Content about Marketing

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

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.

PEMBROKE, Mass. — You’ve heard the expression, “Know your customer.” But what does it mean? How do you practice the art of knowing your customer when you’ve got machines to fix and commercial orders to get out? And maybe it’s a stupid statement anyway, because the customer is the one who puts the quarters in the slot. Of course, you know him or her.

Let’s talk about knowing your customer in the context of running a Laundromat, whether it’s a busy shop, a few stores or a chain. It means knowing what type of people your customers are, and why they come to you instead of your competitors. It means understanding their spending constraints and what could make them stop coming to you. It means getting a sense of the ethnic diversity of your customer base and their lifestyle preferences. It means getting a sense of what makes them tick.

So how do you do this? One option is to never be around but ask your staffer what types of people come in your store. But this method won’t work because your staffer won’t know what to say.

Another method is to be there all the time, talking and chatting with the people who stop in. This won’t work too well either, because simply talking is not gaining insight. Besides, you’ll use up all your time in customer relations and have none left to devote to management.

Yet another option is to be there every day processing work while keeping your eyes and ears open. This will work somewhat, but it won’t expose you to their truths because only half your attention is focused on them. Personal interaction leads to much more insight.

The right way to know your customers is, whenever you’re there, to interact in a professional manner with them for a half-hour or hour, and then return to your tasks.

Speak to them and get a sense of their needs. You will banter about day-to-day matters, certainly, but find a way to ask questions. Your goal is to get them to talk about their laundry experience. Maybe, in the course of the conversation, they will reveal something worthwhile:

• “I wish so many of your machines wouldn’t break down so much.”
• “If you go up in your prices again this year, I’m going to another Laundromat.”
• “It’s so hard to park around here.”
• “The place is so dirty, I wonder if my clothes are getting clean.”
• “It’s too crowded on the weekends.”
• “I wish you were open late at night.”
• “It’s not right that there’s no one here at night to open the bathroom.”
• “None of my friends come here at night because the neighborhood is too sketchy.”

Such insights would give you calls to action. For instance, if you heard that last concern enough, you could hire an attendant to work the store at night and walk every appropriate person to his or her car. You could counsel the staffer to talk about how safe the neighborhood really is, install extra fluorescent lighting that makes the place really bright, and install parking lot lighting. You could get involved in community activism whose aim is to make the community safer, as well as hand out posters in nearby neighborhoods that feature the convenience and safety of doing laundry at your store.

Be hands-on with customers. If a customer complains about a machine, even if you’re dressed in a suit, take off your jacket and see what you can do to fix the problem. At minimum, make a note and see that the issue is taken care of promptly. If you have the customer’s address, send a note to that effect. Customers love the personal service, especially when the boss is involved. Furthermore, such hands-on activity shows staffers that you are really concerned with customer service.

Learn and remember names. If you are there only briefly to check on matters, and you spot a familiar customer walking in, continue with your work. But before you leave, walk over and say hello to this person. Call him or her by name. Ask about what’s new, and if they’re satisfied with your service. Listen to their answer carefully. If you have trouble remembering names, make a mental note of a person’s unique characteristic and pair it with their name. For example, the “green sneaker guy” is named Garry. If you can’t do this, write down names in a notebook until you are able to commit them to memory.

Even if no one familiar comes in, after you finish work, go out among the customers. Tell them that you are the owner and ask for suggestions. Listen to what they say, then scribble down a note as well as their contact information so you can get back to them. Again, customers love the boss to be involved, and you’ll probably learn something. This activity is called “working the floor,” and a skilled owner can do it masterfully. I’ve seen it done.

Hang up a picture of yourself. Make a show of laughing at yourself. Underneath the photo, print your “title,” such as CEO in Charge of Clothes Washing. Or how about a string of titles, something like Owner, Proprietor, President, Chief Cook and Clothes Washer? Or there’s Man Who Has the Most Gray Hairs Because the Buck Stops at His Desk. Make light of your situation, and the world will laugh with you.

In the quiet of your office, think about your customer and his or her needs in the light of what you have recently learned. Approach the task of laundering from his point of view. Ask yourself how you could make his or her life easier. What little thing would brighten his or her day?

I’ve always thought that restaurants that offer a free piece of candy with the bill do a little extra to make their customers feel happy about the eating experience. What candy-bit equivalent can you offer your customers?

Meet your customers where they are. You’ll soon understand what makes them tick and know how to make sure you see them again and again.

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: PLEASE DESCRIBE HOW A STORE CAN BE MADE CUSTOMER-FRIENDLY BY ADDRESSING THE FOLLOWING:

Seating

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Your Laundromat customers are going to be spending plenty of time in your store and you’ll want to keep them comfortable so they’ll consider coming back. It’s important to have ample enough seating for your busiest times.

Dave Phillips, national sales manager, IPSO: It is important to provide just enough seating for the customers to be comfortable. But, it is about revenue per square foot — seating does not make owners money.

Dan Bowe, national sales manager, Speed Queen: Be sure to provide ample seating for customers. Most customers spend at least an hour in a Laundromat, so offering space where they can sit comfortably and conduct other business, like checking e-mails or reading, will be greatly appreciated.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: Seating should be in close proximity to the front of the store so customers can keep an eye on their car in the parking lot if so desired. If TVs are part of the customer experience, seating should be in close enough that programs are easily seen and heard throughout the store.

Children’s Area

Ken Hebert, Deep South Laundry Systems: A children’s area will be welcomed and appreciated by your customers, and it will likely reduce unnecessary wear on your equipment.

Bowe: Some newer stores offer a children’s play area that is equipped with televisions, books, arcade games and computers. While this isn’t necessary, it may give you an edge over the competition for those customers with small children.

Kirchner: While it might not work for all store layouts or customer demographics, a children’s play area can make your store more inviting to mothers and families. It can also help keep children occupied while their parents do laundry.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Parents need help when doing laundry. If you have an area where their children can watch movies or play, this goes a long way in showing how much you care about your customers. Parents will come back to a laundry where their children are occupied and that they can get their laundry done without being pestered.

Phillips: Dedicated children’s areas are nice if the store is large enough to provide them. Areas dedicated to children need to be situated toward the back of the store for safety and security reasons (assuming there is no rear ingress and egress), and it is important that the parents have good visibility of the areas.

Availability of Extra Services

Bowe: If you have an attended store, you have the ability to offer “Fluff and Fold” services. Customers will greatly appreciate this service, especially if they have extremely busy work or school schedules. It allows them to drop their laundry off, get it cleaned and pick up at a later time. In addition to being a customer-friendly component, it’s also a revenue enhancer.

David Cabral, vice president, New England Coin Laundry: Depending on the market demographics, additional services can enhance the overall business – but it is very important to look at the specific demographics of the area before offering any additional service. Examples include alterations, check cashing, receipt of utility payments, tanning, nail salon, café, cell phone sales, etc.

Fernandez: We do have drop-off service, which accounts for a substantial portion of the store’s revenue. We are currently working out the details to provide drop-off dry cleaning service and in-store ironing to increase revenues and attract new customers.

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: PLEASE DESCRIBE HOW A STORE CAN BE MADE CUSTOMER-FRIENDLY BY ADDRESSING THE FOLLOWING:

Equipment Selection and Reliability

Ken Hebert, Deep South Laundry Systems: Well-maintained, accessible equipment with straight-forward controls makes things simple.

Dave Phillips, national sales manager, IPSO: Equipment should be commercial quality and built to last. When selecting a distributor to purchase equipment, they should be factory-trained in order to provide the best service should owners have any issues, and the equipment should be easy to service.

Karl Hinrichs, president, HK Laundry Equipment: When selecting equipment, make sure to partner with a quality distributor that offers durable, reliable equipment that is built to withstand use in a 24/7 Laundromat operation. Some manufacturers market the home-style machines as commercial laundry equipment. Laundromat owners find out all too soon that the machines are not built for heavy-duty operation. This causes them to spend more money in the long run on repairs and replacement equipment, and has the potential to cause customers to choose other Laundromats that don’t have machine reliability issues.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Reliable, quick machines can make the difference between whether a customer chooses your store or another. For example, if your customers get error codes and machines shut down because of too much soap or overloading, that’s a problem. It inconveniences the customer, and they get frustrated. It also can cause a headache for your attendants. Customers complain and may want their money back. You must choose professional equipment designed to take the abuse of a Laundromat.

Pricing and Cycle Times

Phillips: A store owner should survey the competitive stores in the area to learn pricing and what additional services are or are not offered. Vend prices do not need to be the lowest. However, they do need to be competitive. Prices should reflect the owner’s commitment to providing a customer-friendly environment, clean and well-lit store, new equipment, and other additional services that are provided.

David Cabral, vice president, New England Coin Laundry: Typically, a washer will have a cycle time close to 30 minutes. Shorter cycle times are popular because of the need for most customers to move in and out quickly. Pricing or vending should always take into account the value provided and the costs associated with the service.

Dan Bowe, national sales manager, Speed Queen: With the right control platform, store owners can offer customers the ability to customize their cycles for an additional fee. Advanced controls allow customers to select cycle modifications, which can include additional rinses, the use of hot, warm or cold water and extra washes. The customers choose which options they want to use, which makes them feel like they’re in control of their laundry. Not only is this customer-friendly, but it also generates additional profits for the owner.

Check back Tuesday for more on The Elements of Being Customer-Friendly!

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: SO, WHAT DOES BEING “CUSTOMER-FRIENDLY” MEAN IN THE CONTEXT OF RUNNING A COIN LAUNDRY?

Karl Hinrichs, president, HK Laundry Equipment: The basics of a “Customer-Friendly Laundromat” are clean, bright and safe, and are equipped with reliable, high-quality machines. These are the basic minimum requirements. However, in today’s world, owners should go above and beyond. Many Laundromats have added attractive décor that caters to their customers, like earth-toned colored walls with trendy art and clocks, comfortable seating with tables, entertainment that includes free Wi-Fi, high-definition flat-screen TVs, magazines and even children’s lounges that offer video games and computers.

Dave Phillips, national sales manager, IPSO: A customer-friendly store is one that is owned by someone who lives and breathes good customer service. And because of this, people want to come to their Laundromat and do laundry. The owner will monitor and be aware of and adapt concepts and ideas that customers want in a Laundromat to make sure the customers’ experiences are positive. Additionally, the Laundromat’s employees will embrace and be committed to the same customer-friendly principles.

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Customers and especially families are looking for a clean, well-lit environment where they feel safe for themselves and their children. They look for ample parking and sliding doors that make it easy to enter and exit with big baskets of laundry and plenty of equipment that’s available when they need it.

Dan Bowe, national sales manager, Speed Queen: The most customer-friendly stores are attended. When owners make the investment in good employees, they help elevate the customer experience. Attendants should be properly trained, friendly and helpful, but also feel confident in their position and enjoy what they do. Since attendants represent the store, they should be well-groomed, and greet customers, thank them for their business, help carry laundry out to cars if customers need assistance, and be there to answer general questions when they arise.

Ken Hebert, Deep South Laundry Systems: Being customer-friendly is defined by understanding your customer base and providing them with the environment/equipment they need to simplify their laundry time.

Q: WHAT RESPONSIBILITY DOES AN OWNER HAVE FOR MAKING HIS OR HER COIN LAUNDRY CUSTOMER-FRIENDLY? WHAT RESPONSIBILITY DOES A MANAGER AND/OR ATTENDANT HAVE?

Bowe: Customer friendliness starts with the management. If you don’t position your business to cater to your customers, you won’t be as successful as you hoped. Employees follow the examples management sets, so it’s essential that good customer service is an integral part in the business’ philosophy. For example, if a customer requests a refund, provide one without question. Offer to assist customers who are first-time visitors, and strike up a conversation to make them feel like they made the right decision in choosing the store.

Steve Koumaras, owner of four coin stores in Pennsylvania: Customers need to understand that although my stores aren’t staffed, the lines of communication are open. I have a way for customers to leave comments and suggestions, and I provide a phone number where I can be reached. If I miss a customer, I call them back and talk through the comment or problem with them. As an owner, I have to be customer-focused to really succeed in this business.

Hinrichs: Good customer service starts with management. If they want the store to be successful and generate revenue that will make them profitable, owners have to be customer-friendly. Otherwise, customers will go to another store that will provide them with the amenities they desire.

From an operations point of view, attendants should be welcoming, friendly and helpful. They represent the Laundromat and, indirectly, the owner. Attendants should greet all customers, ask if they need help, and if a problem arises they should help resolve it as soon as possible – whether it be soda spill clean-up or refunding money; if there’s a problem, they should do all they can to correct the problem and create a happy customer.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: It is imperative managers and attendants keep the store clean at all times. My attendants know it is a fundamental part of their jobs to pick up trash, clean up any detergent spills, etc. Also, it is our responsibility to maintain the equipment, check lint trays and ensure the washer and dryer drums are clean for the next customer.

Hebert: Owners are responsible for choosing the right location and equipment mix. They are also responsible for regularly updating/replacing paint, equipment, signage and furniture. The customer’s first impression of the Laundromat will determine whether they will use it in the future. The manager is responsible for keeping the equipment running and (for) handling customer suggestions/complaints. The attendant is responsible for keeping the Laundromat clean and inviting.

David Cabral, vice president, New England Coin Laundry: An owner should always want the customers that visit his/her laundry to feel welcome and comfortable. You can’t simply assume your customer feels safe and welcome. You need to make sure first-hand.

Kirchner: Managers and staff play an important role in attracting and maintaining a customer-friendly laundry. They need to work regularly to keep stores clean and attractive, handle maintenance issues or down machines immediately, and keep the store a pleasant place to do business and for customers to visit.

Check back Tuesday for more on The Elements of Being Customer-Friendly!

CHICAGO — American Coin-Op covered a variety of topics this year. If you happened to miss a story along the way, then you might appreciate a brief recap. Here’s a quick look at some of the more informative articles presented this year.

BUILD NEW OR REHAB?

When considering opening a new coin laundry, do you build from the ground up or look at rehabilitating an existing store? Setting your laundry apart from the competition has to be at the heart of the decision-making process, says Scott Equipment’s Carl Graham.

When building new, you can start from the ground up to create a clean, modern infrastructure so it can handle the laundry equipment you plan to install, says National Laundry Equipment’s J.D. Dixon. And you can eliminate any concerns about infrastructure issues with new construction. Choosing to rehab a store means you're locked into that location, while building new gives the prospective owner the flexibility to select the best site for his/her business needs.

New construction provides the opportunity to design a store that is highly efficient and thus equipped to get customers in and out in the shortest time possible. But what works in one store may not work in another. For example, you might choose a color scheme for a Miami store that you wouldn't for a store in Lexington, Ky.

Building new also means a much more extensive project than a rehab, taking on greater financial risk, plus it's generally more expensive.

When choosing to rehab, consultant Robert Renteria favors repairing any machines that still have useful life, then looking to buy rebuilt or refurbished machines.

Buying and rehabbing an existing laundry can save the new owner some expenses, and may allow them to avoid bureaucracy such as impact fees and code restrictions. Another benefit for choosing to rehab an existing laundry is that it already has a customer base. With a new store, you must build that customer base from zero.

LAUNDRY FURNISHING OPTIONS EXPAND

The general structure of chairs and tables typically found in coin laundries today really hasn’t changed much in recent years, but the palette of colors and textures that are available has become quite expansive, according to some manufacturers of such furnishings.

CACO Mfg. has been making Sol-O-Matic© fiberglass seating and folding tables for coin laundries since 1960. CEO Randall Chaffee says his company can now create granite-type finishes commonly seen on countertops.

High Mark Mfg.’s high-pressure laminate furniture is available in more than 500 different colors, says President Peter Valconesi, whose company produces fiberglass and laminate furniture, both standard and custom in design.

RJ Papalini is celebrating its 50th year of manufacturing furniture for the industry. The customer is accustomed to seeing coin-ops utilize bright color schemes to attract customers, but President/CEO Richard Pennington says he’s seen that trend change in places “that are not quite as economically challenged.” Operators there are looking for softer colors, browns and earth tones.

Any time spent discussing coin laundry décor will be wasted if the furniture selected doesn’t stand up to the rigors of laundry life. Resist the temptation to purchase residential-grade chairs or tables from a retailer or home improvement store, because that’s just a short-term solution. “We see it all the time, but two or three years later, they come back to us because that stuff just doesn’t hold up,” Chaffee says.

CRITERIA FOR SETTING PRICE

Upon what criteria should a laundry owner base his or her wash and dry vend prices?

“It really comes down to two issues,” says Kevin Hietpas, vice president of sales and marketing for Dexter. “No. 1 is what’s happening to his costs. How have costs impacted the viability and profitability of his business? Owners should have a good sense of where their business is tracking from a performance standpoint. No. 2 is where is he competitively.”

A store owner needs to be aware of and factor in the competition’s prices when determining his or her own pricing, says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry. “The owner’s goal should be to produce the best experience for the customers, from ambiance to equipment to services—and the costs associated with washing and drying play a large part in this equation,” he says.

While customers may not react warmly to a price change, they will understand if you explain the reason behind the change, such as higher utility rates. Hietpas believes that customers are more sensitive to how long it takes and how much it costs to dry than to small changes in wash prices.

Vending technology has enabled owners to change prices on equipment easily—during slow hours or days, for example—but avoid changing prices too often, as the practice can turn off customers.

BECOMING A MULTI-STORE OWNER

When you’re thinking about opening a second store, it’s important to go back to the basics and look at everything from location to equipment and store naming, advises Pittsburgh Laundry Systems’ Sonny Rogalla.

Carve out an area of no more than an eight-mile radius from your original store and use that as your market. Having your stores in close proximity—no more than 45 minutes from each other—allows you to easily more between stores.

Make sure to continue cultivating your relationship with the distributor that assisted you in building your original store. Distributors typically have information on existing Laundromats coming up for sale and will approach you to judge your interest. And the distributor can easily identify whether a laundry is a potential good investment.

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

Financing through a laundry manufacturer is better than using a bank, Rogalla believes, because manufacturers understand the industry better and can tailor a financial solution to meet an owner’s needs.

ONE LITTLE IDEA AT A TIME

Little changes over time can make a difference for your business, advises columnist Howard Scott. Here are a number of little ideas he’s seen in different Laundromats, or been told about, or that just popped into his head:

• Hang a purple neon sign in your window
• Put a sandwich board sign on your front sidewalk
• Announce that you offer high-quality equipment
• Place a wooden bench out front
• Sell three sizes of laundry bags
• Offer a deal for wash-dry-fold service
• Hang a large clock in your store
• Give machines names, not numbers
• Sell a value card
• Paint a mural on your exterior side wall
• Set up a glass display of your merchandise for sale

TRACKING ENERGY EFFICIENCY

The specter of ever-rising utility costs should be enough to spur the average laundry owner to track this expense and explore ways to minimize it. Owners looking to determine their store’s level of energy efficiency need to compare the cost of utilities vs. revenue, says Maytag’s Walters.

If the store’s utilities cost is above the industry average of 20-25% of total revenue, the owner should look for ways to decrease this cost, starting with equipment. Look in the washer-extractor control software, Huebsch’s Gary Dixon advises. Are the water levels set where you wanted them? Is the water temperature different than where it was? Is the software notifying you of potential leaks?

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

Store owners who want to maximize equipment performance must regularly perform proactive and preventive maintenance tasks. “By following a recommended maintenance schedule, the laundry owner is ensuring that their equipment is operating at optimum efficiency,” Dixon says. “This translates to lower utility costs and keeps downtime to a minimum. The result is happier customers and more profit.”

EXTRA CREATIVITY, EXTRA PROFIT

Extra profit centers provide a variety of additional revenue opportunities, and some require little extra work from you and your employees, says Todd Santoro of Clean Wash Laundry Systems. Try partnering with a local dry cleaner. Establish a program where customers can drop off at your location for both services; work with the cleaner to determine the timeline and revenue split.

Pick-up service is another way to adapt wash-dry-fold to suit your business. Set a delivery radius around your store, up to 20 miles, and charge per pound to accommodate the increased costs. Pick-up is particularly important for growing your commercial laundry revenue to include clients such as spas, catering companies and salons.

Ancillary profit centers allow Laundromat owners to be creative with their offerings. An example is offering U-Haul trucks for rent. Store owners receive commission from the rentals, and attendants also set up reservations for other locations, which also nets owners a percentage of the rental.

There are many other services that a laundry can offer, but remember, consider your target demographic. Services that are quick and helpful will best serve them and you.

To read the original stories in their entirety, click the following:

Store Creation: Build New or Rehab? (Part 1)

Store Creation: Build New or Rehab? (Part 2)

Trends in Laundry Furnishings

Coin Laundry Pricing Strategies (Part 1)

Coin Laundry Pricing Strategies (Part 2)

Coin Laundry Pricing Strategies (Part 3)

Expanding Your Business: How to Become a Multi-Store Owner

Grow Your Laundry One Little Idea at a Time

Energy Efficiency: Battle Against Rising Costs Often Starts with Equipment (Part 1)

Energy Efficiency: Battle Against Rising Costs Often Starts with Equipment (Part 2)

Extra Creativity Can Lead to Extra Profit (Part 1)

Extra Creativity Can Lead to Extra Profit (Part 2)

LONG BEACH, Calif. — Social media tools such as Facebook and Twitter have grown popular because their users crave connection, says John Wayne Zimmerman, “chief rocket scientist” (CEO, actually) for eRocketfuel Social Media. Coin laundries who work to connect with customers and prospects online have the potential to generate greater business.

Zimmerman’s Chicago-based company provides training and consultation on Facebook, Twitter, LinkedIn and YouTube for associations and small businesses.

A dry cleaner in the audience of his recent Fabricare 2012 seminar asked if Groupon was considered social media, and Zimmerman answered yes. “Social (media) is defined not just as Facebook, Twitter and YouTube. It’s really defined as Internet marketing.” Internet marketing has shifted to social media because “we’re all talking to each other” through these different vehicles, according to Zimmerman.

WHY BUSINESSES NEED TO USE SOCIAL MEDIA

Three out of four Americans are using social technology today, according to Forrester Research. A Cone Business in Social Media study shows that 95% of social media users believe a company should have a presence in social media.

“There’s a comfort level today where people want to be able to talk to you today wherever they’re at. Not where you’re at, but where they’re at.”

DRIVE MORE TRAFFIC TO YOUR WEBSITE

The more people who come into your laundry, the more capacity you have to build relationships and generate business. The same is true of website traffic, Zimmerman says. A website owner controls 25% of the site’s traffic, while the remaining 75% is “the proof that other people say you are a viable source,” he adds.

Use page titles that incorporate keywords commonly used in relation to self-service laundries. Why? Because search engines base their results on keywords discovered. A nicely designed home page may be attractive to a viewer, but it does nothing to enhance the chances of your store’s site appearing in web search results, Zimmerman says. “A search engine wants to know what the content on your website is about. It needs words.”

As for the 75%, it’s about creating links using articles, directory listings and social media that will draw users of other sites to yours. This takes time and commitment, Zimmerman says, and it’s up to you to decide if the effort is worth it.

MAKING MONEY ON FACEBOOK

Facebook users are most familiar with a page’s timeline, which follows posts and other actions in chronological order, but there are ways—with the assistance of a designer—to develop custom pages, according to Zimmerman.

“Let them know the different kinds of things you do,” he says. “This is a way to bring your website to Facebook. You’re not replicating everything, you’re replicating the things that matter. Maybe the things that make the most money.”

It’s important that you dedicate yourself to posting regularly on your social media sites, because users are accustomed to seeing frequent updates, Zimmerman says. Mondays, Thursdays and Saturdays are generally the days when most people are online. “If you always consistently put out those messages on those dates, people will start to see them more.”

If you utilize Facebook well, it’s realistic to convert 10% of fans into loyal customers, and that generates revenue, Zimmerman says.

Use your Facebook timeline to strengthen your brand, Zimmerman advises. The timeline organizes status updates by date and year, plus offers the option to be more visual by adding larger and more photos and graphics.

Draw the viewer’s eye by posting a vibrant timeline photo. Upload an image from a stock photo company such as iStockphoto, or just grab your digital camera and click away. “Most people have a camera today. In the right lighting, you can make any picture look incredible.”

When people visit your coin laundry’s Facebook page, “they’re going to associate (it with) quality, or not,” Zimmerman says.

Above all, be personal with your posts. Canned, corporate social-media posts don’t build relationships, he warns.

THE NEXT BIG THING

“Video is really going to be the next big thing on the Internet,” Zimmerman predicts. While only the “YouTube stars” have realized any profits from having a YouTube presence, video elicits emotion, and people buy based upon emotion.

Come up with a video and post it to your site, he challenges. “It should be about who you are and the value that you offer, getting back to what it is that you offer people.”

TWEET, TWEET

Did you know you can search Twitter to find posts relevant to coin laundries? Go to search.twitter.com and type in a term such as “Laundromat” or “drop-off service” and any tweets containing that term will pop up.

“You can start talking to (the person) without being connected to them at all,” Zimmerman says, which is “the beautiful thing” about Twitter.

“You really don’t have to post if you don’t want to. You can just get on there to listen to people, do searches, find customers, start talking to them, fish, bring them in. It takes a little bit of time, but the results can be pretty incredible.”

However you choose to tailor your social media strategy, treat your customers like they’re the most important people in the world, Zimmerman says.

WALTHAM, Mass. — We’ve all heard the phrase “bigger is better.” That statement can hold true when deciding to install large-capacity machines in your store. Manufacturers continue to build larger machines, and for good reason—larger-capacity machines improve profitability.

The steady growth in popularity of machines with capacities of 60 to 80 pounds has allowed manufacturers to construct reliable and durable products that have increased in longevity, have better utility consumption, and allow owners to be competitive in the marketplace.

MORE PROFITABLE

Store owners need to consider how much profit is possible per square foot. See how much space your machines are taking up and their capacities. If you can decrease the number of machines while maintaining or increasing their combined capacity, you can boost your profitability per square foot, since the machines will be consuming fewer utilities—it takes less energy to run one machine than two.

As an example, consider replacing five small machines with four larger machines that take up the same amount of square footage. The rent doesn’t change for this space, but the vend price of the larger machines increases. If each machine is being used up to three turns per day, gross income rises by approximately 20% per day, without adjusting the amount of space in your store.

By controlling variables, such as utility costs and vend prices, owners can see increased profits through these larger and newer machines.

Older machines are less efficient and wind up costing owners more, reducing their profitability. Newer machines are engineered to use up to 30% less water and energy than previous models, resulting in savings for owners looking to upgrade. Using the example above, the water and sewer costs can decrease by up to 44% when four larger machines replace five smaller ones.

ADDED BENEFITS

Although profitability and utility savings are major considerations in selecting large-capacity machines, the equipment can also help move customers through your store more rapidly.

In the busy world we live in, customers want to get in and out of a Laundromat quickly. By offering larger machines, customers can clean larger loads, helping to reduce the amount of time they spend completing the laundry chore. Helping customers save time is something they will appreciate, which can turn them into loyal customers.

Additionally, larger machines can improve the traffic flow in your store because customers are able to do their laundry in larger batches. During busy times—like the weekend—an efficient traffic flow helps increase revenue.

The machines can also make your store the preferred stop in the area. Since it’s important to stay ahead of the competition, if your store offers larger-capacity machines and the one down the street does not, you are more likely to win the business.

GOOD EQUIPMENT MIX

Of course, a store cannot have only 60- and 80-pound machines; a good equipment mix is still essential when considering the addition of larger-capacity machines.

Although a large-capacity machine can be profitable at various locations, they have become especially popular in inner-city locations. Generally speaking, there are larger families in cities. More people mean more clothes, and the larger machines help these families get in and out of a laundry quickly.

IMPORTANT CONSIDERATIONS

As with any major business decision, there are certain factors that owners should be aware of when considering the addition of larger equipment to their store. This is when the help of an experienced distributor comes into play.

The first question an owner should ask is, “How am I going to pay for this equipment?” You must be sure that the equipment selected is going to be profitable for your business down the line. Your distributor should be able to provide a quantitative analysis of the projected utility savings and profits with the addition of these machines. And because large machines are not the best fit in all circumstances, this report is essential for a laundry owner to decide whether or not their store will profit from the equipment.

Structural changes also need to be taken into consideration when deciding on larger machines. For example, an 80-pound washer-extractor requires a concrete pad to be added to the floor. Plumbing and electrical systems may also need to be redone to handle the larger machines. Additionally, the hot water heater may need to be adjusted to handle the increase. Again, these are all costs to consider when pulling the initial quantitative report with your distributor. As long as the projected profit outweighs these costs, the store should consider investing in the larger machines.

FUTURE SAVINGS

As the trend continues toward the addition of larger machines in stores, it’s important to be aware of the benefits these machines can bring, including profitability, utility savings and customer loyalty. As with any major project, it’s important to consult with your distributor to ensure you choose the most profitable option for your store.

LONG BEACH, Calif. — Brian Wallace, president/CEO of the Coin Laundry Association, was given a daunting task: to capture the audience’s attention during the final hour of a regional dry cleaning and laundry trade show in sunny Southern California.

But his task was no more challenging than one faced by every self-service laundry operator: to successfully market his or her store(s) in an environment where potential customers have access to information almost instantaneously and from a variety of sources.

On top of all the other “hats” that a laundry owner “wears”—customer service, maintenance, production, human resources, accounting—he or she can add one more hat to that mix: director of marketing, Wallace told attendees of Fabricare 2012.

“You work incredibly hard for your business, but the fact of the matter is things have changed. … We’re all trying to reinvent ourselves on the fly, trying to deal with the new marketplace. I think that trying to come to grips with some of the new marketing techniques is really an important part of that overall process.”

You may worry about not having the time and money to boost your laundry’s marketing profile, says Wallace, but you shouldn’t.

“What I’ve found exciting about social media, digital media, web, all these different things that have come along the last couple of years, these are almost all low-cost or no-cost opportunities.”

Where is the first place that consumers look, according to Wallace, for local business information? They look to search engines (33%), printed Yellow Pages (23%), online Yellow Pages (22%), local search sites (13%), and mobile apps/social media outreach (9%).

And 77% of all users will research online before they’ll walk through a laundry’s door, he says.

“If we want our businesses to be successful, we need to make sure that our message is where the people are.”

Thus, Wallace ran down a list of ways in which a laundry operator could promote his or her business today. Here are 1 through 5:

1. CLAIM YOUR BUSINESS LISTING AT GOOGLE PLACES AND SIMILAR SERVICES

Google Places is a free business directory offered by Google, the largest search engine in the world and the second busiest website overall. Nearly three-quarters of all web searches happen through Google, Wallace says.

Google Places allows a business to create an informative page about its location, services, hours of operation, and more, using text, images and even video.

“By claiming your business, you’re essentially saying, ‘Google, that is my (laundry). I am the owner,’” Wallace says. “And once they confirm that with you, it’s a pretty easy process.”

Once a listing is established, the business has the ability to edit the presentation so that it is always accurate and up to date.

“The search engine’s job is to deliver the best possible results for the customer,” he says. “So, they’re going to put a lot more weight on a listing that’s been claimed by the business owner, that’s been fleshed out with all the pertinent information. It’s going to deliver better results.”

Once you’re created a profile for Google Places, it’s simple to “copy and paste” the data into other services such as Yahoo! Local, Bing Local, Yelp and Merchant Circle.

“Do your prospective customers a favor—the ones that want to spend money with you—help them find you.”

2. GET A WEBSITE

If your laundry maintains a business website, great. If your laundry is among the 46% of small businesses that still don’t have a website, get one.

If you don’t think it’s something that you or someone affiliated with your business can do, there are any number of companies that offer website design services with small businesses in mind.

Wallace’s association builds websites for its members for free. “We believe the best way to grow the coin laundry business is to make sure that every single laundry owner is available on the web to be found by consumers.”

3. CREATE A FACEBOOK PAGE

Facebook boasts more than 600 million active users, 50% of whom use the site on a daily basis. But, you ask, why should I market my laundry on Facebook?

• Your customers are here
• Competitors might be here already
• It’s easy to create and update your page
• You can share all types of information in almost any format
• Being here aids in search engine placement

“Even if you think it’s garbage, even if you don’t care about your friend or your college roommate, what they’re up to, if you cut through the clutter, this is where people are finding businesses,” Wallace says. “This is where they’re getting referrals, this is where they’re finding out where their friends and family are doing their dry cleaning, and who they like and who they don’t.”

So how do you get started? Create a Facebook page, but do notcreate a personal profile (one with an e-mail address). And before you create a page, search the site for an existing “Facebook Places” page for your business and claim that instead.

4. MONITOR BUSINESS REVIEW SITES AND REPLY WHEN APPROPRIATE

In the past, when someone had a certain experience—good or bad—at your business, they told their friends and family. Today’s web-savvy customers are also likely to post a review of your laundry on sites such as Yelp, Merchant Circle and others that millions can read 24/7.

Wallace often hears from laundry owners who avoid sites like this because of negative reviews. But he says that sticking your head in the sand is not the answer.

“The genie is out of the bottle. The toothpaste is out of the tube. It’s out there. It’s happened. You don’t have a choice in the matter. Your business is already being discussed in this manner. You may lament it. You may like the old days, but they’re gone.”

He sees a negative online review as an opportunity for you to respond to a customer’s complaint, just as you would have had you received it at your business, and to promote your laundry’s benefits.

“Part of this is not only responding … but encouraging people to review you, because you run a great shop. That bad review is one rotten apple in the barrel. Most of your customers love you. They see you every week. You need to get that volume going too.”

5. CONTESTS AND A CUSTOMER DATABASE

Contests can increase community awareness of your business, plus enable you to network with customers (more personal equals more loyal). You can create repeat customers while also building a customer database for use in direct or e-mail marketing.

Every laundry should develop a customer mailing list, preferably one that includes e-mail addresses, Wallace says. Stay in touch with your customers through offers and information in order to retain their business; plot their locations on a map to help plan for future advertising.

And don’t be above “bribing” customers for information through raffles, giveaways and surveys.

Tomorrow in Part 2: E-mail newsletter, Google AdWords, foursquare, Groupon and more

CHICAGO — Is it fun in the sun or the dog days of summer in your store this time of year? Nearly half of the store owners who took this month’s AmericanCoinOp.com Wire survey say that summer is worse than most seasons (36.8%) or is the worst season (10.5%) in terms of business.

Approximately 16% say that summer business is the same as other seasons, while 26.3% think it’s the best season and 10.5% think it’s better than most seasons.

Fewer than 22% of respondents run specials or promotions specifically during summer. They offer things like cash raffles, gift-card drawings, and fluff-and-fold or dry cleaning specials.

“I do a two-for-one comforter special because they are easy to do,” says one owner, “and it helps a lot of people get a job done that they normally would wait until busy winter months to do.”

More than half of respondents (52.6%) say that customer habits, such as when they do their laundry and how often, tend to change during the summer and this affects their store’s hours, attendant scheduling, etc.

With most children on summer break, that means more opportunities to tag along with Mom or Dad to the Laundromat. But 52.6% of respondents don’t think there are more child-related issues—screaming, running throughout the store, etc.—during summer than other times of the year. Roughly 42% believe there are more child-related issues in the summer, and 5.3% aren’t sure.

What’s the worst thing about running a self-service laundry during the summer? Paying higher utility bills, trying to keep their store comfortable, fielding more customer complaints, and having fewer customers were some of the more common responses to the survey question.

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

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

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

NEW YORK — Does your coin laundry have a social media presence? Not only consumers find their way onto the popular social network sites, an increasing number of businesses also use it.

Results from a recent study show that eight out of 10 U.S. companies are present on Facebook, while 45% have Twitter accounts. LinkedIn (48%) and YouTube (31%) are other widely used sites.

Four out of 10 American companies listen to what consumers say about them on social network sites, and 83% of companies indicate they always deal with questions or complaints sent to them via social media.

“Social media makes conversations between consumers very transparent,” says Prof. Steven Van Belleghem, partner at the research agency InSites Consulting, which surveyed more than 1,200 managers and business owners from several countries. “Companies can quite easily discover what people are saying about their products and services. An increasingly growing group is strongly interested in this real-time feedback from the market.”

But a mere 11% of companies are integrating their social media approach into their overall business strategy, while 17% say they are mid-integration. Some 26% of American companies aren’t doing anything with social media.

“A huge number of companies feel external pressure to be present on social media,” says Van Belleghem. “Unfortunately, this very often results in static corporate pages where nothing really happens. It too often leads to mere presence, not engagement with people.”