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February 13, 2013
Perfecting Wash/Dry/Fold Service (Part 3)

CHICAGO — It offers profit potential if handled properly, and can sometimes be the difference between being in the black or the red

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

SELLING WASH/DRY/FOLD

Taking the extra step to keep customers happy is one way to ensure that your wash/dry/fold service stays afloat, but what can owners do to extend their reach to prospective customers?

Gauthier suggests that owners establish a strong online presence and consider investing in search engine optimization (SEO) services, such as Google AdWords, to attract business. “An established, effective online presence is a customer comfort and an inducement to try a new service. Roadside signs and direct mail are additional efforts, but they are typically limited to drive-by traffic and specific geographic territories.”

Store owners reaching out to community causes is another way to bring in new customers, according to Brick. For example, your store could host a fundraiser for a local church youth group or athletic team, and have them, alongside an attendant and adult volunteers, wash, dry and fold customers’ garments to raise money.

Even if they split the revenue fifty-fifty … it’s a great way for that organization to raise money, and it’s a great way for your Laundromat to get people that may have never even thought about using the laundry for that service.”

Meyer, on the other hand, pushes the benefit of seasonal coupons, such as deals on comforter cleaning in the fall and spring. “It’s a good way to educate individuals who take advantage of the coupon and convert them to drop-off customers.”

The success of wash/dry/fold not only comes down to marketing, but how well versed attendants are in assisting customers, he says.

“If the attendants are supportive and educated enough to explain the drop-off service, it typically translates to a successful drop-off program,” Meyer says. “We have seen stores go as far as incentivizing attendants by commissioning them 5 to 10 cents per pound on orders they process.”

Marketing is all about staying in tune with the lifestyle of the community, Brick says. “You really have to look at each community. What is the avenue that my customer base looks at, reads [and] listens to, and that’s where you want to go to promote what you’re offering.”

DELIBERATING DELIVERY

You may want to consider adding delivery to your wash/dry/fold service—which Brick calls a “great service” in urban markets—but tacking this on to your operation presents an added liability. “That’s when you would get into the extra insurance involved because you’re putting somebody on the road.”

Meyer echoes the sentiment, saying, “Delivery adds cost and opens the need for additional insurance coverage, as transportation becomes part of the equation. This needs to be balanced with the size of the delivery area [or] how much the potential market is increased through pick-up/delivery.”

But adding delivery could certainly be beneficial to the business. “We typically see the offering of delivery as viable and profitable,” Meyer says. “Some stores will charge a delivery charge as well to recoup related expenses.”

Though the idea of adding delivery to a store’s wash/dry/fold service can attract customers looking for even more convenience, Brick estimates that less than 2% of laundries offer such an option.

THE FUTURE OF WASH/DRY/FOLD

Many stores may wonder if starting, or even further developing, wash/dry/fold service is worth the risk. Brick admits that he’s seen some of the best and cleanest stores “do everything right” but the service didn’t pan out. “It is kind of a fickle thing.”

Despite this, he believes the payoff is worth the gamble. Not only can owners make extra profit, their overall business can see a visible improvement.

If you can afford to have that attendant there every hour that you’re open, the vandalism is reduced tremendously,” Brick says. “The store will be kept much cleaner, because you’ve got someone there wiping machines down [and] picking up softener sheets from the floor.”

Wagner sees this improvement in his store, as having an attendant present “builds a confidence” in customers. “If [a customer] has a problem, instead of leaving a note or calling, you can fix it right there for them or give them their money back. There’s never any miscommunication or issues, it’s all taken care of right away.”

With his wash/dry/fold service still in development, Wagner wants to hire a full-time attendant, plus he has other goals in mind. “I’m just in the process of learning [but] we are looking for a second location with our distributor,” he says. “Our strategy would be within 30 miles … from our location.”

Larger stores are becoming the industry norm, according to Brick, which could lead to stores taking on commercial accounts and an expanded customer base. “I think you’ll see more stores begin to do more with the non-traditional laundry customer, meaning the people that have a washer and dryer at home.

Because it’s a bigger [and] nicer store, they have no problems dropping their clothes off. I definitely think that wash/dry/fold will become a stronger revenue source for laundries as they continue to build bigger, nicer, cleaner laundries.”

All in all, for a wash/dry/fold service to really take off, it’s about creating a positive, lasting impression.

The success of wash/dry/fold will have more to do with who you hire, and what you put in place than just about anything else that you do,” says Brick. “The experience that you provide to that customer will lead to them coming back, and lead to them telling someone else.”

February 7, 2013
Perfecting Wash/Dry/Fold Service (Part 1)

CHICAGO — It offers profit potential if handled properly, and can sometimes be the difference between being in the black or the red

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

PROTOCOLS AND EQUIPMENT

For stores looking to get into wash/dry/fold, Brick advises owners to start with a solid foundation of policies and procedures.

Having a protocol on how to accept and organize garments is the first thing owners should lay out prior to starting a service. Establish procedures for weighing a load and asking the customer if they want any pieces spot-treated or loads separated by whites and colors, for example.

“Taking responsibility for customer goods means understanding fabrics and carefully processing those items,” says Gauthier. “Make sure that your wash/dry/fold staff takes the time to evaluate the goods they accept to ensure that they aren’t damaged.”

With a plan in place, owners may then turn their attention to equipment and the possibility of investing in new machines.

The experts agree that any coin store can start a wash/dry/fold service using the washers and dryers already in place, but there may be limitations.

“If all units within the store are top loaders, it limits your ability to process larger bulky items like comforters,” Meyer says. “[But] the majority of what a store will receive for wash/dry/fold is personals, which a typical coin store has sufficient machinery to handle.”

Wagner found this to be true, saying that he’s able to utilize the store’s current equipment for some of the customers he serves.

While he primarily processes residential wash/dry/fold, his initial goal was to go after commercial work. To date, Wagner has attracted business from what he calls “small commercial” accounts, catering to local hotels and senior housing facilities. For this reason, he installed a soaking tub and an Ecolab chemical and cleaning system for his machines.

Higher-capacity machines can process loads more quickly, but deciding which machines to invest in all goes back to a store’s policies and procedures, Brick says.

“If the customer wants to separate loads … then you’re going to use two smaller machines,” he says. “But if a customer does not want, or choose to separate [loads], then [you can] dump everything in a 60-pound [washer].

“In general, a 60-pound washer can handle the vast majority of commercial account needs a Laundromat might have,” says Meyer regarding higher-capacity machines. “However, if a coin store is in a market where an 80-pound machine might give it an advantage for attracting self-service customers, then that should be taken into consideration.”

Utility efficiency, a large profile for easy loading and unloading, and a five-year manufacturer-backed parts warranty are characteristics that Meyer looks for in assessing higher-capacity equipment.

Should a store that offers wash/dry/fold service make that equipment available to its walk-in customers? For Meyer, it’s all about catering to your customers, whoever they may be.

“We generally recommend making all equipment available to customers,” he says. “In practice, attendants will typically use the same one or two machines for wash/dry/fold accounts due to their proximity to the attendant station, or to high-visibility points in the store. But, there is no reason to limit availability.”

Though he limits the store’s cleaning system for commercial accounts strictly to employee use, Wagner has been able to process residential accounts while self-service customers are using the store’s washers and dryers, he says.

“We’re a smaller market so there’s always downtime,” he explains, adding that late morning and early afternoon is when the store usually experiences a lull in traffic. “We have enough machines for our market where there’s always some machines open. Most [customers] drop off regular loads for just one or two machines at a time.”

Check back Tuesday for Part 2!

February 4, 2013
Maytag Concept Stores Debut in North America

ST. JOSEPH, Mich. — Seven now open, with eight more ready by month’s end

ST. JOSEPH, Mich. — Seven new Maytag® Equipped Laundry stores have opened since the brand launched in May and Maytag® Commercial Laundry says more are on the way this month.

The company introduced the concept store after recognizing the market need for “a well-designed, aesthetically pleasing and branded store.”

“The Maytag brand is the No. 1 preferred and most recognized brand in laundry,” says Randy Karn, national sales manager. “We saw a void in the market and are now delivering a concise, well-developed concept store built on the 100-plus year equity of the Maytag brand.”

Maytag® Equipped Laundries are open for business in:

  • Salisbury, Pa.
  • Lackawanna and Addison, N.Y.
  • Haledon, N.J.
  • Mississauga, Ont., Canada
  • Calera, Ala.
  • Laurinburg, N.C.

Another eight stores are scheduled to be finished by the end of February, Maytag says.

Scott Rider, owner of the Lackawanna store, calls the Maytag® Equipped Laundry store program “the complete package.”

“The support from my local distributor was exceptional, and I’m already planning to open additional stores. My doors have been open since September and I’m seeing enough of a revenue increase that I’m expanding my store’s services.”

“The main thing that sold me on this program was equity behind the Maytag brand name,” says David Whitehurst, who owns the new store in Calera, Ala. “All customer feedback has been incredibly positive.”

Maytag has delivered on its promise to provide a program designed to bring aesthetically pleasing and well-designed coin stores to the market, he adds.

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

Maytag® Equipped Laundry owners/operators qualify for a special Maytag Advantage™ Program, which offers exclusive perks; grand opening or reopening kits with materials and timelines to help plan effectively; discounts on exterior signage; special financing options; and a free membership to the Coin Laundry Association.

January 22, 2013
The Elements of Being Customer-Friendly (Part 5)

CHICAGO — There are many levels of customer service, and thus customer friendliness

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: PLEASE DESCRIBE HOW A STORE CAN BE MADE CUSTOMER-FRIENDLY BY ADDRESSING THE FOLLOWING:

Seating

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Your Laundromat customers are going to be spending plenty of time in your store and you’ll want to keep them comfortable so they’ll consider coming back. It’s important to have ample enough seating for your busiest times.

Dave Phillips, national sales manager, IPSO: It is important to provide just enough seating for the customers to be comfortable. But, it is about revenue per square foot — seating does not make owners money.

Dan Bowe, national sales manager, Speed Queen: Be sure to provide ample seating for customers. Most customers spend at least an hour in a Laundromat, so offering space where they can sit comfortably and conduct other business, like checking e-mails or reading, will be greatly appreciated.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: Seating should be in close proximity to the front of the store so customers can keep an eye on their car in the parking lot if so desired. If TVs are part of the customer experience, seating should be in close enough that programs are easily seen and heard throughout the store.

Children’s Area

Ken Hebert, Deep South Laundry Systems: A children’s area will be welcomed and appreciated by your customers, and it will likely reduce unnecessary wear on your equipment.

Bowe: Some newer stores offer a children’s play area that is equipped with televisions, books, arcade games and computers. While this isn’t necessary, it may give you an edge over the competition for those customers with small children.

Kirchner: While it might not work for all store layouts or customer demographics, a children’s play area can make your store more inviting to mothers and families. It can also help keep children occupied while their parents do laundry.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Parents need help when doing laundry. If you have an area where their children can watch movies or play, this goes a long way in showing how much you care about your customers. Parents will come back to a laundry where their children are occupied and that they can get their laundry done without being pestered.

Phillips: Dedicated children’s areas are nice if the store is large enough to provide them. Areas dedicated to children need to be situated toward the back of the store for safety and security reasons (assuming there is no rear ingress and egress), and it is important that the parents have good visibility of the areas.

Availability of Extra Services

Bowe: If you have an attended store, you have the ability to offer “Fluff and Fold” services. Customers will greatly appreciate this service, especially if they have extremely busy work or school schedules. It allows them to drop their laundry off, get it cleaned and pick up at a later time. In addition to being a customer-friendly component, it’s also a revenue enhancer.

David Cabral, vice president, New England Coin Laundry: Depending on the market demographics, additional services can enhance the overall business – but it is very important to look at the specific demographics of the area before offering any additional service. Examples include alterations, check cashing, receipt of utility payments, tanning, nail salon, café, cell phone sales, etc.

Fernandez: We do have drop-off service, which accounts for a substantial portion of the store’s revenue. We are currently working out the details to provide drop-off dry cleaning service and in-store ironing to increase revenues and attract new customers.

January 16, 2013
LG Appoints Gutierrez National Sales Manager for Commercial Laundry

ENGLEWOOD CLIFFS, N.J. — Former Mac-Gray route sales manager brings more than two decades of experience to new role

ENGLEWOOD CLIFFS, N.J. — Industry veteran Gustavo Gutierrez has been named national sales manager of Commercial Laundry Systems for LG Electronics USA, the company reports.

Gutierrez brings more than two decades of experience to his new role at LG, where he will be responsible for developing and managing programs to differentiate LG in the route/multi-housing and coin/OPL markets in the United States.

“Gustavo’s extensive experience in the commercial laundry industry will take our leadership to the next level as we work to become a significant player in the U.S. marketplace,” says Stefan Meir, Commercial Laundry director, LG Electronics USA. “His vision and leadership will helpgustavo gutierrez lead to the continued expansion of our route network, as well as attracting new, high-quality distributors.”

Gutierrez comes to LG Electronics from Mac-Gray, where he served as a route sales manager in the South Florida market. While there, he also launched The Bid Shop, an online platform to connect service professionals with companies looking for proposals.

“LG’s innovative laundry products offer an exciting opportunity for our distributor network,” says Gutierrez. “My focus is to build on LG’s momentum to help the business grow further and enjoy a similar strong reputation in the commercial space as it has in the consumer laundry market.”
 

January 10, 2013
The Elements of Being Customer-Friendly (Part 3)

CHICAGO — There are many levels of customer service, and thus customer friendliness

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: PLEASE DESCRIBE HOW A STORE CAN BE MADE CUSTOMER-FRIENDLY BY ADDRESSING THE FOLLOWING:

Equipment Selection and Reliability

Ken Hebert, Deep South Laundry Systems: Well-maintained, accessible equipment with straight-forward controls makes things simple.

Dave Phillips, national sales manager, IPSO: Equipment should be commercial quality and built to last. When selecting a distributor to purchase equipment, they should be factory-trained in order to provide the best service should owners have any issues, and the equipment should be easy to service.

Karl Hinrichs, president, HK Laundry Equipment: When selecting equipment, make sure to partner with a quality distributor that offers durable, reliable equipment that is built to withstand use in a 24/7 Laundromat operation. Some manufacturers market the home-style machines as commercial laundry equipment. Laundromat owners find out all too soon that the machines are not built for heavy-duty operation. This causes them to spend more money in the long run on repairs and replacement equipment, and has the potential to cause customers to choose other Laundromats that don’t have machine reliability issues.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Reliable, quick machines can make the difference between whether a customer chooses your store or another. For example, if your customers get error codes and machines shut down because of too much soap or overloading, that’s a problem. It inconveniences the customer, and they get frustrated. It also can cause a headache for your attendants. Customers complain and may want their money back. You must choose professional equipment designed to take the abuse of a Laundromat.

Pricing and Cycle Times

Phillips: A store owner should survey the competitive stores in the area to learn pricing and what additional services are or are not offered. Vend prices do not need to be the lowest. However, they do need to be competitive. Prices should reflect the owner’s commitment to providing a customer-friendly environment, clean and well-lit store, new equipment, and other additional services that are provided.

David Cabral, vice president, New England Coin Laundry: Typically, a washer will have a cycle time close to 30 minutes. Shorter cycle times are popular because of the need for most customers to move in and out quickly. Pricing or vending should always take into account the value provided and the costs associated with the service.

Dan Bowe, national sales manager, Speed Queen: With the right control platform, store owners can offer customers the ability to customize their cycles for an additional fee. Advanced controls allow customers to select cycle modifications, which can include additional rinses, the use of hot, warm or cold water and extra washes. The customers choose which options they want to use, which makes them feel like they’re in control of their laundry. Not only is this customer-friendly, but it also generates additional profits for the owner.

Check back Tuesday for more on The Elements of Being Customer-Friendly!

January 8, 2013
The Elements of Being Customer-Friendly (Part 2)

CHICAGO — There are many levels of customer service, and thus customer friendliness

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: PLEASE DESCRIBE HOW A STORE CAN BE MADE CUSTOMER-FRIENDLY BY ADDRESSING THE FOLLOWING:

Exterior Appearance and Signage

Dave Phillips, national sales manager, IPSO: A store with glass frontage is more customer-friendly than one without. Customers appreciate being able to see through the windows before entering the store, especially at night – a glass front offers a sense of security.

It is important that the ingress/egress area and even the parking lot receive the same attention as the interior of the store. It should be clean, well-lit and provide ample parking spaces. As for signage, it should be lighted, simple and easy to read from a distance with no obstructions, and have colors that attract potential customers’ eyes to it.

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Having an external sign that features services your location offers can be a great asset to encourage new and potential customers to come inside.

Karl Hinrichs, president, HK Laundry Equipment: The Laundromat’s exterior and signage is where owners will advertise the store’s identity, strengths, and serve as a consistent reminder to the community that the Laundromat is available for their use. The outside of a Laundromat should be well-lit, clean and welcoming. Make the most of the store’s “street appeal” because it is a permanent billboard for the business.

David Cabral, vice president, New England Coin Laundry: The exterior of the store should convey a clean, safe and inviting laundry. If the interior is the best in the industry but the exterior looks less than safe or inviting, it will never matter how well maintained the interior is. Signage should be in working order and well-lit.

Days and Hours of Operation

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: A store’s hours of operation should be determined based on customers’ needs. To be the most successful, a store needs to be open when its customers have time to do their laundry, which isn’t necessarily between 8 a.m. and 6 p.m. Initially, Mily’s Place was open from 6 a.m. to 11 p.m. After watching traffic patterns, I noticed a need to be open later and so we opted to extend the store hours. Now, we are a 24/7 operation, and the response has been extremely favorable.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Know your market. If your customers work shifts or need to come in early or late, make sure you are open to meet the needs of your community. Also, program special pricing and offers for slow days of the week and odd times to encourage customers to come when it’s not busy.

Dan Bowe, national sales manager, Speed Queen: This really depends on your demographics and market; however, the average Laundromat is open from 6 a.m. to 11 p.m. But if the store is located in a college market, it should be open 24 hours a day, which will cater to the demographic.

Parking and Access

Kirchner: When you’re planning parking for a new retail location, make sure that you have ample parking to accommodate customers on the busiest day. If your parking lot is full, customers may pass by your location to go to another store that has available parking. Parking needs to be clean and free of trash, and also needs to be well lit so that customers feel safe visiting your business at night. Store entrances not only need to be handicapped-accessible, but they need to allow for large laundry carts to move in and out of facility without struggling.

Phillips: A dedicated parking lot or spaces, preferably off-street, are very important. No owner wants their customers to have trouble finding a parking space or fighting traffic to access the parking lot.

Fernandez: Ample parking is one of the most important aspects for a store. In addition to parking, a clean store front should be free of trash and wide enough for laundry carts and baskets to easily enter and exit. This simplifies a customer’s experience (and) helps reiterate the owner’s focus on customer satisfaction.

Cleanliness and Décor

Hinrichs: A Laundromat can never be too clean. Make sure the store is cleaned at least twice a day, which should include sweeping, mopping floors, cleaning out lint traps and washing windows if there are fingerprints on them. Bathrooms should be well maintained and stocked full of necessities such as toilet paper, soap, and paper towels or a working electric hand dryer. The store should also be spruced up at least once a year, especially if it has white walls. A fresh coat of paint or replacing carpet or tiles and worn furniture can make a significant positive impression to customers.

Nagle: A clean, comfortable store is critical. If your store is dirty, not maintained, has old rusty machines, soap on the floor or machines don’t shine – your customers will go somewhere else.

Ken Hebert, Deep South Laundry Systems: Again, cleanliness is important. The décor should be clean and simple. The color of the walls needs to be soothing and inviting – repaint if necessary. Indoor signage needs to be limited, simply stated and not negative. If all your customers see is NO or DON’T, they WON’T use your Laundromat in the future.

Kirchner: For store décor, simple things like updating lighting, adding mirrors or pictures, or a fresh coat of paint can make a world of difference with a small expense. Decorating for upcoming seasons or holidays can also be a fun and festive way to spice up your store’s décor on a budget; just be sure to change out the decorations as the season ends.

Check back Thursday for more on The Elements of Being Customer-Friendly!

January 3, 2013
The Elements of Being Customer-Friendly (Part 1)

CHICAGO — There are many levels of customer service, and thus customer friendliness

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: SO, WHAT DOES BEING “CUSTOMER-FRIENDLY” MEAN IN THE CONTEXT OF RUNNING A COIN LAUNDRY?

Karl Hinrichs, president, HK Laundry Equipment: The basics of a “Customer-Friendly Laundromat” are clean, bright and safe, and are equipped with reliable, high-quality machines. These are the basic minimum requirements. However, in today’s world, owners should go above and beyond. Many Laundromats have added attractive décor that caters to their customers, like earth-toned colored walls with trendy art and clocks, comfortable seating with tables, entertainment that includes free Wi-Fi, high-definition flat-screen TVs, magazines and even children’s lounges that offer video games and computers.

Dave Phillips, national sales manager, IPSO: A customer-friendly store is one that is owned by someone who lives and breathes good customer service. And because of this, people want to come to their Laundromat and do laundry. The owner will monitor and be aware of and adapt concepts and ideas that customers want in a Laundromat to make sure the customers’ experiences are positive. Additionally, the Laundromat’s employees will embrace and be committed to the same customer-friendly principles.

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Customers and especially families are looking for a clean, well-lit environment where they feel safe for themselves and their children. They look for ample parking and sliding doors that make it easy to enter and exit with big baskets of laundry and plenty of equipment that’s available when they need it.

Dan Bowe, national sales manager, Speed Queen: The most customer-friendly stores are attended. When owners make the investment in good employees, they help elevate the customer experience. Attendants should be properly trained, friendly and helpful, but also feel confident in their position and enjoy what they do. Since attendants represent the store, they should be well-groomed, and greet customers, thank them for their business, help carry laundry out to cars if customers need assistance, and be there to answer general questions when they arise.

Ken Hebert, Deep South Laundry Systems: Being customer-friendly is defined by understanding your customer base and providing them with the environment/equipment they need to simplify their laundry time.

Q: WHAT RESPONSIBILITY DOES AN OWNER HAVE FOR MAKING HIS OR HER COIN LAUNDRY CUSTOMER-FRIENDLY? WHAT RESPONSIBILITY DOES A MANAGER AND/OR ATTENDANT HAVE?

Bowe: Customer friendliness starts with the management. If you don’t position your business to cater to your customers, you won’t be as successful as you hoped. Employees follow the examples management sets, so it’s essential that good customer service is an integral part in the business’ philosophy. For example, if a customer requests a refund, provide one without question. Offer to assist customers who are first-time visitors, and strike up a conversation to make them feel like they made the right decision in choosing the store.

Steve Koumaras, owner of four coin stores in Pennsylvania: Customers need to understand that although my stores aren’t staffed, the lines of communication are open. I have a way for customers to leave comments and suggestions, and I provide a phone number where I can be reached. If I miss a customer, I call them back and talk through the comment or problem with them. As an owner, I have to be customer-focused to really succeed in this business.

Hinrichs: Good customer service starts with management. If they want the store to be successful and generate revenue that will make them profitable, owners have to be customer-friendly. Otherwise, customers will go to another store that will provide them with the amenities they desire.

From an operations point of view, attendants should be welcoming, friendly and helpful. They represent the Laundromat and, indirectly, the owner. Attendants should greet all customers, ask if they need help, and if a problem arises they should help resolve it as soon as possible – whether it be soda spill clean-up or refunding money; if there’s a problem, they should do all they can to correct the problem and create a happy customer.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: It is imperative managers and attendants keep the store clean at all times. My attendants know it is a fundamental part of their jobs to pick up trash, clean up any detergent spills, etc. Also, it is our responsibility to maintain the equipment, check lint trays and ensure the washer and dryer drums are clean for the next customer.

Hebert: Owners are responsible for choosing the right location and equipment mix. They are also responsible for regularly updating/replacing paint, equipment, signage and furniture. The customer’s first impression of the Laundromat will determine whether they will use it in the future. The manager is responsible for keeping the equipment running and (for) handling customer suggestions/complaints. The attendant is responsible for keeping the Laundromat clean and inviting.

David Cabral, vice president, New England Coin Laundry: An owner should always want the customers that visit his/her laundry to feel welcome and comfortable. You can’t simply assume your customer feels safe and welcome. You need to make sure first-hand.

Kirchner: Managers and staff play an important role in attracting and maintaining a customer-friendly laundry. They need to work regularly to keep stores clean and attractive, handle maintenance issues or down machines immediately, and keep the store a pleasant place to do business and for customers to visit.

Check back Tuesday for more on The Elements of Being Customer-Friendly!

September 25, 2012
Maytag® Commercial Laundry Recognizes Karn for 30 Years of Service

ST. JOSEPH, Mich. — National sales manager joined Maytag team as service trainer in 1982

ST. JOSEPH, Mich. — Maytag® Commercial Laundry says it is proud to recognize National Sales Manager Randy Karn for 30 years of dedicated service to the company.

“After 30 years with Maytag® Commercial Laundry, Randy continues to be a valued member of our team,” says Craig Kirchner, global director of Maytag® Commercial Laundry. “He plays an integral role in our company’s continued growth and success, and he is as dependable as the machines he has helped bring to market.”

Karn’s interest in the commercial laundry business grew out of his years as a teenage installation and service technician for an appliance dealer. He joined the Maytag® Commercial Laundry team in 1982 as a service trainer, following his graduation from Iowa State University, and worked his way up the ranks to national sales manager.

From communication methods and office equipment to the many technological machine advancements, Karn has witnessed many changes in the industry throughout his career.

To Karn, the past 30 years have been an enjoyable journey of never-ending discovery, all the while surrounded by great people.

“I enjoy the people I meet and work with each day—whether they are colleagues or customers, I’m always learning something new from them,” he says. “It amazes me how many people spend their whole careers in the commercial laundry industry and always maintain that passion to be the best they can be every day. They’ve been a great inspiration to me.”

June 13, 2012
Attended vs. Unattended: No Magic Formula (Part 2 of 2)

CHICAGO — But there are some basic factors that affect one's call

CHICAGO — Even if you’re not a literary scholar, most of you are probably familiar with William Shakespeare’s famous phrase: “To be or not to be.” For self-service laundry owners, “To be or not to be” may come to mind when deciding whether to open an attended or unattended store.

While industry representatives have long claimed that there is no “magic” formula when it comes to the attended/unattended decision, most agree that there are basic factors that affect one’s call. For example, if you have a large store (more than 2,000 square feet) and want to offer extra services, the attended route is the way to go. The larger stores require more cleaning and have more equipment that needs to be cared for. The extra equipment also generates extra revenue, which helps pays for the attendant.

If you have a small store or two (1,500 square feet or so) and don’t want to spend time at the store(s), being unattended is an option. If you don’t have extra services or enough work for an attendant, why do you want the hassle of dealing with employees? With fewer machines there is also less revenue. Do you really want to cut into your profits by paying an attendant?

Are you thinking about opening a new store and wondering if you need attendants? Now is a great time to take another look at this age-old industry debate.

American Coin-Op recently spoke with industry representatives about the attended vs. unattended issue. The self-service laundry industry continues to evolve, and some of the following opinions may cause you to look at this question in a different light.

FEWER UNATTENDED STORES ON HORIZON

dan boweOn a national basis, about 40% of the self-service laundries are attended, says Dan Bowe, national sales manager, Speed Queen.

Bowe believes many investors are attracted to the industry because stores are not required to be attended. “This can be a very good investment for absentee owners. Store owners will save roughly 14% in labor expenses as compared to overall gross income.” (The 14% figure varies, depending on the geographic area, he adds.) Owners also have the challenge of overseeing employees, he says.

Bowe believes that the No. 1 concern for unattended store owners is losing business to attended competitors. “Many customers look for a safe, clean and family-friendly facility when deciding where to perform the weekly chore of laundry.”

There are two main reasons for having attendants, Bowe says. First, laundries are similar to other on-street retail businesses in that consumers continue to demand better products and better services. “In our business, the typical customer is a female with children. Knowing this, Laundromats should be designed and operated with safety, cleanliness and superior customer service as prerequisites. Having your store either fully or partially attended is really the best way to execute this strategy.”

The other reason for having attendants is offering extra services. This includes common services such as drop-off work and other services such as alterations and offering food.

One common mistake owners make is believing that one employee can perform multiple tasks at the same time and do them well, he says.

From a site analytic standpoint, unattended stores make sense in areas that have little competition and are considered safe from crime, Bowe opines. “Typical demographics most likely include rural areas with small populations.”

Bowe also believes that most stores, regardless of size, should be at least partially attended. “Today’s consumer has a plethora of choices with most retail options, and laundry is no different. Offering superior services and offerings is important for all store owners.”

Offering superior customer service factors in when introducing new technology. “I think it would be very risky for a store owner to introduce any new payment system without also investing in attendants.”

If you are set on going unattended, Bowe suggests hiring a cleaning service, designing the store for safety, and including visible video surveillance. However, artificial equipment doesn’t make up for a smiling face welcoming customers and making them feel safe, he adds.

If Bowe operated an attended store, he would market the fact that attendants were on duty. “You can do everything right, but if you don’t let anyone know what you are doing, you are only taking the strategy half way.”

Bowe predicts that unattended stores won’t totally vanish, but will slowly disappear to historically low levels because so much has changed during the last 10 to 15 years. “Stores are larger, cleaner and offer more amenities than ever before. Likewise, today’s store owners are also becoming more sophisticated and more in-tune with consumer behavior.”

YOU STILL NEED HELP

richard lamainaDemographics play a key role in the creation of unattended stores, says Dick LaMaina, Equipment Marketers, Cherry Hill, N.J. Equipment Marketers operates in Pennsylvania, Delaware, the Eastern Shore of Maryland and south New Jersey. LaMaina has also operated attended laundries.

In Pennsylvania, he estimates about 50% of the stores are unattended because the state has the largest rural population in the United States. “It’s also an older population, and you just can’t have big stores in some of those rural areas,” he says. In the larger urban areas of Pittsburgh and Philadelphia, almost all the laundries are attended, he adds.

The average rural, unattended store is usually between 1,500 and 2,500 square feet, he estimates, although size isn’t the only factor in determining if a store should be attended. “It’s all about having the revenue to pay for a person.”

Owners of unattended stores still need someone to work at the store for several hours a day, he advises. Someone must clean up and open and close the store (unless the store has self-locking doors). A dirty store will lose customers, he believes. “Customers can be lost forever.” A lost customer means losing $500 to $1,500 a year, he estimates.

Another unattended concern is introducing new equipment. “There is a learning curve with new machinery. The new machines use less detergent. People don’t read the signage about machine usage.” LaMaina advises store owners to spend some time at the unattended store when new equipment is installed.

Store refunds are another concern. When it comes to refunds, make sure to have the proper signage and have a working phone number for customers to contact you, he suggests.

The No. 1 concern for an attended owner is managing people. “Labor is more than a pricing issue,” he warns. “The owner of an attended store must deal with budgeting, bookkeeping and supervision.”

LaMaina would market the fact that his store is attended. “Being attended is a great benefit. All things being equal, some customers would rather go to an attended store. Customers want help at times and feel safer with someone around. People like people.”

Even though unattended stores present certain challenges, LaMaina says they will always be around because some stores don’t generate enough revenue to pay employees.

Click here for Part 1!

April 30, 2012
Energy Efficiency: Battle Against Rising Costs Often Starts with Equipment (Part 2 of 2)

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
Energy Efficiency: Battle Against Rising Costs Often Starts with Equipment (Part 1 of 2)

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 4, 2012
Huebsch Names Gulf States Laundry Machinery its Distributor of the Year

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.

November 22, 2011
Alliance Laundry Promotes Bittner to VP of Customer One, Appoints Bowe to Lead Speed Queen Commercial Sales

RIPON, Wis. — Alliance Laundry Systems has promoted William Bittner to vice president of Customer One, the company’s global initiative focused on customer service and satisfaction, and selected Dan Bowe to replace Bittner as national sales manager of Speed Queen’s commercial division.

“Bill has been a valuable asset to this organization for many years and his experience with sales and customer relations made him an ideal candidate for this role,” says Mike Schoeb, president and CEO of Alliance Laundry Systems. “I am confident that Bill will be a positive driving force leading Customer One on a global scale.”

Customer One is the cornerstone of Alliance’s customer service strategy, demonstrating a commitment to maintaining a customer-focused culture by bill bittnerconsistently meeting customers’ demands for superior product quality and reliability while providing comprehensive and responsive service. The program ensures best practices in manufacturing, provides essential services and offers continuous training.

Bittner has been with the company for more than 13 years, holding various senior positions. He was instrumental in reclaiming Speed Queen’s position as the premium brand in the vended laundry space, Alliance says.

“I look forward to leading one of Alliance’s most highly regarded programs,” says Bittner. “Putting the customer first is more than a slogan; it is the way we do business.”

dan boweBowe will oversee regional sales managers, develop policies and procedures, cultivate distributor partnerships, and participate in the development of new Speed Queen products and services.

Since joining Alliance in 1996, he has held a variety of senior sales and marketing positions. He has particular expertise in manufacturing, distribution services and advancements in card technologies, according to Alliance.

“We welcome Dan’s broad experience and in-depth industry knowledge and look forward to having him at the helm of the Speed Queen brand,” says Jeff Brothers, senior vice president of North American sales.

November 10, 2011
Attendance High at Maytag University Factory Commercial Laundry Sales School

ST. JOSEPH, Mich. — Maytag University Factory Commercial Laundry Sales School recently completed an in-depth training class on high-efficiency single- and multi-load equipment and attended education sessions specifically focused on the coin, multi-housing and on-premise markets.

“Our sales school is designed to give new or experienced industry salespeople the knowledge necessary to compete in the marketplace,” says Randy Karn, national sales manager at Maytag Commercial Laundry. “The Maytag University Commercial Laundry Sales School brings together some of the industry’s best sales trainers and provides attendees with useful information that can be integrated into every aspect of selling.”

In addition, the 15 attendees representing Canada, Guam and the United States, toured a local coin and hospitality facility, explored market trends and analysis, and compared competitor offerings and information. They also had the opportunity to work with the Maytag Commercial Laundry Energy Calculator tool.

“The education sessions, tours and interaction with the sales trainers and attendees provide real-life examples and solutions for issues in the field,” says Keith Fell of Pierce Commercial Laundry Distributors. “Understanding how to calculate potential energy savings and being able to share this information with our customers is invaluable.”

November 2, 2011
Industry Outlook: Hold On to Optimism but Run a Tight Ship (Part 2 of 2)

CHICAGO — Simply put, an outlook is an expectation for the future. But no one has the ability to see the future, so the best you can hope to do is to gather as much pertinent information as possible, prepare yourself for what you think will come, then have the flexibility to adapt your business to what actually comes your way.

There are reasons to be optimistic that the self-service laundry industry will continue to bounce back in 2012. But that optimism will be tempered by a lagging economy and ever-present high unemployment rates.

In speaking with experts around the industry, it’s clear that an operator’s best course of action in 2012 will be a continued emphasis on running an efficient operation and taking whatever opportunities are available to promote their business.

DEMAND FOR LAUNDRY SERVICES

Renters—the primary users of coin laundries—are a fast-growing population segment and thus a reason to be optimistic about the demand for laundry services remaining high. According to the 2010 Census, of the 116.7 million occupied housing units, 40.7 million—or 34.9%—were occupied by renters. In the 2000 Census, 31% of the nation’s households were renter-occupied.

“The good news is that the apartment industry is doing great, and that many younger people are going back to work,” says Dick Ruel, national sales manager for Whirlpool and Maytag Commercial Laundry.

Raymond McMurry, owner of Pat’s Washtub in Lawton, Okla., predicts his Oklahoma laundry will see 5% growth next year. “Due to the number of new customers we are seeing and retaining in the last half of 2011. … Unemployment creates new customers.”

“I think the economy will continue to be slow as we adjust to the reality that we have shipped many of our jobs overseas,” says Larry Larsen, who has more than 30 years of experience in the ownership, management and construction of Laundromats. “I don’t see any political proposals that will greatly increase demand for non-government workers. I think the current status will continue as long as unemployment benefits blunt the effect of the lack or loss of jobs.”

“Until California can make some headway on the unemployment problems we are facing, especially in the Southern California marketplace, we are in for another bumpy year in 2012,” says Andy Wray of ACE Commercial Laundry Equipment.

ATTRACTING BUSINESS IN 2012

Larsen says laundry owners must concentrate next year on reducing operating costs and coming up with promotions that will draw more people away from the washers and dryers located in their apartment buildings.

Ruel suggests getting back to the basics. “Keep the store clean and safe. If you have not been advertising, now is a good time to start, and make sure you are taking advantage of all the free social media. At the very least, make sure you have a website.”

Setomatic Systems’ Jeff North, who owns the Newport (N.H.) Car Wash and Laundromat, agrees. “This is the way that today’s youth communicate, and it cannot be overlooked. In addition, a website is going to be a must. Direct mail (target mailing) can also help with exposure. Laundry customers are a transient group, and it is important to continually get the word out about offerings and hours of operation.”

Wray urges laundry owners to resist the temptation to lower their operating standards. “When times get tough, it’s easy to neglect maintenance issues or skip repairs, but now is the time to be running your store better than ever.”

“Be 100% different from your competition,” McMurry suggests. “Do not be afraid to be the highest price in town. Customers only compare top loads. Get rid of top loads, therefore no price comparisons.”

Every new customer to McMurry’s store receives a free gift. “Show the customer they are the most important thing in your life.”

Click here for Part 1.

November 1, 2011
Industry Outlook: Hold On to Optimism but Run a Tight Ship (Part 1 of 2)

CHICAGO — Simply put, an outlook is an expectation for the future. But no one has the ability to see the future, so the best you can hope to do is to gather as much pertinent information as possible, prepare yourself for what you think will come, then have the flexibility to adapt your business to what actually comes your way.

As the ocean waves wash away the remnants of 2011, there are reasons to be optimistic that the self-service laundry industry will continue to bounce back in 2012. But that optimism will be tempered by a lagging economy and ever-present high unemployment rates.

In speaking with experts around the industry, it’s clear that an operator’s best course of action in 2012 will be a continued emphasis on running an efficient operation and taking whatever opportunities are available to promote their business.

PAST PERFORMANCE AND FUTURE RESULTS

While past performance is no guarantee of future results, it’s certainly a good indicator. From an operator’s perspective, business in 2010 was better than it was in 2009, according to our 2011 State of the Industry Survey.

Forty-two percent of operators reported an increase in gross dollar volume in 2010 compared to 2009. That was up nearly two percentage points from the previous year. The average 2010 business increase was 10.8%, up from 7.9% in 2009.

But 58% of respondents to our unscientific survey saw their laundry business decrease in 2010. That was two percentage points less than 2009, but a significant portion overall nonetheless. It’s apparent the recession that economic experts say officially ended in summer 2009 was still being felt last year.

There were also reasons for optimism on the supply side. Nearly half of respondents to our 2011 Distributor Survey said their business was better in 2010 than it was in 2009. Better yet, nearly two-thirds predicted in July that 2011 business would be better than 2010. Those whose distributorships thrived saw investors who were inspired by upticks in the economy, or who chose to look into the coin laundry business after losing their jobs.

Distributors whose business suffered in 2010 lamented over changing demographics, tight lending/lack of financing, and potential investors unwilling to spend.

IMPACTS OF 2011

Dick Ruel, national sales manager for Whirlpool and Maytag Commercial Laundry, says the continued sluggish economy and the “exodus of 1 million Hispanics” since the recession began have had the biggest impact on our industry.

People are doing laundry every other week now instead of every week, he adds.

The rising cost of utilities is having a major impact as well, says Setomatic Systems’ Jeff North, who owns the Newport (N.H.) Car Wash and Laundromat.

“While energy-efficient machines and hot water heaters are almost a necessity now, they simply can’t make up for the enormous increases in costs,” he says. “Water and sewage has gotten to the point in many municipalities that it has passed electricity and fossil fuels as the most expensive utility cost.”

His municipality is at approximately $15 per 1,000 gallons and is slated for two more 10% hikes in the next two years, North says.

In the South, where Raymond McMurry owns Pat’s Washtub in Lawton, Okla., the biggest impact on his business came from the weather.

“In 2010, we had bad ice storms and power outages, (and) therefore great sales because we had power. Hard to beat in the first half of 2011 with good weather.”

Second was the shaky economy. “We have seen a major dip in full service (wash/dry/fold, comforters, pressing), and self-service is on the increase. Commercial accounts are increasing somewhat due to outsourcing to cut expenses.”

Larry Larsen has more than 30 years of experience in the ownership, management and construction of Laundromats. “The continued severe recession with high employment and a loss of home-construction jobs has had the biggest impact in Southern California. Our unemployment rate hovers around 14%. If you’re not working, you’re not getting your clothes dirty.”

Another Californian, Andy Wray of ACE Commercial Laundry Equipment, says there are fewer laundry customers to be had because many people have migrated elsewhere to find work and a lower cost of living. And laundry owners there are fearful of losing even more customers by increasing their prices.

“Prices on utilities in the Laundromat have gone up at an alarming rate, and it has come to the point where owners just simply can’t afford to absorb the increases any longer. Capacity and volume have now officially made way for pricing and margins.”

Tomorrow: Attracting business in 2012…

June 6, 2011
The best bang...

May 31, 2011
American Coin-Op Publisher Buys Magazine from Crain Communications, Launches New Website

CHICAGO — Charles Thompson, the longtime publisher of American Coin-Op, has purchased the magazine from Crain Communications Inc. effective June 1. Terms of the transaction were not disclosed.

American Trade Magazines LLC (ATM) will continue to publish American Coin-Op, as well as American Drycleaner and American Laundry News, from offices in Chicago.

Leading ATM is President and Publisher Charles Thompson, who maintains overall responsibility for the magazine’s editorial, production, circulation, promotion and sales operations.

Thompson joined Crain Communications as Midwest sales manager in 1989 and was promoted to national sales manager in 1994, associate publisher in 1997 and publisher in 1998.

“We are excited to be able to give these titles a more entrepreneurial approach,” he says. “In this new environment, we will be better able to react more quickly to our markets’ wants and needs. We will also be expanding into new markets in the coming months. We have a great team in place to take American Trade Magazines to a new level.”

Thompson has retained three ATM veterans to ensure the publications’ continuity while exploring new growth opportunities.

Editorial Director Bruce Beggs has been the editor of American Laundry News since 1999. He is now responsible for the editorial content for all three publications, utilizing the diverse talents of industry experts and freelance contributors.

National Sales Director Donald Feinstein oversees all advertising sales for the group’s print publications and digital media products. Feinstein joined Crain Communications in 1996 and helped produce a dozen business and trade publications over several years. He joined ATM in 2001 as the group’s production manager, overseeing the transition to an all-digital workflow. In 2005, he moved into ad sales and became Eastern regional sales manager.

Digital Media Director Nathan Frerichs joined ATM as web editor in 2010. After many years working as a print writer, designer and photographer, Frerichs crossed the digital divide in 2003 and hasn’t looked back. His responsibilities now include developing and designing the three publications’ websites, e-newsletters and other new-media projects.

Advising Thompson will be John S. Suhler, co-founder and general partner of Veronis Suhler Stevenson, a private equity and debt capital fund management company that invests in the media industry. For much of his operational career, Suhler was a senior manager/publisher/president in educational, professional and consumer publishing.

One of ATM’s first orders of new business will be the unveiling of new websites. The resource-driven, user-friendly sites—AmericanCoinOp.com, AmericanDrycleaner.com and AmericanLaundryNews.com—have been reimagined and retooled.

ATM will be exhibiting at the Clean Show June 6-9 at the Las Vegas Convention Center, and the staff invites attendees to stop by Booth 1175 to learn more about the magazines and see demonstrations of the new websites.

Until the company relocates to its new offices in Chicago, staff members may be reached by cell phone or e-mail:
 


General e-mail inquiries may be directed to admin@americantrademagazines.com.

 

April 13, 2011
Multihousing Laundry Industry: The Same, Only Different (Part 2 of 2)

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

March 3, 2011
The Road to Efficiency (Part 2 of 2)

March 1, 2011
The Road to Efficiency (Part 1 of 2)

November 26, 2010
Improving the Self-Service Laundry Industry (Part 1 of 3)

September 21, 2009
Texas Laundry Wins Speed Queen Award