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April 10, 2013

Annual Survey: Latest Numbers Reflect Continued Year-to-Year Improvement (Conclusion)

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.

PROBLEM AREAS

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

High cost of utilities
Dealing with employees
Equipment maintenance/repair issues
Competition
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.

October 10, 2012

2012 Distributor Survey: Majority Enjoyed Better Business Last Year (Part 3)

CHICAGO — Newly constructed stores in 2011 feature 4.5 top loaders, 30.0 front loaders and 34.1 dryer pockets, on average

CHICAGO — A majority of distributors polled in this year’s American Coin-Op distributor survey enjoyed better business than the previous year and is expecting overall sales in 2012 to beat those of 2011.

Roughly 55% of survey respondents said business—including the sales of newly constructed self-service laundries, and replacement business—was better in 2011 than it was in 2010. And 59% predict that 2012 sales will be better than 2011’s.

Approximately 24% said business was worse in 2011 than 2010, and 21.1% said business was comparable in both years.

Every distributor listed in the American Coin-Op Distributors Directory prior to July 2 was invited to participate in this year’s unscientific survey, which charts 2011 business and makes comparisons to previous years.

LOOKING BACK

If you built a store in 2011, how does it match up with the numbers from this survey? Here’s a quick equipment snapshot of newly constructed stores to give you some perspective.

Newly constructed stores in 2011 feature 4.5 top loaders, 30.0 front loaders and 34.1 dryer pockets. The stores are, on average, 2,721 square feet.

Here are the new-store profiles for the previous four surveys:

2010: 3.8 top loaders, 26.9 front loaders, 32.1 dryer pockets, and 2,663 square feet
2009: 5.7 top loaders, 27.3 front loaders, 32.6 dryer pockets, and 2,712 square feet
2008: 5.8 top loaders, 27.8 front loaders, 32 dryer pockets, and 2,743 square feet
2007: 6.7 top loaders, 27.7 front loaders, 35.2 dryer pockets, and 3,220 square feet

DISTRIBUTOR ACTIVITIES

Forty-one percent of the distributors that responded broker self-service laundries (compared to 25% in the 2011 survey). Roughly 29% of respondents (compared to 31% in the 2011 survey) operate some type of route laundry.

Are open houses or service schools a distributor offering that you find valuable? Roughly 56% of respondents plan to host some type of open house or service school in 2013, compared to 48% in the last survey (you can check on upcoming distributor events 24/7 at AmericanCoinOp.com; click the “Calendar” tab above).

ON THE HORIZON

So, are distributors optimistic or pessimistic about 2012 overall sales? Fifty-nine percent expect 2012 sales to surpass those of 2011. Roughly 31% expect overall sales this year to be the same as last year. The remaining 10.3% believes that 2012 business will be worse than 2011 totals.

Click here for Part 2

Click here for Part 1

April 11, 2012

Survey: Operators Soldier On Amidst Lagging Economy, Increasing Costs (Part 3 of 3)

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

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

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

ADDING EQUIPMENT IN 2011

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

Here’s a breakdown of the 2011 purchases:

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

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

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

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

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

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

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

SHOPPING IN 2012

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

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

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

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

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

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

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

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

WE’VE GOT TROUBLE…

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

High cost of utilities
Dealing with employees
A lack of customers
Poor economy
Equipment maintenance/repair issues

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

TURNS

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

UTILITIES

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

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

2012 BUSINESS FORECAST

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

Click here for Part 1.

Click here for Part 2.

September 13, 2011

Survey: Top Loaders Popular Among Operators but Check Back in Five Years

CHICAGO — More than 87% of self-service laundry operators polled in this month’s Wire survey said they have top loaders in their stores, but 44.8% believe only a small percentage of stores will have them five years from now.

The average number of top loaders reported per operator was 14. Some operators reported having more than 100 machines; it should be noted that the figures could have reflected multiple stores.

Operators who have top loaders were asked if they planned to keep them for the next several years. Roughly 70% said yes, 19.5% said no, and 10.4% are unsure.

Operators with no top loaders were asked why they don’t offer them. Respondents don’t use them primarily because they believe they are not energy-efficient (77.8%), front loaders generate more revenue (66.7%), and their capacity is too small (33.3%).

While the number of operators offering top loaders is sizable, many of the same respondents believe the days of the top loader are numbered.

Nearly 45% believe only a small percentage of stores will offer top loaders five years from now, and another 4.6% predict no top loaders will be in use. Approximately 39% believe there will be a slight drop-off in the numbers used, and 5.7% say the numbers of top loaders used in the industry will be unchanged. Another 5.7% are unsure. No one said there would be more top loaders in use.

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

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

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

August 8, 2011

Distributors Remain Optimistic (Part 1 of 2)

CHICAGO — Upon studying the results of this year’s American Coin-Op distributor survey, there are reasons to be optimistic about the state of the self-service laundry industry.

Nearly half of respondents said business was better in 2010 than it was in 2009. Better yet, nearly two-thirds of respondents predict that 2011 business will be better than 2010.

Every distributor listed in the American Coin-Op Distributors Directory prior to June 1 was invited to participate in the unscientific survey.

2010 BUSINESS

Last year was a bounce-back year for many distributors, based on the survey results. Forty-six percent of respondents said business (sales of newly constructed stores plus replacement business) was better in 2010 than 2009. Approximately 21% said business was worse in 2010 than 2009, and 32.1% said business was comparable in both years.

In the 2010 survey covering 2009 business, only 15.6% said business was better in 2009 than 2008, while 49% said business was worse in ’09 than ’08.

For those experiencing a change in business in 2010, the No. 1 reason, by far, was the economy. But it’s interesting that it was cited either as a positive or a negative, depending on the respondent.

Those who thrived saw investors who were inspired by upticks in the economy, or who chose to look into the coin laundry business after losing their jobs.

Distributors whose business suffered in 2010 lamented over changing demographics, tight lending/lack of financing, and potential investors unwilling to spend. One businessman partly blamed his company’s downturn on the BP oil spill.

REPLACEMENT BUSINESS

Replacement-business figures also showed signs of improvement from our report one year ago. In replacement business only, 39.3% of respondents said business was up last year compared to 2009. That’s compared to 20% who saw their replacement business increase from 2008 to 2009.

Roughly 29% saw replacement business fall in 2010, and 32.1% said their level of replacement business was unchanged from 2009.

The figures in this category have proven to fluctuate over the last several years. In the 2009 survey for 2008 business, 40% of respondents saw replacement business rise, and only 29% saw business dip.

NEW-LAUNDRY CONSTRUCTION

American Coin-Op asked distributors how many new laundries they built and/or to whom they supplied equipment in 2010. Fifty-six percent of respondents built or supplied equipment to three or fewer new laundries. In the 2010 survey for 2009 business, this figure was 62%.

How many new laundries are distributors dealing with in some fashion? Here are the most popular answers from this year’s survey:

Distributors were also asked if their 2010 new-construction total was more, less or the same when compared to 2009. Nearly 41% said new construction was up in 2010 (by comparison, that figure was only 14% in the 2010 survey for 2009 business), 37% percent said new construction was down, and 22.2% said new construction was the same in 2010 and 2009.

EQUIPMENT MIX

How to equip a store is a critical decision for an owner. Generating revenue is vital to an operation’s success, but overcrowding with equipment can be a detriment.

Fifty-four percent of the new stores had at least one top loader, down just a bit from last year’s figure (62%). (It should be noted that a handful of respondents chose to skip the top-loader question when taking our online survey, so the figure may be even a bit lower than 54%. It’s possible some respondents didn’t install any top loaders, and skipped the question as a result.)

More specifically, here are the most popular numbers of top loaders put into new stores in 2010:

Newly constructed laundries in 2010 have 3.8 top loaders. (This figure factors in the stores with no top loaders.)

Here are the most common numbers of front loaders installed in newly constructed laundries last year:

Newly constructed laundries in 2010 have an average of 26.9 front loaders. This is down only slightly compared to last year’s figure (27.3).

The average newly constructed laundry in 2010 has 32.1 dryer pockets. That’s compared to 32.6 dryer pockets in 2009.

Wednesday: Does size matter …

September 1, 2010

Survey: Distributors a Bit More Optimistic (Part 2)

July 13, 2010

Survey: The Best and the Worst

June 11, 2010

Minding the Mix: Larger Equipment Trend Continues (Part 2)