Friday, December 5, 2008

Survival Skills In A Tough Economy: UniformMarketNews.com

(Note: This article was never published, nor was I paid for it, as Uniform Markets' felt the article was too negative.  In truth, it was perfectly correct and accurate.)

If you're reading this and you're like most of us, you're probably saying your prayers at night, and struggling plenty by day: The uniform industry, like many of those in today's world, is feeling heat from the huge economic meltdown.  Unlike jobs in technology, healthcare, the military, maintenance, or educational sectors, which are considered sacrosanct and necessary, the entire American market is in jeopardy; the apparel and uniform sectors are hanging by a thread.  Only those with the cleverest of survival plans, abilities to be flexible and roll with the punches will survive the shakedown.

If one goes online, looks in the Yellow Pages, or watches the ads in the newspapers, it will become readily apparent that under the heading of "Uniforms," there are not a lot of choices available.  Part of that is because not everyone wears a uniform and it’s a smaller niche industry; the other reason is that there just aren't that many of us around any more.  Tip: Consider partnering with a larger company.

Chances are that if you go out to dinner, you'll find your servers in T-shirts, polo shirts, or white dress shirts—basic and no frills.  They will all have been made off-shore.  If they need a cover-up, it's quite possibly an apron—also less expensive if purchased from an off-shore company that manufactures by the thousands.   If you check pants, it's the same: Off-shore.  It doesn't matter whether they're industrial, chefwear, casual or dress.  For the most part, it's off-shore manufactured slacks that are being worn. Tip: Sell off-shore merchandise as well as "Made in the U.S.A."

What is also noticeable is that fewer and fewer establishments are purchasing uniforms at all.  Employees are asked to purchase their own garments within certain guidelines.  Uniforms are no longer desired, save a cover-up to protect an employee's street-clothes, if even that.  While the littler mom-n'-pop shops are cutting out uniforms altogether, even the bigger companies are honing down.   Tip: Think aprons and vests.

Larger establishments are leaving the rental business as a means of handling their uniforms, and returning to the concept of purchasing the garments while letting the employees launder their own.  One large Sheraton hotel in Colorado is reported to have cut its uniform costs by $100,000 per year, as a result of returning to purchasing their garments instead of renting them.  Tip: If you're a renter, offer the alternative of buying.

Embroidery and silk-screening are the good news and the bad news in the uniform business.  One can look at them as the ribbon around the uniform package—good looking identity by offering a logo on low-cost garments, rather than higher priced uniforms that offer the identity by themselves.  Or, one can do away with the identity imprints as being too costly, and merely use a style, a color, or an accessory such as a hat, scarf or tie—one less aspect again on which to spend extra dollars.  Tip: Be familiar with alternative accessories.

As businesses go out of business, as corporations become more casual, as mergers rid themselves of duplication, as salaries and budgets become less instead of more, the question of how the uniform will survive, is a very real one.  It used to be, of course, that mostly service people wore them.  It also used to be that there were very few choices of garments available, and styles, colors, and fabrics from which to choose were limited.  A waitress looked like a waitress, a chef looked like a chef, a nurse looked like a nurse, and a doctor looked like a doctor.  Today, there are literally big-box stores for medical and kitchen wear.  It will be interesting to see how they do as time goes forward. Tip: Think about adding garments for the service industry in your inventory.

The entire state of California expects to go under in a couple of months, the real estate and banking industries are dying on the vine, and the automobile industry is in the soup.  If they go under, the ripple effect in terms of the economy will stagger businesses everywhere.  What does this forecast about uniforms—an added burden on company budgets?   Can't bank personnel just wear their own clothes?  Can't eateries?  Do liquor stores and mall personnel, or department stores really need an entire ensemble, when a single article will do just fine?  Tip: Think inexpensive, practical, and clever.  

Several of the manufacturers and retailers here in the United States are out of business.  Others are barely managing, as one owner of a factory that's been in business for over a century, said the other day.  "Production is down to three days a week," she confessed.  "People are making do, and no one wants to buy.”  

A customer who had long bought a particular product for his Shrine accessories is now ready to change the product and purchase Canadian, NAFTA and customs be hanged.  "It's half the price," he defended.  "Even though the quality isn't nearly as good as American, we can't afford the real McCoy any longer."  Tip: Offer alternatives.  Think outside the box.  Never say "never."

The trick of it, if there’s any "trick" at all, is to survive however one can. 
If it means pounding the pavement, cold calling, follow-up calls, using the Internet, having flyers or sandwich boards on the street, do it. If working out of your home, shortening your hours, cutting your personnel, cuts down on the overhead, do it.  If you need to streamline your telephones and technology in order to save dollars per month, do it.  Tip: Advertise like crazy and think do-it-yourself tactics.

Whatever it takes, either commit yourself to the long haul, or think about getting out.   Be careful not to drive your business, your credit, and your capital into the ground on a last-ditch hope that you might make it.  Last but not least, be sure you get a minimum payment of 50% up front, and the balance pre-paid before delivery.  Even the best customers these days are huge risks.  The bigger the customer, the greater the loss for you if he defaults.

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