-Wall Street turned lower Monday even though the nation's service economy unexpectedly expanded in April. The index of the service sector was better than expected by three points. Oil prices didn't help matters though by topping $120 a barrel.
-Here is Monday's daily dose of higher prices to fly. Monday's comes from United Airlines. The world's second largest carrier will begin charging some passengers $25 to check a second piece of luggage. The charge will be applied to customers who buy non refundable economy tickets and aren't members of the frequent flier program. United will charge all customers $100 per bag for up to four additional bags. The policy took effect Monday.
-Yahoo came out of the Wall Street gate Monday and lost 17 percent of its value after Microsoft withdrew its $47 billion buy out bid. Yahoo had said if you want to buy our company you'll have to give us more money. Last ditch talks between Yahoo and Microsoft were fruitless, leading Microsoft to walk away from a deal Saturday.
-We're seeing it happen in nearly every type of business. Expenses are skyrocketing and so are prices. The dry cleaning industry is experiencing higher costs and a need to change the way it does business.
Mike Maloney, Owner, Nu Yale says, "I've been it for 35 years this is one of the most dramatic changes that we've seen."Mike Maloney owns Nu Yale Cleaners and in the past year expenses have skyrocketed. It is forcing Nu Yale to evaluate every aspect of its business.
Maloney says, "You have to make money and that's why you do business. Yes we've had to increase some of the costs but compared to the 60 to 300 percent increases that we've seen on a lot of raw materials, our cost over the last few years maybe have increased ten percent."
Mike says its not just petroleum driving up costs 60 to 300 percent. "The cleaning materials, your hangers, the plastic bags, different types of hangers, all kinds of cleaning solvents changed over the last couple of years. We've changed the type hangers for example we use instead of all steel or metal hanger, we changed to a plastic or even a wooden hanger. What does that get you? We feel even by the cost being a little bit higher even if we can recycle thirty percent of it brings us back to our cost of the regular metal hanger. It makes us more cost effective but also more environmentally friendly too." Maloney tells FOX 41.
This fall Maloney says his company will begin using what he calls an industry changing CO2 cleaning process.
"It's more cost efficient but its also actually adds life to the garment almost 90 percent increase to life in the garment versus the cleaning process we use today because it doesn't use any heat to dry it with. You have to make money and that's why you do business. Yes we've had to increase some of the costs but compared to the 60 to 300 percent increases that we've seen on a lot of raw materials, our cost over the last few years maybe have increased ten percent."
Nu Yale is Louisville's only member of America's Best Cleaners organization. Maloney says it gives his company access to worldwide information to help his operation stay up to date, more efficient, and cost effective.