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May 8, 2012

FRANKFURT, Germany — IPSO “builds” working vended laundry at Texcare trade show

FRANKFURT, Germany — IPSO is showcasing a fully operational vended laundry at Texcare International 2012. Visitors to the booth are able to see how the machines process clothing and linens and how advanced controls help owners increase energy efficiencies.

Vended laundry offers a high return on investment, little or no employee overhead and a relatively small initial investment, according to IPSO, making it an excellent business investment for any entrepreneur. And a vended laundry can be customized to accommodate almost any cultural and geographic factors, the company adds.

The display includes eight of IPSO’s new HD softmount washer-extractors and three DR tumblers. The washers  operate using the Cygnus standard control and are connected to a central pay system. The tumblers feature the DX4 control.

“At IPSO, we know our products work hard to get the job done and it’s important for customers to see that, too,” says John Balman, senior director of sales—Europe for Alliance Laundry Systems, IPSO’s parent company. “Having a fully operational coin store at Texcare gives us the opportunity to not only describe how a Laundromat works, but to actually allow our visitors to experience it.”

Texcare International—the World Market for Modern Textile Care—runs through Wednesday.

April 30, 2012

CHICAGO — Maintenance schedules and other opportunities

CHICAGO — The specter of ever-rising utility costs should be enough to spur the average laundry owner to track this expense and explore ways to minimize it.

In response to a series of questions from American Coin-Op, Gary Dixon, national sales manager for Huebsch, and Kent Walters, national sales manager for Maytag® Commercial Laundry, discuss the role that tracking energy usage and maximizing its effectiveness plays in a successful self-service laundry, and offered some important tips for corralling costs.

Often, the battle against rising utility costs starts with your equipment.

Q: What is the average life expectancy of today’s washers and dryers?

Dixon: Life expectancy will vary depending on machine usage, installation, preventive maintenance and other factors. However, it is not uncommon for laundry owners to get 12-15 years of life out of their machines.

Walters: The average life expectancy of today’s single- and multi-load washers is seven to 10 years. As a result of fewer moving parts, single- and multi-load dryers typically have a slightly longer life expectancy of 10 to 12 years. If washers or dryers are used more or less frequently, life expectancy fluctuates.

Q: How much impact can following a regular equipment maintenance schedule make in a store’s efficiency?

Walters: Store owners who want to maximize equipment performance must regularly perform proactive and preventive maintenance tasks. In washers, cleaning equipment and surrounding areas, tightening bolts that hold machines in place, and looking for leaks, checking belts, bearings, and seals for standard wear and tear, etc., are important. By performing regularly scheduled maintenance, store owners are less likely to incur a major breakdown, costing them additional money for parts and downtime. When maintaining dryers, it is critical to keep vents clean and make sure the dryers have enough make-up air.

Dixon: By following a recommended maintenance schedule, the laundry owner is ensuring that their equipment is operating at optimum efficiency. This translates to lower utility costs and keeps down time to a minimum. The result is happier customers and more profit.

Q: If a store’s energy efficiency begins to decline, where should the owner first look to make changes?

Dixon: The first place to look is in the washer-extractor control software. Are the water levels set where you wanted them? Is the water temperature different than where it was? Is the software notifying you of potential leaks?

Walters: If energy efficiency begins to decline, the first place a store owner should investigate is the dryers. Specifically, an owner needs to ensure all ventilation is free of lint, which can cut down on the amount of air getting to the dryer, as well as make-up air.

Q: Does water usage impact energy efficiency, and vice versa?

Walters: Yes, water is a big expense for store owners and using newer, low-water-use washers can save a lot of money in both water and sewage savings. High-spin-speed washer-extractors are necessary to maximize cleaning performance by spinning out additional water from laundry so dryers don’t have to work as hard to dry the load.

Dixon: It most certainly does. The amount of water in each bath and the number of baths in a cycle has a direct impact on water and sewer costs. Equipment designs that minimize wasted water below the wash cylinder will also have a favorable impact on water usage. Water-level adjustability is critical for optimizing water settings at a minimum level that is still acceptable to your customers.

Q: How can a store owner “train” their customers and attendants so their laundry’s energy efficiency is optimal?

Dixon: In any business, the culture and message that is communicated comes from the top down. If you are adamant with your employees about maximizing efficiency and provide a mission statement and guidance to them for realizing your goals, you will create the culture. This will, in turn, be communicated to your customers.

Walters: Having a trained attendant who can show the customers the proper way to use the equipment is always the best. Signage is another great way to train customers and attendants on use of machines, proper amount of detergent, operating instructions, etc. Signage should include simple-to-follow instructions located in easy-to-read places.

Q: Besides laundry equipment choice and usage, where are some other opportunities to shore up energy efficiency?

Walters: Store owners should obtain an energy analysis of the store through their local laundry equipment supplier to help determine areas that need improvement. In addition to equipment, owners should consider incorporating energy-efficient options, such as high-efficiency water heaters, T-8s, electronic ballasts, light sensors and task lighting.

Dixon: There are many variables that impact energy efficiency. Some things to consider: alternative sources for energy needs, type of water heaters, choice of lighting and fixtures, window tinting, the thermostat setting, and even landscaping are just a few things to look at.

Q: To whom may a store owner turn for assistance in improving their store’s energy efficiency?

Walters: Whether shopping for new equipment, looking to upgrade existing equipment, or needing some assistance related to a store’s laundry operations, it is important to connect with a reliable, established distributor for guidance. The best laundry distributors are those that have a long history in the business and have received positive reviews for the customer service they provide.

Dixon: The relationship a laundry owner has with their local distributor can pay dividends into the future. The local distributor is well versed in what is available from the equipment manufacturer. They also have an intimate knowledge of the area they serve.

Q: Do you have any other comments to add regarding energy efficiency in the self-service laundry?

Dixon: Over the past several years, many laundry owners have postponed upgrading their equipment to products that are more energy-efficient; this is certainly understandable. However, when the time comes and it makes good business sense to do so, it is important to not just look at the price of the products. It is also important to look at the cost of ownership of the equipment and energy efficiency is a major factor in this cost.

Click here for Part 1!

April 24, 2012

BENTON HARBOR, Mich. — Company ranked for 10th consecutive year

BENTON HARBOR, Mich. — Whirlpool Corp. has been named one of Corporate Responsibility Magazine’s100 Best Corporate Citizens for the 10th consecutive year. Whirlpool ranked No. 69 on the magazine’s 13th annual list, which is regarded as the top corporate responsibility ranking based on publicly available information.

Last year, Whirlpool ranked No. 85. Its move of 16 spots can be attributed to high scores in the Corporate Governance, Employee Relations and Philanthropy categories.

“We are honored to be named one of the best corporate citizens for a decade straight,” says Jeff M. Fettig, chairman and CEO of Whirlpool Corporation. “Whirlpool Corp. strives to conduct business with integrity while continually keeping a diverse workplace as a guiding principle. It is a priority for us to improve communities—with sustainable and innovative products and operations, as well as giving back to the communities where we live and work.”

Launched in 2000, the 100 Best Corporate Citizens List is based on more than 318 data points of publicly available information in seven categories: environment, climate change, human rights, employee relations, corporate governance, philanthropy and financial performance.

Whirlpool has also recently been named to the Forbesand Reputation Institute’s Most Reputable Companies in the U.S. and Fortune’sWorld’s Most Admired Companies lists.

April 23, 2012

ST. JOSEPH, Mich.— Distributor best exemplifies service, dependability characterized by brand

ST. JOSEPH, Mich.— Lakeside Laundry Equipment, Cleveland, recently received this year’s Red Carpet Service® Excellence Award during Maytag® Commercial Laundry’s 54th Annual Meeting in Marco Island, Fla.

A longstanding tradition, the award is presented to a company that best exemplifies the excellent service and dependability characterized by the Maytag Commercial Laundry brand.

“Although relatively new to the Red Carpet Service® Program, Lakeside Laundry Equipment went above and beyond the program’s requirements, hosting two service schools, a sales and service open house, and working closely with our service personnel,” says Bob English, general manager of global commercial laundry at Whirlpool Corp. “The company’s dedication to quality service, our brand and their customers is commendable.”

Award criteria include service response time, customer comments, loyalty and service etiquette, and a commitment to the company by continually engaging in Red Carpet Service® training courses.

“From the top down, our sales and service departments go to exceptional lengths to ensure customer satisfaction,” says Howard Shear, co-owner at Lakeside Laundry. “We see these same qualities in the Maytag brand and equipment, and we’re proud to be associated with a respected industry leader.”  

Lakeside Laundry Equipment offers commercial laundry equipment solutions for coin, multi-housing and on-premise laundry (OPL) applications, and has more than 50 years of combined experience.

April 19, 2012

CHICAGO — Be willing to listen and make changes

CHICAGO — Many times we think we have everything figured out, that all is good because we have owned our laundry businesses for a few years and there is some cash flow. Let me tell you, that’s going be the downfall to being able to successfully sustain and maintain a business lifeline.

I am seeing businesses, in many cases, barely getting by month to month, scratching for cash because they either do nothave a business plan or refuse to listen to advice. They will not adapt like a chameleon and rethink their business plan in an ever-changing marketplace.

Do You Want Pennies or Dollars?

That’s the decision you need to make as you are running in circles trying to manage people, customers and your business. If what you are doing is not really making you and your family real money, then why are you not changing, listening to advisers or paying attention to all the red flags around you? Simply because you have had moderate success is not really being successful.

People go into business because they want to live the American dream, right? If you’re not in the financial position you desire, pick up the phone and seek advice from someone who has already been there and done it, someone with a successful track record in the industry who can help you re-think or create your business plan.

Do You Want to Be a Player or Not? 

In my 22 years of industry experience, I’ve learned that the people who are successful business owners are willing to listen, to make changes, and to build a solid team. They are willing to regularlytake meetings with their employees, be on-site to feel the pulse of what’s really happening, and then take the necessary steps to push their business over the top.

I released my first book more than four years ago and it has since gone international. I share this not to try to impress you but to empower you. I was willing to seek out and follow the advice of others who walked before me.

So ask yourself, do you want to be a player or not?

April 17, 2012

PITTSBURGH — Look at everything from location to equipment mix and store naming

PITTSBURGH — Congratulations, you’re a successful laundry owner. You have a great location, a solid customer base and well-maintained machines—but now what? It may be time to look at expanding your business and opening a second store.

By now, you know the basics of running a laundry business. Unfortunately, a complete replication of your first store may not make for a successful second store. It is important to go back to the basics and look at everything from location to equipment mix and store naming.

LOCATION

Here’s a challenge for you: don’t just find a location as good as your first one, find one better. Understand that this is no easy task and will require lots of time and research.

The first thing you should consider when looking for a location is how far away from your original store your second one should be. Carve out an area of no more than an eight-mile radius from your original store and use that as your market. Having your stores in close proximity—no more than 45 minutes from each other—allows you to easily move between stores. Also, if your stores are all close together, it can be a great way to corner the market from your competition.

Now it’s time to talk with your distributor. Since you already have a successful store, you most likely are already working with an experienced distributor. Make sure to continue to cultivate that relationship, as it can be a great benefit when looking to purchase an existing store or build a new store.

Distributors typically have information on existing Laundromats coming up for sale and will approach you to judge your interest. The distributor can easily identify whether this laundry is a potential good investment, knowing the performance and location of the store.

Rehabbing a store has its pros and cons, but can make a great second store if proper due diligence is done. A benefit to choosing a store to rehab is that utility company charges and codes are more likely to be grandfathered in, meaning you will not have to deal with the hassle of obtaining multiple permits from the city and retooling plumbing or electricity to meet building codes. This varies between municipalities, so make sure to ask your distributor before assuming this is the case.

If there are no stores for sale in your target area, it’s time to start scouting other possible locations. Get in your car. Learn about your surrounding neighborhood. Look for areas where there are many apartments or maybe even a college campus. Once you’ve identified an area, it’s time to consult with your distributor. Your distributor will be able to pull detailed demographic reports that will be able to provide you with an idea of the surrounding population near the proposed location. If the demographics look favorable, it may be time to buy the land or storefront and start your second store.

ADVANCED CONTROL OPTIONS

Whether rehabbing a store or building one from the ground up, it’s time to rely on what you’ve learned from your first store. You already know what works—now it’s time to make it even better. Look at the machines your distributor has to offer; there are probably new advancements since you last purchased equipment. It may also be time to look at investing in advanced controls if your previous store doesn’t have them. Advanced controls can be a great resource for multi-store owners.

Certain manufacturers produce controls that allow an operator to program a machine right from their PDA. With the control, you can alter the time-of-day pricing and retrieve audit data right from the palm of your hand. Reports pulled can detail how each machine performed throughout the day. If a machine is taking too long to drain or is not filling with water to the appropriate level, the report will show this. Without these reports, it may take days or weeks to catch problems like these. In conclusion, these reports help prevent wasted energy and water.

Specific controls can give owners the option of choosing from up to 30 water levels, which can save thousands of dollars a year in water and energy savings when compared to older machines without advanced controls. Customers can benefit from having up to 24 cycle selections with these controls, keeping them happy and in turn giving your store a good reputation for being technologically advanced.

THE INVESTMENT

Although the rewards and return on investment can be great from owning multiple stores, the initial investment for a second store is not inexpensive. It’s important to work with your distributor and commercial laundry machine manufacturer to develop a financing plan that is suitable to your needs. Some commercial laundry manufacturers will allow you to finance directly through them, which streamlines the financial process.

Financing through a laundry manufacturer is far better than using a bank. Manufacturers not only understand the industry better than anyone else, but can also tailor a financial solution that meets an individual laundry owner’s and/or facility manager’s needs.

Choosing a financial service provider that is unfamiliar with the commercial laundry industry can lead to unnecessary risks and costs, including overpaying for services, hidden fees, slower response to time-sensitive opportunities, and limitations on the long-term success of the business.

Another financial area to consider is the cost of employees in your new store. Many stores in the Pittsburgh area are unattended, for example, but the trend is moving toward attended stores. Customers want to be able to interact with someone when they have a problem. This is a great benefit for customers who want face-to-face interaction and for you, having the peace of mind of someone always being on-site to deal with any issues that may arise. If you do choose to open an attended store, you will need to factor in this additional cost.

If looking at an attended store, I would suggest a credit/debit card store. Although the upfront investment of a card system is more than a traditional coin system, the ROI down the line may be higher. Along with that, card systems save busy multi-store owners time since they do not have to empty coin boxes regularly, or make multiple trips to the bank on a weekly basis.

FINISHING TOUCHES

After you have all your logistics figured out, it’s time to name your store. I suggest that multi-store owners keep the same type of name for each store. Customers will make the connection between your stores; if you’re already known for running one successful business, why waste time rebuilding your reputation?

Throughout the whole process of becoming a multi-store owner, it is important to have confidence in your distributor and your equipment manufacturer. They will be your go-to source during this transition and before you know it, you could be opening your third, fourth or fifth store!

April 16, 2012

ST. JOSEPH, Mich. — The honor's primary objective is to recognize a Maytag Commercial Laundry distributor for

ST. JOSEPH, Mich. — Harco Co. Ltd., Mississauga, Ontario, Canada, recently received the prestigious Fred Maytag Award during the Maytag® Commercial Laundry 54th Annual Meeting in Marco Island, Fla.

The Fred Maytag Award, with a history of more than five decades, is the longest-running award in the commercial laundry industry, the company says.

“Enthusiasm for the industry, loyalty, and unmatched performance are synonymous with the Harco name,” says Bob English, general manager of global commercial laundry at Whirlpool Corp. “This award testifies to Harco’s strong performance in all three markets, including a 46% increase in overall business from 2010, and an all-time record year in the multi-housing segment.”

When Fred Maytag established this award, his primary objective was to recognize a Maytag Commercial Laundry distributor for outstanding achievements and remarkable performance. Recipients emulate his marketing philosophy to distribute the company’s products with professionalism and integrity.

“We are honored to receive Maytag Commercial Laundry’s Fred Maytag Award,” says Robert Jackson, president at Harco. “We believe in the brand and the time-tested reliability of the company and its products. We’re fortunate to be associated with a strong and innovative industry player that supports our business in so many ways.”

Founded in 1961, and with present ownership in place since 1981, Harco was appointed as a Maytag Commercial Laundry distributor in 1984. Harco is a three-time Fred Maytag and Red Carpet Service® Excellence Award winner. In addition, Harco won the inaugural Breaking Away Award last year.

Jackson and fellow owner Robert Stevens were on hand to receive the award. Also present at the awards dinner was Fritz Maytag, grandson of founder Fred Maytag.

April 11, 2012

CHICAGO — How do you think your self-service business compared to others in the industry last year? Did you have a good year or a bad year in 2011? How does your pricing compare with others?

CHICAGO — How do you think your self-service business compared to others in the industry last year? Did you have a good year or a bad year in 2011? How does your pricing compare with others?

American Coin-Op’s annual State of the Industry survey offers you the opportunity to compare your operation to others in the industry. It focuses on 2011/2012 business conditions, pricing, equipment, common problems, turns per day, and utilities cost.

The survey is an unscientific electronic poll of American Coin-Op readers who operate stores.

ADDING EQUIPMENT IN 2011

Approximately 45% of the respondents purchased at least one piece of equipment (washer, dryer, water heater, vender or changer) in 2011. In 2010, that figure was 47%.

Here’s a breakdown of the 2011 purchases:

• 23.6% of respondents purchased at least one top loader. The average purchase was 17.1 machines (it should be noted that this statistic includes a single operator’s reported purchase of 97 machines; when excluding that operator, the average purchase is 9.1 machines).

• 28.9% of respondents purchased at least one front loader (a breakdown by capacity follows below).

• 12.4% purchased at least one dryer (regular or stacked). The average purchase was 11.3 machines (it should be noted that this statistic includes a single operator’s reported purchase of 97 machines; when excluding that operator, the average purchase is 5.1 machines).

And we break it down further by front-load wash capacity:

• 42.9% purchased at least one machine with a capacity up to 25 pounds. The average purchase was 8.9 machines.

• 48.6% bought at least one machine with a capacity of 25-50 pounds. The average purchase was 4.2 machines.

• 37.1% purchased at least one machine with a capacity of more than 50 pounds. The average purchase was 1.8 machines.

(Editor’s note: Some respondents didn’t identify machine sizes, so the front-loader breakdown doesn’t include their purchases. Also, the percentages do not total 100% because some buyers purchased equipment in multiple capacity categories.)

SHOPPING IN 2012

Respondents were asked if they have bought, or plan on buying, any new machinery this year. Approximately 36% intend to add something (washer, dryer, water heater, vender or changer) to their mix, or already have done so. Last year, this figure was 47%.

• 6.6% of respondents have purchased or plan to purchase a new top loader this year. The average purchase is (or will be) 10.4 machines.

• 21.5% have purchased or plan to purchase a new front loader this year. (A breakdown by capacity follows below.)

• 14% plan on buying, or have already bought, a dryer in 2012. The average purchase is (or will be) 7.0 machines.

And we break things down further by front-load wash capacity:

• 34.6% purchased or plan to purchase at least one machine with a capacity up to 25 pounds. The average purchase was 6.0 machines.

• 30.8% bought at least one machine with a capacity of 25-50 pounds. The average purchase was 4.1 machines.

• 23.1% purchased at least one machine with a capacity of more than 50 pounds. The average purchase was 2.5 machines.

(Editor’s note: Some respondents didn’t identify machine sizes, so the front-loader breakdown doesn’t include their purchases. Also, the percentages do not total 100% because some buyers purchased equipment in multiple capacity categories.)

WE’VE GOT TROUBLE…

What problems cause you the most grief? Here are the top-five industry problems, according to the survey respondents:

  1. High cost of utilities
  2. Dealing with employees
  3. A lack of customers
  4. Poor economy
  5. Equipment maintenance/repair issues

Gone from last year’s list is rent, although it did pop up on a number of surveys.

TURNS

The average turns per day for top loaders are 3.0, up slightly from last year (2.9). The average turns per day for a front loader is 3.8, also up from last year (3.4).

UTILITIES

We asked operators about their utilities cost (as a percentage of gross). The responses ranged from 5.6% to 50%. The most popular response is 25%, followed by 20%.

Operators are paying an average of 24.1% for utilities (as a percentage of gross).

2012 BUSINESS FORECAST

Slightly less than half of the respondents (47.5%) expect their 2012 business to be better than it was in 2011. Approximately 42% expect business to be about the same this year, and 10.8% expect their business to not perform as well this year as it did in 2011.

Click here for Part 1.

Click here for Part 2.

April 10, 2012

CHICAGO — Thirty-seven percent have brought firearm to store

CHICAGO — How safe do you consider the neighborhood where your laundry is located? Do you think your customers or employees feel safe in your store while doing laundry or working there?

Nearly three-quarters of respondents to this month’s AmericanCoinOp.com Wire survey describe their neighborhood as “somewhat safe.” Roughly 19% say their neighborhood is “neither safe nor unsafe,” and the remaining 7.4% describe theirs as “extremely safe.”

No one who took the survey described their neighborhood as “somewhat unsafe” or “not safe at all.”

Yet, more than 40% of operators say they, an employee or a customer have been a victim of crime at their laundry. Most of these incidents involved burglaries or robberies. An employee was threatened with a knife in one case, while an attendant was pushed to the ground in another.

A surveillance system is the most popular safety-related feature or practice utilized by respondents (77.8%). Other popular choices are employees/owner watch store (48.1%), alarm system (44.4%), signage (33.3%) and some type of weapon (29.6%).

Thirty-seven percent of operators who responded to the survey have brought a firearm to their laundry. Among those who haven’t, 35.3% said they would consider carrying a firearm while there.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take the industry survey anonymously online each month. All self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of this page and follow the instructions.

April 9, 2012

CHICAGO — How do you think your self-service business compared to others in the industry last year? Did you have a good year or a bad year in 2011? How does your pricing compare with others?

CHICAGO — How do you think your self-service business compared to others in the industry last year? Did you have a good year or a bad year in 2011? How does your pricing compare with others?

American Coin-Op’s annual State of the Industry survey offers you the opportunity to compare your operation to others in the industry. It focuses on 2011/2012 business conditions, pricing, equipment, common problems, turns per day, and utilities cost.

The survey is an unscientific electronic poll of American Coin-Op readers who operate stores.

WASHER PRICES

Respondents were asked about their current washer prices, and if they increased prices this year or planned on doing so by the end of the year.

Eighty percent of respondents offer top loaders. The price range for a top-load wash is $1 to $3.50. The most expensive top-load wash was the same price last year.

Here are the most popular top-load prices followed by the percentages of respondents using them:

1. $2 (25.8%)

2. $1.75 (20.6%)

3. $1.50 and $2.25 (14.4% - tie)

5. $2.50 (11.3%)

The biggest change is that $2 jumped from No. 3 last year to No. 1 this year. This moved last year’s No. 1 $1.75 into No. 2. Tying for third were $1.50 and $2.25.

A handful of operators continue to charge $3 or more for a top-load wash. This is the second straight year that there have been multiple prices topping $3 reported in the survey.

The most popular prices for some of the small front loaders are:

  • 18-pound washers: $2.50
  • 20-pound washers: $2.50
  • 25-pound washers: $3

The lowest price in the above grouping is $1.75 (20-pound washer) and the highest price is $5 (also a 20-pound washer). Overall, this year’s most popular small front-loader prices are a bit more expensive than last year’s prices.

The price range for a 30-pound wash is $2 to $5.50. Here are the most popular 30-pound prices, along with the percentages of respondents using them:

1. $3.50 (34.8%)

2. $4 (10.9%)

3. $3, $3.25 and $4.25 (8.7% - tie)

The most popular price for a 35-pound wash is $3.50, followed closely by $4.50. The price range for a 35-pound wash is $3.25 to $5.25.

The most popular price for a 40-pound wash is $4.50, but $4 and $5 aren’t far behind. The most popular 50-pound wash price is $5.50, followed closely by $5.

The most popular price for a 60-pound wash is $6. The price range for an 80-pound wash is $6.25 to $13, with $8 being the most popular price.

The most popular prices for the largest front loaders (125 pounds) are $14.99 to $15.50.

Because the group of operators who respond to our survey is different each year, prices tend to vary. But the survey consistently has shown that operators offer a wide variety of front loaders (prices for 20 different capacities were logged this year) with a broad price range.

DRYER PRICES

Operators have historically tended to shy away from raising dryer prices, choosing instead to focus on washer price hikes. The average store owner continues to operate under the belief that customers will be upset by tinkered-with dryer prices but less apt to complain about washer price hikes.

Here are the most popular dryer prices, followed by the percentage of respondents using them:

1. 25 cents/6 minutes (23.1%)

2. 25 cents/8 minutes (18.5%)

3. 25 cents/5 minutes (16.7%)

4. 25 cents/7 minutes (13.9%)

5. 25 cents/10 minutes (8.3%)

The No. 1 price remains the same as last year, but fewer operators are using it. Seven minutes of drying time dropped from second last year to fourth this year, and the 25-for-8 and 25-for-5 prices each moved up a spot from last year. The 25-for-10 price—once an industry staple—remained fifth at practically the same percentage as last year.

As usual, there were a wide variety of dryer prices reported. The most expensive (and longest cycle) was $1.75 for 35 minutes.

A handful of respondents reported they offer free dry in their stores.

DROP-OFF SERVICE PRICING

Drop-off-service pricing ranges from 75 cents to $2 per pound. Here are the most popular drop-off-service prices (per pound), followed by the percentage of respondents using them:

1. $1 (34.9%)

2. $1.20 and $1.25 (10.8% - tie)

4. 90 cents (6%)

5. $1.10 (4.8%)

The drop-off-service prices remain similar to 2011 prices, and there are a greater variety of prices charged. There were 21 different prices charged per pound amid the operators who took our survey.

Slightly more than two-thirds of the respondents offer drop-off service, which is down from last year’s survey.

PRICE HIKES?

We asked operators if they have already raised washer and/or dryer prices in 2012 or intend to do so before year’s end.

Approximately 50% say they have raised washer prices this year or intend to raise prices by the end of the year. Roughly 31% of respondents say they are not planning to raise washer prices this year, and 19% are undecided if they are going to hike prices in 2012.

Regarding dryer prices, 17.8% have raised dryer prices this year or intend to do so later in the year. Roughly 64% don’t plan to hike dryer prices this year, and 17.8% are undecided about raising their prices.

In 2011, only 34% said they raised washer prices or intended to do so by the end of that year, and 13% said they raised dryer prices or intended to do so before that year’s end.

Check back Wednesday for Part 3: Equipment Purchasing Trends, Plus Common Managerial Headaches

April 2, 2012

FORT LAUDERDALE, Fla. — The conference will focus on increasing profits through business cycle changes and

FORT LAUDERDALE, Fla. — The 2012 Spring Educational Conference of the Multi-housing Laundry Association (MLA) will focus on increasing profits through business cycle changes; interviewing, hiring and evaluating employees; and the political picture of 2012.

Also, the group will bring back its popular route operator roundtable discussion.

The Ritz-Carlton Fort Lauderdale (Fla.) will play host to the event on April 22-24.

Three educational sessions are scheduled in addition to MLA committee meetings, networking opportunities and more.

Educational sessions on the tentative agenda include:

The Intersection of Politics and Policy, by Ron Brownstein, National Journal Group.

A two-time Pulitzer Prize finalist, Brownstein explains with lucid precision the complexities of American politics. He appears regularly on MSNBC programs, including Hardball, Andrea Mitchell Reports, and Morning Joe, and has served as a regular panelist on Face the Nation.

His sixth and most recent book, The Second Civil War: How Extreme Partisanship Has Paralyzed Washington and Polarized America, was published in 2007.

Talent Acquisition and Retention, by Deidre Siegel, PEAR™ Core Solutions.

Siegel is founder and CEO of an outsourced, human resources management firm that provides core competencies in behavioral analytics for individuals and in the workplace, talent acquisition strategies, and all levels of human resource support in areas of legal compliance and organizational development pertaining to policies, procedures, process, and people.

Her company has worked with teams in many organizations across a variety of industries. Clients are able to understand their unique business culture in a strategic manner, MLA says, and using this knowledge of specific and unique corporate dynamics, as well as the implementation of proper processes, documentation and communication, remain in growth mode perpetually.

Increasing Profits through Business Cycle Changes, by Alan Beaulieu, ITR Capital Partners.

Beaulieu co-authored Make Your Move, a book on how to increase profits through business cycle changes. He is president of the Institute for Trend Research, principal and managing partner of ITR Capital Partners, and an active member of ITR’s Investment Committee.

Beaulieu has been consulting with companies throughout the United States, Europe and Japan. His firm’s accuracy rate and unique position—with more than 60 years of calls throughout every major historic economic turning point—as well as his extensive understanding of business cycles and the ability to explain the implications makes his presentation unique, MLA says.

Away from the conference, attendees can take advantage of Fort Lauderdale’s art and museum tours, yacht charters, sports fishing, casinos and racetracks, and more.

The reservation deadline has passed at the host hotel, but rooms may still be available. Call 800-542-8680 for information.

MLA membership entitles each company to two complimentary registrations. Additional registrants or guests may attend at a registration fee set to cover the cost of food, beverages, and speaker expenses.

To learn how to register, call 800-380-3652 or e-mail nshore@mla-online.com.

March 29, 2012

PLYMOUTH, Mass. — Taking care of customers is Job No. 1 for store owner Neil King and his staff

PLYMOUTH, Mass. — At Mayflower Laundry, located in a former shopping plaza, it’s all about providing good customer service, says owner Neil King.

“We take care of our customers, that’s number one. We have a clean place. We are open seven days a week, 6 to 10. There’s always an attendant on duty. We have the right mix of machines, to let customers do their laundry in a hurry if they want to. We offer personalized wash, dry and fold. We have pickup and drop-off to offer maximum convenience.”

As a result, Mayflower takes in $360,000 in revenue annually. The company earns a profit out of that volume by keeping a rein on expenses—doing 25% of its own repairs, holding down utilities to 20% of volume, and having no debt. It helps that the operation depends little on marketing, rather relying on word of mouth to generate most of its business. Finally, rent plus fees are a reasonable 11% of volume.

The 2,000-square-foot Laundromat has a transportation company and a health club as plaza neighbors. It is right off the main road and has unlimited parking. Inside, the facility is clean, spacious, with many individual workstations. A ceramic-tiled waiting room contains padded seats, magazines, as well as children’s toys. Framed paintings adorn some walls. A glass-walled office at the entrance is where management and staff do their paper work. This placement allows close monitoring.

Two 50-pound dryers and 36 30-pound dryers, all from American Dryer Corp. (ADC), are positioned along one wall. Mayflower’s washers, manufactured by either IPSO or Continental Girbau, include two 75-pound front loaders, eight 40-pound front loaders, five 25-pound front loaders, six 25-pound high-speed front loaders, two 40-pound high-speed front loaders, and two conventional top loaders.

Several vending machines, including a soft drink machine, a snack machine and gum machines, stand alongside the seating area. “I don’t make much out of the Coke machine, but I fill my snack unit by going to BJ’s (Wholesale Club) and I do OK,” King says.

1,800 WASH-DRY-FOLD POUNDS WEEKLY

Keeping the customers happy largely falls on the shoulders of King’s manager, Michelle Ligue. She and her staff of four part-timers are responsible for maintaining clean premises, solving customer problems, and keeping the flow of wash-dry-fold work going. The staff processes 1,800 pounds each week at $1.10/lb.

“I’ve been here 12 years and I know most of the customers,” Ligue says. “And I know 90% of wash-dry-fold customers’ phone numbers. It’s important to keep up with the work, including in-store customers, wash-dry-fold work, cleaning, and the paperwork.

“I train them [her staff] to have a system, do one customer at a time, plan ahead as to which machines to use. The worst thing is to confuse orders. For this to work, it’s necessary to be a multitasker, because a staffer might have four things needing attention at once. We each do our own customers’ wash-fold-and-dry work, so we make sure their stuff comes to them the way they want it.

“For instance, I have a woman customer who owns a lot of rental property. She color-codes everything. She is very particular about the folding. I make sure I give her exactly what she wants. It makes a difference in staffers’ take, for 75% of wash-dry-and-fold customers tip.”

As for hiring, Ligue doesn’t hire anyone too young. An applicant should have some previous laundry or hotel experience and must be used to doing physical work to be considered. Ligue says she can tell if a person is going to make it based on the first hour of training. She is not opposed to letting people go after a day.

EXPANDING ON PICKUP AND DELIVERY

King is doing pickup and delivery for eight customers and is in the process of expanding that business. “It’s good business because it is priced at $1.35 a pound, and it gives us more to work with,” he says. “The key is to keep the customers bunched together and to develop an efficient route of pickup and delivery.” He is placing a series of eight ads that will run in the newspapers of nearby wealthier communities to build up clientele.

“Price isn’t a problem,” says King. “Many prospects are two-career households and they want the convenience and are willing to pay for it. We even have customers come in here who have washers and dryers at home, but use us because they can do all their laundry in an hour and a half. We focus on convenience in this portion of our business.”

Mayflower also does a big business in comforters because the bedding is too big for conventional machines. Cleaning dry mops for municipalities is another specialty.

Having a clean facility is key to a self-service laundry’s success, according to King; he believes customers won’t use a dirty Laundromat. At Mayflower, there’s a cleaning checklist for every shift—morning, noon, and night. Dryer lint traps are cleaned three times a day, because the presence of lint inhibits air circulation and retards drying.

King attributes the ability to control expenses to having new equipment. “Our utility costs run 20% of volume, which is 5% less than industry average. Newer machines are highly efficient, three-phase machines. It also helps that all dryers are powered by gas.”

King motivates his staff by paying them 20% of the wash-dry-fold business that they do. This keeps them turning out good product. Finally, it helps that everything is owned. Mayflower operates with a $50,000 equity line of credit, but doesn’t owe a cent on the investment.

With the company well positioned in the Plymouth-Kingston-Duxbury market, King has no plans to open another operation. Instead, he wants to build up drop-off and pickup service and continue relying on his staff to run the enterprise. This way, he only has to spend a few hours a day at the laundry and can devote more time to his real estate and other business interests.

“It’s a good business because you don’t have to be there, and you can still make money,” King says.

March 27, 2012

WASHINGTON — Man convicted of robbing Laundromat twice in eight days

WASHINGTON — A jury last week convicted a Washington man of armed robbery and carrying a dangerous weapon for two separate robberies of a Northeast Washington coin laundry last summer, according to the U.S. Attorney’s Office.

Lawrence White, 41, remains jailed as he awaits his May 31 sentencing. He faces up to 30 years in prison for each of two robbery charges and up to a year for each of two weapons charges.

According to the government’s evidence, just before 6 p.m. on Aug. 14, 2011, White entered a Laundromat in the 1600 block of Benning Road NE. He went into a private office and brandished a knife at an employee, making off with several hundred dollars in cash.

Just eight days later, White returned to the laundry in the early afternoon and robbed the same employee, showing the same knife and taking hundreds of dollars in cash from a cash drawer.

During the second robbery, a surveillance camera captured White running into the office and then exiting the scene. The surveillance video led directly to White’s identification and arrest a few days later.

March 22, 2012

CHINO VALLEY, Ariz. — Two-year-old store relies on

CHINO VALLEY, Ariz. — It’s been more than two years since Heavenly Graham opened Sudz Yur Dudz. Like many Laundromat owners, Graham opened her store while pursuing another career. Owning the store offered her another revenue stream, while not taking too much time away from her janitorial business.

She approached the investment through careful planning and research. She chose a convenient and well-visited area in the Chino Valley shopping center, with favorable foot traffic.

With the location secured, Graham needed to determine which machinery would be best for her customers and her bottom line. She chose Pellerin Milnor and, through the guidance of local dealer Laundry and Cleaners Equipment Co., elected to equip the store with Milnor’s coin-operated washers and high-efficiency dryers.

In order to get financing, Graham submitted a comprehensive business plan to her bank, laying out strategies to create a positive cash flow. “The community rallied in support of a new Laundromat,” she said. “Our employees are professional, helpful and friendly, creating an excellent reputation, which will contribute to long-term returning customers.”

Using Milnor Capital to finance the equipment helped her to reduce her terms and have more funds for operational expenses.

Sudz Yur Dudz is located across Highway 89 from a senior mobile home park; many of the park’s residents rely on her store for their laundry services.

Four different machine capacities offer them and other Sudz Yur Dudz customers, including individuals and families, flexibility in choosing the right machinery based on their needs.

With approximately 1,500 square feet of retail space, there is plenty of room for customers to wash, dry and fold their laundry comfortably.

With only one other coin store in the area, Sudz Yur Dudz has positioned itself for success in this market. A few months ago, the store began offering commercial laundry services during off-hours to local restaurants, a car wash, a mid-size hotel and the local Humane Society. The program fully utilizes its equipment and maximizes the store’s revenue stream. 

March 19, 2012

ATLANTA — Show committee picks Las Vegas-based company from

ATLANTA — The Clean Executive Committee has selected Global Experience Specialists (GES) to serve as the official services contractor for the 2013 Clean Show in New Orleans.

Three companies submitted proposals for the June 2013 show. “GES did our show in New Orleans in 2009 and did a great job,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “We look forward to working with them again in 2013.”

Chicago hosted the first Clean Show in 1977. United Exposition Service Co. was the official services contractor for that event and subsequent shows. GES purchased United in 1993, and the Las Vegas-based company has continued its partnership with the Clean Show for many shows since.

GES produces 3,000 exhibitions and events annually.

The Clean Show—officially titled the World Educational Congress for Laundering and Drycleaning—attracts people across all segments of the textile care industry, from single-owner, coin-operated laundry and drycleaning establishments to giant industrial and institutional laundries and textile rental companies.

March 8, 2012

PEMBROKE, Mass. — Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices. You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Interesting

What is an interesting bathroom? Well, it’s a clean bathroom with a special touch. But no one is suggesting you spend a lot of money for super-stylish Kohler bath fixtures like the ones you might see in upscale magazines.

I was once in a small bathroom with walls and ceiling painted black, sporting red sideboards plus gold-framed mirrors in three spots. My reaction was, “Wow, isn’t this something!” The homeowner said she spent about $100 to buy the mirrors at Goodwill and paint the walls and ceiling herself to create the Toulouse-Lautrec look.

I once was in a restaurant bathroom with a decoupage collage of advertisements that filled one wall from floor to ceiling. Painted in huge print on the front door was “Unisex Lavatory.”

So, how could a Laundromat bathroom be deemed interesting? It could be three pictures of colorful pastoral scenes on the walls. How about a plastic sign at the entrance that reads, “In this chamber, the most brilliant thinking occurs.” Would such a light touch hurt your reputation?

How about having a calligrapher write quotations in large Roman letters, then paste them to a green outlined foam core board that you’d affix to the walls? Some suggested quotes: “We are all lying in the gutter, but some of us are looking up at the stars.” — Oscar Wilde; “Be bold, be bold, but not too bold.” — Karen Blitzen; and “Most men live lives of quiet desperation.” — Henry David Thoreau.

Put a sign on the bathroom door identifying it as “La Pissoir” (urinal). Inside, suit up a life-size mannequin in casual clothing and beret and stand it in the corner. Think French. Or put a “WC” sign (short for “water closet”) out front and hang posters depicting British life on the walls. Have some fun.

An interesting bathroom expands the user’s experience, and just might be a reason he or she visits your laundry again. Furthermore, an interesting bathroom obligates your staff to keep it clean. You wouldn’t want that mannequin standing in squalor, would you?

Click here for Part 1.

March 5, 2012
INWOOD, N.Y. — Robert Chateau brings 12 years of industry experience to Laundrylux...

LAUNDRYLUX NAMES CHATEAU WESTERN REGIONAL BUSINESS MANAGER FOR COIN SALES

INWOOD, N.Y. — Robert Chateau is the new Western regional business manager for coin sales for Laundrylux. His territory includes Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Alberta and British Columbia in Canada.

“We have been working with Robert for a number of years and his sales skills, leadership abilities, and product knowledge are outstanding,” says Howard Herman, Laundrylux president.

robert chateauSan Diego-based Chateau brings 12 years of industry experience to Laundrylux. He learned to repair commercial washers and dryers while in the Navy. In 2000, Chateau joined longtime Laundrylux distributor Golden State Laundry Systems as service manager and worked his way up through the sales department. For the past two years, he has worked for Electrolux Professional, traveling to the Electrolux factories in Sweden and France many times for training.

“I saw a great opportunity with Laundrylux and am especially pleased that I will represent the Electrolux and Wascomat brands,” Chateau says.


SEAGA WELCOMES BACK BOWERSOX AS CHANNEL MANAGER

FREEPORT, Ill. — Industry veteran Dave Bowersox has returned to vending machine manufacturer Seaga as its channel manager for the full-line division. He is in charge of serving the company’s full-time customers and prospects.

While based in Seaga’s headquarters in Freeport, he will be working from his home in Minneapolis.

“We welcome Dave back to the Seaga family with open arms,” says Steven Chesney, Seaga CEO. “Dave is the epitome of what a Seaga employee should be: loyal, honest and ready to serve any and all customer needs.”

February 22, 2012

CHICAGO — Phil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March. The 5,000-square-foot attended store is equipped with new energy-efficient 60- and 80-pound washers that are much larger than those in competing stores and thus could command a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher quality product, we didn’t want to be perceived as the higher priced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors are at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

Your Competitor Has Undercut You – Now What?

And whether it happens intentionally or not, there is likely to come a time when a competitor will undercut you in price. Then you have a decision to make.

“If an owner is convinced that for the type of wash and dry they’re offering, the atmosphere, the other services, that they’re charging fairly, they should probably make the decision to give it some time and see if customers recognize that value and come back,” says Kevin Hietpas, vice president of sales and marketing for Dexter. He suggests giving it a month before acting.

Like any battle, a price war requires a strategy, Gauthier says. Neutrality is one strategy that allows the store owner to focus on their strengths while letting the competitor take the financial hit. But, neutrality isn’t always an option.

“Strategies are best developed after understanding a competitor’s strengths and weaknesses,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “For instance: Is their equipment mix weak? Maybe offering—and promoting—the right size machines for your market is the key. In a margin-based industry like vended laundries, price decreases should only be considered as a last—and short-term—step.”

“A store owner needs to provide his customers with assurance that they are getting the best service, equipment and experience money can buy,” says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry. “If a competitor in the area is charging less for a similar service, the store owner needs to tout the reasons why his/her store is worth spending the extra money.”

In this type of situation, the opinion of a neutral third party is invaluable, he says.

“Ask someone to visit your store, talk to the customers and provide feedback. Why would a customer pay more for your coin store? What are the perks of your store vs. the competition? This information can help an owner accurately illustrate the experience customers receive at his/her store.”

Click here for Part 1.
Click here for Part 2.

February 21, 2012

CHICAGO — Phil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March. The 5,000-square-foot attended store is equipped with new energy-efficient 60- and 80-pound washers that are much larger than those in competing stores and thus could command a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher quality product, we didn’t want to be perceived as the higher priced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors are at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

Should You Announce a Price Change?

How should a laundry owner approach the topic of pricing with his customers? Should he alert them prior to implementing a price change?

Kevin Hietpas, vice president of sales and marketing for Dexter, says he’s seen many owners have good luck increasing prices when they are up front with their customers. For example, if you’re planning to raise prices due to higher utility rates being charged by your municipality, post a couple of articles from the local newspaper about that topic. “Customers, as much as they may not like it, understand that kind of stuff,” he says.

“As consumers, we routinely respond to price increases with little or no advance notice from the stores or makers of the products we buy,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “Consumers in vended laundries are no different. Store owners and their staffs should be ready to carefully respond to customer questions about the higher costs. But the vast majority of the store owners that I’ve spoken to hear very little feedback when a modest price increase is enacted.”

He recommends raising prices on different types of machines at different times, instead of implementing a sweeping, storewide increase all at once. “This puts the owner in the position of continually assessing vend levels while customers aren’t shocked when costs go up.”

“The most important thing to address regarding a change in price is why,” says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry. “Customers need to understand why prices are fluctuating. Typically, price increases can be attributed to the cost of utilities. Store owners have to stay ahead of the cost of doing business, especially in the laundry industry that depends heavily on the use of utilities.”

“The owner ends up explaining it one way or another,” Hietpas says. “That’s why I think it’s better to address it on the front end with as many facts as possible rather than feel like they’re playing catch up by explaining it on the back end.”

Shifting Prices Too Frequently?

Vending technology has enabled owners to change prices on equipment easily—during slow hours or days, for example—but care should be taken to not change prices too often. This can turn off customers, Walters says.

“Yes, altering vend prices often is not a good practice for owners looking to be successful and grow their customer base,” he says. “If customers are unsure what price to expect on a regular basis, they will look for a store that’s more consistent.”

Consistent pricing makes things easier on your customers, Hietpas says.

“A lot of customers are very good at doing the basic math in comparing between (machine) sizes,” he says. “If (one machine is) twice the size of a machine, it should be roughly twice the vend price. A lot of owners like to have rational multiples between machines to make it easier for customers to make decisions about which machine they might want to use.”

Customers are more sensitive to how long it took and how much it cost to dry than they are to small changes in wash prices, Hietpas says. “It’s the last piece they interact with, so it just seems to stick in their memory a little more.”

Tomorrow: Your competitor has undercut you – now what?
Click here for Part 1.

February 16, 2012

CHICAGO — Phil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March. The 5,000-square-foot attended store is equipped with new energy-efficient 60- and 80-pound washers that are much larger than those in competing stores and thus could command a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher quality product, we didn’t want to be perceived as the higher priced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors are at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

Criteria for Setting Price?

Upon what criteria should a laundry owner base his or her wash and dry vend prices?

“It really comes down to two issues,” says Kevin Hietpas, vice president of sales and marketing for Dexter. “No. 1 is what’s happening to his costs. How have costs impacted the viability and profitability of his business? Owners should have a good sense of where their business is tracking from a performance standpoint.

“No. 2 is where is he competitively. None of us exist in a vacuum, so you want to understand, ‘I might want to get to a certain point, but as of right now the market won’t let me go there all at once.’ That’s a secondary concern, because I think if the owner is providing good value, it’ll be reflected in his costs. He’s not going overboard with what he’s charging, nor is he under pricing for his service.”

“We have a lot of ‘rules of thumb’ in this industry,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “When it comes to pricing, it’s typically recommended that gross monthly receipts from washer/dryer revenues should be at least four times the monthly rent and at least five times the monthly utility expenses.”

A store owner needs to be aware of and factor in the competition’s prices when determining his or her own washer and dryer pricing, says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry.

“The owner’s goal should be to produce the best experience for the customer from ambiance to equipment and services—and the costs associated with washing and drying play a large part in this equation,” Walters says.

How Do Your Front-Load Prices Compare?

American Coin-Op surveyed its e-mail subscribers about their November 2011 front-load vend prices — their lowest and highest, and whether the prices had changed since the previous November. Those polled were not asked to identify machine capacities.

Results from the anonymous, unscientific StatShot survey show the lowest and highest prices varied quite a bit among the four regions.

In the West, customers could get a front-load wash for as little as $1.50. The lowest-priced front-load washes ranged from $1.50 to $3.75. Nearly 88% of these prices were unchanged from November 2010. The remaining 12.5% of respondents had raised their lowest-price wash during the 12 months.

The price range for the most expensive front-load washes in the Western region was $2.75 to $7.89. Every respondent reported these prices were unchanged from a year earlier.

Low-end front-load prices in the South ranged from $1.75 to $4.25. Approximately 62% of respondents had kept the same low price since November 2010, and 31.6% had raised the price. Just 5.3% had lowered the price.

Southern customers faced the widest price range of all regions — $2 to $17.50. Nearly 58% of operators reported having raised their high-end price since November 2010, and the remainder were unchanged.

In the Northeast, the most inexpensive front-load prices were $1.50 to $5.50. Just 6.7% of operators had raised their prices in the previous 12 months, while the remainder had kept the prices unchanged.

When it came to the most expensive wash, Northeastern customers were paying $2.25 to $8 in November. Approximately 21% of respondents had raised this price compared to November 2010, while the remainder had stood pat.

The most inexpensive front-load prices in the Midwest ranged from $1 to $4.50. Just 5.9% of operators had raised their prices since November 2010, while another 5.9% had lowered them. The remainder had kept prices unchanged.

On the high side of front-load prices, Midwestern customers faced a range of $2.50 to $8.79 in November. Some 12% of respondents had increased prices, with the remainder keeping the status quo.

Tuesday: Should you announce a price change?

February 15, 2012

CHICAGO — It brings me great pain to witness landlords choking their tenants with escalating rents and offering no relief during these tough times.

I have witnessed more laundries close their doors in the past two years than I have in the past 22 years served in the coin laundry industry. Owners are faced with the potential of losing their businesses and, in many cases, their life savings because business is down and they cannot afford to pay their rent.

If you’re one of those owners, take this message as a call to action. Renegotiate your rent if you plan on surviving in this industry. Consult with your attorneys and get the help you need before it’s too late.

I’ve spoken with some landlords who are making rent concessions to avoid seeing their tenants close their doors and produce no rent at all. This is a good move—a win/win for everyone!

Of course, there are those landlords who will tell you “the lease is the lease.” Again, I suggest you get legal advice to provide the direction you need to protect you and your family.

Now is the time to buckle down and look for ways to cut your costs. Here are some suggestions for trimming the fat:

  • Lower the heat in the laundry during the winter months.
  • Make sure you are not wasting resources (water, gas or electricity). Working with an energy broker could save you a large percentage of what you might be paying.
  • Consider subletting space in your laundry to create more revenue.
  • Consider working additional hours to lower employee payroll.
  • Make sure you have energy-efficient washers, dryers and water heaters.
  • Consider acquiring refurbished or rebuilt machines when making replacement purchases.

Don't be one of the owners who will close their doors in 2012. Now is the time to take action to protect your Laundromat businesses.

February 7, 2012

PEMBROKE, Mass. — Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices. You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Let’s go over the choices one by one.

None

You will be able to tell stragglers that there’s no bathroom to save on toilet paper, but be real. Do you want your customers, who might spend an hour and a half to two hours on your premises, to have no place to go to the bathroom and wash their hands? Must they be required to ask the attendant to use the employee restroom? Even worse is forcing them to go home to use their own facilities. These options are not professional. Any restaurant that didn’t have a public restroom would soon be out of business. A Laundromat should avail its customers of this service on an up-front basis.

If your laundry is unattended, having a bathroom is a bit more problematic. Vandals might make the facility less than palatable. A compromise is to let customers use the employee bathroom when a staffer is there.

Dirty

You know the one—a filthy frosted-glass window covered with cracks, the stained linoleum floor curled and chipped at the edges, grungy toilet with a cracked top, dirty sink with permanent water stains and grimy shards of soap, rusty overhead pipes, wall surfaces that haven’t been cleaned in decades, and an empty paper towel rack above the overflowing wastebasket.

Many Laundromats have this sort of facility. It’s awful, but it’s a bathroom. To recount a line from The Odd Couple, fastidious Felix says to disheveled Oscar, “I’ve seen gas station toilets cleaner than your bedroom.” He could replace gas stations with Laundromats. The advantage here is that you can offer your customer a toilet without doing much work. You can check off the box, even though your customer might not appreciate the effort.

Clean

Here, we have relatively new fixtures, including the toilet, sink and vanity. The corner table is presentable, with contact paper carefully applied to the top. The place is cleaned every day, and the linoleum floor has been recently wet-mopped. The overhead lighting fixture casts a bright, full light. The vanity mirror is smudge-free. Maybe, there is a soap dispenser to minimize the mess. It’s pleasant, clean and up-to-date.

You are doing your job in providing a clean, presentable bathroom. Of course, you don’t want the privilege to be abused. The bathroom is intended for customers, and a sign on the door reads “For Customer Use Only.” If attended, you might require a key that can be obtained from the staffer.

If someone comes in and asks to use the restroom, you must have developed an approach to separate the customers from non-customers.

Ask if he or she is a customer. “Not today, but I use you occasionally.” Ask how often. Ask the person their name and consult a book entry (or pretend entry). If there is no entry (or you don’t recognize the person), say, “This isn’t a public bathroom, you know. If I let everyone off the street use my bathroom, it wouldn’t be fair to my customers.”

Depending on how the person reacts, decide if he or she can use the bathroom. You’ve established guidelines for usage. Next time, the individual will be less likely to stop in your place. At the same time, you’ve been polite enough to avoid offending a real customer. Have your staffers memorize the formatted approach, and you will not be bothered by excessive use.

Tomorrow: What is an interesting bathroom?

January 31, 2012

NAPERVILLE, Ill. — Most laundry companies use standard leases for the properties they serve, but most leases either don’t address or don’t properly address many important issues that can arise when dealing with customers, according to the law firm of Russel G. Winick & Associates, which specializes in laundry services law.

A properly written lease should protect a laundry company’s rights and offer strong leverage in all situations. Here, according to Winick & Associates, is a partial list of issues to be considered:

  • Renewal Clauses — Will they accomplish your goals? Are they clear, and presented properly?
  • Termination Notices — Is it clear when they must be served, and when they are effective?
  • Foreclosures — Are your leases drafted in ways that minimize the risk of foreclosure?
  • Breaches/Damages — Do your leases allow you to recover the maximum if they are breached?
  • New Ownership — Is it certain that they will be required to honor your leases?
  • Right of First Refusal — Do you have one? If so, will it really help you to retain locations?
  • Service Obligations — Are they feasible, and do they avoid creating a risk of termination?
  • Rehabilitation of Properties — Do your leases give you practical rights in this situation?
  • Holdovers — If the landlord lets you stay after your lease term expires, are your rights addressed?
  • Attorney’s Fees — An attorney’s fees clause can actually reduce legal costs, Winick & Associates says, by making lessors less likely to breach a lease, for fear of the consequences.

    Many customers will agree to a fully mutual attorney’s fees clause, such as, “In the event of any legal action arising out of this lease, the prevailing party shall be entitled to recover all costs incurred, including reasonable attorney’s fees, in addition to all other available relief.”
January 30, 2012

CHICAGO — Al Lautenslager is a Certified Guerrilla Marketing Coach who believes the No. 1 reason that customers leave a business is because the business in question doesn’t pay them enough attention.

Making efforts to reach customers and prospects was at the heart of his message at a Drycleaning & Laundry Institute-sponsored educational session during the last Clean Show.

Based on Lautenslager’s theory, you’re not just a self-service laundry owner, store manager or store attendant. “You’re all marketers of the business you’re associated with,” he says.

And so it is that he offered a series of suggestions from his book, what he called “a step-by-step blueprint for how to put one foot in front of the other, from a marketing standpoint.”

Develop a Guerrilla Marketing Mindset

“Every single day, whether I’m traveling on the road or working in my office, I think about this question: How am I building the awareness of my prospects and clients through the marketing that I’m doing?”

Before he goes about the work of each day, Lautenslager spends time doing three to five marketing-related things. It might be handwriting a thank-you note to a customer, brainstorming a tagline, or coming up with an idea for a new direct-mail campaign.

“You do that for three weeks and it becomes a habit, and a marketing habit is a great mindset to have in your business.”

Define Purpose for Marketing and Your Goals

“What specific activity do you want customers to take as a result of your marketing? Do you want them to call you on the telephone, visit your website, come into your place of business, enter a contest?”

Marketers define these as “calls to action.”

“Every single brochure, website, sign, sales pitch, on-hold message ought to have a call of action associated with it,” Lautenslager says. “Prospects need to be told what to do. Do not leave it to chance that they’ll know what to do as a result of your marketing.”

Identify Your Target Market

“Targeting is pretty much what you think it is. Who buys what? Where do they buy it? Why do they buy it?”

Whatever specifications you put around that target market, there exists a list for those specifications, and your list is your market, Lautenslager says. “Maybe you’re targeting a certain income level, a certain family size and a certain subdivision. There’s a list that exists for those specifications.”

Do a web search for “list broker” in your city to find companies that provide that kind of service.

Your best prospect to target is a current customer, and second best is a previous customer, Lautenslager advises.

Position Your Business

This refers to creating a “position” for your business in a customer’s mind. According to Lautenslager, Positioning authors Al Ries and Jack Trout say, “Positioning is not something you do with a product or service, it’s what you do in the mind of a prospect.”

“We want people to think of us if and when they need our products or service,” Lautenslager says.

In the Chicago area where Lautenslager lives, the freezing and breaking of water pipes during winter, especially in the middle of the night, is a real possibility. So how does Expert Plumbing position itself? By promoting the fact that “We never close.”

And don’t be afraid to promote your expertise in providing laundry and/or dry cleaning services.

“Everybody in this room is an expert in something. It’s OK to say that. Customers like to buy from experts. They trust experts. They have confidence in experts’ work. Go ahead and say that.”

Point Out Your Competitive Advantages and Benefits

Customers and prospects don’t care about you, Lautenslager says, they care about themselves and how your service will benefit them.

“So, you’d better be talking to them,” he advises. “That mean you’ve got to talk about benefits, not features. Write this down: features tell, benefits sell.”

They’re looking for benefits like convenience, time savings, organization, ease of access, immediacy, reduction of resources required, and reliability.

“At some point in time, make a list of the benefits you offer your customers and prospects. And then I suggest that you make a list of the benefits that your competition offers. If those two lists are identical, neither one of you have a competitive advantage.”

And if you don’t know what your benefits are, ask your customers. They’ll tell you.

Do Some Business Networking

“Everybody in this room, believe it or not, knows between 150 and 250 people each,” Lautenslager says.

On his website is a free report explaining how to instantly add 50 people to your network. These people include neighbors, your banker, your favorite bartender, your travel agent, etc. Lautenslager’s favorite on the list: the parents of your child’s sports teammates.

Plan for the networking events you will attend and set some goals (meet X number of people, receive X number of business cards, etc.).

“Arrive early and leave late,” Lautenslager says. “Some of the best networking happens before the meeting and after the event.”

Take Advantage of PR Opportunities

Editors love news but hate promotion, Lautenslager says, so connect your business with current events to increase relevancy.

“I suggest you do a press release every other month,” he says. “Establishing a relationship with an editor is just like establishing a relationship with a customer.

“Anytime you have a new product or service, win an award, have a new employee, new strategy, new location, editors deem that as news.”

In the end, whatever type of marketing you choose to pursue, launch what is comfortable for you and your business.

“When I say comfortable, I don’t mean just comfortable financially, I mean comfortable emotionally. You can’t do everything that I’ve talked about today. I can’t do everything I’ve talked about today. But you can pick one, two or three things you’re comfortable with and implement them.”

Click here for Part 1.