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Which is worse, losing the linen or the customer? Textile rental operators say it takes both firmness and flexibility to maintain a balance. By Charlotte Caffrey How to hang onto your merchandise long enough to make a proper profit from it is among the industry's thorniest problems. In talking with LSAA members, I found that the quandary is whether to enforce loss charges rigidly or swallow the loss to keep customers from available alternatives. Most settle for a flexible attitude, deciding each case on their estimate of what else they might lose by their action — the customer, for instance. As Louis Kaplan of Sullivan County Steam Laundry Co., Woodridge, N.Y., says, "If you don't feel confident the customer won't switch to an on-premise laundry, you're afraid to act accordingly. We did seem to have linen loss under control until this past summer. Then it just seemed to take off." He said the problem in a resort area such as his is compounded by the changing habits of vacationers. "They used to stay three or four weeks; now it's just a week or two, so the turnover (and risk) is greater." PROBLEM AREAS John Shaver of Nu-Way Linen Service, Myrtle Beach, S.C., says he's in the same bind. "We have contracts but we don't make our customers live up to the agreements because of the (resort) area we're re in." Discouraging him from 100 per cent collections on loss charges are competitors on several fronts. Other rental services are one, but the "biggest competition" he says, "is OPL. We lost about 15 customers to them because our customers just didn't believe our figures." He estimates it takes a customer perhaps three years to fully realize how frequently the linen leaves with the guests (or others). "When they find out just how much the loss factor is," he said, "they return to rental. We'll buy their linen and give them credit for it." He said that a half dozen in the last year have returned to his services. "They had found out two things. The quality wasn't up to what they were used to, especially for table linen, and the loss factor did surprise them." AVOIDING TROUBLE William Erickson of Mountain Linen Service Co., Eagle, Cob., another resort area, is apt to drop a customer when he discovers substantial loss. "I got rid of two customers because of that. Most of the time we add loss charges on the monthly statements and have no problem collecting. Oh, a few refuse to pay, and if you don't want to antagonize them, you're forced to let it drop." Derwood Rudasill, who has owned D & M Linen Supply of Altoona, Pa., for a year, finds the loss of kitchen towels especially severe, but adds, "I recoup a good bit on it. We are strict on charging for loss. If the customer calls for an increase and the turnover doesn't warrant it, I charge for putting additional linen in service. Although he has contracts on uniform rental only, a phrase relating to linen loss on order blanks seems to keep customers from much complaining. According to Hermus McCaslin of Merit Linen Service, Hot Springs, Ark., "On 70 per cent of our customers charged with loss, there are no complaints. On 30 per cent we have to compromise. And that depends on the competition. Garments I can enforce with little trouble because the contract is stiffer — it's explained better." He suggested that it is probably spelled out better because of the investment involved. John Preller of Rent'Em, Inc., Watkinsville, Ga., calls it a serious problem. "You've got to charge," he says, "and you've got to collect," and he adds that his problem has been reduced to "slight" because he does collect. "We keep behind it on our bigger accounts especially. We make it a point to go and take periodical inventories every three or six months, depending on size." Dave Rawlinson of New System Laundry of Portland, Ore., has been charging for losses for three to four years. "I have to admit, though, we don't get it 100 per cent. The customers just don't believe you." SELL OUT  The most unusual response in my query of members' loss problems is that of Albert Vass of Troy Laundry & Drycleaning in Carlisle, Pa. Instead of losing garments, this entrepreneur adds to each garment's use by selling them at the end of the rental contract.
"We do about $800 a week in garment rental, so we're small potatoes," he says, adding that he doesn't expect to or want to grow a lot because at the present size his business is manageable. "And we have no loss problem. When the contract is up at the end of two years we replace the garments returned. In other words, to get 11 sets a man has to turn in 11 sets. We tell the account that on such-and-such a day we'll have 11 new sets for the man with 11 old sets. As the old sets come in, we replace them. We know from that who still has garments out. It's been successful on this scale." He said when an employee quits without turning in his uniforms, the contract includes a clause for pro-rating the amount of the loss. But a better control that the customer uses to save himself money is to withhold the person's paycheck until he turns in his uniforms. "Otherwise," says Vass, "I bill for them, and there's no problem on that." But the unusual facet of Vass's business is what he does with the uniforms taken out of service. "We have no remaining old uniforms in stock," he said. "We found that the prisons eat this stuff up. I sell them all our old sets for a nominal amount — in any condition — and they love them. "The warden takes all he can get because prisons have their own laundries but, with their budgets, can't get uniforms. No questions asked — just send sets, and when I gather more, send them." Vass orders new uniforms for each rental wearer, tailoring them at no charge if they come to his plant for fitting. One of his specialties is uniforms for truckers. "They want them tailored and the Western style shirts are a big seller —they pick them out every time." Vass said he has sued twice for loss of uniforms and won. ABUSE LESS DIFFICULT Abuse of linen and garments is an area in which LSAA members feel more confidence in their ability to exert control. McCaslin in Hot Springs said, "We notify customers once or twice about abuse, and the next time we charge. It's helped considerably." Erickson in Eagle does similarly. He believes in the impact of personality on the problem. "Our sales manager will go down to show them the abused merchandise. Normally it winds up that there's somebody new or dumb who has no idea of the cost. Usually after he goes in and talks to them it stops." But it's what the sales manager says and how he says it that Erickson feels is the key to keeping abuse for him "slight." "Carl Turner has 30 years in this business. He was once a route salesman. I'd say he uses pretty smart sell — not tough or hard-nosed — tactful. I'd say he's the iron hand in velvet glove." BEING CAREFUL One industrially oriented member solves the problem for himself by refusing to rent to abusive-type customers. "Or," he adds, "I'll give them old, used garments." No 100 per cent solution works 100 per cent of the time, say LSAA members, and success seems to depend less on what is lost than who, where, and how else the service can be supplied. As one member says, "You've got to be conscientious in counting linen or there's not a chance in the world that your figures will be believed. Then you have to have the right person to work with the customer or you become enemies, figures be damned. I don't think there's any solution," he adds, "except, like in everything else, being forthright." |