American Coin-Op - July 2013

Beggs

clean show capsule

Back from the Big easy

At this writing, just four days have passed since the 2013 Clean Show closed and my feet still hurt. What’s the old saying — no pain, no gain?

A little discomfort is certainly well worth the experience of walking the aisles of our industry’s largest trade show (for a seventh time) and meeting some great coin laundry owners, dry cleaners, OPL managers and textile rental operators amongst the massive displays and bright lights.

You’ll find our Clean Show Report in two parts. Part I this month covers show basics and offers some photos from New Orleans. Part II coming in August will feature an expanded look at the announcements, introductions and ideas that arguably made Clean ’13 a success.

This year’s show was shortened to three days. It remains to be seen if the “experiment” becomes the norm or we revert to the traditional four-day show two years from now in Atlanta.

I prefer four days to three so I have more time to see more exhibitors, but I understand the economics behind shortening the show.

No matter the final decision, I’m investing in some new insoles next time.

Bruce Beggs Editorial Director

editoriaL

Charles Thompson, Publisher

E-mail: cthompson@ americantrademagazines.com Phone: 312-361-1680

Bruce Beggs, Editorial Director E-mail: bbeggs@ americantrademagazines.com Phone: 312-361-1683

Roger Napiwocki, Production Manager

Jean Teller, Contributing Editor

Carlo Calma, Editorial Assistant

Nathan Frerichs, Digital Media Director

E-mail: nfrerichs@ americantrademagazines.com Phone: 312-361-1681

advertising

Donald Feinstein, Natl. Sales Director E-mail: dfeinstein@ americantrademagazines.com Phone: 312-361-1682

office information

Main: 312-361-1700 Fax: 312-361-1685 suBscriptions 630-739-0600 www.AmericanCoinOp.com

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S. and Possessions, 1 year $39.00; 2 years $73.00. Foreign, 1 year $89.00; 2 years $166.00. Single copies $7.00 for U.S. and Possessions, $14.00 for all other countries. Published by American Trade Magazines LLC, 566 West Lake Street, Suite 420, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices.

POSTMASTER, Send changes of address and form 3579 to American Coin-Op, Subscription Dept., 440 Quadrangle Drive, Suite E, Bolingbrook, IL 60440. Volume 54, number 7. Editorial, executive and advertising offices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher. American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. No material appearing in American Coin-Op may be reprinted without written permission. The publisher reserves the right to reject any advertising for any reason.

© Copyright AMERICAN TRADE MAGAZINES LLC, 2013. Printed in U.S.A.

Bruce

MANY OWNERS FAVOR STORE PURCHASE OVER LEASE

The majority of coin-op store owners today do not lease their laundry, according to data compiled in June’s American Coin-Op Wire survey.

Slightly more than 40% of owners say they lease their store’s property. Among the 59.3% of respondents who do not lease today, nearly three-quarters of them—71.4%—report they would never consider the option of leasing.

Approximately 14% would consider leasing, and the remaining 14.3% were unsure.

The majority of respondents who lease are content with their landlord, with 5.6% reporting theirs is “ideal” and 44.4% saying theirs is “better than most.” Roughly 17% say their landlord is “neither good nor bad.”

Of those who aren’t as pleased with their landlord, 27.8% say theirs is “somewhat difficult to work with” and 5.6% claim theirs is “impossible to deal with.”

If you lease your coin laundry, how knowledgeable are you about what the agreement entails? Among respondents, 45% say they are “comfortable with most details,” 30% “know the basics,” 15% “fully comprehend” the document, and 5% confess they “know very little” about it. The remainder do not have a lease.

No one who took the survey responded that they leave the lease details up to their attorney, but one operator did suggest consulting with one. “Hire a commercial real estate attorney, one who is familiar with commercial leases,” the owner says.

One area in which hiring an attorney can be beneficial is in understanding the details and “language” of a lease.

Though many coin laundry owners say that a lease language misunderstanding has never cost them money (61.9%), one-third say that such an incident has happened to them (33.3%). Only 4.8% are unsure.

“I looked at one laundry to buy (but) the lease (was) so bad you could not make any money,” recounts one store owner. “It had 18 ways to get in your pocket, besides being a triple net. Needless to say, we did not purchase it.”

While American Coin-Op’s Wire survey presents a snapshot of the audience’s viewpoints, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate anonymously in an industry survey each month.

The entire American Coin-Op audience is encouraged to participate, as a greater number of responses will help to better define owner/operator opinions and industry trends.

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Jazzes Things Up

Clean Show in New Orleans

Early attendance reaches 10,000; final total not available at press time

By Bruce Beggs, Editorial Director

The 2013 edition of the Clean Show— officially the World Educational Congress for Laundering and Drycleaning—closed here Saturday, June 22, at the Ernest N. Morial Convention Center after three full days of exhibits, educational programming and after-hours networking opportunities. Based on observation and comments from a sampling of exhibitors, the first two days of the show were the best attended and saw the greatest level of activity.

John Riddle, president of management

firm Riddle & Associates, reported after Thursday’s opening day that attendance had already reached the 10,000 mark predicted before the show.

Final attendance figures weren’t available as this issue went to press; Riddle said his staff would need time to tally registrations and determine if the New Orleans show total exceeded the 11,200 who registered in Las Vegas in 2011.

Exhibition space in New Orleans was up approximately 8% from what had been budgeted, according to David Cotter, Clean ’13 chairman and CEO of the Textile Care Allied Trades Association (TCATA).

Dry cleaners, coin laundry owners, textile service operators, on-premise laundry managers and other attendees had the opportunity to see the latest products and services displayed by 420 exhibitors.

Many exhibitors reported that attendees they spoke to had come to New Orleans with a show strategy and were seeking to achieve specific goals, including gathering information about new or next-generation products or even making arrangements for purchases of laundry and dry cleaning equipment, textiles, and other items.

Clean offered some 40 hours of educational programming to attendees. For the first time, it hosted afternoon educational sessions right on the show floor, and some of them drew standing-room-only crowds.

Other additions at this year’s exhibition were a mobile device app that attendees could use to more effectively plan their show visit, and a more active social media presence in support of the show. Monitors

An ESD (short for Electronic Systems & Devices) representative demonstrates the payment system software available from the company.

strategically placed throughout the massive exhibit hall displayed tweets featuring the hashtag #Clean2013.

The next edition of Clean will convene in Atlanta in April 2015, confirms Brian Wallace, Clean ’15 chairman and Coin Laundry Association CEO, but the show’s length is undetermined.

At press time, the Clean Executive Committee was waiting to gather feedback from exhibitors and attendees regarding this year’s three-day show “experiment” to decide if the 2015 show will remain three

Chatting about the hot water systems on display in the Hamilton Engineering booth. (Photos: Nathan Frerichs and Bruce Beggs)

days in length or shift back to the traditional four days, Cotter says.

Show sponsors are the Association for Linen Management (ALM), CLA, the Drycleaning and Laundry Institute (DLI), TCATA and the Textile Rental Services Association of America (TRSA).

Four of the five sponsors organized educational sessions, as did the American Reusable Textile Association (ARTA), the Canadian Cleaners and Launderers Allied Trades Association (CLATA) and the European Textile Service Association (ETSA).

Following the 2015 event in Atlanta, the Clean Show will return in June 2017 in Las Vegas, and the Clean Executive Committee has signed a letter of intent to bring the show back to New Orleans in June 2019.

Watch for the more comprehensive Clean Show Report, Part II, in the August issue of American Coin-Op! ■

There were carts galore in the R&B Wire Products booth.

Huebsch brand equipment was just one part of the multi-faceted Alliance Laundry Systems booth.

Monarch Coin & Security’s Danielle Hall (wearing tag) describes some of the coin chutes and slides that the Kentucky company manufactures.

Gal Rozov points to the FoldiMate, a robotic laundry folding machine that Rozov envisions as an extra profit center for Laundromats.

Setomatic Systems’ towering display, created and manufactured by the Setomatic team, looms over the exhibit floor.

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asking Questions Leads to Business

A Laundromat operator said to me: “I don’t like my staff fraternizing with customers. Take care of their needs, but don’t bother them. Let them get in and out. The attendant can make better use of his time by focusing on his work. So when I walk in one of my stores and see the staffer talking to a customer, I am one unhappy camper. And the person knows about it later.”

Is this a good policy?

No, it’s short-sighted, old-fashioned and timeworn. Of course, one doesn’t want the attendant standing around kibitzing all day, telling the people what’s going on in his or her life. Asking questions, however, is a particular form of communication that could result in obtaining valuable information.

It could inform customers of matters that they will find useful. It also enables you to better understand your customers and why they make the decisions they do.

In short, asking questions can be the eyes and ears of your business.

To many people, asking questions is a normal way of talking, and their listening skills may not be up to snuff. You must train your staff in the art of asking questions. Role playing is a good training tool. Use the following examples as role-playing opportunities.

TARGET YOUR MARKET

The customer asks a question about a machine. The attendant comes over and answers it to the customer’s satisfaction.

Attendant: Where do you live?

Customer: Bradley Court Apartments.

Attendant: Don’t they have washers and dryers?

Customer: Yeah, but the machines are always broken. There’s no mechanic to fix them.

Attendant: How many people live in Bradley Court?

Customer: Well, there are four buildings, 12 apartments each building – that’s 48 families.”

Bingo. The staffer learns about Bradley Court’s washer-dryer situation. Probably 47 families clean their clothes there and are dissatisfied every time they do it. The attendant communicates the information to you.

You have several options.

You could approach Bradley Court to make an arrangement.

You could stand out front and approach passersby: “I know the Bradley Court washers and dryers are always breaking down. Who knows, they may be discharging grease into your clothing. We’re the Laundromat on Center Street and, if you came to us, we could save you a lot of aggravation. Maybe you could make the task part of your chore day.” You could enlist interested parties to spread the word.

You could start a pick-up service where you pick up three days a week and deliver three days a week. Pick-up and delivery would be relatively easy since it’s a single location. And since it’s an apartment building, you could leave the laundry in a fixed spot — obtain a key and leave the goods in front of the door, in the foyer, or in a garage. By going to Bradley Court frequently, you’d develop a name brand, which would help you win more business.

Consider this: Get 20 customers at $10 each. That means $800 more business a month, or $9,600 a year. That’s a nice chunk of business. You could do earlymorning pick-up and delivery, and be at work by 8:30.

Consider that just by asking a question, you could be expanding your business. To make this happen, the attendant must ask questions, realize the value of the answer, communicate the information to you, and you put procedures in place to gain from the information.

Role-play several of these scenarios. Point out the potential value of the information. Set up a procedure so that the information gets communicated to you.

For example, perhaps there is a clipboard, and the attendant writes down: “4/6 – customer uses our laundry because Bradley Court overcharges. Can we gain some more business there? I don’t think anybody else comes in from there.”

SAFETY CONCERNS

Here’s another scenario: Attendant: I see you in here all the time when it’s quite late.

Customer: Yeah, well, you’re the only Laundromat I can go to where I feel like I’m safe. I went to the other

Howard Scott

Laundromat on West and Crocker, and they have rough people hanging out across the street. Once, a kid tried to steal my pocketbook, but I fought him off.

Bingo. You learned that a big reason customers patronize your store in the evening hours is because it’s in a safe area. Maybe the street is well lit. Maybe it’s well patrolled. Possibly it’s the proliferation of open stores. Whatever the reason, it’s safe. So what are you going to do with the information?

Use We Are Safe, Day or Night in all your marketing. Put up a sign saying, “If it is more convenient to do your laundry at night, we’re a safe place in a safe neighborhood.” Whenever you talk about your service, bring up the fact that the neighborhood is safe.

A SAVINGS ISSUE

Another scenario goes something like this:

Customer arrives to pick up wash-dry-fold work.

Attendant: You really like our wash-dry-fold service, don’t you?

Customer: I calculated your service is 20% more than if I did it myself. I save time, and I give the simple jobs to you. My time is worth it.

Bingo. You learned a clever way to express the cost benefit –“Save time; give the simple jobs to us.” Framed in those terms, it’s a great way to sell the service. You might create an ad – “Use our wash-dry-fold service – isn’t your time worth it?” If you could get prospects to think in terms of saving time, you would win a lot more wash-dry-fold volume.

If you operate an unattended store, then the opportunity to ask questions is limited, but not completely. You personally must be the eyes and ears of your business.

When you go there at your regular time to cash out, be sure to question the customers in the store. Also, go there at different times to expand your sampling. Of course, it’s easier because you know the questions to ask, and as boss, you can quickly put the information to use.

Make asking questions a new directive in your company. The information gained will sometimes turn into golden nuggets of value. n

Howard Scott is a long-time business writer and small-business consultant. He has published four books.

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VENDING EQUIPMENT

Vend-Rite ManufactuRing co.

end-Rite’s Vision line provides an opportunity for a Laundromat owner to offer customers a variety of products in a variety of sizes.

All venders feature a conveyor delivery system that maximizes product capacity. The system has the ability to vend items as small as a business card (items such as Internet password cards) to those as large as a 75-oz. bottle of detergent. The Vision vender delivers products by an elevator to a convenient collection area.

The MDB wiring platform provides for multiple payment systems – coin, bill or card technology. The five-tube coin mechanism will accept nickels, dimes, quarters and dollar coins, while the multi-directional bill acceptor will accept bills in denominations of $1, $5 and $10.

Features include continuous system check and self diagnostics, product dat-

ing, refrigeration check, accountability and sales data. The illuminated front and hours of operation can be programmed, as well as an advertising panel on the delivery elevator.

The modular design of the prewired shelves, motor assemblies and cabinet configuration offers flexibility. Drinks and snacks can be offered out of the same machine; the vender can be programmed to chill as much or as little of the machine as the products require, Vend-Rite says.

The TAOS Vision (pictured) is controlled by a credit-accepting unit that can operate up to four vending units. The TAOS can be ordered with or without refrigeration. The venders have bubble brand artwork on the front. The available side panel graphics (shown) are optional. vendrite.com 800-777-1802

fiRst PRefeRence PRoducts coRP.

First Preference Products Corp. now offers its new Model 224 vending machine for laundry supplies. The machine’s small footprint and low cost permit a Laundromat owner to place several around the store to merchandise laundry products by point of use and product category, an effective technique used by retail stores, the company says.

Easier to load and maintain, the product columns are attached

to the inside of the door and adjust to accommodate any vended laundry product, including laundry bags, the company says.

The machine includes a separate locking coin box, and the front of the machine has a large exterior panel visible at a distance to display point-of-sale materials. The all-mechanical machine requires no electricity, and includes high-security features at no additional cost. vendpack.com 800-414-7964

K Manufacturing offers a bulk redemption game called Splat Ball!

The game is a pinball-style game in which a player plays pinball with the 1-inch prize they can win. They also can win a second 1-inch prize. If a player is skilled enough, he or she can win a grand prize of a 2-inchround prize such as a toy capsule or Super Ball.

Splat Ball! has a small footprint and features colorful graphics, lighting and music, the company says.

okmfg.net 800-748-5480

The LM18 high-security in-wall vender offered by RPD Corp. works well for Laundromats, the company says.

It can be configured for front load or rear load. It features 14-gauge stainless steel doors and frame, a builtin bill acceptor, an LED credit display, and 18 selections with a 234-piece standard capacity. rpdvending.com 501-327-9496

Seaga

eaga offers coin-operated laundry owners a wide variety of vending equipment, including snack, cold-drink and hot-drink dispensers, bill changers and more.

The company’s mechanical SL1000 laundry supply vender features heavy-duty steel construction and a dual locking system for security. Selections can be priced individually and changed quickly due to the design of the coin mechanisms.

The SP range of vending equipment is available in four- or five-wide versions, ambient or refrigerated, and in a wide variety of configurations to vend the products that appeal to a Laundromat’s customers.

The machines offer energy-efficient LED lighting, vend

sensor, and dual coils as standard components. seagamfg.com 815-297-9500

Effectively Multiple Stores

Managing

By Carlo Calma, Editorial Assistant

No matter their industry, many business owners aspire to see their business grow.

Though business owners can use many different metrics to measure this, one way those in the coin laundry industry strive for growth is through the acquisition or construction of multiple stores.

And being able to effectively manage more than one coin-op is an important topic, as evidenced by the Coin Laundry Association’s (CLA) educational session titled The Keys to Successful Multiple Store Management at the just-ended Clean Show in New Orleans.

Bob Neiman, who edits the CLA’s member publication, moderated the panel, and explained that roughly a third of coin laundry store owners own multiple locations. According to a recent CLA survey, 65% of Laundromat owners own just one store, 23% own two, 7% own three, 2% own four, and 3% own five or more stores.

With the various responsibilities that come with owning a coin laundry—from the day-to-day operations of cleaning and handling customer concerns, to managing staff and bookkeeping duties—how can a store owner ensure that he or she is effectively managing the multiple locations?

For many store owners who own multiple locations, having a checklist of things to inspect is paramount.

CHECKING OFF A CHECKLIST

“As much as we can, we systematize the whole business,” Bob Schwartz, owner

Photo: ©iStockphoto/ bowie15

and founder of SuperSuds Management, tells American Coin-Op. “Whether it’s daily checklists, weekly checklists, quarterly checklists, we have it all documented.”

Schwartz broke into the industry in 1996 when he and his wife purchased their first store in Fredericksburg, Va. Since then, utilizing his background on Wall Street, he explained that he’s purchased two to three stores every year, fixing up and operating existing coin laundries.

Though he has since closed some of his locations, to date, Schwartz operates 24 coin-operated laundries under SuperSuds Management across various locations in the Northeast. His newest store recently opened in Cleveland, and two more are currently under development.

One of Schwartz’s tactics in managing his stores is delegating a “hundred-point

checklist” of 25 items he requires his managers/attendants to inspect on a regular basis, which includes things such as how clean the store’s floor is; the cleanliness of the washers, soap trays and folding tables; and if any of the interior lights require replacement.

“That’s part of [the manager’s] bonus evaluation every year,” says Schwartz. “Not only do they get bonuses…but if it doesn’t meet a certain point threshold, then they’re going to be under review for termination.”

Though Schwartz primarily has his attendants perform the clerical and janitorial duties at his stores, Dave Menz, owner of Queen City Coin Laundry in the Cincinnati area, takes a more hands-on approach when it comes to handling his store’s to-do lists.

Menz’s start in the coin laundry industry began in March 2010, when he purchased an existing coin laundry just four miles from his home in Amelia, Ohio.

He “caught the coin laundry bug,” because in the six months that he began operating his first location, he had already started looking for a second location, and purchased another store just 20 minutes away in Milford, Ohio. He opened there in January 2011.

Though he admits to delegating the cleaning duties to his staff, and the major repairs of machines to his distributor H-M Company, he still plays a personal role in physically tending to his stores.

“A lot of what I’m doing is janitorial type of things,” says Menz. “I estimate I spend about 50% of my time on things like changing light bulbs, fixing/repairing the toilet, … changing the filter on the furnaces and collecting money.”

Bill Rhodes, owner of Rhodes Enter-

prises, takes a similar approach as Menz. Rhodes, who owns three coin-operated laundries in the Huntington Beach, Calif., area, tells American Coin-Op that in addition to processing money, he performs any necessary maintenance in one of his locations in Catalina, Calif.

“I do most of the maintenance because it costs $500 to bring a [repairman] there, so I’ve learned how to fix [equipment],” he says.

Rhodes advises multi-store owners to brush up on repair skills. “Even if you don’t do your own repairs, I think you need to be able to know what your repair guys are doing. If you have the ability, you need to learn as much as you can.”

SCHEDULING STORE VISITS

With a checklist in place, what is the best practice for actually making visits to each store?

“Probably the best advice I can have for [others] is I try really hard to make the best use of time management,” says Menz.

“There are some weeks I go to both stores in the same day,” he adds. “Some days, I’m working on another project and I don’t go to either store that day.”

For Rhodes, ensuring that equipment is properly maintained helps to reduce the frequency of store visits.

“Keep your equipment running really well [and practice] good maintenance so you don’t have to go there a lot,” he says.

Rhodes also utilizes devices that include coin counters and scales, and cash counting machines, to help expedite the collection process during visits. “Have your money processing ... as streamlined as possible,”

rhinoCeros tOugH pOwerFul tenaCiOus resilient

“Whether it’s daily checklists, weekly checklists, quarterly checklists, we have it all documented.”

—Bob Schwartz, SuperSuds Management

he says. “Don’t be afraid to spend the money to get the right tools to do it.”

Schwartz utilizes a unique approach to gauge how well his staff is tending to the checklist he has implemented.

“We go unannounced, so it’s a really good checks and balances when you operate remote stores or multiple stores,” says Schwartz about his store visits. “You have to do it unannounced, I believe. They can’t know that you’re showing up, because you’re never going to get an accurate evaluation of how [well] the store is performing.”

But because of the number of stores he owns, he explains that he is only able to make quarterly visits. Despite this, he is still able to gain a consistent perspective of how his stores are operating through the help of several staff members.

“Between our service guys and our collection people, and my managers, we’re in these stores all the time, multiple times a week,” says Schwartz. “They’re my eyes and ears, so to speak.”

EFFECTIVE EMPLOYEES

Another strategy that multi-store owners employ to effectively manage their businesses is hiring effective employees.

Roger Idler, owner of Superior Laundries, operates five coin laundry stores in the Aurora, Westminster and Arvada, Colo., area. He’s had extensive experience managing multiple stores, previously owning four other laundries in the San Luis Obispo, Calif., area.

Currently, Idler has four managers who also serve as attendants at four out of five of his stores. He relies on their help to manage his stores whenever he has other obligations.

“[The managers] work the mornings during the week, until 3 p.m.,” says Idler. “And then, I have part-time people that will come in and work from 3 p.m. to close.”

In addition to his roster of managers and part-time employees, Idler also employs a cleaning crew at one of his locations.

Because of the number of stores he owns, Schwartz has a more structured process to how his employees are assembled. One general manager oversees sub-group leaders who are in charge of four to five stores in a specific region.

But despite the intricacy of how he manages his employees, the effectiveness

of hiring good employees lies in empowerment and knowing how to delegate, he says.

“The whole trick to this [is] hiring good employees, empowering them to do a good job, but also learning to delegate,” says Schwartz. “It’s all about creating a culture in our organization that we want to empower our employees, so [they can] take ownership of these stores.”

TENDING TO CUSTOMER CONCERNS

There’s only so much an attendant can do, however, when it comes to handling customer concerns. “I really truly believe that as a business owner, you can have a great staff and you can rely on them, but at the end of the day, everything starts at the top,” says Menz.

That is why Menz has made the effort to post his cell phone number around his stores so that customers can have a oneon-one interaction with him whenever an issue arises.

“When I decided that our stores were going to be open 24 hours a day, I realized that it was cost-prohibitive to have attendants there 24 hours a day,” he says. “And if an employee is not there, and a manager is not there, [the customers] have to be able to reach someone. At the end of the day, the buck stops with me.”

He never turns off his cell phone, he says, and is willing to help a customer out, no matter the time of day.

someone’s in one of my stores at 3 o’clock in the morning doing laundry, and

“If

Bob Neiman (center), editor of the Coin Laundry Association’s member publication, moderates a Clean 2013 panel discussion highlighting the best practices of multi-store management. Panelists are (from left) Jeff Hooper, owner of Salem Laundry Co., Lynn, Mass.;

Michael Finkelstein, owner of Associated Services Corp., Danville, Va.; Brian Brunckhorst, owner of Advantage Laundry Inc., Hayward, Calif.; and John Henderson, owner of Liberty Laundry, Tulsa, Okla. (Photo: Carlo Calma)

“probably the best advice i can have for [others] is i try really hard to make the best use of time management.”

—Dave Menz, Queen City Coin Laundry

they have trouble with something … and no one’s there to help them, I’m the person that helps them,” says Menz.

“If you’re going to run a business 24 hours a day, you have to provide customer service 24 hours a day,” he adds.

Rhodes takes a similar position as Menz in terms of his availability to customers. “My phone number, and my cell phone and wife’s cell phone, are on the wall and we get calls every week. Sometimes I might go four days [with] no calls, sometimes I get two [to] three calls a day … and I can always handle them over the phone.

“I always give refunds almost without exception.”

BUYING IN BULK

What is the most cost-effective way to budget for supplies? Both Menz and

house where his suppliers ship items such as cleaning and vending supplies. From there, his staff and service crew are able to ship supplies directly from their own stock to whichever store needs replenishment.

“We know where we need products, so ... we’re in control of it,” says Schwartz. “Once it gets shipped to our warehouse, for example, we can store this stuff, so we’re never out of product.”

EXPANSION CONSIDERATIONS AND BOOKKEEPING

With a coin laundry business up and running, how can an owner determine if it’s the right time or place to establish the next location?

Michael Finkelstein, owner of Associated Services Corp. in Danville, Va., addressed the topic during CLA’s panel discussion.

as QuickBooks.

He explained that through such software, he is able to keep track of things such as turns per day, average daily revenue by store, payroll to gross percentage, and even spikes in the cost of operating supplies.

“The flexibility that that program gives me really helped me when I first started,” says Henderson. “With everything in there, you know where every dollar is flowing, where it’s coming from, where it’s going to, and its ability to generate reports based on that has really made managing the business [easier].”

IS IT WORTH IT?

Despite the stressors that can come with managing multiple locations, is it really worth it?

For Henderson, owning multiple stores

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Schwartz attest to the benefits of buying in bulk.

For Menz, buying items such as vending and cleaning supplies in bulk not only allows him to save money, but also affords the opportunity to enhance a store’s overall customer experience.

“We believe in buying the best supplies and keeping our stores as clean as we can, but ... we try to keep those costs under control,” he says.

“We do that so that in other aspects of the business, like equipment purchases and renovations … we can afford to do those things so we can give the customer a positive experience.”

As with other aspects of his business, Schwartz systematically buys in bulk and organizes his supplies.

He has established a central office ware-

Owners can’t look only at the location of their next store in relation to its proximity to other amenities, according to Finkelstein, but should consider the overall infrastructure of the building, its rent and what kind of debt they may be getting into.

“At the end of the day, you don’t just want to work for your landlord,” Finkelstein tells the New Orleans Convention Center audience. “You need to see a return at some point in time. Be very careful where you want to expand ... and make sure that you can look at it to make that return based on that investment, and look at the timeline you can expect to recoup the investment.”

In terms of keeping track of the financial aspects of an owner’s multiple stores, John Henderson, owner of Liberty Laundry in Tulsa, Okla., spoke during the CLA discussion of utilizing bookkeeping software such

“opens up all kinds of opportunities.”

Finkelstein believes that owning more than one location can safeguard an owner from losing his overall business in rough economic times.

“One of the greatest advantages of having [multiple stores] is that if your stores are diverse and you’re over a greater geographic area ... it somewhat insulates you from an economic downturn,” he says. “You can minimize that downturn, so you’re basically not putting all your eggs in one basket.”

Schwartz echoes that sentiment.

“I think there’s more financial risk in having one or two stores than having 15 stores,” says Schwartz. “It’s diversification. People think it’s riskier to grow, [but] I would contend it’s just the opposite. I think you need to grow.”

Top Five news sTories

• Mountain Electronics Owners Honored...

• Clean Show Expands Educational Programming to Include Afternoons

• Alliance Laundry Systems Names Bruggeman Director of Global Product...

• Speed Queen Names Yankee Equipment its 2012 Distributor of Year

• ESD Adds Two Technical Sales Reps to Staff

ColumnisTs/FeaTures

• Survey: Cleanliness is Fundamental to Coin Laundry Success

• How Are Your Coin Laundry Sales ... and Why?

• Going Industrial: Quality Linen Makes the Leap from Coin

• Fending Off Hack Attacks

• How to Safeguard Your Business Name

our sisTer websiTes

From AmericanLaundryNews.com:

• Survey: Respondents Show Lukewarm Interest in Laundry Accreditation...

• Exclusive: 2010-2011 Textile Care Processing Cost Benchmarks

From AmericanDrycleaner.com:

• Making the Decision to Raise Dry Cleaning Prices

• Capitalize on Casual

AUGUST

Feature: Attendant Training Mold and manage employees to keep customers happy and the coin laundry on the right path.

Clean Show Report Part II An expanded look at the announcements, introductions and ideas that made Clean ’13 a success.

Editorial Submission Deadline — June 15

SEPTEMBER

Feature: Best Marketing Tips These simple, inexpensive marketing tips can boost any operation.

Demographics Make sense of the numbers and how they can benefit coin laundries.

Product Showcase: Cashless Systems

Editorial Submission Deadline — July 15

OCTOBER

Feature: Distributors Directory & Survey Another “keeper” issue lists equipment/supplies distributors nationwide, plus the results of our annual distributor business survey.

Editorial Submission Deadline — August 15

NOVEMBER

Feature: Equipment Service Tips Not every equipment matter requires a service call. Here are some maintenance pointers for keeping machines in good, working condition.

Product Showcase: Water Heaters

Editorial Submission Deadline — September 15

don’t miss these upComing events

july

17 Laundrylux

New York Open House Inwood, N.Y. Info: 866-971-1010

september

7 Golden State

Laundry Systems Open House Rancho Dominguez, Calif. Info: 800-465-8300

11-12 BDS Laundry Systems Open House and Product Show St. Paul, Minn. Info: 800-688-0020

22-25 Textile Rental Services Assn. Annual Conference Sonoma, Calif. Info: 703-519-0029 x108

october

10 Ontario Laundry

Open House and Product Show

Location to be determined Info: 888-669-4837

19-20 National Cleaners Association

TexCare Trade Show and Exhibit Secaucus, N.J. Info: 212-967-3002

Visit AmericanCoinOp.com for more calendar listings!

FrontecStore.com

REBUILT MACHINES

WASCO 185’s 220/1 & 220/3 $3,500

WASCO 184’s 220/1 & 220/3 $2,700

WASCO 125’s 220/1 & 220/3 $2,400

WASCO 124’s 220/1 & 220/3 $1,850

WASCO 74’s 110 v & 220/3 $ 975

WASCO 75’s 110 v & 220/3 $1,200

WASCO 620’s 110V $1,600

PARTS

Our Parts Department has thousands of products on over an acre lot.

If we don’t have what you want, ask us, and we’ll find it for you.

FACILITY DESIGN

From initial site inspections and recommendations to equipment purchase and installation, we are here to help with every aspect of your project.

We can help you with specifications, dimensions, illustrations of commercial and on-premise laundry equipment.

FINANCING

We are able to offer competitive rates and low, affordable monthly payments for financing coin laundry and laundromat facilities.

We have a coin laundry financing solution to meet the needs of new store owners, and veterans alike.

ACRES OF HARD TO FIND USED

WASHER & DRYER PARTS WASHER & DRYER FRONT & SIDE PANELS ALL MAKES AND MODELS STARTING @ $50 WASHER DOOR $35 & UP COMPLETE DRYER DOOR $35 & UP COMPLETE ANY WASHER TUB 18#, 35#, 50#, WITH NEW BEARINGS $175 & UP WITH EXCHANGE ALL DRYER BASKETS $75 & UP ESD CARD READERS $150 EA

EMERALD SERIES COMPUTER BOARDS $575 EA

LET US REFURBISH YOUR PANELS ~ FRESHLY PAINTED PANELS IN EITHER ALMOND OR WHITE ... $70 EA

CALL FOR SPECIAL NEEDS

AlliAnce nAmes BruggemAn Director of gloBAl ProDuct mgmt. Alliance Laundry Systems has hired Ron Bruggeman as its director of global product management. He will develop marketing objectives and product plans and oversee product performance and life cycle.

Bruggeman brings 25 years of experience in marketing and management positions at businesses that include Illinois Tool Works Inc. and USG Corp. While at USG, Bruggeman was appointed president and general manager of a newly created subsidiary after holding positions such as sales field representative, product manager and director of marketing.

“Ron is an accomplished general manager and marketing professional with strong experience in product and strategy development, technology road-mapping and change management,” says Mike Schoeb, Alliance’s president and CEO. “His experience and expertise leading cross-functional teams will help us to further our vision and leadership to proactively drive Alliance’s brands and products as clear global leaders in commercial laundry.”

esD ADDs two new sAles rePresentAtives to stAff ESD has added two new members, Cliff Curtis and Chris Juarez, to its nationwide sales team, the company reports.

Curtis has been appointed to Midwest regional sales representative and will be headquartered in Chicago. After attending college, he went to work for commercial laundry distributor Commercial Appliance full-time in 1990, mentored by 40-year industry veteran George Stephens. Curtis built his first laundry in 1994.

Commercial Appliance was later sold to Mac-Gray, and Curtis remained with the company until 2010.

His laundry experience includes owning and operating laundries; he managed a nine-store laundry chain based in Chicago, ESD says.

Curtis formed Wash Pride Inc., an independent distributor of Electrolux and Wascomat products in Northern Illinois, in 2011.

Juarez will be working from his Los Angeles home and traveling throughout the West to support ESD customers as technical sales representative.

Juarez attended Sonoma State to get a degree in physics, but soon followed his father’s career path and went to work as a sales agent for the California Speed Queen distributor.

He left the industry for a while, but when the opportunity to join ESD arrived, he felt the time was right to settle into a longterm career that would make the most of his combined experience.

sPeeD Queen nAmes YAnkee eQuiPment 2012 DistriButor of YeAr Speed Queen recently named Yankee Equipment Systems its 2012 Distributor of the Year during the distributor’s annual cus-

tomer appreciation event in Waltham, Mass. Yankee Equipment has been selling Speed Queen products for more than 25 years.

“Our distributor of the year award is not only about year-overyear sales increases,” says Dan Bowe, Speed Queen national sales manager. “We recognized Yankee Equipment Systems because of how they represent the Speed Queen brand – their commitment to customer service, their active involvement in the industry and their ongoing investment into their company, including employee training and seminars.”

Yankee embodies the Speed Queen Customer One philosophy, a commitment to customer satisfaction, Bowe adds. The significance of this award is only deepened by the strength of Speed Queen’s 68-distributor network.

“We are honored to receive the Speed Queen Distributor of the Year award, and recognize that it represents an ongoing partnership between our two brands,” says Ted Ristaino, co-owner of Yankee. “Speed Queen truly partners with their dealers to provide quality products and training to better enable us to service our customers.”

chicAgo’s D&m eQuiPment co. hosts wisconsin service schools D&M Equipment Co., a Dexter authorized distributor based in Chicago, recently hosted Dexter service schools in Wisconsin that were attended by more than 30 laundry owners and technicians, the company reports. The event featured product displays, service and industry seminars, breakfast, lunch and more.

D&M’s Don Tomasian and Joe Frankian, along with the company’s Wisconsin representative, Dan Osero, welcomed everyone. Russ Cooper and James Scotton of Dexter Laundry conducted the technical training, assisted by Rick Case, D&M’s Dexter representative.

Attendees came away with information on keeping Dexter washers and dryers operating reliably and efficiently. Factory technicians included service seminars on washers, dryers and Easy Card systems.

Bruggeman

Representatives of Yankee Equipment Systems and Speed Queen gather for the award presentation: (from left) Tom Carney, Mike Webb, Ted Ristaino, Jay McDonald, Peter Limoncelli, John Smith, Brendan Ristaino, Gerry Guertin and Mike Buck.