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April 23, 2013
North Dakota Fracking: A Gold Rush of Coin-Op Opportunities (Part 1)

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

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

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

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

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

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

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

CLEAN JEAN’S EXPRESS LAUNDRY

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

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

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

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

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

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

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

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

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

SUDS LAUNDRY

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

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

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

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

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

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

October 15, 2012
BDS Laundry Systems' Circus-Themed Open House Draws Record Attendance

ST. PAUL, MINN. — More than 300 attendees enjoyed seminars, access to manufacturer representatives, more

ST. PAUL, Minn. — A record 311 people attended BDS Laundry Systems' ninth annual Open House & Product Show here at its headquarters last month, the distributor reports.

Dubbed “The Greatest Laundry Show on Earth,” the 2012 exhibition incorporated a circus theme, complete with elephant rides and aerial acrobatic performers. Coin laundry owners from across the upper Midwest enjoyed entertainment, food, educational seminars, access to manufacturer representatives, special pricing, and networking opportunities.

Brian Wallace, president and CEO of the Coin Laundry Association, presented The 10 Secrets to Promoting Your Laundry seminar (similar to the session he presented at Fabricare earlier this year), as well as moderated a store owner idea exchange forum featuring a panel of veteran laundry operators.

Representatives from Maytag, Electrolux and Wascomat conducted service school presentations.

“Once again, our two-day event exceeded expectations,” says David DeMarsh, president of BDS Laundry Systems. “This year’s show featured our largest-ever display of equipment and ancillary products, and the entertainment was simply unrivaled, with customers enjoying live elephant rides and professional circus act performances.”

More than $10,000 in prizes were awarded, including multiple flat-screen TVs, iPads and laptop computers.

August 23, 2012
Fall Brings Calendar Full of Distributor Open Houses, Service Schools

CHICAGO — Check the AmericanCoinOp.com calendar periodically for updates/additions

CHICAGO — The arrival of fall can only mean one thing for self-service laundry operators—a calendar full of opportunities to attend distributor special events, open houses and service schools.

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

Sept. 5 — Summit Laundry Equipment Open House, Plainview, N.Y.; 855-SUMMIT9, summitlaundry.com.

Sept. 12-13 — BDS Laundry Systems Open House & Product Show, St. Paul, Minn.; 800-688-0020, bdslaundry.com.

Sept. 12-13 — Gold Coin Laundry Equipment Founder’s Day Sale, Jamaica, N.Y.; 800-952-1474, goldcoinlaundry.com.

Sept. 15 — Professional Laundry Systems Open House and Service School, Feasterville, Pa.; 215-354-0111, plslaundry.com.

Sept. 15 — PWS Open House, San Francisco; 650-871-0300, pwslaundry.com.

Sept. 19 — D&M Equipment Open House and Service School, Skokie, Ill.; 800-451-2676, dandmequipment.com.

Sept. 19 — Valley Washers Open House, Harrisonburg, Va.; 540-434-8086, valleywashers.com.

Sept. 21 — PWS Open House, San Diego; 858-560-6969, pwslaundry.com.

Sept. 21 — Star Distributing Open House and Service School, Knoxville, Tenn.; 800-897-7570, stardistributing.com.

Sept. 27 — Commercial Laundry Sales & Service Open House, Wichita, Kan.; 316-267-6650, commerciallaundrysales.com.

Sept. 27 — Hynes & Waller Open House, Upper Marlboro, Md.; 301-249-9421, hynesandwaller.com.

Sept. 27 — Star Distributing Open House and Service School, Nashville, Tenn.; 800-897-7570, stardistributing.com.

Sept. 28 — PAC Industries Open House, Harrisburg, Pa.; 800-692-6214, pacindustries.com.

Sept. 29 — Professional Laundry Systems Open House and Service School, Orchard Park, N.Y.; 716-662-6100, plslaundry.com.

Month of October — Statewide Machinery Open House, Rochester, N.Y.; 800-527-2219, statewidemachinery.com.

Oct. 2 — Martin Ray Laundry Systems Open House, Denver; 720-359-8000, martinray.com.

Oct. 4 — Southeastern Laundry Equipment Sales Open House and Service School, Marietta, Ga.; 800-522-9274, selaundryequip.com.

Oct. 8 — Sav-A-Day Laundry Machinery Open House, St. Louis; 800-489-9274, sav-a-day.com.

Oct. 9 — Martin Ray Laundry Systems Open House, Albuquerque, N.M.; 505-883-7277, martinray.com.

Oct. 11 — Ontario Laundry Systems Open House & Product Show, Mississauga, Ont.; 888-669-4837, ontariolaundry.com.

Oct. 16 — Coin-O-Matic Open House, Alsip, Ill.; 708-371-9595, millerlaundry.com.

Oct. 16 — Commercial Laundry Equipment Co. Open House, Chester, Va.; 804-231-9668.

Oct. 17 — Commercial Laundry Equipment Co. Open House, Norfolk, Va.; 804-231-9668.

Oct. 18 — Evans Distributing Open House, Salt Lake City, Utah; 801-972-6580, evanslaundryequipment.com.

Oct. 19-20 — Western State Design Service School and Open House, Cerritos, Calif.; 800-633-7153 x208, westernstatedesign.com.

Oct. 26-27 — Western State Design Service School, Open House and Grand Opening, Hayward, Calif.; 800-633-7153 x208, westernstatedesign.com.

Check the AmericanCoinOp.com calendar periodically for updates/additions.

September 9, 2011
Fall Brings Calendar Full of Open Houses, Service Schools

CHICAGO — The arrival of fall can only mean one thing for self-service laundry operators — a calendar full of opportunities to attend manufacturer and distributor special events, open houses and service schools. Here is a brief rundown of events from the AmericanCoinOp.com calendar through October—call or visit the website listed for registration information. In many cases, space is limited.

Monday — Alco Washer Center Open House, Erie, Pa.; 800-633-7153, www.alcowasher.com.

Wednesday and Thursday — BDS Laundry Systems Open House and Product Show, St. Paul, Minn.; 800-688-0020, www.bdslaundry.com.

Wednesday and Thursday — Gold Coin Laundry Equipment Founder’s Day Open House, Jamaica, N.Y.; 718-658-2646, www.goldcoinlaundry.com.

Thursday — Wholesale Commercial Laundry Co. SE Commercial Laundry Show, Atlanta; 866-544-7228, www.laundryman.com.

Friday — Dexter Service School at Western State Design, Hayward, Calif.; 800-633-7153, www.westernstatedesign.com.

Sept. 17 — PWS The Laundry Company Annual Fall Show, Los Angeles; 323-721-8832, www.pwslaundry.com.

Sept. 19 — American Dryer Corp. Coin-Store Service School, Fall River, Mass.; sepps@amdry.com.

Sept. 21 — Midwest Laundries Fall Open House & Service School, Chicago; www.midwestlaundries.com/community/special-events.html.

Oct. 3-7 — Maytag Commercial Laundry Fall Coin Service School, St. Joseph, Mich.; www.maytagcommerciallaundry.com.

Oct. 5 — Dexter Service School at Launette, Laurel, Md.; 800-229-3036, www.launette.com.

Oct. 5 — Star Distributing Open House/Service School, Nashville, Tenn.; 800-897-7570, www.stardistributing.com.

Oct. 7 — Dexter Service School at Western State Design, Cerritos, Calif.; 800-633-7153, www.westernstatedesign.com.

Oct. 8 — Western State Design Open House, Cerritos, Calif.; 800-633-7153, www.westernstatedesign.com.

Oct. 10 — Sav-A-Day Laundry Machinery 53rd Annual Open House/Sale, St. Louis; 800-489-9274, www.sav-a-day.com.

Oct. 11 — Maytag Commercial Laundry Service School at Coin & Professional Equipment Co., Phoenix; www.maytagcommerciallaundry.com.

Oct. 11 — Southeastern Laundry/Dexter Open House, Marietta, Ga.; 800-522-9274, www.selaundryequip.com.

Oct. 12 — Maytag Commercial Laundry Service School at Coin & Professional Equipment Co., Tucson, Ariz.; www.maytagcommerciallaundry.com.

Oct. 12 — SAMCO Fall Distributor Showcase and Education Conference, Fayetteville, Ga.; 800-969-7627, www.southernautomatic.com.

Oct. 13 — Laundry Concepts Open House and Service School, Addison, Ill.; 800-845-3903, www.laundryconcepts.com.

Oct. 13 — Maytag Commercial Laundry Service School at Loomis Bros., St. Louis; www.maytagcommerciallaundry.com.

Oct. 17-20 — Maytag Commercial Laundry Fall Factory Sales School, St. Joseph, Mich.; www.maytagcommerciallaundry.com.

Oct. 18 — Dexter Service School, Albany, N.Y.; www.macgray.com/october.

Oct. 19 — Dexter Service School, Milford, Conn.; www.macgray.com/october.

Oct. 20 — Dexter Service School, Waltham, Mass.; www.macgray.com/october.

Oct. 25 — Star Distributing Co. Open House, Atlanta; 800-897-7570, www.stardistributing.com.

Oct. 27 — Coin & Professional Equipment Co. Open House & Product Expo, Phoenix; 602-248-0808, www.cpec-laundry.com.

Check the AmericanCoinOp.com calendar periodically for updates. If your company has a similar event that’s upcoming but you don’t see it listed here, post it free today. Click here to get started!

July 7, 2011
Look Before a Laundry Leap (Part 2 of 2)

CHICAGO — Are you looking to make a larger splash in the laundry industry? Are you ready to go beyond self-service laundries? If so, you may be thinking about exploring opportunities in the multi-housing laundry industry. The two industries are similar in some ways (The Same Only Different, American Coin-Op, April 2011).

Having experience in the self-service laundry industry is one thing, but expanding into the multi-housing laundry side is far different, says David DeMarsh, BDS Laundry Management, St. Paul, Minn.

Moving Forward

Like any business, the multi-housing laundry industry is not without its challenges. Instead of visiting laundry rooms, people prefer to have in-unit hookups, he says. However, installing in-unit washers and dryers can be cost-prohibitive on many fronts for the building owners, especially when it comes to utilities cost. Apartment owners may also buy inefficient equipment (leading to higher utility costs) to save money, he adds.

“People have a tendency to do one piece of laundry at a time, especially if they are not paying for the utilities,” DeMarsh says. “It’s up to the multi-housing operators to convince apartment owners that it’s far more efficient to offer laundry rooms and efficient equipment using 12-13 gallons of water per cycle, than buying in-unit equipment that can use nearly 50 gallons of water per cycle.”

The industry hopes that the growing emphasis on going “green” will prevent more in-unit hookups, DeMarsh says. “We have been competing with in-unit hookups for 15 to 20 years, and it’s a struggle.” The goal is to educate apartment owners, architects, etc., about the importance of conservation, he adds.

Government legislation aimed at conservation may also prove beneficial to route operators in their business quest.

Multi-housing operators keep a close eye on apartment vacancy rates. During the housing boom, more apartments were unoccupied. Things are changing, and the industry likes to see apartment vacancy rates of less than 5%, DeMarsh says.

Still thinking about investing in the multi-housing laundry industry? Then think about soliciting business, DeMarsh advises. “The fight [for business] is over the laundry rooms in buildings existing from 1990 or earlier. These are the bread-and-butter buildings [from a business standpoint]. Almost all the buildings built in the last 15 to 20 years have some in-unit hookups.

“The experienced route operators are competing for business, and they are dug in. This is an extremely difficult business for newcomers.”

Do it Right: 10 Laundry-Room Tips

Being a successful self-service laundry owner means knowing what customers want. Route operators face a similar challenge—the need to make the laundry facilities appealing to residents, while providing property owners with a valuable leasing tool.

Here are 10 ways from the Multi-housing Laundry Association (MLA) to keep laundry customers happy.

Convenience is the key. The primary design consideration of a laundry room must be convenience to residents. Community-area laundry rooms should be located near main traffic areas. A good rule of thumb is to place laundry facilities within 250 feet of any unit, and preferably on the same floor. This may mean having several smaller rooms, rather than one large, centralized one.

Safety counts. Just as with a self-service laundry, taking a few extra security measures, such as placing the community-area laundry room in a well-lit and adequately visible location, goes a long way in promoting resident safety. Also, consider making the room accessible only to residents by placing locks on laundry-facility doors.

Keep it clean. Arrange regularly scheduled cleaning of the facility, and provide plenty of lined trash cans to encourage resident participation in keeping the area clean.

Make sure the equipment works. Equipment needs to be checked regularly to ensure it’s in proper working order. Encourage residents to immediately report when equipment is not working properly.

Keep costs down. By charging reasonable fees for washers and dryers, you’ll see an increase in resident business.

Supply enough machines. Having the right amount of washers and dryers in a community-area laundry room reduces wait time and increases resident satisfaction. The demographic makeup of your property will help determine the number of machines you’ll need. The equipment mix will differ in number and capacity from self-service laundries.

Add technology. Technology makes doing laundry easier and more convenient for residents. Card systems are something to consider.

Don’t ignore the social element. Community-area laundry rooms are a place where residents socialize. With a few added amenities, like ample seating, you can promote a sense of community and develop the social aspect of the community-area laundry room.

Make it brighter. A fresh coat of paint will go a long way in brightening up a laundry room. Select a color that goes with the overall design and color scheme of the property. Also, by simply updating lighting, you can increase security and enhance the appearance of the laundry facility.

Accessorizing matters. Laundry rooms, like self-service laundries, don’t have to be boring places! Add a TV or stereo, and make the facility a more enjoyable place to be while clothes are getting clean.

Click here for Part 1

July 6, 2011
Look Before a Laundry Leap (Part 1 of 2)

CHICAGO — Are you looking to make a larger splash in the laundry industry? Are you ready to go beyond self-service laundries? If so, you may be thinking about exploring opportunities in the multi-housing laundry industry. The two industries are similar in some ways (The Same Only Different, American Coin-Op, April 2011).

Having experience in the self-service laundry industry is one thing, but expanding into the multi-housing laundry side is far different, says David DeMarsh, BDS Laundry Management, St. Paul, Minn.

A Big Load

Starting out in multi-housing laundry operations requires contacting an apartment owner or management company to solicit business. However, if you perform due diligence, you will quickly discover that there are only two to four national “players” competing in this industry, plus some smaller, regional competition, DeMarsh says.

“There has been a lot of consolidation in our industry,” he says. “Smaller companies have been bought out. Competition is tough.”

If dealing with the cost of operating a self-service laundry has proven to be a daunting challenge, becoming a route operator might seem overwhelming, DeMarsh notes.

“A small investment in the multi-housing industry is not a good idea,” he believes. “Running just a couple of laundry rooms is not the norm.”

To illustrate the scope of a “traditional” multi-housing laundry investment, DeMarsh says the Multi-housing Laundry Association bylaws require individuals to have at least 1,000 machines before they can join. With some laundry rooms only having a pair of machines, this could mean operating 500 locations, he adds.

“If you are trying to compete in this industry, keep this in mind: A typical route operator may have 5,000 to 6,000 machines on the small end; larger players may have more than 500,000 machines.”

Along with having a large number of machines and operating a multitude of laundry rooms, technology is now making the multi-housing laundry investment even costlier, DeMarsh explains.

While some self-service laundry operators shy away from cashless solutions, route operators don’t want residents searching for quarters. Traditional card systems, as well as debit- and credit-card usage, are being used in more laundry rooms. With an accent on efficiency, online technology and 24-hour service are now business norms, he adds.

“If you look at 20 new laundry rooms, 18 would probably offer some type of card operation. The card trend was apparent at the recent Clean Show.”

Relying on some type of card system also means reducing vandalism or theft, DeMarsh notes.

Keep in mind that these investments can be justified because operators are striving to make laundry tasks easier for the residents and streamline their business as much as possible. Unlike most self-service laundry operators, route operators are concerned about dealing with a large number of laundry rooms and time-consuming collections. “This isn’t like walking around a traditional Laundromat and collecting from the machines.”

Simply, time is money. “Efficiency is the key to the operation, and all of this comes with a cost.”

Even though a good number of self-service laundry operators only employ one or two attendants, numerous American Coin-Op surveys have consistently shown that “dealing with employees” is a major industry headache. If you don’t like dealing with employees, you might want to think twice before contemplating a multi-housing laundry investment.

An investment in the multi-housing industry generally requires hiring some type of salesperson to solicit business from apartment owners, etc., maintaining an office staff, having someone to schedule calls, and using service technicians to keep all the equipment up and running, he says. “This isn’t where a small-business operator would like to go. This is definitely more of an employee-driven business than self-service laundries.”

Even with a large staff, there is constant pressure to properly maintain numerous laundry rooms, he admits. The convenience of a laundry room is no guarantee of success.

“People may not use the laundry room if it isn’t kept up—and they shouldn’t. You need a kept-up facility, properly priced equipment, and working equipment. Give the people run-down machines in a run-down atmosphere, and they will go somewhere else—and they should. This isn’t rocket science, but it is a challenge.”

Tomorrow in Part 2: 10 ways to keep self-service laundry customers happy...

June 6, 2011
CLA Audience ‘Eavesdrops’ on Owners’ E-Marketing Discussion

May 23, 2011
Multiple Stores, Multiple Family Members (Part 2 of 2)

May 18, 2011
Multiple Stores, Multiple Family Members (Part 1 of 2)

December 31, 2010
Creating the Ideal Store (Part 2 of 2)

October 11, 2010
Vending Options Get Stranger

CHICAGO — When it comes to vending, how bold do you really want to be? Are your laundry

CHICAGO — When it comes to vending, how bold do you really want to be? Are your laundry customers ready for more than just the traditional food and drinks?

October 11, 2010
Vending Options Get Stranger

October 23, 2009
Going the Commercial Route (Part 3 of 3)

June 3, 2009
Despite Tough Times, Optimism Prevails