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Content about Nebraska

September 6, 2012

OMAHA, Neb. — Items of preparation: equipment mix, times of peak activity, handling of workload

OMAHA, Neb. — Every business requires a steady stream of revenue in order to be successful. In the vended laundry industry, guaranteeing a set amount of cash flow can be difficult, but adding commercial accounts can make a baseline easier to establish.

With proper preparation and marketing to neighborhood businesses, store owners can either start or grow their pickup and drop-off accounts to add revenue, providing their store with stability for the long run.

PREPARATION

Before adding commercial accounts, it’s important for store owners to look at their equipment mix. The last thing you want is to have a commercial account take up too many machines and force self-service customers to wait to do their wash. 

Another precautionary measure that a business owner should take is tracking the store activity and identifying peak times. If the store is consistently busy and there is not ample time during the day to process linen from commercial accounts, owners may want to consider adding a shift.

Another option is to add larger machines strictly for use in serving commercial accounts to a specific section of the store. This way, the commercial accounts will not affect self-service business.

After surveying what equipment you have available to dedicate to these accounts, it’s time to determine who will handle the workload.

When choosing attendants to work for your store, you want to make sure they perform their tasks to your standards. Proper training will help ensure optimal client satisfaction. For example, your attendants will need to know how to properly fold linens and how to interact with customers.

It is also a good idea to have written directions that employees can follow, especially if certain accounts have special laundering requirements.

If you plan on laundering specialty items, reach out to your local chemical supply agent. This representative will be able to ensure you have the right chemicals for specific industries, such as fire or healthcare. As with any decision, ask for a few different opinions so you can make sure to deliver your customers what they deserve.

SOLICITING BUSINESS

Once the preparations are in place to handle commercial accounts, it’s time to grow the business. One of the best ways you can go about this is by finding a niche market to serve in your surrounding community. For example, positioning yourself as the laundry specialist to service spas or providing quick turnarounds for entertainers in town is a great way to build your reputation.

An important aspect to any successful business is having and maintaining an informative website. Make sure your website is up to date and emphasizes your commercial-accounts expertise. It should be easy for potential customers to find information about your services and how to contact you. To see if your website comes up in search results, run a few searches as if you were a potential customer. If your competitors appear before you in these searches, you may need to look at optimizing your website content.

As a business owner, you must always sell your store to others. Make sure everyone you meet knows what business you offer. You never know who could become your next customer.

It’s also important to reach out to businesses within your community. For example, as an owner of five stores, I contacted human resources departments at various companies and offered pick-up and delivery services for their employees. One client uses this as a benefit to employees, and we gain an extra customer. Additionally, some of those companies may have other laundry needs, which can turn into more business for you.

Along with networking with those you come in contact with, it’s a good idea to get involved with community groups. Look for opportunities to join committees within your town’s chamber of commerce or Rotary Club; they provide great ways to meet other business owners. Remember, it all comes back to selling yourself and your business.

COMPETITION

If your community has a large population, you are bound to run into some competition. Linen services may offer customers a lower price than you, but here’s where your service and industry niche come into play. When discussing new business opportunities, it’s important to highlight what you can offer the potential customer. Many linen services do not deliver on weekends, but if you have the capacity to do this, use this as a selling technique. This is important when working with hotels that cater to weddings and large events during weekends.

SERVICE

No amount of marketing can make up for bad service. Service should be the cornerstone upon which your business is built, and this is something your employees should embody. The best referral will always come from a satisfied customer.

To accomplish great service and grow your commercial account business, make sure you have the equipment, employees and time necessary to provide superior results. These accounts can provide your store with a significant amount of dependable business and help you become more profitable.

July 19, 2012

LINCOLN, Neb. — July 5 report: 47% of U.S. land area in various stages of drought

LINCOLN, Neb. — More of the United States is in moderate drought or worse than at any other time in the 12-year history of the U.S. Drought Monitor, according to officials from the National Drought Mitigation Center at the University of Nebraska-Lincoln.

According to a report released July 5, 46.84% of the nation’s land area was in various stages of drought, up from 42.8% a week earlier. Previous records were 45.87% in drought on Aug. 26, 2003, and 45.64% on Sept. 10, 2002.

When studying only the 48 contiguous states, the drought percentage is even higher—55.96%, also a record.

“The recent heat and dryness is catching up with us on a national scale,” explains Michael J. Hayes, the center’s director. “Now, we have a larger section of the country in these lesser categories of drought than we’ve previously experienced in the history of the Drought Monitor.”

The monitor uses a ranking system that ranges from “abnormal dryness” to “exceptional drought.” Damage to crops and pastures, as well as streams, reservoirs or wells getting low, are telltale signs of moderate drought. Exceptional drought includes widespread crop and pasture losses, as well as shortages of water in reservoirs, streams and wells, creating water emergencies.

So far, just 8.64% of the country is in either extreme or exceptional drought, but it’s early in the season and the situation bears watching. “During 2002 and 2003, there were several very significant droughts taking place that had a much greater area coverage of the more severe and extreme drought categories,” Hayes says. “Right now, we are seeing pockets of more severe drought, but it is spread out over different parts of the country.

To examine the Monitor’s drought maps and conditions, visit droughtmonitor.unl.edu.

July 11, 2012

OMAHA, Neb. — Rentals of U-Haul trucks, rug cleaners, DVDs, and propane tanks are possibilities

OMAHA, Neb. — Customers come to your Laundromat to do their laundry, but what if you could offer them extra services, drawing them into your store more frequently, while producing more profit for your business, and reducing your actual staffing out of pocket costs?

Extra profit centers provide a variety of additional revenue opportunities, and some require little extra work from you and your employees. 

These business opportunities can be broken up into two categories: those that lie within your core competency and directly relate to laundry (which I covered in Part 1), and ancillary projects that can be add-ons to your main business purpose.

ANCILLARY PROFIT CENTERS

Ancillary profit centers allow Laundromat owners to be creative with their offerings. While customers are waiting for the wash, you have a captive audience who is looking for ways to keep busy. Additionally, ancillary services make more customers aware of where you are and what you offer. Think about what your customers need, then put together a plan to deliver them entertainment or convenience. The services you offer are only limited by your creativity.

U-HAUL TRUCK RENTAL

An example of a creative ancillary profit center is offering U-Haul trucks for rent. Some stores have extra parking spaces, enabling them to establish a partnership with U-Haul that allows the company to keep trucks on store properties. Owners receive commission from the rentals, and attendants also set up reservations for other locations, which also nets owners a percentage of the rental. The only cost associated with this extra profit center is affiliated with office supplies such as printer ink.

Additionally, U-Haul lists the store’s location on its website, which helps increase web traffic and visibility.

OTHER ANCILLARY SERVICES

There are many other services that your store can offer, but remember, you must consider your target demographic and know what is important to them. Services that are quick and helpful will best serve them and you.

Some ideas that could potentially work in your store include the rental of rug cleaners, DVDs or propane tanks. Also, some owners have lottery terminals in their stores. From these, you make about 5% of every ticket sold.

CHOOSING THE RIGHT SERVICE

As with every business move, there are some considerations to understand before committing to one of these extra profit centers.

Resources are a huge concern for laundry owners. For any of these services, you will need to have an attended or partially attended store, along with staff that is capable of running these services. You must train your employees so they not only know how to manage laundry, but also know how to use these services, such as booking a U-Haul reservation.

A benefit for you is that the profit centers can offset the costs of employees—especially if you require additional staff to run services. 

Don’t try to jump into multiple extra profit centers at once. Become successful with your core business, and then add profit centers one at a time as revenue increases. Offering new services requires additional oversight and time from you along with training of employees. Remember to not let your primary business suffer as you expand.

As with any big business decision, make sure to do your due diligence on the service you consider offering. Consult with your distributor who can help you see what is working at other locations and give you suggestions. Extra profit centers are a great way to be a little creative and bring in extra revenue for your store.

Click here for Part 1!

July 10, 2012

OMAHA, Neb. — Extra profit centers provide variety of additional revenue opportunities

OMAHA, Neb. — Customers come to your Laundromat to do their laundry, but what if you could offer them extra services, drawing them into your store more frequently, while producing more profit for your business, and reducing your actual staffing out of pocket costs?

Extra profit centers provide a variety of additional revenue opportunities, and some require little extra work from you and your employees. 

These business opportunities can be broken up into two categories: those that lie within your core competency and directly relate to laundry, and ancillary projects that can be add-ons to your main business purpose.

LAUNDRY-RELATED CENTERS

There are some extra profit centers that are common to the laundry industry, such as vending machines for everything from soda and snacks to detergent. These are an easy, low-maintenance option for a small amount of extra work that can easily result in 10% more revenue per month.

As the laundry industry changes and grows, many owners have added or are looking to add wash-dry-fold (WDF) services to their offerings or to increase their existing offerings to include commercial accounts. There are several ways that owners can adapt this service to fit their businesses’ needs.

One way to increase your existing service is by partnering with a local dry cleaner. Establish a program where customers can drop off at your location for both services; work with the dry cleaner to determine the timeline and revenue split. It’s important to choose a dry cleaner that is in close proximity to your store, but is far enough away that it also will benefit their business—this is a partnership and both sides must profit to be successful.

A word of caution when choosing your dry cleaning partner: evaluate their prices in relation to your core demographic before making a deal. Some stores charge $1.15 per pound for drop-off and have a 10-pound minimum to ensure profit.

Pick-up service is another way you can adapt WDF to suit your business. Set a delivery radius around your store, up to 20 miles, and charge per pound to accommodate the increased costs. The amount you charge will depend on your area of the country, but make sure to set a poundage minimum to ensure profitability. Also, make sure to target not only residential areas but also small businesses that may not have laundry on-site. Pick-up is particularly important for growing your commercial laundry revenue to include clients such as spas, catering companies and salons.

If your store is close to a college campus, offering a WDF service for students can be profitable. A way to do this is by offering a flat fee for the semester that is automatically charged to a credit card at the start of each term. Programs like these have become popular over the past year. An easy way to quickly grow your student business is partnering with an established provider, such as dormmom.com, which provides student and residential laundry service across the country.

Lastly, if you begin offering WDF service, be sure to let your local special events centers know. Entertainers have laundry needs, and you can quickly make yourself indispensable by making them aware of your services.

Check back tomorrow for Part 2: The ancillary services you may offer are limited only by your imagination...

May 15, 2012

OMAHA, Neb. — Great opportunity for unveiling fresh look at your store

OMAHA, Neb. — Have you recently upgraded your washers or dryers, changed your services or finished a retool? If the answer is yes, a grand reopening should be in your future.

A grand reopening is a great opportunity for your current and new customers to get a fresh look at your store. Although a small financial investment is required, the return can be significant for both you and your customers.

Timing

The event should be held to celebrate new machines in your store. If you’ve recently replaced all of your washers, for example, an event to highlight this shows customers your commitment to both the store and their business.

To really show off your store, make sure everything is in place. When hosting a grand reopening, you should take the time to paint the walls, wax the floor, replace stained ceiling tiles, and add new signage. Although not all of those fixes may be necessary, an event is a great time to evaluate the condition of the store. Customers assume you have functioning equipment, but the difference between your store and the one down the street lies in the details.

Now that you know what qualifies as an appropriate time to have a grand reopening, when should you actually host the event?

Although weekends are most likely your busiest period of the week, they still provide the best time for your event. More people can attend then than during the week, and it shows that you, as an owner, want to thank them for their business during a convenient time.

Market the Event

To draw the most traffic to your event, a little marketing is needed. Direct-mail pieces, flyers, or door hangers are always good options.

Also, consider community newspapers and local radio stations as a means to reach clientele.

Social media sites are another place to publicize your event. If your store currently has Facebook, Twitter or other social media accounts, make sure to promote the event through these channels. You can also offer an incentive to customers who check in to your event on Facebook Places or Foursquare.

Word-of-mouth advertising is the most flattering form of marketing. Make sure to tell current customers about the event and its highlights. They can tell their friends and family, who could wind up using your store’s services.

Activities and Promotions

If you had a grand opening, many of the events that happen during the grand reopening will be similar. When it comes to the activities offered, make sure you’re aware of your demographics.

An idea that I’ve seen work extremely well in the past is reaching out to a local radio station that resonates with your target consumer. If you have a significant Hispanic population, for example, the Hispanic radio station may be willing to broadcast from your store. The presence of the radio station will attract your primary target audience.

It’s important to plan family events as those customers bring in the biggest loads. For example, project a movie on the side of the building and create a drive-in atmosphere. This shows that you’re in tune with their needs.

Offering food at your event is essential. It can be something as simple as having a barbecue with hot dogs and hamburgers, which shows your customers that you appreciate their business—building loyalty in the process.

Promotions going on during your event draw new customers into the store. They should coincide with the machines you just replaced. For example, if you just had all new dryers installed, you may want to offer free dry time. If you’ve replaced washers, offer half off certain wash cycles. Either way, provide an incentive for customers to use the machines and become familiar with them.

You may also want to offer some sort of giveaway—especially if it ties into your new machines. For example, if you recently replaced your top loaders with front loaders, you may offer your customers a sample of high-efficiency soap. This will help them become familiar with your product, keeping them coming back regularly.

Making the Impact Last

During your event, it’s important to connect with your attendees and build a relationship that makes them become repeat customers.

In order to make a new customer a regular, you should make sure to promote your weekly specials at the event. If you offer dollar-off washes on Tuesdays and Thursdays, let your attendees know that through handouts and by word of mouth. Make sure to print materials in both English and the language spoken by most of your customers. This ensures that customers will not only understand your message, but it will help them feel welcomed at your store.

Store owners should aim for a 25-30% increase in customers following the event. Have a sign-up sheet for promotions at your event to help keep customers coming back. This can be hard to measure, but it’s not impossible.

Tapping Your Distributor for Help

If having an event at your store seems overwhelming, or if you just would like extra guidance, contact your distributor. They have been a part of events like this in the past and can offer best practices that they have found to be successful in your area.

On-Going Customer Marketing

Even after the grand reopening, you must continue to attract new customers and retain the ones you have. Try to connect with your customers every month by offering a promotion to show that you value their business.

With proper planning and execution, a grand reopening is the perfect opportunity to show how your laundry fits into the community and can help you grow your business in the process.

May 11, 2006