American Coin-Op - September 2013

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ON KEY DEMOGRAPHICS

After choosing to invest in a coin Laundromat, a buyer has to make several decisions, with store location being perhaps the most important. Generally speaking, there are a few key demographics that an investor should consider.

LEADING A PURPOSEFUL LIFE

Columnist Howard Scott has, over the years, suggested many ways or strategies to improve your Laundromat business. But what he’s really been writing about is leading a purposeful life. It’s more than just the business, it’s your whole life, Scott says, and at its core should be confidence and enthusiasm.

INDUSTRY TRENDS: WHAT’S IN THE FORECAST?

Where does the coin laundry industry stand, and what path will it take in the years to come? Brian Wallace, president/ CEO of the Coin Laundry Association, shares his group’s insights and projections.

A DOZEN WAYS TO STAY OUT OF COURT

If your coin laundry business gets sued, it may be socked with a huge verdict. In addition, because of the time, energy and money it takes to defend a case, even if you win, you lose.

online oratory

best marketing tips ...

When I developed our 2013 editorial calendar roughly one year ago, I picked this month to feature a lead article on “Best Marketing Tips,” describing it as “These simple, inexpensive marketing tips can boost any operation.”

Given the nature of our society at the moment, and our collective fondness for mobile devices and social media, it makes sense that our story—Internet Marketing: Perfecting Your Digital Doormat—focuses on online marketing.

Drawing on the expertise of three store owners who have enjoyed success in increasing their businesses’ online presence, Carlo Calma looks at Yelp, Google Places, Facebook and other sites being used to promote coin laundries. His story begins on page 10.

demographics ...

Speed Queen’s Dan Bowe says the age-old real estate saying of “location, location, location” rings true for almost any business venture, but it holds particular worth to an investor trying to decide where to open a Laundromat.

There are a few key demographics—another word for population trends—that an investor should consider, including percentage of renters, household size, and income level.

Each of these numbers can influence where to place a store, what types of services to offer, and more. If you’ve never taken a good, hard look at demographics, or if you could just use a refresher, check out this month’s Coin-Op 101 beginning on page 16.

and much more

This month’s issue has plenty more high-quality content, including a Product Showcase of cashless systems, CLA President Brian Wallace’s projections for the industry, and a dozen tips for how you can keep your coin laundry business out of court.

Hope you enjoy these last few weeks of summer. See you next month.

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 9. 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 Beggs

MAJORITY OF COIN-OP OWNERS CLAIM CUSTOMER PERSUASION SUCCESS

More than two-thirds of coin laundry owners (65.3%) say they are generally “successful at getting customers to do what [they] want” in their store, according to results from August’s American Coin-Op Your Views survey.

While 21.3% of owners admit that they are “not sure” about their influence in customer decisions, 13.3% say they are not successful in getting customers to do what they want.

If they could “get [their] customers to do one thing,” keeping the store clean (32.0%), visiting on slower days (29.3%), and other concerns (17.3%) topped the wish list.

“Stop overloading [and] use less detergent,” says one owner.

“[Customers should] understand the high cost of utilities and equipment, and why vend prices continue to rise,” says another.

In addition to having customers “use certain washers or dryers” (5.3%), paying attention to signage (14.7%) and taking advantage of coupons and promotions (1.3%) were other actions store owners wanted to push on customers.

Roughly 61% of coin-op owners surveyed (61.3%) say that their store’s signage is “effective.” While 24% admit that their signage has not been successful, roughly 15% are not sure (14.7%).

The majority of store owners surveyed also report being successful in getting customers to use certain washers or dryers (56.8%) and take advantage of specials, promotions and coupons (47.3%).

Roughly one-third of store owners (32.4%) report no success in getting customers to use certain machines, while 10.8% are unsure if they are successful. Roughly one-third (33.8%) of respondents report not being able to get customers to utilize specials, promotions and coupons, while 18.9% are unsure if they have succeeded in the task.

Attempting to shift business to slower days is a common challenge. About half of respondents say that they have not been able to shift weekend business to slower days (53.3%), while one-third (33.3%) report having had success. The remaining 13.3% are unsure of their progress.

More than two-thirds of coin laundry owners polled say their customers respect their laundry (67.6%) by using equipment properly and keeping the premises clean, among other courtesies.

While American Coin-Op’s Your Views survey presents a snapshot of the trade audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to American CoinOp e-mails are invited to participate anonymously in an industry survey each month.

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Statewide Laundry Equipment Hilton Garden Inn Riverview 4328 Garden Vista Dr., Riverview, FL 33578

Statewide Laundry Equipment Howard Johnson Plaza Hotel 230 W. State Rd. 436, Altamonte Springs, FL 32714

PWS Inc. 7370 Opportunity Rd. Suite 1 San Diego, CA 92111

PWS Inc. 6500 Flotilla St. Los Angeles, CA 90040

Statewide Laundry Equipment 16375 NW 52nd Ave. Hialeah, FL 33014

Coin-O-Matic Equipment 3900 W. 127th St. Alsip, IL 60803

Star Distributing 3729 Charlo e Ave. Nashville, TN 37209

SAMCO 133 N. 85th Pkwy. Faye eville, GA 30214

Texas Laundry

Company 3750 Red Bluff Rd. Pasadena, TX 77503

Online Marketing:

Perfecting Your Digital Doormat

By Carlo Calma

Print and word-of-mouth advertising are go-to tactics for many coin laundry store owners in promoting their business, but as usage of social media sites such as Facebook and Twitter has become the norm for many consumers, how can store owners create a stronger presence online?

As part of its educational session lineup during the recent Clean Show, the Coin Laundry Association (CLA) hosted a panel discussion regarding Internet marketing, and how several laundry store owners have mastered a plan for making their business’ presence known not only locally but in the online community.

The panel featured Tyler Blair, owner of The WashBoard Laundry in San Diego; Deborah Dower, owner of Paradise Laundry in Northern California;

and Duane King, owner of LMARIES Laundromat in Bowling Green, Ohio. CLA Digital Marketing Manager Jamie Sewell acted as moderator.

DRIVING TRAFFIC

For Blair, marketing The WashBoard was paramount. Though the store had been around for 20 years, he explains that its previous owners did little to market and manage the store.

After dabbling in print marketing, and seeing little return, he decided to increase his online efforts by setting up a website.

“What I did with my website is that I really wanted to drive people to these other places [like] Facebook, Yelp [and] Google Places,” says Blair. “The website is almost your digital doormat.”

He primarily uses Facebook to promote store happenings and deals.

“As a business, it’s just a great way to create kind of a community. Customers

post pictures and comments [and] you can get the word out about deals,” says Blair. “The one thing I like about putting ads on Facebook is you can do it by ZIP code, gender, age or interest.”

He has found the greatest success with local business-review website Yelp, saying that more than 95% of his new customers discover his Laundromat on the website.

To date, The WashBoard is the highestrated Laundromat among residents in the San Diego area, garnering a five-star rating and more than 80 user reviews, according to Blair.

Though he’s used websites such as Groupon to offer deals and promotions, he prefers Yelp’s system. “What’s interesting about Yelp versus Groupon is people actually go to Yelp’s website to read about your business, whereas Groupon … sends an e-mail blast out. So when someone goes to your website, they clearly have a need for laundry.”

Photo: © iStockphoto/Kbuntu

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One area of his business that Blair decided to promote on Yelp and Facebook is fluff-and-fold.

“When I bought the Laundromat, the previous owners were [making] between $300 to $500 a month on fluff-and-fold. About halfway through 2011, I decided I was going to push fluff-and-fold on Yelp and Facebook to see what would happen.”

The risk paid off. By the end of 2011, he generated $9,666 through the service, making even more as time went by. By the end of 2012, the service made $32,743. He reports that, as of May, he’s already made $40,536 in fluff-and-fold sales this year, all from promoting the service through the websites.

“I never expected this,” he says. “It’s causing me to rethink my whole business model because [fluff-and-fold is now] almost 35% of my revenue.”

Another aspect about Yelp that Blair likes is the ability for customers to leave reviews.

“When a customer leaves comments about your business, I think that has much more clout because you’re not paying them to say things about your business.”

POWER OF USER REVIEWS

King can attest to the power of user reviews. In addition to managing a website and various social-media accounts to promote LMARIES Laundromat, he uses Google Places to gauge customer feedback.

“A lot of you probably haven’t gone

to Google Places [but] other customers have. They’ve already written you good or bad feedback,” says King. “I don’t know about you, but when I read a website’s … reviews, I’m not only interested in the good reviews, I want to know the bad reviews.”

Blair agrees, adding, “Negative reviews [are] ways you can correct business operations.”

The work involved in setting up a free Google Places page is fairly minimal, according to King. Because many businesses may already be listed on the website, all owners have to do is “claim” their page through a phone verification process, enabling them to edit and manage their listing.

For King, the benefits of using Google Places have added up. “If you have one referral from Google Places a day, assuming 10% of clicks become customers, that equals about 36 customers per year,” he says. “That results, in my average customer use, about $18,000 a year in new business.”

Another way that King has tracked his business growth using Google Places is through new card sales.

“[In] January I … checked the activity on Google for every day of the month, and I also went out to my card system and I checked new card sales for every day of the month. All the new card sales [were] on the same day as people went to Google Places. I remind you, Google Places did not cost me anything and it’s driving all these new customers to my store.”

PRINT TO WEB

While Blair and King have an onlineheavy marketing approach, Dower initially had a print-based marketing plan for Paradise Laundries’ three locations. She later realized, however, that more and more of her customers discover her stores online.

“Every time people come into the store, I ask them, ‘How did you find out about us?’, and I was finding that 70% of them are saying the Internet,” says Dower.

She now manages a main website for her stores and utilizes Google Adwords Express to promote Paradise Laundries to its local and neighboring communities.

After creating an account and setting up a budget, all owners have to do is write three lines about their business, “give [Google] what you want [the ad] to say, and then they make four different versions of it,” according to Dower.

Through utilizing Google Adwords Express, Dower spends only $150 a month, as her website receives an average of 120 clicks and roughly 4,400 views per month.

Another online marketing resource she uses is the Yellow Pages’ website, YP.com

“They’re doing an amazing job, and what I love about [them] is … YP.com has an alliance with Bing and Yahoo!, so when I advertise with YP.com, they’re running my exact same ad on Yahoo! [and] Bing’s search engines,” says Dower.

She only spends $50 a month using YP.com, as her website receives roughly 3,100 views and 108 clicks per month through the service.

One business initiative that Dower promoted through these online advertising efforts is the conversion of one of her stores in Roseville, Calif., into a 24-hour location.

Between the location’s new extended business hours of midnight and 5 a.m., the store made an additional $1,995 in the first six months, she says. Since advertising the new hours, she was able to see a 66% return on investment.

Overall, there are many ways that coin laundry owners can beef up their stores’ online presence. In addition to the various social media and advertising websites available, store owners who join the CLA are able to set up a free website with their membership.

No matter the tactic, King advises, “The more [online presence] you have out there … Google will rank you higher when someone does a search for Laundromats in your area.”

“If you’re on the second page or below, forget it. No one is going to see you,” he adds. “You have to be on that first page, if not at the top.”

Duane King (holding microphone), owner of LMARIES Laundromat, addresses Clean Show attendees during the Internet Marketing Success Stories panel sponsored by the Coin Laundry Association. Also pictured are (from left) Deborah Dower, owner of Paradise Laundries; Tyler Blair, owner of The WashBoard Laundry; and Jamie Sewell, CLA digital marketing manager. (Photo: Carlo Calma)

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Building SucceSS on Key demographicS

After choosing to invest in a coin Laundromat, a buyer has to make several decisions, with store location being perhaps the most important. The age-old real-estate saying of “location, location, location” rings true in almost any business venture, but holds particular worth when deciding where to open a Laundromat.

Store location can significantly impact an operation’s success or failure rate, which is why choosing a manufacturer with the right expertise and resources to provide appropriate guidance is so important.

Dealing with a partner that has invested in resources such as a commercial real estate service, an in-house finance department with a long-standing history of success, and a stable, experienced distribution network will make finding and analyzing the right location much easier.

The location is one of the most important decisions a store owner will make concerning the overall success of the business. Investors should expect their manufacturer

and distributor to have the history, knowledge and experience to properly guide them through this step.

Generally speaking, there are a few key demographics—defined by Merriam-Webster as “relating to the dynamic balance of a population, especially with regard to density and capacity for expansion or decline”—that an investor should consider. First, the share of population that includes renters should be at least 35%.

Rental populations in the United States continue to increase at a staggering pace, and census data has this trend continuing through 2020. Increased immigration, the recent housing collapse, and overall change in attitude regarding home ownership have created a nation of renters. These renters are no different than homeowners when it comes to dealing with the time pressures of our fast-paced world. The ability to complete the weekly chore of laundry in less than 90 minutes is more desirable now than ever.

These paradigm shifts are important when performing site analytics and reviewing demographic trends.

When deciding on a location, considering household size and income level is important; investors should place their stores in areas where demand potential is high. The average household size in a considered location should be at least 2.3 people with a low-to-medium income level—approximately 40% of all households earning less than $35,000 per year use Laundromats. Lower-income households are less likely to pay extra for amenities such as an in-unit washer and dryer.

For example, coin laundry locations in close proximity to trailer parks have a built-in customer base. As most trailers do not have the power capability to run washer and dryer units, park residents require a Laundromat to wash and dry their clothes. This same philosophy holds true for other types of communal living, where an apartment complex may not have the

Dan Bowe

Photo: © iStockphoto/DougSchneiderPhoto

washer and dryer capacity to meet the needs of all residents.

No matter the pre-existing customer base, a hidden Laundromat is not going to attract patrons. When considering property locations, look for retail openings on a main roadway with high visibility and ample parking. Traditionally, Laundromat customers are not making the trip to do a quick load of laundry. Rather, they save up to make one trip with multiple loads. Forcing customers to street-park and walk long distances with large baskets of laundry will deter them from frequenting a specific Laundromat. Convenience is key.

Finally, choosing a Laundromat location based on commercial co-tenants can help provide incentive for customers to visit. On average, customers spend 90 minutes in a Laundromat. Give them an opportunity to multitask; by locating next to grocery stores, “dollar” stores, convenience stores, auto parts stores or check-cashing stores, Laundromats allow customers to get their laundry done and run errands at the same time.

Aside from providing added convenience, co-tenants can also help a store owner market his or her laundry, and they provide added visibility. Offer complementary deals, such as a half-price wash with the purchase of any full-size detergent at the local convenience store. This relationship can be mutually beneficial; cross-marketing can incentivize customers to frequent local shops while they are waiting for their laundry to finish.

Perhaps one of the best examples of location choice is SuperWash Laundromat in Pearsall, Texas. As part of the Eagle Ford Shale, a rock formation in central Texas where oil has been discovered, the town of Pearsall has seen a huge population increase in the past year. What was once a small town in the heart of central Texas has become a booming oil town and a central hub for shale oil mining families.

Laundry owner Sonia Trevino-Ornelas has spent her entire life playing various roles in her family’s businesses (they also own several rental properties, appliance and furniture stores, and a used car lot). In 2012, as the mining population continued to grow rapidly, Ornelas recognized the need for a Laundromat. The town’s laundry was far too small and under-maintained to meet the new demand, she determined. Identifying a business opportunity, Ornelas decided to convert one of her family’s previously owned properties into a Laundromat.

“Mining families moved in quickly after the oil boom, and many did not bring washers and dryers,” she says. “Families are never

sure how long they are going to stay, as the industry is largely migratory and requires the workers to move to retain employment. The influx of renters provided the perfect opportunity for us to launch and maintain our laundry business.”

Location and population demographics also largely influenced the types of machines, services and amenities Ornelas chose to provide.

She worked with distributor Texas Laundry Service Co., based in Pasadena, Texas, to lay out her Laundromat and determine the ideal equipment mix. With 99 machines and a wireless control system, Ornelas gives her customers a variety of options, including time-of-day pricing deals and a “heavy soil” option for miners to get the extra dirt out of their clothes.

While there is no such thing as the perfect location, working with a full-service manufacturer that has invested in resources and can provide the expertise to identify and navigate key strategies for success is important.

New investors should find manufacturers that can provide location demographic analysis and laundry room design services, which will help play an integral role in the success of a new Laundromat. n

Dan Bowe is the national sales manager of Speed Queen’s commercial division. He oversees regional sales managers, develops policies and procedures, cultivates distributor partnerships and participates in the development of new products and services. To learn more, call 800-590-8872 or visit speedqueen.com

A prime example of location choice is SuperWash Laundromat in Pearsall, Texas. Owner Sonia Trevino-Ornelas saw a business opportunity when the Eagle Ford Shale created an oil boom there.

Owner Deechen Horton knows that the versatility of the ESD payment system has attracted many new customers into her laundry. The ESD reports that track the card and coin income from each individual machine give her exactly the information she needs, and the reliability of the ESD LaundryLink® software is exceptional.

CASHLESS SYSTEMS

Coin MeChanisMs

he DebitKey System, from Coin Mechanisms, is a debit and credit cashless system designed to replace coins or tokens as a payment method. To date, the drycleaning and laundry industry remains the largest market for the DebitKey product, the company says.

The system is based on a plastic keyshaped carrier with an embedded chip card integrated circuit. Three levels of coded security ensure that only correctly designated keys can access a location’s equipment. The system also includes a key reader that can be packaged in various faceplates or enclosures; this reader may display information such as vend price or remaining key value. Key read-

ers are installed in each host machine, such as washers and dryers. Other attendant terminal devices, which require the presence of an attendant, also are available to check and add value to keys.

Data collection of all key activity can be accomplished on or offline. Handheld devices can collect data stored at each host machine using an infrared communication link, and the data can then downloaded to a PC using a USB interface. Online data collection is accomplished via Ethernet to a server.

coinmech.com 800-323-6498

esD

Three families of card slides, developed by ESD, are hightech solutions for Laundromat owners. The CrossLink CardSlides can be attached to an existing coin-operated washer or dryer, allowing the operator to accept both coins and credit cards on that machine.

Adding the CyberLaundry VTM to the CrossLink CardSlide opens up the possibility of using a proprietary store card, and makes available all of the promotional marketing features built into the system.

SmartLink CardSlides eliminate the need for coins, accepting credit cards, debit cards, store loyalty cards and smart cards.

All of these systems offer the operator the assurance that the store will remain operational even if the Internet were to go down, ESD says.

MyLaundryLink is the company’s Internet-based software that tracks all revenue, coin and card, in real time, from any computer or smartphone in the world. The smartphone app can be programmed to start machines and alert an operator when a cycle is finished. Many store owners have seen revenues increase by 25-30% after adding card acceptance features on

their machines, according to ESD. esdcard.com 800-523-1510

A WashCard systems

dditional promotional packages have been added to WashCard Systems’ card acceptance machines, and new features are designed to help Laundromat owners improve their customer service, the company says.

Some of the new features include spending rewards, which gives an additional incentive for

purchasing certain services; price specials, to allow operators to set up special pricing options for slow times to increase traffic; or value packages, which allow operators to set up a variety of specials on their store’s website and generate promotional codes to help draw in customers. washcard.com 888-439-5740

standard Change-makers

The enhanced EASYPAY™ is new in the world of Laundromat payment systems. Developed by a store owner, the system accepts all forms of payment, including coins, bills, loyalty cards, debit cards, EBT cards, mobile payments and credit cards, making it more convenient for the customer. An online accounting information component of the system streamlines the back-end management

for Laundromat owners. Developed by BBC Payments LLC and Standard ChangeMakers Inc., the enhanced EASYPAY™ system offers greater system reliability with hardwire installation, which means there are no expensive card readers, card swipes or additional LCD displays on the machines, the companies say.

standardchange.com 800-968-6955

he FasCard system is the latest creation from Card Concepts Inc., the creators of the LaundryCard system. FasCard provides a solution for store owners who want to accept coins along with credit and debit card, as well as take advantage of the various FasCard loyalty programs.

FasCard offers options such as allowing a Laundromat owner to choose the credit card merchant provider; providing remote access to all coin and card data via any web browser; supporting multilevel vending on all current capable equipment brands; and sending e-mail notifications to customers with end-of-cycle

information and to store owners with coin-box-full information. FasCard also provides wireless card readers with an integrated design; no external antennae or circuit boards helps for simple installation.

FasCard marketing programs work with both coin and card customers, providing bonus dollars, group/individual discounts, loyalty points, free dry time, and time-of-day pricing. The system also works with all smartphones to allow customers complete visibility of a loyalty account and the ability to start a machine if a card is lost or misplaced.

fascard.com 866-860-1660

IdX InC.

From IDX comes Wickets NTS™, which is powered by SCADAWash™, designed for both Laundromats and on-premise laundries. Owners are able to retain the use of coins when adding cashless equipment or switch totally to cashless, and can track data as well.

The system gathers data from all laundry equipment, such as washers, dryers, vending, heaters, door openings and other devices, and it can e-mail or text the store owner when an alarm condition occurs. Another major benefit is that the SCADAWash controller communicates wirelessly between each machine and device equipped with a WT-RAM™, IDX says.

SCADAWash stores and updates a customer database in real time every time the customer uses his or her Wicket card or credit card to activate machines connected to the system or uses a Wicket card for after-hours entry. For those operators with multiple locations, each location can be accessed remotely and all information downloaded to a central computer for record keeping.

Other features include the ability to remotely start a machine using the customer’s smartphone or tablet. Wickets NTS removes the need for cash, which increases security, IDX adds.

idxinc.com 800-643-1109

Setomatic SyStemS

pyderWash is a credit card and laundry management system from Setomatic Systems. The company’s readers are certified by VISA, MasterCard, American Express and Discover, and all are capable of accepting current magnetic stripe technology, near field communication phone payments, and RFID contactless card payments, the company says. So as payment technologies evolve, the investment a Laundromat owner makes will remain relevant.

In addition to the system’s processing capabilities, the SpyderWash

backend software allows owners a number of management and operating tools. From personalized loyalty cards and drop-off laundry management to comprehensive reporting and coin box monitoring, the system helps store owners operate more efficiently and profitably, Setomatic says.

The technology, coupled with the company’s blended processing rates, helps to take any guesswork out of the small-ticket (transactions under $15) credit card process, Setomatic says. setomaticsystems.com 516-752-8008

Rowe inteRnational

The Rowe Model 400 Rear Load bill changer has the exact same dimensions as the company’s Rowe BC-1200/1400 and offers two large-capacity coin hoppers holding up to 11,200 coins.

The changer offers improved customer service by recycling patrons’ $5 bills as change for $10 and $20 bills.

In addition to convenient features

like a user feedback display and audit report display, operators can select the PCI-compliant USA Technology ePort credit card reader, which accepts all major credit cards and dispenses tokens, while doubling as a back-up bill validator.

roweinternational.com 215-826-1400

Coin-Op Industry Trends:

What’s In the Forecast?

CLA exec offers projections during Clean Show confab

By Carlo Calma, Editorial Assistant

Where does the coin laundry industry stand, and what path will it take in the months and years to come?

Brian Wallace, president and CEO of the Coin Laundry Association (CLA), presented his organization’s insights and projections during a Clean Show educational session titled Current Trends in Laundry: 2013.

While many in the industry were impacted by the economic recession a few years ago, many owners felt a sense of overall confidence and security in the “recession-resistant” coin laundry industry, he says. “I think people came away with a renewed confidence, a confidence that [they’re] in the right business.”

And as the overall state of the nation’s

economy and consumer confidence rebounded, so did the industry, according to Wallace. “We’re coining the phrase, ‘The Laundry Confidence Index.’ I think it’s on the rise ... [coin laundry owners] withstood that tough hit of the economy [and they’re] feeling good about being in the laundry business.”

One encompassing indication of confidence Wallace highlights is that there are “more new stores going in.”

“Things are happening again,” he says. “People are making that investment in the business.”

DOUBLING DOWN

Many store owners have taken advantage of the down economy, purchasing property at relatively low prices.

“There’s been this window of opportunity where people have been able to pick up additional stores (and) make additional investments at prices that are still a bit depressed,” says Wallace. “While we still don’t have national chains or franchises, I think we’ve seen a significant increase in

the number of multiple-store owners.”

He calls this tactic a “consolidation from within,” which all goes back to the overall narrative of confidence felt by many in the industry. “Many (store owners) came back to me and said, ‘The best opportunity is right under my nose. It’s the laundry business; it’s the business that I’m already in.’ What I’m seeing is this doubling down on the laundry business. To me, that spells confidence.”

RISE IN REHABS, RE-EQUIPS

Another trend is a rise in rehabs and re-equips. According to Wallace, many store owners are turning to Laundromats that are “run down, poorly equipped (and) poorly managed” in their plans for multiple-store ownership.

“What I’ve seen happen amongst (coin laundry owners), especially some … with experience in the business, (is that they) have been able to determine which of those underperforming locations have the potential to do more business with reequipping.”

Image licensed by Ingram Publishing

Wallace

In some of these acquisitions, he says, not only are store owners able to turn a failing Laundromat around, they are also able to increase the size of the facility.

“It’s not just going from machines that don’t work to machines that do work, it’s going to the huge utility improvements. Many (store owners) that have taken this tack have been able to, essentially, build a bigger Laundromat within the same four walls (through) using bigger-capacity equipment.”

Indications of industry confidence are being shown not only by store owners but by manufacturers as well, according to Wallace.

“It’s not cheap to do what they’re doing. They’re spending … tens of millions of dollars, not only in the (research and development) and the innovation and improving, but retooling to manufacture (equipment).

“If anything else, it’s a sign of a stronger industry, at least in the expectation that the industry will continue to grow and improve, and I think that is a good opportunity for everybody.”

LARGER CAPACITIES

The trend of owners equipping their stores with larger-capacity machines (50 pounds and larger) coincides with what coin laundry customers are looking for, according to Wallace.

“Customers are looking for the largercapacity equipment. You are getting the highest vend prices … out of those machines, and you ought to have the lowest cost of operation out of those larger machines, so it’s sort of a win-win situation.”

ALTERNATIVE PAYMENT

Installing larger-capacity machines is not the only trend store owners are flocking toward when it comes to equipment, as many are seeking out ways in which they can provide alternative payment systems to customers, according to Wallace.

“It’s a fancy way of saying (store owners) are getting off the quarter or, I should say, getting off the quarter as the only form of payment,” he says.

The move not only further provides convenience to customers who prefer to use alternative forms of payment, such as credit cards or tokens, it streamlines the bookkeeping process for store owners.

“Many (store owners) are getting more and more sophisticated with respect to wanting to get the management data that comes out of these systems to be able to

sewer rates from 2010 to 2012.

Requesting a water evaporation allowance, adjusting vend prices, focusing on preventive maintenance and repairs, and continuing to invest in efficient equipment are among Wallace’s tips to save money.

EMERGING SALES TAX THREATS

One other issue the industry faces, according to Wallace, is emerging sales tax threats. “You’ve got many states that are looking to remove the sales tax exemptions as a way to plug state-level budget deficits,” he says, explaining that Laundromats are exempt from collecting and paying such taxes.

really understand what’s going on in the business, and that vend price flexibility,” says Wallace.

UTILITY COSTS

Wallace also touched on utility costs concerns, which he says remains the biggest problem. Many laundry owners are struggling with rising natural gas and electricity prices. He assures, however, that the trend of switching to efficient equipment could soften the blow.

In fact, in his observations, “new or re-equipped stores are routinely achieving expense ratios of 15% to 20%, or less.”

Also increasing are water and sewer rates, according to Wallace, who cited an American Water Works Association report that indicates there were average increases of 13.7% in water rates and 15.0% in

“You need to understand why we’re exempt,” he says. “It’s tough to collect … we’re providing a basic public health service to the neighborhood and we’re providing it to the lowest-income members of the community.”

Get to know your local legislators, he advises.

“Yes, you need to pay the money for lobbyists, but you need to add to that the fact you need to know your legislators. You don’t have to be a big contributor … just introduce yourself, make sure they know what business you’re in. It goes a long way.”

Despite the challenges that the industry will face in the future, Wallace remains optimistic about the state of coin laundries.

“We talk a lot about the old days (but) I think with the quality of operators … the efficiency, the equipment, the technology that’s been infused into our business, I clearly think that the best days of the industry are ahead of us.”

Stay Out of Court WaysDozento A

By Fred S. Steingold

Trials look like fun on TV and in the movies, but don’t believe it. It’s one thing to be an unaffected spectator, but quite another to be an active participant in a legal battle.

For one thing, juries are unpredictable. If your coin laundry business gets sued, it may be socked with a huge verdict. In addition, because of the time, energy and money it takes to defend a case, even if you win, you lose.

And plaintiffs often fare as badly as defendants. Either side in a lawsuit can look forward to long sessions in a lawyer’s office. Pre-trial discovery—the process that lawyers use to learn about the opponent’s case—will gobble up additional hours, and you’ll probably need to answer lengthy written questions and be cross-examined at

a deposition.

Even if the case gets settled before trial, your bank account will feel the strain. Perhaps worst of all, you’ll be surprisingly distracted from your normal business duties.

It’s smart to stay out of court. True, it’s not possible to avoid all lawsuits. But with a bit of planning, your business can come close. Here is a 12-point strategy that can help.

1. WATCH WHAT YOU SAY

If you make negative statements about an employee or customer, you can be sued for libel or slander, or even invasion of privacy or intentional infliction of mental distress. If you badmouth another business, you can be sued for defamation or interference with

business relationships.

Words have consequences. Before you speak ill of someone, be certain you have facts to back you up—and a good reason for passing along the bad news. When in doubt, clam up.

2. PUT IT IN WRITING

Business deals often wind up in court because parties proceeded on only a handshake. It’s far better to summarize your deal in a written contract or letter so everyone is clear about the terms.

This can help even if you and the other party know each other well and trust one another. People who act in good faith can still have poor memories. The task of writing down an agreement forces both people to think through the issues and to resolve

(Image licensed by Ingram Publishing)

differences before they become a problem. Don’t assume that you and the other person see things the same way.

3. DO A SAFETY CHECK

Lawsuits by people who have been injured at someone’s store, office or workshop are common. Even if you have a ton of insurance, you shouldn’t ignore hazardous conditions. The insurance will pay the injured person’s claim—up to the policy limits—but won’t compensate you for your time and effort in helping defend against the claim.

Check periodically for dangers in your coin laundry. Visitors can slip and fall on a wet floor or trip over a cord. Poor lighting can increase the risk of an injury. Your insurance company can recommend a safety checklist for your business.

of collection to the charge card company.

6. THINK TWICE BEFORE FIGHTING UNEMPLOYMENT CLAIMS

Most employers hate to see an exemployee file for unemployment benefits, so their first impulse is to fight the claim. Resist that impulse.

The unemployment laws strongly favor employees, so usually it’s a big waste of time to fight the claim. Besides, battling the ex-employee may increase the bitterness of a job loss and nudge the former worker into suing you for wrongful discharge. Use discretion. Fight claims only if you have a very good chance of winning; even then, it may not be worth it.

7. CHECK OUT LAND USE REGULATIONS

A zoning ordinance states what kind of

sive litigation has involved an employee’s claims that he or she was unjustly fired. Don’t promise job security unless you intend to follow through.

And give employees ample notice if their performance is slipping and their jobs are in jeopardy. A firing shouldn’t come as a surprise. If you document your warnings in an employee’s file, you greatly reduce the risk of being sued. To avoid discrimination charges, enforce your rules equally.

10. CHOOSE YOUR BUSINESS NAME CAREFULLY

Check business names in your county and state to make sure some other business didn’t get there first.

If the name has special value, or you’re planning to do business in more than one state, it pays to have a national name search made. You don’t want to have to go to court to defend your business name.

11. CONSIDER ALTERNATIVE DISPUTE RESOLUTION

Check

for dangers

4. READ THE LEASE

Make sure all the terms are clear before you sign it.

You don’t want to litigate with your landlord about whether you can expand your product line or the services you offer. And questions about the rental rate if you renew your lease, or who pays for replacing the water heater, should be ironed out in the lease—not in a courtroom.

5. USE CARE IN COLLECTING DEBTS

Laws protecting consumers contain pitfalls for the unwary business. Push too hard for payment from a slow-paying customer and you can wind up as a defendant in a lawsuit.

Avoid early-morning or late-night calls, and don’t discuss the debt with the customer’s employer. If the debtor has a lawyer, deal through the lawyer. A simple way to steer clear of collection problems is to not extend credit at all but accept charge cards instead. It costs a bit, but shifts the burden

business you can conduct at a given location. If you violate the ordinance, the city can take you to court to close you down.

There are also private rules known as deed restrictions or conditions, covenants and restrictions. These allow neighboring property owners to take you to court for violations. Make sure your business complies with these public and private regulations.

8. PLAN FOR THE BUSINESS DIVORCE

The break-up of a relationship with a co-owner can be as devastating and costly as the break-up of a marriage.

You and the co-owners of your coin laundry business should have a written agreement saying what happens if you can no longer agree on how to run the business—or if one of you dies or wants to sell out.

9. UPDATE YOUR EMPLOYMENT PRACTICES

In recent years, some of the most expen-

Think about putting an arbitration clause in all contracts. Arbitration is usually quicker and less expensive than litigation for resolving business disputes.

If you don’t have an arbitration clause in a contract, you and the other party can always agree to arbitration after the dispute arises. Mediation, too, can help. Although mediation isn’t binding on either party, an experienced mediator can usually settle a dispute.

12. GET PREVENTIVE LEGAL ADVICE

It’s less expensive to get legal advice before a problem arises than afterward. Keep your lawyer informed of your business plans and seek advice if you think you’re getting into a sensitive area. Educate yourself on legal issues by taking a course at a community college or by checking out a book or two at your local library. Scan the newspaper for trends in business law. n

Legal strategies may vary depending on the state in which you live and the specifics of your situation. See your lawyer for legal advice.

Leading a PurPosefuL Life

Everything I’ve written over the years has suggested ways or strategies to improve your Laundromat business. What I’m really talking about in this column, month after month, is living a purposeful life. A purposeful life. I like the phrase. It evokes motivation, striving, a desire for a better life, ambition. All the characteristics that are positive aspects of the American psychology.

In your case, you are running a business. You want it to be the best business it can be. You want it to run smoothly. You want 100 customers to come in every day and leave pleased. You want your staffers to arrive ready for another day’s challenges. You want your community to know your store and to think of it as an integral town resource.

So, you attend to business, day after day. You respond to all e-mails, because you believe a good owner is accessible. You’re always doing research, because you know that good decisions come from doing your homework. You’re attentive to detail, because you know that success or failure can be found there.

You solve customer problems right away because you know that bad word of mouth loses accounts. You pay your bills on time because you know that having good credit is necessary, should you decide to expand. Even more importantly, it makes you a good person in the industry. You are on time for appointments, because others depend on your promptness.

You do all this willingly, even though it exacts a

Howard Scott

AN OUTSIDER’S VIEW

personal toll, in stress, in pressure, in time away from family and personal interests, because you are purposeful.

At Its CeNter

The core of the purposeful life is confidence and enthusiasm.

Confidence is the belief in yourself, that you can rise to the challenge, and that your effort will pay off. It’s an invisible force of knowing yourself, your limits, your abilities, and your level of stress. Confidence is situational. You wouldn’t be confident

in a hospital surgery theater facing a heart transplant patient, but you are confident in a Laundromat, because that is your livelihood.

Enthusiasm is the energy and appetite for work. You are enthusiastic because you have chosen this field, and you know you can make a living at it. Also, you know that, minus enthusiasm, you don’t have much of an appetite for challenge. So you keep kindling this enthusiasm, revving up for the daily challenge. You keep yourself focused, motivated, and driven to improve.

mOre tHAN bUsINess

The purposeful life is more than just the business. It’s your entire life. You strive to make your family comfortable. You and your spouse are partners in life, and so you work hard to maintain a solid relationship. Children are extensions of their parents, and so you try to strike a balance between understanding them and prodding them to do their best.

You also are a body, and if you eat too much, avoid exercise or take up bad habits, the body will become an albatross rather than an integral part of your being. So you must take care of yourself, toning your body with exercise, feeding it a balanced diet, and living a life of moderation.

You also must take care of your soul. Nourish it. Work hard, and play hard. Keep it in balance. Whatever your passion—theater, symphony, concerts, cooking, model-making, jogging, mountain climbing, acting, poker-playing, socializing—carve out time for these activities.

Take a part in a play. Bowl on Wednesday nights. Attend a breakfast date with old friends every other Friday. Set aside an hour for reading every night. Go to hear musicians play on Saturday night. Attend church on Sunday morning. Have a family dinner on Sunday afternoon. All this diverse activity goes into feeding the purposeful life.

GIVe YOUrSeLF A breAK

What happens if your life doesn’t feel purposeful? If you don’t have the energy, ambition and motivation to take on the daily battles? In other words, what if you lose it? Yes, it happens to all of us.

Spend a full day in bed. Give yourself that break. Indulge yourself. The next morning, rise to attend to business and don’t look back. In other words, you have that day to feel sorry for yourself for whatever reason: business isn’t going as well as it should, the second-in-command must be replaced, a large account has just left, the

spouse isn’t being friendly, the children seem to dwell in worlds of their own. The next day, wake up determined to solve each situation.

One key is to tell yourself stories. Stories are what feed our purposefulness. I’m doing the best you can. These are tough business times. I’ve worked out of the doldrums before. Use these slogans to refresh your spirit.

One of my business acquaintances says, when he gets down, “It’s only life.” That sentiment gets him to realize that what is going on isn’t important, but his life is. Another friend uses the phrase, “This too shall pass,” and that is what gets him back on track.

Still another individual I know writes down on paper the names of three people he knows, and underneath, he states their situations. One must take care of his wife who has Alzheimer’s. Another has been coping with several bouts of brain cancer. A third has such a severe drinking problem

that he’s lost his family and career. My friend reasons his burden is nothing compared to the burdens of these people, so he won’t complain.

Whatever it takes. Give yourself one day to feel sorry for yourself, and then push on with renewed vigor. If the vigor isn’t there, go through the motions until it returns. The British have a different way of saying the same thing: Have a stiff upper lip. In other words, just do it.

The purposeful life is not abstract concept. It’s a concrete way to live. It’s the way to achieve your goals and get over your disappointments. Finally, it’s the way to build a successful Laundromat business. n

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

To read more Howard Scott columns, visit AmericanCoinOp.com

all brings calendar full of open houses, service schools

The arrival of fall can only mean one thing for self-service laundry operators—a calendar full of opportunities to attend distributor special events, open houses and service schools.

Here is a brief rundown of events from the American Coin-Op calendar through early October — call or visit the website listed for registration information. In many cases, space is limited.

Sept. 6 — J.H. Stuckey Distributing Trade Show, Omaha, Neb.; 800-405-8455, stuckey distributing.com.

Sept. 7 — Golden State Laundry Systems Fall Sale & Golf Clinic, Rancho Dominguez, Calif.; 800-465-8300, gsls4laundry.com

Sept. 11 — D&M Equipment Co. Open House & Service School, Skokie, Ill.; 800-4512676, dandmequipment.com

Sept. 14 — PWS Open House, South San Francisco, Calif.; 650-871-0300, pwslaundry. com.

Sept. 17 — Statewide Laundry Equipment

Open House, Riverview, Fla.; 800-282-9023, statewideusa.com

Sept. 18 — Statewide Laundry Equipment Open House, Altamonte Springs, Fla.; 800-4250941, statewideusa.com

Sept. 18 — ProTech Open House, Houston, Texas; 713-797-9000.

Sept. 18-19 — Gold Coin Laundry Equipment Founder’s Day Event, Jamaica, N.Y.; 888-411-0944, goldcoinlaundry.com

Sept. 20-21 — Professional Laundry Systems Open House, Feasterville, Pa.; 215-354-0111, plslaundry.com.

Sept. 20 — PWS Open House, San Diego; 858-560-6969, pwslaundry.com

Sept. 21 — CESCO Open House & New Product Show, SeaTac, Wash.; 206-824-9055, cescoweb.net

Sept. 21 — Statewide Laundry Equipment Open House, Hialeah, Fla.; 305-624-5169, statewideusa.com.

Sept. 22 — CESCO Wascomat Show, Portland, Ore.; 206-824-9055, cescoweb.net

Sept. 24 — AC Power Co. New Equipment Launch Open House, Trevose, Pa.; 800-3621900, acpowerco.com.

Sept. 25 — Garment Machinery Open House, Dedham, Mass.; 866-971-1010, garmentmachinery.com

Sept. 26 — Uniwasher Open House & New

Product Show, Hialeah, Fla.; 866-971-1010, uniwasher.com

Sept. 26 — Coin-O-Matic Equipment Open House, Alsip, Ill.; 708-371-9595, coinomatic. com

Sept. 28 — Sterling Equipment Sales Open House, Stanton, Calif.; 800-552-7967, sterlingequipmentco.com.

Oct. 1 — Star Distributing Open House, Nashville, Tenn.; 800-897-7570, star distributing.com

Oct. 3 — Dexter Service School/Western State Design, Fresno, Calif.; 800-633-7153, ext. 301, westernstatedesign.com

Oct. 4 — Dexter Service School/Western State Design, Hayward, Calif.; 800-633-7153, ext. 301, westernstatedesign.com.

Oct. 4-5 — Western State Design Open House, Hayward, Calif.; 800-633-7153, ext. 301, westernstatedesign.com

Oct. 5 — Taylor Houseman Open House, Pittsburg, Calif.; 800-464-6866, taylor houseman.com

Oct. 8 — SAMCO Open House, Fayetteville, Ga.; 404-344-9344, southernautomatic.com

Oct. 12 — Texas Laundry Service Co. Open House, Pasadena, Texas; 713-472-4083, txlaundry.com

Check the AmericanCoinOp.com calendar periodically for updates/additions. ■

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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.

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ADC Honors HerCules Corp. witH first MArtin slutsky AwArD ADC (American Dryer Corp.) hosted a customer appreciation party in New Orleans the night before the show opened. During the festivities, CEO Joe Bazzinotti presented his company’s first ever Martin Slutsky Award to Hercules Corp.

Hercules is the largest family-owned laundry room outsource provider in the country, ADC says, and has been a leader in the New York, New Jersey, Connecticut and Pennsylvania multihousing markets for more than 50 years.

The high honor was designed to pay homage to ADC founder Martin Slutsky. ADC continues to build upon his philosophy by offering products and services that invest in new technology, seamless design, and innovative capabilities.

Gilbert (2011) and Kenny Wells (2012); Distinguished Service Award: Bill Gilbert, Greg Tompkins, Beverly Blank, Karl Keefer, Dick LaMaina and Ralph Daniels; Leadership Award: Josh Prager, Duane King, Art Jaeger and Jeff Gardner; Member of the Year: Brian Brunckhorst; Outstanding Director: Jeffrey Barman; and the Richard H. Torp Excellence in Education Award: Stephen Bean.

ContinentAl reveAls 2012 Distributor of tHe yeAr AwArDs Fowler Equipment Co., Bloomfield, N.J., recently received Continental Girbau’s 2012 Vended Laundry Distributor of the Year award, and Coronet Equipment, Edmonton, Alberta, received Continental’s Canadian Distributor of the Year award for outstanding sales and distribution in both the vended and onpremise laundry markets.

Fowler, established in 1952, is among the largest on-premise, vended and multi-housing laundry equipment distributors in the Mid-Atlantic region.

ClA presents reeD witH founDer’s AwArD The Coin Laundry Association (CLA) applauded industry leaders during its 2013 Annual Meeting recently in New Orleans, presenting the prestigious Founder’s Award, Affiliate of the Year, and other honors. In all, 16 industry leaders were recognized for “their pursuit of excellence and tireless commitment to improving the laundry industry.”

Bill Reed, who CLA says logged more than four decades of selfless service to others and the industry, received the Founder’s Award.

“This award is reserved for individuals who are true pioneers in the business and are directly responsible for the ongoing growth of the coin laundry industry and the Coin Laundry Association,” explains Brian Wallace, CLA president/CEO. “Bill Reed embodies all that the Founder’s Award is designed to recognize, and we are very grateful to all he has done for the industry and the Association.”

The other highly anticipated award, Affiliate of the Year, went to Golden State CLA in Northern California. It was the fourth time the group has received the award.

Other CLA award winners were: Chairman’s Award: Bill

A service-based organization, Coronet handles Continental on-premise and coin laundry equipment distribution in Western Canada and the Northern Canadian territories.

western stAte Design pleDges portion of Dexter sAles to CHArity Distributor Western State Design has pledged to donate $1 per pound of rated capacity for all Dexter Laundry coin-op washers and dryers that it sells through year’s end to a charity benefiting Armed Forces veterans and their families.

The donations will be given to the Intrepid Fallen Heroes Fund, which has provided close to $150 million in support of families of military personnel lost in service, and for severely wounded military personnel and veterans, since being created in 2000.

“We are very supportive of our veterans who have sacrificed so much in service to our nation,” says Western State Design President Dennis W. Mack, whose company started the campaign at the Clean Show. “This year, we have decided to support the Intrepid Fallen Heroes Fund, and we are pleased to learn that their most recent effort is a new treatment center

for traumatic brain injuries, which has affected many veterans.”

The 2013 Martin Slutsky Award presentation: (from left) Tony Regan, senior vice president, global sales, ADC; Paul Finkelstein, vice president of operations, Hercules Corporation; Stacey Hodges, vice president, employee/customer relations, ADC; Joe Bazzinotti, CEO, ADC; and Adam May, project manager, Hercules Corp.

Bill Reed (center) receives the CLA Founder’s Award for lifetime achievement from (left) CLA 2012 Chair Kenny Wells and (right) CLA President/CEO Brian Wallace.

The closer you look at Maytag® equipment, the more resourceful thinking you’ll see. Take the innovative TurboWash™ System, for instance, which allows our MFR30 washer to deliver impressive cleaning power—along with the potential to cut your water use by over 60%.* Add to that extra-large capacity that helps you turn more profits per load, plus our 5-year warranty** on every single part. Visit mclaundry.com for digital brochures, or for more information, visit our website at maytagcommerciallaundry.com or call 800-662-3587. *Average savings by using super cycle, compared to previous Maytag MFR washers; actual savings varies by model. **Visit maytagcommerciallaundry.com for warranty details.