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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.

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 24, 2012

BENTON HARBOR, Mich. — Company ranked for 10th consecutive year

BENTON HARBOR, Mich. — Whirlpool Corp. has been named one of Corporate Responsibility Magazine’s100 Best Corporate Citizens for the 10th consecutive year. Whirlpool ranked No. 69 on the magazine’s 13th annual list, which is regarded as the top corporate responsibility ranking based on publicly available information.

Last year, Whirlpool ranked No. 85. Its move of 16 spots can be attributed to high scores in the Corporate Governance, Employee Relations and Philanthropy categories.

“We are honored to be named one of the best corporate citizens for a decade straight,” says Jeff M. Fettig, chairman and CEO of Whirlpool Corporation. “Whirlpool Corp. strives to conduct business with integrity while continually keeping a diverse workplace as a guiding principle. It is a priority for us to improve communities—with sustainable and innovative products and operations, as well as giving back to the communities where we live and work.”

Launched in 2000, the 100 Best Corporate Citizens List is based on more than 318 data points of publicly available information in seven categories: environment, climate change, human rights, employee relations, corporate governance, philanthropy and financial performance.

Whirlpool has also recently been named to the Forbesand Reputation Institute’s Most Reputable Companies in the U.S. and Fortune’sWorld’s Most Admired Companies lists.

April 19, 2012

CHICAGO — Be willing to listen and make changes

CHICAGO — Many times we think we have everything figured out, that all is good because we have owned our laundry businesses for a few years and there is some cash flow. Let me tell you, that’s going be the downfall to being able to successfully sustain and maintain a business lifeline.

I am seeing businesses, in many cases, barely getting by month to month, scratching for cash because they either do nothave a business plan or refuse to listen to advice. They will not adapt like a chameleon and rethink their business plan in an ever-changing marketplace.

Do You Want Pennies or Dollars?

That’s the decision you need to make as you are running in circles trying to manage people, customers and your business. If what you are doing is not really making you and your family real money, then why are you not changing, listening to advisers or paying attention to all the red flags around you? Simply because you have had moderate success is not really being successful.

People go into business because they want to live the American dream, right? If you’re not in the financial position you desire, pick up the phone and seek advice from someone who has already been there and done it, someone with a successful track record in the industry who can help you re-think or create your business plan.

Do You Want to Be a Player or Not? 

In my 22 years of industry experience, I’ve learned that the people who are successful business owners are willing to listen, to make changes, and to build a solid team. They are willing to regularlytake meetings with their employees, be on-site to feel the pulse of what’s really happening, and then take the necessary steps to push their business over the top.

I released my first book more than four years ago and it has since gone international. I share this not to try to impress you but to empower you. I was willing to seek out and follow the advice of others who walked before me.

So ask yourself, do you want to be a player or not?

April 17, 2012

PITTSBURGH — Look at everything from location to equipment mix and store naming

PITTSBURGH — Congratulations, you’re a successful laundry owner. You have a great location, a solid customer base and well-maintained machines—but now what? It may be time to look at expanding your business and opening a second store.

By now, you know the basics of running a laundry business. Unfortunately, a complete replication of your first store may not make for a successful second store. It is important to go back to the basics and look at everything from location to equipment mix and store naming.

LOCATION

Here’s a challenge for you: don’t just find a location as good as your first one, find one better. Understand that this is no easy task and will require lots of time and research.

The first thing you should consider when looking for a location is how far away from your original store your second one should be. Carve out an area of no more than an eight-mile radius from your original store and use that as your market. Having your stores in close proximity—no more than 45 minutes from each other—allows you to easily move between stores. Also, if your stores are all close together, it can be a great way to corner the market from your competition.

Now it’s time to talk with your distributor. Since you already have a successful store, you most likely are already working with an experienced distributor. Make sure to continue to cultivate that relationship, as it can be a great benefit when looking to purchase an existing store or build a new store.

Distributors typically have information on existing Laundromats coming up for sale and will approach you to judge your interest. The distributor can easily identify whether this laundry is a potential good investment, knowing the performance and location of the store.

Rehabbing a store has its pros and cons, but can make a great second store if proper due diligence is done. A benefit to choosing a store to rehab is that utility company charges and codes are more likely to be grandfathered in, meaning you will not have to deal with the hassle of obtaining multiple permits from the city and retooling plumbing or electricity to meet building codes. This varies between municipalities, so make sure to ask your distributor before assuming this is the case.

If there are no stores for sale in your target area, it’s time to start scouting other possible locations. Get in your car. Learn about your surrounding neighborhood. Look for areas where there are many apartments or maybe even a college campus. Once you’ve identified an area, it’s time to consult with your distributor. Your distributor will be able to pull detailed demographic reports that will be able to provide you with an idea of the surrounding population near the proposed location. If the demographics look favorable, it may be time to buy the land or storefront and start your second store.

ADVANCED CONTROL OPTIONS

Whether rehabbing a store or building one from the ground up, it’s time to rely on what you’ve learned from your first store. You already know what works—now it’s time to make it even better. Look at the machines your distributor has to offer; there are probably new advancements since you last purchased equipment. It may also be time to look at investing in advanced controls if your previous store doesn’t have them. Advanced controls can be a great resource for multi-store owners.

Certain manufacturers produce controls that allow an operator to program a machine right from their PDA. With the control, you can alter the time-of-day pricing and retrieve audit data right from the palm of your hand. Reports pulled can detail how each machine performed throughout the day. If a machine is taking too long to drain or is not filling with water to the appropriate level, the report will show this. Without these reports, it may take days or weeks to catch problems like these. In conclusion, these reports help prevent wasted energy and water.

Specific controls can give owners the option of choosing from up to 30 water levels, which can save thousands of dollars a year in water and energy savings when compared to older machines without advanced controls. Customers can benefit from having up to 24 cycle selections with these controls, keeping them happy and in turn giving your store a good reputation for being technologically advanced.

THE INVESTMENT

Although the rewards and return on investment can be great from owning multiple stores, the initial investment for a second store is not inexpensive. It’s important to work with your distributor and commercial laundry machine manufacturer to develop a financing plan that is suitable to your needs. Some commercial laundry manufacturers will allow you to finance directly through them, which streamlines the financial process.

Financing through a laundry manufacturer is far better than using a bank. Manufacturers not only understand the industry better than anyone else, but can also tailor a financial solution that meets an individual laundry owner’s and/or facility manager’s needs.

Choosing a financial service provider that is unfamiliar with the commercial laundry industry can lead to unnecessary risks and costs, including overpaying for services, hidden fees, slower response to time-sensitive opportunities, and limitations on the long-term success of the business.

Another financial area to consider is the cost of employees in your new store. Many stores in the Pittsburgh area are unattended, for example, but the trend is moving toward attended stores. Customers want to be able to interact with someone when they have a problem. This is a great benefit for customers who want face-to-face interaction and for you, having the peace of mind of someone always being on-site to deal with any issues that may arise. If you do choose to open an attended store, you will need to factor in this additional cost.

If looking at an attended store, I would suggest a credit/debit card store. Although the upfront investment of a card system is more than a traditional coin system, the ROI down the line may be higher. Along with that, card systems save busy multi-store owners time since they do not have to empty coin boxes regularly, or make multiple trips to the bank on a weekly basis.

FINISHING TOUCHES

After you have all your logistics figured out, it’s time to name your store. I suggest that multi-store owners keep the same type of name for each store. Customers will make the connection between your stores; if you’re already known for running one successful business, why waste time rebuilding your reputation?

Throughout the whole process of becoming a multi-store owner, it is important to have confidence in your distributor and your equipment manufacturer. They will be your go-to source during this transition and before you know it, you could be opening your third, fourth or fifth store!

April 11, 2012

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

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

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

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

ADDING EQUIPMENT IN 2011

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

Here’s a breakdown of the 2011 purchases:

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

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

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

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

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

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

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

(Editor’s note: Some respondents didn’t identify machine sizes, so the front-loader breakdown doesn’t include their purchases. Also, the percentages do not total 100% because some buyers purchased equipment in multiple capacity categories.)

SHOPPING IN 2012

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

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

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

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

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

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

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

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

(Editor’s note: Some respondents didn’t identify machine sizes, so the front-loader breakdown doesn’t include their purchases. Also, the percentages do not total 100% because some buyers purchased equipment in multiple capacity categories.)

WE’VE GOT TROUBLE…

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

  1. High cost of utilities
  2. Dealing with employees
  3. A lack of customers
  4. Poor economy
  5. Equipment maintenance/repair issues

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

TURNS

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

UTILITIES

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

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

2012 BUSINESS FORECAST

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

Click here for Part 1.

Click here for Part 2.

April 10, 2012

CHICAGO — Thirty-seven percent have brought firearm to store

CHICAGO — How safe do you consider the neighborhood where your laundry is located? Do you think your customers or employees feel safe in your store while doing laundry or working there?

Nearly three-quarters of respondents to this month’s AmericanCoinOp.com Wire survey describe their neighborhood as “somewhat safe.” Roughly 19% say their neighborhood is “neither safe nor unsafe,” and the remaining 7.4% describe theirs as “extremely safe.”

No one who took the survey described their neighborhood as “somewhat unsafe” or “not safe at all.”

Yet, more than 40% of operators say they, an employee or a customer have been a victim of crime at their laundry. Most of these incidents involved burglaries or robberies. An employee was threatened with a knife in one case, while an attendant was pushed to the ground in another.

A surveillance system is the most popular safety-related feature or practice utilized by respondents (77.8%). Other popular choices are employees/owner watch store (48.1%), alarm system (44.4%), signage (33.3%) and some type of weapon (29.6%).

Thirty-seven percent of operators who responded to the survey have brought a firearm to their laundry. Among those who haven’t, 35.3% said they would consider carrying a firearm while there.

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

Subscribers to Wire e-mails—distributed twice weekly—are invited to take the 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.

April 2, 2012

FORT LAUDERDALE, Fla. — The conference will focus on increasing profits through business cycle changes and

FORT LAUDERDALE, Fla. — The 2012 Spring Educational Conference of the Multi-housing Laundry Association (MLA) will focus on increasing profits through business cycle changes; interviewing, hiring and evaluating employees; and the political picture of 2012.

Also, the group will bring back its popular route operator roundtable discussion.

The Ritz-Carlton Fort Lauderdale (Fla.) will play host to the event on April 22-24.

Three educational sessions are scheduled in addition to MLA committee meetings, networking opportunities and more.

Educational sessions on the tentative agenda include:

The Intersection of Politics and Policy, by Ron Brownstein, National Journal Group.

A two-time Pulitzer Prize finalist, Brownstein explains with lucid precision the complexities of American politics. He appears regularly on MSNBC programs, including Hardball, Andrea Mitchell Reports, and Morning Joe, and has served as a regular panelist on Face the Nation.

His sixth and most recent book, The Second Civil War: How Extreme Partisanship Has Paralyzed Washington and Polarized America, was published in 2007.

Talent Acquisition and Retention, by Deidre Siegel, PEAR™ Core Solutions.

Siegel is founder and CEO of an outsourced, human resources management firm that provides core competencies in behavioral analytics for individuals and in the workplace, talent acquisition strategies, and all levels of human resource support in areas of legal compliance and organizational development pertaining to policies, procedures, process, and people.

Her company has worked with teams in many organizations across a variety of industries. Clients are able to understand their unique business culture in a strategic manner, MLA says, and using this knowledge of specific and unique corporate dynamics, as well as the implementation of proper processes, documentation and communication, remain in growth mode perpetually.

Increasing Profits through Business Cycle Changes, by Alan Beaulieu, ITR Capital Partners.

Beaulieu co-authored Make Your Move, a book on how to increase profits through business cycle changes. He is president of the Institute for Trend Research, principal and managing partner of ITR Capital Partners, and an active member of ITR’s Investment Committee.

Beaulieu has been consulting with companies throughout the United States, Europe and Japan. His firm’s accuracy rate and unique position—with more than 60 years of calls throughout every major historic economic turning point—as well as his extensive understanding of business cycles and the ability to explain the implications makes his presentation unique, MLA says.

Away from the conference, attendees can take advantage of Fort Lauderdale’s art and museum tours, yacht charters, sports fishing, casinos and racetracks, and more.

The reservation deadline has passed at the host hotel, but rooms may still be available. Call 800-542-8680 for information.

MLA membership entitles each company to two complimentary registrations. Additional registrants or guests may attend at a registration fee set to cover the cost of food, beverages, and speaker expenses.

To learn how to register, call 800-380-3652 or e-mail nshore@mla-online.com.

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 27, 2012

WASHINGTON — Man convicted of robbing Laundromat twice in eight days

WASHINGTON — A jury last week convicted a Washington man of armed robbery and carrying a dangerous weapon for two separate robberies of a Northeast Washington coin laundry last summer, according to the U.S. Attorney’s Office.

Lawrence White, 41, remains jailed as he awaits his May 31 sentencing. He faces up to 30 years in prison for each of two robbery charges and up to a year for each of two weapons charges.

According to the government’s evidence, just before 6 p.m. on Aug. 14, 2011, White entered a Laundromat in the 1600 block of Benning Road NE. He went into a private office and brandished a knife at an employee, making off with several hundred dollars in cash.

Just eight days later, White returned to the laundry in the early afternoon and robbed the same employee, showing the same knife and taking hundreds of dollars in cash from a cash drawer.

During the second robbery, a surveillance camera captured White running into the office and then exiting the scene. The surveillance video led directly to White’s identification and arrest a few days later.

March 26, 2012

ELBERTON, Ga. — R&B Wire Products to offer bushel transport products to larger consumer market

ELBERTON, Ga. — California-based R&B Wire Products, a manufacturer of carts widely used in self-service laundries, is collaborating with Rehabmart.com, an online commerce company that sells rehabilitation and medical supplies, to offer its bushel transport products to a larger consumer market.

“We are very pleased to offer these bushel transport solutions from R&B Wire Products to more consumers,” says Hulet Smith, founder and CEO of Rehabmart. “From wire storage baskets to hampers, privacy screens to garment racks, and utility carts to bushel trucks, we know that all of our customers will be able to find their own storage and transport solutions from the wide variety of high-quality products R&B offers through Rehabmart.

“These products are not only helpful for healthcare, hospitality and laundry facilities, but are great to use at home, too!” Smith adds.

R&B Wire Products has made wire, tubular, poly and vinyl bushel products serving the healthcare, hospitality, laundry, janitorial supply, material handling and car wash sectors since 1946.

March 22, 2012

CHINO VALLEY, Ariz. — Two-year-old store relies on

CHINO VALLEY, Ariz. — It’s been more than two years since Heavenly Graham opened Sudz Yur Dudz. Like many Laundromat owners, Graham opened her store while pursuing another career. Owning the store offered her another revenue stream, while not taking too much time away from her janitorial business.

She approached the investment through careful planning and research. She chose a convenient and well-visited area in the Chino Valley shopping center, with favorable foot traffic.

With the location secured, Graham needed to determine which machinery would be best for her customers and her bottom line. She chose Pellerin Milnor and, through the guidance of local dealer Laundry and Cleaners Equipment Co., elected to equip the store with Milnor’s coin-operated washers and high-efficiency dryers.

In order to get financing, Graham submitted a comprehensive business plan to her bank, laying out strategies to create a positive cash flow. “The community rallied in support of a new Laundromat,” she said. “Our employees are professional, helpful and friendly, creating an excellent reputation, which will contribute to long-term returning customers.”

Using Milnor Capital to finance the equipment helped her to reduce her terms and have more funds for operational expenses.

Sudz Yur Dudz is located across Highway 89 from a senior mobile home park; many of the park’s residents rely on her store for their laundry services.

Four different machine capacities offer them and other Sudz Yur Dudz customers, including individuals and families, flexibility in choosing the right machinery based on their needs.

With approximately 1,500 square feet of retail space, there is plenty of room for customers to wash, dry and fold their laundry comfortably.

With only one other coin store in the area, Sudz Yur Dudz has positioned itself for success in this market. A few months ago, the store began offering commercial laundry services during off-hours to local restaurants, a car wash, a mid-size hotel and the local Humane Society. The program fully utilizes its equipment and maximizes the store’s revenue stream. 

March 8, 2012

PEMBROKE, Mass. — Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices. You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Interesting

What is an interesting bathroom? Well, it’s a clean bathroom with a special touch. But no one is suggesting you spend a lot of money for super-stylish Kohler bath fixtures like the ones you might see in upscale magazines.

I was once in a small bathroom with walls and ceiling painted black, sporting red sideboards plus gold-framed mirrors in three spots. My reaction was, “Wow, isn’t this something!” The homeowner said she spent about $100 to buy the mirrors at Goodwill and paint the walls and ceiling herself to create the Toulouse-Lautrec look.

I once was in a restaurant bathroom with a decoupage collage of advertisements that filled one wall from floor to ceiling. Painted in huge print on the front door was “Unisex Lavatory.”

So, how could a Laundromat bathroom be deemed interesting? It could be three pictures of colorful pastoral scenes on the walls. How about a plastic sign at the entrance that reads, “In this chamber, the most brilliant thinking occurs.” Would such a light touch hurt your reputation?

How about having a calligrapher write quotations in large Roman letters, then paste them to a green outlined foam core board that you’d affix to the walls? Some suggested quotes: “We are all lying in the gutter, but some of us are looking up at the stars.” — Oscar Wilde; “Be bold, be bold, but not too bold.” — Karen Blitzen; and “Most men live lives of quiet desperation.” — Henry David Thoreau.

Put a sign on the bathroom door identifying it as “La Pissoir” (urinal). Inside, suit up a life-size mannequin in casual clothing and beret and stand it in the corner. Think French. Or put a “WC” sign (short for “water closet”) out front and hang posters depicting British life on the walls. Have some fun.

An interesting bathroom expands the user’s experience, and just might be a reason he or she visits your laundry again. Furthermore, an interesting bathroom obligates your staff to keep it clean. You wouldn’t want that mannequin standing in squalor, would you?

Click here for Part 1.

March 5, 2012
INWOOD, N.Y. — Robert Chateau brings 12 years of industry experience to Laundrylux...

LAUNDRYLUX NAMES CHATEAU WESTERN REGIONAL BUSINESS MANAGER FOR COIN SALES

INWOOD, N.Y. — Robert Chateau is the new Western regional business manager for coin sales for Laundrylux. His territory includes Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Alberta and British Columbia in Canada.

“We have been working with Robert for a number of years and his sales skills, leadership abilities, and product knowledge are outstanding,” says Howard Herman, Laundrylux president.

robert chateauSan Diego-based Chateau brings 12 years of industry experience to Laundrylux. He learned to repair commercial washers and dryers while in the Navy. In 2000, Chateau joined longtime Laundrylux distributor Golden State Laundry Systems as service manager and worked his way up through the sales department. For the past two years, he has worked for Electrolux Professional, traveling to the Electrolux factories in Sweden and France many times for training.

“I saw a great opportunity with Laundrylux and am especially pleased that I will represent the Electrolux and Wascomat brands,” Chateau says.


SEAGA WELCOMES BACK BOWERSOX AS CHANNEL MANAGER

FREEPORT, Ill. — Industry veteran Dave Bowersox has returned to vending machine manufacturer Seaga as its channel manager for the full-line division. He is in charge of serving the company’s full-time customers and prospects.

While based in Seaga’s headquarters in Freeport, he will be working from his home in Minneapolis.

“We welcome Dave back to the Seaga family with open arms,” says Steven Chesney, Seaga CEO. “Dave is the epitome of what a Seaga employee should be: loyal, honest and ready to serve any and all customer needs.”

February 15, 2012

CHICAGO — It brings me great pain to witness landlords choking their tenants with escalating rents and offering no relief during these tough times.

I have witnessed more laundries close their doors in the past two years than I have in the past 22 years served in the coin laundry industry. Owners are faced with the potential of losing their businesses and, in many cases, their life savings because business is down and they cannot afford to pay their rent.

If you’re one of those owners, take this message as a call to action. Renegotiate your rent if you plan on surviving in this industry. Consult with your attorneys and get the help you need before it’s too late.

I’ve spoken with some landlords who are making rent concessions to avoid seeing their tenants close their doors and produce no rent at all. This is a good move—a win/win for everyone!

Of course, there are those landlords who will tell you “the lease is the lease.” Again, I suggest you get legal advice to provide the direction you need to protect you and your family.

Now is the time to buckle down and look for ways to cut your costs. Here are some suggestions for trimming the fat:

  • Lower the heat in the laundry during the winter months.
  • Make sure you are not wasting resources (water, gas or electricity). Working with an energy broker could save you a large percentage of what you might be paying.
  • Consider subletting space in your laundry to create more revenue.
  • Consider working additional hours to lower employee payroll.
  • Make sure you have energy-efficient washers, dryers and water heaters.
  • Consider acquiring refurbished or rebuilt machines when making replacement purchases.

Don't be one of the owners who will close their doors in 2012. Now is the time to take action to protect your Laundromat businesses.

February 7, 2012

PEMBROKE, Mass. — Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices. You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Let’s go over the choices one by one.

None

You will be able to tell stragglers that there’s no bathroom to save on toilet paper, but be real. Do you want your customers, who might spend an hour and a half to two hours on your premises, to have no place to go to the bathroom and wash their hands? Must they be required to ask the attendant to use the employee restroom? Even worse is forcing them to go home to use their own facilities. These options are not professional. Any restaurant that didn’t have a public restroom would soon be out of business. A Laundromat should avail its customers of this service on an up-front basis.

If your laundry is unattended, having a bathroom is a bit more problematic. Vandals might make the facility less than palatable. A compromise is to let customers use the employee bathroom when a staffer is there.

Dirty

You know the one—a filthy frosted-glass window covered with cracks, the stained linoleum floor curled and chipped at the edges, grungy toilet with a cracked top, dirty sink with permanent water stains and grimy shards of soap, rusty overhead pipes, wall surfaces that haven’t been cleaned in decades, and an empty paper towel rack above the overflowing wastebasket.

Many Laundromats have this sort of facility. It’s awful, but it’s a bathroom. To recount a line from The Odd Couple, fastidious Felix says to disheveled Oscar, “I’ve seen gas station toilets cleaner than your bedroom.” He could replace gas stations with Laundromats. The advantage here is that you can offer your customer a toilet without doing much work. You can check off the box, even though your customer might not appreciate the effort.

Clean

Here, we have relatively new fixtures, including the toilet, sink and vanity. The corner table is presentable, with contact paper carefully applied to the top. The place is cleaned every day, and the linoleum floor has been recently wet-mopped. The overhead lighting fixture casts a bright, full light. The vanity mirror is smudge-free. Maybe, there is a soap dispenser to minimize the mess. It’s pleasant, clean and up-to-date.

You are doing your job in providing a clean, presentable bathroom. Of course, you don’t want the privilege to be abused. The bathroom is intended for customers, and a sign on the door reads “For Customer Use Only.” If attended, you might require a key that can be obtained from the staffer.

If someone comes in and asks to use the restroom, you must have developed an approach to separate the customers from non-customers.

Ask if he or she is a customer. “Not today, but I use you occasionally.” Ask how often. Ask the person their name and consult a book entry (or pretend entry). If there is no entry (or you don’t recognize the person), say, “This isn’t a public bathroom, you know. If I let everyone off the street use my bathroom, it wouldn’t be fair to my customers.”

Depending on how the person reacts, decide if he or she can use the bathroom. You’ve established guidelines for usage. Next time, the individual will be less likely to stop in your place. At the same time, you’ve been polite enough to avoid offending a real customer. Have your staffers memorize the formatted approach, and you will not be bothered by excessive use.

Tomorrow: What is an interesting bathroom?

January 30, 2012

CHICAGO — Al Lautenslager is a Certified Guerrilla Marketing Coach who believes the No. 1 reason that customers leave a business is because the business in question doesn’t pay them enough attention.

Making efforts to reach customers and prospects was at the heart of his message at a Drycleaning & Laundry Institute-sponsored educational session during the last Clean Show.

Based on Lautenslager’s theory, you’re not just a self-service laundry owner, store manager or store attendant. “You’re all marketers of the business you’re associated with,” he says.

And so it is that he offered a series of suggestions from his book, what he called “a step-by-step blueprint for how to put one foot in front of the other, from a marketing standpoint.”

Develop a Guerrilla Marketing Mindset

“Every single day, whether I’m traveling on the road or working in my office, I think about this question: How am I building the awareness of my prospects and clients through the marketing that I’m doing?”

Before he goes about the work of each day, Lautenslager spends time doing three to five marketing-related things. It might be handwriting a thank-you note to a customer, brainstorming a tagline, or coming up with an idea for a new direct-mail campaign.

“You do that for three weeks and it becomes a habit, and a marketing habit is a great mindset to have in your business.”

Define Purpose for Marketing and Your Goals

“What specific activity do you want customers to take as a result of your marketing? Do you want them to call you on the telephone, visit your website, come into your place of business, enter a contest?”

Marketers define these as “calls to action.”

“Every single brochure, website, sign, sales pitch, on-hold message ought to have a call of action associated with it,” Lautenslager says. “Prospects need to be told what to do. Do not leave it to chance that they’ll know what to do as a result of your marketing.”

Identify Your Target Market

“Targeting is pretty much what you think it is. Who buys what? Where do they buy it? Why do they buy it?”

Whatever specifications you put around that target market, there exists a list for those specifications, and your list is your market, Lautenslager says. “Maybe you’re targeting a certain income level, a certain family size and a certain subdivision. There’s a list that exists for those specifications.”

Do a web search for “list broker” in your city to find companies that provide that kind of service.

Your best prospect to target is a current customer, and second best is a previous customer, Lautenslager advises.

Position Your Business

This refers to creating a “position” for your business in a customer’s mind. According to Lautenslager, Positioning authors Al Ries and Jack Trout say, “Positioning is not something you do with a product or service, it’s what you do in the mind of a prospect.”

“We want people to think of us if and when they need our products or service,” Lautenslager says.

In the Chicago area where Lautenslager lives, the freezing and breaking of water pipes during winter, especially in the middle of the night, is a real possibility. So how does Expert Plumbing position itself? By promoting the fact that “We never close.”

And don’t be afraid to promote your expertise in providing laundry and/or dry cleaning services.

“Everybody in this room is an expert in something. It’s OK to say that. Customers like to buy from experts. They trust experts. They have confidence in experts’ work. Go ahead and say that.”

Point Out Your Competitive Advantages and Benefits

Customers and prospects don’t care about you, Lautenslager says, they care about themselves and how your service will benefit them.

“So, you’d better be talking to them,” he advises. “That mean you’ve got to talk about benefits, not features. Write this down: features tell, benefits sell.”

They’re looking for benefits like convenience, time savings, organization, ease of access, immediacy, reduction of resources required, and reliability.

“At some point in time, make a list of the benefits you offer your customers and prospects. And then I suggest that you make a list of the benefits that your competition offers. If those two lists are identical, neither one of you have a competitive advantage.”

And if you don’t know what your benefits are, ask your customers. They’ll tell you.

Do Some Business Networking

“Everybody in this room, believe it or not, knows between 150 and 250 people each,” Lautenslager says.

On his website is a free report explaining how to instantly add 50 people to your network. These people include neighbors, your banker, your favorite bartender, your travel agent, etc. Lautenslager’s favorite on the list: the parents of your child’s sports teammates.

Plan for the networking events you will attend and set some goals (meet X number of people, receive X number of business cards, etc.).

“Arrive early and leave late,” Lautenslager says. “Some of the best networking happens before the meeting and after the event.”

Take Advantage of PR Opportunities

Editors love news but hate promotion, Lautenslager says, so connect your business with current events to increase relevancy.

“I suggest you do a press release every other month,” he says. “Establishing a relationship with an editor is just like establishing a relationship with a customer.

“Anytime you have a new product or service, win an award, have a new employee, new strategy, new location, editors deem that as news.”

In the end, whatever type of marketing you choose to pursue, launch what is comfortable for you and your business.

“When I say comfortable, I don’t mean just comfortable financially, I mean comfortable emotionally. You can’t do everything that I’ve talked about today. I can’t do everything I’ve talked about today. But you can pick one, two or three things you’re comfortable with and implement them.”

Click here for Part 1.

January 26, 2012

CHICAGO — In 2001, when Boeing was looking to relocate its headquarters from Seattle, Al Lautenslager’s suburban Chicago printing company offered to print free business cards for Boeing’s employees if the aircraft maker would set up shop in the Windy City.

If Boeing chose to move to Chicago, it would need new stationery, brochures, etc., all services for which the huge corporation would presumably turn to a local printer. Lautenslager issued a press release announcing the unorthodox offer.

“We wanted to get Boeing’s attention,” he says. “We wanted to market to Boeing. We wanted to create awareness, we wanted to get our foot in the door, and we wanted to beat our competition.”

A suburban newspaper printed a brief mention, while the Chicago Sun-Times’ much broader yet critical coverage characterized the offer as a bribe.

“I’m going to tell you that any PR is good PR, unless it’s an obituary,” Lautenslager says.

Four months later, Boeing decided to relocate to Chicago. Lautenslager issued a second press release: “Was it the $78 million in state tax incentives or the free business cards that got Boeing to come to Chicago?”

Nine newspapers, two radio stations and one TV station aired stories about it. One newspaper featured it on the front page.

“We generated tens of thousands of dollars of PR, of marketing and awareness, just by using a little bit of time, a little bit of energy, and a whole lot of imagination with that second press release headline.”

Lautenslager is a Certified Guerrilla Marketing Coach who believes the No. 1 reason that customers leave a business is because the business in question doesn’t pay them enough attention.

Making efforts to reach customers and prospects was at the heart of his message at a Drycleaning & Laundry Institute-sponsored educational session during the last Clean Show.

Everyone a Marketer

So what is guerrilla marketing? Jay Conrad Levinson coined the term in his 1983 book, Guerrilla Marketing, when discussing unconventional marketing methods that rely on effort and imagination rather than spending a large budget. Lautenslager co-wrote Guerrilla Marketing in 30 Days with Levinson in the 1980s, and a second edition was published in 2009.

“How do I know they’re proven?” Lautenslager says of the marketing strategy ideas he was about to present. “I proved a lot of them. I was a small-business owner for 15 years. I had to market. I had to create the awareness. I had to get new customers to stay in business.”

Based on Lautenslager’s theory, you’re not just a self-service laundry owner, store manager or store attendant. “You’re all marketers of the business you’re associated with,” he says.

And so it is that he offered a series of suggestions from his book, what he called “a step-by-step blueprint for how to put one foot in front of the other, from a marketing standpoint.”

Monday: The blueprint...

January 9, 2012

WASHINGTON — After three years of restrained growth, franchise businesses show signs of recovery in the year ahead and the Personal Services category—which includes laundry and dry cleaning services—is pegged as the growth leader, according to a report by IHS Global Insight for the International Franchise Association (IFA) Educational Foundation.

Personal Services franchises are expected to be a growth leader, with 6.2% in output growth, followed by Retail Products and Services at 6.1%. Real estate will also show growth of 5.8%, the report says.

Weak consumer spending and tighter credit standards have restrained franchise business growth, the report says.

“The forecast for modest growth is good news for the franchise industry and the overall economy, given franchising supports 12% of the U.S. private sector workforce,” says IFA President & CEO Stephen J. Caldeira. “However, the rate of growth is far below the growth trends we experienced before the recession.

“Pro-growth policies out of Washington to provide certainty to the franchise industry, such as comprehensive tax reform that lowers the corporate and individual tax rates, as well as increasing the flow of credit to small businesses by the lending community, will help to get us on a more aggressive path of growth and job creation.”

The full report is available for download here.

January 3, 2012

PEMBROKE, Mass. — Tax time is here again. You know the drill. You gather up all your paperwork, ledgers, computer reports, and the like, and drop them off at your accountant. A few weeks later, he calls, telling you to make checks out for so much in federal taxes and so much in state taxes. You’re finished for another year.

How about trying a different approach this year? Become proactive about your taxes; don’t just let the accountant do them. Try to learn from the process. In fact, suggest possible deductions. Your accountant might be a longtime family friend who has stuck by you through thick and thin, but no one cares as much as you do.

Here are a few suggestions for tax time:

File your taxes in a timely fashion. Be honest and above board. Call all inflows revenue and all expenses outflows. To do this accurately means keeping up with paperwork and maintaining the company books in a systematic fashion.

Get the payroll taxes filed, keep up with quarterlies, and turn in your personal tax return by April 15.

Pay estimates in a timely fashion. Estimates are due on April 15, June 15, Sept. 15 and Jan. 15. Estimate your annual tax liability, and pay estimates in four equal sums, both federal and state. If you don’t pay estimates on time to cover your annual profits, you will be assessed a penalty.

But the penalty is only the beginning of your problems. With this tendency to be late, you’ll probably struggle to comply with your obligation. For instance, the end of the year is coming, and you’re in a tough cash-flow squeeze, so you don’t put in the last estimates. This begins a vicious cycle of always trying to catch up. Don’t fall into that bottomless hole.

Include all mileage driven in connection with work. That includes visits to other Laundromats, trips to vendors, explorations of other markets, and even rental car costs in distant places if it is used to parse the Laundromat situation there.

Volunteer miles driven become business miles. For instance, say you conduct a free cleaning for a charity drive. All related activities are fully deductible. Pickups and drop-offs count as business miles instead of volunteer miles, because the activity helps your company’s image.

Professional subscriptions and association dues are legitimate deductions. For example, if you take several fellow association members out to dinner and you discuss your companies, you could take that expense. If you host an association party, all related costs are deductible.

Expense books purchased that help with work. For example, if you buy business or psychology books to understand employees, these are legit expenses.

Count the cost of any experiment to improve or try new processes. This might include cost of chemicals and equipment for testing out new cleaning agents.

Deduct total expenses of conventions and workshops. All charges related to your attendance at an event—flight, hotel, car rental, meals—are included. If your wife attends, her individual expenses cannot be included. But the charges common to both of you, such as lodging, can be.

If you use the Internet for research, take a portion of the monthly fee.

The costs of all education programs and workshops are real expenses.

Any payment made to your young children for working in your laundry is a deduction. Now you can employ your young children and expense their incomes. While it’s a deduction for you, they will probably not pay any taxes because their incomes fall under $3,700, the individual exemption amount.

The cost of gifts given to individuals who helped you with your business is a marketing expense. For instance, if someone gave you a lead, and it results in a new client, any giving to that individual is a valid deduction.

If you buy art and rotate it periodically in the laundry, you are entitled to expense the purchase.

If you have a space where you do administrative work regularly and exclusively at home, you can take a home office deduction. You can deduct a portion of your mortgage interest, property taxes, house insurance, maintenance, repairs, and depreciation. The portion is that square foot percentage that you use for the office plus any space you store material versus the total square footage of your home.

By regular and exclusive, you don’t have to do the work there all the time, but when you do the activity, you do it there, and you don’t do anything else there. In other words, that space is set aside for you to work at home. You might have an office in your store, but that doesn’t negate the possibility of taking a home office expense.

Many “Laundromateurs” stay clear of home offices. They don’t like the sound of the phrase, perhaps harkening back to the days when a home office would send up a red flag. But those days are long gone. With more and more people working from home, the practice has become an accepted part of the business landscape. Additionally, a home office is often a significant expense, particularly if the business owner has a sizeable house and a large mortgage. A home office could easily become a $2,000 or $3,000 deduction.

Use the time with your accountant to learn something. Examine your tax return and come back with questions before filing. Some changes might benefit you.

  • Why do we have so much depreciation?
  • What do the figures represent?
  • What is special depreciation?
  • Why did my cost of utilities go from 23% to 26%?
  • Is my wash, dry and fold business profitable?
  • Am I paying out too much to settle customer complaints?
  • Which machines need replacing?
  • Were my marketing efforts effective?
  • If I made X profits, where is it?
  • How could I make more money next year?

Make your accountant a business partner. After all, he or she is involved in many ventures as an accountant, and might be an investor or business owner. He or she could give you good advice, much like a consultant can.

Make the next tax season really count for you.

December 19, 2011

GREENBELT, Md. — A 22-year-old Temple Hills man has been sentenced to 114 months in federal prison followed by five years of supervised release for robbing a Maryland coin laundry of $13 in a January holdup.

Juamal Samuel Carroll and a co-conspirator entered No Rulez Laundromat, Glenarden, Md., and pointed a loaded shotgun at an employee. They fled in a van after grabbing the money. The employee identified the van, and county police were able to locate it a short time later. Officers attempted to stop the van, but Carroll and his co-conspirator led authorities on a high-speed chase before being apprehended.

A 12-gauge shotgun loaded with two rounds of 12-gauge ammunition was seized from the vehicle.

“The danger of an armed robbery is not measured by how much money is stolen,” says U.S. Attorney Rod J. Rosenstein.

December 5, 2011

WASHINGTON — The National Labor Relations Board has postponed the implementation date for its new notice-posting rule to allow for enhanced education and outreach to employers, particularly those who operate small and medium-sized businesses.

The new effective date of the rule is Jan. 31.

The decision to extend the rollout period from November followed queries from businesses and trade organizations indicating uncertainty about which businesses fall under the Board’s jurisdiction, and was made in the interest of ensuring broad voluntary compliance. No other changes in the rule, or in the form or content of the notice, will be made, NLRB says.

Most private-sector employers will be required to post the 11-by-17-inch notice, which is available at no cost from the NLRB through its website, either by downloading and printing or ordering a print by mail.

November 28, 2011

HARRISBURG, Pa. — Milford (Pa.) Laundromat is among 46 small businesses awarded $293,889 in grants by the Pennsylvania Department of Environmental Protection (DEP) to help them invest in energy-efficiency or pollution-prevention projects.

The business applied for and received a $7,500 grant, which will be used to purchase and install a high-efficiency boiler and hot-water heaters, according to DEP. Total project cost is $15,000.

Pennsylvania’s Small Business Advantage Grant Program provides small businesses with fewer than 100 employees 50% matching reimbursement grants of up to $7,500 to implement projects that will save $1,000, in addition to 25% annually in pollution prevention or energy-related costs.

Since 2004, the program has invested $5.3 million in 1,451 small businesses.

“This program empowers small-business owners to invest in important upgrades that make the most sense for their business,” says DEP Secretary Mike Krancer. “It gives them the opportunity to lower the costs of production, which makes them better environmental stewards and more competitive.”

Other recipients include Quality Cleaners in Lemoyne, Steininger’s Laundry & Dry Cleaning in Selinsgrove, and Murrysville Cleaners in Murrysville.

November 8, 2011

CHICAGO — For more than one-third of coin laundry owners polled in this month’s American Coin-Op Wire survey, they spend more time managing their properties each week than the average full-time employee.

A large share of owners and operators—34.9%—spend 21 to 40 hours on site, another 28.6% spend 20 hours of less, and less than 2% spend no time at their stores. But for the remaining 34.9%, they are on site 41 to 50 hours (11.1%), 51 to 60 hours (14.3%) or more than 60 hours a week (9.5%).

Most respondents—82.5%—spend at least part of their weekends on work-related tasks, while 66.7% spend some nights tending to their store(s).

Roughly 45% spend at least part of their days off on work-related tasks, while 34.9% spend a portion of their holidays. Twenty-seven percent acknowledged spending some “family time” on work. Only 11.1% report they do not work at or for their stores during any of these times.

Nearly 70% of respondents do not employ a laundry manager, and some 52% say they never spend a week or more away from their store(s). Nearly 59% believe their presence at their store(s) improves business; 36.5% say they’re not sure, and 4.8% say their presence doesn’t improve business.

More than three-quarters of respondents (77.4%) have surveillance equipment installed in their store(s), and 63.5% says this equipment allows them to monitor store activity remotely.

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

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

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