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Content about Laundry

May 14, 2013

SALISBURY, Md. — Multi-store owner moves commercial business into newly constructed industrial laundry facility

SALISBURY, Md. — By successfully serving small commercial accounts from one of his two coin-operated laundries, Mitch Wyatt nurtured a reputation that today has him handling the laundry needs of major hospitality, healthcare and food and beverage clients. Recently, to meet increasing production needs, Wyatt moved his commercial business into a newly constructed industrial laundry facility here.

The Quality Linen Services building turns out 1,700 laundry pounds per hour, using minimal labor, water and energy — giving Wyatt the opportunity to draw new clients and boost profits.

DEVELOPING COMMERCIAL ACCOUNTS FROM COIN LAUNDRY

“I serviced five hotels, two assisted-living facilities, one university, and two restaurants out of one washer at my coin laundry,” says Wyatt. “We used a 55-pound-capacity Continental E-Series Washer that would maintain a temperature of 140 degrees and stay at that temp. I was getting stuff so clean, my clients were amazed.”

Once cleaned, tablecloths, linens and napkins were pressed and finished using a Continental Flatwork Ironer. Wyatt’s staff then folded, stacked and delivered the items to clients.

PRODUCTION NEEDS SURGE

All went smoothly until Wyatt secured a five-year contract with a local hospital. “I knew I needed significant industrial equipment to fulfill growing production requirements,” he says.

So, he sought help from Operations Manager Doug Colonna, who holds 15 years of industrial laundry experience; Deke Sheller of Fowler Equipment, a laundry equipment distributor in Baltimore; and Joel Jorgensen, vice president of laundry equipment manufacturer Continental Girbau.

The 10,000-square-foot industrial facility required careful planning, a partnership of experts, and a mix of highly efficient industrial laundry equipment engineered for bolstered productivity, according to Wyatt.

DEVELOPING AN INDUSTRIAL LAUNDRY FROM SCRATCH

“We worked with the engineer constructing Quality Linen’s building and all elements of laundry design, construction and utilities,” says Jorgensen of the project. “We went on to define specific laundry production needs, the equipment mix, and solidified financing over an eight-month period.”

In the end, the new building featured a Girbau Industrial Continuous Batch Washing system capable of processing 13,600 pounds in an eight-hour shift.

The facility’s powerhouse is its seven-module Girbau Industrial TBS-50 Eco-Tunnel with four-stage water reclamation, water filtration and drain-water heat recovery. Complementing equipment includes a Girbau Industrial ICP3 Incline Loading Conveyor, SPR-50 Press, Dual-cake Delivery Shuttle, three ST-100 Dryers, a PSN 80 single-roll gas thermal ironer, FT-LITE Folder, AP LITE Stacker and an FT-MAXI triple-sort dry goods folder.

Two Continental Girbau CG-120 Dryers, and two Continental E-Series washer-extractors (55 pounds and 90 pounds, respectively) round out the lineup.

CONTINUOUS BATCH WASHING

The system not only boosts laundry productivity to 95,200 pounds per week using a single shift, according to Wyatt, it takes just one employee to operate and manage, is stingy on water, and produces high-quality results.

Key to Wyatt’s equipment decision was his need to properly manage and process laundry for a variety of accounts. “Unlike most of our competitors, we provide rental service, as well as service for clients with customer-owned goods,” he says. “We required equipment programmable by customer, so items would be properly cleaned according to each client’s unique needs.”

Check back Thursday for the conclusion!

May 2, 2013

SPRINGFIELD, Mo. — Finding right partner is key to realizing high ROI

SPRINGFIELD, Mo. — As an entrepreneur in the laundry business, you’ve either invested, or plan to invest, a significant amount of capital toward opening a Laundromat. You want a high return on your investment, and the first step toward accomplishing this goal is to select the right distributor partner.

There are specific skills and experiences that a distributor should possess in order for them to qualify as an optimum partner. Making the right decision today could mean the difference between profitable outcomes and financial losses.

LONGEVITY

When choosing a distributor, make sure that the company has an established history of providing equipment and services to Laundromat owners, and is financially stable. Most company representatives will start their sales process with a download of the business’ history. Usually, if a distributor has a long history of experience, it is financially stable and will be there to support you long after your store has been open.

Besides knowing when the company opened, it’s important to ask, “How many vended laundries has your company sold or rehabbed within the past five years? You’ll learn whether the company is more product sales-driven or a full-service shop. You’ll want to choose a distributor with a lot of experience in building new stores and total rehabs rather than one with a focus on one-off machine replacements.

These full-service distributors will be able to offer you tours of existing stores, which will allow you to see their work product and talk to their clients about the business relationship.

SERVICES

Before entering into a contract with a distributor, make sure you know the full spectrum of services that will be available. Remember, you’re looking for a partnership – someone who can help you not only build your Laundromat, but also provide maintenance services and post-sales support.

COMPETITIVE ANALYSIS

Before you build a Laundromat, your distributor should conduct a full analysis of the market where you will be providing services. An experienced company will provide information on demographics, competition, location options and revenue potential.

FINANCING ASSISTANCE

If you’ll be financing your Laundromat, it’s critical to ensure you have the right financial partner. Distributors often have commercial laundry manufacturing partners that provide in-house finance programs. Their financial teams have decades of industry expertise and are dedicated to providing high-quality, laundry-focused financing. They will act as a full-service lender, with progressive programs, resources and services designed to support you as you build your laundry business.

The best in-house financing services control the underwriting process and, in many cases, can provide a decision within 24 hours or less. Some will process applications for loan requests under $100,000 online, offer low rates, waive prepayment penalties for full or partial prepayment, and require little or no security deposit.

A preferred laundry professional should personally manage your account from the beginning to the end of your loan, and online account management should be available at your convenience. Those making refinancing and acquisition financing inquiries should expect to receive personalized attention.

LAUNDRY DESIGN

A distributor should have access to laundry design services if you require some assistance outside of your architect and general contractor. This service is sometimes provided by the equipment manufacturer, and is available to assist you as you prepare to build out your store with several timesaving design and planning tools.

A laundry design service can bring your vision to life, from the general layout of the space down to the details, including the location of tables, coin changers, service counter and seating. Designers can use anything from a quick sketch or a few rough notes to create a professional and polished preliminary drawing that envisions the future of your laundry facility. Top design services will develop a 3-D rendering to offer a clear, accurate representation of the height, width and depth of your laundry design, painting a clear picture of what your project will look like.

Using the specific model mix, designers can create an organized and easy-to-read utility schedule that enables you see at a glance the requirements needed for electrical, drain, gas, exhaust/venting and water, which better allows for pre-planning of equipment installation.

There are also opportunities to develop dimensional drawing packages that will help any architect, engineer or design-build professional prepare permits and construction drawings quickly and accurately, as well as a virtual tour option.

RELIABLE, DURABLE EQUIPMENT

A distributor should offer commercial-quality vended laundry equipment. Make sure you do your due diligence to ensure the equipment offers superior product design and is performance-tested, both in the lab and the field.

With advances in technology, there are sophisticated control platforms available that can help increase profitability with multiple cycle modifiers, time-of-day pricing and multi-level pricing.

Equipment should be backed by warranty. Top manufacturers offer a 10-year, transferrable extended warranty on cabinet hard-mount washer-extractors with 20-through-80-pound capacities that cover the frame, outer tube, cylinder, shaft, bearings and seals, and the bearing house.

FACTORY SERVICE

You’ll want to select a distributor that has factory-trained service technicians strategically placed within its territory for the fastest response to a service or maintenance issue.

These technicians should have immediate access to commonly replaced parts on their service vans, and the distributor should have a warehouse stocked with genuine parts to provide immediate replacement service.

POST-SALES SUPPORT

When you have a distributor partner, the relationship doesn’t end once the store is open. Your partner should be there to answer any questions post-sale, as well as provide advice on how to host a successful grand opening, market your services, increase profitability, and learn of expansion opportunities in the future.

Other essential services should include an in-house installation team, owner/operator training, and direct access to an equipment manufacturing representative.

IN SUMMARY

Knowing what to look for in a distributor will help you select the right partner for your business venture. After all, you’re getting into business to generate a profit, and you want to make sure you maximize your opportunities.

So choose wisely. Do your due diligence, and don’t be afraid to demand excellence.

April 30, 2013

OSKHOSH, Wis. — Companies say they share customer-focused values

OSHKOSH, Wis. — Continental Girbau Inc. recently partnered with RJ Kool Co., a full-service laundry distributor headquartered in Kansas City, Mo. As a result, RJ Kool now provides Continental products to vended laundries throughout Eastern Missouri and Southern Illinois.

“We were looking for a top-level manufacturer that shared our same values and commitment to quality,” says RJ Kool’s Tiffanni Sanstra, marketing coordinator. “Continental products have filled some voids for us in the vended market. We are blown away with the quality of these products.”

Established in 1961, RJ Kool provides a full gamut of products and services tailored to the vended, on-premise, dry cleaning and industrial laundry markets. The customer-focused company offers large parts and service departments, as well as equipment rental and financing solutions.

Partnering with RJ Kool further strengthens Continental’s professional distributor network, according to Joel Jorgensen, Continental vice president.

“Without a doubt, RJ Kool is a top-tier distributorship sharing the same customer-focused values as Continental. They deliver much more than just product sales, they provide customers with real laundry solutions and support before and after the sale.”

April 29, 2013

OAKBROOK TERRACE, Ill. — More than 10 hours of educational sessions, networking opportunities and social events are planned

OAKBROOK TERRACE, Ill. — The Coin Laundry Association (CLA) has unveiled its final schedule of events—including educational sessions, networking opportunities and social receptions—for June’s Clean Show in New Orleans.

“The Clean Show is the best opportunity for professionals in the laundry industry to grow their business in 2013 and beyond,” explains Brain Wallace, CLA president/CEO. “The educational programming alone is more than worth the price of admission, but coupled with tremendous networking opportunities and incredible equipment exhibits – you simply cannot miss Clean 2013.”

EDUCATION

As one of the Clean Show sponsors, CLA will provide more than 10 hours of education geared toward making laundry owners more successful, and will cover an array of topics pertaining to the coin laundry industry, including:

  • Coin Laundry Trends for 2013
  • Internet Marketing Success Stories for Coin Laundries
  • Social Media: Which Tools Should Laundry Owners Embrace?
  • Best Practices for Wash Dry Fold and Commercial Accounts
  • Advanced Laundry Lease Analysis
  • The ABCs for Potential Laundry Owners
  • The Keys to Successful Multiple Store Management

NETWORKING/SOCIAL EVENT

To make sure the Clean Show is not all work and no play, CLA plans to host a hospitality reception on Thursday, June 20, and a CLA Mardi Gras Party the following evening. This year’s members-only party will feature Big Band entertainment, an open bar with Mardi Gras-themed cocktails, hors d’oeuvres, strolling entertainers and revelers, a Tarot card reader, caricature artist, and more.

Member pricing for this event is $65 per person. Visit the CLA website to learn more and to purchase tickets.

CLA’s Clean Show programming would not be possible without support from the following “signature sponsors”: American Dryer Corp., Alliance Laundry Systems, Continental Girbau, Dexter Laundry, Eastern Funding, EasyPay, ESD, Laundrylux, Maytag Commercial Laundry, and Setomatic Systems.

“We greatly appreciate the many distributors and manufacturers who continue to support the CLA’s mission of providing superior education and networking opportunities to today’s self-service laundry owners,” says Wallace.

To learn more about the Clean Show, which is expected to draw 10,000 trade attendees from all segments of the laundry and dry cleaning industry, visit the show’s website.

April 25, 2013

WILLISTON, N.D. — Laundry facilities serving oil field workers pose special challenges for store owners

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

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

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

DESIGNATED MACHINES

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

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

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

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

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

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

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

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

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

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

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

EQUIPMENT MAINTENANCE

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

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

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

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

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

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

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

INVESTMENT AND EXPANSION

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

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

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

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

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

April 24, 2013

CHICAGO — Midwest leads way in March with 5.2% gain; Northeast’s 3.6% increase tops first-quarter performances

CHICAGO — Three of the four regions posted healthy gains in both March coin laundry sales and first-quarter sales, according to the recent AmericanCoinOp.com StatShot unscientific survey.

Leading the way in March was the Midwest, which posted a 5.2% gain compared to March 2012 and a 2.8% gain for the first quarter compared to one year earlier.

“[I’m] improving my store, keeping it clean and the equipment well-maintained,” says a store owner from the Midwest. “My competition is not doing this, and I’m benefitting.”

March sales were also up in the Northeast (3.8%) and West (3.0%) from the prior year. Both regions also saw gains in first-quarter sales—3.6% for the Northeast and 2.1% for the West—compared to January-March 2012.

Despite seeing an increase in recent sales, many store owners in the West report they are seeing little change in market conditions while the costs to operate their business increase.

“Conditions for my business are about the same as ever, but utilities and taxes are on the rise, so prices have to keep going up … to keep up,” says a store owner from the region.

“Market conditions are unchanged for the last three years,” echoes another. “People aren’t spending on anything that isn’t necessary.”

The South was the only region to report declining coin laundry sales, down 4.2% from March 2012 and 6.0% from first-quarter 2012. One store owner there attributes the lack of sales to local “tree farms going out of business.”

But while one industry has slowed coin laundry business there, another is contributing to a more positive outlook.

“After a very slow second half of 2012, and a terrible first quarter of 2013, things seem to be picking up,” says a respondent from the region. “Local construction has resumed, and as a result, so have drop-offs.”

AmericanCoinOp.com’s StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.

Audience members are invited to participate in these unscientific surveys, which are conducted anonymously online via a partner website, on a regular basis. Self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define industry trends.

April 23, 2013

WILLISTON, N.D. — New necessity emerges from booming business: “greaser” laundry facilities for oil field workers

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

Oil is mined through a process known as hydraulic fracturing—or fracking—which involves drilling a mixture of water, sand and additives into a reservoir, ultimately creating a passageway for miners to procure the previously trapped natural gas, says energy services company Halliburton.

Oil production and takeaway capacity in the Williston area has steadily increased over the years, with the U.S. Energy Information Administration reporting last April that 600,000 barrels of crude oil were being produced per day.

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

“You have people all over living in man camps [or] living in RV parks that don’t have laundry [facilities],” says Terry Anderson, a coin laundry equipment salesman for The Minnesota Chemical Co., a distributor headquartered in St. Paul, Minn.

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

CLEAN JEAN’S EXPRESS LAUNDRY

Owner Charles Barton consulted with Anderson to build his facility, Clean Jean’s Express Laundry, in Tioga. His family has been in the area since the late 1930s. In addition to owning Clean Jean’s, he has also set up an RV park to cater to workers from the oil fields.

“I have 31 spaces since putting that in three years ago,” says Barton, who’s seen about a half-dozen more parks built within a three-mile radius and believes more are on the way.

Clean Jean’s, which opened in August 2012, is an attended coin laundry located three blocks up Tioga’s Main Street, and sits at the far end of Barton’s RV park. A portion of the facility, encompassing 1,760 square feet, was originally a Quonset hut built in 1956 for a cement plant. Barton’s family took ownership of the building in 1976, and in the construction process ended up adding another 480 square feet at the front of the facility.

His store offers Speed Queen industrial equipment, including 15 front-load washers with capacities of 20, 30, 40 and 60 pounds, as well as 28 dryers with capacities of 30, 45 and 55 pounds.

Like many coin laundry stores, Barton’s has taken advantage of the added service of wash/dry/fold.

“We started off primarily with self-serve and then there [was] a need for [wash/dry/fold],” says Barton, who began offering wash/dry/fold service in October. “We started off with 10 customers the first month, and we’re well past 200 customers now.”

But what sets his facility apart from others, he believes, is the fact that he accepts greaser laundry—garments that oil workers wear in the oil fields—which he explains is “just about impossible to get cleaned.”

“You can’t just throw it in the washer and go through the same motions that one does for non-greaser clothes,” he says.

Barton’s facility sees mostly uniforms and coveralls that have “heavy oil on them,” he adds.

SUDS LAUNDRY

Robert Trupe processes similar greaser garments at his store in Watford City.

“You’ll get anything from gloves to their jeans or shirts [or] coveralls,” Trupe says. “Other companies that do have uniforms [will] bring in their uniforms. It’s really any of the exterior clothes that these guys are getting muddy.”

Trupe also consulted with Anderson in building Suds Laundry, a 3,600-square-foot Laundromat he opened last September on Watford City’s Main Street. His store, which employs six attendants and a full-time manager, also offers added services such as shower stalls, mailboxes and a Wi-Fi lounge area, in addition to wash/dry/fold.

“We took the approach that we needed to be more than a Laundromat,” says Trupe. “We see it as kind of taking the pain away from laundry, because it’s a little more [of a] relaxing atmosphere.”

Like Barton, Trupe invested in Speed Queen equipment—washer-extractors ranging in capacity from 20 to 80 pounds, and dryers up to 75 pounds in capacity.

Check back Thursday to learn how these two stores tailor operations to serve these special needs!

April 18, 2013

RALEIGH, N.C. — David Makepeace creates inviting store built on friendly staff, sophisticated equipment, colorful décor

RALEIGH, N.C. — The yellows, blues, greens and shades of red at Calvary Laundromat in Raleigh are decorator-designed to create an inviting atmosphere, says owner David Makepeace. But the intangible atmosphere, the one that customers find welcoming, is created by his staff.

Makepeace says he’s “extremely” happy with sales at the 3,000-square-foot laundry, located in a small shopping center in the midst of large apartment complexes. “The success of it depends on the people you hire,” he says. “I have wonderful attendants.”

He names several other contributing factors, including the technological sophistication of its 30 front loaders and 28 dryers.

STARTING ON GOOD FOOTING

Makepeace is a former commercial banker in Charlotte and Raleigh who decided 13 years ago that “I wanted to go out on my own, to find a business and learn it and eventually buy it.” He was drawn to a cleaner/laundry because “It’s not going to go out of fashion like the buggy whip. Everybody’s going to need to get their clothes cleaned.”

He approached the then-owner of Medlin-Davis Cleaners and proposed, “You train me, and I’ll buy it from you.” Over the years, he rose to president, supervising three cleaning plants, three pickup and delivery routes and nine stores in Raleigh and neighboring towns, plus one small coin-op in the long-established Cameron Village shopping center in Raleigh.

Four years ago, unsure about the owner’s intentions of selling, he determined to start his own laundry while continuing to supervise Medlin-Davis. His wife Lee offered her full support.

It was at the beginning of the recession, but some businesses, including laundries, do well in that environment, he believes.

To financially strapped customers who need to clean their clothes, “This is a very affordable way to do that, rather than going to Lowe’s or Home Depot to purchase a washer and dryer.”

He’d worked with Medlin-Davis’ 1,500-square-foot laundry so he “had a general feel of how they operate.” Plus, T & L Equipment Sales gave him the specific knowledge he needed.

Makepeace discovered the Coin Laundry Association and joined immediately. “They had an absolute wealth of information they could give me.”

Co-owner Lee worked as full-time attendant the first six months, and David gives her credit for starting the laundry off on a good footing. “She did a wonderful job of establishing relationships.”

In 2010, he bought the part of Medlin-Davis that operated in Raleigh and the nearby town of Wake Forest: two cleaning plants, four dry cleaning stores, three pickup and delivery routes for cleaning and wash/dry/fold, and the Cameron Village coin-op.

His wife became head of accounting and administration, while he functions as head of operations. They have 60 employees.

Wash/dry/fold work for the routes is done at one of the cleaning plants. Wash/dry/fold work for the Cameron Village coin-op, which is unattended, is processed at Calvary along with its work.

Makepeace is a firm believer in keeping up not only equipment but appearances. Four-year-old Calvary has already been repainted once, and the checkerboard of floor tiles there is stripped and waxed every quarter, he says. Recently, some floor tiles were replaced, and a chair rail was added. “It’s very important that we keep up with wear and tear.”

At the 1,500-square-foot Cameron Village coin-op, Makepeace renovated everything: floor, walls, ceiling. He replaced all the machines with new ones after he found, “Stuff was always breaking down. I was losing business.”

Once again, he turned to his wife’s decorator friend for a color scheme. This one is more subdued—lots of pale blues and browns—in keeping with the supposed preferences of the retirees and North Carolina State University students who are its customers.

He added a large-screen TV, Wi-Fi, and new furniture.

He’s now enlisted the help of a marketing firm in designing not only a marketing plan but a logo, revamped storefronts for the cleaners, and even “the lettering on our vans.” And he says he wouldn’t mind having another coin-op.

After a 10-year apprenticeship and now four years of ownership, Makepeace believes he knows “what it takes to be successful.”

April 16, 2013

RALEIGH, N.C. — David Makepeace creates inviting store built on friendly staff, sophisticated equipment, colorful décor

RALEIGH, N.C. — The yellows, blues, greens and shades of red at Calvary Laundromat in Raleigh are decorator-designed to create an inviting atmosphere, says owner David Makepeace.

“It’s very vibrant,” says Makepeace, and makes customers feel more energetic. “It’s not depressing beige or white walls.”

But the intangible atmosphere, the one that customers find welcoming, is created by his staff, he says. Or, as one teen folding clothes with her mother put it recently, her family comes because “We know people here.”

“The people here” are full-time attendant Lizeth Brito and three members of a family that share work hours: mother Valentina Hernandez and daughters Oneyda Blanchard and Mirian Martinez. All are bilingual and can converse with Hispanic customers who make up a large part of the customer base.

“Valentina and I have worked together forever,” says Makepeace, 47. They are both veterans of the large, multi-site Medlin-Davis Cleaners operation in Raleigh, and he turned to her when he started Calvary four years ago.

Did she know of anyone who could help him? he recalls asking. “She said, ‘Yes, me.’”

Makepeace says he’s “extremely” happy with sales at the 3,000-square-foot laundry, located in a small shopping center in the midst of large apartment complexes. “The success of it depends on the people you hire,” he says. “I have wonderful attendants.”

He names several other contributing factors, including the technological sophistication of its 30 front loaders and 28 dryers. (They include one 80-pound washer, charging $7.75; three 60-pound, $6; six 40-pound, $4; five 30-pound, $3.75, and 15 20-pound, $2.50. Every dryer—two 75-pound models, 24 45-pound, and two 35-pound—runs six minutes for 25 cents.)

They all accept Presidential dollar coins, which Makepeace says are so popular among customers as a novelty that they keep them instead of using them. “I have to replace them all the time.”

The advantage of dollar coins, he says, is the flexibility they provide customers using the coin changer. Without it, anybody putting a large bill in the changer “would have to use two hands” to hold the resulting quarters, he says. “It’s much more manageable.”

Charlotte’s T & L Equipment Sales, which provided the equipment, programmed all the washers so that the seventh wash is free. That’s been a big hit and a factor in keeping customers coming back, Makepeace says. “The first thing they do is go look at all the machines and see if any of them are free.”

Another plus is the bright color scheme, he says. A decorator friend of Lee Makepeace, David’s wife and business partner, chose the overall design. “We started with the floor (multi-colored tile) and worked our way up the (yellow) walls,” David Makepeace says.

Lee and her dad, Riley Pleasant of Raleigh, painted squares within squares in contrasting colors to break up the long expanse. Even a neighbor contributed to the décor, bringing forth a large piece of art. Purchased at a yard sale for $15, it echoes the colors in the laundry and hangs over the entrance desk.

In the front of the store, a kids’ corner offers lots of windows, a wall-mounted TV showing cartoons, and walls that, for a few feet up, are actually blackboards. Children are encouraged to dig into a bucket of chalk and draw on them.

Makepeace noticed similar blackboard walls for children in a jewelry store and thought it was a clever idea.

“Parents are focused on sorting the clothes and getting them in the washers. If we can distract the kids for at least 15 minutes, the parents will appreciate that,” he thought.

For the adults, there are two large-screen TVs and free Wi-Fi.

Believing firmly that hands-on ownership makes for success, he visits the store three times a week, as well as other times when he’s called upon to repair equipment.

When he and his wife were planning the store, he personally canvassed the apartment communities near the site, which is on a connector road between two major traffic arteries. He discovered that most residents are Hispanic families.

He returned to personally put flyers for the new laundry under windshields at the apartments. He also mailed 1,500.

Check back Thursday for the conclusion!

April 9, 2013

CHICAGO — Majority of respondents see exhibits, education, networking plus other aspects as biggest factor in attending

CHICAGO — Just shy of one-third of those responding to this month’s American Coin-Op Wire survey say they are planning to attend Clean ’13 in New Orleans, while another 14.3% are unsure at this point.

Approximately 54% of those responding to the unscientific survey say they will not be attending the biennial event slated for June 20-22 at the Morial Convention Center.

Asked about the biggest factor in favor of attending (whether they were personally planning to attend or not), 32.1% of respondents named “Exhibits of equipment and supplies.” Roughly 14% listed “Combining business and pleasure” as the chief factor, while 7.1% look to Clean primarily for its “networking and socializing” opportunities. Just 3.6% of respondents see “educational sessions” as the main factor in attending. The top response, however, is “It’s all of the above,” with 42.9%.

The Clean Show has been shortened from four days to three this year, which is OK with 78.6% of respondents. Just 7.1% “don’t care for this change”—“Include Saturday and Sunday in the schedule (and) make it four days if necessary,” says one operator—and the remaining 14.3% are “indifferent.”

Among operators who do not plan to attend this year’s event, 52.4% “Can’t afford the cost,” 28.6% “Can’t spare the time,” and 4.8% have “made other plans.” The remaining 14.3% have “other” reasons, some of which include disliking the host city, having no expansion plans this year, and working two jobs besides running his/her laundry.

Among the eight educational sessions being sponsored by the Coin Laundry Association (CLA) throughout the event, Coin Laundry Trends for 2013 is garnering the most pre-show interest among respondents, at 29.6%. Other popular topics are The Keys to Successful Multiple Store Management (18.5%), Ask the Laundry Experts (18.5%) and Best Practices for Wash, Dry, Fold and Commercial Accounts (14.8%).

While American Coin-Op’s Wire survey presents a snapshot of the audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate in an industry survey each month. The survey is conducted online via a partner website, and is developed so it can be completed in less than 10 minutes.

The entire American Coin-Op audience is encouraged to participate, as a greater number of responses will help to better define owner/operator opinions and industry trends.

April 8, 2013

CHICAGO — How do you think your self-service laundry business compared to others in the industry last year? Did you have a good year or a bad year in 2012? How does your pricing compare to others?

CHICAGO — How do you think your self-service laundry business compared to others in the industry last year? Did you have a good year or a bad year in 2012? How does your pricing compare to others?

American Coin-Op’s annual State of the Industry survey offers you the opportunity to compare your operation to others in the industry. It focuses on 2012/2013 business conditions, pricing, equipment, common problems, turns per day, and utilities cost.

In instances where respondents were asked about 2012 business results, they were given the opportunity to state their results were up, down or unchanged. This is a departure from surveys compiled in 2011 and earlier, when they were asked only if their business results were up or down. Keep this in mind as you are making comparisons to previous years’ polls.

The survey is an unscientific electronic poll of American Coin-Op readers who operate stores. Some percentages may not equal 100% due to rounding.

WASHER PRICES

American Coin-Op asked respondents about their current washer prices, and if they increased prices this year or planned on doing so by the end of the year.

More than 85% of respondents offer top loaders. The price range for a top-load wash is $1 to $4. The most expensive top-load wash was 50 cents more that last year’s top price.

Here are the most popular top-load prices, followed by the percentage of respondents using them:

  1. $2 (30.9%)
  2. $1.75 (16.5%)
  3. $2.25 and $2.50 (14.4% - tie)

There really isn’t much change in top-loader prices from a year ago. The $2 price remains the most popular, followed by $1.75. The only difference reported in this equipment type is in third place, where $1.50 and $2.25 were tied in last year’s survey.

An extremely small share of operators continue to charge $3 or more for a top-load wash. This is the third straight year that there have been multiple prices topping $3 reported in the survey.

The most popular prices for some of the small front loaders are:

  • 18 pounds: $2
  • 20 pounds: $2.50
  • 25 pounds: $3

The lowest price reported in the above grouping is $1.25 (18-pound washer) and the highest is $6 (25-pound washer). Overall, the most popular small-front-loader prices reported in this year’s survey are comparable to last year’s.

The price range for a 30-pound wash is $2 to $6.50. Here are the most popular 30-pound prices, along with the percentages of respondents using them:

  1. $3.50 (25%)
  2. $3 (19.1%)
  3. $3.75 (11.8%)

There was a tie between $3.50 and $3.75 for the most popular price for a 35-pound wash. Next in order are $4.50 and $3. The price range for a 35-pound wash is $2 to $5.50.

The most popular price for a 40-pound wash is $4, but $4.50 and $4.25 aren’t far behind. The most popular 50-pound wash price is $5, followed by $5.50 and $6. There was a three-way tie for the most popular price for a 55-pound wash: $5, $5.50 and $7.

The most popular price for a 60-pound wash is $6, unchanged from last year’s survey. The price range for an 80-pound wash is $5.75 to $13.50, with $8 and $8.25 tying as the most popular price.

Other prices reported were $9.75 and $15.25 for a 90-washer, $9.50 for a 100-pound washer and $14.99 for 125 pounds.

The operators to our survey vary year to year, so prices tend to vary. But the survey consistently has shown that operators offer a wide variety of front loaders (prices for 15 different capacities were logged in this year’s survey) with a broad price range.

Roughly 44% of respondents have raised or plan to raise washer prices this year, and 26.9% are undecided. The remaining 29.4% have not raised prices nor intend to do so.

DRYER PRICES

Raising dryer prices is something that operators have tended to shy away from, choosing instead to focus on washer price hikes. But it’s worth noting that some operators indicated that they have shortened cycle times in the past year. While customers in those stores aren’t paying a higher price, they are getting less drying per cycle.

Here are the most popular dryer prices, followed by the percentage of respondents using them:

  1. 25 cents/5 minutes (19.1%)
  2. 25 cents/7 minutes (18.3%)
  3. 25 cents/6 minutes (13.9%)
  4. 25 cents/8 minutes and 25 cents/10 minutes (10.4% - tie)

The No. 3 price from last year’s survey has jumped to No. 1 in this year’s. Seven minutes of drying time returned to the No. 2 slot after being bumped to No. 4 last year, while eight minutes of drying time fell from No. 2 last year to No. 4 this year, where it shared the spot with 10 minutes of drying time.

The 25-for-10 price, which was once an industry staple, picked up a couple of percentage points on last year’s result but still remains well down the list.

Once again, there was a wide variety of dryer prices reported. The most expensive (and longest) cycle was $1.75 for 35 minutes.

Roughly 18% of respondents have raised or plan to raise dryer prices this year, and 20.2% are undecided. The remaining 62.2% have not raised prices nor intend to do so.

PAYMENT TECHNOLOGY

More than 83% of respondents operate coin-only stores, 7.6% operate card-only stores, and 9.2% have operations that offer both payment types.

ATTENDED OR UNATTENDED?

Nearly 48% of respondents say their stores are fully attended. Roughly 29% say their stores are partially attended, and the remaining 23.1% say their stores are unattended.

DROP-OFF SERVICE PRICING

Drop-off-service pricing ranges from 70 cents to $3 per pound. Here are the most popular drop-off-service prices (per pound), followed by the percentage of respondents using them:

  1. $1 (36%)
  2. $1.25 (16%)
  3. $1.10 (9.3%)

The drop-off-service prices remain similar to 2012 prices, and there is a wide variety of prices charged for the service. There were 20 different prices charged per pound in the responses to our survey.

Two-thirds of the respondents offer drop-off service, which is identical to last year’s survey.

Check back on Wednesday for the conclusion: Equipment Purchasing Trends, Turns Per Day, Common Management Problems, and more

April 3, 2013

CHICAGO — Brief rundown of events through May; call early to register, as space is often limited

CHICAGO — The arrival of spring also means a calendar full of opportunities to attend distributor special events, open houses and service schools.

Here is a brief rundown of events through May—call, or visit the website listed, for registration information. In many cases, space is limited.

April 6 — PWS-The Laundry Company Service School, Los Angeles, Calif.; 888-979-7462, pwslaundry.com.

April 6 — PWS-The Laundry Company Service School, San Francisco, Calif.; 650-871-0300, pwslaundry.com.

April 9 — Continental Girbau West Service School, Santa Fe Springs, Calif.; 866-950-2449, continentalgirbauwest.com.

April 16 — Century Laundry Distributing Service Seminar (All Brands), Des Moines, Iowa; 800-791-9321, centurylaundry.com.

April 16 — Minnesota Chemical Co. hosts Huebsch/Speed Queen Coin Seminar and Service School, Menomonee Falls, Wis.; 651-646-7521, minnesotachemical.com.

April 17 — HK Laundry Annual Sales Extravaganza, Danbury, Ct.; 800-229-4572, hklaundry.com.

April 17-18 — Conference of Champions Profit Symposium, hosted by Continental Girbau West, Santa Fe Springs, Calif.; 866-950-2449, continentalgirbauwest.com.

April 18 — Coin-O-Matic of IL Open House, Alsip, Ill.; 708-371-9595, millerlaundry.com.

April 23 — Great Lakes Commercial Sales hosts Wascomat/Electrolux Earth Day Product Expo, Lisle, Ill.; 800-236-5599, greatlakeslaundry.com.

April 23 — Minnesota Chemical Co. hosts Huebsch/Speed Queen Coin Seminar and Service School, St. Paul, Minn.; 651-646-7521, minnesotachemical.com.

April 23 — Northeast Laundry Equipment hosts Dexter Service Seminar, Dover, N.H.; 800-222-3472, northeastlaundryequip.com.

April 25 — Southeastern Laundry Equipment hosts Dexter Service Seminar, Marietta, Ga.; 800-522-9274, selaundry.com.

April 27 — Loomis Bros. Equipment Co. Open House, Overland Park, Kan.; 800-783-7094, loomisbros.com.

April 30 — D&M Laundry Equipment hosts Dexter Service Seminar, Wauwatosa, Wis.; 800-451-2676, dandmequipment.com.

April 30 — Great Lakes Commercial Sales hosts Maytag Commercial Laundry Product Expo and Service School, Lansing, Mich.; 800-821-8846, greatlakeslaundry.com.

May 1 — D&M Laundry Equipment hosts Dexter Service Seminar, Neenah, Wis.; 800-451-2676, dandmequipment.com.

May 2 — Century Laundry Distributing hosts Dexter Service Seminar, Madison, Wis.; 800-791-9321, centurylaundry.com.

May 2 — Equipment Marketers Spring Trade Show & Service Seminar, Cherry Hill, N.J.; 800-223-1376, equipmentmarketers.net/register.

May 2 — Great Lakes Commercial Sales hosts Maytag Commercial Laundry Product Expo and Service School, Dayton, Ohio; 888-877-4382, greatlakeslaundry.com.

May 7 — Great Lakes Commercial Sales hosts Maytag Commercial Laundry Product Expo and Service School, Peoria, Ill.; 800-236-5599, greatlakeslaundry.com.

May 7 — Star Distributing Co. Open House & Service School, Nashville, Tenn.; 800-897-7570, stardistributing.com.

May 7 — Western State Design hosts Dexter Service School, Cerritos, Calif.; 800-633-7153, ext. 208, westernstatedesign.com.

May 9 — Hermes Equipment Open House, Bloomington, Ill.; 800-851-9939, hermesequipment.com.

May 9 — Western State Design hosts Dexter Service School, Fresno, Calif.; 800-633-7153, ext. 208 or 301, westernstatedesign.com.

May 11 — Great Lakes Commercial Sales hosts Maytag Commercial Laundry Product Expo and Service School, Brookfield, Wis.; 800-236-5599, greatlakeslaundry.com.

May 15 — Laundry Concepts Profit Workshop, Addison, Ill.; 800-845-3903, laundryconcepts.com.

May 18 — Commercial Equipment Co. Open House, Service School and Equipment Showcase, Addison, Texas; 972-991-9274, washerdryer1.com.

May 21 — Western State Design hosts Dexter Service School, Seattle, Wash.; 800-633-7153, ext. 208 or 301, westernstatedesign.com.

May 23 — Western State Design hosts Dexter Service School, Hayward, Calif.; 800-633-7153, ext. 301, westernstatedesign.com.

Check the AmericanCoinOp.com calendar periodically for updates/additions. Distributors, if you have an event coming up that you’d like to publicize, add it to the AmericanCoinOp.com calendar at no charge (free site registration is required).

April 1, 2013

KENNER, La. — Coin Laundry Association to host free public meeting Thursday on potentially costly issue

KENNER, La. — Louisiana Gov. Bobby Jindal’s tax reform proposal includes a broadening of the state’s sales tax base, including eliminating the exemption for self-service laundry, and the Coin Laundry Association (CLA) will be hosting a free public meeting here later this week to bring Louisiana laundry owners up to speed on this critical issue.

Like most states, Louisiana currently exempts coin laundries from collecting sales tax, CLA says. Gov. Jindal’s budget proposal centers around broadening the sales tax base to include scores of industries and services that are presently exempt (while raising the base rate from 4.0% to 5.88%).

The end result could mean that all Louisiana laundry owners would remit more than 5.88% of gross sales to the state each year going forward without being able to directly collect this tax from customers on a daily basis, CLA says. The association estimates it could cost the average laundry owner at least $5,000 to $10,000 per store annually.

The proposal is expected to be included in bills to be considered by the Louisiana legislature when its session begins next Monday.

The CLA will host the luncheon meeting beginning at 11 a.m. Thursday at the Hilton New Orleans Airport. There is no cost to attend the event, but the CLA is requesting attendees to RSVP by calling 800-570-5629 or to e-mail.

March 26, 2013

ADDISON, Ill. — Distributor highlights opportunities to upsell without putting pressure on your customers

ADDISON, Ill. — Super-size it. Would you like peppers? Would you like to add cheese?

This is a common concept adopted by restaurants nationwide. Although the phrasing may differ, “upselling” is a familiar concept to American consumers. Most restaurants offer a good product without the extras, but eateries and other businesses have found that consumers like being given the option to make their own choices about the type of product or service they want. This in no way means the original product or service is inadequate without the add-ons.

What does this mean for our industry? Let’s take a look.

Although there have been many Laundromat innovations in recent years, the two most valuable, in my opinion, were:

  1. The ability to offer additional service options on vended washers and dryers.
  2. The ability to offer an alternative payment method such as card systems and its effect on the industry.

I would like to focus on these and explain how they tie together.

UPSELLING IN THE LAUNDROMAT

Several years ago, washer manufacturers introduced the ability to offer additional services to customers for additional vend price. Long before that, they offered the ability to sell hot and cold washes for a different cost. Competitors that did not have these sophisticated machines kept their prices low, ultimately reversing customers’ perceptions of the new pricing structure. Today, we have the ability to offer a quality wash, and customers who feel they will benefit from an extra wash or extra rinse will pay more for what they perceive is a superior wash result. This is upselling with no pressure on the customer to pay more money unless he or she chooses to add services.

This is a powerful tool to increase volume. For many years, we in the industry have been trying to figure out how to increase our revenue by giving customers choices they want, which increases revenue without the perception of increased pricing. I will show what this means in dollars and cents when we talk about the card systems.

Most manufacturers have an ability to offer these options, but each does it in a slightly different way. Additional service options have to be made easy to understand and easy to use, but this doesn’t mean you provide less service and make it up in add-ons. We have to learn from industries that are successful in marketing upselling options. We need to offer good results at a fair price, plus the ability to let our customers decide if they want to spend more. It’s their choice.

CYCLE OPTIONS + CARD SYSTEMS = MORE REVENUE

Another way to add choices into the Laundromat is by utilizing a card system. These systems, which began as an alternative to accepting coins, have been available for many years. They have come a long way. Card systems are used today by owners who want to operate their businesses with all the advantages that most retail businesses offer. I’m going to touch on a few of these advantages, but this is really just a small representation of the benefits of managing a card-operated laundry.

First, card systems build loyalty. Once a customer uses a card and leaves a balance on it, they will more often than not come back to your Laundromat. The ability to accept credit cards and to use penny incremental pricing helps keep your vend prices in line with your utility costs. There are a variety of marketing programs available to help increase your volume. Coupon programs give laundry owners the ability to offer rewards directly to the customer without an attendant and without fear of coupon fraud.

Card systems can also provide the ability to account for revenue and employee hours. Reports are available that reflect business revenue totals, individual usage, customer information, income by the hour, equipment usage, and average money spent per visit. This is just a small sample of the information that is available.

I have been able to gather reporting to solidify the value of the extra-wash and extra-rinse options. My family owns and operates three laundries with equipment that has these add-ons available. The stores are located in different geographic areas and have differing ethnic demographics. A report from one of our stores shows equipment usage over a five-month period.

The numbers focus on extra-wash/extra-rinse usage and what it means in terms of additional revenue.

  • The 80-pound washers processed 4,112 loads, of which 1,498—or about 36% of the total number of loads—used an “extra” button. At a 50-cent upcharge per load, an additional $749 was collected from the six machines.
  • The 30-pound washers processed 13,180 loads, of which 2,908—or about 22% of the total number of loads—used an “extra” button. At a 35-cent upcharge per load, an additional $1,017 was collected from the 16 washers.
  • The 40-pound washers processed 10,999 loads, of which 2,859—or about 25% of the total number of loads—used an “extra” button. At a 40-cent upcharge per load, an additional $1,143 was collected from the 14 machines.
  • The 20-pound washers processed 11,877 loads, of which 2,662—or about 22% of the total number of loads—used an “extra” button. At a 30-cent upcharge per load, an additional $798 was collected from the 12 washers.

That adds up to $3,707 in additional revenue for this store in five months. Extrapolate that to a year and the added revenue comes to $8,899. The numbers speak for themselves, and that’s on top of the normal vend prices! Keep in mind that these were customer choices; they made them of their own free will. That’s upselling.

In my experience, that kind of additional revenue (80%) goes to the bottom line. Without a card system, our stores would not have the tools to properly evaluate those numbers and help make any future equipment purchases.

Talk to your distributor about the options that are available. Evaluate this information to see if these innovations will work within your budget. In today’s business climate, any advantage that will help a business grow must be seriously considered.

I have heard many excuses for not moving forward with new innovations. The list would be so long, it would take another article to cover them all. The reality is, without these advantages, your business may struggle. Your choice.

March 25, 2013

ATLANTA — Drumming performance on family washer has amassed nearly 1.8 million views on YouTube

ATLANTA — If all of the exhibits and educational sessions aren’t enough to draw you to New Orleans for the Clean Show this summer, how about an Internet sensation?

The show’s management announced Friday that 11-year old Jonathan Carollo, whose drumming performance on a washing machine went viral, will be performing at the June 20-22 event in New Orleans.

First posted to YouTube last September, Carollo’s Whirled Beat video has amassed nearly 1.8 million views and has been featured on The Today Show, Good Morning America, USA Today and The Huffington Post.

Carollo’s father, Dan, posted the video for family and friends on Facebook but then uploaded it to YouTube after several people encouraged him to share his son’s talent with the world.

The boy routinely drums on objects around his family’s Washington state home and decided that the top loader, with its large steel drum, was the perfect-sounding instrument when he grew bored playing his drum kit.

“We are extremely delighted to have such a talented person play at the show … especially when it’s on an appliance that most of our exhibitors and attendees work with on a daily basis,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “It certainly will give them a new way to look at their washing machines.”  

March 18, 2013

SULPHUR SPRINGS, Fla. — Joined Common Ground Christian Church at Tampa’s Big Wash Coin Laundry for volunteer program

SULPHUR SPRINGS, Fla. — Student missionaries from The University of Iowa donated their time to Current of Tampa Bay, Inc. over the weekend in support of the Laundry Project, a volunteer program. They, along with Common Ground Christian Church of Seminole Heights, Fla., gathered Sunday at Big Wash Coin Laundry, Tampa, to wash the clothes of those less fortunate.

It was the first time Current partnered with University of Iowa students, but the second time the organization has joined with Common Ground Christian Church to host a Laundry Project in the Tampa area.

“We are very excited to introduce University of Iowa students to the Laundry Project,” says Jason Sowell, Current’s founder and president. “It is wonderful to partner again with Common Ground, as they are a great group of compassionate people. Sulphur Springs is a special location for Laundry Projects to continue to thrive because it is the very place that the project was originated in. It is always a blessing to help families in that community.”

University of Iowa students chose Tampa as their city of service during a spring-break mission trip. Current’s Laundry Project has seen an influx of volunteers in the last few years. Last year, it offered free laundry services at one Laundromat; this year, due to an outpouring of support, it has expanded to four neighboring locations.

More information about the Laundry Project is available at its website.

March 12, 2013

CHICAGO — What’s your most popular washer? Best revenue-generating season? The worst thing a customer has done to or at your laundry?

CHICAGO — They say you have to take the bad with the good. And so it is that American Coin-Op asked readers to list the best and the worst things about their store in this month’s Wire survey.

POPULAR WASHERS

Thirty-three percent of respondents say a 40- to 50-pound front loader is their store’s most popular washer, followed by a 27- to 35-pound front loader (30%) and an 18- to 25-pound front loader (23.3%). Equal shares (6.7%) chose a 55- to 60-pound front loader and a 70-pound-plus front loader as most popular. No one who took the unscientific survey said a top loader was their store’s most popular washer.

SLOWEST DAY, BEST SEASON

Wednesday is the slowest business day (38.7%), edging out Tuesday (29%) and Thursday (25.8%). Summer is the best revenue-generating season (35.5%), followed by winter (32.3%), spring (22.6%), and fall (9.7%).

QUENCH THAT THIRST

Soft drinks, by far, are the best-selling food/drink item at laundries. Roughly 52% of respondents say soft drinks are the No. 1 seller, followed by snack chips (19.4%) and water (6.5%). Approximately 13% of respondents say they don’t offer vended items in their laundry.

BUT IT’S GOTTA BE DONE

Doing repair/maintenance work (32.3%) is the least favorite task for owners, followed by “solving customer problems” (25.8%), collecting (12.9%) and cleaning (12.9%). Only 9.7% selected “supervising employees” as being least favorite.

A CUSTOMER DID WHAT?

Respondents were asked to name the worst thing a customer had done to or at their laundry. Answers were varied, and some were downright disturbing. Incidents of theft (money, a toilet seat) and vandalism (poured beverages on floor, ripped off washer door) were most common. Following are examples of the rest:

  • “(Customer) brought in laundry with dozens of roaches in it. When I walked in, the bugs were crawling everywhere in plain sight: all over the washers, in and out of her laundry basket, etc. I told her not to ever bring her laundry back here. My attendant and I spent hours killing roaches and, of course, I also had an emergency exterminator visit.”
  • “One blew ours up a few years before we bought it. He was washing greasers (oil field clothes) and he poured some gasoline into the washer with the clothes. It was a gentle explosion, though. It didn’t seriously injure any of the customers.”
  • “Take clothes off and wash them.”
  • “Butchered a manta ray on one of our tables, then put (it) into one of our dryers, turned it on high, then left.”
  • “Had a bowel movement in the middle of the store because the restroom was busy. Then used others’ clothes to clean himself.”
  • “Washed old, rubber-backed carpets, clogging the washers drain and flooding the store.”

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.

March 11, 2013

WASHINGTON — Learn some low-cost, efficient steps to make sure your business, customers and employees are safe in months to come

WASHINGTON — Winter snows are sometimes followed by floods. Severe storms—sometimes in the form of deadly tornadoes or massive rainfall—can wreak havoc across the United States during spring.

There are many low-cost, efficient steps that a coin laundry owner can take now to make sure their business, customers and employees are safe in the months to come. At 2 p.m. EDT Tuesday, the U.S. Small Business Administration and Agility Recovery will present a free webinar on best practices for mitigating spring weather risks, based on real-life recovery experiences from business owners.

Space is limited, and interested parties can register here.

Additionally, the SBA has partnered with Agility to offer business continuity strategies through its “PrepareMyBusiness” website. Visit preparemybusiness.org to access previous webinars and for additional preparedness tips.

February 25, 2013

EL SEGUNDO, Calif. — Transaction reportedly makes WASH the second largest route laundry company

EL SEGUNDO, Calif. — WASH Multifamily Laundry Systems, which provides laundry facilities management services, has acquired Coinamatic Canada, that country’s largest provider of multifamily laundry services. This transaction makes WASH the second largest route laundry company and the only multinational laundry company in North America, it reports.

“Coinamatic brings experience in the Canadian market, key technology and commercial distribution channels complementary to our current business lines,” says Adam Coffey, WASH president/CEO. “This acquisition is an important step in executing our overall growth strategy to expand our machine base, revenue streams and geographic focus.”

Coinamatic will become a wholly owned subsidiary of WASH Laundry but maintain the Coinamatic brand name in the Canadian market.

With Coinamatic’s approximately 100,000 installed washers and dryers throughout Canada, WASH’s installed base climbs to more than 400,000 machines with an estimated combined revenue of $425 million. Coinamatic Canada also runs a commercial laundry division and a division that manages parking facilities.

“We, at Coinmatic, are very excited about the new opportunities that becoming a part of WASH Laundry provides,” says Sean Smith, president/CEO of Coinamatic. “We look forward to leveraging our two companies’ synergies in dedication to customer service and operational efficiency.”

February 21, 2013

CHICAGO — Annual report to summarize business results, equipment and operational pricing, and more

CHICAGO — American Coin-Op is surveying current owners and operators of vended laundries this month to gather important data it will use in developing its 2012-2013 State of the Industry report, to be released in April.

The annual survey—which laundry owners can take anonymously via a partner website—poses a series of questions about business results, equipment pricing, operational pricing and more.

All self-service laundry owners and operators are encouraged to complete the survey, as a greater number of responses will help to better define industry trends and meaningful benchmarks. Individual respondents are not identified in the unscientific survey.

The survey will close on March 1. For more information, contact Bruce Beggs, American Coin-Op editorial director, at bbeggs@americantrademagazines.com.

February 20, 2013

SANTA FE SPRINGS, Calif. — Brings 27 years of experience in vended laundry ownership, development, management, marketing and sales

SANTA FE SPRINGS, Calif. — Van Merrill recently joined Continental Girbau West (CG West) as its vice president of vended laundry development and sales, the company reports.

Merrill, who hails from North Tustin, Calif., has 27 years of experience in vended laundry ownership, development, management, marketing and sales, and has particular expertise in lease negotiations, CG West says.

“Van is a talented developer of profitable vended laundries,” says Mike Floyd, president of Continental Girbau Inc. (of which CG West is a subsidiary). “We’ll look to him to provide expertise, management and guidance. He excels at finding vended laundry locations and developing those laundries to their fullest profit potential.”

van merrillMerrill most recently provided consulting services to coin laundry investors. Prior to that, he co-owned Sparklean Laundry Systems, a Continental distributorship, for eight years. Since launching his career, Merrill has developed more than 100 vended laundries, CG West says. He holds a bachelor’s degree in economics from the University of Miami.

“I’m really excited to work with the CG West team,” he says. “I feel Continental is by far and away the best laundry equipment manufacturer, with the best people, in the industry. I enjoy helping people realize their dreams of owning their own businesses.”

CG West serves the California vended, on-premise and industrial laundry markets by providing equipment, parts, financing, service, warranty and training.

February 13, 2013

CHICAGO — It offers profit potential if handled properly, and can sometimes be the difference between being in the black or the red

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

SELLING WASH/DRY/FOLD

Taking the extra step to keep customers happy is one way to ensure that your wash/dry/fold service stays afloat, but what can owners do to extend their reach to prospective customers?

Gauthier suggests that owners establish a strong online presence and consider investing in search engine optimization (SEO) services, such as Google AdWords, to attract business. “An established, effective online presence is a customer comfort and an inducement to try a new service. Roadside signs and direct mail are additional efforts, but they are typically limited to drive-by traffic and specific geographic territories.”

Store owners reaching out to community causes is another way to bring in new customers, according to Brick. For example, your store could host a fundraiser for a local church youth group or athletic team, and have them, alongside an attendant and adult volunteers, wash, dry and fold customers’ garments to raise money.

Even if they split the revenue fifty-fifty … it’s a great way for that organization to raise money, and it’s a great way for your Laundromat to get people that may have never even thought about using the laundry for that service.”

Meyer, on the other hand, pushes the benefit of seasonal coupons, such as deals on comforter cleaning in the fall and spring. “It’s a good way to educate individuals who take advantage of the coupon and convert them to drop-off customers.”

The success of wash/dry/fold not only comes down to marketing, but how well versed attendants are in assisting customers, he says.

“If the attendants are supportive and educated enough to explain the drop-off service, it typically translates to a successful drop-off program,” Meyer says. “We have seen stores go as far as incentivizing attendants by commissioning them 5 to 10 cents per pound on orders they process.”

Marketing is all about staying in tune with the lifestyle of the community, Brick says. “You really have to look at each community. What is the avenue that my customer base looks at, reads [and] listens to, and that’s where you want to go to promote what you’re offering.”

DELIBERATING DELIVERY

You may want to consider adding delivery to your wash/dry/fold service—which Brick calls a “great service” in urban markets—but tacking this on to your operation presents an added liability. “That’s when you would get into the extra insurance involved because you’re putting somebody on the road.”

Meyer echoes the sentiment, saying, “Delivery adds cost and opens the need for additional insurance coverage, as transportation becomes part of the equation. This needs to be balanced with the size of the delivery area [or] how much the potential market is increased through pick-up/delivery.”

But adding delivery could certainly be beneficial to the business. “We typically see the offering of delivery as viable and profitable,” Meyer says. “Some stores will charge a delivery charge as well to recoup related expenses.”

Though the idea of adding delivery to a store’s wash/dry/fold service can attract customers looking for even more convenience, Brick estimates that less than 2% of laundries offer such an option.

THE FUTURE OF WASH/DRY/FOLD

Many stores may wonder if starting, or even further developing, wash/dry/fold service is worth the risk. Brick admits that he’s seen some of the best and cleanest stores “do everything right” but the service didn’t pan out. “It is kind of a fickle thing.”

Despite this, he believes the payoff is worth the gamble. Not only can owners make extra profit, their overall business can see a visible improvement.

If you can afford to have that attendant there every hour that you’re open, the vandalism is reduced tremendously,” Brick says. “The store will be kept much cleaner, because you’ve got someone there wiping machines down [and] picking up softener sheets from the floor.”

Wagner sees this improvement in his store, as having an attendant present “builds a confidence” in customers. “If [a customer] has a problem, instead of leaving a note or calling, you can fix it right there for them or give them their money back. There’s never any miscommunication or issues, it’s all taken care of right away.”

With his wash/dry/fold service still in development, Wagner wants to hire a full-time attendant, plus he has other goals in mind. “I’m just in the process of learning [but] we are looking for a second location with our distributor,” he says. “Our strategy would be within 30 miles … from our location.”

Larger stores are becoming the industry norm, according to Brick, which could lead to stores taking on commercial accounts and an expanded customer base. “I think you’ll see more stores begin to do more with the non-traditional laundry customer, meaning the people that have a washer and dryer at home.

Because it’s a bigger [and] nicer store, they have no problems dropping their clothes off. I definitely think that wash/dry/fold will become a stronger revenue source for laundries as they continue to build bigger, nicer, cleaner laundries.”

All in all, for a wash/dry/fold service to really take off, it’s about creating a positive, lasting impression.

The success of wash/dry/fold will have more to do with who you hire, and what you put in place than just about anything else that you do,” says Brick. “The experience that you provide to that customer will lead to them coming back, and lead to them telling someone else.”

February 12, 2013

CHICAGO — It offers profit potential if handled properly, and can sometimes be the difference between being in the black or the red

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

HIRING AND INSURANCE

With policies in place and any equipment issues resolved, the next consideration is employing an attendant.

Hiring an attendant should ultimately pay for itself, according to Brick.

“To me, the better way to look at it is you would want a minimum of 50% of whatever their labor cost is to attend [their] laundry, they should try to generate in wash/dry/fold,” he says. “If you look at a guy that’s spending $60,000 a year in labor, to me he needs to generate at least 50% in wash/dry/fold revenue [or] $30,000.”

To keep labor costs down, Wagner, his wife, and, on occasions, his son and daughter pitch in to process the store’s wash/dry/fold service. While his store only has one part-time employee that helps with the service, he plans on hiring a full-time attendant.

“We’d like to have one full-time employee hired by the end of the year,” he says. “Hopefully we have enough accounts established [so] that we can maintain [it] and make it profitable.”

What qualities should a store owner look for in a candidate? Brick suggests seeking the right combination of experience and personality. Look for a person who has “a good personality, and someone that is going to communicate positively with your customer base [and] make them feel welcome [but] doesn’t mind washing, drying and folding clothes.”

Protecting your business against damage claims is another important issue to address, and that’s where insurance coverage comes into play. “With residential laundry, the standard insurance policy should suffice,” Meyer explains. But if a store wants to get into commercial accounts, “Owners should consult their broker to ensure the proper amount of liability insurance is in place.”

Besides the possibility of lost or damaged garments, there is another potential liability: “left items,” or items that customers forget they had brought in for laundering. Preventing these occurrences all goes back to an owner’s policies and procedures, and establishing a reliable tagging system, Brick says.

“When [a] customer comes in and they sign that ticket, some [stores] will take that ticket with a magnet and when that load goes into the wash, that magnet is stuck with that ticket on the wash,” Brick says. “When the load moves to the dry … the ticket never leaves the load.”

PRICING AND TURNAROUND

Charging by the pound is “the way to go now,” says Brick.

In his experience, Ruel has seen pricing range between 65 cents to $1.50 per pound. Brick says that some stores have a $5-10 minimum.

Meyer and Gauthier agree on the per-pound trend, but add that some laundries charge separately for bulky items such as comforters.

“Our recommendation is always determine your costs to process, and what the desired profit and price [is] accordingly,” says Meyer.

For Gauthier, transparency is key when it comes to pricing. “It’s important to make sure that a store’s rates and policies are clearly published and easy to understand.”

As for turnaround time, Brick explains that most fully attended laundries offer same-day service for garments brought in before noon. If a load is received later than that, many stores will have it done the next day.

But as with any business, rewarding loyalty is a top priority. If a regular customer brings something in and requests same-day service, “absolutely you provide that service for the regular customer,” he says.

“You try to go above and beyond to keep that business.”

Check back Wednesday for Part 3!

February 7, 2013

CHICAGO — It offers profit potential if handled properly, and can sometimes be the difference between being in the black or the red

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

PROTOCOLS AND EQUIPMENT

For stores looking to get into wash/dry/fold, Brick advises owners to start with a solid foundation of policies and procedures.

Having a protocol on how to accept and organize garments is the first thing owners should lay out prior to starting a service. Establish procedures for weighing a load and asking the customer if they want any pieces spot-treated or loads separated by whites and colors, for example.

“Taking responsibility for customer goods means understanding fabrics and carefully processing those items,” says Gauthier. “Make sure that your wash/dry/fold staff takes the time to evaluate the goods they accept to ensure that they aren’t damaged.”

With a plan in place, owners may then turn their attention to equipment and the possibility of investing in new machines.

The experts agree that any coin store can start a wash/dry/fold service using the washers and dryers already in place, but there may be limitations.

“If all units within the store are top loaders, it limits your ability to process larger bulky items like comforters,” Meyer says. “[But] the majority of what a store will receive for wash/dry/fold is personals, which a typical coin store has sufficient machinery to handle.”

Wagner found this to be true, saying that he’s able to utilize the store’s current equipment for some of the customers he serves.

While he primarily processes residential wash/dry/fold, his initial goal was to go after commercial work. To date, Wagner has attracted business from what he calls “small commercial” accounts, catering to local hotels and senior housing facilities. For this reason, he installed a soaking tub and an Ecolab chemical and cleaning system for his machines.

Higher-capacity machines can process loads more quickly, but deciding which machines to invest in all goes back to a store’s policies and procedures, Brick says.

“If the customer wants to separate loads … then you’re going to use two smaller machines,” he says. “But if a customer does not want, or choose to separate [loads], then [you can] dump everything in a 60-pound [washer].

“In general, a 60-pound washer can handle the vast majority of commercial account needs a Laundromat might have,” says Meyer regarding higher-capacity machines. “However, if a coin store is in a market where an 80-pound machine might give it an advantage for attracting self-service customers, then that should be taken into consideration.”

Utility efficiency, a large profile for easy loading and unloading, and a five-year manufacturer-backed parts warranty are characteristics that Meyer looks for in assessing higher-capacity equipment.

Should a store that offers wash/dry/fold service make that equipment available to its walk-in customers? For Meyer, it’s all about catering to your customers, whoever they may be.

“We generally recommend making all equipment available to customers,” he says. “In practice, attendants will typically use the same one or two machines for wash/dry/fold accounts due to their proximity to the attendant station, or to high-visibility points in the store. But, there is no reason to limit availability.”

Though he limits the store’s cleaning system for commercial accounts strictly to employee use, Wagner has been able to process residential accounts while self-service customers are using the store’s washers and dryers, he says.

“We’re a smaller market so there’s always downtime,” he explains, adding that late morning and early afternoon is when the store usually experiences a lull in traffic. “We have enough machines for our market where there’s always some machines open. Most [customers] drop off regular loads for just one or two machines at a time.”

Check back Tuesday for Part 2!