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May 17, 2012

INWOOD, N.Y. — Authorized distributor for brands’ coin and OPL equipment

INWOOD, N.Y. — Great Lakes Commercial Sales, based in Wisconsin, is now an authorized Electrolux and Wascomat distributor for coin and on-premise laundry equipment, Laundrylux has announced.

Great Lakes Commercial Sales is a full-service company providing commercial and on-premise laundry equipment sales, service and parts to coin/self-service laundries, apartment complexes, and on-premise laundry facilities. The company also has offices in Michigan, Ohio, Indiana and Illinois.

“We are pleased to welcome Dan Naumann and the Great Lakes team to the Electrolux and Wascomat distributor network,” says Laundrylux President Howard Herman. “After 20 years in the business, industry leader Great Lakes is a super addition to our family. Everyone at Laundrylux is looking forward to working with Great Lakes to further expand the business and our relationship.”

“I’ve worked with Dan Naumann and the Great Lakes team for many years now,” adds Bryan Rausch, regional business manager for Laundrylux. “Great Lakes is a professional company with an established market presence and reputation for excellent customer service. We look forward to a long and mutually rewarding relationship.”

May 16, 2012

ATLANTA — Fraud ring offered services to illegal aliens frequenting laundry

ATLANTA — Four members of a Cobb County document fraud ring that made counterfeit Social Security cards, permanent resident cards, and other fake identification documents and then sold them from a Smyrna Laundromat have been sentenced to federal prison on a charge of conspiring to produce fraudulent identification documents, United States Attorney Sally Quillian Yates reports.

The defendants, all from Mexico, received sentences ranging from nine to 28 months, plus two years supervised probation. Four additional co-defendants in the scheme have also pleaded guilty and await sentencing on various dates over the next three months.

The organization used a coin laundry located in Smyrna to facilitate the sale of the counterfeit documents and offered their services to illegal aliens who frequented the Laundromat.

Between March 2010 and August 2011, Homeland Security Investigations agents, U.S. Secret Service agents and investigators with the Governor’s Office of Consumer Protection purchased counterfeit identification documents at various locations in Cobb County, Ga., as part of an undercover operation.

The documents included Social Security cards, permanent resident cards and State of Georgia driver’s licenses. Using physical and video surveillance, agents determined the location of the organization’s counterfeit document production facility.

In September 2011, agents executed a search warrant at an apartment complex in Marietta, Ga. Agents recovered document-making equipment, including computers and printers, and recovered electronic files containing more than 2,000 images of fraudulent identification documentation, including Social Security cards, permanent resident cards, birth certificates, driver’s licenses from more than 20 states, and various other documents. Firearms were also recovered.

“Manufacturing counterfeit identification documents is a serious problem in our community,” Yates says. “These defendants ran an operation that enabled many illegal aliens to get their hands on identification that made it appear as if they were legally in the United States. This crime impacts our community in many ways, not the least of which is the negative impact on the credit history and financial well-being of people whose Social Security numbers were unlawfully used on the counterfeit documents.”

“This case demonstrates the wide-reaching effects of the manufacturing and selling of counterfeit identification documents and its impact on innocent victims and our communities,” says Reginald Moore, special agent in charge of the U.S. Secret Service Atlanta Field Office. “The importance of cooperation among our law enforcement partners remains paramount to our ability to catch those that are involved in these types of fraudulent activities.”

May 7, 2012

WASHINGTON — Findings reflect gradual recovery for multifamily apartment sector

WASHINGTON — Optimism continues for the apartment industry, according to the latest results of the National Multi Housing Council (NMHC) Quarterly Survey of Apartment Market Conditions. The findings reflect a gradual recovery for the multifamily sector that faced a 50-year low in apartment starts in 2009, which is good news for the coin laundry business.

The first-quarter survey’s four indexes measuring Market Tightness (74), Sales Volume (57), Equity Financing (62) and Debt Financing (65) remained above 50 for the eighth time in the past nine quarters. Any number above 50 indicates quarter-to-quarter growth.

“Market conditions improved across the board, even from the rather strong level of three months ago,” says NMHC Chief Economist Mark Obrinsky. “Demand for apartment residences—and apartment properties—continues to grow. We anticipate this increasing further in the coming years due in part to the large number of younger households moving into the housing market and a greater preference shown for renting.”

May 2, 2012

ST. JOSEPH, Mich. — Turnkey program handles prep work for potential owners

ST. JOSEPH, Mich. — Maytag® Commercial Laundry saw the need in the market for a well-designed, aesthetically pleasing and branded store. The manufacturer sought input from a strategically selected advisory council and has now introduced the Maytag® Equipped Laundry concept.

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

“The Maytag brand is the No. 1 preferred and most recognized brand in laundry,” says Bob English, general manager of global commercial laundry at Whirlpool Corp. “This concept store bridges an industry gap, encourages a consistent environment among vended laundry stores and offers users the dependable and reliable equipment our brand is known for—in one concise package.”

Maytag® Equipped Laundry owners/operators qualify for a special Maytag Advantage™ Program, which offers exclusive benefits and perks, such as complimentary factory service training; discounted residential appliances from Whirlpool; grand opening or reopening kits with materials and timelines to help plan effectively; point-of-purchase materials; discounts on exterior signage; special financing options; and a free membership to the Coin Laundry Association.

“The Maytag® Equipped Laundry store and owner benefits are one of a kind. We’ve done the prep work for potential owners and developed a turnkey program offering easy set-up, operation and potential for maximum profit,” says English.

More information about the store concept is available at maytagequippedlaundry.com.

April 30, 2012

CHICAGO — Maintenance schedules and other opportunities

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!

April 26, 2012

CHICAGO — Tracking energy usage and maximizing effectiveness

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 offer some important tips for corralling costs.

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

Q: How may a coin laundry owner track their operation’s level of energy efficiency?

Walters: Owners looking to determine their store’s level of energy efficiency need to compare the cost of utilities vs. revenue. If the cost of the store’s utilities is above the industry average—20-25% of total revenue—a store owner should investigate ways to decrease the cost of utilities, starting with equipment.

Dixon: First, I would suggest that the laundry owner establish a baseline. Many manufacturers, along with the local distributor, can provide an estimated energy usage per turn. The laundry owner could then adjust these calculations to reflect their specific energy costs and turns per day.

Second, compare utility bills after every change that is made to the store’s operation. If utility rates and the number of turns remain constant within the period in question, but you notice the bill increasing or decreasing, it is a quick indication that the changes you made may have had a negative or positive impact.

Q: Is tracking energy efficiency as simple as comparing this month’s utility bills to last month’s?

Dixon: It can be, but you will always have to wait for the bill to arrive. However, control technology has really advanced over the last five years. There are features such as advanced leak detection that can help you get an early jump on problems before they impact your utility bills.

Walters: No, comparing month to month isn’t the recommended way to determine a store’s energy efficiency. Usage varies by time of year and other factors. It is better to look at your utility bills over time and compare them to the net income and what percent of revenues the utilities make up.

Q: In your experience, how likely is it that a laundry owner is tracking his or her store’s efficiency?

Walters: Those who have become owners in the last four or five years seem to better understand the need to track a store’s energy efficiency, and how it affects the bottom line. The more efficient the operations, the greater the revenue for the store owner. The significant increase in utility costs has also caused long-time owners to pay attention to the costs.

Dixon: In the April issue of American Coin-Op, survey results indicated that “utilities” topped the list of problems causing business owners the most grief (State of the Industry: Operators Soldier On Amidst Lagging Economy, Increasing Costs). So, based on that feedback, I believe the majority of store owners are cognizant of the impact that utilities have on their bottom line. Yet, many are not tracking their store’s efficiency. I don’t believe it is because they do not want to, but more about how they can utilize available tools to do it effectively. Here is where a good relationship with a local distributor can be priceless.

Q: Why is it even important to track this?

Dixon: There are two reasons: first, there is the obvious impact on a store’s profitability. We can probably expect utility costs to continue to rise. Therefore, tracking a store’s efficiency is a variable that is important to monitor. The second is customers.

Again, in the April issue, survey results indicated that “lack of customers” and “equipment maintenance/repair” were on the top-five list of problems causing business owners the most grief. A great story to differentiate a business may be to announce that it is concerned about natural resources and is going “green.” This may attract customers who are like-minded. In addition, this may require the purchase of newer equipment that will allow the store owner to track and tweak energy consumption. Newer equipment certainly is more energy-efficient and may attract customers to a location. In addition, newer equipment tends to command a higher vend price.

Walters: Tracking energy efficiency is essential for store owners looking to increase revenue and improve their bottom line. By educating themselves on utility costs and what percentage of their current revenue is going toward energy, water, etc., an owner can determine the store’s energy efficiency.

Q: Discuss some of the laundry equipment features that contribute to greater efficiency today. What features have been improved over the years?

Walters: Regarding dryers, a tempered glass door, better seals, and a solid dryer drum help keep warm air in the drum, which forces more heated air through the load to reduce dryer use. Fast-drying axial airflow system, increased insulation and double-paned windows keep heat contained in the dryer basket, enabling clothes to dry more quickly with a lower Btu output.

Looking at washers, a higher spin speed, or G-force, removes water from clothes. The more water extracted during the spin cycle, the less time (and energy) is needed to dry a load of laundry.

Meeting energy- and water-efficiency standards (i.e. Modified Energy Factor (MFE), CEE Tier, Water Factor (WF) and ENERGY STAR® requirements) play a considerable role in washer energy efficiency.

Dixon: Laundry equipment has and will continue to evolve as technology becomes available. Today’s products use less electricity and Btu. Some of these changes have been mandated by government regulation, but most have been developed by manufacturers to offer product differentiation. However, the real excitement is in the control technology.

It is now possible to regulate up to 30 different water levels, the temperature of the water, spin speed and detect leaks. Auditing software makes it possible for the laundry owner to make changes quickly if necessary. You no longer need to wait for the utility bill to arrive to discover that you may have a problem.

Check back Monday for Part 2!

April 24, 2012

BENTON HARBOR, Mich. — Company ranked for 10th consecutive year

BENTON HARBOR, Mich. — Whirlpool Corp. has been named one of Corporate Responsibility Magazine’s100 Best Corporate Citizens for the 10th consecutive year. Whirlpool ranked No. 69 on the magazine’s 13th annual list, which is regarded as the top corporate responsibility ranking based on publicly available information.

Last year, Whirlpool ranked No. 85. Its move of 16 spots can be attributed to high scores in the Corporate Governance, Employee Relations and Philanthropy categories.

“We are honored to be named one of the best corporate citizens for a decade straight,” says Jeff M. Fettig, chairman and CEO of Whirlpool Corporation. “Whirlpool Corp. strives to conduct business with integrity while continually keeping a diverse workplace as a guiding principle. It is a priority for us to improve communities—with sustainable and innovative products and operations, as well as giving back to the communities where we live and work.”

Launched in 2000, the 100 Best Corporate Citizens List is based on more than 318 data points of publicly available information in seven categories: environment, climate change, human rights, employee relations, corporate governance, philanthropy and financial performance.

Whirlpool has also recently been named to the Forbesand Reputation Institute’s Most Reputable Companies in the U.S. and Fortune’sWorld’s Most Admired Companies lists.

April 23, 2012

ST. JOSEPH, Mich.— Distributor best exemplifies service, dependability characterized by brand

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.

April 18, 2012

EL DORADO HILLS, Calif. — Laundry donates services in exchange for green actions

EL DORADO HILLS, Calif. — Paradise Laundry is partnering with Recyclebank® to reward people for taking everyday green actions. Through the reward partner program, Paradise is giving away free laundry services.

A coin laundry uses water, natural gas and energy, so when Deborah Dower and her husband decided to open a Laundromat, she vowed to do whatever she could to help green the industry and preserve natural resources.

Recyclebank Account Manager Kevin Levy explains the concept. “It’s really pretty simple; once you have gone to our website and created an account, you select green actions you want to take—like pledging to use less energy, or recycling, or learning to live greener—and you get Recyclebank points for it.”

The points can be used for rewards at local and national retailers and online. In the case of Paradise Laundry, 50 reward points earns a $5 “wash club” card to be used toward wash, dry, or drop-off services.

Paradise Laundry opened its first coin store in Citrus Heights, Calif., in March 2010 and added a second in Roseville, Calif., last September. The company plans to add more “earth-friendly” locations in the future.

April 16, 2012

ST. JOSEPH, Mich. — The honor's primary objective is to recognize a Maytag Commercial Laundry distributor for

ST. JOSEPH, Mich. — Harco Co. Ltd., Mississauga, Ontario, Canada, recently received the prestigious Fred Maytag Award during the Maytag® Commercial Laundry 54th Annual Meeting in Marco Island, Fla.

The Fred Maytag Award, with a history of more than five decades, is the longest-running award in the commercial laundry industry, the company says.

“Enthusiasm for the industry, loyalty, and unmatched performance are synonymous with the Harco name,” says Bob English, general manager of global commercial laundry at Whirlpool Corp. “This award testifies to Harco’s strong performance in all three markets, including a 46% increase in overall business from 2010, and an all-time record year in the multi-housing segment.”

When Fred Maytag established this award, his primary objective was to recognize a Maytag Commercial Laundry distributor for outstanding achievements and remarkable performance. Recipients emulate his marketing philosophy to distribute the company’s products with professionalism and integrity.

“We are honored to receive Maytag Commercial Laundry’s Fred Maytag Award,” says Robert Jackson, president at Harco. “We believe in the brand and the time-tested reliability of the company and its products. We’re fortunate to be associated with a strong and innovative industry player that supports our business in so many ways.”

Founded in 1961, and with present ownership in place since 1981, Harco was appointed as a Maytag Commercial Laundry distributor in 1984. Harco is a three-time Fred Maytag and Red Carpet Service® Excellence Award winner. In addition, Harco won the inaugural Breaking Away Award last year.

Jackson and fellow owner Robert Stevens were on hand to receive the award. Also present at the awards dinner was Fritz Maytag, grandson of founder Fred Maytag.

April 4, 2012

RIPON, Wis. — The award was presented based on year-over-year increase in overall sales, professionalism, ongoing training and other customer-support criteria

RIPON, Wis. — Gulf States Laundry Machinery, headquartered in Houston, was recently named the 2011 Huebsch Distributor of the Year. The award was presented based on year-over-year increase in overall sales, professionalism, ongoing training and other customer-support criteria.

“Our manufacturing facility can deliver machines, but it’s distributors like Gulf States that make our products stand out to customers,” says Gary Dixon, national sales manager for Huebsch. “We appreciate the hard work of everyone at Gulf States and look forward to a long partnership with them.”

Founded in 1984, Gulf States is recognized as one of the nation’s premier drycleaning equipment distributors, Huebsch says. The company began offering coin and on-premise laundry equipment three years ago and chose to represent Huebsch products. The distributor runs regular open houses and service seminars, and prides itself on having a large inventory and a parts department that is open six days a week.

“For us, this is a great accomplishment in a very short time,” says Pravin Parmar, co-owner of Gulf States. “We only represent products we truly believe in and Huebsch is one of them. Manufactured by Alliance Laundry Systems in the U.S., Huebsch is the perfect partner for Gulf States, as we share the same vision, ‘our customers come first.’”

In addition to its Houston location, Gulf States also has a branch office in Atlanta. The distributor services southern Texas and Georgia.

April 2, 2012

FORT LAUDERDALE, Fla. — The conference will focus on increasing profits through business cycle changes and

FORT LAUDERDALE, Fla. — The 2012 Spring Educational Conference of the Multi-housing Laundry Association (MLA) will focus on increasing profits through business cycle changes; interviewing, hiring and evaluating employees; and the political picture of 2012.

Also, the group will bring back its popular route operator roundtable discussion.

The Ritz-Carlton Fort Lauderdale (Fla.) will play host to the event on April 22-24.

Three educational sessions are scheduled in addition to MLA committee meetings, networking opportunities and more.

Educational sessions on the tentative agenda include:

The Intersection of Politics and Policy, by Ron Brownstein, National Journal Group.

A two-time Pulitzer Prize finalist, Brownstein explains with lucid precision the complexities of American politics. He appears regularly on MSNBC programs, including Hardball, Andrea Mitchell Reports, and Morning Joe, and has served as a regular panelist on Face the Nation.

His sixth and most recent book, The Second Civil War: How Extreme Partisanship Has Paralyzed Washington and Polarized America, was published in 2007.

Talent Acquisition and Retention, by Deidre Siegel, PEAR™ Core Solutions.

Siegel is founder and CEO of an outsourced, human resources management firm that provides core competencies in behavioral analytics for individuals and in the workplace, talent acquisition strategies, and all levels of human resource support in areas of legal compliance and organizational development pertaining to policies, procedures, process, and people.

Her company has worked with teams in many organizations across a variety of industries. Clients are able to understand their unique business culture in a strategic manner, MLA says, and using this knowledge of specific and unique corporate dynamics, as well as the implementation of proper processes, documentation and communication, remain in growth mode perpetually.

Increasing Profits through Business Cycle Changes, by Alan Beaulieu, ITR Capital Partners.

Beaulieu co-authored Make Your Move, a book on how to increase profits through business cycle changes. He is president of the Institute for Trend Research, principal and managing partner of ITR Capital Partners, and an active member of ITR’s Investment Committee.

Beaulieu has been consulting with companies throughout the United States, Europe and Japan. His firm’s accuracy rate and unique position—with more than 60 years of calls throughout every major historic economic turning point—as well as his extensive understanding of business cycles and the ability to explain the implications makes his presentation unique, MLA says.

Away from the conference, attendees can take advantage of Fort Lauderdale’s art and museum tours, yacht charters, sports fishing, casinos and racetracks, and more.

The reservation deadline has passed at the host hotel, but rooms may still be available. Call 800-542-8680 for information.

MLA membership entitles each company to two complimentary registrations. Additional registrants or guests may attend at a registration fee set to cover the cost of food, beverages, and speaker expenses.

To learn how to register, call 800-380-3652 or e-mail nshore@mla-online.com.

March 29, 2012

PLYMOUTH, Mass. — Taking care of customers is Job No. 1 for store owner Neil King and his staff

PLYMOUTH, Mass. — At Mayflower Laundry, located in a former shopping plaza, it’s all about providing good customer service, says owner Neil King.

“We take care of our customers, that’s number one. We have a clean place. We are open seven days a week, 6 to 10. There’s always an attendant on duty. We have the right mix of machines, to let customers do their laundry in a hurry if they want to. We offer personalized wash, dry and fold. We have pickup and drop-off to offer maximum convenience.”

As a result, Mayflower takes in $360,000 in revenue annually. The company earns a profit out of that volume by keeping a rein on expenses—doing 25% of its own repairs, holding down utilities to 20% of volume, and having no debt. It helps that the operation depends little on marketing, rather relying on word of mouth to generate most of its business. Finally, rent plus fees are a reasonable 11% of volume.

The 2,000-square-foot Laundromat has a transportation company and a health club as plaza neighbors. It is right off the main road and has unlimited parking. Inside, the facility is clean, spacious, with many individual workstations. A ceramic-tiled waiting room contains padded seats, magazines, as well as children’s toys. Framed paintings adorn some walls. A glass-walled office at the entrance is where management and staff do their paper work. This placement allows close monitoring.

Two 50-pound dryers and 36 30-pound dryers, all from American Dryer Corp. (ADC), are positioned along one wall. Mayflower’s washers, manufactured by either IPSO or Continental Girbau, include two 75-pound front loaders, eight 40-pound front loaders, five 25-pound front loaders, six 25-pound high-speed front loaders, two 40-pound high-speed front loaders, and two conventional top loaders.

Several vending machines, including a soft drink machine, a snack machine and gum machines, stand alongside the seating area. “I don’t make much out of the Coke machine, but I fill my snack unit by going to BJ’s (Wholesale Club) and I do OK,” King says.

1,800 WASH-DRY-FOLD POUNDS WEEKLY

Keeping the customers happy largely falls on the shoulders of King’s manager, Michelle Ligue. She and her staff of four part-timers are responsible for maintaining clean premises, solving customer problems, and keeping the flow of wash-dry-fold work going. The staff processes 1,800 pounds each week at $1.10/lb.

“I’ve been here 12 years and I know most of the customers,” Ligue says. “And I know 90% of wash-dry-fold customers’ phone numbers. It’s important to keep up with the work, including in-store customers, wash-dry-fold work, cleaning, and the paperwork.

“I train them [her staff] to have a system, do one customer at a time, plan ahead as to which machines to use. The worst thing is to confuse orders. For this to work, it’s necessary to be a multitasker, because a staffer might have four things needing attention at once. We each do our own customers’ wash-fold-and-dry work, so we make sure their stuff comes to them the way they want it.

“For instance, I have a woman customer who owns a lot of rental property. She color-codes everything. She is very particular about the folding. I make sure I give her exactly what she wants. It makes a difference in staffers’ take, for 75% of wash-dry-and-fold customers tip.”

As for hiring, Ligue doesn’t hire anyone too young. An applicant should have some previous laundry or hotel experience and must be used to doing physical work to be considered. Ligue says she can tell if a person is going to make it based on the first hour of training. She is not opposed to letting people go after a day.

EXPANDING ON PICKUP AND DELIVERY

King is doing pickup and delivery for eight customers and is in the process of expanding that business. “It’s good business because it is priced at $1.35 a pound, and it gives us more to work with,” he says. “The key is to keep the customers bunched together and to develop an efficient route of pickup and delivery.” He is placing a series of eight ads that will run in the newspapers of nearby wealthier communities to build up clientele.

“Price isn’t a problem,” says King. “Many prospects are two-career households and they want the convenience and are willing to pay for it. We even have customers come in here who have washers and dryers at home, but use us because they can do all their laundry in an hour and a half. We focus on convenience in this portion of our business.”

Mayflower also does a big business in comforters because the bedding is too big for conventional machines. Cleaning dry mops for municipalities is another specialty.

Having a clean facility is key to a self-service laundry’s success, according to King; he believes customers won’t use a dirty Laundromat. At Mayflower, there’s a cleaning checklist for every shift—morning, noon, and night. Dryer lint traps are cleaned three times a day, because the presence of lint inhibits air circulation and retards drying.

King attributes the ability to control expenses to having new equipment. “Our utility costs run 20% of volume, which is 5% less than industry average. Newer machines are highly efficient, three-phase machines. It also helps that all dryers are powered by gas.”

King motivates his staff by paying them 20% of the wash-dry-fold business that they do. This keeps them turning out good product. Finally, it helps that everything is owned. Mayflower operates with a $50,000 equity line of credit, but doesn’t owe a cent on the investment.

With the company well positioned in the Plymouth-Kingston-Duxbury market, King has no plans to open another operation. Instead, he wants to build up drop-off and pickup service and continue relying on his staff to run the enterprise. This way, he only has to spend a few hours a day at the laundry and can devote more time to his real estate and other business interests.

“It’s a good business because you don’t have to be there, and you can still make money,” King says.

March 20, 2012

BISMARCK, N.D. — Laundry owners differ about willingness to

BISMARCK, N.D. — Oil field clothes can tear up a washing machine. Several laundry businesses have had to close their doors to workers but others are building their businesses around the boom.

A sign on the door of King Koin Laundrette Car and Dog Wash at 2125 E. Thayer Ave. reads “Because of odor and residue problems, we no longer allow oil field clothes in this establishment.” Owner Mike Walsh hung it there about two years ago when damage to his washing machines and dryers became too much.

“We tried for about three years,” Walsh said. “Now we refer them to somebody else when they call ... It was just getting out of hand.”

A similar sign hangs at Interstate Laundry and Carwash at 1438 Interstate Loop. Customers can be charged for washing oily clothes at Boulevard Laundromat at 1310 E. Boulevard Ave. A new machine can cost as much as $10,000 and the upkeep became too high as more oil field workers made their way to Bismarck.

Walsh said the gloves the workers wear are saturated in oil and it was getting left behind in the washers.

“It wasn’t a good fit for us,” Walsh said. “We had to protect our other customers so when they bring their stuff in, they don’t get their stuff ruined.”

Walsh also is short on dryers. It can take as long as an hour and a lot of cleaning supplies to get one back in working order after oil field clothes have been in it.

“The dryers are the worst because it just bakes in there,” he said.

Soap and Suds Laundry Mat at 122 W. Bowen Ave. has opened its doors to the rig workers, though. Owner Louis Baltrusch thinks he is the only self-service Laundromat to allow oil field clothes in Bismarck.

“Why shouldn’t I work with them?” Baltrusch said.

It just takes a lot of soap to make it work.

“Before, guys would come in and use the top loaders and leave a mess behind,” he said.

Baltrusch now has three washing machines at the front of the Laundromat that he asks rig workers to use. He sees at least 30 to 40 workers each week.

“It’s really picked up the last couple years,” he said. “I’m going to have to get some more of them because they’re used so much.”

Interstate Laundry and Carwash used to have machines set aside for oily clothes too, but had to stop when the number of oil field customers increased.

Baltrusch watches for any workers as they come in the door to tell them which machines to use and what to do.

“If I see somebody coming in with a pretty dirty tote, it’s a pretty safe bet he’s a rig worker,” he said.

Baltrusch has oil field customers put two scoops soap to the washing machine in each of the first two rinse cycles. Then he has them take a towel and wipe it down when they’re finished.

“You could put in a white comforter right after and not have a problem,” he said.

Baltrusch said the water in the washer looks like mud during the first rinse cycle, but by the final cycle the water is clear. The oily clothes are then clean and don’t mess up his dryers.

Rig workers can drop off their oily clothes at Arrowhead Cleaners and Laundry Inc. at 1140 N. Third St. The company has two older machines that it uses. Turrito’s Dry Cleaners at 1041 E. Interstate Ave. and 1131 E. Main Ave. and Dakota Dry Cleaners at 820 E. Broadway Ave. do not take oil field clothes.

With very few places in Bismarck taking oil field laundry, many workers are dropping their clothes off in other towns on their way home and picking them up on their way back to work.

“I have a lot of guys call me and ask if I take oil field clothes,” said Melvin Pirkl, owner of Superior Laundry Cleaners in Dickinson, N.D. “They say we just came from Bismarck and they won’t let us.”

Pirkl said his business has more than doubled because of the oil boom. It really picked up for him about a year ago.

“I’m so busy, I don’t know which way to turn,” he said. “I have laundry bags sitting in front of me and I don’t know what to do first.”

Pirkl said he even comes in to work at night to try to get caught up. The biggest problem he faces is equipment damage due to overload.

(This article originally appeared in the Bismarck (N.D.) Tribune and is posted here by permission. You can find the original article here.)

March 19, 2012

ATLANTA — Show committee picks Las Vegas-based company from

ATLANTA — The Clean Executive Committee has selected Global Experience Specialists (GES) to serve as the official services contractor for the 2013 Clean Show in New Orleans.

Three companies submitted proposals for the June 2013 show. “GES did our show in New Orleans in 2009 and did a great job,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “We look forward to working with them again in 2013.”

Chicago hosted the first Clean Show in 1977. United Exposition Service Co. was the official services contractor for that event and subsequent shows. GES purchased United in 1993, and the Las Vegas-based company has continued its partnership with the Clean Show for many shows since.

GES produces 3,000 exhibitions and events annually.

The Clean Show—officially titled the World Educational Congress for Laundering and Drycleaning—attracts people across all segments of the textile care industry, from single-owner, coin-operated laundry and drycleaning establishments to giant industrial and institutional laundries and textile rental companies.

March 12, 2012

SANTA FE SPRINGS, Calif. — New exec has more than 28 years of experience in

SANTA FE SPRINGS, Calif. — Continental Girbau West (CG West) has hired Andrew “Bud” Bakker as vice president of sales. In his new role, Bakker manages and works to grow the regional distributor’s vended, on-premise and industrial laundry sales efforts.

“Bud is an incredibly experienced sales professional with undeniable character,” says Continental Girbau President Mike Floyd. “He understands field sales and comes to CG West with more than 28 years of experience.”

Bakker launched his career in 1984 as an owner/operator of Simon and Son Fine Dry Cleaning, in Woodinville, Wash., where he stayed for 11 years. He went on to serve Westport Supply, Tukwila, Wash., where he handled drycleaning, industrial laundry, hotel laundry and janitorial supply sales. Most recently, he served as the Northwest sales account manager at Dynamic Sales and Service, Kirkland, Wash., where he managed a territory including Washington, Oregon, Idaho and Montana.

A subsidiary of Wisconsin-based Continental Girbau Inc., CG West serves the California vended, on-premise and industrial laundry markets by providing equipment, parts, financing, service, warranty and training.

March 8, 2012

DENVER — The cost of repairing and expanding U.S. drinking water infrastructure will top $1 trillion in the next 25 years

DENVER — The cost of repairing and expanding U.S. drinking water infrastructure will top $1 trillion in the next 25 years, an expense that likely will be met primarily through higher water bills and local fees, an American Water Works Association (AWWA) report asserts.

The report, Buried No Longer: Confronting America’s Water Infrastructure Challenge, analyzes many factors, including timing of water main installation and life expectancy, materials used, replacement costs and shifting demographics, the association says. Nationally, the infrastructure needs are almost evenly divided between replacement and expansion requirements.

Water systems that were built in the latter part of the 19th century and throughout much of the 20th century have, for the most part, never experienced the need for pipe replacement on a large scale, the AWWA report says. “The dawn of an era in which the assets will need to be replaced puts a growing stress on communities that will continue to increase for decades to come.”

But AWWA Executive Director David LaFrance says meeting the needs uncovered in the report is not an insurmountable task. “When you consider everything that tap water delivers—public health protection, fire protection, support for the economy, the quality of life we enjoy—we owe it to future generations to confront the infrastructure challenge today.”

Some House and Senate subcommittee hearings this week have focused on water infrastructure concerns and proposed legislation to better address funding and financing options.

The AWWA report can be downloaded here.
 

March 7, 2012

RIPON, Wis. — The increase was primarily attributable to

RIPON, Wis. — Alliance Laundry Holdings LLC, the parent company of Alliance Laundry Systems, saw its 2011 net revenues increase $32 million from the previous year, according to financial results for the year ended Dec. 31.

Net revenues for the full year of 2011 increased 7.5%, to $458 million from $426 million for the full year 2010. Net income for 2011 increased $0.8 million, to $23.4 million from $22.6 million for 2010. Adjusted EBITDA for 2011 increased $2.9 million, to $83.9 million from $81.0 million for 2010.

The 2011 net-revenue increase consisted of $19.6 million in added U.S. and Canada revenues (6.6% above the prior year) and $12.4 million in added revenues outside the U.S. and Canada (9.6% above the prior year).

The overall net income increase of $0.8 million was primarily attributable to higher gross profit of $3.5 million and a loss from early extinguishment of debt during 2010 of $7.7 million with no comparable loss during 2011. These were offset by higher selling, general and administrative expenses of $4.7 million, higher securitization and other costs of $1.6 million and higher interest expense of $4.3 million.

“We are pleased with the overall results of our business in 2011, with net revenues increasing 7.5% year-over-year,” says President & CEO Michael D. Schoeb. “As expected, 2011 was a challenging year, but continued focus on our Customer One initiatives with a commitment to product innovation, and investments in growing our international footprint helped us navigate a difficult environment of increasing material costs.”

Schoeb says that while Alliance is optimistic, the company expects 2012 to be another challenging year. “The steps we have taken to improve our competitive position over the last several years give us confidence, and we expect continued sales and profitability growth in 2012.”

Alliance Laundry Systems designs, manufactures and markets commercial laundry equipment under the brand names of Speed Queen, UniMac, Huebsch, IPSO and Cissell.

March 6, 2012
WASHINGTON — The energy savings can offer up to a 70% return on investment...

WASHINGTON — Large plate glass windows are a standard feature in many coin laundries today, so the findings of a recent study about energy-savings construction may be of interest to owners and operators.

A comprehensive analysis of window film found it to be the most cost-effective energy-saving choice for Californians when used in retrofit applications on homes and businesses, according to the International Window Film Association (IWFA).

“Without a doubt, window film offers an enormous potential for energy savings in the California market in all retrofit remodeling applications,” says Darrell Smith, IWFA executive director. “When widely installed, the resulting reduction of peak demand on utilities and greenhouse gases will further the state’s reputation as an environmental leader.”

California-based ConSol’s independent analysis compared installing window film to other traditional energy-saving techniques such as updating HVAC systems, air sealing and caulking, and adding R-38 ceiling insulation. The group used many of the same processes that the California Energy Commission utilizes in determining energy savings.

In existing commercial structures, window film’s energy savings alone can offer a payback of less than two years, or up to a 70% return on investment depending on the construction, location and window film used, according to the study.

Window film offers the opportunity to lower air conditioning costs and save on lighting bills by reducing solar heat gain, while letting in natural light without the negative impact of harsh glare and UV exposure.

The full report can be downloaded here.

March 5, 2012
INWOOD, N.Y. — Robert Chateau brings 12 years of industry experience to Laundrylux...

LAUNDRYLUX NAMES CHATEAU WESTERN REGIONAL BUSINESS MANAGER FOR COIN SALES

INWOOD, N.Y. — Robert Chateau is the new Western regional business manager for coin sales for Laundrylux. His territory includes Arizona, California, Idaho, Montana, Nevada, Oregon, Utah, Washington, and Alberta and British Columbia in Canada.

“We have been working with Robert for a number of years and his sales skills, leadership abilities, and product knowledge are outstanding,” says Howard Herman, Laundrylux president.

robert chateauSan Diego-based Chateau brings 12 years of industry experience to Laundrylux. He learned to repair commercial washers and dryers while in the Navy. In 2000, Chateau joined longtime Laundrylux distributor Golden State Laundry Systems as service manager and worked his way up through the sales department. For the past two years, he has worked for Electrolux Professional, traveling to the Electrolux factories in Sweden and France many times for training.

“I saw a great opportunity with Laundrylux and am especially pleased that I will represent the Electrolux and Wascomat brands,” Chateau says.


SEAGA WELCOMES BACK BOWERSOX AS CHANNEL MANAGER

FREEPORT, Ill. — Industry veteran Dave Bowersox has returned to vending machine manufacturer Seaga as its channel manager for the full-line division. He is in charge of serving the company’s full-time customers and prospects.

While based in Seaga’s headquarters in Freeport, he will be working from his home in Minneapolis.

“We welcome Dave back to the Seaga family with open arms,” says Steven Chesney, Seaga CEO. “Dave is the epitome of what a Seaga employee should be: loyal, honest and ready to serve any and all customer needs.”

February 27, 2012

TEXARKANA, Texas - A man was sentenced to federal prison for burning a northeast Texas laundry

TEXARKANA, Texas — A 35-year-old Texas man has been sentenced to federal prison for his role in a 2008 fire that burned a northeast Texas laundry, according to U.S. Attorney John M. Bales.

Justin Rodney Glenn pleaded guilty in December to conspiracy to commit arson and was sentenced earlier this month to 60 months in federal prison by U.S. District Judge David Folsom. Glenn was also ordered to pay $169,517.12 in restitution.

According to information presented in court, from about April 1, 2008, to June 5, 2008, Glenn conspired with others to burn down commercial buildings in order to submit fraudulent insurance claims and collect insurance proceeds.

He recruited and agreed to pay individuals to set fire to the Washtub Laundry, also known as Gary’s 24 Hour Wash and Dry, which burned on June 5, 2008. This caused a fraudulent insurance claim to be submitted to Certain Underwriters of Lloyds of London, resulting in a loss to the company.

Glenn was remanded into custody following the sentencing hearing.

February 22, 2012

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.”

Click here for Part 1.
Click here for Part 2.

February 21, 2012

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.

Should You Announce a Price Change?

How should a laundry owner approach the topic of pricing with his customers? Should he alert them prior to implementing a price change?

Kevin Hietpas, vice president of sales and marketing for Dexter, says he’s seen many owners have good luck increasing prices when they are up front with their customers. For example, if you’re planning to raise prices due to higher utility rates being charged by your municipality, post a couple of articles from the local newspaper about that topic. “Customers, as much as they may not like it, understand that kind of stuff,” he says.

“As consumers, we routinely respond to price increases with little or no advance notice from the stores or makers of the products we buy,” says Gary Gauthier, national sales manager, vended laundries, Milnor Laundry Systems. “Consumers in vended laundries are no different. Store owners and their staffs should be ready to carefully respond to customer questions about the higher costs. But the vast majority of the store owners that I’ve spoken to hear very little feedback when a modest price increase is enacted.”

He recommends raising prices on different types of machines at different times, instead of implementing a sweeping, storewide increase all at once. “This puts the owner in the position of continually assessing vend levels while customers aren’t shocked when costs go up.”

“The most important thing to address regarding a change in price is why,” says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry. “Customers need to understand why prices are fluctuating. Typically, price increases can be attributed to the cost of utilities. Store owners have to stay ahead of the cost of doing business, especially in the laundry industry that depends heavily on the use of utilities.”

“The owner ends up explaining it one way or another,” Hietpas says. “That’s why I think it’s better to address it on the front end with as many facts as possible rather than feel like they’re playing catch up by explaining it on the back end.”

Shifting Prices Too Frequently?

Vending technology has enabled owners to change prices on equipment easily—during slow hours or days, for example—but care should be taken to not change prices too often. This can turn off customers, Walters says.

“Yes, altering vend prices often is not a good practice for owners looking to be successful and grow their customer base,” he says. “If customers are unsure what price to expect on a regular basis, they will look for a store that’s more consistent.”

Consistent pricing makes things easier on your customers, Hietpas says.

“A lot of customers are very good at doing the basic math in comparing between (machine) sizes,” he says. “If (one machine is) twice the size of a machine, it should be roughly twice the vend price. A lot of owners like to have rational multiples between machines to make it easier for customers to make decisions about which machine they might want to use.”

Customers are more sensitive to how long it took and how much it cost to dry than they are to small changes in wash prices, Hietpas says. “It’s the last piece they interact with, so it just seems to stick in their memory a little more.”

Tomorrow: Your competitor has undercut you – now what?
Click here for Part 1.

February 20, 2012

WASHINGTON – The U.S. Environmental Protection Agency (EPA) on Feb. 10 officially characterized tetrachloroethylene—also known as perchloroethylene (perc)—as a “likely human carcinogen,” but the agency does not believe that wearing clothing dry-cleaned with perc poses a health risk.

EPA issued its final health assessment to its Integrated Risk Information System (IRIS) database, which describes health effects that may result from exposure to various substances. The assessment provides estimates for both cancer and non-cancer effects associated with exposure to perc over a lifetime.

The agency has already taken several significant actions to reduce exposure to perc. It has clean air standards for dry cleaners that use perc, including requirements that will phase-out the chemical’s use in residential buildings by Dec. 21, 2020.

EPA also set limits for the amount of perc allowed in drinking water, and levels for cleaning up perc at Superfund sites throughout the country, which will be updated in light of the IRIS assessment.

“The perc health assessment released today will provide valuable information to help protect people and communities from exposure to perc in soil, water and air,” says Paul Anastas, assistant administrator for EPA’s Office of Research and Development. “This assessment emphasizes the value of the IRIS database in providing strong science to support government officials as they make decisions to protect the health of the American people.”

The assessment replaces the 1988 IRIS assessment for perc and for the first time includes a hazard characterization for cancer effects. The new assessment has undergone several levels of rigorous, independent peer review, the EPA says, including: agency review, interagency review, public comment, and external peer review by the National Research Council.

EPA’s updated perc IRIS assessment can be found here.

Additional information about perc is available here.