Content about Health

WILLISTON, N.D. — A four-hour drive northwest from Bismarck, N.D., will lead motorists to the city of Williston, where a modern-day gold rush has incited oil miners to flock to the area to mine for natural gas trapped beneath the state’s water table in the Williston Basin.

While the oil business has brought a financial boom to the Williston area, a new necessity has emerged, roused by the influx of workers and their families: “greaser” laundry facilities.

In the past year, The Minnesota Chemical Co.’s Terry Anderson has had a hand in answering the area’s laundry needs by designing and building two laundries: one in neighboring Watford City (population 1,759) and the other in Tioga (population 1,230), each about an hour’s drive from Williston.

DESIGNATED MACHINES

For greaser laundries, it’s important that certain machines are designated specifically for greaser use, according to Anderson. “You can’t have somebody do their greaser laundry, and then somebody comes [after them] and puts their white sheets, towels and regular clothes in, because greaser laundry machines can never get all of [the grease cleaned].”

At his Suds Laundry in Watford City, N.D., Robert Trupe has designated two machines for his attendants to process commercial accounts, and six for self-service, specifically for greaser laundry.

“In the wash/dry/fold area, we just have two of them that we put big, yellow labels marked ‘Greasers’ so the attendants know which machines to use for greasers,” says Trupe. “And then we put the same type of signs out on the self-service side for the customers.”

Considering the blend of mud, oil and grease that covers workers’ uniforms and garments, what cleaning procedures are needed? Many of the garments face a variety of washes, Anderson explains, that are adjusted at different settings than traditional laundry loads.

“What you need to have [is] a pre-wash and a wash where you can inject detergents,” says Anderson. “Normal clothes can have a wash-dry-spin in about 24 to 30 minutes. These, you might set the water levels a little higher, and then extend that wash cycle longer.”

“The greaser machines are programmed for longer wash cycles [or] additional rinses, so they all have two washes and two rinses,” says Trupe of his store, adding that those machines use water at 140 F.

Despite all this, there are times when garments have to be re-washed because of the condition they are in, he adds. “Once in a while, if you get a really heavy load, some of the oil is pretty tough to get out because it’s thoroughly saturated with this heavy grease that they use in the oil fields.”

Employees at Charles Barton’s Clean Jean’s Express Laundry in Tioga, N.D., have had to re-wash garments as well, despite the pre-soak and different washes that they use to process garments. “We do our best to run several types of cycles through them, depending upon what the grease is. Sometimes we have to extend the wash cycle, sometimes we have to soften the water. Sometimes we have to use more soap than what you ordinarily would use, sometimes we use a different mixture than what we’d ordinarily use.”

Barton’s chemistry background as a consultant for pharmaceutical companies comes in handy at times, but he also learns from his employees which combinations of industrial detergents work best. “We’re refining the process,” he says.

Trupe has also used trial and error in finding which detergents to use at his store. “Finding the right mix of chemicals [is] a little bit of trial and error until you get all of your machines [and] cycles set up. It’s taken us a few months to get it down [but] we have help from Minnesota Chemical and some other vendors that were able to help us get the right mix of chemicals.”

As a safety precaution, Trupe requires his employees to wear rubber gloves and face shields while handling the strong detergents.

EQUIPMENT MAINTENANCE

Equipment in greaser laundries endures a heavy toll, what with the concoction of grease and industrial-strength detergents on top of hot temperature settings and numerous cycles run daily.

“If you don’t clean them, it’s not good on the equipment [and] certainly it won’t last as long,” says Barton. “We take quite a bit of pride in regards to our equipment, so we clean it on a routine basis.”

In addition to wiping and cleaning machines multiple times throughout the day, Barton also practices running a no-load cycle to ensure that washers are thoroughly cleaned. “Oftentimes we’ll have to run a special concoction […] through the washers to make sure that they’re all clean. And we also clean the [dryer] filters on an everyday basis.”

For its part, Minnesota Chemical sends out technicians to service machines on a regular basis, Anderson says. And to ensure that store owners know how to properly take care of their machines, the company hosts educational sessions on maintenance standards.

“We have these service schools [where] we talk about the things [owners] need to do [for] preventative maintenance to make sure [the machines] are cleaned out and make sure everything is working,” says Anderson.

Besides the maintenance requirements, greaser laundries face another challenge: the lingering odor of grease in dryers.

Trupe says that using certain chemicals helps reduce the smell. “There are a couple of different chemicals that we use depending on the application. There are deodorizers, but then there are other chemicals that we can add that [are] additional cleaning agents that have a nicer smell.”

INVESTMENT AND EXPANSION

Regardless of the special needs that their facilities present each day, Trupe and Barton both say it was worth moving into the area.

“We’ve been hearing a lot of good things,” says Barton. “We certainly wouldn’t be at the level that we are in, particularly with our wash-and-fold business, if we didn’t provide high-quality service.”

In addition to growing Clean Jean’s wash/dry/fold service, Barton is in the process of opening an Internet cafe and gourmet coffee shop at the front end of his facility.

Trupe says opening Suds Laundry has “definitely been a good investment.” Though he’s considered looking at neighboring towns for other business opportunities, he says he would first like to establish his Laundromat before pursuing other ventures.

“We don’t want to expand until we get our systems and processes nailed down in this facility,” he says. “Once we make sure that this thing can run completely smooth, then we can take the systems and processes [and] plug them into the next business.”

ARDMORE, Pa. — The so-called “fiscal cliff” tax package recently signed into law renewed more than 50 temporary tax breaks through 2013, saving individuals and businesses an estimated $76 billion. For the owners and operators of small- and medium-sized laundry businesses, there is good news and bad news contained in the fiscal cliff tax laws.

First, the good news: greater certainty in taxes. The owners and operators of laundry businesses have grown used to many longstanding tax breaks but they also have had to get used to the uncertainty of whether they will be renewed each year.

On the downside, in addition to a 3.8% Net Investment Income (NII) tax and a 0.9% Additional Medicare tax that, thanks to the Health Care and Education Reconciliation Act of 2010, began in 2013, many laundry owners discovered they are subject to new taxes. Single individuals with incomes above the $400,000 level and married couples with income higher than $450,000 will pay more in taxes in 2013.

EQUIPMENT WRITE-OFFS FOR PROFITABLE OPERATIONS

The American Taxpayer Relief Act extended through 2013 the Tax Code’s Section 179 first-year expensing write-off for equipment and business property purchases. Now, the higher expensing limits in effect in 2011 have been reinstated for 2012 and extended for expenditures made before Dec. 31, 2013. Thus, a laundry business can expense or immediately deduct up to $500,000 of expenditures in 2012 and 2013, subject to a phase-out if total capital expenditures exceed $2 million.

The tax break that allows profitable laundry businesses to write off large capital expenditures immediately—rather than over time—has long been used as an economic stimulus by our lawmakers. While 100% “bonus” depreciation expired at the end of 2011, today the new law allows 50% bonus depreciation for property placed in service through 2013.

Some transportation and longer-lived property are even eligible for bonus depreciation through 2014. If bonus depreciation had not been extended, the 2012 tax year would have been the final year in which substantial first-year write-offs for buyers of business automobiles and light trucks were available.

To be eligible for bonus depreciation, property must be depreciable under the standard MACRS (Modified Accelerated Cost Recovery System) and have a recovery period of less than 20 years. Section 179 first-year expensing remains a viable alternative, especially for small businesses. Property qualifying for the Section 179 write-off may be either used or new, in contrast to the bonus depreciation requirement that the taxpayer be the “first to use.”

Leasehold improvements and building improvements generally must be depreciated over 39 years. The tax law provides a special 15-year, straight-line depreciation break for qualified leasehold improvements, restaurant property, and retail improvements. Naturally, there are quite a few restrictions, such as the lease must between unrelated parties.

Qualified leasehold improvements also qualify for the 50% bonus depreciation. In fact, qualified leasehold improvements, restaurant property, and retail improvements up to $250,000 may qualify for Section 179 expensing. And, best of all, these provisions have been extended for property placed in service before Jan. 1, 2014.

MORE, MORE AND MORE

The Work Opportunity Tax Credit (WOTC), which rewards employers that hire individuals from certain target groups, has extended to Dec. 31, 2013, and applies to individuals who begin work for the employer after Dec. 31, 2011. Under the revised WOTC, laundry businesses hiring an individual from within a target group are eligible for a credit generally equal to 40% of first-year wages up to $6,000.

An S corporation is a pass-through entity and not usually subject to income taxes. It is, however, liable for the tax imposed on built-in gains or capital gains. The tax on built-in gains is a corporate-level tax on S corporations that dispose of assets that appreciated in value during the years when the operation was a regular C corporation.

The new law extends a relaxed version of the provision limiting the “recognition period” to five years, but only for “built-in gains” recognized in 2012 and 2013. Thus, if a laundry business elected S corporation status beginning Jan. 1, 2007, it will be able to sell appreciated assets it held on that date without begin subject to a hefty tax bill.

Check back Thursday for the conclusion!

Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult a financial adviser for advice regarding your particular situation.

OMAHA, Neb. — Every business requires a steady stream of revenue in order to be successful. In the vended laundry industry, guaranteeing a set amount of cash flow can be difficult, but adding commercial accounts can make a baseline easier to establish.

With proper preparation and marketing to neighborhood businesses, store owners can either start or grow their pickup and drop-off accounts to add revenue, providing their store with stability for the long run.

PREPARATION

Before adding commercial accounts, it’s important for store owners to look at their equipment mix. The last thing you want is to have a commercial account take up too many machines and force self-service customers to wait to do their wash. 

Another precautionary measure that a business owner should take is tracking the store activity and identifying peak times. If the store is consistently busy and there is not ample time during the day to process linen from commercial accounts, owners may want to consider adding a shift.

Another option is to add larger machines strictly for use in serving commercial accounts to a specific section of the store. This way, the commercial accounts will not affect self-service business.

After surveying what equipment you have available to dedicate to these accounts, it’s time to determine who will handle the workload.

When choosing attendants to work for your store, you want to make sure they perform their tasks to your standards. Proper training will help ensure optimal client satisfaction. For example, your attendants will need to know how to properly fold linens and how to interact with customers.

It is also a good idea to have written directions that employees can follow, especially if certain accounts have special laundering requirements.

If you plan on laundering specialty items, reach out to your local chemical supply agent. This representative will be able to ensure you have the right chemicals for specific industries, such as fire or healthcare. As with any decision, ask for a few different opinions so you can make sure to deliver your customers what they deserve.

SOLICITING BUSINESS

Once the preparations are in place to handle commercial accounts, it’s time to grow the business. One of the best ways you can go about this is by finding a niche market to serve in your surrounding community. For example, positioning yourself as the laundry specialist to service spas or providing quick turnarounds for entertainers in town is a great way to build your reputation.

An important aspect to any successful business is having and maintaining an informative website. Make sure your website is up to date and emphasizes your commercial-accounts expertise. It should be easy for potential customers to find information about your services and how to contact you. To see if your website comes up in search results, run a few searches as if you were a potential customer. If your competitors appear before you in these searches, you may need to look at optimizing your website content.

As a business owner, you must always sell your store to others. Make sure everyone you meet knows what business you offer. You never know who could become your next customer.

It’s also important to reach out to businesses within your community. For example, as an owner of five stores, I contacted human resources departments at various companies and offered pick-up and delivery services for their employees. One client uses this as a benefit to employees, and we gain an extra customer. Additionally, some of those companies may have other laundry needs, which can turn into more business for you.

Along with networking with those you come in contact with, it’s a good idea to get involved with community groups. Look for opportunities to join committees within your town’s chamber of commerce or Rotary Club; they provide great ways to meet other business owners. Remember, it all comes back to selling yourself and your business.

COMPETITION

If your community has a large population, you are bound to run into some competition. Linen services may offer customers a lower price than you, but here’s where your service and industry niche come into play. When discussing new business opportunities, it’s important to highlight what you can offer the potential customer. Many linen services do not deliver on weekends, but if you have the capacity to do this, use this as a selling technique. This is important when working with hotels that cater to weddings and large events during weekends.

SERVICE

No amount of marketing can make up for bad service. Service should be the cornerstone upon which your business is built, and this is something your employees should embody. The best referral will always come from a satisfied customer.

To accomplish great service and grow your commercial account business, make sure you have the equipment, employees and time necessary to provide superior results. These accounts can provide your store with a significant amount of dependable business and help you become more profitable.

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.

ATLANTA — Southern Automatic Machinery Co. (SAMCO) has changed its name and is moving today into a larger, more customer-friendly location, the company says.

The company officially changed its name to the acronym that customers already use: SAMCO.

“Our company has history in the Atlanta area, and rather than lose part of our heritage by developing a new name, we decided to become more modern and use our initials,” says John Sugg, president and CEO of SAMCO.

The company has been operating as Southern Automatic Machinery Co. since the 1940s, when it was founded. SAMCO got its name because it was located in the South, and at the time, washing machines were referred to as automatic machines.

SAMCO’s new, 10,400-square-feet facility is located at 133 N. 85 Parkway in Fayetteville, Ga.

“These changes were made with the customer in mind, and we believe it will strengthen our existing relationships while helping to forge new ones,” Sugg says. “We’ll remain the company our customers have come to know and trust, and [we] look forward to continued success as we approach 2012.”

SAMCO is a commercial laundry distributor serving the coin laundry, multi-housing, hotel, education and healthcare markets. It is the exclusive provider of Speed Queen laundry equipment and technologies in parts of Georgia, Alabama and South Carolina.

When someone invokes the old saying, “My business is going to the dogs,” you know times are tough. But times may be changing.

ROCKY HILL, Conn. — When opening a self-service laundry for the first time, many owners discover the challenge of multitasking. Nancy Sousa’s challenge is maintaining a successful business while dealing with being a seven-time cancer survivor.

The Town Line Laundromat, Rocky Hill, Conn., opened in July. About seven weeks prior to the opening, Sousa, diagnosed with breast cancer in 1994, discovered that she had metastatic breast cancer in her bones.