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November 26, 2012

FAIRFIELD, Iowa — Repairs should include drying out, testing, cleaning and deodorizing flood-damaged equipment

FAIRFIELD, Iowa — To help those affected by Hurricane Sandy, the employee-owners of Dexter Laundry and Dexter Financial are available to laundry owners who have seen their equipment damaged by flooding.

Dexter has posted flood-damage repair tips on its website, and is offering equipment damage analysis, priority technical support, and expedited replacement orders with special financing to those impacted by the storm.

Qualifying laundry owners in the Hurricane Sandy-affected areas of New York and New Jersey are eligible for up to six months of no payments, with no origination or documentation fees, along with a special allowance for installation and start-up costs. Customers wishing to pay off their loan after recovery from their insurer or other agency will face no prepayment penalties.

“The employee-owners at Dexter and Dexter Financial are very familiar with the long recovery period from such devastating damage,” says Kevin Hietpas, director of sales for Dexter Laundry. “During the summer of 2008, many areas of Iowa were damaged by historic flooding, so we are sensitive to owners who are rebuilding in the affected areas, and we are on hand for assistance as customers need us.”

Owners needing assistance who call Dexter Financial (800-926-8230) or Dexter Laundry (800-524-2954) will be connected to the authorized distributors for their area for free equipment analysis and expedited assistance.

September 5, 2012

ROSEVILLE, Calif. — Paradise Laundry focuses third store entirely on front loaders

ROSEVILLE, Calif. — When Paradise Laundry Inc. chose to open a third store in this Northern California city of roughly 122,000 people, it decided that it would be topless—minus top loaders, that is.

For more than 20 years, the coin laundry known as the “Laundry Basket” had been primarily a top-loader store (17 of 23 washers were of the top-load variety). But when Paradise Laundry owner Deborah Dower decided to buy and renovate the southern Roseville site, she elected to go entirely with Dexter front-load washers, 14 of them.

“An older top-loading washer can use up to 42 gallons of water to wash one load, which is more than twice as much water of a high-efficiency (HE) front-load washer,” says Dower, whose business was honored recently by the Sacramento Board of Supervisors for its sustainability and water conservation. In making the switch, Paradise Laundry was able to boost the store’s wash capacity by 150% while using 40% less water.

When Paradise Laundry remodeled its first Roseville location, it reduced the number of top loaders there from 22 to 12, intending to further reduce the number to just six. “We thought people would stop using the older-style machines when they realized how much better the HE washers worked, then we would replace the tops with high-efficiency front loads. Unfortunately, that has not been the case. Much to our surprise, there are times each week when all 12 of the top-load washers are busy.”

Many California cities have been hit with double-digit water and sewer rate increases due to the need to replace aging underground pipes, according to Dower.

“Recognizing water and sewer rates are going to continue to increase, we decided at this new location we would not even offer top-load washers,” she explains. “Instead, we would put in double-capacity front-load washers and price them the same as a top load. My worst fear is for someone to come in, take a look, see we don’t have any top-load machines, then turn around and walk out. We are hopeful the equivalent pricing will give them incentive to try the high-efficiency washers.”

Paradise Laundry will host a grand-opening celebration at its Cirby Way store on Sept. 19.

June 7, 2012

FRANKFURT, Germany — Handful of U.S.-based exhibitors display or promote coin equipment

FRANKFURT, Germany — Every four years, Frankfurt hosts the Texcare International trade show. Also known as the World Market for Modern Textile Care, much of the show’s focus is on industrial laundry and dry cleaning.

But during the five-day event in early May, there were opportunities to see coin laundry equipment amidst the tunnel washers, rail systems and finishing equipment. A handful of U.S.-based exhibitors displayed or promoted coin equipment to an international trade audience.

Alliance Laundry Systems presented a sizable booth featuring a wide variety of equipment. One of its brands, IPSO, showcased a fully operational vended laundry. Visitors to the booth were able to see how the machines process clothing and linens and how advanced controls help owners increase energy efficiencies.

The display included eight of IPSO’s new HD softmount washer-extractors and three DR tumblers. The washers operated using the Cygnus standard control and were connected to a central pay system. The tumblers featured the DX4 control.

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

Another Alliance brand, Speed Queen, promoted its relaunch to the international market. Its various segments, including vended, multi-housing, on-premises and home, have been united under a single brand identity that includes a new look, feel and message platform focused on Speed Queen’s key attributes.

Maytag Commercial Laundry successfully launched a new stack washer-dryer combo for the international export market. “So far, it’s been very popular for both distributors as well as end-users,” says Craig Kirchner, director of global commercial laundry for Maytag. “We’re getting both in the booth to talk about it.”

There was a lot of interest from dealers and potential customers from Eastern Europe and the Middle East. “They’re interested in taking it on because there aren’t a lot of options out there, specifically in this smaller (8-10 kg) equipment. … I’ve talked to a lot of guys in Europe that are going to be put those in coin laundry stores … because they don’t have as much space like the big Laundromats in the United States. These are perfect for that type of venue.”

Dexter Laundry is seeking to open up new international markets and used Texcare International to introduce or, for a number of attendees, reintroduce its brand of coin and OPL laundry equipment, says Kevin Hietpas, Dexter’s vice president of sales and marketing.

“We’re very happy that customers seem to recognize us,” he says. ”They’ll comment, ‘Hey, we’ve heard of you. We’ve never seen you before.’ By reputation, they’re interested in hearing more.”

Dexter is active in Italy and is looking to become more active elsewhere, he says. “We’ll follow up with a lot of potential opportunities from here. Some will turn into customers immediately, others may turn into customers down the road. We’re trying to approach the show from a very long-term perspective.”

To be successful in international markets, it’s vital that a manufacturer have a reputable, reliable distributor network. “Developing a distributor is a long-term process,” says Lee Wilson, director of international sales for Dexter. “It’s a partnership. It’s not something where we’re going to come in here and we’re just going to sign up a distributor. We’ve got to get to know them, they’ve got to get to know us.”

LG Electronics, which launched its family of card, coin and on-premise laundry equipment at last year’s Clean Show, exhibited at Texcare for the first time.

Other Texcare exhibitors that were listed as offering coin laundry equipment included Fagor Industrial (Spain), Krebe-Tippo (Slovenia), Miele (Germany) and Renzacci (Italy). American Dryer Corp. and Pellerin Milnor Corp., which offer coin laundry equipment among their product lines, exhibited but were not listed in the Texcare guide under that category.

John Riddle, Riddle & Associates, and David Cotter, CEO of the Textile Care Allied Trades Association, manned a booth promoting next year’s Clean Show in New Orleans. “For us, we made a decision many years ago that the Clean Show was an integral part of the world community of laundry and dry cleaning,” says Riddle, whose firm has managed the Clean Show for nearly two decades. “The way you show that support is you come and participate in these types of events.

“We wanted to show support, we have a lot of American manufacturers here and we wanted them to know that we’re here. … Plus, it exposed the attendee, the operator, the dry cleaner, the coin wash dealer, in all these countries … to what the Clean Show really was.”

Texcare International registered a 3% increase in attendance from the previous show in 2008. Altogether, 15,800 trade visitors from 100 countries attended the trade fair. More than half of all visitors (52%) came from outside Germany.

There were 264 exhibitors hailing from 26 nations in Hall 8 and the adjoining Galleria. Top exhibitor nations after Germany were Italy, the United States, Belgium, the Netherlands and Great Britain.

February 16, 2012

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

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

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

Criteria for Setting Price?

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

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

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

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

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

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

How Do Your Front-Load Prices Compare?

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

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

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

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

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

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

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

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

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

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

Tuesday: Should you announce a price change?

January 17, 2012

JAMAICA, N.Y. — After 16 months of preparation and renovation, Gold Coin Laundry Equipment opened its new showroom and expanded parts department last week.

The showroom featuring fully operational Dexter washers and dryers is part of a 5,000-square-foot expansion that converted old, empty warehouse space, the distributor says.

Gold Coin President Douglas Pratt says the company had customers in mind while planning the expansion. “At times, our parts customers were crammed in at the counter. Now, with a total of 13,000 square feet to work with, that doesn’t happen; plus, we have more room to stock more items and disappoint fewer customers.”

Besides the Dexter equipment, Gold Coin now has room to display the Whirlpool line, plus ancillary products such as Vend-Rite soap venders, change machines by Standard Change-Makers, and a NATCO on-demand water heater. Customers can even try out Standard’s easyPAY kiosk.

Gold Coin has scheduled several events this year, including a March 28-29 grand opening, to show its customers the full potential of the equipment it sells.

The new showroom and expanded parts department is located next door to the distributor’s original location, 91-16 143rd St. in Jamaica.

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 24, 2011

CHICAGO — More than 100 local coin laundry owners and managers recently attended the Midwest Open House hosted by D&M Equipment Co., a Dexter authorized distributor.

The Oct. 11 event featured product displays, service and industry seminars, special one-day pricing on equipment, and more. Dexter’s Tim McKinney conducted technical training, and attendees came away with a wide range of advice on how they can keep their Dexter washers and dryers operating reliably and efficiently.

D&M Equipment Co. staff members were on hand to demonstrate the energy-saving potential of Dexter Laundry equipment, and Dexter Laundry factory technicians hosted service seminars on the company’s washers, dryers and Easy Card™ systems.

“Service training like this session is an important value-added service for our customers,” says D&M Equipment President Don Tomasian.

Guests were treated to breakfast and had the opportunity to win many raffle prizes.

For information about other open houses and service schools for coin laundry owners and operators, check out the AmericanCoinOp.com calendar.

October 10, 2011

FAIRFIELD, Iowa — Dexter Laundry has selected Gold Coast Laundry Equipment, Brisbane, Australia, as its 2010 Distributor of the Year. A Dexter distributor since 2003, the full-service company is led by Phil Hodges and Larry Rock.

From their headquarters in Brisbane, they and their local dealers provide Dexter coin-op and on-premise laundry products and services throughout Australia, New Zealand, and many islands in the South Pacific.

Dexter presents its Distributor of the Year award annually in recognition of overall excellence in the sales, service and promotion of its front-load washers, drying tumblers, Easy Card™ systems, and equipment financing for the on-premise and commercial laundry industries.

In accepting the award, Rock was quick to recognize Gold Coast Laundry’s loyal customers and dealers for making the award possible. “We consider them as partners in our business and in Dexter’s business in Australia, and we’re thankful for each and every one of them.”

August 1, 2011

FAIRFIELD, Iowa — Dexter Laundry has debuted an expanded equipment warranty, including a three-year limited parts warranty on all components for Dexter washers, dryers and Easy Card™ systems; five-year coverage on the dryer trunion, bearings and bearing housing; and 10-year coverage on the washer frame, tub, cylinder, shaft, seals, bearings, and bearing housing.

“Customers should know that not all 10-year warranties are created equal,” says Kevin Hietpas, director of sales and marketing. “All Dexter washer designs have passed our 1,000-hour durability test. So while some manufacturers offer coverage for just the bearings and seals, our warranty covers the entire internal mechanical structure of our washers – frame, tub, cylinder, shaft, seals, bearings and bearing housing for 10 years, and there is no limitation based on the number of machine cycles.”

April 30, 2007