. Typically these purchases would have to be depreciated over a five to seven year period in the past, but not now under this new Stimulus package. This Act has received kudos from small business advocacy groups all over the United States, and especially from business owners themselves. The National Federation of Independent Business (NFIB) helped lobby for the legislation. Several small business owners were also in attendance. The following quote was from James Hoon, a small business owner, who stated "The accelerated depreciation condition in this Act will help my business increase its productivity levels by enabling me to buy new equipment". He is absolutely 100% correct. Small business owners are already overburdened by the complex tax code and need relief in these tough economic times. Small business owners should be spending their time growing their businesses and hiring employees, not wasting their time worrying about taxes or whether it makes sense to upgrade equipment now. The Economic Stimulus Act of 2008 will take the struggle out of your decision.
The Clean Air Act requires the U.S. Environmental Protection Agency (EPA) to set standards to reduce hazardous air pollutant (HAP) emissions from various businesses. These standards are called National Emission Standards for Hazardous Air Pollutants or NESHAP's. Perchloroethylene (also known as "perc" or "PCE",) is one of those HAP's, and is currently one of the most widely used dry cleaning solvents in Oregon. Perc is known to negatively affect, among other things, the nervous and respiratory systems. In 1993, EPA issued a NESHAP for dry cleaners that use perc. On July 27, 2006, EPA revised that NESHAP by adding new requirements. Although many dry cleaners in Oregon have already installed equipment to reduce perc emissions, tighter controls and enhanced work practices are being required to further reduce perc emissions to the environment. This fact sheet summarizes these new requirements.
Picture this; it's the middle of January, it has been cold, wet, and grey, not hard to do in Oregon. Now picture this; it's the middle of January, it is sunny, warm, and bright. You are just pulling up a sweeping cobble stone driveway, approaching a beautiful hotel with an enormous open air lobby. As the cab door opens you are greeted by name; "Welcome to the Grand Velas, Mr. & Mrs. Butters - please follow me, your luggage will be taken to your room". You are then led to a room where the tables and chairs are all draped in elegant white linens and you are handed the most refreshing hibiscus punch garnished with a touch of fresh mint. Ann Hargrove, from the National Cleaners Association (NCA), is greeting you and we are catching up since we last saw each other. Ann gives you your packet specially prepared for your brainstorming experience and the hotel staff hands you your keys and other information so you might think it is time to head to your room - but don't leave yet! You have had a long flight and everyone wants you to have a chance to relax. Please step over here where the masseuses from the Grand Velas world renowned spa would like to give you a chair massage! With a little aromatherapy and very accomplished masseuses you feel revived and relaxed. This was the best start to any conference I have ever attended!
Our room matched the above experience; it was large & luxurious with a wonderful Jacuzzi tub and a large lounging bed on the lanai. Shortly after we settled in the most generous basket of fresh fruit was delivered, compliments of NCA. We spent that evening catching up with old friends and making new ones at the NCA Welcome Reception held poolside. Just recalling it all for this article brings me a wonderful feeling. This was my third NCA Brainstorming conference and it is hard to imagine that each year NCA manages to top the last one! Not only does NCA provide world class locations to hold brainstorming events but they provide world class speakers from which to learn. Next month I will share how we are implementing, in our cleaners, what we learned this year.
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