Content about Maytag

BENTON HARBOR, Mich. — Whirlpool Corp., the parent company of Maytag Commercial Laundry, has been recognized as a 2013 Top 50 Best Corporate Citizen by CR magazine, and one of the world’s Most Reputable Companies by Forbes magazine and the Reputation Institute.

The company made the 100 Best Corporate Citizens list for the 11th consecutive year and the Most Reputable Companies list for the sixth straight year.

Considered the top corporate responsibility ranking based on publicly available information, CR magazine’s Best Corporate Citizens List ranks Whirlpool at No. 42. The company climbed 27 spots this year, with its highest scores coming in the corporate governance, environment, and climate change categories.

Whirlpool also ranked No. 43 on the Most Reputable Companies list with a score of 70.03 on the Reputation Institute’s RepTrack™ Pulse, the world’s largest study of corporate reputation.

“Whirlpool Corp. has long been known for its unique sense of responsibility in the way it operates,” says Jeff M. Fettig, chairman and CEO. “Being once again recognized by some of the most respected organizations in the world for this commitment speaks to the dedication of our employees and the work they do. We are proud of these achievements and will strive to continue conducting our business with integrity and purpose.”

ST. JOSEPH, Mich. — Maytag® Commercial Laundry recently recognized standout distributor performances at its 55^th Annual Meeting in Amelia Island, Fla. The following companies excelled, Maytag says, in the coin laundry, multi-housing and on-premise markets in 2012:

• Fred Maytag Award — Receiving Maytag® Commercial Laundry’s most prestigious award was Intertrade Chile S.A., Santiago, Chile. The award is presented to the customer that best emulates the founder’s marketing philosophy and supports Maytag® Commercial Laundry brand with professionalism and integrity, Maytag says.
• Shaping the Future Award — Mac-Gray Corp., Waltham, Mass., was recognized for its history of innovation and long-time leadership in the industry.
• Multi-Housing Excellence Award — Coinamatic Canada, Mississauga, Ont., was honored for its outstanding service to the multi-housing market, including colleges and universities, condominiums and apartment buildings.
• Maytag® Red Carpet Service® Excellence Award — BDS Laundry Systems, St. Paul, Minn., was recognized as the distributor that best exemplifies excellent service and dependability.
• Top Quota Award — Tri-State Technical Services/TLC Equipment Co., Waycross, Ga., was honored for exceeding its annual sales target by the highest percentage this year.
• On-Premises Laundry (OPL) Excellence Award — Pierce Commercial Laundry, Mandeville, La., was recognized for effective and efficient service to OPL market customers.
• Maytag® Marketing Excellence Award — Equipment Marketers, Cherry Hill, N.J., was honored for its development and implementation of marketing and sales programs and overall support of Maytag® Commercial Laundry offerings.
• Outstanding Achievement Award — Richard Jay Laundry Equipment, Adelaide, Australia, was recognized for its “unmatched sales performance and use of marketing and social media.”
• Maytag® Energy Advantage™ Excellence Award — Hercules, Hicksville, N.Y., was honored for exceptional promotion and marketing of energy and water efficiency.

“We’re honored to collaborate with quality partners, such as those recognized at our recent annual meeting,” says Bob English, general manager at Maytag® Commercial Laundry. “Our successes are a direct result of the dedication and support exemplified by these outstanding customers. We congratulate and commend them for their superb efforts.”

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!

ST. JOSEPH, Mich. — Seven new Maytag® Equipped Laundry stores have opened since the brand launched in May and Maytag® Commercial Laundry says more are on the way this month.

The company introduced the concept store after recognizing the market need for “a well-designed, aesthetically pleasing and branded store.”

“The Maytag brand is the No. 1 preferred and most recognized brand in laundry,” says Randy Karn, national sales manager. “We saw a void in the market and are now delivering a concise, well-developed concept store built on the 100-plus year equity of the Maytag brand.”

Maytag® Equipped Laundries are open for business in:

• Salisbury, Pa.
• Lackawanna and Addison, N.Y.
• Haledon, N.J.
• Mississauga, Ont., Canada
• Calera, Ala.
• Laurinburg, N.C.

Another eight stores are scheduled to be finished by the end of February, Maytag says.

Scott Rider, owner of the Lackawanna store, calls the Maytag® Equipped Laundry store program “the complete package.”

“The support from my local distributor was exceptional, and I’m already planning to open additional stores. My doors have been open since September and I’m seeing enough of a revenue increase that I’m expanding my store’s services.”

“The main thing that sold me on this program was equity behind the Maytag brand name,” says David Whitehurst, who owns the new store in Calera, Ala. “All customer feedback has been incredibly positive.”

Maytag has delivered on its promise to provide a program designed to bring aesthetically pleasing and well-designed coin stores to the market, he adds.

Built on five decades of commercial laundry experience and the 100-plus year equity of the Maytag brand, the new store model encompasses more than just equipment, Maytag says. The complete package includes:

• A consistent look and feel designed with input from architects and industry experts that allow for flexibility
• Exterior and interior signage
• Complementary paint and flooring options in hues of blues, greens and neutrals
• Coordinating bulkhead and folding-table options

Maytag® Equipped Laundry owners/operators qualify for a special Maytag Advantage™ Program, which offers exclusive perks; grand opening or reopening kits with materials and timelines to help plan effectively; discounts on exterior signage; special financing options; and a free membership to the Coin Laundry Association.

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)

ST. JOSEPH, Mich. — Maytag® Commercial Laundry says it is proud to recognize National Sales Manager Randy Karn for 30 years of dedicated service to the company.

“After 30 years with Maytag® Commercial Laundry, Randy continues to be a valued member of our team,” says Craig Kirchner, global director of Maytag® Commercial Laundry. “He plays an integral role in our company’s continued growth and success, and he is as dependable as the machines he has helped bring to market.”

Karn’s interest in the commercial laundry business grew out of his years as a teenage installation and service technician for an appliance dealer. He joined the Maytag® Commercial Laundry team in 1982 as a service trainer, following his graduation from Iowa State University, and worked his way up the ranks to national sales manager.

From communication methods and office equipment to the many technological machine advancements, Karn has witnessed many changes in the industry throughout his career.

To Karn, the past 30 years have been an enjoyable journey of never-ending discovery, all the while surrounded by great people.

“I enjoy the people I meet and work with each day—whether they are colleagues or customers, I’m always learning something new from them,” he says. “It amazes me how many people spend their whole careers in the commercial laundry industry and always maintain that passion to be the best they can be every day. They’ve been a great inspiration to me.”

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

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

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

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

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

Energy Conscious Around the Clock

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

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

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

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

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

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

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

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

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

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

Financing Package

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

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

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

Location, Location, Location

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Click here for Part 1!

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 — Phil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March. The 5,000-square-foot attended store is equipped with new energy-efficient 60- and 80-pound washers that are much larger than those in competing stores and thus could command a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher quality product, we didn’t want to be perceived as the higher priced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors are at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

Your Competitor Has Undercut You – Now What?

And whether it happens intentionally or not, there is likely to come a time when a competitor will undercut you in price. Then you have a decision to make.

“If an owner is convinced that for the type of wash and dry they’re offering, the atmosphere, the other services, that they’re charging fairly, they should probably make the decision to give it some time and see if customers recognize that value and come back,” says Kevin Hietpas, vice president of sales and marketing for Dexter. He suggests giving it a month before acting.

Like any battle, a price war requires a strategy, Gauthier says. Neutrality is one strategy that allows the store owner to focus on their strengths while letting the competitor take the financial hit. But, neutrality isn’t always an option.

“Strategies are best developed after understanding a competitor’s strengths and weaknesses,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “For instance: Is their equipment mix weak? Maybe offering—and promoting—the right size machines for your market is the key. In a margin-based industry like vended laundries, price decreases should only be considered as a last—and short-term—step.”

“A store owner needs to provide his customers with assurance that they are getting the best service, equipment and experience money can buy,” says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry. “If a competitor in the area is charging less for a similar service, the store owner needs to tout the reasons why his/her store is worth spending the extra money.”

In this type of situation, the opinion of a neutral third party is invaluable, he says.

“Ask someone to visit your store, talk to the customers and provide feedback. Why would a customer pay more for your coin store? What are the perks of your store vs. the competition? This information can help an owner accurately illustrate the experience customers receive at his/her store.”

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CHICAGO — Phil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March. The 5,000-square-foot attended store is equipped with new energy-efficient 60- and 80-pound washers that are much larger than those in competing stores and thus could command a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher quality product, we didn’t want to be perceived as the higher priced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors are at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

Criteria for Setting Price?

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

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

“No. 2 is where is he competitively. None of us exist in a vacuum, so you want to understand, ‘I might want to get to a certain point, but as of right now the market won’t let me go there all at once.’ That’s a secondary concern, because I think if the owner is providing good value, it’ll be reflected in his costs. He’s not going overboard with what he’s charging, nor is he under pricing for his service.”

“We have a lot of ‘rules of thumb’ in this industry,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “When it comes to pricing, it’s typically recommended that gross monthly receipts from washer/dryer revenues should be at least four times the monthly rent and at least five times the monthly utility expenses.”

A store owner needs to be aware of and factor in the competition’s prices when determining his or her own washer and dryer pricing, says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry.

“The owner’s goal should be to produce the best experience for the customer from ambiance to equipment and services—and the costs associated with washing and drying play a large part in this equation,” Walters says.

How Do Your Front-Load Prices Compare?

American Coin-Op surveyed its e-mail subscribers about their November 2011 front-load vend prices — their lowest and highest, and whether the prices had changed since the previous November. Those polled were not asked to identify machine capacities.

Results from the anonymous, unscientific StatShot survey show the lowest and highest prices varied quite a bit among the four regions.

In the West, customers could get a front-load wash for as little as $1.50. The lowest-priced front-load washes ranged from $1.50 to $3.75. Nearly 88% of these prices were unchanged from November 2010. The remaining 12.5% of respondents had raised their lowest-price wash during the 12 months.

The price range for the most expensive front-load washes in the Western region was $2.75 to $7.89. Every respondent reported these prices were unchanged from a year earlier.

Low-end front-load prices in the South ranged from $1.75 to $4.25. Approximately 62% of respondents had kept the same low price since November 2010, and 31.6% had raised the price. Just 5.3% had lowered the price.

Southern customers faced the widest price range of all regions — $2 to $17.50. Nearly 58% of operators reported having raised their high-end price since November 2010, and the remainder were unchanged.

In the Northeast, the most inexpensive front-load prices were $1.50 to $5.50. Just 6.7% of operators had raised their prices in the previous 12 months, while the remainder had kept the prices unchanged.

When it came to the most expensive wash, Northeastern customers were paying $2.25 to $8 in November. Approximately 21% of respondents had raised this price compared to November 2010, while the remainder had stood pat.

The most inexpensive front-load prices in the Midwest ranged from $1 to $4.50. Just 5.9% of operators had raised their prices since November 2010, while another 5.9% had lowered them. The remainder had kept prices unchanged.

On the high side of front-load prices, Midwestern customers faced a range of $2.50 to $8.79 in November. Some 12% of respondents had increased prices, with the remainder keeping the status quo.

Tuesday: Should you announce a price change?