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May 20, 2013

BURNSVILLE, N.C. — Business specializes in repairing circuit boards for coin laundry industry

BURNSVILLE, N.C. — The Economic Development Commission (EDC) of Yancey County, N.C., recently presented Whitney and George Brasington with its 2013 Entrepreneur of the Year award. The Brasingtons own and operate Mountain Electronics, an electronics repair business that specializes in repairing circuit boards for the coin laundry industry.

The couple bought the business from a friend in 2005 after both had worked for Mountain Electronics for several years. Since then, the company has grown to 12 employees, expanded its team of skilled technicians and customer service representatives, and moved to a larger facility in the heart of North Carolina’s Blue Ridge Mountains.

“We attribute the success of our business to the support that we have received from the local community over the years,” says Whitney Brasington. For example, she has taken advantage of many classes offered through Mayland Community College’s Small Business Program, and the Brasingtons have found Mayland’s Electronics Program to be an invaluable resource for finding and hiring well-trained technicians.

“These technicians, along with our skilled office employees, have helped build Mountain Electronics into one of the country’s top commercial laundry repair centers – a niche we never knew existed 10 years ago!” says George Brasington.

May 1, 2013

LOS ANGELES — Equipment displays, parts specials, service classes and picnic lunches draw attendees

LOS ANGELES — Picnic sales/service school events hosted by PWS - The Laundry Co. at its facilities in Los Angeles, South San Francisco and San Diego on the weekend of April 5-6 drew hundreds of store owners who took advantage of equipment displays, parts specials, and service classes conducted by PWS and Alliance Laundry Systems personnel, the distributor reports.

Special sales events have been standard among California distributors during the fall, PWS says, but the marketing strategy is now being employed to entice customers in the springtime, too. Even so, laundry owners show no signs of growing weary of the gatherings.

“Maybe this attendance phenomenon is because there have been many new operators entering the business who have not had the time to become bored with shows and picnics, or maybe it can be attributed to the fact that the current population of laundry owners is taking a more professional approach toward running their business,” the distributor says.

PWS claims that more than $100,000 in parts were sold at the Los Angeles site during its event.

April 30, 2013

OSKHOSH, Wis. — Companies say they share customer-focused values

OSHKOSH, Wis. — Continental Girbau Inc. recently partnered with RJ Kool Co., a full-service laundry distributor headquartered in Kansas City, Mo. As a result, RJ Kool now provides Continental products to vended laundries throughout Eastern Missouri and Southern Illinois.

“We were looking for a top-level manufacturer that shared our same values and commitment to quality,” says RJ Kool’s Tiffanni Sanstra, marketing coordinator. “Continental products have filled some voids for us in the vended market. We are blown away with the quality of these products.”

Established in 1961, RJ Kool provides a full gamut of products and services tailored to the vended, on-premise, dry cleaning and industrial laundry markets. The customer-focused company offers large parts and service departments, as well as equipment rental and financing solutions.

Partnering with RJ Kool further strengthens Continental’s professional distributor network, according to Joel Jorgensen, Continental vice president.

“Without a doubt, RJ Kool is a top-tier distributorship sharing the same customer-focused values as Continental. They deliver much more than just product sales, they provide customers with real laundry solutions and support before and after the sale.”

April 29, 2013

OAKBROOK TERRACE, Ill. — More than 10 hours of educational sessions, networking opportunities and social events are planned

OAKBROOK TERRACE, Ill. — The Coin Laundry Association (CLA) has unveiled its final schedule of events—including educational sessions, networking opportunities and social receptions—for June’s Clean Show in New Orleans.

“The Clean Show is the best opportunity for professionals in the laundry industry to grow their business in 2013 and beyond,” explains Brain Wallace, CLA president/CEO. “The educational programming alone is more than worth the price of admission, but coupled with tremendous networking opportunities and incredible equipment exhibits – you simply cannot miss Clean 2013.”

EDUCATION

As one of the Clean Show sponsors, CLA will provide more than 10 hours of education geared toward making laundry owners more successful, and will cover an array of topics pertaining to the coin laundry industry, including:

  • Coin Laundry Trends for 2013
  • Internet Marketing Success Stories for Coin Laundries
  • Social Media: Which Tools Should Laundry Owners Embrace?
  • Best Practices for Wash Dry Fold and Commercial Accounts
  • Advanced Laundry Lease Analysis
  • The ABCs for Potential Laundry Owners
  • The Keys to Successful Multiple Store Management

NETWORKING/SOCIAL EVENT

To make sure the Clean Show is not all work and no play, CLA plans to host a hospitality reception on Thursday, June 20, and a CLA Mardi Gras Party the following evening. This year’s members-only party will feature Big Band entertainment, an open bar with Mardi Gras-themed cocktails, hors d’oeuvres, strolling entertainers and revelers, a Tarot card reader, caricature artist, and more.

Member pricing for this event is $65 per person. Visit the CLA website to learn more and to purchase tickets.

CLA’s Clean Show programming would not be possible without support from the following “signature sponsors”: American Dryer Corp., Alliance Laundry Systems, Continental Girbau, Dexter Laundry, Eastern Funding, EasyPay, ESD, Laundrylux, Maytag Commercial Laundry, and Setomatic Systems.

“We greatly appreciate the many distributors and manufacturers who continue to support the CLA’s mission of providing superior education and networking opportunities to today’s self-service laundry owners,” says Wallace.

To learn more about the Clean Show, which is expected to draw 10,000 trade attendees from all segments of the laundry and dry cleaning industry, visit the show’s website.

April 24, 2013

CHICAGO — Midwest leads way in March with 5.2% gain; Northeast’s 3.6% increase tops first-quarter performances

CHICAGO — Three of the four regions posted healthy gains in both March coin laundry sales and first-quarter sales, according to the recent AmericanCoinOp.com StatShot unscientific survey.

Leading the way in March was the Midwest, which posted a 5.2% gain compared to March 2012 and a 2.8% gain for the first quarter compared to one year earlier.

“[I’m] improving my store, keeping it clean and the equipment well-maintained,” says a store owner from the Midwest. “My competition is not doing this, and I’m benefitting.”

March sales were also up in the Northeast (3.8%) and West (3.0%) from the prior year. Both regions also saw gains in first-quarter sales—3.6% for the Northeast and 2.1% for the West—compared to January-March 2012.

Despite seeing an increase in recent sales, many store owners in the West report they are seeing little change in market conditions while the costs to operate their business increase.

“Conditions for my business are about the same as ever, but utilities and taxes are on the rise, so prices have to keep going up … to keep up,” says a store owner from the region.

“Market conditions are unchanged for the last three years,” echoes another. “People aren’t spending on anything that isn’t necessary.”

The South was the only region to report declining coin laundry sales, down 4.2% from March 2012 and 6.0% from first-quarter 2012. One store owner there attributes the lack of sales to local “tree farms going out of business.”

But while one industry has slowed coin laundry business there, another is contributing to a more positive outlook.

“After a very slow second half of 2012, and a terrible first quarter of 2013, things seem to be picking up,” says a respondent from the region. “Local construction has resumed, and as a result, so have drop-offs.”

AmericanCoinOp.com’s StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.

Audience members are invited to participate in these unscientific surveys, which are conducted anonymously online via a partner website, on a regular basis. Self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define industry trends.

April 22, 2013

BENTON HARBOR, Mich. — Recognized as 2013 Top 50 Best Corporate Citizen by CR magazine, and one of world’s Most Reputable Companies by Forbes magazine and Reputation Institute

BENTON HARBOR, Mich. — Whirlpool Corp., the parent company of Maytag Commercial Laundry, has been recognized as a 2013 Top 50 Best Corporate Citizen by CR magazine, and one of the world’s Most Reputable Companies by Forbes magazine and the Reputation Institute.

The company made the 100 Best Corporate Citizens list for the 11th consecutive year and the Most Reputable Companies list for the sixth straight year.

Considered the top corporate responsibility ranking based on publicly available information, CR magazine’s Best Corporate Citizens List ranks Whirlpool at No. 42. The company climbed 27 spots this year, with its highest scores coming in the corporate governance, environment, and climate change categories.

Whirlpool also ranked No. 43 on the Most Reputable Companies list with a score of 70.03 on the Reputation Institute’s RepTrack™ Pulse, the world’s largest study of corporate reputation.

“Whirlpool Corp. has long been known for its unique sense of responsibility in the way it operates,” says Jeff M. Fettig, chairman and CEO. “Being once again recognized by some of the most respected organizations in the world for this commitment speaks to the dedication of our employees and the work they do. We are proud of these achievements and will strive to continue conducting our business with integrity and purpose.”

April 17, 2013

ATLANTA — Locating exhibitors, planning personalized itinerary, connecting via social media among its features

ATLANTA — The Clean Show has released a new, free mobile app for Apple iOS- and Android-based smartphones that offers features such as locating exhibitors, planning a personalized show itinerary, and connecting with others via social media.

The free app can be downloaded from an individual’s device in the App Store or Market.

The June 20-22 event is expected to draw an estimated 10,000 laundry and dry cleaning industry attendees to New Orleans.

“In the age of technology, offering a smartphone app just makes sense,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “We want our attendees and exhibitors to be able to stay connected before, during, and after the show and be able to do it while on the go.”

The app designed by event marketing and software company a2z Inc. is fully integrated with the Clean Show website, and with LinkedIn and Twitter.

Attendees who do not have a smartphone can still maximize their time at Clean 2013 by using the show website’s “My Itinerary” feature. Visitors can store in a personalized “Briefcase” their schedule of educational sessions and booths they wish to visit, as well as print out their “Itinerary” to bring with them.

Formally the World Educational Congress for Laundering and Drycleaning, the Clean Show is sponsored jointly by five national industry associations.

April 16, 2013

RALEIGH, N.C. — David Makepeace creates inviting store built on friendly staff, sophisticated equipment, colorful décor

RALEIGH, N.C. — The yellows, blues, greens and shades of red at Calvary Laundromat in Raleigh are decorator-designed to create an inviting atmosphere, says owner David Makepeace.

“It’s very vibrant,” says Makepeace, and makes customers feel more energetic. “It’s not depressing beige or white walls.”

But the intangible atmosphere, the one that customers find welcoming, is created by his staff, he says. Or, as one teen folding clothes with her mother put it recently, her family comes because “We know people here.”

“The people here” are full-time attendant Lizeth Brito and three members of a family that share work hours: mother Valentina Hernandez and daughters Oneyda Blanchard and Mirian Martinez. All are bilingual and can converse with Hispanic customers who make up a large part of the customer base.

“Valentina and I have worked together forever,” says Makepeace, 47. They are both veterans of the large, multi-site Medlin-Davis Cleaners operation in Raleigh, and he turned to her when he started Calvary four years ago.

Did she know of anyone who could help him? he recalls asking. “She said, ‘Yes, me.’”

Makepeace says he’s “extremely” happy with sales at the 3,000-square-foot laundry, located in a small shopping center in the midst of large apartment complexes. “The success of it depends on the people you hire,” he says. “I have wonderful attendants.”

He names several other contributing factors, including the technological sophistication of its 30 front loaders and 28 dryers. (They include one 80-pound washer, charging $7.75; three 60-pound, $6; six 40-pound, $4; five 30-pound, $3.75, and 15 20-pound, $2.50. Every dryer—two 75-pound models, 24 45-pound, and two 35-pound—runs six minutes for 25 cents.)

They all accept Presidential dollar coins, which Makepeace says are so popular among customers as a novelty that they keep them instead of using them. “I have to replace them all the time.”

The advantage of dollar coins, he says, is the flexibility they provide customers using the coin changer. Without it, anybody putting a large bill in the changer “would have to use two hands” to hold the resulting quarters, he says. “It’s much more manageable.”

Charlotte’s T & L Equipment Sales, which provided the equipment, programmed all the washers so that the seventh wash is free. That’s been a big hit and a factor in keeping customers coming back, Makepeace says. “The first thing they do is go look at all the machines and see if any of them are free.”

Another plus is the bright color scheme, he says. A decorator friend of Lee Makepeace, David’s wife and business partner, chose the overall design. “We started with the floor (multi-colored tile) and worked our way up the (yellow) walls,” David Makepeace says.

Lee and her dad, Riley Pleasant of Raleigh, painted squares within squares in contrasting colors to break up the long expanse. Even a neighbor contributed to the décor, bringing forth a large piece of art. Purchased at a yard sale for $15, it echoes the colors in the laundry and hangs over the entrance desk.

In the front of the store, a kids’ corner offers lots of windows, a wall-mounted TV showing cartoons, and walls that, for a few feet up, are actually blackboards. Children are encouraged to dig into a bucket of chalk and draw on them.

Makepeace noticed similar blackboard walls for children in a jewelry store and thought it was a clever idea.

“Parents are focused on sorting the clothes and getting them in the washers. If we can distract the kids for at least 15 minutes, the parents will appreciate that,” he thought.

For the adults, there are two large-screen TVs and free Wi-Fi.

Believing firmly that hands-on ownership makes for success, he visits the store three times a week, as well as other times when he’s called upon to repair equipment.

When he and his wife were planning the store, he personally canvassed the apartment communities near the site, which is on a connector road between two major traffic arteries. He discovered that most residents are Hispanic families.

He returned to personally put flyers for the new laundry under windshields at the apartments. He also mailed 1,500.

Check back Thursday for the conclusion!

April 15, 2013

BOSTON — Multi-store owner accused of tampering with gas meters, failing to file income tax returns

BOSTON — The former owner of several Massachusetts Laundromats has been indicted in connection with allegedly tampering with gas meters and stealing natural gas valued at approximately $214,000, Attorney General Martha Coakley’s Office announced Thursday.

A statewide grand jury indicted Steven R. Bankert, 56, of North Attleboro, Mass., on charges of larceny over $250 (six counts), willful injury or interference with gas meter or other property (10 counts), and failure to file income tax returns (six counts).

“We allege that this defendant tampered with multiple gas meters at Laundromats he operated,” Coakley says. “He allegedly manipulated the meters in order to bilk utility companies out of hundreds of thousands of dollars.”

Her office began investigating Bankert in August 2011 after Columbia Gas filed a complaint. The company suspected tampering and theft of gas after detecting low and erratic consumption patterns.

The investigation determined that from 2008 to 2012, Bankert, who is a licensed electrician, allegedly tampered with 10 gas meters at six Laundromats he owned in Attleboro, Brockton, Lawrence and Worcester for the purpose of stealing gas from Columbia Gas valued at approximately $205,000 and from Nstar valued at more than $9,000.

Investigators also allege that Bankert has not filed income tax returns for the years 2006 to 2011.

He is scheduled to be arraigned at a later date.

April 10, 2013

CHICAGO — How do you think your self-service laundry business compared to others in the industry last year? Did you have a good year or a bad year in 2012? How does your pricing compare to others?

CHICAGO — How do you think your self-service laundry business compared to others in the industry last year? Did you have a good year or a bad year in 2012? How does your pricing compare to 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 2012/2013 business conditions, pricing, equipment, common problems, turns per day, and utilities cost.

In instances where respondents were asked about 2012 business results, they were given the opportunity to state their results were up, down or unchanged. This is a departure from surveys compiled in 2011 and earlier, when they were asked only if their business results were up or down. Keep this in mind as you are making comparisons to previous years’ polls.

The survey is an unscientific electronic poll of American Coin-Op readers who operate stores. Some percentages may not equal 100% due to rounding.

ADDING EQUIPMENT IN 2012

Approximately 48% of respondents purchased at least one piece of equipment (washer, dryer, water heater, vender or changer) in 2012. In 2011, that figure was approximately 45%.

Here’s a breakdown of 2012 purchases:

  • 12.7% of respondents purchased at least one top loader. The average purchase was 5.4 machines. In last year’s survey, when a single operator’s reported purchase of 97 machines was excluded from the calculations, the average purchase was 9.1 machines.
  • 26.3% of respondents purchased at least one front loader (a breakdown by capacity follows below).
  • 16.9% of respondents purchased at least one dryer (regular or stacked). The average purchase was 7.4 machines. In last year’s survey, when a single operator’s reported purchase of 97 machines was excluded from the calculations, the average purchase was 5.1 machines.

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

  • 16.1% of buyers purchased at least one machine with a capacity up to 25 pounds. The average purchase was 6.0 machines.
  • 29% of buyers purchased at least one machine with a capacity of 25 to 50 pounds. The average purchase was 4.8 machines.
  • 35.5% of buyers purchased at least one machine with a capacity of more than 50 pounds. The average purchase was 2.6 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 equipment categories.)

SHOPPING IN 2013

Respondents were asked if they have bought, or plan on buying, any new machinery this year. Approximately 36%—the same percentage from last year’s survey—intend to add something (washer, dryer, water heater, vender or changer) to their mix, or have already done so.

  • 8.5% of respondents have purchased, or plan to purchase, a new top loader this year. The average purchase is (or will be) 8.8 machines.
  • 22.9% of respondents have purchased or plan to purchase a new front loader this year. (A breakdown by capacity follows below.)
  • 12.7% of respondents have purchased or plan to purchase a new dryer this year.

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

  • 29.6% purchased or plan to purchase at least one machine with a capacity up to 25 pounds. The average purchase is 10.8 machines.
  • 29.6% purchased or plan to purchase at least one machine with a capacity of 25 to 50 pounds. The average purchase is 4.9 machines.
  • 25.9% purchased or plan to purchase at least one machine with a capacity of more than 50 pounds. The average purchase is 2.0 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 equipment categories.)

PROBLEM AREAS

What problems cause you the most grief? Here are the top-five industry problems, according to this year’s survey:

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

Gone from the top five is the economy, although it was mentioned on a number of surveys.

TURNS PER DAY

Turns per day refers to the number of cycles (turns) that each of a store’s machines experiences each day. You can calculate that figure using total top-loader cycles for a one-week period divided by the total number of top loaders, then dividing that number by seven.

According to this year’s survey, the average turns per day for top loaders are 3.1, up slightly from last year (3.0). The average turns per day for a front loader is 4.0, also up from last year (3.8).

UTILITIES COST

We asked operators about their utilities cost (as a percentage of gross). The responses ranged from 6% to 75%. The most common response was 25% or 30% (tie). At the time of our survey in February, operators were paying an average of 24.1% for utilities (as a percentage of gross). That number is identical to last year’s poll.

Nearly half of respondents (47%) say utilities is the largest of their store’s expenses. The smallest of their expenses, according to 56.9%, is insurance.

2013 BUSINESS FORECAST

Slightly more than 46% of respondents expect their 2013 business to be better than it was in 2012. Approximately 38% expect business to be about the same this year, and 16.2% expect their business to not perform as well this year as it did in 2012.

April 9, 2013

CHICAGO — Majority of respondents see exhibits, education, networking plus other aspects as biggest factor in attending

CHICAGO — Just shy of one-third of those responding to this month’s American Coin-Op Wire survey say they are planning to attend Clean ’13 in New Orleans, while another 14.3% are unsure at this point.

Approximately 54% of those responding to the unscientific survey say they will not be attending the biennial event slated for June 20-22 at the Morial Convention Center.

Asked about the biggest factor in favor of attending (whether they were personally planning to attend or not), 32.1% of respondents named “Exhibits of equipment and supplies.” Roughly 14% listed “Combining business and pleasure” as the chief factor, while 7.1% look to Clean primarily for its “networking and socializing” opportunities. Just 3.6% of respondents see “educational sessions” as the main factor in attending. The top response, however, is “It’s all of the above,” with 42.9%.

The Clean Show has been shortened from four days to three this year, which is OK with 78.6% of respondents. Just 7.1% “don’t care for this change”—“Include Saturday and Sunday in the schedule (and) make it four days if necessary,” says one operator—and the remaining 14.3% are “indifferent.”

Among operators who do not plan to attend this year’s event, 52.4% “Can’t afford the cost,” 28.6% “Can’t spare the time,” and 4.8% have “made other plans.” The remaining 14.3% have “other” reasons, some of which include disliking the host city, having no expansion plans this year, and working two jobs besides running his/her laundry.

Among the eight educational sessions being sponsored by the Coin Laundry Association (CLA) throughout the event, Coin Laundry Trends for 2013 is garnering the most pre-show interest among respondents, at 29.6%. Other popular topics are The Keys to Successful Multiple Store Management (18.5%), Ask the Laundry Experts (18.5%) and Best Practices for Wash, Dry, Fold and Commercial Accounts (14.8%).

While American Coin-Op’s Wire survey presents a snapshot of the audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate in an industry survey each month. The survey is conducted online via a partner website, and is developed so it can be completed in less than 10 minutes.

The entire American Coin-Op audience is encouraged to participate, as a greater number of responses will help to better define owner/operator opinions and industry trends.

April 1, 2013

KENNER, La. — Coin Laundry Association to host free public meeting Thursday on potentially costly issue

KENNER, La. — Louisiana Gov. Bobby Jindal’s tax reform proposal includes a broadening of the state’s sales tax base, including eliminating the exemption for self-service laundry, and the Coin Laundry Association (CLA) will be hosting a free public meeting here later this week to bring Louisiana laundry owners up to speed on this critical issue.

Like most states, Louisiana currently exempts coin laundries from collecting sales tax, CLA says. Gov. Jindal’s budget proposal centers around broadening the sales tax base to include scores of industries and services that are presently exempt (while raising the base rate from 4.0% to 5.88%).

The end result could mean that all Louisiana laundry owners would remit more than 5.88% of gross sales to the state each year going forward without being able to directly collect this tax from customers on a daily basis, CLA says. The association estimates it could cost the average laundry owner at least $5,000 to $10,000 per store annually.

The proposal is expected to be included in bills to be considered by the Louisiana legislature when its session begins next Monday.

The CLA will host the luncheon meeting beginning at 11 a.m. Thursday at the Hilton New Orleans Airport. There is no cost to attend the event, but the CLA is requesting attendees to RSVP by calling 800-570-5629 or to e-mail.

March 28, 2013

FALL RIVER, Mass. — Honor recognizing outstanding performance pays tribute to longtime owner

FALL RIVER, Mass. — As American Dryer Corp. (ADC) markets a new company vision and direction for the future, it is also showing pride in its past by paying tribute to longtime owner Martin Slutsky.

ADC has newly established an award named for Slutsky to honor the top ADC distributor that demonstrates the philosophies upon which the company was built. It will recognize “remarkable achievements, dedication and unmatched success,” ADC says.

Slutsky launched ADC from the ground up in 1965. His most renowned accomplishment was inventing the 30-pound stack dryer to help coin laundries double drying capabilities, increase sales and save space.

The award will be presented to the distributor whose partnership is most admired, and with business practices that exceed customer expectations. The winner will be announced during the Clean Show in June.

“We look for a recipient that holds the same rapport and ingenuity that aligns with our company’s principles and standards,” says President/CEO Joe Bazzinotti.

March 27, 2013

CHICAGO — Midwest only region to post better month-to-month sales

CHICAGO — Coin laundry sales were down overall in three of the four regions in February, according to the most recent AmericanCoinOp.com StatShot unscientific survey, but drop-off sales were up in three of four.

The Midwest posted the only overall sales gain—1.1%—when compared to February 2012. Month-to-month sales were down in the South (1.9%), West (2.2%) and Northeast (5.1%).

“Bad weather really hurt, as we had some weekends that people could not get out,” says a store owner from the Midwest.

Survey takers were asked to use one word to describe the market conditions in their area. Some of the responses included “better,” “decent,” “rising,” “deplorable,” “weak” and “slow.”

Respondents were also asked about drop-off-service sales for February (compared to February 2012).

In the West, where 57.1% of respondents have offered drop-off service for two years or more, sales were up 8.4%. The remaining 42.9% haven’t offered this service in the past two years.

Northeastern operators saw their drop-off sales rise 5.0% in February from the previous year. There, 88% of the respondents have offered this extra-profit service for at least two years.

Drop-off sales were nearly flat in the Midwest (up 0.1%), where 57.1% of respondents have offered this service for two years or more. Roughly 14% offered drop-off last year but are not this year, and the remaining 28.6% haven’t offered drop-off service in the past two years.

In the South, the only region to see a dip in month-to-month drop-off sales (down 0.4% from February 2012), 80% of respondents have offered the extra service for two years or more. Ten percent didn’t offer drop-off last year but do now, and 10% haven’t offered it in the past two years.

AmericanCoinOp.com’s StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.

Audience members are invited to participate in these unscientific surveys, which are conducted anonymously online via a partner website, on a regular basis. Self-service laundry operators are encouraged to participate, as a greater number of responses will help to better define industry trends.

March 26, 2013

ADDISON, Ill. — Distributor highlights opportunities to upsell without putting pressure on your customers

ADDISON, Ill. — Super-size it. Would you like peppers? Would you like to add cheese?

This is a common concept adopted by restaurants nationwide. Although the phrasing may differ, “upselling” is a familiar concept to American consumers. Most restaurants offer a good product without the extras, but eateries and other businesses have found that consumers like being given the option to make their own choices about the type of product or service they want. This in no way means the original product or service is inadequate without the add-ons.

What does this mean for our industry? Let’s take a look.

Although there have been many Laundromat innovations in recent years, the two most valuable, in my opinion, were:

  1. The ability to offer additional service options on vended washers and dryers.
  2. The ability to offer an alternative payment method such as card systems and its effect on the industry.

I would like to focus on these and explain how they tie together.

UPSELLING IN THE LAUNDROMAT

Several years ago, washer manufacturers introduced the ability to offer additional services to customers for additional vend price. Long before that, they offered the ability to sell hot and cold washes for a different cost. Competitors that did not have these sophisticated machines kept their prices low, ultimately reversing customers’ perceptions of the new pricing structure. Today, we have the ability to offer a quality wash, and customers who feel they will benefit from an extra wash or extra rinse will pay more for what they perceive is a superior wash result. This is upselling with no pressure on the customer to pay more money unless he or she chooses to add services.

This is a powerful tool to increase volume. For many years, we in the industry have been trying to figure out how to increase our revenue by giving customers choices they want, which increases revenue without the perception of increased pricing. I will show what this means in dollars and cents when we talk about the card systems.

Most manufacturers have an ability to offer these options, but each does it in a slightly different way. Additional service options have to be made easy to understand and easy to use, but this doesn’t mean you provide less service and make it up in add-ons. We have to learn from industries that are successful in marketing upselling options. We need to offer good results at a fair price, plus the ability to let our customers decide if they want to spend more. It’s their choice.

CYCLE OPTIONS + CARD SYSTEMS = MORE REVENUE

Another way to add choices into the Laundromat is by utilizing a card system. These systems, which began as an alternative to accepting coins, have been available for many years. They have come a long way. Card systems are used today by owners who want to operate their businesses with all the advantages that most retail businesses offer. I’m going to touch on a few of these advantages, but this is really just a small representation of the benefits of managing a card-operated laundry.

First, card systems build loyalty. Once a customer uses a card and leaves a balance on it, they will more often than not come back to your Laundromat. The ability to accept credit cards and to use penny incremental pricing helps keep your vend prices in line with your utility costs. There are a variety of marketing programs available to help increase your volume. Coupon programs give laundry owners the ability to offer rewards directly to the customer without an attendant and without fear of coupon fraud.

Card systems can also provide the ability to account for revenue and employee hours. Reports are available that reflect business revenue totals, individual usage, customer information, income by the hour, equipment usage, and average money spent per visit. This is just a small sample of the information that is available.

I have been able to gather reporting to solidify the value of the extra-wash and extra-rinse options. My family owns and operates three laundries with equipment that has these add-ons available. The stores are located in different geographic areas and have differing ethnic demographics. A report from one of our stores shows equipment usage over a five-month period.

The numbers focus on extra-wash/extra-rinse usage and what it means in terms of additional revenue.

  • The 80-pound washers processed 4,112 loads, of which 1,498—or about 36% of the total number of loads—used an “extra” button. At a 50-cent upcharge per load, an additional $749 was collected from the six machines.
  • The 30-pound washers processed 13,180 loads, of which 2,908—or about 22% of the total number of loads—used an “extra” button. At a 35-cent upcharge per load, an additional $1,017 was collected from the 16 washers.
  • The 40-pound washers processed 10,999 loads, of which 2,859—or about 25% of the total number of loads—used an “extra” button. At a 40-cent upcharge per load, an additional $1,143 was collected from the 14 machines.
  • The 20-pound washers processed 11,877 loads, of which 2,662—or about 22% of the total number of loads—used an “extra” button. At a 30-cent upcharge per load, an additional $798 was collected from the 12 washers.

That adds up to $3,707 in additional revenue for this store in five months. Extrapolate that to a year and the added revenue comes to $8,899. The numbers speak for themselves, and that’s on top of the normal vend prices! Keep in mind that these were customer choices; they made them of their own free will. That’s upselling.

In my experience, that kind of additional revenue (80%) goes to the bottom line. Without a card system, our stores would not have the tools to properly evaluate those numbers and help make any future equipment purchases.

Talk to your distributor about the options that are available. Evaluate this information to see if these innovations will work within your budget. In today’s business climate, any advantage that will help a business grow must be seriously considered.

I have heard many excuses for not moving forward with new innovations. The list would be so long, it would take another article to cover them all. The reality is, without these advantages, your business may struggle. Your choice.

March 25, 2013

ATLANTA — Drumming performance on family washer has amassed nearly 1.8 million views on YouTube

ATLANTA — If all of the exhibits and educational sessions aren’t enough to draw you to New Orleans for the Clean Show this summer, how about an Internet sensation?

The show’s management announced Friday that 11-year old Jonathan Carollo, whose drumming performance on a washing machine went viral, will be performing at the June 20-22 event in New Orleans.

First posted to YouTube last September, Carollo’s Whirled Beat video has amassed nearly 1.8 million views and has been featured on The Today Show, Good Morning America, USA Today and The Huffington Post.

Carollo’s father, Dan, posted the video for family and friends on Facebook but then uploaded it to YouTube after several people encouraged him to share his son’s talent with the world.

The boy routinely drums on objects around his family’s Washington state home and decided that the top loader, with its large steel drum, was the perfect-sounding instrument when he grew bored playing his drum kit.

“We are extremely delighted to have such a talented person play at the show … especially when it’s on an appliance that most of our exhibitors and attendees work with on a daily basis,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “It certainly will give them a new way to look at their washing machines.”  

March 19, 2013

WASHINGTON — March 17-23 is National Poison Prevention Week

WASHINGTON — As single-load liquid laundry packets become more familiar to U.S. consumers, the American Cleaning Institute (ACI) reminds the public about safe use of these products. The concentrated detergent in these packets can be harmful if swallowed or exposed to eyes.

“Laundry packets are different and need to be handled differently,” says Nancy Bock, ACI senior vice president of education. “While these products are convenient and easy for consumers to use, it’s vital for parents and caregivers to use and store these products safety and securely.”

She offers these safety reminders regarding single-load liquid laundry packets:

  • Do not puncture or pull packets apart
  • Store out of child’s sight and reach; do not let a child handle laundry packets
  • Keep the container closed and dry
  • Packets dissolve quickly upon contact with water, wet hands, or saliva
  • Packets can rupture, releasing contents into eyes

These safety reminders coincide with National Poison Prevention Week (March 17-23). Coin laundry owners and operators can assist by reminding patrons about the safe use and storage of these products.

“It is possible to prevent accidents involving these products and prevent a trip to the doctor’s office or emergency room,” says Bock, who serves as vice chair of the National Poison Prevention Week Council.

It’s recommended to keep the toll-free number handy for the local Poison Control Center: 800-222-1222.

March 18, 2013

SULPHUR SPRINGS, Fla. — Joined Common Ground Christian Church at Tampa’s Big Wash Coin Laundry for volunteer program

SULPHUR SPRINGS, Fla. — Student missionaries from The University of Iowa donated their time to Current of Tampa Bay, Inc. over the weekend in support of the Laundry Project, a volunteer program. They, along with Common Ground Christian Church of Seminole Heights, Fla., gathered Sunday at Big Wash Coin Laundry, Tampa, to wash the clothes of those less fortunate.

It was the first time Current partnered with University of Iowa students, but the second time the organization has joined with Common Ground Christian Church to host a Laundry Project in the Tampa area.

“We are very excited to introduce University of Iowa students to the Laundry Project,” says Jason Sowell, Current’s founder and president. “It is wonderful to partner again with Common Ground, as they are a great group of compassionate people. Sulphur Springs is a special location for Laundry Projects to continue to thrive because it is the very place that the project was originated in. It is always a blessing to help families in that community.”

University of Iowa students chose Tampa as their city of service during a spring-break mission trip. Current’s Laundry Project has seen an influx of volunteers in the last few years. Last year, it offered free laundry services at one Laundromat; this year, due to an outpouring of support, it has expanded to four neighboring locations.

More information about the Laundry Project is available at its website.

March 11, 2013

WASHINGTON — Learn some low-cost, efficient steps to make sure your business, customers and employees are safe in months to come

WASHINGTON — Winter snows are sometimes followed by floods. Severe storms—sometimes in the form of deadly tornadoes or massive rainfall—can wreak havoc across the United States during spring.

There are many low-cost, efficient steps that a coin laundry owner can take now to make sure their business, customers and employees are safe in the months to come. At 2 p.m. EDT Tuesday, the U.S. Small Business Administration and Agility Recovery will present a free webinar on best practices for mitigating spring weather risks, based on real-life recovery experiences from business owners.

Space is limited, and interested parties can register here.

Additionally, the SBA has partnered with Agility to offer business continuity strategies through its “PrepareMyBusiness” website. Visit preparemybusiness.org to access previous webinars and for additional preparedness tips.

March 7, 2013

NEW YORK — Expedites process by removing much of preliminary dialogue between new customers and company reps

NEW YORK — Eastern Funding LLC reports that it has launched a new, easy-to-use online credit application on its main website. The business financing company has a special focus on the coin laundry, convenience store, and specialty vehicle industries.

Along with new graphics and recent updates to the company’s website, online visitors will find the streamlined credit-application process that Eastern Funding management says “can expedite the credit approval process by removing much of the preliminary dialogue between new customers and Eastern Funding representatives.”

“We have a consistent commitment to deliver the best possible customer experience,” says Michael Fanger, Eastern Funding’s founder and president. “When someone first arrives at the Eastern Funding website...our enhanced credit app technology will make the whole process of submitting information and applying for financing much smoother and easier to use.”

Operating as a direct lender, Eastern Funding provides leases and loans with both fixed and floating rates. The company reports it has provided more than $700 million in laundry business financing since its inception in 1997.

March 6, 2013

FALL RIVER, Mass. — Blueprints for new marketing plan focus heavily on digital platforms, social media channels, and advanced SEO tactics

FALL RIVER, Mass. — American Dryer Corp. (ADC), which has manufactured products for commercial coin-operated, on-premise and industrial laundry markets for more than 50 years, is undergoing a complete remodel of its marketing campaigns, the company reports.

The blueprints for the new marketing plan focus heavily on digital platforms, social media channels, and advanced SEO (search engine optimization) tactics.

“We want customers to easily connect with ADC by giving the brand a definite voice,” says CEO Joe Bazzinotti. “Maximizing the value of ADC is priority. We want our marketing to be just as advanced and well-engineered as the products we continue to provide for more than half a century.”

The new face of ADC will include a total revival of all messages via sales and marketing collateral, distributor portfolios, newsletters, blogs, and web and print advertisements.

Not only is ADC launching a new message and new perspective, the company reports it is yielding excellent product discovery and development. EcoWash washer-extractors entered the market in 2012 as ADC’s newest addition and first line of commercial washers.

ADC has been working on a long-term strategy to separate the sales and marketing divisions. With this shift, Stacey Hodges, vice president of employee and customer relations, has assumed responsibility for the marketing division while continuing in her other roles. Senior Vice President of Global Sales Tony Regan continues to oversee the ADC sales team.

To further strengthen its marketing efforts, ADC recently named Andrea Ferreira marketing director. Also, a graphic designer has been added to optimize product marketing.

“Bringing in new talent will help form new perspective and creative ideas to move ADC to the next level” says Bazzinotti. “In the coming months, consumers will notice a total redesign of ADC’s website, including content, layout, streamlined navigation and functionality.”

March 5, 2013

MILWAUKEE — One of eight companies honored out of 58 nominated in statewide awards program

MILWAUKEE — Alliance Laundry Systems, manufacturers of commercial laundry equipment under the Huebsch, IPSO and Speed Queen brands, last week received a special award for “Market Leadership” as part of the Wisconsin Manufacturer of the Year program recognizing outstanding achievements in manufacturing in 2012.

Alliance was one of eight companies honored out of 58 nominated in the statewide awards program, now in its 25th year. Bruce Rounds, chief financial officer, and Jay McDonald, vice president of business development, accepted the award for Alliance during a black-tie ceremony at the Pfister Hotel.

“Alliance’s story started more than 100 years ago when two Ripon hardware store owners figured out how to mechanize hand-powered washing machines,” notes Alliance CEO and President Mike Schoeb. “Now, we are the largest manufacturer of commercial laundry equipment in the world. Our continued success is driven by that same spirit of innovation, the dedication and work ethic we find in the local labor force, our world-class distribution network, and the competitive advantages and positive business climate of Wisconsin.”

In addition to the “Market Leadership” award, the Wisconsin Manufacturer of the Year program handed out four grand awards to companies categorized by the number of employees – small, medium, large and mega. Alliance, nominated for the first time in 2012, competed in but did not win the Mega category.

Nominees were judged in such areas as financial growth or consistency, technological advances, product development, environmental solutions and sustainability, operational excellence/continuous improvement, commitment to employees, and effective research and development.

The awards program is co-sponsored by Baker Tilly, one of America’s largest accounting and advisory firms; Michael Best & Friedrich LLP, a leading Midwest-based law firm; and Wisconsin Manufacturers & Commerce, Wisconsin’s largest business association.

February 27, 2013

CHICAGO — Three of four regions—championed by West’s 9.8% boost—report increased sales for January

CHICAGO — Three of the four regions reported sales increases for January, championed by the West’s 9.8% boost, according to results of the latest AmericanCoinOp.com StatShot survey.

The South enjoyed the next largest upswing at 4.2%, followed closely by the Northeast at 3.3%. The Midwest was the only region to see a drop in vended laundry sales, a 3.0% decline.

The 2012 numbers were all improved when compared to 2011 results. Here, the West once again led the pack with a 9.6% year-to-year sales increase, followed closely by the South at 8.1%. Annual sales were up 3.4% in the Northeast and 2.2% in the Midwest in comparison to 2011 figures.

While the overall sales results were mostly positive, respondents’ anonymous comments about their local market conditions were more varied:

  • South: “Much less promising. Business was booming last year until election time, then bombed.”
  • Midwest: “Increased traffic at one store, decreased traffic at second store seven miles apart. New stores opened near second store.”
  • Northeast: “Not anywhere near 2012 numbers.”
  • West: “A poor climate for my customer base means better profit margins for me as they cannot afford to repair/replace their machines as they go down.”
  • Midwest: “Customers [are] overloading and damaging washers to try to save money.”
  • Northeast: “Competitive, with fewer rooftops in my area.”

The StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.

Audience members are invited to participate in these unscientific surveys, which are conducted online via a partner website. Self-service laundry operators are encouraged to participate, as a greater number of responses will help to better define industry trends.

February 21, 2013

CHICAGO — Annual report to summarize business results, equipment and operational pricing, and more

CHICAGO — American Coin-Op is surveying current owners and operators of vended laundries this month to gather important data it will use in developing its 2012-2013 State of the Industry report, to be released in April.

The annual survey—which laundry owners can take anonymously via a partner website—poses a series of questions about business results, equipment pricing, operational pricing and more.

All self-service laundry owners and operators are encouraged to complete the survey, as a greater number of responses will help to better define industry trends and meaningful benchmarks. Individual respondents are not identified in the unscientific survey.

The survey will close on March 1. For more information, contact Bruce Beggs, American Coin-Op editorial director, at bbeggs@americantrademagazines.com.