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May 17, 2012

INWOOD, N.Y. — Authorized distributor for brands’ coin and OPL equipment

INWOOD, N.Y. — Great Lakes Commercial Sales, based in Wisconsin, is now an authorized Electrolux and Wascomat distributor for coin and on-premise laundry equipment, Laundrylux has announced.

Great Lakes Commercial Sales is a full-service company providing commercial and on-premise laundry equipment sales, service and parts to coin/self-service laundries, apartment complexes, and on-premise laundry facilities. The company also has offices in Michigan, Ohio, Indiana and Illinois.

“We are pleased to welcome Dan Naumann and the Great Lakes team to the Electrolux and Wascomat distributor network,” says Laundrylux President Howard Herman. “After 20 years in the business, industry leader Great Lakes is a super addition to our family. Everyone at Laundrylux is looking forward to working with Great Lakes to further expand the business and our relationship.”

“I’ve worked with Dan Naumann and the Great Lakes team for many years now,” adds Bryan Rausch, regional business manager for Laundrylux. “Great Lakes is a professional company with an established market presence and reputation for excellent customer service. We look forward to a long and mutually rewarding relationship.”

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 4, 2012

RIPON, Wis. — The award was presented based on year-over-year increase in overall sales, professionalism, ongoing training and other customer-support criteria

RIPON, Wis. — Gulf States Laundry Machinery, headquartered in Houston, was recently named the 2011 Huebsch Distributor of the Year. The award was presented based on year-over-year increase in overall sales, professionalism, ongoing training and other customer-support criteria.

“Our manufacturing facility can deliver machines, but it’s distributors like Gulf States that make our products stand out to customers,” says Gary Dixon, national sales manager for Huebsch. “We appreciate the hard work of everyone at Gulf States and look forward to a long partnership with them.”

Founded in 1984, Gulf States is recognized as one of the nation’s premier drycleaning equipment distributors, Huebsch says. The company began offering coin and on-premise laundry equipment three years ago and chose to represent Huebsch products. The distributor runs regular open houses and service seminars, and prides itself on having a large inventory and a parts department that is open six days a week.

“For us, this is a great accomplishment in a very short time,” says Pravin Parmar, co-owner of Gulf States. “We only represent products we truly believe in and Huebsch is one of them. Manufactured by Alliance Laundry Systems in the U.S., Huebsch is the perfect partner for Gulf States, as we share the same vision, ‘our customers come first.’”

In addition to its Houston location, Gulf States also has a branch office in Atlanta. The distributor services southern Texas and Georgia.

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 12, 2012

SANTA FE SPRINGS, Calif. — New exec has more than 28 years of experience in

SANTA FE SPRINGS, Calif. — Continental Girbau West (CG West) has hired Andrew “Bud” Bakker as vice president of sales. In his new role, Bakker manages and works to grow the regional distributor’s vended, on-premise and industrial laundry sales efforts.

“Bud is an incredibly experienced sales professional with undeniable character,” says Continental Girbau President Mike Floyd. “He understands field sales and comes to CG West with more than 28 years of experience.”

Bakker launched his career in 1984 as an owner/operator of Simon and Son Fine Dry Cleaning, in Woodinville, Wash., where he stayed for 11 years. He went on to serve Westport Supply, Tukwila, Wash., where he handled drycleaning, industrial laundry, hotel laundry and janitorial supply sales. Most recently, he served as the Northwest sales account manager at Dynamic Sales and Service, Kirkland, Wash., where he managed a territory including Washington, Oregon, Idaho and Montana.

A subsidiary of Wisconsin-based Continental Girbau Inc., CG West serves the California vended, on-premise and industrial laundry markets by providing equipment, parts, financing, service, warranty and training.

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.”

December 22, 2011

CHICAGO — You’ve come to a point where you’re considering opening a new coin laundry. But should you build it from the ground up, or should you look at rehabilitating an existing store? What are the pros and cons of each?

“There are great arguments for both sides, but there are some catches that you want to look at, whether you’re buying a new store or retooling a store,” says J.D. Dixon, owner and president of National Laundry Equipment, a Huebsch distributor based in Nashville, Tenn. “Both can be great investments.”

Robert Renteria, president of Midwest Laundries, Chicago, and a regular contributor to AmericanCoinOp.com, says he’s seen more “born-again” laundries than ever before in the past year. “The key now is to find laundry locations that are in operating condition but in need of a facelift, or that are closed but have an up side when the competition and demographics are taken into account.”

Setting the laundry apart from its competition has to be at the heart of the decision-making process, advises Carl Graham, vice president of coin sales for Scott Equipment, a Dexter distributor based in Houston, Texas. “Unless you build a bigger, better burger, they’re not going to come.”

Location

Choosing to rehab a store means you’re locked into that location, Dixon says, while building new gives the prospective owner the flexibility to select the best site for his/her business needs.

Whether new or rehab, Graham asks his clients if they’re comfortable with the location. “You’re the one who has to go there all the time, so it needs to be in an area you don’t mind going to.”

Risk and Regulation

Building a new store means taking on more financial risk than you would if rehabbing, plus it’s generally more expensive, Dixon says. “Like starting any new business, you have more pre-revenue time. You have a lot more time before you bring in dollar one.”

When choosing to rehab, Renteria favors fixing any machines that still have useful life, then looking to buy rebuilt or refurbished machines. “This will cut your expenditures about 50% and make for a much better ROI at the end of the year.”

Buying and rehabbing an existing laundry often means the new owner can avoid some expenses and some bureaucracy.

“A lot of times, you can avoid impact fees and code restrictions, which are huge,” Dixon says.

For example, Davidson County, Tenn., where Nashville is located, charges an impact fee of upwards of $3,000 per washer, Dixon says. The impact fee charged in Houston is $1,500 to $1,700 per washer, Graham adds.

“If you buy existing, you’re grandfathered, so those fees are paid,” Graham says. “That’s a pro for refurbishing an existing store. And you don’t have to go through as much red tape either, unless you do a complete rehab of a place.”

“If you buy [an existing store], someone has already gone through that process,” Dixon says. “You still have to pull permits, but it’s a whole lot easier to pull a permit to put in new equipment or upgrade electrical or do something like that than to build a new store.”

Building Customer Base

One potential benefit for choosing to rehab an existing laundry is that it already has a customer base. You have the opportunity to speak to the store’s customers and get ideas for how you can develop the business and attract more people.

With a new store, you must build that customer base from zero, Dixon says.

“You’ve got to be thinking about how to get your message to the people in your area,” he says. “You want to think very hard about within a 1-2 mile area, but you also want to think about miles three to five away from your store. How do I reach the people one to two miles from me in an urban setting? In a rural setting, it could be 15 miles.”

Which is Easier?

“It depends on what part of rehab you have to do,” Douglas says. “I prefer new, because you go by all the new codes. And you can build it the way you want to built it, the most efficient way.”

“It’s a case by case basis. A lot of times, in a retool situation, you get into working with the current business owner and negotiating and all that rigamarole that you have to go through to actually buy the business in the first place. Once you own the business, the retool would be easier, because there are (fewer) levers to pull, (fewer) variables to think about.

“But there are things about building a business that are easier as well, because you can build from that blank canvas.”

Click here for Part 1.

December 21, 2011

CHICAGO — You’ve come to a point where you’re considering opening a new coin laundry. But should you build it from the ground up, or should you look at rehabilitating an existing store? What are the pros and cons of each?

“There are great arguments for both sides, but there are some catches that you want to look at, whether you’re buying a new store or retooling a store,” says J.D. Dixon, owner and president of National Laundry Equipment, a Huebsch distributor based in Nashville, Tenn. “Both can be great investments.”

Robert Renteria, president of Midwest Laundries, Chicago, and a regular contributor to AmericanCoinOp.com, says he’s seen more “born-again” laundries than ever before in the past year. “The key now is to find laundry locations that are in operating condition but in need of a facelift, or that are closed but have an up side when the competition and demographics are taken into account.”

Setting the laundry apart from its competition has to be at the heart of the decision-making process, advises Carl Graham, vice president of coin sales for Scott Equipment, a Dexter distributor based in Houston, Texas. “Unless you build a bigger, better burger, they’re not going to come.”

Infrastructure

When building new, you can start from the ground up to create a clean, modern infrastructure so it can handle the laundry equipment you plan to install, Dixon says.

“A lot of times, the problem we run into with retools is the owner wants to put in a whole new bunch of equipment and you walk in and find out, ‘Wow, we’ve got some serious infrastructure issues.’”

You may discover that the electric, water or gas service is insufficient for your project’s needs, or may even be substandard because “unlicensed electricians and gas people” have done the work in the past.

“You find wires and lines and plumbing going in all different directions,” Dixon says. “You wonder why the equipment acts like it has a ghost in it, and it’s really not the equipment. It’s really your infrastructure. You’re bleeding amps, or something weird is happening.

“That happens more often than not in a retool. It’s pretty amazing when you walk into these places and you see how things have been set up. And it seems like the older the laundry, the worse it is.”

But that isn’t always the case, according to Graham. “Rehabbing has its definite advantages, because you have most of your infrastructure in place. You just have to modify stuff.”

You can eliminate any concerns about infrastructure issues with new construction, according to Dixon.

“You don’t have any of those problems with a new store,” he says. “You get to put it in the way it’s supposed to be, and you know that you’re not going to have any odd issues with your equipment.”

Design

From the outset, building a new store provides the owner with what amounts to a blank canvas. There will be some constraints based on the space available, but the opportunity exists to design a store that is highly efficient and thus equipped to get customers in and out in the shortest time possible.

“You can tailor the space exactly to the demographics of your area,” Dixon says. “You can tailor the ergonomics of the space. You can tailor even the way the building is lit and colored, location, painted, and floored, everything, based on the folks that are living around there.”

What works in one store may not work in another. For example, you might choose a color scheme for a Miami store that you wouldn’t for a store in Lexington, Ky.

Rehabbing an existing store presents limitations, Dixon says, and Graham adds that a project could turn out to be more expensive than buying new if extensive work is necessary.

“You’re limited on your space and your setup,” Dixon says. “A lot of times, when you’re retooling a store, it’s going to be hard to change the ergonomics. Unless you want to get into tearing up the floor and rerunning drain lines, things like that, you’re basically going to put equipment where equipment already stood.”

“You might have to gut the whole place out and sometimes it costs more to rehab a place than to build new,” Graham says.

Advances in laundry equipment, particularly a shift from top loaders to front loaders, can enable a new owner to fit more capacity into the same space, Graham says.

“I’ve got two 7,000-square-foot stores that I’m revamping right now,” he says. “We’re reducing the stores by a third but we’re increasing the volume of capacity they can have and reducing their electrical and water usage.”

Building new means a much more extensive project than a rehab. “There’s going to be a whole lot of construction on this that you’re hoping to miss on the retool,” Dixon says.

Tomorrow: Location, risk, regulation and which is easier...

October 3, 2011

NEW YORK — Eastern Funding LLC, a business financing company focusing on the coin laundry and dry cleaning industries, climbed to 36 on Monitor’s annual Top U.S. Bank Leasing & Finance Companies list.

The improved ranking reflects the company’s increased net assets in 2010 by $29.4 million. In a tough year for the financing industry, Eastern Funding’s 17% growth was the fourth highest listed.

“Our growth and success at Eastern Funding continues to be powered by our belief in the value of looking beyond standard credit criteria to develop financing that's tailored to help our customers reach their business goals,” says Marc Stern, Eastern Funding’s chief credit officer. “It’s our customers that bring vision and opportunity to the table, and it's our commitment to then say ‘yes’ with the right financial solutions.”

Founded in 1997 by Michael Fanger, Eastern Funding is headquartered in New York City. The company specializes in financing new and used equipment purchases, acquisitions and refinancing of retail stores, and real estate purchases.

September 26, 2011

CHICAGO — With large-capacity washers and dryers more common in today’s coin laundries, offering some type of commercial service seems to make more sense than ever before.

But taking on commercial accounts is a much different animal than running a vended laundry. There are staffing and equipment issues to consider, contract and billing matters to attend to, and you can’t sit back and wait for customers to come to you.

IDENTIFYING OPPORTUNITIES THAT MAKE SENSE

Someone new to commercial work might think the best approach would be to seek out any and all accounts. And while there are a variety of businesses that can benefit from hiring a laundry service, the distributors believe that a focused approach would serve you best.

“The biggest accounts out there that I see coin laundries being able to go after are on the lower end,” says Andy Wray, sales manager for ACE Commercial Laundry Equipment, a full-service commercial laundry distributor headquartered in Westminster, Calif. “We’d be looking at schools, barber shops and beauty salons, day spas, things like that. Basically towels or limited items.”

Doctors’ offices and physical therapists are other potential clients, says John Sugg, president/CEO of SAMCO, a Fayetteville, Ga.-based commercial laundry distributor serving the coin laundry, multi-housing, hotel, education and healthcare markets.

“Start off by concentrating on one type of commercial business,” he says. “People that we’ve seen be successful have keyed in on these segments. Or they will key on beauty and barber shops and just do towels.

“You can expand beyond your base, but it’s always best to identify the market you’re going after.”

You never know where opportunities may come from. Sugg recounted how a Birmingham, Ala., laundry owner solicited subcontractors staying in the area as they worked to rebuild tornado-torn Tuscaloosa 40 miles away. At its peak, the laundry was turning out about 1,200 pounds of wash-and-fold business a day.

“You can crank out pretty good business if you have the people to do it,” he says.

Some laundries have hired additional staff to work on their commercial accounts overnight, Wray says.

MAKING THE MOST OF YOUR OPPORTUNITIES

It’s not unusual for a coin laundry owner to do some marketing—store signage, ads in the Yellow Pages and the local newspaper, direct mail, etc.—but making a go at offering commercial service means taking things to a whole new level.

One of Sugg’s customers has had success by setting up a website, running specials, and accumulating the e-mail addresses of potential customers. Another customer takes a personal approach, traveling to potential clients to introduce her business to them.

“You’ve got to market it,” he says. “You can’t just hang a sign and expect people to come to you.”

“A lot of these people, just like in our industry, know each other,” Wray says of potential commercial accounts. “As long as you get in with one account, whether it be a small hotel, a day spa or something of that nature, you might do a great job for them. Word of mouth, as you know, is the best advertisement.”

Once you have landed a client, it’s important to provide them with consistent service, Sugg says.

“If you’re doing towels and you quad fold one week and the next week you roll them, that’s unacceptable to most people. Every towel should look the same every week.”

Deadlines drive commercial service. If you start offering the service but can’t deliver on time, then you’ve got problems.

“The biggest thing would be starting off slow, obtaining accounts, the pickup and delivery of the product, and not biting off more than you can chew,” Wray says.

“I’m not saying you can’t do a lot of volume. You could have 10 or 15 salons you do.”

Whatever decisions you make regarding offering commercial service, be mindful of how they may impact your self-service business, Sugg says.

“You don’t ever want to discourage your paying customers that are coming in the door. That should always be the main thrust of your business.”

Click here for Part 1.

September 22, 2011

CHICAGO — With large-capacity washers and dryers more common in today’s coin laundries, offering some type of commercial service seems to make more sense than ever before.

But taking on commercial accounts is a much different animal than running a vended laundry. There are staffing and equipment issues to consider, contract and billing matters to attend to, and you can’t sit back and wait for customers to come to you.

“(Running a) Laundromat is more of a consumer business, a retail service, whereas commercial is more business to business,” says Andy Wray, sales manager for ACE Commercial Laundry Equipment, a full-service commercial laundry distributor headquartered in Westminster, Calif.

And a coin laundry owner must be intimately involved for their commercial service venture to be successful, advises John Sugg, president/CEO of SAMCO, a Fayetteville, Ga.-based commercial laundry distributor serving the coin laundry, multi-housing, hotel, education and healthcare markets.

“You have to be hands-on,” says Sugg, who is a store owner and route operator himself. “If the owner is actively involved in that segment of the business, it can be very profitable.”

To fine-tune your commercial laundry service, it’s important to coordinate it properly from the get-go.

BUSINESS CONSIDERATIONS

You must have the proper equipment and facility to handle such an endeavor, the distributors say.

“Some of these places are so tight and cramped, to bring on any more work, they might have to adjust to (working) after hours,” says Wray, a third-generation laundry professional. “Obviously, where there’s a will, there’s a way.”

Most of the standard 40- to 60-pound washers will “get you by,” he says. “Depending on some of the cycles that you require, you can make it up a lot in chemicals, using quality products.”

Equipment design and operational capabilities also factor in, according to Sugg.

“You can’t do one size fits all and make it work,” he says. “You need versatility as far as your equipment is concerned. … If you just have a basic machine that has hot, warm and cold as a selector, then you don’t have a very effective model for doing good commercial account business.”

“It might be that you have idle machines sitting there, but if they’re all top loaders, it’s going to be difficult to do some of the requirements from some of the hotels and stuff like that,” Wray adds.

With the right equipment in play, there should be no need for you to segregate machines for commercial accounts, Sugg says.

But there are limitations to the scope of commercial service that a traditional self-service laundry can offer. When you make the decision to take on commercial work that involves ironing or other special treatment, it’s probably time for you to branch out.

“Then you really are getting into a whole other segment of business,” Sugg says. “We’ve seen it done, but at the point that you’re going to bring in a roll ironer, you probably should be looking at setting up an industrial laundry to do that.”

“When you start getting into pressing and stuff like that, you step into the commercial/industrial arena,” Wray says.

From a management standpoint, serving commercial accounts requires knowledge in contract negotiations, invoicing and other areas. You may also want to review your insurance coverage to make sure it’s sufficient for the changes you’re looking to make.

“Somebody who doesn’t have organizational tools in the first place probably should shy away from (commercial work),” Sugg warns.

Monday: Identifying opportunities that make sense...

September 9, 2011

CHICAGO — The arrival of fall can only mean one thing for self-service laundry operators — a calendar full of opportunities to attend manufacturer and distributor special events, open houses and service schools. Here is a brief rundown of events from the AmericanCoinOp.com calendar through October—call or visit the website listed for registration information. In many cases, space is limited.

Monday — Alco Washer Center Open House, Erie, Pa.; 800-633-7153, www.alcowasher.com.

Wednesday and Thursday — BDS Laundry Systems Open House and Product Show, St. Paul, Minn.; 800-688-0020, www.bdslaundry.com.

Wednesday and Thursday — Gold Coin Laundry Equipment Founder’s Day Open House, Jamaica, N.Y.; 718-658-2646, www.goldcoinlaundry.com.

Thursday — Wholesale Commercial Laundry Co. SE Commercial Laundry Show, Atlanta; 866-544-7228, www.laundryman.com.

Friday — Dexter Service School at Western State Design, Hayward, Calif.; 800-633-7153, www.westernstatedesign.com.

Sept. 17 — PWS The Laundry Company Annual Fall Show, Los Angeles; 323-721-8832, www.pwslaundry.com.

Sept. 19 — American Dryer Corp. Coin-Store Service School, Fall River, Mass.; sepps@amdry.com.

Sept. 21 — Midwest Laundries Fall Open House & Service School, Chicago; www.midwestlaundries.com/community/special-events.html.

Oct. 3-7 — Maytag Commercial Laundry Fall Coin Service School, St. Joseph, Mich.; www.maytagcommerciallaundry.com.

Oct. 5 — Dexter Service School at Launette, Laurel, Md.; 800-229-3036, www.launette.com.

Oct. 5 — Star Distributing Open House/Service School, Nashville, Tenn.; 800-897-7570, www.stardistributing.com.

Oct. 7 — Dexter Service School at Western State Design, Cerritos, Calif.; 800-633-7153, www.westernstatedesign.com.

Oct. 8 — Western State Design Open House, Cerritos, Calif.; 800-633-7153, www.westernstatedesign.com.

Oct. 10 — Sav-A-Day Laundry Machinery 53rd Annual Open House/Sale, St. Louis; 800-489-9274, www.sav-a-day.com.

Oct. 11 — Maytag Commercial Laundry Service School at Coin & Professional Equipment Co., Phoenix; www.maytagcommerciallaundry.com.

Oct. 11 — Southeastern Laundry/Dexter Open House, Marietta, Ga.; 800-522-9274, www.selaundryequip.com.

Oct. 12 — Maytag Commercial Laundry Service School at Coin & Professional Equipment Co., Tucson, Ariz.; www.maytagcommerciallaundry.com.

Oct. 12 — SAMCO Fall Distributor Showcase and Education Conference, Fayetteville, Ga.; 800-969-7627, www.southernautomatic.com.

Oct. 13 — Laundry Concepts Open House and Service School, Addison, Ill.; 800-845-3903, www.laundryconcepts.com.

Oct. 13 — Maytag Commercial Laundry Service School at Loomis Bros., St. Louis; www.maytagcommerciallaundry.com.

Oct. 17-20 — Maytag Commercial Laundry Fall Factory Sales School, St. Joseph, Mich.; www.maytagcommerciallaundry.com.

Oct. 18 — Dexter Service School, Albany, N.Y.; www.macgray.com/october.

Oct. 19 — Dexter Service School, Milford, Conn.; www.macgray.com/october.

Oct. 20 — Dexter Service School, Waltham, Mass.; www.macgray.com/october.

Oct. 25 — Star Distributing Co. Open House, Atlanta; 800-897-7570, www.stardistributing.com.

Oct. 27 — Coin & Professional Equipment Co. Open House & Product Expo, Phoenix; 602-248-0808, www.cpec-laundry.com.

Check the AmericanCoinOp.com calendar periodically for updates. If your company has a similar event that’s upcoming but you don’t see it listed here, post it free today. Click here to get started!

September 1, 2011

RIPON, Wis. — Commercial Equipment Co. was recently named the 2010 Speed Queen Commercial Distributor of the Year. The award is presented based on year-over-year sales growth and overall dedication and professionalism in the industry.

“Speed Queen customers deserve the best service from their distributors and they can rest assured they are receiving that from Commercial Equipment Co.,” says William Bittner, Speed Queen’s North American sales manager. “CEC cares about their customers and supports them over the life of their investment. We couldn’t be happier that they are a Speed Queen distributor.”

This is the third time that Commercial Equipment Co. has received this award.

“We’re proud to be a Speed Queen distributor and truly believe they deliver the best products on the market,” says Taylor Smith, owner of Commercial Equipment Co. “I am very proud of our company and the employees. We pride ourselves in our service before, during and after the sale, and that is recognized by winning this award.”

Headquartered in Addison, Texas, Commercial Equipment Co. is family owned and operated. It has been a Speed Queen distributor for more than 44 years and provides services in northern Texas and northern Louisiana.

August 2, 2011

CHICAGO — While buying Laundromat insurance may be a less-than-glamorous task, few things are as important to your survival as a self-service laundry owner as protecting your business. Your investment must be looked after. For example, could you afford to rebuild after a disaster? Gambling is for Las Vegas, not the self-service laundry industry.

Have you changed insurance carriers lately? Have you looked for a better deal? Do you know what questions to ask when shopping for insurance?

Take a moment out of your busy business life, and think about the last time you reviewed your coverage. Are the limits adequate? Think about the laundry. Have you made any changes to the store? Have you added any washers or dryers? All of these things have an impact on your coverage.

There’s another way to look at your insurance coverage. Has your carrier contacted you lately? If not, maybe you should ask yourself why. It’s never a bad idea to give a new carrier a chance. The worst thing that can happen is you get to compare prices and coverages. A new deal may be beneficial for your operation.

Before you rethink your coverage, be prepared. Larry Trapani, an industry insurance veteran, offers tips on how best to shop for Laundromat insurance.

Look for a Specialist

When acquiring a store, you focus on the terms of the lease, cost of the washers and dryers, and the cost of the build-out, says Trapani, senior partner with New York-based Brooks-Waterburn Corp., an independent agency that represents more than 15 insurance companies with clients throughout the United States.

“Many lenders tell me that the potential owners use their home as collateral against the investment,” Trapani says. “Given that so much is at stake, wouldn’t it be prudent to make sure your business is properly protected?”

This is where the “friendly” neighborhood insurance writer usually enters the picture, Trapani notes. “[This] could be a local insurance agent who handles your home and car insurance, or a direct writer such as Allstate or State Farm. I’ve been in the insurance business for more than 25 years, and the truth is that insuring a Laundromat is relatively simple.

“Most insurance companies want to write this class of business, and are willing to do it at competitive prices. But are they really capable of analyzing your unique situation so that you are adequately protected?”

Just asking a few, basic questions can go a long way in determining if you have the right person or company behind you, he says. Trapani suggests posing the following questions before you request a quote:

How many Laundromats do you insure?
Unless the answer is more than 100, the company probably does not have much expertise in the field, he believes.

How will you cover the build-out?
The build-out is how much you invest in the leased space, and could include costs such as plumbing, carpentry, electrical, etc., he explains. “If the agent answers ‘Huh?’ to your build-out inquiry, it’s best to look somewhere else.”

What markets do you have that specialize in Laundromats, and is the policy you offer specifically designed with coverages for a Laundromat owner?
While this might seem obvious, many agents, and almost all direct writers, only represent one insurance company, he says. “What happens when [the company] stops writing Laundromats, or the price goes too high?”

Other than the basic coverage, what specialized coverages are included in your policy?
At the very least, you should have coverage dealing with customer goods, hired and non-owned auto and business-interruption problems, he explains. “All of these coverages mean the difference between reopening after a loss or not. They are not automatically included!”

Are water heaters and boilers covered?
These pressure vessels are generally excluded from a traditional-package policy, he cautions. “Some business-owner policies do include this coverage, but you need to ask.”

What about workers’ compensation?
“Given that this is a cash business, not all owners pay their employees on the books. The truth is that the IRS is cracking down on traditional cash businesses like restaurants and Laundromats. [The IRS] needs their tax revenue, and are going after easy targets.”

Workers’ compensation is relatively inexpensive, according to Trapani, and you also protect the worker if he or she is injured on the job.

He is often asked how to “stretch money” when it comes to buying insurance and protecting a store. “The easy answer is to buy as much insurance as you can afford. For example, for only a few hundred dollars a year, you can add an ‘umbrella’ liability policy. This is an additional million-dollar (or more) liability coverage above the basic liability policy you have on your Laundromat policy.”

If business picks up, another option is to include policies on you, such as disability income or life insurance, he suggests. “A disability policy would give you the money and, most importantly, peace of mind if you are partially or permanently disabled.”

Similarly, life insurance is a good option to protect your family and investment, too, he says. “If you die, who is going to pay the loans on all of your equipment? Perhaps your spouse does not want to run the Laundromat after you are gone.”

If you have any questions or comments about this article, contact Larry Trapani at ltrapani@brookswaterburn.com.

Next page: Larry Larsen on avoiding key mistakes…

July 28, 2011

NEW YORK — Business financing company Eastern Funding LLC has jumped to No. 76 on the Monitor 100 list of the largest equipment finance and leasing companies in the United States. Eastern Funding has a special focus on the coin laundry, convenience store and drycleaning industries.

Headquartered in New York City, Eastern Funding has facilitated loans of more than $500 million since its inception in 1997, and the company’s consistent growth and success in the laundry business is reflected in its climb up the Monitor 100.

The top-100 list is published annually by Monitor magazine and is the only source of its kind that provides a total “dimensioning” of the largest equipment finance and leasing companies in the U.S., the magazine says.

“The Monitor 100 ranking validates Eastern Funding’s commitment to developing effective lending solutions and to provide business financing,” says Brian Grell, Eastern Funding’s executive vice president.

July 18, 2011

ST. JOSEPH, Mich. — Mississauga, Ont.-based Harco Co. Ltd. recently earned the Maytag Commercial Laundry Breaking Away Award. The honor, presented during Maytag’s 53rd Annual Meeting in Palm Springs, Calif., recognizes Harco’s leadership and increased overall sales of Maytag Commercial Laundry products.

“This award recognizes a distributor who demonstrates an initiative to think and act differently, especially during tough economic times,” says Craig Kirchner, global director of Maytag Commercial Laundry. “Knowing that past results can always be improved upon, Harco ‘broke away’ from some of the more traditional marketing and sales tactics and undertook new initiatives.”

“When a number of companies were pulling back and cutting inventory levels, we made a conscious decision to do just the opposite,” says Robert Jackson, owner of Harco. “We grew our business in 2010, and the Maytag Commercial Laundry products were an integral part of our success.”

Founded in 1961, and with present ownership in place since 1981, Harco was appointed as a Maytag Commercial Laundry distributor in 1984.

In addition to this award, Harco has also won the Fred Maytag and Red Carpet Service Excellence Award three times.

July 14, 2011

PEMBROKE, Mass. — “Why should I spend money on an identity when I spell out exactly what we are?”

That’s the question one store owner asks as he’s standing in front of his store sign that reads, “Laundromat.”

As an afterthought, he says, “Everybody knows who we are.”

That’s true, but perhaps it’s not true on a deeper, more subconscious level.

Perhaps there are improvements an owner can make in creating a more readable, more identifiable name that engraves his/her existence in the customer’s mind and minimizes the presence of competition.

Expanding Your Influence

In practical terms, and depending on how many stores are crammed in a small area, your store will always be the Laundromat of choice in the 1-mile diameter encircling you. But there is a second circle, 2 to 4 miles out, where many customers have options.

These customers can patronize XYZ Laundromat at the border of the next town, or ABC Laundromat in the next town on the opposite side. Moreover, your commercial accounts have even more discretion of whom they will use to handle their laundry. It is this segment that could be swayed by an improved identity.

Here’s a personal example of how a visual wordplay creates impact. When I owned my business, I put the words “Tempus fugit, so do we” on the front and back of my trucks. This translates from Latin to, “Time flies, so do we.”

About twice a week, someone called my company asking what the words meant. My drivers would be endlessly kidded about the wordplay. When I visited a customer, someone might say, “Here’s Mr. Tempus Fugit” or “It’s the Latin scholar.” One time, I was asked to visit a radio station and explain the wordplay. This received big play.

See how the words expanded into something big? They created attention.

Identity matters. The late Joe Selame, principal of Selame Design in Boston, wrote, “Identity is the cornerstone of a successful firm.” Selame gave identities to many area institutions, including Stop & Shop, CVS, Fenway Franks, Goodwill Industries, Massachusetts General Hospital, Zoots and Veryfine Juice Products, as well as countless hundreds of smaller organizations.

Selame’s wisdom includes: “No company is too small to have an identity makeover.” “Every company can be improved by an identity.” “A good name helps a company stand out from the pack.” “A company without a symbol is like a country without a flag.”

His formula was pretty simple:

  • Get at the essence.
  • Create something that people remember.
  • Keep it simple.
  • Come up with a different identity that will stand the test of time.

Go To It

Here is how you go about creating an identity without spending a small fortune. Sit down with your company name on the top of a piece of lined paper. Play around with the name. Look at the initials and see if it spells something out. Maybe the town could be added into the wording. Is there a flow to the words? Is there a shape that appeals to your eye? Perhaps the three-word name can be one word on each line, the second and third words indented, to create a step effect. You might create a one-word, upward-tilting script format that would be pleasing to the eye.

Is there some logo you might incorporate into the name? How about a washing machine outline, and the center is the letter “O,” representing the machine door? What about using a stack of shirts representing finished product alongside your name? How about a linked circle of different clothing silhouettes in black, from socks to shirts to pants, encircling the copy. It’s all about brainstorming.

Consider adding a slogan, such as “Clean clothes every day.” “The friendly Laundromat.” “Wear clothes well and long.” “Cleanliness is next to Godliness.” If you are on a corner, you might try “The Corner Laundry.” Might “The Neighborhood Laundry” work? Some might go bold and try something far out, such as “The Laundress with Mostess.”

After you’ve puttered around for a bit, bring your ideas to a product-identity expert. You might go to a company like Selame Design if you don’t mind spending $10,000. But if that’s a bit too rich for your blood, hire a product-design student who might charge $500 or so for the opportunity to work on a real-world challenge.

Or even better, submit this challenge as a class project. The creator of the winning entry receives a reward. This way, you’ll receive a few dozen submissions. You and the instructor can choose the winner. Even better, you can incorporate different ideas into your identity.

So now you have a new identity. What should you do with it? Over time, convert the old into the new. Order business cards to reflect the new you. Have a banner made of your new identity and hang it in the store.

Put up a sandwich board in front of your store and in the parking lot. Order a newspaper ad introducing the change. If your overhead sign needs updating, redo the sign. If you need a new delivery truck, add the image to the exterior. When you run out of invoices or stationery, add the new identity to the new forms.

What can you expect from your identity efforts? Nothing will happen on day one. A few customers might say, “I like the banner.” Hopefully, no one will say, “That’s awful. I can’t read it.”

Over time, people will grow to trust you a bit more. Long-time customers as well as new patrons will feel more comfortable in your store. When someone asks someone about a Laundromat, there is a good chance that your store will be mentioned.

If you are a multiple-store owner, it will become clearer that you’re a chain. If you do cold canvassing, you’ll have more confidence handing out business cards.

You will see new faces in your store. You’ll attract new commercial accounts. And, finally, one day, you’ll realize that your business is expanding more than ever before.

July 13, 2011

ST. JOSEPH, Mich. — Hicksville, N.Y.-based Hercules Corp. recently won the Multi-Housing Excellence Award during Maytag Commercial Laundry’s 53rd Annual Meeting in Palm Springs, Calif. The honor recognizes outstanding service to the multi-housing market, including colleges and universities, condominiums and apartment buildings.

“Hercules’ dedication to the multi-housing industry is unmatched,” says Craig Kirchner, global director of Maytag Commercial Laundry. “This market covers a wide variety of audiences, and Hercules continues to represent the Maytag Commercial Laundry brand with loyalty and respect. We commend them on their efforts and look forward to many years of continued success.”

“Our customers value the Maytag Commercial Laundry brand and what it stands for,” says Andrew May, president and CEO of Hercules. “We feel privileged to work with a leader in the industry, and we will continue to provide our customers with the reliable and top-notch service this award honors.”

Hercules is a two-time Maytag Commercial Laundry Multi-Housing Excellence Award. The company has also won the Maytag Commercial Laundry Red Carpet Service Excellence Award.

July 11, 2011

OSHKOSH, Wis. — Continental Girbau awarded Daniels Equipment Company of Auburn, N.H., with the 2010 Vended Laundry Distributor of the Year award, an honor that distinguishes distributors for outstanding performance in the vended laundry market. This is the third consecutive year Daniels Equipment has claimed the award.

“The Daniels Equipment team is among the most equipped and experienced in the industry,” says Continental President Mike Floyd. “Through a concerted effort, they continue to exceed expectations since we formed a partnership with them several years ago. Daniels Equipment is a superior distributor with unmatched marketing and sales efforts.”

Continental also awarded Concord, Ont.-based Sparkle Solutions with the Canadian Distributor of the Year award for outstanding sales and distribution in both the vended and on-premise laundry markets. This is the second consecutive year Sparkle Solutions received the honor.

“Ray Helwig and his staff are among the most talented and capable teams in North America,” says Floyd. “They deliver expertise in every aspect of the vended laundry development and on-premise laundry productivity.”

June 7, 2011

Another busy day at the Clean Show.