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April 18, 2012
Customers Can Earn Free Laundry Services by Going Green

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 3, 2012
Grow Your Laundry One Little Idea at a Time

PEMBROKE, Mass. — Just like your business grows one customer at a time, so you improve your operation by implementing one little idea after another.

PEMBROKE, Mass. — Just like your business grows one customer at a time, so you improve your operation by implementing one little idea after another. In time, your business becomes a different entity. It is little changes over time that makes the difference. Here, then, are a number of little ideas I’ve seen in different Laundromats that aren’t generally used, or little ideas told to me by others, or even little ideas that popped into my head.

HANG A PURPLE NEON SIGN IN YOUR FRONT WINDOW

Nothing attracts attention quite like purple neon. The sign could say “Open 6 to Midnight” or “We Clean Your Clothes” or simply “Laundromat.” Passer-bys will take notice, and the identification could result in new customers.

PUT A SANDWICH BOARD ON YOUR FRONT SIDEWALK

Have it professionally made. Offer a feature or a service or a price break. Better yet, put a rail on the sides of your sandwich board so ads can be added and removed at will. People walking by will take notice. You never know when this might mean something.

ANNOUNCE THAT YOU OFFER HIGH-QUALITY EQUIPMENT

Whenever you purchase some new equipment, put up a sign in your front window that reads “New Washers/Dryers” and “State-of-the-Art Equipment.”

One of the most common complaints about Laundromats is malfunctioning equipment. Coins get stuck, machines stops working, dryers have no heat, and washers don’t rotate clothes, that sort of thing. So, if you can become known as an operator who keeps his equipment in fighting trim, replacing older models regularly, this will give you an advantage in the market. The front-window sign reinforces that impression.

PLACE A WOODEN BENCH OUT FRONT

Give your customers a comfortable place to sit while waiting for their laundry to finish. Who knows, maybe two strangers will strike up a conversation. Maybe even people will become…friends. Laugh if you will, but who among us has not walked into a Laundromat with the hope of meeting someone special and finding romance. It is possible in such an environment because it’s hard to put on airs when you are doing a mundane task. I submit that if self-service laundries could further this image, they’d boost their patronage by 50%.

But whatever, a long bench out front is a nice place to wait on a mild, sunny day.

SELL THREE SIZES OF LAUNDRY BAGS

Laundromats that don’t sell laundry bags are missing a sales opportunity. Most Laundromats sell only one size, but different families have different needs. So, sell three sizes—at different price ranges of, say, $6, $8 and $10—and win extra business.

OFFER A DEAL FOR WASH-DRY-FOLD SERVICE

Most “Laundromateurs” charge a per-pound price—say $1 per pound. The customer does 15 pounds and pays $15. But how about incentivizing the offer? The first 8 pounds will cost the customer $8, and each additional pound will cost 69 cents (with a minimum order of 8 pounds). That way, the customer feels he/she is getting a deal. The same 15-pound order will cost $12.83 (8 pounds X $1 + 7 pounds X 69 cents). You’re losing $2 on this sale, but you will gain more total business.

For one thing, the customer will be happy to save money (in his/her mind) and will give you more laundry in future orders (“after all, it’s only 69 cents a pound”). Customers who haven’t tried your wash-dry-fold service will say, “What the heck, I might as well use their service instead of wasting my time here.” The loss in unit-sale dollars will result in total greater revenue. That is always the way sales incentives work.

HANG A LARGE CLOCK IN YOUR STORE

Sure, most people have cell phones and can just look at their gadget of choice to see the time. But not all of your customers have them. Why not make it easier for everyone to know what time it is? It is just a service you should provide.

GIVE MACHINES NAMES, NOT NUMBERS

Some of you don’t assign any machine identity. Others number their machines. How about giving each machine a name? You could name them after celebrities: Clooney, Madonna, Eastwood. Or professional athletes: Manning, Woods, Ortiz. Or just funky names: Orville, Fritz, Miranda. It’s a whimsical touch that might bring a smile to the face of your customer who comes to you and says, “Miranda isn’t working.”

SELL A VALUE CARD

Offer $10 worth of laundry for $8. Giving the customer a break is always a good strategy. It makes the customer appreciate you that much more. When someone has a problem, they’ll be more forgiving. When a new Laundromat opens up that is closer, your customer will remain loyal to your store.

PAINT A MURAL ON YOUR EXTERIOR SIDE WALL

Have an exterior wall that’s just a white rectangle? Select an artist, who, for a moderate sum, will paint an interesting mural the length of the side. What subject? If you are located in an ethnic neighborhood, choose a scene depicting the “old country.” If in a dull commercial area, paint a group of smiling, larger-than-life faces. If the spirit moves you/the artist, a vivid abstract will do. The point of the effort is to draw attention to your building, and thus to your Laundromat.

You ever have someone call up and ask, “Where is your place?” If you do, all you have to say, “I’m the building with the water mural.” Plus, you become an arts supporter, and that’s something you can use to rope in the arts community as customers.

SET UP A GLASS DISPLAY OF YOUR MERCHANDISE FOR SALE

Include all the detergent products in their colorful boxes, along with stain stick products, laundry bags, and whatever else you peddle. With a display case attractively arranged, patrons will have a look. You never know what might happen. If you sell soap bars (as an add-on), they might buy. They might purchase a box of detergent for next time. If you have a Laundromat decal, they might purchase that. The first rule of retail sales is to make it attractive.

If any of these ideas float your boat, give them a try. Even better, give them all a try.

March 29, 2012
Mayflower Does Right by Its Customers

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 22, 2012
Sudz Yur Dudz Positions Itself for Success

CHINO VALLEY, Ariz. — Two-year-old store relies on

CHINO VALLEY, Ariz. — It’s been more than two years since Heavenly Graham opened Sudz Yur Dudz. Like many Laundromat owners, Graham opened her store while pursuing another career. Owning the store offered her another revenue stream, while not taking too much time away from her janitorial business.

She approached the investment through careful planning and research. She chose a convenient and well-visited area in the Chino Valley shopping center, with favorable foot traffic.

With the location secured, Graham needed to determine which machinery would be best for her customers and her bottom line. She chose Pellerin Milnor and, through the guidance of local dealer Laundry and Cleaners Equipment Co., elected to equip the store with Milnor’s coin-operated washers and high-efficiency dryers.

In order to get financing, Graham submitted a comprehensive business plan to her bank, laying out strategies to create a positive cash flow. “The community rallied in support of a new Laundromat,” she said. “Our employees are professional, helpful and friendly, creating an excellent reputation, which will contribute to long-term returning customers.”

Using Milnor Capital to finance the equipment helped her to reduce her terms and have more funds for operational expenses.

Sudz Yur Dudz is located across Highway 89 from a senior mobile home park; many of the park’s residents rely on her store for their laundry services.

Four different machine capacities offer them and other Sudz Yur Dudz customers, including individuals and families, flexibility in choosing the right machinery based on their needs.

With approximately 1,500 square feet of retail space, there is plenty of room for customers to wash, dry and fold their laundry comfortably.

With only one other coin store in the area, Sudz Yur Dudz has positioned itself for success in this market. A few months ago, the store began offering commercial laundry services during off-hours to local restaurants, a car wash, a mid-size hotel and the local Humane Society. The program fully utilizes its equipment and maximizes the store’s revenue stream. 

March 20, 2012
Doing Laundry Isn’t Easy for Oil Field Workers

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 13, 2012
Survey: Nearly Half of Respondents Believe Industry Image Needs Improving

CHICAGO — Next major change for industry is predicted to be

CHICAGO — The self-service laundry industry has some work to do on its image, based on the results of this month’s AmericanCoinOp.com Wire survey.

Nearly half of the respondents to the unscientific survey—47.4%—don’t believe the self-service laundry industry presents a good image. Roughly 26% do believe the industry presents a good image, and the remaining 26.3% are unsure.

Sprucing up of stores by their operators would be the best thing to happen to the industry in 2012, according to 50% of respondents. Another 27.8% believe having fewer stores would be best. Roughly 17% think implementing industrywide price hikes would be the best thing that could happen.

As far as naming the next major change in this industry, 47.4% of respondents believe there will be no major changes in the next several years. Technology will play a greater role in their businesses, according to 31.6% of respondents.

Approximately 26% say that smaller laundries will gradually die out, while 15.8% believe that laundries will offer a broader array of services. None of the respondents see the emergence of a strong franchise operation.

Respondents also had the opportunity to comment on what they expect from their business in 2012. Several comments related to increased growth (at least two operators hope for 10% increases) while other operators just hope they can weather the economic storm and withstand what they believe will be a tough year. One operator wants to improve his/her customer service.

The Wire survey presents a snapshot of readers’ viewpoints at a particular moment, but it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take a brief industry survey anonymously online each month. All self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of this page and follow the instructions.


 

February 22, 2012
Coin Laundry Pricing Strategies (Part 3 of 3)

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.

January 25, 2012
StatShot: Three of Four Regions Post December, Fourth-Quarter Sales Increases

CHICAGO — Self-service laundry sales rose in the West, Midwest and Northeast in December, while Southern operators saw sales drop for a second straight month, according to the most recent AmericanCoinOp.com unscientific StatShot survey.

The Northeast saw the biggest month-over-month sales increase (compared to December 2010) of 8.4%. The Midwest and West each posted 4.4% increases. The South was down 6.5%, after having been down 0.7% the previous month.

One Western operator raised prices 10%, with turns per day unchanged. Wash-dry-fold sales were up 26%. “I have only laundries in county of 30,000. I think WDF (is) up because of subcontractors here for restart of copper mines.”

“Construction in the area has brought in out-of-state workers with drop-off laundry” amid an improving economy, a Midwestern operator reports.

Respondents were also asked about their 2011 fourth-quarter sales (compared to 2010 fourth-quarter sales).

Fourth-quarter sales rose 7.4% in the Northeast, 4.5% in the West, and 3.7% in the Midwest. Southern operators experienced a 7.1% decrease in the final quarter of 2011.

“(We) used coupons more this year, and less snow meant less days closed to weather,” says one Midwestern operator who also reported increased theft of laundry carts, presumably for metal scrap value.

“My sales were up, I believe, because first we expanded and added another 15 washers and 20 dryers, and we got a better mechanic to fix our machines so we have way less ‘out of orders’ than before,” reports a Western operator.

A Southern operator reported having a record quarter for wash-dry-fold business, up more than 30% from the previous best quarter.

AmericanCoinOp.com’s StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.

Audience members are invited to participate in these unscientific surveys, which are conducted online via a partner website, on a regular basis. Self-service laundry operators are encouraged to participate, as a greater number of responses will help to better define industry trends.

January 19, 2012
Super Laundry Equipment Adds Massimini to Sales Staff

PHILADELPHIA — Distributor Super Laundry Equipment has hired Daniel Massimini as coin laundry sales manager for eastern Pennsylvania and southern New Jersey. He brings more than 16 years of laundry industry experience to the company.

“Dan’s experience and commitment to his customers, along with our company’s commitment to provide the best products, best service, best prices and best financing will be a great combination and fill a void in an underserved market,” says Tom Duckworth, Super Laundry vice president.

January 17, 2012
Gold Coin Laundry Equipment Opens New Showroom

JAMAICA, N.Y. — After 16 months of preparation and renovation, Gold Coin Laundry Equipment opened its new showroom and expanded parts department last week.

The showroom featuring fully operational Dexter washers and dryers is part of a 5,000-square-foot expansion that converted old, empty warehouse space, the distributor says.

Gold Coin President Douglas Pratt says the company had customers in mind while planning the expansion. “At times, our parts customers were crammed in at the counter. Now, with a total of 13,000 square feet to work with, that doesn’t happen; plus, we have more room to stock more items and disappoint fewer customers.”

Besides the Dexter equipment, Gold Coin now has room to display the Whirlpool line, plus ancillary products such as Vend-Rite soap venders, change machines by Standard Change-Makers, and a NATCO on-demand water heater. Customers can even try out Standard’s easyPAY kiosk.

Gold Coin has scheduled several events this year, including a March 28-29 grand opening, to show its customers the full potential of the equipment it sells.

The new showroom and expanded parts department is located next door to the distributor’s original location, 91-16 143rd St. in Jamaica.

December 6, 2011
In the Wash: Operation Santa Claus; Scrubbles and Smiles; Long-Distance Arm of the Law

NEW YORK — Business financing company Eastern Funding is once again supporting the United States Postal Service’s Operation Santa Claus by preparing, wrapping and anonymously sending more than 300 holiday gifts to more than 50 families around the country. Eastern Funding has a special focus on the coin laundry, convenience store and drycleaning industries.

Operation Santa Claus joins programs such as the American Cancer Society and Habitat for Humanity in receiving active and financial support from the company.

“This is a hands-on, team effort at Eastern, with company vans transporting presents and many families receiving hand-delivery by Eastern personnel and executives,” says Robert Fagan, Eastern Funding’s customer service manager.

*****

DANVERS, Mass. — When Marie and Bill Cassidy opened Scrubbles Laundromat, it was important to them that they made their customers feel at home, as evidenced by the periwinkle painted walls, retro wash-room décor and vase of fresh flowers, says the Danvers Patch. Wash, dry and fold is the laundry’s most popular service. The best part of owning this type of business, says Marie, are the personal relationships that are built. “Actually, at this point, I know everyone’s clothes without them even telling me,” she says.

See the full Danvers Patch story here.

*****

LARGO, Fla. — Thanks to a vigilant laundry owner, local police were able to catch a would-be robber in the act, reports the St. Petersburg Times. The owner was at home watching a feed of his store’s surveillance cameras when he spotted suspicious activity. He called police, and officers found a suspect trying to wrest open a coin collection receptacle. With locksmith tool in hand, the man reportedly said, “OK, you got me.”

See the full St. Petersburg Times story here.

November 14, 2011
Alliance Laundry Reports Improved Earnings

RIPON, Wis. — Alliance Laundry Holdings LLC, parent company of Alliance Laundry Systems, saw its net revenues for third-quarter 2011 increase to $114.1 million from $103.6 for the same period in 2010, the company reports. Net income was $3.4 million, compared to $2.5 million in 2010.

For the nine months ended Sept. 30, Alliance Laundry’s net revenues rose $26.6 million—or 8.6% from the same period in 2010—to $336.2 million. Net income increased $0.3 million, to $13.9 million, in comparison to the same period in 2010.

“Our solid third-quarter results reflect the sustained success we are experiencing with our Customer One and international growth strategic initiatives,” says CEO and President Michael Schoeb. “We are executing on our initiatives to drive increased customer satisfaction, new-product development and allocation of resources to our greatest growth opportunities.

“While the broader economic landscape remains challenging, we are well positioned for the long term as we continue to capitalize on a larger global footprint and new products that truly set us apart from our competitors.”

Alliance Laundry Systems designs, manufactures and markets commercial laundry equipment used in Laundromats, multi-housing laundries and on-premise laundries under the Speed Queen, UniMac, Huebsch, IPSO and Cissell brands.

October 24, 2011
More Than 100 Attend D&M Equipment Midwest Open House

CHICAGO — More than 100 local coin laundry owners and managers recently attended the Midwest Open House hosted by D&M Equipment Co., a Dexter authorized distributor.

The Oct. 11 event featured product displays, service and industry seminars, special one-day pricing on equipment, and more. Dexter’s Tim McKinney conducted technical training, and attendees came away with a wide range of advice on how they can keep their Dexter washers and dryers operating reliably and efficiently.

D&M Equipment Co. staff members were on hand to demonstrate the energy-saving potential of Dexter Laundry equipment, and Dexter Laundry factory technicians hosted service seminars on the company’s washers, dryers and Easy Card™ systems.

“Service training like this session is an important value-added service for our customers,” says D&M Equipment President Don Tomasian.

Guests were treated to breakfast and had the opportunity to win many raffle prizes.

For information about other open houses and service schools for coin laundry owners and operators, check out the AmericanCoinOp.com calendar.

October 4, 2011
Star Distributing Commercial Laundry Equipment Expands Offerings

NASHVILLE — Star Distributing Commercial Laundry Equipment is now offering the Wascomat, Electrolux and B&C Technologies product lines in Georgia and Alabama, the distributor says.

“We are excited to be expanding our operations to Georgia and Alabama with the B&C Technologies, Electrolux and Wascomat lines,” says Michael Davis, president of Star Distributing. “The expansion of our product lines will position us well for growth in Georgia and Alabama.”

Laundrylux distributes both Wascomat and Electrolux products. Wascomat creates economical machines found in neighborhood Laundromats. Its coin-operated machines help laundry owners save on water, energy and gas, the company says. Electrolux is well known for its high-end commercial washers and dryers.

B&C Technologies provides an array of on-premise laundry equipment from washer-extractors to tumblers to commercial ironers.

“We are looking forward to speaking with commercial laundry businesses in Georgia and Alabama about these great new products,” Davis says. “This is a great opportunity for us to help commercial laundry owners invest in and optimize their return on investment.”

September 29, 2011
Rehabbing Existing Laundry is Popular Trend

CHICAGO — Over the past year, I have seen more born-again laundries than ever before. The banks are leveraging—or, should I say, overleveraging—the requirements to secure deals, making it too risky for investors looking to build a new coin laundry.

But with an existing marketplace and leasehold improvements in place, opportunity swings in favor of rehabbing an existing Laundromat. That’s not to mention lowering the risk factor and the financial demands of owning a business.

The key now is to find laundry locations that are in operating condition but in need of a facelift, or that are closed but have an upside when the competition and demographics are taken into account.

Fix It Up, Then Focus on Marketing

Once you have zeroed in on your location, make sure you do things right. Don’t get caught up in trying to rehab the laundry with all-new machines. I recommend that you fix what still has plenty of useful life, and then look to purchase rebuilt or refurbished machines. This will cut your expenditures about 50% and make for a much better ROI at the end of the year.

After your laundry has been given the makeup/facelift and its machines replaced, your focus must shift to marketing and more marketing. You can figure that for each family your campaign brings into your store to stay, they will spend about $500 per year—plus another $200 if you have over-the-counter sales, vending, and packaged goods.

This doesn’t include drop-off laundry sales, so if you have the space to fit this service into your program, it could contribute another 10-30% to your bottom-line earnings.

Enlist the Right Help

Finding the right people to help you do the deal is critical. Not to be underestimated is the value of enlisting someone with his or her finger on the pulse of the industry to ensure the best possible results for your success.

Do your homework; do business with someone who offers a full-service company to support you 24/7/365. The mindset should be that money never sleeps, and the company you decide to work with better have the same philosophy. Beware of scammers who will mislead you by telling you whatever to make a deal. Dealing with anyone who is not committed to your success is like playing with a house of cards: it will come tumbling down, no matter what.

September 26, 2011
Fine-Tune Commercial Service (Part 2 of 2)

CHICAGO — With large-capacity washers and dryers more common in today’s coin laundries, offering some type of commercial service seems to make more sense than ever before.

But taking on commercial accounts is a much different animal than running a vended laundry. There are staffing and equipment issues to consider, contract and billing matters to attend to, and you can’t sit back and wait for customers to come to you.

IDENTIFYING OPPORTUNITIES THAT MAKE SENSE

Someone new to commercial work might think the best approach would be to seek out any and all accounts. And while there are a variety of businesses that can benefit from hiring a laundry service, the distributors believe that a focused approach would serve you best.

“The biggest accounts out there that I see coin laundries being able to go after are on the lower end,” says Andy Wray, sales manager for ACE Commercial Laundry Equipment, a full-service commercial laundry distributor headquartered in Westminster, Calif. “We’d be looking at schools, barber shops and beauty salons, day spas, things like that. Basically towels or limited items.”

Doctors’ offices and physical therapists are other potential clients, says John Sugg, president/CEO of SAMCO, a Fayetteville, Ga.-based commercial laundry distributor serving the coin laundry, multi-housing, hotel, education and healthcare markets.

“Start off by concentrating on one type of commercial business,” he says. “People that we’ve seen be successful have keyed in on these segments. Or they will key on beauty and barber shops and just do towels.

“You can expand beyond your base, but it’s always best to identify the market you’re going after.”

You never know where opportunities may come from. Sugg recounted how a Birmingham, Ala., laundry owner solicited subcontractors staying in the area as they worked to rebuild tornado-torn Tuscaloosa 40 miles away. At its peak, the laundry was turning out about 1,200 pounds of wash-and-fold business a day.

“You can crank out pretty good business if you have the people to do it,” he says.

Some laundries have hired additional staff to work on their commercial accounts overnight, Wray says.

MAKING THE MOST OF YOUR OPPORTUNITIES

It’s not unusual for a coin laundry owner to do some marketing—store signage, ads in the Yellow Pages and the local newspaper, direct mail, etc.—but making a go at offering commercial service means taking things to a whole new level.

One of Sugg’s customers has had success by setting up a website, running specials, and accumulating the e-mail addresses of potential customers. Another customer takes a personal approach, traveling to potential clients to introduce her business to them.

“You’ve got to market it,” he says. “You can’t just hang a sign and expect people to come to you.”

“A lot of these people, just like in our industry, know each other,” Wray says of potential commercial accounts. “As long as you get in with one account, whether it be a small hotel, a day spa or something of that nature, you might do a great job for them. Word of mouth, as you know, is the best advertisement.”

Once you have landed a client, it’s important to provide them with consistent service, Sugg says.

“If you’re doing towels and you quad fold one week and the next week you roll them, that’s unacceptable to most people. Every towel should look the same every week.”

Deadlines drive commercial service. If you start offering the service but can’t deliver on time, then you’ve got problems.

“The biggest thing would be starting off slow, obtaining accounts, the pickup and delivery of the product, and not biting off more than you can chew,” Wray says.

“I’m not saying you can’t do a lot of volume. You could have 10 or 15 salons you do.”

Whatever decisions you make regarding offering commercial service, be mindful of how they may impact your self-service business, Sugg says.

“You don’t ever want to discourage your paying customers that are coming in the door. That should always be the main thrust of your business.”

Click here for Part 1.

August 17, 2011
Paint Picture of Your Store for Customers (Part 2 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.

USING FACEBOOK

One way to increase store traffic is to offer Facebook-fan-only specials. For example, some vended laundries offer free dry when the customer tells the attendant that he or she is a fan of the store’s Facebook page. Others provide insider scoops, offering details on special rates during specific hours.

But if you want your page to be successful, posting specials alone won’t do. Look for funny video clips related to laundry, or ask your fans questions such as which laundry detergents they prefer. Your fan page will not only help you increase traffic, but by capturing the voice of the customer, it can also help you improve your store’s competitiveness.

When you set up your page, make sure you allow fans the opportunity to write on your wall. The essence of social media is to allow people to interact. If you only allow yourself to post comments, your page will be no more than a Web advertisement.

BEFRIEND THE COMPETITION

While you’re on Facebook updating your own page, don’t forget to search for your competitors. Ask your distributor for a listing, then use the search field to find out if they have a fan page.

You may be asking yourself, “Why would I want to be friends with my competitor?”

It’s simple. You always want to stay abreast of what the competition is doing. Why not get a leg up by viewing their Facebook page? And, if their page is performing well, you can get ideas on how to improve your own. Additionally, see who “likes” their page, and ask them to “like” your page.

There are a few stores using social media the correct way, whose pages you can look at to get an idea of what your fan page should resemble. The next time you’re on Facebook, check out some coin laundries that are doing it right: Morton Coin Laundry in Morton, Ill.; San Fernando Majers Coin Laundry in San Fernando, Calif.; Town Tub Coin Laundry in Waterford, Mich.; and All Clean Coin Laundry in Winter Park, Fla.

Don’t get left in the dark; start using social media today to help increase your store’s business potential.

Click here for Part 1.

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

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

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

Moving Forward

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

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

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

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

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

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

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

Do it Right: 10 Laundry-Room Tips

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

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

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

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

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

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

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

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

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

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

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

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

Click here for Part 1

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

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

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

A Big Load

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

June 8, 2011
Clean ’11 Product Debuts: Speed Queen, Heartland MicroPayments, LG

LAS VEGAS — Companies often use the Clean Show to unveil new products or services to the industry. Here is a sampling reported to American Coin-Op:

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

April 11, 2011
Multihousing Laundry Industry: The Same, Only Different (Part 1 of 2)

April 7, 2011
Greasy Laundry Not Welcome

TROY, Pa. — The mere mention of natural gas is enough to cause nightmares for some in the self-service laundry industry. Now, natural-gas workers and their greasy clothing have one Pennsylvania Laundromat owner fuming.

March 30, 2011
Customer Comfort Counts

CHICAGO — When designing a self-service laundry, have you ever downplayed customer comfort? After all, the customer is just there to use your equipment, right? Well, think again. With the average laundry visit lasting more than an hour,

CHICAGO — When designing a self-service laundry, have you ever downplayed customer comfort? After all, the customer is just there to use your equipment, right?

March 24, 2011
Hidden-Camera Revelation: Laundromat Customers Confront Crime