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July 31, 2012

LONG BEACH, Calif. — Make sure your message is where the people are

LONG BEACH, Calif. — Brian Wallace, president/CEO of the Coin Laundry Association, was given a daunting task: to capture the audience’s attention during the final hour of a regional dry cleaning and laundry trade show in sunny Southern California.

But his task was no more challenging than one faced by every self-service laundry operator: to successfully market his or her store(s) in an environment where potential customers have access to information almost instantaneously and from a variety of sources.

On top of all the other “hats” that a laundry owner “wears”—customer service, maintenance, production, human resources, accounting—he or she can add one more hat to that mix: director of marketing, Wallace told attendees of Fabricare 2012.

“You work incredibly hard for your business, but the fact of the matter is things have changed. … We’re all trying to reinvent ourselves on the fly, trying to deal with the new marketplace. I think that trying to come to grips with some of the new marketing techniques is really an important part of that overall process.”

You may worry about not having the time and money to boost your laundry’s marketing profile, says Wallace, but you shouldn’t.

“What I’ve found exciting about social media, digital media, web, all these different things that have come along the last couple of years, these are almost all low-cost or no-cost opportunities.”

Where is the first place that consumers look, according to Wallace, for local business information? They look to search engines (33%), printed Yellow Pages (23%), online Yellow Pages (22%), local search sites (13%), and mobile apps/social media outreach (9%).

And 77% of all users will research online before they’ll walk through a laundry’s door, he says.

“If we want our businesses to be successful, we need to make sure that our message is where the people are.”

Thus, Wallace ran down a list of ways in which a laundry operator could promote his or her business today. Here are 1 through 5:

1. CLAIM YOUR BUSINESS LISTING AT GOOGLE PLACES AND SIMILAR SERVICES

Google Places is a free business directory offered by Google, the largest search engine in the world and the second busiest website overall. Nearly three-quarters of all web searches happen through Google, Wallace says.

Google Places allows a business to create an informative page about its location, services, hours of operation, and more, using text, images and even video.

“By claiming your business, you’re essentially saying, ‘Google, that is my (laundry). I am the owner,’” Wallace says. “And once they confirm that with you, it’s a pretty easy process.”

Once a listing is established, the business has the ability to edit the presentation so that it is always accurate and up to date.

“The search engine’s job is to deliver the best possible results for the customer,” he says. “So, they’re going to put a lot more weight on a listing that’s been claimed by the business owner, that’s been fleshed out with all the pertinent information. It’s going to deliver better results.”

Once you’re created a profile for Google Places, it’s simple to “copy and paste” the data into other services such as Yahoo! Local, Bing Local, Yelp and Merchant Circle.

“Do your prospective customers a favor—the ones that want to spend money with you—help them find you.”

2. GET A WEBSITE

If your laundry maintains a business website, great. If your laundry is among the 46% of small businesses that still don’t have a website, get one.

If you don’t think it’s something that you or someone affiliated with your business can do, there are any number of companies that offer website design services with small businesses in mind.

Wallace’s association builds websites for its members for free. “We believe the best way to grow the coin laundry business is to make sure that every single laundry owner is available on the web to be found by consumers.”

3. CREATE A FACEBOOK PAGE

Facebook boasts more than 600 million active users, 50% of whom use the site on a daily basis. But, you ask, why should I market my laundry on Facebook?

  • Your customers are here
  • Competitors might be here already
  • It’s easy to create and update your page
  • You can share all types of information in almost any format
  • Being here aids in search engine placement

“Even if you think it’s garbage, even if you don’t care about your friend or your college roommate, what they’re up to, if you cut through the clutter, this is where people are finding businesses,” Wallace says. “This is where they’re getting referrals, this is where they’re finding out where their friends and family are doing their dry cleaning, and who they like and who they don’t.”

So how do you get started? Create a Facebook page, but do notcreate a personal profile (one with an e-mail address). And before you create a page, search the site for an existing “Facebook Places” page for your business and claim that instead.

4. MONITOR BUSINESS REVIEW SITES AND REPLY WHEN APPROPRIATE

In the past, when someone had a certain experience—good or bad—at your business, they told their friends and family. Today’s web-savvy customers are also likely to post a review of your laundry on sites such as Yelp, Merchant Circle and others that millions can read 24/7.

Wallace often hears from laundry owners who avoid sites like this because of negative reviews. But he says that sticking your head in the sand is not the answer.

“The genie is out of the bottle. The toothpaste is out of the tube. It’s out there. It’s happened. You don’t have a choice in the matter. Your business is already being discussed in this manner. You may lament it. You may like the old days, but they’re gone.”

He sees a negative online review as an opportunity for you to respond to a customer’s complaint, just as you would have had you received it at your business, and to promote your laundry’s benefits.

“Part of this is not only responding … but encouraging people to review you, because you run a great shop. That bad review is one rotten apple in the barrel. Most of your customers love you. They see you every week. You need to get that volume going too.”

5. CONTESTS AND A CUSTOMER DATABASE

Contests can increase community awareness of your business, plus enable you to network with customers (more personal equals more loyal). You can create repeat customers while also building a customer database for use in direct or e-mail marketing.

Every laundry should develop a customer mailing list, preferably one that includes e-mail addresses, Wallace says. Stay in touch with your customers through offers and information in order to retain their business; plot their locations on a map to help plan for future advertising.

And don’t be above “bribing” customers for information through raffles, giveaways and surveys.

Tomorrow in Part 2: E-mail newsletter, Google AdWords, foursquare, Groupon and more

May 29, 2012

NEW YORK — Do you know what people are saying about your laundry business?

NEW YORK — People are talking about your laundry business. Do you know what they’re saying?

The answer can spell the difference between success and failure. Positive reviews on Internet message boards help boost revenues and fatten your bottom line. Negative reviews can spike your best business plans.

“People are increasingly putting reviews online as the Internet becomes more social,” says Daniel Burrus, a business consultant based in Hartland, Wis. “All of the reviews are in the cloud and available for anyone to read.”

And read they do: For many businesses, social media are quickly becoming the best sources of new customers. Just a few of the most popular sites are Yelp, Twitter, Angie’s List, Facebook, LinkedIn, and YouTube. A recent study from Harvard Business School revealed a direct correlation between star ratings on Yelp and revenues at a business.

Why the upturn? A big reason is technology’s growing heft. “Our main computing device is shifting from the laptop to the smart phone,” says Burrus. “And unlike our laptops, our smart phones are always with us.” Smart phones are constantly getting faster at processing data. That helps people quickly post reports on their business experiences while searching for the most highly ranked providers of goods and services.

WATCH THE SITES

Watching for reviews about your laundry business on social media sites poses a challenge. Monitoring them all would take a lot of time, and time costs money.

What to do? Set up an automated search to alert you whenever your business is reviewed. Google offers the most popular of such alerts. “Google Alerts are easy and free,” says consultant Bob Phibbs, Coxsackie, N.Y. “You can create an alert that sends you an e-mail every time your business name is mentioned online.” If such alerts are too numerous, you can specify that Google send you a consolidated report once a day. (Google Alerts is at google.com/alerts).

You should also set up an alert in Twitter to let you know when your business is mentioned in a Tweet. Twitter is especially important for your online reputation because people with smart phones use Twitter all the time. Your customers are most likely already using Twitter, and you want to pay attention to what they say. (For information, go to twitter.com/alerts.)

Bonus tip: Ask your customers what Internet sites they use to find businesses like yours.

RESPOND TO NEGATIVE REVIEWS

Every business will get some negative reviews. “People gripe for a lot of reasons,” says Phibbs. “Maybe they did not get waited on fast enough, or maybe a coupon expired and you didn’t honor it.”

When your business receives a negative review, it’s important to respond with an online message that prospective customers can see, says Phibbs. “Posting a response shows you are listening to your customers and taking action.”

Avoid impersonal or canned posts. Compose your posts in words that directly address the complaining customers’ concerns, suggests Phibbs. “Personalize your message with words such as ‘I own the business with my wife Mary and we are sorry to hear you had a bad experience.’”

Your responses should also note that you are attempting to improve whatever areas the customers found lacking (cleanliness, customer service, employee friendliness, etc.). “Finally, invite the customer to contact you,” says Phibbs. “Include an e-mail address or phone number.”

Carefully written responses can turn a negative situation into a positive one. Paying attention to customers and taking action on complaints can build loyalty. You can even turn an angry person into a raving fan.

From time to time, you will run into a review that, while legitimate, comes from a customer who is simply being unreasonable. “You often have outliers on the negative side, because the unreasonable customer can be very vocal,” says Greg Sterling, a San Francisco-based Internet analyst.

“While most consumers are reasonable and will look at the consensus and not ascribe too much weight to a single negative review, it still has to be addressed,” says Sterling. Post a response in terms that illustrate the importance you place on the area the customer has addressed. Emphasize that you intend to do better in the future.

Bonus tip: Look at negative reviews as informal customer surveys that help you identify and rectify business problems.

HANDLING ILLEGITIMATE REVIEWS

Social media have their dark side: Not all negative reviews are legitimate. What do you do if you suspect a negative review has been posted by a competitor, or by a disgruntled former employee?

One thing not to do, says Burrus, is stir the pot. “Don’t create a fight and don’t incense people in ways that make them do more negative things.”

Stay positive, even in the face of unfair practices. “If the poster is a competitor, post some evidence to the contrary underneath what they wrote,” suggests Burrus. “You might say something like, ‘Here is a link to 50 customers who disagree with you.’”

And what if the poster is a former employee? “Have your lawyer contact the person to let them know they must cease and desist,” suggests Burrus. “Let them know they cannot smear a reputation without ramifications.” A legal letter can convince the person to remove an offending review.

The challenge is even greater for sites that allow anonymous postings. If a review is blatantly unfair (for example, a personal attack on an employee), you can contact the site and ask that it be removed.

Finally, there are the gold diggers. “Some people will give you bad reviews in hope that you will contact them with deals such as half off a future purchase,” says Phibbs. Don’t take the bait. Instead, post a reasonable response that conveys the actions you are taking to provide quality service.

RESPOND TO POSITIVE REVIEWS

Your good business will likely get a lot of positive reports. “It is just as important to respond to good reports,” says Phibbs. A simple “Thanks so much for the compliment” may do for a general report, but take time to address any specific topics the customer has mentioned. (It’s not necessary to respond to every favorable report once you start getting more than a handful).

Phibbs suggests printing good reports and posting them on the wall in your store, perhaps under a headline such as “Raving Fans of Our Business.” Copy them to your website and to your Facebook page as well.

Bonus tip: Don’t be afraid to ask people to post good reviews. But avoid offering rewards for doing so: Websites frown on that practice.

MONITOR YOUR REPUTATION

Google Alerts, as already mentioned, is a great service for getting a heads up on the lowdown. But you may want to invest a little more time and effort into managing your reputation. That’s where online reputation tracking services come in. “Most small businesses don’t know about the many online reputation tracking services, and just search their business names once in a while,” says Sterling. “Yet the specialized services can give you important information.”

You can have reviews sent to your mobile phone and have message threads with negative reviews tracked in real time, giving you granular control over responses. This can be particular helpful when damaging disputes break out about your business. In contrast, says Sterling, e-mails from Google Alerts do nothing more than inform you that a post has been made, and even that information arrives after a time lag.

Be aware that Yellow Pages and newspapers may include reputation-monitoring tools in advertising packages. That can reduce your costs considerably.

SUGGESTION BOX

Maybe reputation monitoring seems like more trouble than it’s worth. Keep in mind, though, that your business is at stake: More people than ever are turning to online reviews for help deciding what business to patronize.

Indeed, every online review site is a valuable suggestion box for your business. “There is a great deal you can learn from reviews,” says Sterling. “They can help you think of new products and services for your customers. Be open and embrace them.”

August 16, 2011

NASHVILLE, Tenn. — It’s no secret that millions of people, and an increasing number of businesses, interact on social media sites on a daily basis, sharing massive amounts of information.

However, the coin laundry industry lacks representation on many social media sites. And because of this, many storeowners are missing out on an effective tool to increase their business.

WHY USE SOCIAL MEDIA

As the economy continues to rebound, many coin laundry owners are still struggling to get business levels where they once were, yet many aren’t marketing their stores. To increase business, some marketing is necessary, and social media is a low-cost way to market and promote your store to millions of people. And it’s also easy and fun.

According to the Coin Laundry Association, one of the biggest advantages social media offers to consumers is a personal connection to the store. A good social media site can “paint a picture” of the coin laundry that consumers can identify with. Regardless of whether the Facebook fan has ever patronized the store, successful content on your company’s page will help create an environment of familiarity.

GETTING STARTED

Before you begin using social media, make sure your store is listed on Google Places, because many consumers use the Internet to locate businesses. You can create a free profile by visiting google.com/placesforbusiness. Follow the directions and upload a picture of your store along with the location, phone number, website and hours of operation.

Once this step is complete, if you don’t already have a personal page on Facebook, you’ll want to open an account by visiting facebook.com, and follow the directions on the right-hand side of the page. Or visit facebook.com/business.

While there are a multitude of social media sites, from Twitter to Digg, statistics have shown that Facebook is the fastest-growing and most-used social media site in the world.

USING FACEBOOK

Through your personal Facebook page, you can open a company page for your coin laundry. Click on the “Create a Page” tab at the bottom of the home page. In order for your page to be a success, you will need to recruit fans. You can accomplish this by sending a request to your current Facebook friends on your personal page.

You can also choose to create your own pay-per-click ad that will be featured on Facebook. This form of advertisement lets you create your ad, and then set your own budget in terms of how much you want to spend to advertise your company’s page on the site. You can target your ad to specific demographics as well. For example, if you live in Louisville, Ky., you can target Facebook fans living within a 10-mile radius.

As your fan base increases, you will need to make sure you’re updating your page with relevant and interesting content that not only keeps your fans coming back each day but will also drive them into your store. Plan on spending a few hours a week updating your page.

Next page: How to increase store traffice using Facebook...

August 11, 2011

CHICAGO — On Aug. 1, American Coin-Op began delivering its online advertisements through Google’s DoubleClick for Publishers (DFP) ad server. This move comes with a built-in, trusted third-party auditor of our ad impressions, and represents our next step in improving our service to our audience and advertising clients.

Our ad reporting complies with industry standards as set forth by the Interactive Audience Measurement and Advertising Campaign Reporting and Audit Guidelines. This document establishes a detailed definition for ad impressions—a critical component of Internet measurement—and provides certain guidelines for Internet advertising sellers and ad serving organizations for establishing consistent and accurate measurements.

The American Association of Advertising Agencies (AAAA) and other members of the ad buying community asked for consistent counting methods and definitions and better counting accuracy, and this project was the result.

In adopting these standards, American Trade Magazines LLC, publisher of American Coin-Op, stands alongside other leading media companies that participated in the project such as AOL, Walt Disney Internet Group, Forbes.net, MSN, New York Times Digital, Yahoo! and Google. Our partnership with Google means that we can provide our clients and potential clients with better targeting, independently verifiable ad tracking, and broader creative options. To our audience, it means more relevant content and a richer, more personalized interactive experience.

For more information on the IAB guidelines, visit http://www.iab.net/iab_products_and_industry_services/1421/1443/campaign_measurement_audit.

June 21, 2011

CHICAGO — An American Coin-Op columnist recently suggested that buying an existing business is always the way to go. “Why would anyone want to reinvent the wheel?” he asked.

Well, buying an existing business might be the way to go. Or it might not, depending on the terms of the sale, the marketplace, and your own inclination.

This column will look at the pros and cons of buying an existing business vs. building a new Laundromat.

Starting from Scratch

When you start from scratch, you get a brand-spanking-new facility. Everything looks new. All the machines come with warranties, reducing maintenance expenses. It’s true you have to iron out the kinks, but this is far better than buying an existing facility and finding out that the roof leaks or rusty water is entering your machines. Furthermore, people love to patronize a new store, to give a new enterprise a chance. Have a grand-opening celebration and gain a lot of publicity.

By starting from scratch, you create your own place. You are not limited by someone else’s vision about what a store should look like and how it can work. You start with a blank slate, and only have to fit your plans to the structure you rent or buy. This gives you maximum flexibility to do what you want to do. Sure, you could remodel an existing facility, but it might cost you a small fortune.

If you do it right, it will be cheaper starting from scratch. Generally, purchasing an existing business entails paying goodwill, the value computed by the seller for the going enterprise. Often, the terms of the sale are written so that you don’t even know that goodwill is included.

Even if the dollar amount is less for an existing store, you might have to replace equipment right away and spend extra money you didn’t count on. Or, there will be “invisible” problems that are costly. Certainly, you may get a “steal,” but perhaps there is a good reason that the sale terms are so inexpensive — namely that the store is in a bad location or that there is too much competition in the marketplace.

With a brand-new facility, you probably have a lower utilities cost. Most utility efficiency is accomplished by utilizing new equipment, owning high-efficiency equipment, selecting the best-fitting equipment, and engineering the system for peak efficiency. Yes, tap-in fees can be a concern, but, in the right situation, they can be dealt with over the long haul.

Typically, utilities are about 25 percent of your gross. If you lower that number to 23 percent, that means a $5,000 annual savings for a $250,000 operation. The savings are significant because it’s an annual reduction. It’s $5,000 every year.

Finally, building new means choosing your own location. This is probably the most critical decision one makes when opening a store. Demographics, area businesses, customer flow, visibility, adequate space, parking, ingress and egress, and the correct side of the street are all key considerations.

You can get all these aspects close to perfection, and then your store will have a better chance of winning the lion’s share of the market, even if there is long-term competition. For example, a good parking lot will attract patrons from a competitor lacking good parking. Many new patrons will want to pay you a visit if you’re a bustling business that many people frequent.

Business history is filled with newcomers becoming the dominant player. Consider Google and Yahoo! in the Internet world. A decade ago, Yahoo! was a major player. Now, Google dominates the market.

On the Other Hand

Buying an existing business may have its advantages. For one thing, you have a ready-made, turnkey operation that just requires you to unlock the door and you’re in business. You don’t have to order equipment and deal with comparing brands. If you’re lucky, you can retain the employees and reduce the chance of someone stealing from you. There’s no searching for an ideal location or negotiating with the landlord for a favorable lease. Some people prefer to enter the business this way.

You might also snag a bargain when purchasing an existing store. The owner might be desperate, and lower his price to fire-sale terms. In essence, the owner wants out and doesn’t even need to recover all of his investment.

Secondly, you might be able to purchase the store on favorable terms, such as a five-year payout. This will do wonders for your cash flow. In the past year, there have been plenty of these bargain-basement transactions.

Of course, you must work through the figures and make sure the price is lower than if you were buying everything new. If the business costs $200,000, and you could open the same store for $175,000, then you are paying $25,000 for goodwill. But if the initial investment in a comparable store would be $220,000, then you might be getting a bargain.

The equipment plays a key role in this process. If the washers, dryers and boiler are, on average, 12 years old, you need to consider the replacement cost because you may be replacing most of the machines in the next few years. Deduct that amount to arrive at the real selling price.

You could purchase a store that dominates the market, and is an effective block on competition. This is a major plus. An example of this is a Laundromat in a small, rural town. If there is one Laundromat in town, it is not likely that another will open up. Nor would someone travel several towns away to do their laundry. You can work with the customer base to increase your usefulness and win business, but you don’t have to worry about competition. So, effectively, you have a monopoly.

Whatever way you choose — starting from scratch vs. buying an existing store — make sure you know what you are getting into. Then roll up your sleeves and make your choice work.