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May 8, 2012

FRANKFURT, Germany — IPSO “builds” working vended laundry at Texcare trade show

FRANKFURT, Germany — IPSO is showcasing a fully operational vended laundry at Texcare International 2012. Visitors to the booth are able to see how the machines process clothing and linens and how advanced controls help owners increase energy efficiencies.

Vended laundry offers a high return on investment, little or no employee overhead and a relatively small initial investment, according to IPSO, making it an excellent business investment for any entrepreneur. And a vended laundry can be customized to accommodate almost any cultural and geographic factors, the company adds.

The display includes eight of IPSO’s new HD softmount washer-extractors and three DR tumblers. The washers  operate using the Cygnus standard control and are connected to a central pay system. The tumblers feature 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, IPSO’s parent company. “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.”

Texcare International—the World Market for Modern Textile Care—runs through Wednesday.

May 3, 2012

NEW BERN, N.C. — Built entirely on a "green" platform

NEW BERN, N.C. — New Bern lies about 110 miles east of Raleigh and about 90 miles northeast of Wilmington. Named after the capital of Switzerland, it is the second oldest town in North Carolina and home to some 30,000 residents.

Within easy walking distance of the New Bern waterfront are more than 150 homes and buildings listed on the National Register of Historic Places, hotels, restaurants, banks, antiques stores and specialty shops.

New Bern is known for a couple of other important reasons: Not only is it the birthplace of Pepsi-Cola, it is also home to arguably one of the most technologically advanced and energy-efficient Laundromats in the country.

Owned and operated by Anna and Richard Blair, the Clean & Green Laundry is built entirely on a “green” platform. The entrepreneurs see the long-term growth and profit potential of the coin laundry business, and are committed to making sure that every aspect of their new business is environmentally friendly, minimizing use of energy and water, while providing their customers with the cleanest garments possible.

An example of their commitment to energy efficiency is a state-of-the-art geothermal unit with solar panels to heat the laundry’s water.

Energy Conscious Around the Clock

Before moving ahead with a plan for their vision of Green & Clean, the Blairs wanted to know what the community thought. They surveyed many local residents in an effort to learn what they would like to have in a new Laundromat. Overwhelmingly, customers stated their preference for an energy-conscious laundry, and since the town is active 24 hours a day due to around-the-clock manufacturing, distribution and retail operations, they wanted one that was safe to visit at late hours. To that end, Clean & Green boasts a sophisticated security system.

Since approximately 2,500 square feet of space was available, a floor plan was developed that gave an open feel with a design that welcomed customers. In addition to providing the self-service washing and drying equipment, Clean & Green offers fluff-and-fold options, too.

The Blairs carefully evaluated the various equipment choices available to them before deciding upon Maytag Commercial Laundry equipment. With more than 50 years of unparalleled industry experience and having one of the longest product warranties in the commercial laundry industry, Maytag offers a variety of energy-efficient washer and dryer models from which to choose.

Working closely with their Maytag distributor, Tri-State Technical Services, the Blairs sought the perfect balance of laundry equipment that would accomplish their green objective.

Clean & Green selected an assortment that includes high-efficiency top loaders, front loaders, rigid-mount front-load washers (30-, 40- and 60-pound capacities), multi-load stack dryers, and single-pocket dryers (50- and 70-pound capacities).

With this assortment of equipment, no matter what garments need to be cleaned—even bulky items—in virtually any quantity, customers’ needs are met quickly, efficiently and with the best cleaning value, the Blairs says.

Ease of use was one of the reasons they chose Maytag washers that feature one-touch cycle selection; an automatic detergent, softener and bleach dispenser; front controls; flexible wash options; and shorter drying times due to high-speed extraction.

The dryers sport commercial-duty door handles; stainless steel top, front and sides; and a solid die-cast door-locking assembly.

Besides the look of the equipment, Clean & Green also wanted to furnish the store to make the customer experience pleasant. Modern change machines make the purchase of laundry cycles quick and easy. The bulkheads and equipment bases are also state of the art, and the various carts and tables make the preparation of loads and post-cleaning separation and folding a comfortable task.

An inviting color scheme welcomes customers. While waiting for their garments, patrons can relax in an outdoor patio while their children enjoy a special play area. Free Wi-Fi, televisions and a complete vending area offering a variety of refreshments are available 24/7.

Financing Package

US Capital Corp., a specialist in commercial laundry equipment financing and the financing partner for Maytag Commercial Laundry, assisted Clean & Green in getting started.

Working closely with the Blairs, US Capital provided a custom financing program designed to maximize the couple’s return on investment over the term of the equipment finance period. In any new business enterprise, conserving cash is essential, and US Capital designed a financing package that did just that.

Not only did US Capital provide the financing for the Maytag equipment, the company also handled financing of the equipment’s installation and important required “soft costs” such as the change machines, carts, tables, bulkheads and equipment bases, as well as the geothermal water-heating unit.

Location, Location, Location

Clean & Green Laundry’s customers find getting to the business quick and easy.  Located on the west side of New Bern, the Laundromat features two wide entrance-and-exit drives with a center turn lane for easy access.

Dr. Martin Luther King Jr. Boulevard is a major four-lane highway coming in and out of town, and drivers have an easy view of Clean & Green thanks to dedicated signage.

With more than 3,000 households and 3,000 renter-occupied households within a three-mile radius of the laundry, Clean & Green is positioned well for today and the future.

April 30, 2012

CHICAGO — Maintenance schedules and other opportunities

CHICAGO — The specter of ever-rising utility costs should be enough to spur the average laundry owner to track this expense and explore ways to minimize it.

In response to a series of questions from American Coin-Op, Gary Dixon, national sales manager for Huebsch, and Kent Walters, national sales manager for Maytag® Commercial Laundry, discuss the role that tracking energy usage and maximizing its effectiveness plays in a successful self-service laundry, and offered some important tips for corralling costs.

Often, the battle against rising utility costs starts with your equipment.

Q: What is the average life expectancy of today’s washers and dryers?

Dixon: Life expectancy will vary depending on machine usage, installation, preventive maintenance and other factors. However, it is not uncommon for laundry owners to get 12-15 years of life out of their machines.

Walters: The average life expectancy of today’s single- and multi-load washers is seven to 10 years. As a result of fewer moving parts, single- and multi-load dryers typically have a slightly longer life expectancy of 10 to 12 years. If washers or dryers are used more or less frequently, life expectancy fluctuates.

Q: How much impact can following a regular equipment maintenance schedule make in a store’s efficiency?

Walters: Store owners who want to maximize equipment performance must regularly perform proactive and preventive maintenance tasks. In washers, cleaning equipment and surrounding areas, tightening bolts that hold machines in place, and looking for leaks, checking belts, bearings, and seals for standard wear and tear, etc., are important. By performing regularly scheduled maintenance, store owners are less likely to incur a major breakdown, costing them additional money for parts and downtime. When maintaining dryers, it is critical to keep vents clean and make sure the dryers have enough make-up air.

Dixon: By following a recommended maintenance schedule, the laundry owner is ensuring that their equipment is operating at optimum efficiency. This translates to lower utility costs and keeps down time to a minimum. The result is happier customers and more profit.

Q: If a store’s energy efficiency begins to decline, where should the owner first look to make changes?

Dixon: The first place to look is in the washer-extractor control software. Are the water levels set where you wanted them? Is the water temperature different than where it was? Is the software notifying you of potential leaks?

Walters: If energy efficiency begins to decline, the first place a store owner should investigate is the dryers. Specifically, an owner needs to ensure all ventilation is free of lint, which can cut down on the amount of air getting to the dryer, as well as make-up air.

Q: Does water usage impact energy efficiency, and vice versa?

Walters: Yes, water is a big expense for store owners and using newer, low-water-use washers can save a lot of money in both water and sewage savings. High-spin-speed washer-extractors are necessary to maximize cleaning performance by spinning out additional water from laundry so dryers don’t have to work as hard to dry the load.

Dixon: It most certainly does. The amount of water in each bath and the number of baths in a cycle has a direct impact on water and sewer costs. Equipment designs that minimize wasted water below the wash cylinder will also have a favorable impact on water usage. Water-level adjustability is critical for optimizing water settings at a minimum level that is still acceptable to your customers.

Q: How can a store owner “train” their customers and attendants so their laundry’s energy efficiency is optimal?

Dixon: In any business, the culture and message that is communicated comes from the top down. If you are adamant with your employees about maximizing efficiency and provide a mission statement and guidance to them for realizing your goals, you will create the culture. This will, in turn, be communicated to your customers.

Walters: Having a trained attendant who can show the customers the proper way to use the equipment is always the best. Signage is another great way to train customers and attendants on use of machines, proper amount of detergent, operating instructions, etc. Signage should include simple-to-follow instructions located in easy-to-read places.

Q: Besides laundry equipment choice and usage, where are some other opportunities to shore up energy efficiency?

Walters: Store owners should obtain an energy analysis of the store through their local laundry equipment supplier to help determine areas that need improvement. In addition to equipment, owners should consider incorporating energy-efficient options, such as high-efficiency water heaters, T-8s, electronic ballasts, light sensors and task lighting.

Dixon: There are many variables that impact energy efficiency. Some things to consider: alternative sources for energy needs, type of water heaters, choice of lighting and fixtures, window tinting, the thermostat setting, and even landscaping are just a few things to look at.

Q: To whom may a store owner turn for assistance in improving their store’s energy efficiency?

Walters: Whether shopping for new equipment, looking to upgrade existing equipment, or needing some assistance related to a store’s laundry operations, it is important to connect with a reliable, established distributor for guidance. The best laundry distributors are those that have a long history in the business and have received positive reviews for the customer service they provide.

Dixon: The relationship a laundry owner has with their local distributor can pay dividends into the future. The local distributor is well versed in what is available from the equipment manufacturer. They also have an intimate knowledge of the area they serve.

Q: Do you have any other comments to add regarding energy efficiency in the self-service laundry?

Dixon: Over the past several years, many laundry owners have postponed upgrading their equipment to products that are more energy-efficient; this is certainly understandable. However, when the time comes and it makes good business sense to do so, it is important to not just look at the price of the products. It is also important to look at the cost of ownership of the equipment and energy efficiency is a major factor in this cost.

Click here for Part 1!

April 18, 2012

EL DORADO HILLS, Calif. — Laundry donates services in exchange for green actions

EL DORADO HILLS, Calif. — Paradise Laundry is partnering with Recyclebank® to reward people for taking everyday green actions. Through the reward partner program, Paradise is giving away free laundry services.

A coin laundry uses water, natural gas and energy, so when Deborah Dower and her husband decided to open a Laundromat, she vowed to do whatever she could to help green the industry and preserve natural resources.

Recyclebank Account Manager Kevin Levy explains the concept. “It’s really pretty simple; once you have gone to our website and created an account, you select green actions you want to take—like pledging to use less energy, or recycling, or learning to live greener—and you get Recyclebank points for it.”

The points can be used for rewards at local and national retailers and online. In the case of Paradise Laundry, 50 reward points earns a $5 “wash club” card to be used toward wash, dry, or drop-off services.

Paradise Laundry opened its first coin store in Citrus Heights, Calif., in March 2010 and added a second in Roseville, Calif., last September. The company plans to add more “earth-friendly” locations in the future.

April 3, 2012

PEMBROKE, Mass. — Just like your business grows one customer at a time, so you improve your operation by implementing one little idea after another.

PEMBROKE, Mass. — Just like your business grows one customer at a time, so you improve your operation by implementing one little idea after another. In time, your business becomes a different entity. It is little changes over time that makes the difference. Here, then, are a number of little ideas I’ve seen in different Laundromats that aren’t generally used, or little ideas told to me by others, or even little ideas that popped into my head.

HANG A PURPLE NEON SIGN IN YOUR FRONT WINDOW

Nothing attracts attention quite like purple neon. The sign could say “Open 6 to Midnight” or “We Clean Your Clothes” or simply “Laundromat.” Passer-bys will take notice, and the identification could result in new customers.

PUT A SANDWICH BOARD ON YOUR FRONT SIDEWALK

Have it professionally made. Offer a feature or a service or a price break. Better yet, put a rail on the sides of your sandwich board so ads can be added and removed at will. People walking by will take notice. You never know when this might mean something.

ANNOUNCE THAT YOU OFFER HIGH-QUALITY EQUIPMENT

Whenever you purchase some new equipment, put up a sign in your front window that reads “New Washers/Dryers” and “State-of-the-Art Equipment.”

One of the most common complaints about Laundromats is malfunctioning equipment. Coins get stuck, machines stops working, dryers have no heat, and washers don’t rotate clothes, that sort of thing. So, if you can become known as an operator who keeps his equipment in fighting trim, replacing older models regularly, this will give you an advantage in the market. The front-window sign reinforces that impression.

PLACE A WOODEN BENCH OUT FRONT

Give your customers a comfortable place to sit while waiting for their laundry to finish. Who knows, maybe two strangers will strike up a conversation. Maybe even people will become…friends. Laugh if you will, but who among us has not walked into a Laundromat with the hope of meeting someone special and finding romance. It is possible in such an environment because it’s hard to put on airs when you are doing a mundane task. I submit that if self-service laundries could further this image, they’d boost their patronage by 50%.

But whatever, a long bench out front is a nice place to wait on a mild, sunny day.

SELL THREE SIZES OF LAUNDRY BAGS

Laundromats that don’t sell laundry bags are missing a sales opportunity. Most Laundromats sell only one size, but different families have different needs. So, sell three sizes—at different price ranges of, say, $6, $8 and $10—and win extra business.

OFFER A DEAL FOR WASH-DRY-FOLD SERVICE

Most “Laundromateurs” charge a per-pound price—say $1 per pound. The customer does 15 pounds and pays $15. But how about incentivizing the offer? The first 8 pounds will cost the customer $8, and each additional pound will cost 69 cents (with a minimum order of 8 pounds). That way, the customer feels he/she is getting a deal. The same 15-pound order will cost $12.83 (8 pounds X $1 + 7 pounds X 69 cents). You’re losing $2 on this sale, but you will gain more total business.

For one thing, the customer will be happy to save money (in his/her mind) and will give you more laundry in future orders (“after all, it’s only 69 cents a pound”). Customers who haven’t tried your wash-dry-fold service will say, “What the heck, I might as well use their service instead of wasting my time here.” The loss in unit-sale dollars will result in total greater revenue. That is always the way sales incentives work.

HANG A LARGE CLOCK IN YOUR STORE

Sure, most people have cell phones and can just look at their gadget of choice to see the time. But not all of your customers have them. Why not make it easier for everyone to know what time it is? It is just a service you should provide.

GIVE MACHINES NAMES, NOT NUMBERS

Some of you don’t assign any machine identity. Others number their machines. How about giving each machine a name? You could name them after celebrities: Clooney, Madonna, Eastwood. Or professional athletes: Manning, Woods, Ortiz. Or just funky names: Orville, Fritz, Miranda. It’s a whimsical touch that might bring a smile to the face of your customer who comes to you and says, “Miranda isn’t working.”

SELL A VALUE CARD

Offer $10 worth of laundry for $8. Giving the customer a break is always a good strategy. It makes the customer appreciate you that much more. When someone has a problem, they’ll be more forgiving. When a new Laundromat opens up that is closer, your customer will remain loyal to your store.

PAINT A MURAL ON YOUR EXTERIOR SIDE WALL

Have an exterior wall that’s just a white rectangle? Select an artist, who, for a moderate sum, will paint an interesting mural the length of the side. What subject? If you are located in an ethnic neighborhood, choose a scene depicting the “old country.” If in a dull commercial area, paint a group of smiling, larger-than-life faces. If the spirit moves you/the artist, a vivid abstract will do. The point of the effort is to draw attention to your building, and thus to your Laundromat.

You ever have someone call up and ask, “Where is your place?” If you do, all you have to say, “I’m the building with the water mural.” Plus, you become an arts supporter, and that’s something you can use to rope in the arts community as customers.

SET UP A GLASS DISPLAY OF YOUR MERCHANDISE FOR SALE

Include all the detergent products in their colorful boxes, along with stain stick products, laundry bags, and whatever else you peddle. With a display case attractively arranged, patrons will have a look. You never know what might happen. If you sell soap bars (as an add-on), they might buy. They might purchase a box of detergent for next time. If you have a Laundromat decal, they might purchase that. The first rule of retail sales is to make it attractive.

If any of these ideas float your boat, give them a try. Even better, give them all a try.

March 29, 2012

PLYMOUTH, Mass. — Taking care of customers is Job No. 1 for store owner Neil King and his staff

PLYMOUTH, Mass. — At Mayflower Laundry, located in a former shopping plaza, it’s all about providing good customer service, says owner Neil King.

“We take care of our customers, that’s number one. We have a clean place. We are open seven days a week, 6 to 10. There’s always an attendant on duty. We have the right mix of machines, to let customers do their laundry in a hurry if they want to. We offer personalized wash, dry and fold. We have pickup and drop-off to offer maximum convenience.”

As a result, Mayflower takes in $360,000 in revenue annually. The company earns a profit out of that volume by keeping a rein on expenses—doing 25% of its own repairs, holding down utilities to 20% of volume, and having no debt. It helps that the operation depends little on marketing, rather relying on word of mouth to generate most of its business. Finally, rent plus fees are a reasonable 11% of volume.

The 2,000-square-foot Laundromat has a transportation company and a health club as plaza neighbors. It is right off the main road and has unlimited parking. Inside, the facility is clean, spacious, with many individual workstations. A ceramic-tiled waiting room contains padded seats, magazines, as well as children’s toys. Framed paintings adorn some walls. A glass-walled office at the entrance is where management and staff do their paper work. This placement allows close monitoring.

Two 50-pound dryers and 36 30-pound dryers, all from American Dryer Corp. (ADC), are positioned along one wall. Mayflower’s washers, manufactured by either IPSO or Continental Girbau, include two 75-pound front loaders, eight 40-pound front loaders, five 25-pound front loaders, six 25-pound high-speed front loaders, two 40-pound high-speed front loaders, and two conventional top loaders.

Several vending machines, including a soft drink machine, a snack machine and gum machines, stand alongside the seating area. “I don’t make much out of the Coke machine, but I fill my snack unit by going to BJ’s (Wholesale Club) and I do OK,” King says.

1,800 WASH-DRY-FOLD POUNDS WEEKLY

Keeping the customers happy largely falls on the shoulders of King’s manager, Michelle Ligue. She and her staff of four part-timers are responsible for maintaining clean premises, solving customer problems, and keeping the flow of wash-dry-fold work going. The staff processes 1,800 pounds each week at $1.10/lb.

“I’ve been here 12 years and I know most of the customers,” Ligue says. “And I know 90% of wash-dry-fold customers’ phone numbers. It’s important to keep up with the work, including in-store customers, wash-dry-fold work, cleaning, and the paperwork.

“I train them [her staff] to have a system, do one customer at a time, plan ahead as to which machines to use. The worst thing is to confuse orders. For this to work, it’s necessary to be a multitasker, because a staffer might have four things needing attention at once. We each do our own customers’ wash-fold-and-dry work, so we make sure their stuff comes to them the way they want it.

“For instance, I have a woman customer who owns a lot of rental property. She color-codes everything. She is very particular about the folding. I make sure I give her exactly what she wants. It makes a difference in staffers’ take, for 75% of wash-dry-and-fold customers tip.”

As for hiring, Ligue doesn’t hire anyone too young. An applicant should have some previous laundry or hotel experience and must be used to doing physical work to be considered. Ligue says she can tell if a person is going to make it based on the first hour of training. She is not opposed to letting people go after a day.

EXPANDING ON PICKUP AND DELIVERY

King is doing pickup and delivery for eight customers and is in the process of expanding that business. “It’s good business because it is priced at $1.35 a pound, and it gives us more to work with,” he says. “The key is to keep the customers bunched together and to develop an efficient route of pickup and delivery.” He is placing a series of eight ads that will run in the newspapers of nearby wealthier communities to build up clientele.

“Price isn’t a problem,” says King. “Many prospects are two-career households and they want the convenience and are willing to pay for it. We even have customers come in here who have washers and dryers at home, but use us because they can do all their laundry in an hour and a half. We focus on convenience in this portion of our business.”

Mayflower also does a big business in comforters because the bedding is too big for conventional machines. Cleaning dry mops for municipalities is another specialty.

Having a clean facility is key to a self-service laundry’s success, according to King; he believes customers won’t use a dirty Laundromat. At Mayflower, there’s a cleaning checklist for every shift—morning, noon, and night. Dryer lint traps are cleaned three times a day, because the presence of lint inhibits air circulation and retards drying.

King attributes the ability to control expenses to having new equipment. “Our utility costs run 20% of volume, which is 5% less than industry average. Newer machines are highly efficient, three-phase machines. It also helps that all dryers are powered by gas.”

King motivates his staff by paying them 20% of the wash-dry-fold business that they do. This keeps them turning out good product. Finally, it helps that everything is owned. Mayflower operates with a $50,000 equity line of credit, but doesn’t owe a cent on the investment.

With the company well positioned in the Plymouth-Kingston-Duxbury market, King has no plans to open another operation. Instead, he wants to build up drop-off and pickup service and continue relying on his staff to run the enterprise. This way, he only has to spend a few hours a day at the laundry and can devote more time to his real estate and other business interests.

“It’s a good business because you don’t have to be there, and you can still make money,” King says.

March 20, 2012

BISMARCK, N.D. — Laundry owners differ about willingness to

BISMARCK, N.D. — Oil field clothes can tear up a washing machine. Several laundry businesses have had to close their doors to workers but others are building their businesses around the boom.

A sign on the door of King Koin Laundrette Car and Dog Wash at 2125 E. Thayer Ave. reads “Because of odor and residue problems, we no longer allow oil field clothes in this establishment.” Owner Mike Walsh hung it there about two years ago when damage to his washing machines and dryers became too much.

“We tried for about three years,” Walsh said. “Now we refer them to somebody else when they call ... It was just getting out of hand.”

A similar sign hangs at Interstate Laundry and Carwash at 1438 Interstate Loop. Customers can be charged for washing oily clothes at Boulevard Laundromat at 1310 E. Boulevard Ave. A new machine can cost as much as $10,000 and the upkeep became too high as more oil field workers made their way to Bismarck.

Walsh said the gloves the workers wear are saturated in oil and it was getting left behind in the washers.

“It wasn’t a good fit for us,” Walsh said. “We had to protect our other customers so when they bring their stuff in, they don’t get their stuff ruined.”

Walsh also is short on dryers. It can take as long as an hour and a lot of cleaning supplies to get one back in working order after oil field clothes have been in it.

“The dryers are the worst because it just bakes in there,” he said.

Soap and Suds Laundry Mat at 122 W. Bowen Ave. has opened its doors to the rig workers, though. Owner Louis Baltrusch thinks he is the only self-service Laundromat to allow oil field clothes in Bismarck.

“Why shouldn’t I work with them?” Baltrusch said.

It just takes a lot of soap to make it work.

“Before, guys would come in and use the top loaders and leave a mess behind,” he said.

Baltrusch now has three washing machines at the front of the Laundromat that he asks rig workers to use. He sees at least 30 to 40 workers each week.

“It’s really picked up the last couple years,” he said. “I’m going to have to get some more of them because they’re used so much.”

Interstate Laundry and Carwash used to have machines set aside for oily clothes too, but had to stop when the number of oil field customers increased.

Baltrusch watches for any workers as they come in the door to tell them which machines to use and what to do.

“If I see somebody coming in with a pretty dirty tote, it’s a pretty safe bet he’s a rig worker,” he said.

Baltrusch has oil field customers put two scoops soap to the washing machine in each of the first two rinse cycles. Then he has them take a towel and wipe it down when they’re finished.

“You could put in a white comforter right after and not have a problem,” he said.

Baltrusch said the water in the washer looks like mud during the first rinse cycle, but by the final cycle the water is clear. The oily clothes are then clean and don’t mess up his dryers.

Rig workers can drop off their oily clothes at Arrowhead Cleaners and Laundry Inc. at 1140 N. Third St. The company has two older machines that it uses. Turrito’s Dry Cleaners at 1041 E. Interstate Ave. and 1131 E. Main Ave. and Dakota Dry Cleaners at 820 E. Broadway Ave. do not take oil field clothes.

With very few places in Bismarck taking oil field laundry, many workers are dropping their clothes off in other towns on their way home and picking them up on their way back to work.

“I have a lot of guys call me and ask if I take oil field clothes,” said Melvin Pirkl, owner of Superior Laundry Cleaners in Dickinson, N.D. “They say we just came from Bismarck and they won’t let us.”

Pirkl said his business has more than doubled because of the oil boom. It really picked up for him about a year ago.

“I’m so busy, I don’t know which way to turn,” he said. “I have laundry bags sitting in front of me and I don’t know what to do first.”

Pirkl said he even comes in to work at night to try to get caught up. The biggest problem he faces is equipment damage due to overload.

(This article originally appeared in the Bismarck (N.D.) Tribune and is posted here by permission. You can find the original article here.)

March 15, 2012

WALTHAM, Mass. — This is the third time the company has received the honor

WALTHAM, Mass. — Mac-Gray Corp. has once again been awarded Whirlpool’s Energy Advantage Award, the third time the company has received the honor since the award began in 2006.

“We are delighted to have been selected to receive this prestigious award, which reflects our strong commitment to both technology innovation and environmental sustainability,” says Stewart D. MacDonald, Mac-Gray CEO. “We believe that an environmentally friendly approach to business and cost-effective customer solutions are not mutually exclusive.”

Mac-Gray deployed the most ENERGY STAR®-rated washers and dryers of any Whirlpool distributor in 2011, Mac-Gray says. “Mac-Gray remains the top provider of laundry facilities management to colleges and universities as a direct result of our well-established position as a ‘green’ company,” MacDonald adds.

“Whirlpool Corp. is pleased to announce this award,” says Robert English, Whirlpool’s general manager of Global Commercial Laundry. “Mac-Gray stands out as a company dedicated to energy conservation. They have long been the industry leader when it comes to the conversion of laundry facilities from coin to their various card technology platforms, reducing both operational expenses and the CO2 emissions associated with the collection of coins, while increasing customer satisfaction.”

March 13, 2012

CHICAGO — Next major change for industry is predicted to be

CHICAGO — The self-service laundry industry has some work to do on its image, based on the results of this month’s AmericanCoinOp.com Wire survey.

Nearly half of the respondents to the unscientific survey—47.4%—don’t believe the self-service laundry industry presents a good image. Roughly 26% do believe the industry presents a good image, and the remaining 26.3% are unsure.

Sprucing up of stores by their operators would be the best thing to happen to the industry in 2012, according to 50% of respondents. Another 27.8% believe having fewer stores would be best. Roughly 17% think implementing industrywide price hikes would be the best thing that could happen.

As far as naming the next major change in this industry, 47.4% of respondents believe there will be no major changes in the next several years. Technology will play a greater role in their businesses, according to 31.6% of respondents.

Approximately 26% say that smaller laundries will gradually die out, while 15.8% believe that laundries will offer a broader array of services. None of the respondents see the emergence of a strong franchise operation.

Respondents also had the opportunity to comment on what they expect from their business in 2012. Several comments related to increased growth (at least two operators hope for 10% increases) while other operators just hope they can weather the economic storm and withstand what they believe will be a tough year. One operator wants to improve his/her customer service.

The Wire survey presents a snapshot of readers’ viewpoints at a particular moment, but 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.


 

March 1, 2012

CINCINNATI — In an effort to publicize the environmental and energy-savings benefits of washing laundry in cold water

CINCINNATI — Coin laundry owners and operators may want to follow the progress of a new strategic partnership between Procter & Gamble and the Alliance to Save Energy, a nonprofit organization that promotes energy efficiency worldwide through research, education and advocacy.

Their collective effort will be to publicize the environmental and energy-savings benefits of washing laundry in cold water. The Alliance will work with P&G’s natural resource education initiative called Future Friendly to provide consumers with the information they need to convert from hot/warm-water washing habits to cold-water washing.

Heating of water is a major use of energy. When doing laundry, heating water can account for up to 80% of the energy used per wash load in the United States. By moving to cold water, Americans could reduce CO2 emissions by up to 11 million metric tons annually, P&G and the Alliance say.

A major barrier to adopting cold-water washing habits is the consumer worry that washing in cold water will not clean as effectively as warm/hot water. To combat this notion, a P&G detergent specially formulated to perform optimally in cold water will be showcased.

P&G Future Friendly will work with the Alliance as part of an Earth Day-focused campaign that encourages consumers to change their laundry habits for the better. Featuring a Facebook sweepstakes, pop-up events and media activities, the campaign will utilize Alliance-provided data and consumer-friendly language to illustrate the environmental benefits of cold-water washing and drive consumer action.

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?

February 1, 2012

FALL RIVER, Mass. — American Dryer Corp., which has manufactured dryers for the commercial coin-operated, on-premise and industrial laundry markets for nearly 50 years, has officially entered the commercial washer market, the company announced.

“We now offer the same quality you expect from ADC in energy-efficient washer-extractors,” says Joe Bazzinotti, the company’s president and CEO. “After nearly five decades of providing superior drying solutions, it simply felt like the right time to offer a companion for them—EcoWash is just that.

“At ADC, we want to be able to provide the same quality and innovation in a complete package.”

ADC designed and tested its EcoWash units to ensure the best quality and key features to meet even the toughest demands, the company says. Simple controls and a selection of rigid-mount (90-200 G-force) and freestanding, high-spin units (350 G-force) can match a laundry specific’s needs.

January 4, 2012

CHICAGO — The cost of iron for new products is going up dramatically. Meanwhile, increasing utilities cost and escalating rent are eating up laundry profits.

I have been researching the best way for you to maintain your existence in this industry. When purchasing machines, you must seriously look at refurbished washers and dryers as an option.

The cost to purchase refurbished equipment is well under 50% versus buying new. The average “life cycle” for most owners to stay in this industry is three to five years. What’s the point of digging yourself into a hole you may never be able to dig yourself out of?

Now, the newer machines are more energy-efficient and offer warranties, which is important. But if the refurbished or rebuilt machines are purchased from a reputable company that stands behind the quality of its work, you will come out ahead, bottom line.

Recently, I did some consulting for an investor who decided to go 100% refurbished for his remodel. He saved about 58% of the total cost of going new, or more than $165,000.

Now, if you do the math and calculate what your monthly payment would be on the additional expense of buying new equipment, you are looking at eating right into your bank account big time.

Many laundries are closing across the United States, mainly due to high rents that need to be adjusted. If you’re just getting into the game, you’d better plan on doing some good negotiating to get your rent reduced to a level that will help keep your business going.

If you’re looking to stay in the game long term, and this is going to be your new life, then I recommend that you look at new products, especially if you’re planning on building a new Laundromat.

December 29, 2011

WESTLAKE, Ohio — TravelCenters of America, which operates TA and Petro Stopping Centers in 41 states and Canada, has begun rolling out the most modern self-service laundry equipment on the highway, the company says.

TravelCenters’ 190 laundry rooms in company-operated locations today contain nearly 2,000 washers and dryers that will be replaced with new machines before the end of March.

Laundry payment stations will be added at 98% of its locations to provide customers the optional convenience of paying with credit or debit cards, in addition to the traditional cash payment option.

The payment station can notify drivers via text message when their washer and dryer cycles are completed.

The equipment rollout will coincide with the addition or replacement of folding tables, hanging racks and other equipment.

“We’ve taken a chore and made it simpler and more efficient,” says Tom O’Brien, TravelCenters President/CEO. “Not only will these advanced machines shorten the time it takes a guest to do a load of laundry, the new systems should also increase the availability of machines for all of our guests.”

TravelCenters will be offering promotional rates to credit/debit card users for 30 days after the new machines are installed.

November 1, 2011

CHICAGO — Simply put, an outlook is an expectation for the future. But no one has the ability to see the future, so the best you can hope to do is to gather as much pertinent information as possible, prepare yourself for what you think will come, then have the flexibility to adapt your business to what actually comes your way.

As the ocean waves wash away the remnants of 2011, there are reasons to be optimistic that the self-service laundry industry will continue to bounce back in 2012. But that optimism will be tempered by a lagging economy and ever-present high unemployment rates.

In speaking with experts around the industry, it’s clear that an operator’s best course of action in 2012 will be a continued emphasis on running an efficient operation and taking whatever opportunities are available to promote their business.

PAST PERFORMANCE AND FUTURE RESULTS

While past performance is no guarantee of future results, it’s certainly a good indicator. From an operator’s perspective, business in 2010 was better than it was in 2009, according to our 2011 State of the Industry Survey.

Forty-two percent of operators reported an increase in gross dollar volume in 2010 compared to 2009. That was up nearly two percentage points from the previous year. The average 2010 business increase was 10.8%, up from 7.9% in 2009.

But 58% of respondents to our unscientific survey saw their laundry business decrease in 2010. That was two percentage points less than 2009, but a significant portion overall nonetheless. It’s apparent the recession that economic experts say officially ended in summer 2009 was still being felt last year.

There were also reasons for optimism on the supply side. Nearly half of respondents to our 2011 Distributor Survey said their business was better in 2010 than it was in 2009. Better yet, nearly two-thirds predicted in July that 2011 business would be better than 2010. Those whose distributorships 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.

IMPACTS OF 2011

Dick Ruel, national sales manager for Whirlpool and Maytag Commercial Laundry, says the continued sluggish economy and the “exodus of 1 million Hispanics” since the recession began have had the biggest impact on our industry.

People are doing laundry every other week now instead of every week, he adds.

The rising cost of utilities is having a major impact as well, says Setomatic Systems’ Jeff North, who owns the Newport (N.H.) Car Wash and Laundromat.

“While energy-efficient machines and hot water heaters are almost a necessity now, they simply can’t make up for the enormous increases in costs,” he says. “Water and sewage has gotten to the point in many municipalities that it has passed electricity and fossil fuels as the most expensive utility cost.”

His municipality is at approximately $15 per 1,000 gallons and is slated for two more 10% hikes in the next two years, North says.

In the South, where Raymond McMurry owns Pat’s Washtub in Lawton, Okla., the biggest impact on his business came from the weather.

“In 2010, we had bad ice storms and power outages, (and) therefore great sales because we had power. Hard to beat in the first half of 2011 with good weather.”

Second was the shaky economy. “We have seen a major dip in full service (wash/dry/fold, comforters, pressing), and self-service is on the increase. Commercial accounts are increasing somewhat due to outsourcing to cut expenses.”

Larry Larsen has more than 30 years of experience in the ownership, management and construction of Laundromats. “The continued severe recession with high employment and a loss of home-construction jobs has had the biggest impact in Southern California. Our unemployment rate hovers around 14%. If you’re not working, you’re not getting your clothes dirty.”

Another Californian, Andy Wray of ACE Commercial Laundry Equipment, says there are fewer laundry customers to be had because many people have migrated elsewhere to find work and a lower cost of living. And laundry owners there are fearful of losing even more customers by increasing their prices.

“Prices on utilities in the Laundromat have gone up at an alarming rate, and it has come to the point where owners just simply can’t afford to absorb the increases any longer. Capacity and volume have now officially made way for pricing and margins.”

Tomorrow: Attracting business in 2012…

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 4, 2011

NASHVILLE — Star Distributing Commercial Laundry Equipment is now offering the Wascomat, Electrolux and B&C Technologies product lines in Georgia and Alabama, the distributor says.

“We are excited to be expanding our operations to Georgia and Alabama with the B&C Technologies, Electrolux and Wascomat lines,” says Michael Davis, president of Star Distributing. “The expansion of our product lines will position us well for growth in Georgia and Alabama.”

Laundrylux distributes both Wascomat and Electrolux products. Wascomat creates economical machines found in neighborhood Laundromats. Its coin-operated machines help laundry owners save on water, energy and gas, the company says. Electrolux is well known for its high-end commercial washers and dryers.

B&C Technologies provides an array of on-premise laundry equipment from washer-extractors to tumblers to commercial ironers.

“We are looking forward to speaking with commercial laundry businesses in Georgia and Alabama about these great new products,” Davis says. “This is a great opportunity for us to help commercial laundry owners invest in and optimize their return on investment.”

September 29, 2011

CHICAGO — Over the past year, I have seen more born-again laundries than ever before. The banks are leveraging—or, should I say, overleveraging—the requirements to secure deals, making it too risky for investors looking to build a new coin laundry.

But with an existing marketplace and leasehold improvements in place, opportunity swings in favor of rehabbing an existing Laundromat. That’s not to mention lowering the risk factor and the financial demands of owning a business.

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 upside when the competition and demographics are taken into account.

Fix It Up, Then Focus on Marketing

Once you have zeroed in on your location, make sure you do things right. Don’t get caught up in trying to rehab the laundry with all-new machines. I recommend that you fix what still has plenty of useful life, and then look to purchase rebuilt or refurbished machines. This will cut your expenditures about 50% and make for a much better ROI at the end of the year.

After your laundry has been given the makeup/facelift and its machines replaced, your focus must shift to marketing and more marketing. You can figure that for each family your campaign brings into your store to stay, they will spend about $500 per year—plus another $200 if you have over-the-counter sales, vending, and packaged goods.

This doesn’t include drop-off laundry sales, so if you have the space to fit this service into your program, it could contribute another 10-30% to your bottom-line earnings.

Enlist the Right Help

Finding the right people to help you do the deal is critical. Not to be underestimated is the value of enlisting someone with his or her finger on the pulse of the industry to ensure the best possible results for your success.

Do your homework; do business with someone who offers a full-service company to support you 24/7/365. The mindset should be that money never sleeps, and the company you decide to work with better have the same philosophy. Beware of scammers who will mislead you by telling you whatever to make a deal. Dealing with anyone who is not committed to your success is like playing with a house of cards: it will come tumbling down, no matter what.

September 27, 2011

LONDON — It wouldn’t be unusual to see coin-op washers and arcade games in the same laundry, but what if they were one and the same?

Lee Wei Chen, an art design student attending Kingston University in London, has designed a video game that involves doing the laundry.

His “amusement washing machine” resembles an arcade-style video console, but the bottom half is a washer. Chen linked the circuitry of the two, so the washing cycle is dependent on the gamer’s progress.

Players insert three coins, which gives them three “lives” and turns on the washer. If the player fails to progress beyond a certain level, the washer doesn’t move to the next stage in its cycle until more coins are added.

Chen’s device was part of the university’s display during the London Design Festival over the weekend.

Do you think something like that would ever go over in the States? If so, parents might finally be able to take advantage of all that time their kids spend playing video games.

September 19, 2011

FAYETTEVILLE, Ga. — As a vended laundry owner, you know that utility costs are one of the top three expenses for your business. By replacing your out-of-date equipment with newer, energy-efficient machines and technologies, however, you can reduce those expenses and increase your profits.

Over the past decade, manufacturers have invested heavily in research and development to produce the most efficient and advanced equipment on the market today to help make your store more profitable.

Most laundry owners find that by retooling a store, they can increase profits up to 30%. Often, owners can command a higher vend price because they’ve made a significant investment in upgrading their store. Customers will frequent the laundry more often because of the newer, modern look, which will also attract new customers.

While many business owners are still hesitant to take on business improvement projects, there has never been a better time to do so than right now. By providing customers with the best equipment, your store will surely outperform the competition.

Top Loader vs. Front Loader

Washing machines have changed over the years. Many laundries are still using top-load washers. These machines typically use about 31.5 gallons of water per cycle. By switching to high-efficiency front loaders, water usage will be greatly reduced. New high-efficiency, front-load washing machines use only about 10.9 gallons of water per cycle, a 20.6 gallon decrease. The reduction in water alone will save your store at least 50% or more a year.

Replacing top-load washing machines with high-efficiency front-load machines is an easy upgrade. Front-load washing machines require the same plumbing, electrical service and footprint as a top loader.

Washer-Extractor Updates

Improvement in washer-extractors has also made these larger machines more attractive to store owners and the customers who use them. Newer machines have been redesigned to be flexible, offering significantly more options for the end-user.

For example, some washer-extractors offer a four-compartment dispenser that allows customers to add two detergents, bleach and fabric softener, all at the beginning of the cycle.

The major change is in the control platform. Washer-extractors purchased in the late 1990s and early 2000s only offered three settings—hot, warm or cold. With newer, advanced controls, these machines can be programmed to help make your store more profitable while offering customers more options. Cycle modifiers allow you to set premium prices for medium- and heavy-soiled clothing that needs to be washed longer. On average, at least 20% of customers choose premium wash cycles. This equates to a 4-5% increase in washer revenue.

Newer controls can also be programmed to give a free wash or a reduced wash after a predetermined number of cycles. This offers the opportunity to differentiate a store for marketing purposes, while also generating loyalty and excitement.

For the owner, advanced controls offer unparalleled ability to reduce water and energy costs through enhanced programmability. One of the most significant features that newer controls offer is the increased number of water-level options.

Typically, each fill within a given cycle can be adjusted on a scale of 1 to 30. You won’t want to compromise customer satisfaction, so make sure you try out different water levels to determine which ones are a good fit for your store and your customers. As utility costs continue to rise, this feature will be essential. You can adjust water levels to reduce the store’s monthly water and sewer bill.

Tumblers

A decade ago, natural gas was a low-cost commodity. But like other sources of energy, the cost of use continues to rise. Because of this trend, manufacturers have invested heavily to upgrade their dryers and tumblers to make them more efficient so that you can keep your operating expenses low.

Some single-pocket tumblers feature an axial airflow process that ensures heated air comes in contact with the load at the optimum time in the tumble process. They’re built with high-performance burners that ignite instantly, providing the desired temperature quickly and distributing heat evenly and efficiently.

In addition to the efficiency benefits, these advances also will contribute to improved throughput because customers won’t need to extend drying cycles during busy times.

Commercial-Quality Products

If you decide to retool your store, or even replace just a few pieces of equipment, make sure you’re choosing equipment that is manufactured for commercial use.

Some of you may have acquired existing stores that utilize machines designed for home use with a vended coin box, which means they’re more likely to require more maintenance and have a shorter lifespan.

For true success, use equipment manufactured by a company that has a legacy of providing machines and technology that stand up to any commercial challenge and that is the most profitable to own.

Equipping for Great Outcomes

Upgrading your machines to higher-efficiency equipment will help your store increase profits and lower operating costs. It will also infuse new energy into your business and generate excitement among customers.

There are finance programs available to help you make business improvements, and even substantial tax benefits if you act soon.

If you’re not sure where to start, contact your local distributor.

September 14, 2011

TUSCALOOSA, Ala. — Titus Coin Laundry Equipment Co., a turnkey provider of coin laundry systems, reports that it has completed an overhaul of the laundry center in the Forrester Gardens Apartment Complex.

Titus completed the 900-square-foot renovation in four days, installing 12 new Speed Queen washers—one of which is a high-efficiency, handicapped-accessible, 18-pound front-load model—and 12 Speed Queen dryers. Titus and Summit Housing Partners hosted an open house for the complex's residents after the project was finished.

“New properties are always exciting as we get to develop a new relationship within the community,” says Robert F. Titus, account executive. “We had an impressive turnout for this renovation’s open house, allowing us the chance to meet many of the local residents. This opportunity to interact with the actual users of our equipment provides a lot of feedback, which aids us in future system deployments.”

September 8, 2011

COBLESKILL, N.Y. — The Tide Loads of Hope mobile laundry program was in New York last week to provide free laundry services to victims of Hurricane Irene. Tide officials say that, while it may not seem like much, having clean clothes can make a big difference to the people trying to clean up their homes.

Working with the American Red Cross, the Tide Loads of Hope mobile laundry program provided free, full-service laundry to relief workers and residents of New York who were in need of resources and support following the damage caused by the hurricane. These residents and workers were encouraged to drop off their laundry to be washed, dried and folded, free of charge.

The Loads of Hope program was created in 2005 to provide much needed free laundry services to families affected by Hurricane Katrina. Inspired by the resilience and spirit of the people of New Orleans, Tide expanded the Loads of Hope program and has since helped families affected by disaster in California, Texas, North Dakota, Tennessee, Kentucky, North Carolina, Alabama and Missouri, the company says.

Today, the program includes the Tide Loads of Hope truck outfitted with 32 energy-efficient Frigidaire Affinity washers and dryers. Collectively, Tide has washed over 44,000 loads of laundry for more than 32,000 families impacted by disasters since the program launched.

People across the country can help support Tide Loads of Hope by purchasing a Tide Loads of Hope vintage tee by visiting www.tideloadsofhope.com. All profits from the tees go towards helping families affected by disaster, Tide says.

August 8, 2011

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:

  1. 2
  2. 0
  3. 1
  4. 4
  5. 5

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:

  1. 0
  2. 6
  3. 5
  4. 10
  5. 12

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:

  1. 40
  2. 30
  3. 15
  4. 12
  5. 37

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 …

August 4, 2011

OSHKOSH, Wis. — Coco and Louie Lin, owners of Sunshine Laundry, a vintage mom-and-pop corner laundry in Philadelphia, are the winners of Continental Girbau’s Oldest Washer Contest. The contest debuted as part of Continental’s 15th anniversary celebration, says company President Mike Floyd.

Sunshine Laundry utilizes eight washer-extractors that span three decades of Girbau history. A rare trio of 30-pound-capacity Golder Girbau washers—manufactured in the mid- to late 1970s—represent the workhorse ancestors of several of today’s Continental Girbau models.

“The Golder Girbaus are over 30 years old and still running strong,” says Russ Arbuckle of Wholesale Commercial Laundry Equipment SE. “That’s a real testament to the quality of these machines.”

In addition to the three Golder Girbaus, the unique neighborhood laundry is also outfitted with three 40-pound Girbau washer-extractors, exported to the United States under a private label 23 years ago. These six older Girbau machines sit near their newer counterparts—two 30-pound Continental washers.

The laundry’s previous owner, Montha Thong, discovered the old Golder Girbaus for sale at a neighboring coin laundry. She called on Arbuckle to inspect the washers prior to their purchase.

“After I saw the condition of the machines, I was in shock,” says Arbuckle. “The Golder Girbaus ran great, despite three decades of continuous use.” He assessed their condition and advised the upgrade of minor parts.