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ST. JOSEPH, Mich.— Lakeside Laundry Equipment, Cleveland, recently received this year’s Red Carpet Service® Excellence Award during Maytag® Commercial Laundry’s 54th Annual Meeting in Marco Island, Fla.

A longstanding tradition, the award is presented to a company that best exemplifies the excellent service and dependability characterized by the Maytag Commercial Laundry brand.

“Although relatively new to the Red Carpet Service® Program, Lakeside Laundry Equipment went above and beyond the program’s requirements, hosting two service schools, a sales and service open house, and working closely with our service personnel,” says Bob English, general manager of global commercial laundry at Whirlpool Corp. “The company’s dedication to quality service, our brand and their customers is commendable.”

Award criteria include service response time, customer comments, loyalty and service etiquette, and a commitment to the company by continually engaging in Red Carpet Service® training courses.

“From the top down, our sales and service departments go to exceptional lengths to ensure customer satisfaction,” says Howard Shear, co-owner at Lakeside Laundry. “We see these same qualities in the Maytag brand and equipment, and we’re proud to be associated with a respected industry leader.”  

Lakeside Laundry Equipment offers commercial laundry equipment solutions for coin, multi-housing and on-premise laundry (OPL) applications, and has more than 50 years of combined experience.

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.

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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. 

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

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

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

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

BENTON HARBOR, Mich. — Maytag® and Whirlpool® Commercial Laundry recently appointed Robert English as general manager of Global Commercial Laundry at Whirlpool Corp.

English’s responsibilities include managing the ongoing business strategy and overseeing marketing and sales, product development, quality, parts and service components of the commercial laundry business unit.

“Whirlpool Corp. recognizes the commercial laundry business is very different from the residential side and is dedicating special resources to ensure its continued success,” says Wes Pringle, vice president strategic business units at Whirlpool. “Bob’s recent appointment is part of a strategic process to support our customers and position the company to become the leader in the commercial laundry industry.”

Previously director of Commercial Laundry in 2000, English’s most recent role included managing Whirlpool’s laundry and refrigeration sales and marketing efforts with Lowe’s.

GARDEN CITY, N.Y. — Sharing its vision for growth in the commercial laundry business, LG Electronics USA recently hosted more than a dozen of the nation’s top distributors at the company’s first Commercial Laundry Conference.

Sam Kim, Appliance president, LG Electronics USA, welcomed the potential new distributors, emphasizing LG’s commitment to technology and market leadership. Brian Wallace, executive director of the Coin Laundry Association, delivered a “state of the industry” keynote address.

“With our new commercial washers and dryers, we’re bringing the innovation and expertise LG is known for in residential laundry to commercial systems,” Kim says. “LG is the leading brand in home front-load laundry in the United States, and our new commercial solutions offer facility owners an energy-efficient and easy-to-manage way to provide a best-in-class experience for their customers.”

LG invited the “cream of the crop” distributors to the conference, says industry veteran Stefan Meir, U.S. sales director for LG Commercial Laundry. “Some say that distribution is the key to success. Others focus on laundry equipment. At LG, we will have the best of both worlds—a very strong, well-rounded distribution network and top-performing energy-efficient commercial washers and dryers.”

The distributors, which represent different top brands of multi-load washers, will find that LG commercial laundry equipment is a complement to their existing brands and will help them grow their business significantly, says Meir.

For example, when new agreements are finalized, LG distributors will have the opportunity to build more advanced Laundromats “Powered by LG,” like the one that just opened in New York. Coinmach Service Corp. opened the unique “Laundry Lounge” featuring LG products as a new approach to the traditional, utilitarian laundry.

Located on the Upper West Side of New York City, the lounge is the first of what LG anticipates to be a national roll-out of similar lounges featuring its ultra-energy-efficient line of ENERGY STAR®-qualified commercial clothes washers and their counterpart dryers.

CHICAGO — Upon studying the results of this year’s American Coin-Op distributor survey, there are reasons to be optimistic about the state of the self-service laundry industry.

Nearly half of respondents said business was better in 2010 than it was in 2009. Better yet, nearly two-thirds of respondents predict that 2011 business will be better than 2010.

Every distributor listed in the American Coin-Op Distributors Directory prior to June 1 was invited to participate in the unscientific survey.

DOES SIZE MATTER?

So, is a smaller store the way to go, or is having a larger store the growing trend?

Here are the most popular store sizes, in square feet, for those that were built in 2010:

1. 3,000
2. 2,500
3. 2,000
4. 2,800
5. 3,500

Twenty-two percent of the newly constructed stores are 2,000 square feet or less. Fifty-two percent are between 2,000 and 3,000 square feet.

The largest laundry mentioned in the survey results is 7,300 square feet, and the smallest store is 700 square feet.

The average newly constructed store in 2010 covers 2,663 square feet. Averages from other recent surveys were 2,712 square feet (2009), 2,743 square feet (2008) and 3,200 square feet (2007).

LOOKING BACK

If you built a store in 2010, how does it match up with the numbers from this survey? Here’s a quick equipment snapshot of newly constructed stores to give you some perspective.

Newly constructed stores in 2010 feature 3.8 top loaders, 26.9 front loaders and 32.1 dryer pockets. The stores are, on average, 2,663 square feet.

Here are the new-store profiles for the previous three surveys:

2009: 5.7 top loaders, 27.3 front loaders, 32.6 dryer pockets, and 2,712 square feet.

2008: 5.8 top loaders, 27.8 front loaders, 32 dryer pockets, and 2,743 square feet.

2007: 6.7 top loaders, 27.7 front loaders, 35.2 dryer pockets, and 3,220 square feet.

STORE-BUILDING SUCCESS

In 2010, the top two reasons for store-building success were the availability of better locations (either more sites were available or the costs to rent or purchase were lower) and less competition.

For those whose new-store construction lagged last year, the difficulty of obtaining financing was the primary culprit. The slow economy and impact fees also were frequently mentioned. Other reasons were high rents, too much competition and stringent government regulations.

DISTRIBUTOR ACTIVITIES

Twenty-five percent of the distributors that responded broker self-service laundries (compared to 36% in last year’s survey). Thirty-one percent of respondents (compared to 36% in the 2010 survey) operate some type of route laundry.

Are open houses or service schools a distributor offering that you find valuable? Forty-eight percent of respondents plan to host some type of open house or service school in 2012.

As usual, most of the events will take place in the spring and fall. Seventy-one percent take place in the fall, while the remainder is scheduled for the spring. (You can check on upcoming distributor events 24/7 by clicking the Calendar tab above.)

ON THE HORIZON

So, are distributors optimistic or pessimistic about 2011 overall sales projections?

Sixty-four percent expect 2011 sales to surpass those of 2010. Thirty-six percent expect overall sales this year to be the same as last year. No one who responded to our distributor survey believes that 2011 business will be worse than 2010.

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