Content about Paint

August 21, 2012

Coin-Op Laundry Insurance Q&A (Part 1 of 2)

CHICAGO — If a coin laundry doesn’t have proper insurance protection, an incident could be difficult to recover from

CHICAGO — Fire, liability or a worker injury is a risk that a coin laundry faces every day. If the business doesn’t have the proper insurance protection in place, an incident could be difficult to recover from. In a worst-case scenario, it could even put it out of business.

American Coin-Op invited representatives from the industry’s major insurance providers to answer some questions that the average self-service laundry owner might have about protecting their business investment.

ACO: What specific coverages do you believe are absolute requirements for any coin laundry, and why?

Adam Weber, president, Irving Weber Associates: There are many coverages that are industry-specific, such as bailee coverage for operations that offer attendant service (as well as those that don’t) such as wash and fold, but may experience an equipment malfunction that damages a customer’s clothing while being processed.

Other important coverages are water damage caused by sewer system backups, signs, general liability, parking lots, and equipment breakdown (including equipment and/or boilers and machinery if present). Also, business property coverage should be considered not just for machinery but also folding tables, TVs, chairs, vending machines, computer systems, card readers, etc.

Anne Hawkins, senior underwriter, NIE: At a minimum, every coin Laundromat should carry these coverages:

Building (when owned by the business owner) — If it’s an older building and you wouldn’t rebuild, insure for actual cash value. If you would rebuild, insure for replacement cost.
Improvements and Betterments (when the business owner is a tenant) — You will need to replace the building owner’s property that is part of the building if you have a loss due to your negligence. This would include flooring, lighting, paint, wallpaper, etc.
Business Personal Property (at replacement cost) — When you determine the replacement cost, be sure to include delivery, installation and taxes because these are included in the loss amount.
Loss of Income (for minimum of three days) — This pays your profit and continuing expenses while you are out of business due to a covered cause of loss that occurs at your location.
Utility Services-Time Element — This pays your profit and continuing expenses while you are out of business due to a covered cause of loss that occurs away from your premises, i.e. downed power lines due to windstorm.
Utility Services-Direct Damage — This pays for damage done to your equipment due to a covered cause of loss that occurs away from your premises, i.e. when the power comes back on, some or all of your equipment is not working.
Equipment Breakdown — Even if you do not have a boiler at your location, there are many other pieces of equipment that can fail due to an accident such as a power surge that is not caused by a covered cause of loss, i.e. power company equipment failure.
Bailee — If you are doing drop-off dry cleaning and/or wash/dry/fold, you need to have coverage for your customers’ items that may be in your store overnight or for any length of time.
Liability — Coin laundries have high liability exposure due to the volume of customers who enter their store and stay on the premises while doing laundry.

Larry Trapani, president, Brooks Waterburn Corp.: While a Laundromat owner needs many types of coverage, here are what I feel are the most important:

Business Personal Property (AKA Contents) — This coverage protects your washers/dryers, vending machines, coin changers, basically all your stuff inside the building. Make sure the coverage is valued at “Replacement Cost” rather than “Actual Cash Value,” because if there is a claim, you want what it cost to get new machines, not the value of a 10- or 15-year-old machine. When you buy this coverage, think of how much it would cost you to replace all of your equipment if you had to buy it today.
Tenant Improvements (AKA Build-out) — This is the cost that you put into the space you are renting. It includes electrical, plumbing, lighting, flooring, etc. Sometimes, these values can be $75,000 to $100,000. It is by far the most overlooked coverage when I review competitors’ policies.
Liability — This covers slip-and-falls, children running into tables, or any other type of incident that might get you sued. Standard coverage is $1 million but some landlords require $2 million or more.
Workers’ Compensation — The truth is, the Laundromat industry is a cash business. Many store owners pay workers “off the books.” The IRS is cracking down on small business. In most states, employers are required by law to carry workers’ comp insurance. And classifying employees as “independent contractors” will not fly. More than one of my customers has been caught doing that and paid significant fines.

Steve Brodie, senior vice president, Wells Fargo Insurance Services USA: Key insurance issues are property coverage and adequate liability protection. Within these two broad segments, you want to make certain on the property side that you have full replacement cost for both equipment and tenants improvements, along with business income protection. Get your distributor involved by asking, “What would it cost to rebuild my store today?” Once you have that answer, discuss it with your insurance broker. Many times, fees (sewer hookups are a good example) do not have to be paid again.

On the liability side, review your lease as a minimum requirement, then discuss your own personal net worth, or that of the LLC, corporation or partnership that owns the store.

Last item of importance, but by no means should it be forgotten, is workers’ compensation. Laws differ in each state based on labor codes. Do not have a person in the store, even if advised by your CPA, that you call an “independent contractor” who is not covered by workers’ comp. If you have that exposure, take out a minimum premium compensation policy, evenif your CPA gives them a (Form) 1099 and classes them as independent. The only time this is questionable is if you hire another company (janitorial, for example). Make sure they supply proof of insurance and a “waiver of subrogation” from their workers’ comp carrier.

ACO: What are the biggest insurance risks in a coin laundry setting, and why?

Hawkins: The biggest risk is the liability exposure due to wet floors and/or damaged floor tiles from water leakage, plastic furniture that can collapse, lack of supervision of children, stools used to reach equipment controls, and improper maintenance of equipment.

Burglary is another big risk. When someone burglarizes a coin laundry, they usually destroy the coin boxes on each machine and vandalize coin changers. This gets expensive and happens frequently.

Trapani: The biggest risks in a coin laundry setting can be broken down into two areas:

Property Losses — The largest and most frequent claims are dryer fires. It usually has to do with not cleaning lint traps or ducts. As you can imagine, most fires cause significant damage because the dryers and washers are closely grouped together and the fire easily spreads. A good housekeeping procedure can help reduce these types of claims.
Liability Losses — While trips and falls are common, lately, I see more children getting hurt in stores. Parents don’t always pay close attention to their kids, who run into things, pull down tables on top of themselves or fall from carts. I always suggest that a store owner bolt down tables to minimize some of the risk.

Brodie: Fire and liability claims are your biggest exposures to loss and cost the most when they happen.

Weber: Fire is probably the most common and easiest to avoid. Fires can easily begin in these businesses due to buildup of lint in dryers/exhaust vents, poor maintenance of heat-limiting safety devices (switches on dryers), combustible material stored near dryers or water heaters, washing materials soaked in flammable liquids such as gasoline, and buildup of oxygen agents (bleach, for example) through overuse.

Additionally, liability claims for alleged slip-and-falls are prevalent with this industry group.

ACO: How does the status of a store—unattended or attended—affect its insurability?

Trapani: The status of a store has a significant impact on insurance premiums. Unattended stores obviously are not as closely watched as attended stores. If something goes wrong, nobody is there to minimize the damage. Insurance companies know this as well and charge accordingly. The premium can be up to 40% more for an unattended store.

A note of caution here: If your store is unattended, make sure your insurance company knows it. If there is a loss, you may have trouble collecting because the insurance company can state that if it had known the store was unattended in the first place, it would not have written the account and thus deny the claim.

Brodie: They are both insurable; the attended store might get a little bit less premium based on someone attending the store during operational hours. Around-the-clock operations, as sometimes can be found in cities like New York and Las Vegas, pose different risks and must be 100% attended, usually with two people on duty at a time.

Weber: Unattended stores are at a higher risk of theft, vandalism and claims in general. Any time a business is left unattended, it is at a much greater risk of incidences that would require the use of your business insurance policy and generally are not as desirable to insurers.

Hawkins: It may depend on the individual insurance carrier. It’s been my experience that the unattended Laundromat pays more premium than the attended Laundromat due to the vandalism issue and the lack of a witness when someone reports an injury.

Check back tomorrow for Part 2!

May 15, 2012

Appreciating Your Customers: How to Have a Successful Grand Reopening

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.

March 8, 2012

Flushing Out the Restroom Issue (Part 2 of 2)

PEMBROKE, Mass. — Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices. You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Interesting

What is an interesting bathroom? Well, it’s a clean bathroom with a special touch. But no one is suggesting you spend a lot of money for super-stylish Kohler bath fixtures like the ones you might see in upscale magazines.

I was once in a small bathroom with walls and ceiling painted black, sporting red sideboards plus gold-framed mirrors in three spots. My reaction was, “Wow, isn’t this something!” The homeowner said she spent about $100 to buy the mirrors at Goodwill and paint the walls and ceiling herself to create the Toulouse-Lautrec look.

I once was in a restaurant bathroom with a decoupage collage of advertisements that filled one wall from floor to ceiling. Painted in huge print on the front door was “Unisex Lavatory.”

So, how could a Laundromat bathroom be deemed interesting? It could be three pictures of colorful pastoral scenes on the walls. How about a plastic sign at the entrance that reads, “In this chamber, the most brilliant thinking occurs.” Would such a light touch hurt your reputation?

How about having a calligrapher write quotations in large Roman letters, then paste them to a green outlined foam core board that you’d affix to the walls? Some suggested quotes: “We are all lying in the gutter, but some of us are looking up at the stars.” — Oscar Wilde; “Be bold, be bold, but not too bold.” — Karen Blitzen; and “Most men live lives of quiet desperation.” — Henry David Thoreau.

Put a sign on the bathroom door identifying it as “La Pissoir” (urinal). Inside, suit up a life-size mannequin in casual clothing and beret and stand it in the corner. Think French. Or put a “WC” sign (short for “water closet”) out front and hang posters depicting British life on the walls. Have some fun.

An interesting bathroom expands the user’s experience, and just might be a reason he or she visits your laundry again. Furthermore, an interesting bathroom obligates your staff to keep it clean. You wouldn’t want that mannequin standing in squalor, would you?

Click here for Part 1.

October 25, 2011

Sprucing Up Your Store

CHICAGO — When was the last time you walked through your store as if you were seeing it for the first time? If you’re in and out of your store all the time, you might take its appearance for granted.

But your customers—and prospective customers—sure don’t. They’re drawn to a particular store by its convenience, yes, but also by appearance.

Laundries that are clean, comfortable and brightly lit have a leg up on those that aren’t. Where does your store fit?

Once you’ve toured your store with your “first time” glasses on, you’ll no doubt have seen at least one or two areas that could use sprucing up that goes beyond the normal maintenance and cleaning routine.

Here are some key areas to examine with a critical eye:

EXTERIOR

To start, you need to be concerned with your visibility from the street. Is your signage large enough and easy to read? Does it stand out from other nearby signs? Is it vibrantly colored and well lit?

Having signage that is unique is important when your store is located in a strip center, especially if any of the surrounding businesses are vacant.

And it’s vital that the public can see that you run a “Coin Laundry” or a “Laundromat,” so make certain those terms stand out.

If you have a freestanding store, maximize the use of signage in your windows. You might be tempted to take a do-it-yourself approach and use tempera paint, but invest in having the signage done professionally.

Is the area around your store landscaped or at least well maintained? Just about any exterior can benefit from a fresh coat of paint on occasion.

Do you have ample parking available? Is the lot lit well? Does it have cracks or potholes? How accessible is your store to the average person and to the handicapped?

Are your windows clean and free of chips or cracks?

If your store doesn’t look so great from the outside, why would someone want to venture inside? They might equate a partially lit sign or some chipping paint outside with the quality of the service they can receive inside.

INTERIOR

Give your store a good cleaning. Often, an owner can improve their store’s image simply by wiping down their machines and keeping the floor clean.

When was the last time that you painted inside? Painting is one of the easiest and least expensive ways for a business to update its décor.

Neutral colors will broaden your decorating choices over time, but taking the plunge and painting in fire engine red or kelly green will bring excitement to the space.

Whatever color you decide upon, make sure the kind of paint you choose will be easy to clean. Select a paint that’s washable and doesn’t show dirt easily. White is symbolic of cleanliness, yes, but it may not be the best color choice for such an active environment.

A well-lit store showcases your equipment and creates a more secure setting. If your store is dim, it might be time to invest in new lighting. Good lighting with new ceiling tile can make a huge difference.

If your store happens to use T12 fluorescent lamps, now is the time to replace them: they will no longer meet efficiency standards that go into effect in July, says the National Lighting Bureau. The most commonly used 4-foot, 8-foot and 2-foot, U-shaped T12 fluorescent lamps will be disappearing from distributors’ and retailers’ shelves soon.

People don’t want to drop their clothes on a dirty floor, so keep it clean. Virtually any type of flooring can work in a laundry setting, as long as it’s maintained. Cement floors are easy to put in, and sealing the floor will make it easier to clean.

Vinyl tile is a bit more expensive but can last for years if properly maintained. Ceramic tile wears well and doesn’t require quite the level of upkeep, but you’ll pay more for it upfront.

From floor to ceiling, you have an opportunity to create a space that’s functional but comfortable. Your customers—and your bottom line—will thank you for it.

August 16, 2011

Paint Picture of Your Store for Customers (Part 1 of 2)

NASHVILLE, Tenn. — It’s no secret that millions of people, and an increasing number of businesses, interact on social media sites on a daily basis, sharing massive amounts of information.

However, the coin laundry industry lacks representation on many social media sites. And because of this, many storeowners are missing out on an effective tool to increase their business.

WHY USE SOCIAL MEDIA

As the economy continues to rebound, many coin laundry owners are still struggling to get business levels where they once were, yet many aren’t marketing their stores. To increase business, some marketing is necessary, and social media is a low-cost way to market and promote your store to millions of people. And it’s also easy and fun.

According to the Coin Laundry Association, one of the biggest advantages social media offers to consumers is a personal connection to the store. A good social media site can “paint a picture” of the coin laundry that consumers can identify with. Regardless of whether the Facebook fan has ever patronized the store, successful content on your company’s page will help create an environment of familiarity.

GETTING STARTED

Before you begin using social media, make sure your store is listed on Google Places, because many consumers use the Internet to locate businesses. You can create a free profile by visiting google.com/placesforbusiness. Follow the directions and upload a picture of your store along with the location, phone number, website and hours of operation.

Once this step is complete, if you don’t already have a personal page on Facebook, you’ll want to open an account by visiting facebook.com, and follow the directions on the right-hand side of the page. Or visit facebook.com/business.

While there are a multitude of social media sites, from Twitter to Digg, statistics have shown that Facebook is the fastest-growing and most-used social media site in the world.

USING FACEBOOK

Through your personal Facebook page, you can open a company page for your coin laundry. Click on the “Create a Page” tab at the bottom of the home page. In order for your page to be a success, you will need to recruit fans. You can accomplish this by sending a request to your current Facebook friends on your personal page.

You can also choose to create your own pay-per-click ad that will be featured on Facebook. This form of advertisement lets you create your ad, and then set your own budget in terms of how much you want to spend to advertise your company’s page on the site. You can target your ad to specific demographics as well. For example, if you live in Louisville, Ky., you can target Facebook fans living within a 10-mile radius.

As your fan base increases, you will need to make sure you’re updating your page with relevant and interesting content that not only keeps your fans coming back each day but will also drive them into your store. Plan on spending a few hours a week updating your page.

Next page: How to increase store traffice using Facebook...

January 6, 2011

New Year, New Opportunities

December 31, 2010

Creating the Ideal Store (Part 2 of 2)

December 29, 2010

Creating the Ideal Store (Part 1 of 2)

June 16, 2010

One Way to Improve Business

November 6, 2009

Sprucing Up Your Store: Appearance Does Matter (Part 1 of 2)

December 17, 2008