DIA Corporate Partners

Pressing News

Issue 25 l Sep 2012

DIA Corporate Partners

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JP048_DIA NL_issue25_0912.indd 2 13/09/12 5:27 PM SUN1506B_A4_Merchant_Ad_FA.indd 1 29/08/11 4:46 PM How wonderful it is that nobody need wait a single moment before starting to improve the world With Suncorp Bank Editorial Ann Frank

EFTPOS Solutions Milestones are something that we the National DIA. Another feature of the evening will be the presentation all seek to obtain in our journey of the DIA Business Excellence Awards. the benefits through life. (whoops, is there ever a Of course there will be a trade show throughout the weekend. This will more overused word than ‘journey’ be in the table top format and early indications show there will be strong at the moment) Whether they be presence of suppliers of all goods and services across the industry. If keep on coming. big or small, they all matter. A small you are a supplier and not aware of this trade show, please give Ruth or milestone for this publication is this myself a call. edition No 25. We are pleased how the magazine has developed and we Despite these tough times, membership renewal this year has been hope you are as well. almost 100% which really is fantastic and I would like to thank everyone for their continued support of the DIA. Together, we will make a Has there ever been a topic more difference to this industry. divisive than Climate Change? And has there ever been a tax more despised than the carbon tax? Philip Johns CEO Climate change started out as global warming but in a subtle shift of naming rights, Climate Change is now the preferred heading. There are eminent scientists that stand by the fact that the world Letters to the Editor is warming and there are eminent scientists that argue this is not the case. The debate in parliament has the believers and non Dear DIA, believers and every single one of us have an opinion one way or I was very disappointed to read Tony Abbott piece in the other. your latest newsletter. I did not expect such blatant Notwithstanding the divisions, the result of the climate change politicking in an industry journal. Unless you intend debate is the carbon tax recently introduced into Australia. There to give the Prime Minister the same opportunity and has not been a topic before now that has been so universally allow her and the government to put forward the facts reviled by drycleaners than the carbon tax. As we are now into of the issue, instead of the oppositions constant September, everyone has received their first energy bill since the fear campaign I request that you keep your political opinions to yourself. I look forward to July 1st when tax has taken effect and the pain is palpable. the sky doesn't fall in and we see through this sham The DIA is talking to legislators, energy supply companies, third of an opposition who has taken their title a little party providers and anyone else worth talking to about this topic too literally to do anyone any good. to find some relief for members. Yours Sincerely, Not to make light of the subject, but I am pleased to report that Matthew (Vic) full name withheld at least the carbon tax issue has elicited the first letter to the editor, so we must finally be getting through. It was from a non member and can be found inside. Survey 1300 738 232 On that note of feedback, many of you responded to a recent www.techadvantage.com.au [email protected] on line survey about the performance of the DIA. There was an approximately 38% response rate which is fantastic and I personally would like to thank everyone for your time in Still the CHEAPEST Wet Strength / Thermal answering the questionnaire. It was surprising how positive Paper Rolls supplier for Dry Cleaners the feedback was about various aspects of DIA operation with many answers receiving over 80% agree or strongly agree to the (76x76) question. Wet Strength Rolls Available in: The reason for surveys is to find out exactly what the surveyed White, Green, Orange, Yellow, Blue, Pink, Purple, Grey, Red & Gold audience thought about a product or service. It is nice to get the positive feedback but it is the negative feedback that is most Thermal Rolls (80x80) important and highlights areas that need improvement. Not sure Available in: where the saying comes from but the punch line is ‘You cannot White, Green, Orange, Yellow, Blue & Pink please all the people all the time’ The results of the survey make for interesting reading and a report can be found inside. Thermal Register Rolls Thermal EFTPOS Rolls Greenclean 2012 Available in: 44x76 & 57x57 Available in: 57x35, 57x40 & 57x45 I was fortunate enough to attend the Green Clean conference in IF IT IS NOT LISTED, JUST ASK US Port Douglas last month. Conferencing is an important part of AND WE WILL GET IT FOR YOU any business person’s life. There is only so much one can learn Talk to us today. from a book and it is when you talk with industry colleagues that Ink & Toner Cartridges Tag Printer Ribbons you really learn. The networking at these events is great because All Major Brands Available To suit all major brands Call 13 11 75 there are people from across Australia and New Zealand (don’t mention the rugby) and at all Greenearth conferences there is a smattering of international people as well. Scanners suncorpbank.com.au Cash Drawers DIA Conference Touch Screens Visit your local branch The DIA is getting back into the conference mode again and you would have already heard about the National conference booked We ship from your closest city for Feb 23/24 in Melbourne next year. Ruth and the conference BRISBANE • SYDNEY • MELBOURNE • ADELAIDE • PERTH committee have been working hard to produce a memorable * Excludes bulk quantities and stock liquidations. Prices subject to change. Conditions Apply event and the first release of the program of business sessions is included on page 11. • Retail point of sale • Security Cameras • E-commerce Sites Payment facilities are issued by Suncorp-Metway LTD ABN 66 010 831 722. To approved applicants. Terms, conditions, fees and charges apply – details are • Servers & Network • Web hosting & Domains • E-marketing & SMS available on request. *Same day settlement where the proceeds of card sales are credited to a Suncorp Bank business account for transactions processed before The conference dinner will be a highlight of the weekend at which order online: www.techadvantage.com.au 6.30pm, seven days a week (AEST). SUN1506B_DIA all past state and national life members will be recognized under 3

JP048_DIA NL_issue25_0912.indd 3 13/09/12 5:27 PM SUN1506B_A4_Merchant_Ad_FA.indd 1 29/08/11 4:46 PM Contents

3 Editorial / Letters to the Editor Pressing News 4 Contents / Coming Events Key Contacts 5 Chairman’s Report Editor: Philip Johns 6 Customer Service – by Deborah Templar Events & Marketing: Ruth Speedy 7 New Members Accounts: Lynn Potesil 8/9 Green Clean Conference Report Administration: Brit Bedrich 10/11 DIA National Conference Promotion Advertising and editorial enquiries: 02 4993 3377 12 Small Business Workshop – How much is my business worth? Drycleaning Institute of Australia Ltd 14 Book Club – 101 good ideas 184A Vincent Street 15 Associates Forum – Australian Super & Greenearth Patents Cessnock NSW 2325 16 OH&S Incident Report Phone: 02 4993 3377 17 DIA Membership Survey Results Email: [email protected] 18 Complaints Desk Web: www.drycleanersweb.com.au 19 Coming Event Ads

Business Insurance Specialists Ring us for a free no obligation quotation, Sunshine State have been successful in helping many DIA members obtain Coming competitive Insurance with tailor made coverage’s since 2012 Events been appointed by the DIA as the preferred broker Australia wide. October 7 Solvents & Spotting Workshop – Sydney, NSW • Business Insurance • Directors & Officers Liability November 14 • Corporate Travel Insurance • Commercial & Private Motor DIA AGM – Melbourne, Vic • Income Protection • Boat Insurance • Personal Insurance • Transit Insurance November 14 DIA/RMIT Awards Dinner – Melbourne, VIC Talk to Dave Stott about any of your Insurance policies; for expert advice November 17 and a free no obligation health check of all your policies on ‘What is my business worth?’ Workshop & Xmas 1800 225 908. Dinner – Launceston, TAS These are just some of the Insurances we can quote you on: …Simply Better Service 2013 Feb 23/24 DIA Conference, Awards Dinner & Trade Show – Melbourne, VIC www.ssib.com.au May 25/26 DIA Seminar – Hobart, TAS AFS Licence: 244578 June 20/22 * We have offices location in Queensland and Victoria and are members of NIBA Cleanshow 2013 – New Orleans USA October 20/22 DIA Seminar – Brisbane, Qld

JP048_DIA NL_issue25_0912.indd 4 13/09/12 5:27 PM Chairman’s Report

Welcome to the September undertaken on behalf of DIA, particularly the positive edition of Pressing News comments about the performance of the staff and the and to Spring, a busy time new organisation. for Dry Cleaners. In line with member’s comments, work is continuing The National Ofﬁce is on the development of a new website, incorporating continuing to bed down the an on-line booking system. transition from a State based organisation into the single Given the cost of this exercise, time is being taken to entity. evaluate the submissions in some detail.

June 30, saw the retirement At the same time, the National Conference sub- of Philip Littlejohn from the committee, has been steadily working away at Board, after 18 years of outstanding service to the finalising the program for the event which as reported National body. Philip has steered the Board on a very previously will be held on February 23 and 24, 2013 in sound financial path and we thank him sincerely for his Victoria at the Novotel Glen Waverley. untiring contribution. The focus of the program will be on practical tools for So as not to be lost to DIA National, Philip has been you in your business. appointed to the position of Financial Controlling The next meeting of the National Board will be in Officer, overseeing the day to day financial operations Melbourne on Thursday November 15, the day after of the association and the end of year reporting the Annual General Meeting which is Wednesday Nov requirements. 14, also to be held in Melbourne. A National sub-committee is also currently reviewing Cheers for now, the contracts and performance of all other staff. Dan Smith It was pleasing to read the results of the survey recently National Chairman

JP048_DIA NL_issue25_0912.indd 5 13/09/12 5:27 PM Customer Service

How to turn on your customers focusing on service; a lack of time and resources to instigate a customer service (Debra Templar will be presenting at the improvement National Conference and offers a short project” says insight into customers wants and needs as Every business, Templar “But if they relate to business.) whether in a the success of the Every business, whether in a business- business depends to-consumer or business-to-business business-to-consumer on the customer marketplace relies upon the satisfaction – or or business-to-business then how can their needs, desires and otherwise – of its customers. wants be shelved until later?”. As a drycleaner, you may have the greatest marketplace relies Debra has heard many rationales service or product around, have a brilliant upon the satisfaction from business managers as to why marketing strategist who has helped you improvements to customer service identify your target market and implement a – or otherwise – have had to be put on hold, or simply marketing campaign that has attracted them can’t be achieved in the near future, to you, but if you fail to deliver a satisfying of its customers. and she regularly challenges each and customer experience, it will all be for naught! every one of them. In fact, the business will go backwards as word “Some of the concerns sound valid – and I have heard them of mouth spreads. And if you doubt this, just think of the all. Lack of budget. Lack of good people. But often they recent bad customer service experiences that you have had are a convenient excuse because the manager recognises and consider how many people you have told. that introducing quality customer service means changing If we are all customers and therefore can recognise bad a culture” explains Templar. “Most managers find that it is customer service when we see it – and if good customer daunting ~ it is hard-work and it takes total commitment to service has been recognised as a major key for business change the culture of a business, regardless of its size. And success - why is it that customers, clients, patients, visitors and the biggest barrier to changing a culture is that it takes the guests continue to complain about increasingly indifferent manager’s eye off what they believe is the core function of the service? Why has progress been so slow? Why has there business. Which gets back to why the culture of the business been so little improvement in the standard of customer isn’t centred around the customer in the first place?” service in Australia? “Drycleaners have such an opportunity to shine with their Debra Templar is an expert in best practice retailing. She customer service – whether customers are coming into their teaches retail business operators and staff how to nail the stores or utilising their collect and deliver service. And, in this loyalty and repeat business of customers through the delivery day and age, a website that highlights services, cleaning tips of outstanding customer service. One of Australia’s leading and specialist services is a must. Why? Because it keeps the retailing experts, she hates bad customer service and stupid business in front of its customers, keeps it front-of-mind and business practices. So, she’s on a mission to change them. saves it from ‘small business invisibility’.” Debra believes that every drycleaner should develop an easy website that offers She doesn’t just want to improve how we do business for the promotions, information and methods whereby customers customer’s sake but also so that we, as business owners, sell RED BOX can get special reductions. “They should also be using social THE more products/services, make a heap more money, and love media such as facebook to further pitch their dry cleaning our businesses back to life. business as an integral part of the local communiity,” she says. Debra has identified three major impediments for businesses As well as writing many books on the topic, and providing in delivering quality service to their customers: consulting and training, Debra is held in high regard for her • The business lacks the bedrock commitment to the unusual Keynote Addresses - Her technique is to challenge, tease, cajole – in fact force – the audience to look at how we FREE customer – as distinct from simply playing lip-service to the issue; do business, by asking us to jump the counter and view our systems, our processes, our policies and our beliefs from our • The business doesn’t consider service as an intrinsic customers’ point of view. She then applies her considerable 6 MONTHS RENTAL* aspect of their business – but rather see themselves as skills and experience to show us ways to be better at what we providers of a particular product or service, which is a do (often better than we thought we could be). product-based rather than customer-based and Debra Templar does not just get to the heart of the matter - • The business operator does not understand that good she presents from the heart. She gives her audience ‘multiple ASK US HOW? customer service isn’t just a role of a particularly friendly light bulb moments’. She offers her audience real life staff member at the front line - it needs a leader to examples from every sort of business and both sides of the The Number One Self Serve Dry establish and drive a service culture across everything counter and what gives her the greatest high is when people that the business – and it’s staff - does. in the audience say things like: Oh – now I get it! Cleaning Box In Australia! She believes that the first step in understanding how to turn your customers on is to understand their turn-offs. Debra Templar “I understand the frustrations that the business operator feels whilst trying to eradicate the turn-offs and ensure www.thetemplargroup.com.au quality customer service – frustrations such as the need to www.facebook.com/TheTemplarGroup THE DRY CLEANING ATM MACHINE constantly firefight other issues which can divert you from www.twitter.com/debratemplar [email protected] Contact : Barry Deacon 0414 628 703 6

JP048_DIA NL_issue25_0912.indd 6 13/09/12 5:27 PM New Members

We are delighted to welcome the following businesses who have recently joined the DIA The super fund that Lawrence Dry Cleaners Waterloo NSW: Anwar Mangal works just for you. Central Coast Dry Cleaners Toukley NSW: Tegan Belrose Dry Cleaners Belrose NSW Lawrence Dry Cleaners Liverpool NSW: Aziz Mangal Dry Green Dry Cleaners Bondi Junction, NSW: Peter & Liz Christie AustralianSuper can Mitchelton Dry Cleaners help me to track down Mitchelton Qld: Jacqui Morgan my lost super. Milton Executive Dry Cleaners Mark Murphy, AustralianSuper member Milton Qld: Peter & Wendy Tame Bells Dry Cleaners Manuka ACT: Khalid Haﬁz To join, call 1300 300 273 or go to Bells Dry Cleaners Kingston ACT: Khalid Haﬁz www.australiansuper.com/lostsuper It’s Australian. And it’s super. Southern Deluxe Dry Cleaners Prepared in February 2012 by AustralianSuper Pty Ltd ABN 94 006 457 987 AFSL 233788 the Trustee of AustralianSuper ABN 65 714 394 898. McLaren Vale SA: Alicia Fechner Consider whether AustralianSuper is appropriate for you. Read our Product Disclosure Statement, available at www.australiansuper.com/ FormsPublications or by calling 1300 300 273, before making a decision about AustralianSuper. Statements made by AustralianSuper members Mark Mayne in this advertisement have been reproduced with the members’ consent, which has not been withdrawn at the date of this publication. Investment returns are not guaranteed as all investments carry some risk. Past performance gives no indication of future returns. NSW: John Anderson

THE RED BOX FREE 6 MONTHS RENTAL* ASK US HOW? The Number One Self Serve Dry Cleaning Box In Australia!

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JP048_DIA NL_issue25_0912.indd 7 13/09/12 5:27 PM GreenClean 2012

There has to be something special There are three main challenges in all businesses and these are; about a conference in the fair north of • Team challenges – your workforce and employee Australia during winter. If the location management is Port Douglas better still! As the • Money challenges – the cash flow of the business and attached photos will show, the venue finances • Time challenges – how to get the required work done for the GreenEarth conference was the in the optimum time Sea Temple and what a great hotel. To address team challenges and create a successful team The balmy 28C temperature for the you must have; • strong leadership – that’s from you the boss, whole weekend was just a bonus. • common goals – so they know where they are heading • rules to play by – know their parameters Now the mantra at all conferences is that you should • action plans – know how they are to get there be able to take back to work at least one idea that will • taking risks – being supportive of making decisions improve your business. The one thing I learnt was to • participation – must be 100% be everyone involved check the battery life of my camera before leaving home. Yes I am afraid to say that on the first night I hauled out the camera to take a couple of candid shots and nothing Profit & Margins happened. Seeing the flashing battery in the viewer meant There was plenty of discussion about how to achieve a I had to resort to the iPhone camera to get some images healthy profit by knowing what are your margins. The five for this story. My apologies therefore for the quality of the key business drivers of any business are in the following shots. order The Greenearth conference always features international 1. Average spend per customer speakers and Greenearth 2012 was no exception. Sure the 2. Conversion rate of sales speakers will invariably speak about Greenearth but they 3. The number of transactions per customer do bring that intangible benefit of bringing a different 4. The margins on your goods and services perspective to their talk on life in the drycleaning industry 5. The number of leads generated by your marketing overseas. Just imagine if you could increase the average spend of each customer by 10%, increase the number of customers Drive your Business by 10% and increase the number of transactions of each The keynote speaker however, was Dale Coutts who hails customer by 10% and increase your margin by 10%, you from Ballarat and his topic was ‘Drive your business faster’. would see an increase in revenue of 46%. You may not be This presentation took us on the journey (there is that word able to achieve each increase together but small targets again) of why some businesses are successful and others are easy to hit. are not. It all comes down to a few key areas. To achieve results in a business you really need to take ownership, be accountable and act responsibly. Sounds simple. Perc Update Bill Fisher, past CEO of DLI, provided an update on the Otherwise you could always Blame others, always have an issues of perc in the USA and related the issues to what Excuse and be in Denial, as in B.E.D. It is just as easy to do may occur in Australia. something as do nothing.

JP048_DIA NL_issue25_0912.indd 8 13/09/12 5:27 PM The main focus was on contaminated sites and DLI have by Rosemary about the impact of dyes and temperature their own story to give on contaminated sites. When and different fabrics and what you can do and what you one considers that DLI are a teaching facility and not a can’t do. retail drycleaning store, their experience is compelling. The Culla Pack is a great resource for drycleaners to direct A $2.5 million clean up bill was the end result and they their customers to Culla Change if there is a problem with removed and treated about 250 gallons of perc from the their garment. Rosemary’s answer as to what to tell the contaminated area. customer about the service, is tell them nothing, let the Bill cautioned the delegates that in selecting a company to people at Culla Change explain the product and guide assist in any clean up ensure they have experience and if them through the process and manage their expectations. they mention proprietary products be very careful because It will save everyone a lot of heartache. the costs will most likely be extremely high. There are a couple of celebrated cases in the USA where a Speed Dating settlement on one contaminated site cost $30-$40 million The final session of the conference was called speed and at another was just a mere $10 million. dating. This format had each presenter and sponsor sitting We are all aware that California have banned any use of at different tables and on the signal, groups moved onto perc from 2023, and other states to follow are Illinois who the next table to ask those pesky questions that may not have set 2030 as their total ban, New Jersey are yet to set have been answered during the day. A good way to finish. a date and there are expected to be plenty more to come. Greenearth conferences are always worth attending. The high calibre of cleaner who attends these events ensures Filter mediums high level discussions and networking. At this particular conference, I was able to convert the only non member in Jim Douglas is a drycleaner from Sacramento in California the room into becoming a member so that left two people and also a director of Greenearth. Jim spoke of the use happy. of still less machines and how to get the most out of this process. In the USA they call the filter powder activated clay filter whereas Australia knows it better as Tonsil powder. Various techniques on the use and maintenance of these filter systems were discussed. One interesting topic raised by Jim was that of polymer bead washing machines. This is new technology that Greenearth are working with as a total environmental solution for drycleaners. The polymer technology allows an 80% reduction in water use in laundry. It is still in the trialling stage but it is an exciting development in our industry. Dyeing Rosemary Wright of Culla Change provided an amusing and informative background to her company and the world of dyeing. There were some interesting points made

JP048_DIA NL_issue25_0912.indd 9 13/09/12 5:27 PM

DIA NATIONAL Trends CONFERENCE Initiatives 23 - 24 FEBRUARY 2013 Ideas Networking The Guest speakers Advice Challenge What’s new of Change Opportunities NOVOTEL Solutions GLEN WAVERLEY Business Awards MELBOURNE CONFERENCE PROGRAM

TIME EVENT LOCATION / SPEAKER CONFERENCE COSTS SATURDAY 23 1.00 - 6.00pm Suppliers Exhibition Commences (All prices are inclusive of gst) SUPPLIERS SAVE THE DATE TODAY EXHIBITION 3.00 – 3.30pm Afternoon Tea Suppliers Exhibition 3.30 – 5.00pm Panel discussion “Solents Now & into the Future” Moderator DIA MEMBERS A panel of suppliers and drycleaners will discuss George Masselos 2 full days per member $230 the merits and limitations of solvents used in Includes all sessions, morning and afternoon their business teas, pre dinner drinks, dinner & Sunday lunch 5.00 – 6.00pm Technology & Computerisation for One additional person from business development same business when a full delegate package is purchased $180 6.15 – 7.15pm Pre Dinner Drinks Pre Dinner Drinks & Dinner only $85 7.30 – 11.00pm Dinner Oakleigh Room Sunday only $180 Presentation of National Business Awards & Life Pins SUNDAY 24 9.00 – 3.00pm Suppliers Exhibition SUPPLIERS NON MEMBERS SOLUTIONS EXHIBITION 8.30am Registration 2 full days per person $350 Tea & Coffee on arrival Includes all sessions, morning and afternoon BUSINESS 9.00 – 9.30am Maximising a DIA membership. The next stage Philip Johns teas, pre dinner drinks, SESSIONS 9.30 – 10.30am The global business climate Neale Joseph, CEO Motorola dinner & Sunday lunch plus a $100 payment “Impacts for Australian Business” towards a DIA membership 10.30 – 11.00am Morning Tea Suppliers Exhibition One additional person from same business when Ideas a full delegate 11.00 – 11.30pm Energy & water savings What’s new package is purchased $250 11.30 – 12.00pm Building a website and using it effectively Pre Dinner Drinks & Dinner only $120 Initiatives 12.00 – 12.45pm Lunch Suppliers Exhibition Sunday only $250 12.45pm – 1.45pm Sustainability in Drycleaning Deborah Rechnitz CHAIRMAN’S MESSAGE Solutions 1.45 – 2.45pm Service, Satisfaction, staff attitude & Social media. I am pleased to endorse the 2013 DIA National Conference, to be held in Melbourne at the well appointed Novotel What do these elements have in common? Deborah Templar Glen Waverley. 2.45pm – 3.15pm Afternoon Tea Suppliers Exhibition

This is the ﬁrst National Conference we have held for some years and marks the resurgence of DIA National and is part 3.15pm Closing Address Dan Smith of the on-going development of events and services for members. NOTIFICATION AND PAYMENT OF REGISTRATIONS ARE DUE BY The Conference, branded the “Challenge of Change” is made up of a Suppliers Exhibition, a solutions panel session, 4 JANUARY 2013. networking, Business Awards presentation, the inaugural Life Pins presentation, dinner and business sessions. All session speakers have extensive experience in drycleaning and business in general and have been selected to bring the very latest information to the audience. I trust that members and non members alike will support the event and I look forward to meeting you all over the two days. Dan Smith, President and Board Chairman GOLD GOLD SPONSOR SPONSOR

22350.DIA.ConferenceFAr01.inddJP048_DIA NL_issue25_0912.indd 1 10 11/09/1213/09/12 2:485:27 PM 22350.DIA.ConferenceFAr01.indd 2 11/09/12 2:48 PM

22350.DIA.ConferenceFAr01.indd 1 11/09/12 2:48 PM 22350.DIA.ConferenceFAr01.inddJP048_DIA NL_issue25_0912.indd 2 11 11/09/1213/09/12 2:485:27 PM Small Business Workshop

What is my Business worth? Recent editions of Pressing News have examined the 8 step business planning process. The reason for business planning is to improve the efficiency and therefore the profitability of your business. The ultimate reason for a well planned business is to add value to the potential sale price of the business. In most situations, you will have bought the business you are currently operating. In less frequent numbers will be those who started the business from scratch. In both cases, you will have paid a substantial amount of money for either the outright purchase of the business or the fitting out and plant and equipment. It would be natural then to expect a decent return on your investment. Therefore, the next few months, the topic of ‘What is my business worth’ will be featured in these pages. As part of the overall program, a series of workshops will be conducted around Australia on this very same subject. The first of these will be held in Launceston on Nov 17. Overview Seventeen per cent of small business owners are planning to leave their business in the next two years and 40 per cent are aiming to leave in five years. Whether you live in Australia, USA, Canada, USA, NZ, the UK or South Africa the research is the same. There are a massive amount of Business Owners that will be looking to retire over the coming years. Thirty per cent of small business owners in Australia are now over 50 years of age and this rate is increasing each year. There is no doubt that, as the baby boomers near retirement and the average age of small business owners increases, the age-old laws of supply and demand will come into play. In such a crowded marketplace business owners will need to present their business in an appealing, professional manner to stand out from the competition and achieve the maximum return. Sixty six per cent of owners, in this country, plan to use their business as their primary source of retirement income; forty three per cent aim to realise a lump sum benefit from the business; and 31 per cent expect an income stream. For these people selling the business in order to retire, it is of paramount importance that the sale price will allow them to retire comfortably and not compromise their quality of life. Research shows 70 per cent of businesses think succession and exit strategy planning is important but only 12 per cent have a documented plan. Unsurprisingly, the main motivating factor for the creation of a plan is age. A major impediment to succession planning is that most business owners don’t understand the drivers that underpin the creation of an exit strategy. Selling a business is a marketing exercise that requires planning, preparation and a compelling pitch. An exit strategy needs to be achievable and have a realistic timeframe and measurable milestones. This series of articles will explain the key issues that need to be addressed in achieving the best possible price for your business, so readers can create a document that encompasses the unique features of their business, life situation and price expectations. What not to do! You have done a great job in establishing and building your business and now it is time to reap the rewards! It is unfortunate, however, that many business owners who spend years building their business will receive only a fraction of what their business is actually worth. It is very tempting for business owners to quickly put together an advertisement or find a business broker to sell the business tomorrow. But before starting to advertise the business, you need to put together the correct material and systems to present your business in the best light. Why? Because the better your business appears on a piece of paper, the more it will be worth, and the better the chance of actually selling the business. Example of what can go wrong:

Doug owns a drycleaning business and advertises it as great business with a turnover of $500,000, reasonable profitability and heaps of potential. This looks good on paper and a potential buyer gives him a call. He sounds very interested. He comes to Doug's premises and asks for some sales and management reports. These sales reports don’t seem to add up to $500,000. Doug explains that it is very complex and there is a difference between the management and accounting reports. The potential buyer asks for sales by item. Once again Doug’s reports do not add up. Doug tries to explain the differences but each time he pulls up a different report he gets different variances. He then asks for the last three years tax returns. It takes Doug a week to track these down as his accountant is away. Doug also can’t give him the last year's return as it has not been done, even though the financial year finished seven months ago. The tax return shows a loss. Doug explains that this was done on purpose. All the official numbers in the tax return vary to numbers placed in the advertisement and those mentioned in their conversations. At this stage Doug has lost the buyer's trust and his credibility. His constant delays result in the Hot Buyer making the decision to go with an alternative business for sale. THE OUTCOME: Doug probably will not sell the business and if he does, it will be for a discounted price.

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JP048_DIA NL_issue25_0912.indd 13 13/09/12 5:27 PM Book Club

We have reviewed many great books in this Book Club and there Create a way your staff can record these valuable bits of are many more to come. The problem with many of these books feedback. Every month or two go through what has been logged is that they are hundreds of pages in length and can be quite and look for patterns. Tell your staff about the compliments. intense to read and extract the critical information. Hence, the The 101 Quick Tips – Effective Communication – chapters rise of the various books of lists. include Conversations, sales, writing, emailing, marketing, The Guinness Book of Records is probably the most famous presenting, negotiating and telephone. and well read but there is a plethora of books out there that are Some examples; concise and to the point. 100 great wines to drink before you die! 1000 songs to hear before you go deaf! The 50 best beaches in Tip 14 – The greatest gift – When speaking to someone, look the world. The bucket list books are endless. them in the eye and give them your full attention. In this time of ubiquitous distractions, putting down you mobile phone, turning Which gets me to away from three great books the computer I came across or TV and when attending a really giving conference a few them your years ago. Debbie undivided Mayo-Smith is a attention is globally recognized the greatest speaker and a gift. People leading business notice. productivity expert. Debbie is now Tip 56 – a number one Define your bestselling author ultimate with books like the benefit – your 101 Quick Tips business doesn’t revolve around a single product. Even if it does, series. Debbie, an American now living in New Zealand, is also it’s not the product people want, is it? It’s the benefits they receive a mother of 6 which went in the order of single birth, then twins, from that product. When marketing, writing copy or designing and then triplets. (obviously time to stop) ads, think about the ultimate benefit and build around that. Ultimate benefits are what your clients and prospects are really At the first conference at which I heard Debbie speak, her seeking: more money, weight loss, success, better health, being presentation was so compelling that at the break, her series attractive, and so on. of books (50 sets) were sold out within minutes. You don’t necessarily have to hear Debbie speak to appreciate her ideas Spending a fair amount of time sending and receiving emails and books but if you get the opportunity to hear her, make the as part of my work day, the email dominates so for me the most effort to attend you will not be disappointed. productive book has been 101 Quick Tips – Email and Google. It is difficult to review such books as there are so many good Even the tip headings are evocative with titles such as; messages and the best way to assess the book is to see examples of the hints. Each book is broken up into small chapter headings 1. Which should I use: Outlook or Outlook Express? and each of these chapters will hold 10 or 20 quick ideas aimed at 12. What’s the secret for coping with 100s of emails? improving your abilities. 27. Can I be more organized in my Inbox? In 101 Quick Tips – Create a Great Customer Experience – the chapters are headed as People, Processes, Policies, Strategy, 53. How can I make sure I get an answer? Adding Value, Telephone, Communication and Enter you 75. Any tricks for browsing through contacts? Customer’s world. Under Tip 94 – How does Google decide which website to show A couple of examples; first? – The million dollar question. This is of course a closely Tip 31 – Don’t worry about being right – All too often we let our guarded secret. However, you can see if Google knows if your pride get in the way of creating a great customer experience. website exists and how it ranks the page by downloading the When we disagree with a customer, or they tell us we have made Google Tool bar (see Tip 93). One of the tool bar advanced a mistake, our ego makes us want to convince the customer we features is the Page Rank. This is a little green bar that, like a are right and they are wrong. Make it your policy never to do that thermometer, will show you what it thinks of any web page you’re because you can never win a battle with a customer. If you do on. So check out the ranking of your competition as well as your not accept their point of view, they will just take their business own website. elsewhere. You can be right and poor, or wrong and rich. So as you can see there are terrific tips in each of the books. Now Tip 98 – Listen to what they are telling you – Every day your if you used a new tip every day, that would give you something to customers give you nuggets of gold. Most of us let them slip do for nearly each day of the year (with time off for holidays) and through our fingers rather than using them to improve business. how good would that be? • Compliments tell you what you need to keep doing, or do It does raise the question about a 101 Quick Tips – Drycleaning more of. Hints??? • Complaints tell you where you need to improve. These books can be purchased on line at www.successis.co.nz/ books.htm • Suggestions tell you how to improve. The price for each of the books is just $20 and you can also • Frequently asked questions indicate needs that are not purchase the ebook of each for an even cheaper $10. Stock up for being met. Christmas.

JP048_DIA NL_issue25_0912.indd 14 13/09/12 5:27 PM Associates Forum

When your employees want more than just super AustralianSuper’s purpose is to help our members retire with more money. We take care of the important things like keeping our fees low and striving for strong long-term investment performance to help grow the retirement savings of members. But we also do more. Members are insured with us When a person joins AustralianSuper they’re given a certain level of cover, which is based on their age. The cover is designed to provide for the member (or the member’s family) if they die, become terminally ill, temporarily disabled or totally and permanently disabled (TPD). Type of cover Amount of cover automatically accepted without health information* Maximum amount of cover available – health information required Death and/or TPD $1.5 million Death – no maximum (cover above $600,000 will be limited to $1.5 million or 10 times salary**, whichever is lower) TPD – $3 million Income protection Up to $20,000 per month or 85% of salary** Up to $50,000 per month or 85% (including any employer SG contributions), whichever is lower. of salary** (whichever is lower)

* When a member first joins AustralianSuper. Conditions apply. ** Salary is the member’s annual before-tax salary, excluding employer super contributions. AustralianSuper insurance cover is provided by TAL Life Limited ABN 70 050 109 450 AFSL 237848.f cover Maximum amount of cover The cost of AustralianSuper insurance cover for most members is lower than if they were to take out their own insurance cover, and the premiums are paid from their super account so they don’t have to worry about it. Members can access financial help and advice We can provide help and advice on super and finances when our members need it. Over-the-phone advice on super issues like investment choice and pensions is available at no extra cost by calling us on 1300 300 273.† We also have calculator advice tools on our website that can give advice based on a member’s personal situation. Some even provide a Statement of Advice similar to those produced by financial planners. For members who prefer to speak with someone in person, we have financial planners in our offices who can meet with a member and, if needed, prepare a detailed financial plan on a fee-for-service basis.† † The advice a member receives will be provided under the Australian Financial Services Licences held by third parties and not by AustralianSuper Pty Ltd, and therefore is not the responsibility of AustralianSuper. Members can choose how to invest their super For members who like to have a say in how their super is invested, we have a wide range of investment options, including directly investing in shares. Members can choose one or any combination of options to create an investment selection that suits their needs. Members can do more online To get the big picture of what their super is doing, members can log on to their account on our website at any time and update their details, add to their super, check their account balance, make their investment choice and more. To make things easier many of our forms can be completed online and already include the member’s details. Are your employees getting the most out of their super? For more on the services AustralianSuper can offer you and your employees, call us on 1300 300 273.

This document was prepared in August 2012 by AustralianSuper Pty Ltd ABN 94 006 457 987, AFSL 233788 the Trustee of AustralianSuper ABN 65 714 394 898 and may contain general ﬁnancial advice which does not take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your ﬁnancial requirements and read the Product Disclosure Statement, available at www.australiansuper.com/pds or by calling 1300 300 273.

GreenEarth Affiliates' Exclusive Rights The Australian Patent Office (a division of the Federal Government Agency IP Australia) provides GreenEarth Cleaning LLC and its Affiliates the protection of three different GreenEarth patents. The most critical patent is listed as patent 752824 in Australia and patent 509452 in New Zealand. It is the base patent that exists in 42 countries and covers the process of using liquid silicone (regardless of the manufacturer) for the purpose of cleaning fabric. It doesn't matter whether it's a cyclic siloxane or a linear siloxane, and it doesn't matter whether the solvent contains 1% silicone or 100% silicone. IP Australia states that “the Australian Government grants patents for any device, substance, method or process that is new, inventive, and useful. . . Under Australian law, a patent is legally enforceable and gives the owner, exclusive rights to commercially exploit the invention for the life of the patent. . . However, owners must put appropriate safeguards in place, maintain secrecy, communicate their legal rights and, if necessary, defend their rights through legal action.“ Further, IP Australia recommends “whatever action you do take, pursue it vigorously and make sure any infringer knows you're serious about protecting your patent.” This requires vigilance by GreenEarth Cleaning and commencement of infringement proceedings against anyone using liquid silicone in the dry cleaning process without a licence and anyone who is selling the solvent to an unlicensed dry cleaner. Proceedings may include filing a lawsuit, applying for legal damages, payment of the license fee itself, the legal fees, the court costs, and any damages that are assessed. Affiliates receive the benefit of this exclusive protection reflecting the research and development involved in creating and testing this effective cleaning process and establishing the patents.

JP048_DIA NL_issue25_0912.indd 15 13/09/12 5:27 PM OH&S Dry Cleaning fire sparks WorkCover safety call Following a recent fire at dry cleaning business in Sydney’s inner west WorkCover NSW is urging all NSW dry cleaning businesses to take steps to prevent similar incidents. The incident occurred when foam coat hanger covers packed in tightly wrapped bundles of 50 were soaked in water and placed inside a dryer to be separated. Because the foam coat hangers were petroleum based, the heat from the dryer created a flammable gas which was ignited by either a spark from the dryer or static electricity inside. The fire intensified after the dryer door was blown open and further fuelled by oxygen outside the dryer. As a result of the fire, the business owner sustained serious burns and the premises were significantly damaged. Under NSW work health and safety laws, foreseeable hazards must be identified and the associated risks eliminated or controlled. There are also responsibilities in relation to dangerous goods which include items that can cause explosions and fires. Two key responsibilities are to provide information and control risks. Other risks, such as uncontrolled chemical reactions, fires and explosions, must also be prevented. General Manager of WorkCover’s Work Health and Safety Division, John Watson, said WorkCover NSW was bringing the incident to the industry’s attention so future incidents could be avoided. “Sometimes risks may be obvious, sometimes they are less so,” Mr Watson said. “Safe work procedures ensure businesses and workers are aware of risks and outline how to avoid injury or illness. “Safe work procedures are most effective when developed in consultation with workers and provide a useful training and supervision tool. “WorkCover is urging all dry cleaners to have safe work procedures and emergency plans in place so that future incidents can be prevented or managed safely.” For further information on safe work procedures and emergency plans check the WorkCover website at www.workcover.nsw.gov.au or telephone the WorkCover Assistance Service on 13 10 50.

JP048_DIA NL_issue25_0912.indd 16 13/09/12 5:27 PM Survey Dry Cleaning fire sparks WorkCover safety call Following a recent fire at dry cleaning business in Sydney’s inner west WorkCover NSW is Surveys are a very important part of monitoring the On the specific services offered by the DIA, the Pressing News urging all NSW dry cleaning businesses to take steps to prevent similar incidents. performance of any business and industry associations are no and Ebulletins scored nearly 90% positive review and DLI The incident occurred when foam coat hanger covers packed in tightly wrapped bundles different. Now that the restructure of the DIA is completed membership being worth 70%. Even the recent changes to of 50 were soaked in water and placed inside a dryer to be separated. and the direction clearly defined, it is important to know from the customer complaints service received 66% positive result the members as to how the changes have affected you and if with the $44 charge for inspection and report. Because the foam coat hangers were petroleum based, the heat from the dryer created the policies recently implemented are having a benefit to the a flammable gas which was ignited by either a spark from the dryer or static electricity One striking area that has become apparent is that just under industry and to you. inside. 50% thought the industrial relations service was helpful with The fire intensified after the dryer door was blown open and further fuelled by oxygen The survey was conducted by an external company so employee management. We would be keen for anyone to outside the dryer. that confidentiality could be guaranteed on the answers expand more on how we can better help you in this area. provided and also that credibility of the results could not Another pleasing aspect of the survey was the number of As a result of the fire, the business owner sustained serious burns and the premises were be questioned. The format of the survey was on line which responses to the open questions. There were a number of significantly damaged. unfortunately precluded some of our members participating great comments registered which were mainly positive, some Under NSW work health and safety laws, foreseeable hazards must be identified and because they do not have an on line presence. The on line negative and plenty of suggestions. the associated risks eliminated or controlled. There are also responsibilities in relation format hopefully made it easier for members to answer the to dangerous goods which include items that can cause explosions and fires. Two survey without impacting too much on your time. The most noticeable of the comments showed that you want key responsibilities are to provide information and control risks. Other risks, such as uncontrolled chemical reactions, fires and explosions, must also be prevented. It is the intention of DIA to conduct regular surveys of its • more events and a decent trade show. membership. Future surveys will be more specific in nature • Training figured prominently including on line training. General Manager of WorkCover’s Work Health and Safety Division, John Watson, said and will address issues such as employee management, • Country members want to see more happening for out of WorkCover NSW was bringing the incident to the industry’s attention so future incidents customer problems, manufacturers and trends. towners. could be avoided. • More Assistance with compliance In an extremely pleasing outcome, the overwhelming “Sometimes risks may be obvious, sometimes they are less so,” Mr Watson said. response to most questions was a resounding 80% positive The main story to come from the open comments is that “Safe work procedures ensure businesses and workers are aware of risks and outline how to avoid injury or illness. result of agree or strongly agree to the question. members want to be identified as professionals and stand apart from other drycleaners through accreditation/rating “Safe work procedures are most effective when developed in consultation with workers and provide a useful training and supervision tool. Relationship – the four questions about DIA and member system. You also want the non members to be held to account relationship indicated that the DIA understands the members “WorkCover is urging all dry cleaners to have safe work procedures and emergency plans in place so that future incidents can be prevented or for compliance matters. managed safely.” requirements, there is mutual respect and the member values their professional relationship and will continue with The demographic of the respondents was For further information on safe work procedures and emergency plans check the WorkCover website at www.workcover.nsw.gov.au or their membership. Each of these responses was approx 90% 42% 1 – 4 employees, 33% 5 – 10 employees, 12.5% for 11 – telephone the WorkCover Assistance Service on 13 10 50. positive. 20 employees and plus 20employees. Communication – it would appear that we are easy to contact 51% of respondents were aged in their 50s and only 3% under and respond well to enquiries with a 90% positive result. The the age of 30. 22% were female. use of website showed only 27% of members access the site regularly but 40% found it easy to navigate. 58% have been members for longer than 8 years and 17% members for under 2 years. Continuous Improvement – 75% thought the DIA responds to feedback and it strives to improve its services to members. In the number of shops category 60% were one shop owners and 26% were 2 – 5 shop owners. There were a few N/A which Operations – between 3% and 5% of members did not think must have been the supplier members. the DIA was well managed, delivers services on time and is professional. These are the first figures that I have ever seen that give a snapshot of the demographics of the industry. Therefore we Documentation – no disagreements on invoicing and other wish to share this information with you so that you can better documentation (92% positive), general correspondence understand the industry in which you work. received an 83% positive result. We should finish on a positive note and it was nice to see Staff – 85% of members said the staff had a good level of that both Ruth and myself were mentioned in the things you knowledge and were passionate about helping members and like about DIA. Someone even thought the executive were even better still, 93% said we project a professional image. doing a good job (nice comment Dan!). It is great to get this (Thank you Thank you Thank you Thank you) feedback as Ruth and I (and so do the executive) put in many Member services – there were 6 questions on services and hours to make the DIA a better organization and we enjoy 80% felt it was easy to access services, there was a good working with all members so to see it is reciprocated is very range of services of high quality and you would welcome satisfying. more services. Between 70% and 75% said we rectified problems promptly and met our commitments. Responses by Key Area and No of Employees

JP048_DIA NL_issue25_0912.indd 17 13/09/12 5:27 PM Complaint Desk

Rigid rainwear? Crackly coats? Peeling Parkas? ….. It’s been a common complaint this winter and chances are its’ due to poly vinyl chloride (PVC) or polyurethane (PU). PVC is commonly applied to ‘all weather’ garments allowing the fabric levels of water repellency. To ensure the fabric stays soft and pliable a softening agent or plasticizer is applied to these coatings. If the softening agent breaks down in the cleaning process the result is usually a hard, stiff unserviceable garment. Polyurethane is a film applied to a base fabric to give gloss, shine or leather-like appearance. The drycleaning process can cause the film to separate from the base fabric resulting in the objectionable appearance of peeling, blistering or tearing. The care instructions on the garments inspected have been varied, ranging from dry clean only, machine washable and do not dry clean. Damage has occurred to first time cleaned garments and garments that have had been cleaned before without a problem. The only consistency was PVC or PU. As it is the responsibility of the manufacturer to ensure every component of a garment is able to withstand the recommended care process for the expected life of the garment, this type of damage should be referred to the point of sale for resolution. The DIA have technical bulletins on these conditions. If you would like a copy please contact the office. On the Rack Pretty in Pink Alice & Olivia Cream coloured winter jacket with black lining style # 87-640-647PO # 4150 RN # 107677 Care label - Shell : 63% polyester. 32% viscose 5% spandex. Lining 100% Polyester. Warm iron. Dry Clean Only (P). Cocktail style dress. Cream bodice with a heavily beaded Made in China. decorative collar and dark brown ‘skirt’. Care label - Professional Dry Clean Only. Shell 100% Silk. CLEANED – Hydrocarbon and GreenEarth Lining 94% silk PROBLEM - black dye of the lining runs. 6% spandex. Skirt 63% polyester 32% rayon 5% spandex. RESULT - DIA testing also confirmed dye instability to CLEANED - placed inside a mesh bag and drycleaned in perchloroethylene. A report was supplied referring the hydrocarbon. owner of the garment to the retail point of sale. PROBLEM - brown dye deposits onto areas of the bodice. RESULT - DIA testing confirmed the brown dye was not colourfast and supplied a report stating the findings. Bardot The pictured jacket has an obvious problem with bleeding buttons. Bardot ZARA is aware of the problem and have recalled the garment to change the There have been a number of problems reported to the DIA buttons. We believe they will replace following the cleaning of this brand. Although no two have any garments that end up like this. been regarding the same garment, some of the complaints include – dye run, beads melted, loss of optical brightener and no care instructions. Thumbs Down Keep an eye out! Burberry – we are receiving many complaints about buttons on Burberry coats and jackets. The care label on all garments mention to cover or remove buttons and with a minimum of 10 buttons per coat, that is Thumbs Up considerable time to cover or remove and we suppose the customer will HUNT NO MORE – a dress was submitted for drycleaning on pay for this extra work! Wednesday which carried a line of mirrors across the bust. The One type of button bleeds, another causes nicks to the fabric and another drycleaner advised the customer that the mirrors are likely to break tends to hold moisture around it and leave a tide mark. if cleaned according to the care label but the customer insisted. Following a super gentle cycle, the mirrors did of course break. Most of the problems have been on traditional trench coats but a recent one was with an all weather fabric. The drycleaner advised the company by email of the problem on the same day. Hunt no More located a dress on Thursday and Burberry is suggesting the problem is not with the buttons. We are express posted it to the customer who was able to wear it for the suggesting to be on the watch out for Burberry Coats and handle with special occasion on Saturday. care. Everyone breathe a sigh of relief and well done Hunt no More! Strange Labels

We have a couple of roving investigators out there and checking on care labels and the strange things that pass as a care instruction. As usual there needs no explanation for the accompanying photos.

JP048_DIA NL_issue25_0912.indd 18 13/09/12 5:27 PM Coming Events

Penguin Dry Cleaners Drops and Swaps DIA Workshop & Christmas Dinner Solvents Launceston, Saturday Nov 17, 2012

“What is my Business Worth” Workshop 3.00 – 5.00 pm How attractive is your business? The risk factors of a business Setting the price – getting the price Exit Strategies

Christmas Dinner – 6.30 pm Some Christmas Cheer with industry colleagues and a magni cent repast will be provided be tting the occasion, at a venue to be decided Robert Stevens & John Murphy during the drop & swap from hydrocarbon to GreenEarth

John Murphy of Penguin Dry Cleaners talks about his drop and swap from hydrocarbon to GreenEarth

Recleans “The returns out of hydrocarbon were probably about 15-20%; with GreenEarth we were always having around 10%.” Cycles times are “pretty much the same.” Hydrocarbon “wasn’t giving me Solvents, Wet Cleaning the results we wanted. . . It still & Spotting Workshop has a smell. . . It is not a better option.” Lawrence Dry Cleaners, Waterloo Types of garments in Sunday Oct 7, 2012 10am – 3pm GreenEarth? “Everything”

To hear more of what John has to say visit www.gecleaning.com Questions: Ph: 02 8003 6727 • Cleaning Methods Email: [email protected] • Spotting Techniques • Garment Analysis

Cost: $60 for training sessions and lunch.

Venue: Lawrence Dry Cleaners 887 Bourke Street, Waterloo Penguin Dry Cleaner’s Drive Thru 19

JP048_DIA NL_issue25_0912.indd 19 13/09/12 5:27 PM The Drycleaning Institute of Australia Ltd. Board Members for 2012 President: Dan Smith (Vic) Directors: George Masselos (NSW), Gavin Evans (WA), Kurt Goss (Qld), Howard Duffy (ACT), Bruce Wallace (SA), Roger Smith (Tas), Seconded – Philip Littlejohn, Tim Mottin CEO: Philip Johns

184A Vincent Street Phone: 02 4993 3377 [email protected] Cessnock NSW 2325 Fax: 02 4990 9695 www.drycleanersweb.com

JP048_DIA NL_issue25_0912.indd 20 13/09/12 5:27 PM