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Our Thoughts

The Real Cost of Chaos

Justin Koh10 min read

So our business is intrinsically chaotic.

A little more than most businesses, honestly.

And we kind of just accept it. We keep doing things the way they've always been done because, well, that's the way they've always been done. But at some point, you have to ask: what is actually causing all of this chaos?

In dry cleaning, the cause is pretty simple. Customer satisfaction is based on perfection. They pay us to clean and press their clothes - on time and as expected: like new. That sounds easy, but it's not. Because there are a million little things that can go wrong with every hand-off from one employee to the next.

It's only a matter of time before we return something late. Or we're missing a piece. Or we don't get the stain out. Or we miss a preference. And when that happens, the customer gets frustrated. Sometimes they leave.

And honestly, the only reason a lot of customers come to us in particular is because we're convenient… and we haven't pissed them off yet.

That might sound harsh, but it's true.

A lot of what we do as dry cleaners is reactive. The customer comes in and now we're scrambling. "One second, let me find your stuff." Or, "I'm sorry, let me see what happened." Or, "What can I do to get your business back?" But by the time we're having that conversation, the stain has already settled.

A lot of this comes down to communication. If something is late, and we know it's late, and we call or text the customer before they drive ALL the way to the shop, that changes the whole interaction. Now they're not wasting their time. Now we're managing expectations. Now we're showing them that we're paying attention. That one message can save a relationship.

But most of the time, that message doesn't happen. Not because people don't care. It's because it's hard. It requires a system. It requires change. And change is annoying. But the real question is, how much is not doing anything costing us?

So I challenge you: what changes do you need to make in your business to create pro-action, not reaction?

And yes, pro-action is in fact a real word… starting now.

Pro-action means putting controls in place before the customer is standing at the counter upset. It means clean lot management so everyone, at every step, knows what orders are fulfilled and what orders are not. It means knowing what's missing before the customer shows up. It means knowing where an order was last, who touched it, and what still needs to happen.

Because it's a lot easier to track something down when you know where it was last.

Who pressed it? Who cleaned it? Who altered it? Where did it stop moving? That kind of visibility matters.

And that brings us to accountability. Accountability is important, but accountability does not mean blaming people every time something goes wrong. If a presser doesn't put creases in pants that need creases, who do we blame? The presser? The CSR? The manager? Or do we blame ourselves because we have a bad system in place?

A lot of the time, people fail because the system lets them fail.

If preferences are not clear, if production standards are not visible, if there are no checks and balances, then mistakes are going to happen. And they're going to keep happening. The point is not to blame people. The point is to catch issues early, fix behaviors early, and make the whole operation better.

And this doesn't just apply to customers. This applies to employees too.

There is chaos in hiring. There is chaos in training. There is chaos in employee retention. And honestly, the relationship you have with your employees carries more weight than the relationship you have with your customers.

When someone is not the right fit, we need to know that early. We need to coach them, correct them, and make decisions before that behavior starts affecting the rest of the team. I don't want to call people "bad apples," because that's not really the point. The point is that one person who is not bought in can bring the whole standard down.

Cliche, but… you are only as strong as your weakest link.

And if we keep treating the people who care the same as the people who don't, eventually the good ones start to care less too. That's just human nature.

The great employees are the ones who get frustrated. They're doing the work. They're carrying the standard. They're helping keep the business together. And a lot of times, we don't recognize them. We don't show them the numbers. We don't show them how much better they are. We don't give them anything to be proud of.

So eventually, they leave. And then we act surprised. That's also the cost of chaos.

This is why metrics matter. We need to know who is good, who is improving, who needs help, and who is bringing the team down. Not based on feelings. Not based on who talks the most. Not based on who we like. Based on numbers. Based on visibility. Based on what is actually happening inside the business.

Because when people can see the numbers, it changes the culture.

You can create a culture of excellence. You can make the work competitive in a healthy way. You can gamify it. Not in a toxic way, but in a way where people can see where they stand, see what good looks like, and actually take pride in getting better.

That helps the whole organization.

The best people get recognized. The people who need help get coached. And the people who are not bought in become easier to identify early.

That is how you protect the standard.

And these are all reasons why I created Magnoli.

Dry cleaners need telemetry. I mean, we can't put GPS trackers on every garment. That's not realistic. It doesn't take state-of-the-art equipment to get a better grip on what's going on, but it does take effort, and maybe a few new computers.

It's hard to manage chaos when you can't see anything.

It's hard to know what's late if nobody is tracking it. It's hard to know what's missing if lots are not managed. It's hard to know who is performing well if there are no metrics. It's hard to know what customers are slipping away if nobody is looking.

So we need tools that make that stuff visible.

And it has to be practical. It can't require some massive setup where every station costs more money and every new computer becomes another expense. That's part of why we do unlimited stations with Magnoli. I don't want cleaners feeling bogged down by software costs just because they need more visibility in the plant.

Hardware doesn't have to cost much. Put the tools where the work happens. Push the information through the business instead of letting it get stuck.

That's one side of it.

The other side is the customers you already lost.

Because I'm sure you want them back.

And it is a lot easier to reactivate an existing customer than it is to go find a brand-new one. Especially if you're in a small town. But even in a big town, what are you going to do? Spend more money on Google ads? Put a wacky waving inflatable arm-flailing tube man in front of your shop and hope new people find you?

So what about the customers who haven't come in for 60 days? What about the customers who used to come in all the time and then just stopped? What about the customer who only comes in for alterations and has never dry cleaned a pair of pants in their life? Do we know who they are? Are we doing something about it?

Maybe it's automated. Maybe it's a real phone call from a real person. It doesn't all have to be automated. But either way, you need tools and checks and balances to make sure it actually happens.

Because good intentions do not bring customers back.

Systems do.

And your inventory is telling you things too. How many late orders are sitting on your racks right now? How many orders just haven't been picked up? How much of your hanging inventory has been sitting there for 60 days? 100 days? 200 million days?

You probably have money sitting on the rack. Or maybe you don't because you don't even know it's missing.

But if your inventory is messy, your systems are messy, your logs are messy, and your lot management is messy, then it is almost impossible to act on any of it.

Once your inventory is clean, once your systems are clean, once your logs and lot management are clean, everything gets easier to track down. You can see what is late. You can see what is missing. You can see what has not been picked up. You can see what customers are slipping away. You can see what employees are performing and what employees need help.

That is the point.

The standard is really just to meet expectations. But that expectation is high.

Customers expect their clothes to be right. They expect them to be done on time. They expect us to remember their preferences. They expect us to communicate when something goes wrong.

Employees expect clarity too. They want to know what success looks like. They want to know if they're doing a good job. They want to know that the people around them are being held to the same standard.

And managing all of that can feel like a full-time job.

But a lot of it can be automated. Not all of it. People still matter. Real communication still matters. Leadership still matters. But if your organization is willing to change a little bit, it can make the product better, the service better, the employees better, and the business better.

And when the product gets better, you get more sales.

When customers come back, you make more money.

When good employees stay, the whole business gets stronger.

So when we get a dry-cleaning customer, we can't think of that customer as someone who comes in once. That's not a real customer. We want recurring business. And when they stop coming in, that is lost revenue.

So how are we managing that?

How are we managing our garments? How are we managing our customers? How are we managing our lost customers? How are we managing positive relationships and negative ones?

For the happy customers, how many have we called? How many have we thanked? How many have we rewarded?

For the unhappy customers, how many have we tried to win back?

And when we run promotions, how do we know they're working? How do we know our ad spend is actually turning into money over time? Six months later, did that customer come back because of the campaign? Did they come back because of the promotion? And for the ones who didn't, what are we doing next?

That is all part of the chaos.

Dry cleaning is always going to have chaos. There are too many garments, too many preferences, too many deadlines, too many employees, too many customers, and too many moving parts for it to ever be perfectly simple.

But that does not mean we have to accept the same problems forever.

We can communicate earlier. We can track better. We can create accountability without blame. We can recognize great employees. We can identify problems before they spread. We can win back lost customers. We can clean up inventory. We can build systems that create pro-action instead of reaction.

Because the real cost of chaos is not just the missing garment or the late order.

It's the customer who doesn't come back.

It's the great employee who leaves.

It's the standard that slowly slips because nobody had the visibility to protect it.

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The Real Cost of Chaos — Our Thoughts — Magnoli