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Dry Cleaning Delivery Business Guide

By Marc T.

sampleAbout The Author:

This is your first step towards a successful business. Being in the Dry Cleaning Delivery Business is a great business if you enjoy working with people. The money is good and the freedom is great. The main focus you need is to keep it simple, work on your own until your customer base grows and you find that you are losing money because you can't get the take care of the customers fast enough.

One of the best things you can do to increase the odds of your success is to firmly plant this idea in your mind: You have so much yet to learn, and everyone you meet can probably teach you something. It's crucial that you become a learning machine. Keep abreast of new technology and new techniques in your business because they are usually designed to do a better job with less time and save you money.

Watch overhead very carefully, question every dime you spend. Don't be afraid to invest money to make your company better, but don't spend it on things that look and feel good but don't make the company stronger. Remember there are 12 months in the year, so when times are good build reserve for the not so good times. Every business has its good times and bad times.

The reason I decided to go into the dry cleaning delivery business is I was involved in the textile industry previously and when that industry left the country due to free trade I looked for a service business to work. Through networking with friends and business associates I hooked up with a dry cleaner and from there I started the delivery business. I started off full time but it is possible to start off with 3 days a week. I am a believer if you are going to do something then do it and do it right.

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Qualifications:

One of the great things about the dry cleaning delivery business is you do not need any special education or training. Hard work and persistence will take you far in this business. If you have most of the traits below you will do just fine.

  1. Have the desire to succeed.
  2. Take pride in doing the best you can do.
  3. Have a valid driver's license.
  4. Be able to do basic math.
  5. Be honest.
  6. Be punctual and dependable.
  7. Be neat and clean at all times.
  8. Communicate well with others.
  9. Be organized.
  10. Be able to stay calm when you have a problem.
  11. Self motivated

You also need to be in decent physical shape. You will be moving fairly quickly from the van to the house and back many times a day.

It also helps to have a good memory for names and faces. If you don't make sure you always look at your notes before you go up to the house so you remember the customer's name.

Choosing Your Name:

One mistake people make when choosing their name is they do not look ahead and in vision think about were their business will be say 5 years from now. The world is changing all the time you may be picking up and delivering all types of things with their dry cleaning. Some guys will pick up shoes and drop them off to be repaired.

Your name is going to be the focal point of all of your advertising, especially your business cards. When someone looks at your ad you want them to be able to remember it while they are home on their computer even if they left the ad at work. If people ask you how to spell your business name you have chosen the wrong name.

A great name is one that can be mentioned in passing or over the phone and be remembered. Before you settle on a name try it out on friends and family. Type up a little paragraph about a Dry Cleaning Delivery or just a story with your business name in the article and give it to some people to read or read it to them over the phone. Then after you are done, ask them if they can remember the business name. If 3 out of 5 remember the name, you have probably picked a winner.

Consider how your dry cleaning delivery business name could be shortened by the public. Just as a child's initials can spell out an embarrassing word, so could the abbreviation for a business. Before deciding on the right name make sure you check the internet and see if that name is available as a domain name.

When I was in business I used the name "Our Door 2 Your Door", as you can see this leaves me the option to deliver anything I wanted. Businesses that use a name other than the owner's must register the fictitious name with the county as required by the Trade Name Registration Act. This does not apply to corporations doing business under their corporate name or to those practicing any profession under a partnership name.

The items we did not sell in our yard sale started to pile up so we would just take them to the dump. Now the space in the antique mall was doing great. We were selling about $2000.00 per month and asked if we could expand. She had a spot in the back of the store that was about 10’ x 20’ so we took it. We now were only bidding on items we knew were antiques and started bidding on furniture also. We would take the furniture back and strip it down and re-finish it. This took some time to learn how but my husband was an auto body mechanic so he was good with sanding and refinishing. So even though you may purchase something for $10.00 and sell it for $200.00 it did require work. Now our new space in the antique mall was bringing in $3000.00 per month and we were having a great time working for ourselves.

Outfitting the Van:

First make sure your dry cleaning delivery van is clean inside and out.

Go to a sign store and have them make you banners to put on the outside of your van to advertise your dry cleaning delivery business.

Have a slick rail system installed down the center of the inside of the van. From front to back. If you go to a dry cleaner you can see what a slip rail system is. It is not complicated but it does take some welding. The reason you run it front to back is so every time you stop the clothes will slide towards you and you can just reach over your shoulder and grab them to make your delivery. As you start getting low on deliveries just place a spring clamp on the rail to stop the clothes from going all the way back to the rear of sliding to the back of the van.

Slip rackRemember to load your stops from first to last. Each time you get to the next stop and you hit the brakes the clothes will slide toward you making it easy to get your next order. Each time you bring clothes back to the van take a spring clamp and clamp it on the rail just behind the last delivery. This will keep your clothes from sliding to far back. Always check your order to make sure you grab all the clothes for your delivery.

Route and What to Charge:

Setting up the dry cleaning delivery route correctly can save you a lot of gas money and time. I always started my route at its farthest point that day and worked my way back to the cleaners. You will need a couple of things. Get a Rolodex, a good map or use one online. On this you are going to right the customer name and account number how to get to their stop, any special arrangements for leaving or picking up their clothes and if they have a dog, gate or garage codes or anything else of interest needed.

rolodexOn your first stop you will right on the front how to get to this stop from your starting point. Then on the next card /stop you will right how to get to there from the previous one. When you are all done you will just follow the directions on each card to end up at your next stop. Make sure you stay organized with this even know you think you do not need it. Every time you add a new client put them in the slot they belong and correct the directions. If you do this and you decide to hire someone or you are sick and your wife has to run it for you they can do it with ease. Just remember to keep close tabs on your rolodex so no one steals it.

If you like technology I would consider setting the whole thing up on a handheld. You may even want to use a gps. It all depends on you. Just make sure you use something and keep it up to date at all times. (make sure you back it up)

Take the time as you grow to keep updating your dry cleaning delivery route. Most of your expense will be gas and wear on your van. The more stops in a row or the same neighborhood the more money you will make. It takes minutes to hit 4 or 5 stops in a row.

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Licensing, Incorporating and Insurance:

I needed to a permit to solicit in the town where I was working. I had to pass a background check. This took a couple of weeks to get. Each township has different rules and regulations so check this first. Everyone in business will need an occupational license of some sort. If you incorporate you will need to do this first before getting your license. I did not incorporate the reason being I did not feel I needed the protection that incorporating provides or the costs involved. It all depends on your financial situation. There isn’t much liability on your part, delivering dry cleaning. You should always consult an accountant when starting a new business. There are certain tax advantages with each type of business entity and your accountant will tell you which is right for you. It is much easier to start it right than trying to change it later. I applied for a FEIN number with the IRS. This is your business identification number they assign to you. They will let you use your social security number if you are a sole proprietor. I just found it easier to open bank accounts and file my quarterly reports using the FEIN number.

Insurance is not a big issue with this business. I would definitely get a commercial policy for my auto insurance for this is your biggest risk. Net Quote is giving some of the best rates at this time. It only takes a few minutes to fill out their quote request form. I would take care of it now so when you get ready you will Know what it is going to cost you. As far as insuring loss or damaged articles of clothing this is a waste of time. If you use a good dry cleaner he will replace or compensate you for any item he loses. If you lose the item or damage it then just pay for it out of pocket. This rarely happens. When you get your auto insurance try and get a one million dollar policy or a balloon policy for a million.

Promotional Items:

Everyone likes to get a deal on one thing or another. Your dry cleaner will probably run promotional sales.

  1. Comforters
  2. Drapes
  3. Pillows
  4. Coats
  5. Flags
  6. Sales prices on suits, pants, etc.

Take advantage of the monthly sales that your dry cleaners are running and pass the savings along to your customers. Find out what sales he is going to be running a week ahead of time. You can even email your clients to let them know. Make sure you post specials on your website also sometimes it will help you pick up a new client. This will allow you to have your sales flyers printed and distributed to your customers a week before the sale runs. This will give them time to have it ready for pickup at the time of the sale.

Specialty Items:

There are many items that you will asked if you can handle, and it will depend on which services your cleaner offers.

  1. Shoe repair and cleaning
  2. Leather and Suede cleaning
  3. Tailoring and garment repair
  4. Rug cleaning
  5. Drapery cleaning
  6. Fur cleaning and storage
  7. Wedding gown cleaning and preserving
  8. De odorizing from fire and water damage
Advertising and Website:

Newspaper I tried but it proved too costly to be really effective. I used flyers that hung on the door knob. I would always put them on the doors surrounding the stops that I already had. I tried mailing and had only a 1% return on them and they were very expensive with the cards and the postage. Door to door proved to be the best. It took the most time but it returned the best. I found what worked best was if they answered the door and talked to you, get them to give you clothes then. I they tell you they will call or come back another day you usually won't land them as a customer. Even if you have to do a few pieces for free the first time, get them to give you something.

What to do is first get door hangers made that will fit in your shirt pocket. This will make it a lot easier to do the door to door advertising. You can get business cards and other printing online at VistaPrint they have many free samples and some of the best prices on printing available.

Now let's say for argument sake you have your route set up on Tuesday and Thursday for one area and Wednesday and Friday for a different area.

On Tuesday when you drop off clothes this week you hang a door hanger on the house to the right of all your customers. Then on Thursday you hang it on the house to the left.

Next week you change it up and hang one across the street on each day.

Friday's I use to walk neighborhoods and knock on doors. Get them to give you at least 1 or 2 shirts clean them for free and return them so they can see how it works. It sells itself.

You will also want a website. The reason is people will see you driving in their neighborhood all the time and eventually will look you up on the internet to see what it is you offer. You can tell them so much more on the internet then your signs or business cards can.

Website:

You need a website. I always had a website and I would hear all the time from customers that they went to the site to read about me and my company. I also always ran a special on the site, similar if not the same as the coupon books. If you plan on doing the website yourself I use HODI Hosting they have great support and I never have had any problems.

  1. To provide basic information that establishes credibility - just as a listing in the Yellow Pages shows you are serious about your business, having your own company domain reinforces your legitimacy as a serious business.

  2. To make business information available to customers and clients 24/7.

  3. To allow you to update your information as frequently or infrequently as you choose.

  4. To reach your local market. The web reaches the world, but customers shop it for local information as well.

  5. Many times people will remember your website when they see it on the side of your truck, but not your phone number.

  6. To reduce costs, use your site to answer your most frequently asked questions.

  7. To reduce costs, show your services over the web instead of printing brochures.

  8. To obtain feedback from customers. It is easy to see what your customers respond to on the website.

  9. To enhance your business relationships. Tell your clients about related businesses they might be interested in, and maybe get a referral fee for it!

  10. This is one of the best hosting companies on the web HODI Hosting they have a great support team and great prices. They also provide large selections of templates to choose from.

Bookkeeping:

This is how I set the whole system up. Things you will need. Sign up with QuickBooks online edition and apply to accept credit cards. Every account I setup has to have a credit card on file with me. Ok each customer I give 2 laundry bags to each with their account number on them and their route pickup and drop off dates. I never used the clients name because I do not want my cleaners to know my customers. You will also need a simple carbon copy receipt book from an office supply store. As time went on I had some printed with my business name and contact information on them to look more professional. Get a small plastic clear box to keep in your van. You want a clear one so anyone who sees it will know it only has receipts in it not money.

You pick up the bag of clothes from your customer and take them to your van.

Dump the clothes out and mark down on the receipt pad a rough description of each article and a total at the bottom. (make sure the bag is empty) I would even carry a digital camera and snap a quick picture of the items, just make sure you have the date and time stamp on the photo. Make sure you put the customer's account number on it also.

Now put one copy of the receipt in the bag with the clothes pull the draw string and through it in the van. You do this at every stop.

You get back to the cleaners you drop off the bags.

They will go through each bag and mark them into their system while checking their count and items against your ticket. They will attach your ticket and their invoice to the clothes when they are finished.

Now they clean them bag them (blank bags you do not want their business names on the bag) and put them on a rack for you to pick up.

You take the clothes and sort them on their rack in the order they will be delivered. Then as you load them into your van you pull off the cleaners invoice and check your ticket against the clothes to see if you have the correct amount and right pieces. This is a lot faster than it sounds. Place the invoice from the cleaners into the plastic box.

Drop off the clothes to the customer you should have left your copy of what you picked up on the clothes when you drop them off. You are also probably picking up some clothes at the same time you drop the clean ones off.

Now at the end of the day you go back to your home, login to your QuickBooks online take your receipt book and the invoices from the cleaners that you put in the plastic container. Match these tickets up staple them together and enter them each into QuickBooks and charge your customer's credit card. Then file the ticket away in a file cabinet.

Then once a week or month pay your cleaners.

The only thing that happens once in awhile is maybe one piece would not have been ready on time when you drop off the clothes so just circle it on the customers copy and make a note that it needed extra time to clean or whatever the problem may have been. What I do is make a copy of the ticket before I staple it and file it away so I am sure not to forget to check on it.

Choosing the Cleaner:

Research the area and find out who is one of the better and busier cleaners in your area. Deliver a top quality product and half the battle is won. You want a cleaner that will stand behind their product if there a problem arises. You are a professional and you need to deliver a top of the line package. Take 5 men's shirts one to each cleaner you are considering. Crack one button slightly on each shirt. If the cleaners find and replace the button that is a great start, if the shirt is bright white also then I would highly consider them. Most people judge a cleaner by the way they turn out a white men's shirt.

You must also take into consideration the cost. Find the best rates balanced with quality and location convenient for you. I dealt with a few outside valet services and their rates varied.

Prices including wholesale prices vary depending on the area. You should go to as many drycleaners as possible to find out the average market price. Many areas have wholesale drycleaners catering to businesses and valet services.

When you approach a prospective supplier, have your dry cleaning delivery business cards ready. Tell them you are a valet service and you are looking for new sources. If they ask who is doing you're cleaning now, tell them you're not at liberty to say. Don't tell them you are thinking of going into the business; tell them you are in it already. This way you'll get the best prices.

Don't forget you are a valet service and you can adjust the selling prices accordingly. The public will pay more for the extra service. Some of the most successful drycleaners I know are the highest priced ones.

When something happened to an article of clothing, I've always worked through it. I've always felt that if I've had to pay for something, I would make back the money in a very short amount of time. If I didn't appease the customer and lost them, I lost a lot more than the value of one piece of clothing, I would lose all future business from that customer. The dry cleaner paid for the damaged garment anyway. The money does not come from my pocket. This is one reason to have a good relationship with the dry cleaner you are using.

They need you more than you need them. If you are bringing in the work, they will do right by you and try to keep you happy. I've always worked with two cleaners anyway. I always feel safer with a backup that is online instead of scrambling around looking for one at the last minute. You never know what might happen in the day to day business. Equipment failures are all too common and could shut down, and disrupt the schedule from a day to a week.

If you have a disagreement or some other problem with the cleaner, production and your service might be interrupted. It is always comforting to know you have two sources and can easily continue without missing a beat.

To give yourself a little edge on the competition and also offer something that is a big topic in everyone's households is to offer a green solution to their dry cleaning. You can even print up the hazards of using the old dry cleaning method of using perc to clean their clothes. Here is a link where you can find a list of green dry cleaners. GREEN EARTH

Supplies Needed:

You need enough laundry bags to leave two at every customer's house. It is a good idea to have them customized with your dry cleaning delivery business name and logo printed on them. You will need name tags to attach to every bag and some extras. The information can be replaced that goes inside the tag. Get business cards, signs for the van if you can afford it get the vinyl banners that cover the whole van. You will need door hangers make sure they will fit in your shirt pocket so you do not have to look for them. You will need a computer I would use a laptop for convenience. A few spring clamps from Home Depot. You definitely want a uniform. If you have a uniform you will be clean and neat at all times. I always carried an extra shirt with me. The cleaners you go to should clean them for free. Having a uniform will help when talking to potential customers. Once they see the van with the business name and you have a uniform with your name and the business name they will not be afraid of you.

Overview:
  1. laundry bags
  2. Name tags
  3. Business cards
  4. Signs for your van
  5. Spring Clamps
  6. Clip board
  7. Uniform
  8. Door hangers
  9. Computer
  10. Possibly a GPS
  11. Hooks to hang clothes on

You can get dry cleaning delivery business cards and other printing online at VistaPrint they have many free samples and some of the best prices on printing available. They usually have a special on 250 business cards for FREE so check them out.

Setting Up the Route:

Where to Start:

If you have decided on a dry cleaner to use, you don't want to butt heads with him if he has a delivery route of his own set up.

Start with the higher income areas, and start working out from that point. Remember you will be traveling this dry cleaning delivery route two times a week so you have to make it as easy as possible. Concentrate on specific areas so you hit as many homes in the shortest time span.

Business and office clothing, dress shirts, equals more dry cleaning.

Two income households: When both spouses work you'll have double the cleaning and they will be more pressed for time to pick up their own dry cleaning. Keep working out from your central starting point always keeping in mind of the route you will be driving twice a week.

What to Charge:

First off you should be getting a least a 30% discount from the cleaners you are using. Now I always use a high end cleaner. Don't go to a dry cleaner that has a set price, example- $3.99 for any garment, they will not do a good job and your clients that will use you know what a good looking garment looks like. You can be sure the customers that you are going after use the highest paid cleaner in their area. I would find the three most expensive cleaners in the surrounding areas and choose the one that has been open the longest. Take their prices and this is what I charge. At first this is all I would charge, then once you get your customer base built up and gas keeps going up I would explain you are going to have to add a $2 or 3 dollar per week fuel charge to their bill. Everyone is already willing to accept a charge for fuel.

  1. So a high end dry cleaner say charges $2.00 per men's dress shirt in your area.

  2. Low end charges .99 per men's dress shirt.

  3. The dry cleaner you go to charges their customers $1.75 per men's dress shirt.

  4. You get charged by that cleaner $1.23 for the men's dress shirt and charge $2.00

Dealing With Complaints:

One of the problems that you will always have to face is, dealing with complaints. Some will be justified and some people just love to complain about everything. There are certain customers that complain so much that I determined it just wasn't worth the trouble and time. Depending on how much cleaning I picked up from the customer determined if I stopped picking up from them.

Following is a list of the more common complaints you will have to deal with. There are always new ones popping up that you will have to deal with.

One of the benefits of the dry cleaning delivery business is that you are not paying for the mistakes that the dry cleaner makes. This is one reason to keep a good relationship going with the cleaners you are using. Keeping good records of your pickups and deliveries will also save you aggravation when piece counts don't jive.

  1. Missing garments
  2. Ruined garments
  3. Stains that did not come out
  4. Poor pressing
  5. Shrinkage
  6. Missing buttons/broken buttons
  7. Broken zippers Color change
Missing Garments:

If you are using a dry cleaner that has been around awhile, the only time you will have this complaint is when the customer can't find it in her closet. Last year I had five complaints dealing with missing garments and four of them turned up in the customer's house. The one that couldn't be found, we came to a settlement. I gave her a credit on future cleaning. I never gave cash back, always credit on future cleaning. When you are a middleman between the customer and the drycleaner you must keep count on all the pieces going to the dry cleaner and picked up from the dry cleaner. When you pick up from the dry cleaner count the pieces on each order and confirm that it is the same number you dropped off. If there is a discrepancy go on record right away, before you deliver the dry cleaning to the customer. Let the cleaner see that the piece or pieces are missing and have him sign the receipt as such. This way you'll be covered in case of a claim. You are the person that the customer will be dealing with and it is your responsibility. You can't pass it off on the dry cleaner the customer will look to you for satisfaction. It is your problem in dealing with the cleaner for a refund or settlement. Remember, whatever happens if you polite and professional in dealing with a problem such as this, you will keep the customers confidence and keep them as a customer. That is the only way to make your money back from the customer. Very rarely will you have a customer that complains every week about lost garments, ruined garments, or bad cleaning. They are just looking to get deductions from the bill. Customers such as this I won't work for. Just tell them that you're sorry but you can't continue their service.

Ruined Garments:

There will be times when a cleaner will ruin a garment. If it is a reputable cleaner, he will tell you about it and not try to sneak it by you. A good cleaner will not put a garment into work if there is a potential problem. Either he will call the customer and explain the problem and ask the customer if they will waive the cleaner's responsibility and give the OK to clean the garment. Another action would be to return the garment to the customer with a note attached asking to sign off on responsibility and return the garment with the note signed. A completely ruined garment is rare but now and then it will happen. Deal with it the same way you would deal with a lost garment. Never money always give a credit towards future dry cleaning. Of course you develop relationships with your customers and the longer you know them the less problems that will come up. If you have a good customer that has been with you a long time and gives you a fair amount of work, if you choose, you can give them a refund on a claim knowing they will have more business for you in a couple of days.

Stubborn Stains:

All stains will not come out. Good cleaners will attach a note saying they saw the stain and pre-treated it and it won't come out. Most of the time they won't get to aggressive with a stain as they could easily ruin the garment by making the area around the stain lighter by moving the color. As before they will attach a note and ask the customer to sign off on it if they want to try to remove the stain again. Sometimes they will not even clean the garment at all but just return it not cleaned with a note. This will not be a problem for you, but you should be aware of the problem so you can inform the customers. It shows them that you are aware of what is going on and instills more confidence in the customer.

Poor Pressing:

Some customers are pickier than others and sometimes there will be problems with the pressing. Double pleats on pant legs, collars folded and pressed wrong, sleeves, and pleats on shirts pressed improperly. There isn't much you can do about this problem except return and repress the garments. Make certain you bring it to the cleaner's attention so the pressing problems aren't repeated especially with the same customer because they will be looking for it.

Shrinkage:

This shouldn't be a big problem but it does come up from time to time for a variety of reasons, not all the fault of the cleaners. Good cleaners will recognize problem clothes and take extra care when processing them. Blocking them and stretching them when needed. Deal with this the same as you would ruin clothes. A refund on future cleaning. Most of the time would keep the garment if I had to pay for it. After accumulating them, once a year or every eighteen months I would give them to the church or the Salvation Army. This will depend on you and the relationship you have with your customer.

Missing and Broken Buttons:

Some buttons can be very expensive. Some ornate or unusual buttons should be protected from the dry cleaning fluid. Certain plastics will melt or dissolve in the dry cleaning fluid. The garments should have warnings on the labels. The cleaners read these labels and cover the buttons or in some cases remove them before cleaning. On higher end clothing if the buttons are susceptible to the cleaning fluid, they will be attached in a way that allows them to be removed and reattached during the cleaning process. Military uniforms are the same way. After the cleaning cycle any buttons that may have fallen off are usually in the basket or the button trap and the cleaner will sew them back on.

Broken Zippers:

Zippers should be checked before cleaning by the cleaner. If there is a problem with one the customer should be notified before cleaning. If not, the customer can claim that the cleaner caused the problem and demand that the zipper be replaced.

Color Change or Shade Change

There are rare times when the shade may change on a garment. Usually the customer won't pick this up unless it is part of a suit and only half of it was cleaned. Some colors used overseas are not fast at all. Usually in the tan shades or the turquoise shades. They are dyed with inferior dyes and wash down. Problems also occur if a cleaner mixes darks and lights in the same load or does not clean the perc properly. Color builds up in the cleaning fluid and will redeposit on the lighter shades being cleaned.

In the end if you keep good records and stay on top of everything including your cleaner, your cleaner will have to pay for all of these mistakes not you. This is only one of the reasons the delivery business is a much easier business to own and operate. I know I had both.

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