American Coin-Op - May 2016

COIN-OP 101: LEVERAGING A FINANCE PARTNER TO ACHIEVE THE ROI YOU’RE LOOKING FOR

Opening a Laundromat business requires some capital funds, but it doesn’t mean you have to use your life savings to front an all-cash investment, writes Speed Queen’s Jeff Harvey. Leveraging the right financial partner can stretch your dollar far beyond what you could get if you were to invest all necessary funds yourself.

HOW TO HANDLE YOUR TOUGHEST EMPLOYEE PROBLEM

As difficult as the task may be, fiscal reality sometimes makes employee layoffs or firings unavoidable. When your payroll costs climb to unacceptable levels, or when an individual employee’s performance is unacceptable, it’s best to take appropriate action. William J. Lynott interviewed several human resources experts for tips on how to handle your toughest employee problem.

COLUMNS 36 SALES ARE UP, PROFITS ARE DOWN — BUT WHY?

Profits are more than an accounting entry in a ledger, writes columnist Howard Scott, they are a statement of performance. If profits are down, it means you did not do as well as last year. If sales were up, but profits are down, that’s a serious call of alarm.

A CLOSER LOOK 22

It’s a dreadful chore, but almost every business owner must face the disagreeable task of terminating a worker.

DRYER D.I.Y.

It’s your dryers that customers use last and perhaps remember best, for better or worse. How much dryer maintenance should you do yourself and how much should you leave to the pros? We asked reps from the dryer manufacturers to weigh in.

(Cover Image: ©iStockphoto/Stephanie Horrocks)

Beggs

Aside from faithfully cleaning out the lint tray in our home dryer every time I use it, I’ve not concerned myself with the machine’s regular maintenance. But our dryer isn’t in use for hours at a time, day after day.

For self-service laundry owners like you, maintenance is a big deal. After all, your business success could be tied directly to the availability and performance of your equipment. And it’s the dryers that customers use last, and perhaps remember best.

But where dryer maintenance is concerned, what should you be doing, and should you be handling all of it? I asked those questions and more of representatives from several of our industry’s dryer manufacturers.

You should feel confident about being able to perform certain tasks on your own, but there are others that, if handled improperly, could cause equipment damage or even personal injury, say the experts. Check out Dryer D.I.Y. beginning on page 7.

ATTENDING TO A DISAGREEABLE TASK

If you employ anyone in the operation of your self-service laundry, the likelihood is great that someday you’ll have to eliminate their position or even fire them. It can be a difficult task, one that you may put off until the financial consequences place enormous pressure on your bottom line. And you certainly don’t want to create a situation in which a disgruntled employee could harm your business by suing you or filing a complaint with labor authorities. By following some basic steps, many problems can be avoided. Turn to page 22 for these tips on How to Handle Your Toughest Employee Problem.

EXCELLENCE IN LAUNDRY

I’ll be traveling to sunny Ojai, Calif., mid-month to cover the Coin Laundry Association’s Excellence in Laundry Conference. If you’ll be attending this exclusive event, I look forward to meeting you and getting your take on the industry and its future.

Bruce Beggs Editorial Director

EDITORIAL

Charles Thompson,

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

Bruce Beggs, Editorial

E-mail: bbeggs@ATMags.com Phone: 312-361-1683

Nathan

E-mail: nfrerichs@ATMags.com

Phone: 312-361-1681

Kurt

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

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American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $46.00; 2 years $92.00. Foreign, 1 year $109.00; 2 years $218.00. Single copies $9.00 for U.S., $18.00 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 57, number 5. 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. The publisher reserves the right to reject any advertising for any reason.

© Copyright AMERICAN TRADE MAGAZINES LLC, 2016. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

Bruce

DRYER D IY

Have faith in own maintenance abilities, but don’t be afraid to ask pros for help

By Bruce Beggs, Editorial Director

The success of a self-service laundry can be based on the availability and performance of its equipment. While washers and dryers can be considered “equals,” it’s the dryers that customers use last and perhaps remember best, for better or worse. Therefore, maintaining your dryers is of great importance. But just how much should you do yourself and how much should you leave to the pros?

American Coin-Op invited representatives from the industry’s dryer manufacturers to answer some questions to tell us what the average store owner should maintain themselves and where to draw the line.

Q: What aspects of dryer maintenance should a store owner or attendant with a fundamental knowledge of dryer operation feel confident about performing themselves, and what should they leave to the experts?

Mike Besaw, director of technical services, Alliance Laundry Systems, for Huebsch: Dryer maintenance is mostly about keeping the unit clean from excessive lint buildup on the filters, coin drop or card reader, fans and burner tubes (gas heat), as well as checking for foreign objects or melted material. All of these tasks can be completed by store owners or attendants. The annual maintenance of removing panels to clean inside the unit depends on the owner’s comfort level. While not difficult, it does require that the unit be disconnected from electrical power and the gas/ steam needs to be shut off in order for this service to be completed.

Chris Brick, product and brand training manager, Maytag® Commercial Laundry and American Dryer: Basic equipment maintenance is relatively easy and can help to prevent bigger service issues down the road. However, receiving training from a distributor before performing complex maintenance, such as changing a dryer

basket, is highly suggested. This helps to ensure that appropriate techniques, tools and supplies are incorporated into the process properly. A couple quick reminders: It’s imperative to always turn off a machine’s power before beginning maintenance, and know when to call the experts if a job is too big.

Aaron Burningham, laundry sales and service consultant, Evans Commercial Laundry Equipment, a Speed Queen distributor: With the proper training from a distributor, Laundromat owners should feel confident enough to handle most general maintenance needs for dryers, including inspecting the inside and outside of the dryer for damage or objects that can impede the operation of the dryer; removing front panel and lint door/screen assemblies to clean; and checking thermostats. Laundromat owners should also remove lint and other debris from inside tumblers and exhaust ducts, as well as perform basic

(Photo: © iStockphoto/Stephanie Horrocks)

As a multi-store owner in Kentucky, Joe Dan Reed knows and tumble dryers to reduce utility costs and increase in-house, industry-leading financing offers support increased cash flow. See how Speed Queen Financial

troubleshooting from belt replacements that are too loose or damaged, and make cylinder adjustments.

A Laundromat owner should contact a servicing company when the owner feels the necessary repairs are above his/her ability or when it concerns the utilities (gas, electric, steam). We strongly encourage our customers to get to know their equipment as well as possible because it helps them recognize any problems should they arise.

Gary Clark, product performance and training manager, Continental Girbau: An attendant or owner should be able to carry out almost all of the required dryer preventive maintenance. Some attendants and owners are even capable of performing some parts replacements. We find that most struggle with troubleshooting electrical problems, even though most want to try. The majority of store owners and attendants will want to leave electrical work to the authorized technical service experts.

Russ Cooper, manager of technical service, Dexter Laundry: Dryers tend to be much simpler than washers. The majority of the maintenance necessary simply involves removing lint from various compartments and components.

Without removing any service panels, any attendant with a vacuum can clear lint from the lint screens, the internal lint tray area, as well as all exposed areas on the back of the dryer. Beyond this, most any other lint removal can be accomplished by removing easy-to-access covers on the rear of the dryer. Belt replacement, pulley greasing and bolt tension checks are also easy to perform and, in many cases, are described in detail on many manufacturers’ websites, even in video format.

As far as maintenance I would leave for the pros, full ductwork clean-out from the dryer to the exhaust on the roof or back wall is a larger job that requires some amount of specialty equipment.

Q: Can you break down the primary dryer maintenance tasks that a business-minded store owner can perform and how often they should be done?

Jay Klemm, product manager, Alliance Laundry Systems, for Primus: The tumbler manual provides an overview of the regular maintenance needs that should

Q A& DRYER D.I.Y.

be performed daily, monthly, quarterly, biannually and annually. Important daily maintenance needs include:

• Inspecting the area surrounding tumble dryers and removing all combustible materials, including lint, before operating the machines.

• Checking the cylinder for foreign objects to avoid damage to clothing and equipment.

• Cleaning lint from the lint compartment and screen to maintain proper airflow and avoid overheating.

• Cleaning the machines top, front and side panels with mild detergent and rinsing with water at the end of each day.

Brick: On a daily basis, it’s important to clean the front of machines, as well as the floors and walls surrounding dryers in order to reduce dust and lint buildup. In addition, owners should check dryer baskets for nails, screws and other objects that could damage the dryer, and make sure the lint compartment is clean periodically throughout the day.

Vacuuming the inner dryer cabinet to reduce lint buildup, and ensuring lint is not collecting on temperature probes, should be performed on a monthly basis.

Finally, owners should clean dryer exhaust ducts once a year.

Clark: Continental Girbau’s preventive maintenance schedule for dryers includes the following:

• Daily — Clean and check lint filter; check cylinder for objects.

• Monthly — Check airflow device; clean motor of lint; clean burner compartment of lint; clean lint filter compartment; oil door hinges; and clean exhaust duct.

• Quarterly — Check belts for wear and fraying; check door glass seal for wear; tighten all screws and bolts; check main shaft for tightness; and clean air ports on burners.

• Biannually — Remove and clean burners; remove and clean all orifices; remove front panel and coin drop and clean of all lint buildup; check electrical connections; check gas connec-

tions; and inspect drum seals and inner panels for wear or damage.

Burningham: Daily, you should inspect the dryers for damage and obstructions, clean lint screens and filters for proper maintenance and airflow, and wipe down and clean dryers for clean and neat appearance.

Each month, check and clean exhaust venting as needed (including any dampeners and louvers, which can be cleaned with a vacuum); check for any buildup on thermostats (cycle thermostat, high limit, thermistors) and carefully clean to avoid excess buildup that may cause overheating issues; and check and clean all blower fan assemblies for any buildup on fan blades that will cause excessive vibration and lack of airflow.

Each quarter, check and inspect drive belts and cylinder belts, and replace as needed; check and clean air vents on motors with a vacuum; and check the overall flow of exhaust and fresh air make-up.

Twice annually, check all gas lines for leakage; check electrical connections for tightness, including any machines that use plug-in receptacles (inspect for any black markings on plugs); check any steam connection, if applicable, for leaks and clean coils; remove and clean burner tube assemblies to ensure proper flame and that the machine is being efficiently utilized; and remove front panel and service panels to vacuum lint from the front cylinder compartment as well as coin drop assembly.

Cooper: Clean the lint screen and check it for tears daily, plus clean excess lint from the lint screen compartment. On a monthly basis, remove lint accumulation from the end belts of the motor, and remove lint and dirt accumulation from the top of the dryer and all areas above, below and around the burners and burner housing.

Each quarter, check belts for looseness, wear or fraying; inspect the gasket of the door glass for excessive wear; and remove lint accumulation from the primary air ports in the burners.

Semiannually, remove and clean the main burner tubes; apply a few drops of oil to each spacer tube on the tension arm assembly; and grease the pivot pins and the tension arms where in contact with each other.

Annually, check the intermediate pulley bearings for wear; check the tightness of the tumbler shaft retaining bolt; check and remove any lint accumulation from the ▼

exhaust system; remove the front panel and the lint screen housing and remove lint accumulation; place a few drops of light oil on the door hinge; and grease the bearings and the shaft of the intermediate drive pulley.

Besaw: Yes, the Preventative Maintenance Guide provides a detailed overview and checklist of the dryer maintenance tasks that should be completed on a daily, monthly, quarterly, biannual and annual basis.

The important daily maintenance tasks include inspecting the area surrounding tumble dryers and removing all combustible materials, including lint, before operating the machines; checking the cylinder for foreign objects to avoid damage to clothing and equipment; cleaning lint from lint compartment and screen(s) to maintain proper airflow and avoid overheating; and cleaning the machines at the end of the day (you can use mild detergent to clean the machine’s exposed panels and rinse with clean water).

Q: Do the energy characteristics of a dryer — whether gas, steam or electric — impact the machine’s maintenance? If so, how?

Burningham: There is a varying degree of maintenance needs depending on the machine’s heat source:

• Gas — Needs to have sufficient gas supply, unobstructed burner tubes and airflow.

• Electric — Needs proper voltage with clean heating elements to prevent fires, along with proper exhaust airflow.

• Steam — Needs adequate steam pressure with working return. The valves need to be checked to ensure there is good exhaust airflow.

Cooper: The basics stay the same, but generally steam and electric dryers require more attention to the actual heating coils and the removal of lint from them.

Clark: It does not affect the preventive maintenance of most dryers.

Brick: The basic maintenance required for gas, steam and electric dryers is the same; however, unique service requirements may differ for the different energy sources. For example, a gas dryer may occasionally require service on igniters, glow bars or the gas valve itself, while a steam dryer may require additional service work on the steam coil or steam line.

Q A& DRYER

D.I.Y.

Klemm: Many vended stores in North America utilize gas due to the necessity and expense of having electricity or steam; however, there are no differences in the maintenance needs between the three.

Besaw: While the heat type may vary, the major preventative maintenance tasks for all remain the same. Plugged lint filters, venting or make-up air vents will reduce the efficiency of the dryer. If an owner has steam-equipped machines, additional return steam-trap preventative maintenance is required to ensure the condensate drains properly from the steam coils; improper drainage can cause steam hammer and shorten the life of the steam heating coils.

Q: When a store owner or attendant is doing their own maintenance, is there danger of them doing something that could void a machine’s warranty?

Cooper: As long as they are not modifying the equipment in any way, we have no concerns of owners doing something that we would consider a breach of the warranty. Only good things can come of maintaining your equipment. By maintaining your equipment, you can expect better efficiency, longer life, fewer breakdowns and less expensive repairs when they do occur and, of course, happy customers!

Besaw: The typical preventative maintenance can be completed by most store owners, but care should be taken when vacuuming or removing controls so that components are not damaged during the cleaning process. The manufacturer’s warranty covers defects in material or workmanship, but not parts damaged when performing preventative maintenance.

Brick: A store owner should always read the manufacturer’s Use and Care guide before performing a maintenance service. Every manufacturer enforces warranties differently, so it’s important to be aware of the specifics.

Clark: Almost all aspects of maintenance shouldn’t impact the warranty. Things that can impact a warranty:

• Parts are replaced that aren’t bad

• Parts are not from the equipment manufacturer (aftermarket or are another brand)

• Parts are installed incorrectly

Always refer to your manufacturer’s warranty bond for specifics regarding warranty. I recommend leaving part replacement to an authorized technical service person (distributors only).

Burningham: Yes. By not using genuine factory replacement parts, you can void the specific part warranty, and if using the incorrect part, you can cause further machine damage or fire resulting in machine loss and possible injury.

Q: What is the biggest mistake that a store owner or attendant can commit when trying to maintain equipment on their own?

Clark: Most owners and attendants try and do more than what they are capable of, especially when it comes to electrical testing. They do not realize that if they make the slightest mistake, it can harm or even kill them. They will tend to do more damage, which will end up costing them more than a good authorized technical service professional will charge them to do things correctly.

Burningham: The biggest mistake one can make is not using genuine factory parts, as well as doing repairs that he/she does not feel comfortable performing because the owner feels that having a service technician out is too costly.

Cooper: Not paying attention to how things came apart or not putting things back together correctly. I always recommend that you use your smartphone to take pictures as you disassemble so that if you have any questions during reassembly, you have that reference to look back on.

Brick: The biggest mistake commonly made is not performing regular maintenance. Mistakes can also occur when a store owner or attendant is not equipped to make minor repairs, or are not mechanically inclined to detect small issues on machines. Incidents like these can potentially turn into a major expense if not addressed in a timely manner.

Besaw: One of the best tips for store owners is to use OEM parts. While many “knock-off” parts are available and at first glance appear to be the same quality

WATER.

It makes up 60 percent of our bodies and 71 percent of the earth’s surface. We drink it. We clean with it. We play in it. Water is everywhere. Yet, in this business, it’s a precious commodity. A costly expense. That’s why we’re here to help you use less of it — up to 15% less, in fact. Actually, we’re here to help you lower all your utilities. After all, that’s what innovation is for.

Introducing Primus® laundry equipment. It seems odd to “introduce” a brand that’s been leading laundry innovation for over a century, but we’re excited to finally bring 100 years of European ingenuity to North America. Everything we do is done for a specific purpose. Utility costs are one of your business’s biggest challenges, so we designed a more efficient softmount washer-extractor that reduces water consumption by 15%* and energy consumption by up to 20%.* Innovation with purpose. You’ll be seeing a lot more of that around here. Learn more at PrimusLaundry.com/water.

*Comparison based on replacement of the Primus FS softmount washer-extractor with the Primus FX softmount washer-extractor.

© 2016 Alliance Laundry Systems LLC

of the OEM part, they are not. It’s quite tempting to install these parts believing that you are saving money but in reality you end up costing more. The “knock-off” part does not hold up like the OEM part and in some cases will cause additional damage to other components when it fails.

This is especially key when replacing electrical components such as ignition systems. OEMs have to ensure these parts meet all gas safety regulations and that the parts are certified to these standards. Always check the electrical components you purchase to ensure that either the UL or CSA approvals are displayed on the part. If they are not present, don’t risk installing them, as they could cause severe damage to your customers and your laundry.

Q: Are there any differences in the maintenance needs of a stack dryer compared to a singleload (single-pocket) machine? And does load capacity impact maintenance at all?

Eric Quandt, product manager, Alliance Laundry Systems, for Primus: Load capacity does not impact maintenance, since our machines are designed appropriately for load capacity.

There are differences between a single versus a stack dryer. The back of the stack dryers has more exposed parts due to the smaller footprint, so you need to be more careful when cleaning the machine. The lint filter also needs to be cleaned more often. However, from a maintenance standpoint, it’s similar to the single dryer since the same parts are used.

Brick: Maintenance required on a multiload dryer, whether it’s single or stacked, is basically the same. However, different needs can occur between models in areas such as dryer cabinets, lint compartments and venting.

Clark: Stack dryers are essentially two, single-load dryers — one on top of the other. Most have only one power connection and one gas connection, but operate basically the same as a single-load dryer. As for load capacity and its impact, this only comes into play when units are overor underloaded.

Burningham: There are no differences in the maintenance needs between the two machines, just different ways of accomplishing the maintenance.

The load capacity of the dryers does not

Q A& DRYER

D.I.Y.

have a direct effect on maintenance; however, how the dryers are loaded by the user will have an impact on the maintenance. For example, overloading will wear out drive systems and put more strain on electrical usage. Underloading will cause more machines to run, burning more fuel (gas or propane) or cycling the elements more frequently (electric) and more cycles on the steam inlet coils.

Cooper: The maintenance needs are the same between single and stack dryers.

Besaw: Yes, stack dryers will need the lint filters cleaned more often than singles simply due to the small area that stacks have compared to the large lint compartments singles have.

are marked out of order; if they are out of order, you can generally see if it’s recent or been a while by markings or clutter surrounding the dryers. 3. The store will generally appear clean. If the owner takes pride in his/her store, he/she will take pride in the machines.

Q: Anything else our readers should know about handling dryer maintenance themselves?

Besaw: It’s never been easier to find helpful information on laundry maintenance or troubleshooting. Most authorized distributors are directly linked into the manufacturer’s support systems and have electronic libraries of parts and service information available for the store owners to obtain.

Some distributors and OEMs also have large call centers where technical support can be obtained. In addition to live technical support by both distributors and OEMs, many offer service videos and in-house factory training seminars during distributor shows or at the factory.

Clark: Just check behind the dryers or open the front cover where the burner box is located and see how well kept they are. Keeping dryers and washers clean — and the area around them clean — is the first thing I would look for.

Klemm: The only thing that is noticeable is dryer cleanliness. If a dryer is cleaned properly, it’s probably well-maintained. Also, it will dry more efficiently, and the owner will be more profitable if the dryer is running well from proper maintenance.

Cooper: Quite simply, lint is removed and all dryers are working.

Besaw: No customer complaints about slow or uncompleted drying translates to happy and repeat customers. Keeping the cylinders clean from items that have melted and are stuck on the cylinder will also go a long way for customer satisfaction, as no one wants to dry their freshly washed clothes in a dirty dryer that could cause marking.

Brick: If dryers are in working order, have consistent dry times and are free of lint buildup in and around the machine, chances are there’s a good preventative maintenance program in place.

Burningham: 1. The Laundromat is usually steady with customers. 2. No machines

Clark: I would tell any store owner that the best thing they can do is put a good preventive maintenance program in place. Also, they should never try to do something that’s beyond their capabilities. Always call the distributor for help and guidance before progressing too far into troubleshooting.

Burningham: Don’t be afraid to ask your distributor or service technician questions.

Attend every training service school that is offered and read all the related literature about the maintenance/servicing of the dryers. If a technician comes out, ask the tech if you can watch over their shoulder to see what the problem is, why it’s happening and how it can be fixed. Remember, when you have a company come out to do service, they work for you; take notes and ask questions.

Brick: A good maintenance program starts with properly installed equipment. Owners should also rely on their distributor as a trusted resource. Distributors are often aware of service schools that may provide training sessions for routine repairs, key parts to keep on location, and maintenance tips.

Cooper: These are easy tasks that only need attention a few times a year. Don’t be afraid to handle these things yourself. If you run into questions, help is only a phone call away.

Q: What are the signs that a store has a good dryer preventive maintenance program in place?

LEVERAGING A FINANCE PARTNER TO ACHIEVE THE ROI YOU’RE LOOKING FOR

There are many benefits to owning your own business, especially a vended Laundromat, as it provides flexible hands-off management and a profitable source of income. Opening a Laundromat business requires some capital funds, but it doesn’t mean you have to use your life savings to front an all-cash investment.

Leveraging the right financial partner can stretch your dollar far beyond what you could get if you were to invest all necessary funds yourself. Whether you are a first-time store owner or looking to expand

your existing business, partnering with a lender who is invested in your success is a smart business decision — one that allows you to achieve a higher return on your investment (ROI).

INVESTMENT OPPORTUNITY

Those who choose to invest in a Laundromat business have the potential to see a remarkable ROI compared to other industries. Laundromats in the U.S. see an average overall ROI between 20% and 35%. This average, which has remained consistent for more than 60 years, is considerably higher than other business opportunities, including convenience stores, car washes, franchises, self-storage and even stock market investments.

While these alternate opportunities can undoubtedly provide an investor with a respectable return, they often are marred by expensive start-up and labor costs, higher failure rates, an extensive inventory, increased competition and the tendency to be dictated by the ebbs and flows of the economy.

A Laundromat business, when entered into correctly with the right partners, boasts up to a 94.5% success rate (from Speed Queen Financial Services, based on number of not charged off loans per laundry divided by total number of loans originated, January 2001 to June 2013). Why? Even when other businesses fail due to a less-thanideal economy, the laundry industry remains recessionresistant. Consumers will always need clean clothes,

Jeff Harvey

even during hard times, which is why Laundromats don’t experience the drastic downturns that many other businesses face during a recession.

Additionally, owning a Laundromat provides you with independence and the flexibility to run your store(s) how you see fit. You can set up your operation on your own terms according to your schedule and personal goals. An all-cash business model requires Laundromat customers to pay up front for laundry services, saving you time, money and headaches on laborious accounting tasks. Finally, the right equipment with advanced controls can set you up for largely hands-off management and the ability to operate your Laundromat(s) remotely.

With modest start-up costs, minimal inventory requirements and the generous tax advantages that come with an equipment-heavy business, it’s easy to see why investing in a Laundromat is a great choice.

BENEFITS OF USING MANUFACTURER-BASED LENDER

Once you decide to invest in a Laundromat, you must determine how to best finance the business. But don’t worry; you don’t have to do it alone.

There actually is a “right amount” of debt to incur and funds to borrow from a financial partner that can increase your overall cashon-cash return.

A cash-on-cash return is the ratio of annual before-tax cash flow to the total amount of cash invested, and it is often used to evaluate the cash flow from income-producing assets.

A cash-on-cash ROI can be increased by accepting a lender’s cash and limiting your own personal cash investment.

Your equipment manufacturer’s finance operation is intimately familiar with the industry and understands the Laundromat business, as well as the investment opportunity it provides. It’s more likely than commercial banks or even the Small Business Administration (SBA) to provide you with the funds you need, and it will work with you to determine that “right amount” of debt to incur.

Because it focuses exclusively on the laundry industry, an equipment manufacturer’s finance operation understands the timing that it takes to open a successful Laundromat — from startup to profitability — and can work with you to customize a financial package, including scheduling and/or staggering payments or an extended interest-only period.

Financial lenders unfamiliar with the laundry industry may be more hesitant to loan money, as they won’t necessarily understand the nuances of the business, return potential and investment opportunity, and they may require you to pay them back sooner.

If you opt not to partner with a lender to help pay for your Laundromat, your personal funding may not cover the full investment, or it may only be enough for one store; this limits your ability to expand your business with additional stores and consequently maximize your ROI.

Partnering with an industry lender lets a Laundromat pay for itself and generate income for you, also allowing you to stretch your investment across multiple locations to develop your portfolio more quickly. By leveraging your financial partner’s contribution, you can open several stores and let them pay for themselves, which will allow you to see a greater ROI sooner.

INVESTED IN YOUR SUCCESS

Your lender should be a partner who can offer full-scale support and will counsel you through every step of the process, from location analysis to equipment selection and beyond. To maximize your ROI, you’ll want to partner with a manufacturer that works with a nationwide distribution network that provides industry and location analysis expertise.

Once you’ve chosen the right financial partner, it should work with you on every aspect of your business, beginning with location review. It should help you understand the market of a potential store location (including demographics, competitors, etc.) and if a store is a good investment or not based on revenue projections. When it comes to financing the location that’s right for you, your lender should present you with specific financial options to put you in the best possible situation to succeed. An equipment manufacturer-based financing program can be the right partner, as it can work with you to create personalized financial packages and ensure you have the programs and tools to create the best possible return.

Even if you’re not planning on opening more than one store right away, it’s important to have a lender that has the capability to offer acquisition and equity financing.

Acquisition financing offers loans to acquire existing stores that can be coupled with new equipment financing for the Laundromat, whereas equity financing can be used to assist with construction costs for a new store or remodeling costs when re-equipping and revamping your current store.

Both of these options allow you to grow your businesses more quickly. These financial services may be more difficult to obtain with a traditional bank or SBA but are important in providing store owners with more opportunities for growth and a high ROI.

At the end of the day, you’ll want to partner with a lender that can help limit your cash investment, grow your portfolio and increase your cash-on-cash return. Your financial partner should be able to customize a financial package to your unique situation and needs to help your store become successful.

Jeff Harvey is the brand manager for Speed Queen® Financial Services. To learn more, visit www.speedqueencommercial.com/ finance or call 800-223-8408.

Your lender should be a partner who can offer full-scale support and will counsel you through every step of the process...

Employee Problem Your Toughest How to Handle

Layoffs or firings can mean trouble for everyone

by William J. Lynott

It’s a dreadful responsibility, but almost every business owner and manager will eventually come face-to-face with the disagreeable task of terminating one or more employees.

“Firing people is one of the toughest, most unpleasant things you do as an employer,” says James Walsh in his book, Rightful Termination (Merritt Publishing, 1994). “Your stomach tightens and your throat gets dry as you prepare to call someone in for the meeting that begins, ‘There’s no easy way for me to do this...”

As difficult as the task may be, fiscal reality sometimes makes employee layoffs unavoidable. When your payroll costs climb to unacceptable levels, or when an individual employee’s performance is unacceptable, it’s best to take appropriate action.

“Many owners and managers delay layoffs out of concern for their employees,” says Kerim Fidel, general counsel for SOI, Charlotte, N.C., a professional employer organization. “This may result in deferring layoffs beyond an economically rational point.”

“Some of our clients facing the troubling possibility of employee layoffs have sought our advice and guidance in how to navigate a workforce reduction while avoiding potential legal pitfalls,” says Sandra Dickerson, president of Your People Professionals, Santa Maria, Calif. “Each situation is unique, but if the employer follows some basic steps, many problems can be avoided.

“First, carefully consider whether there might be viable alternatives to a layoff. Perhaps you can find other cost-cutting measures that will let you preserve your major investment in your employees. Consider the long-term costs of replacing your talent investment when the economy picks up and satisfactory workers are again in short supply.”

“While layoffs are seen as a cost-cutting measure, there are significant costs associated with them,” Fidel says. “These include potential increases in unemployment contribution rates, severance pay, and exposure to layoff-related legal action. Soft costs include loss of confidence among customers and remaining employees, and forcing talented employees to find work elsewhere, possibly with your competitors.”

Still, there are times when layoffs are the only practical alternative.

“When that happens,” says Dickerson, “you must follow the most objective and uniform selection criteria possible. Be careful to ensure the layoffs will not have a disproportionate effect on employees in a protected class. Protected classes include minorities, women, older workers and the disabled.”

She also cautions against using layoffs as an opportunity to eliminate difficult or disliked employees.

“That’s the wrong approach if you want to avoid legal challenges,” Dickerson says. “Remember, unlike a termination for cause, a layoff is the elimination of a position, not a particular employee. Focus on the skills you will need to keep your business viable, and be sure to document the criteria you use to decide who stays and who goes. The size of your business may also subject you to legal notice requirements. Before you make layoff announcements, seek professional advice if you have more than a few employees.

“Lastly, be sensitive and make every effort to protect employee privacy and dignity throughout the layoff process.

(Image licensed by Ingram Publishing)

Be prepared to address the increased stress levels of your remaining employees who may be assuming added responsibilities and facing their own uncertainties about what the future holds.”

Today, with the increasing risk of costly legal complications when discharging an employee, even for purely business reasons, it’s important that you keep yourself aware of the legal pitfalls surrounding that task.

Every year, thousands of employers, from the largest to the smallest, are being hauled into court by former employees claiming that they were fired illegally. Many of those employees are winning substantial judgments against their former bosses.

“It costs nothing for an employee to file a charge with the EEOC [Equal Employment Opportunity Commission] or state Fair Employment Practices agency,” cautions attorney James P. McElligott Jr., McGuireWoods LLP, Richmond, Va.

“State and federal agencies can investigate employers for retaliation charges based on OSHA [Occupational Safety & Health Administration], Wage and Hour, environmental, FMLA [Family and Medical Leave Act], or other violations. In addition to the expense of legal fees, employers often must spend hours trying to reconstruct and justify their actions. Moral: Do it right the first time.”

What you need to be especially sensitive to is the risk of lawsuits based on some form of discrimination.

“Every employee has a race, a gender, a religion,” says attorney Beth Schroeder, Silver & Freedman, Los Angeles. “So, every employee, even new and probationary ones, falls into at least one so-called ‘protected’ class.”

AVOIDING THE NIGHTMARE

Here are five suggestions that will help you to avoid the nightmare of a wrongful termination lawsuit:

1. Keep Lines of Communication Open

Many wrongful termination lawsuits have their roots in a misunderstanding on the part of the employee. Often, it involves the reason for the termination.

“Many employers are under the impression that the less communicated to an employee about the termination, the better. My 18 years of experience in both counseling employers and defending lawsuits suggests otherwise,” says Schroeder.

“The more an employee understands about where he or she stands and the reason

for the employer’s actions, the less angry, frustrated and suspicious the employee is likely to become. It is that anger, frustration and suspicion that drives terminated employees to attorneys.”

Layoffs due solely to poor business conditions aren’t likely to be the cause of legal problems. However, it’s critically important that the employee be made aware that the separation was not due to his or her job performance.

2. Put It in Writing

Labor experts agree that careful docu-

mentation is an essential part of every employee termination, especially a termination for cause. Incidents or behavior leading up to termination for a reason should be recorded at the time of the incident, or as soon thereafter as possible. The documents should be respectful of the employee, but detailed, listing events or issues in a logical or chronological order.

“At the very least, you should put the reason for the termination in writing,” says Schroeder. “The employee is likely to be emotional and upset and may not hear

what you said in the termination interview. If the terminated employee goes to a lawyer, the lawyer will hear the story in the employee’s words, and will decide whether to take the case based on the employee’s description. In that case, the attorney may not hear your side of the story until after a lawsuit has been filed.”

3. Be Careful of ‘Constructive’ Discharges

The courts sometimes rule that an employee was indirectly fired, known legally as a “constructive” discharge. This can happen if the employer creates a hostile or

abusive work environment, places unreasonable demands on the employee, or issues a “quit or be fired” ultimatum.

If a constructive discharge is ruled, the employer’s responsibilities will be the same as for a direct firing.

4. Conduct Regular Employee Evaluations

Under the law, your employees are entitled to be kept informed of how well they are meeting your expectations. Your failure to meet this requirement may not be of any consequence unless and until a terminated

employee files a lawsuit that claims you made no attempt to inform him or her of your dissatisfaction.

Your evaluations do not have to be elaborate or follow any specific format, but it’s always best if you put them in writing, even if it’s only a short paragraph or two.

McElligott advises, “Your employees are entitled to know whether or not their performance meets your expectations. In this regard, it helps to make a written record, for future reference if the need arises.

“Always be consistent in evaluating and disciplining your employees, and be sure to review previous evaluations and disciplinary actions if any has taken place.”

Many HR professionals recommend that you allow employees to review their written evaluations. Then, ask them to initial the document. If the employee declines, your record should indicate that.

5. Deal Promptly with Performance Problems

Because the task can be so unpleasant, many business owners find reasons to delay firing a problem employee: “Perhaps the employee will improve. Perhaps I’m being too hasty. Perhaps living with the problem is the lesser of two evils.”

If you’ve done a good job of following the guidelines mentioned here, if you’re confident that a termination is justified, delaying the action is probably not in your best interest.

“Not firing a problem worker is often the worst thing you can do,” writes Walsh. “It keeps the problem worker around to create more trouble, making a bad situation worse. That’s not fair to you or to your other employees.”

McElligott goes further: “Don’t procrastinate or wait for the next evaluation. Do it now!”

Employee layoffs, even those that are the direct result of poor business conditions, hold the potential for both legal and morale problems. Following these ground rules will help to lessen the chances for costly complications. ACO

Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult an attorney for advice regarding your particular personnel situation.

William J. Lynott is a veteran freelance writer specializing in business management as well as personal and business finance.

DEXTER PROMOTES KRETZ TO PRESIDENT/COO OF PARENT COMPANY, KIRCHNER TO PRESIDENT OF LAUNDRY BUSINESS

Dexter Laundry Inc., and its parent company Dexter Apache Holdings Inc., report that Andy Kretz and Craig Kirchner have been promoted.

Kretz, currently president of Dexter Laundry, has been appointed president and chief operating officer (COO) of Dexter Apache Holdings. In this new role, he assumes operational and management responsibility for all Dexter Apache businesses, including Dexter Laundry, Dexter Financial Services, Apache Stainless Equipment Corp., Leer, Crystal Group and Dalton Ag.

Kirchner, who is vice president of sales, marketing and customer service, has been appointed president of Dexter Laundry. He assumes management responsibility for all aspects of the Dexter Laundry business.

“Craig brings a career of industry experience to this role,” says Kretz. “Dexter employee-owners are happy for our customers who will continue to grow with his leadership and positive attitude.”

Kretz and Kirchner both bring a wealth of knowledge and experience to these new roles, Dexter Apache Holdings reports, and will be critical in charting the course for the future of Dexter Laundry and all of the Dexter Apache businesses.

LAUNDRYLUX VET HERMAN RETIRES FROM FULL-TIME SERVICE

Laundry industry veteran Howard Herman has retired from fulltime employment with Laundrylux and its predecessor Wascomat (Bermil Industries) after 43 years of service, Laundrylux reports.

“Howard has been a stalwart of our industry for more than four decades, with friends at virtually every manufacturer and distributor across North America,” says Neal Milch, Laundrylux’s CEO. “His knowledge, dedication, hard work and especially people skills helped make the Wascomat brand what it is today.

Howard’s unique blend of talents won’t be equaled any time soon. Though he will be missed in the office every day, Howard is continuing to make a difference on a part-time basis and will continue to serve on the Board of the Coin Laundry Association until 2017.”

Milch says he recently spent time with Herman on company business outside the USA and that Herman is personally following up on “defined sales opportunities.”

The entire Laundrylux team celebrated with Herman and his wife, Terry, at the company’s annual holiday party last year, commemorating its 60th year in business and its status as Electrolux’s longest continuous customer relationship in the world, Milch adds.

(Photo: Laundrylux)

“Howard started in the warehouse after being hired by Bernie Milch and worked his way up to president of Laundrylux.

ACE Commercial Laundry Equipment Inc. is Huebsch’s 2015 Distributor of the Year: (from left) Aubrey Pollesch, brand manager, Alliance Laundry Systems; Rudy Munoz, ACE Commercial senior sales associate; Andy Wray, ACE Commercial sales manager; Joe Purbaugh, Huebsch senior regional sales manager; and Jason Husman, Huebsch financial manager. (Photo: Alliance Laundry Systems)

HUEBSCH NAMES ACE COMMERCIAL LAUNDRY EQUIPMENT ITS 2015 DISTRIBUTOR OF YEAR

Huebsch® has named ACE Commercial Laundry Equipment Inc. its 2015 Distributor of the Year.

“It has been very rewarding to witness ACE Commercial’s business grow and succeed over the years, and we are proud to honor them as the 2015 Distributor of the Year,” says Kathryn Rowen, Huebsch North American sales manager. “Their energy and enthusiasm for the business and industry continues to impress our team, and we look forward to our continued partnership.”

Andy Wray, ACE Commercial sales manager, accepted the award for outstanding sales achievement and customer service on behalf of the company.

A third-generation family-owned and operated company, ACE Commercial, located in Westminster, Calif., is one of the nation’s leading innovators in vended laundry design and equipment sales, multi-housing laundry room solutions and on-premises laundry equipment sales, Huebsch says.

For nearly 20 years, the company has seen tremendous sales ▲

Kretz

Kirchner

Howard Herman (left) accepts congratulations from Laundrylux President Neal Milch on Herman’s 43-year tenure with Laundrylux and predecessor Wascomat (Bermil Industries).

growth year after year and is recognized for offering durable Huebsch products and outstanding customer service.

“Huebsch washers and dryers are the highest-quality, most efficient machines in the market, and I am confident these products have been integral to the success of our business,” says Wray. “I value my relationship with all of my Huebsch partners, and I am humbled to receive this prestigious honor.”

ACE Commercial is loyal to the Huebsch equipment brand, focusing 100% of its equipment sales on Huebsch products, and embracing the Galaxy™ 600 controls and design accents. ACE Commercial is also dedicated to supporting the Huebsch distributor network throughout the country, and provides machines from the company’s warehouse to any distributor to help meet high sales demands, Huebsch says.

decisions as if we are making them for ourselves. Our customers trust that we’ll give them accurate and reliable information when it comes to making business decisions.”

That’s why the celebration included opportunities to explore ways to improve vended laundry business. Presentations included What’s Up in Marketing by Brian Wallace, Coin Laundry Association president; Dexter Live by Rick Case, Dexter regional sales manager; Ozonating Your Business by Jeff Deal, Hamilton Engineering; Attendant Training by Phil Irwin, owner of Waters Express Laundry Center; The Power of the Card by Steve Marcionetti, Card Concepts general manager; and 7 Ways to Greater Profits Starting Tomorrow by Mike Floyd, Continental Girbau Inc. president.

“We also catered to vended laundry owners interested in expanding into commercial laundry services,” says Jansen. For example, a 20-inch Continental flatwork ironer was on hand to show operators how flatwork ironing works to bolster vended business.

LAUNDRYLUX HIRES TUDISCO TO HEAD UP TECHNICAL CARE AND TRAINING Laundrylux recently hired Robert Tudisco as its new vice president of technical care and training, the distributor of Wascomat and Electrolux laundry equipment reports.

During the last 15 years, Tudisco has worked in various technical leadership positions in service industries ranging from textile rental services to facility-critical power infrastructure support and data center infrastructure support services, Laundrylux says.

DISTRIBUTOR LAUNDRY PRO OF FLORIDA CELEBRATES 20TH ANNIVERSARY UNDER ‘BIG TOP’

Laundry Pro of Florida Inc.’s recent “Big Top 20” drew 140 vended laundry owners, vendors and industry experts for a two-day circus-themed 20th anniversary celebration, the distributor says.

Complete with “Big Top” games, food and entertainment, vended laundry operators enjoyed laundry equipment and parts specials; participated in technical service workshops; and attended presentations by industry experts, the company says.

“It was an incredible success,” President Ron Jansen says of the February event in Lakeland, Fla., which featured team members dressed up as circus characters.

The event gives the distributor, which provides vended, onpremises and industrial laundry equipment to customers throughout Florida and parts of Alabama, with a way to “give back,” according to Jansen.

“Laundry Pro has grown over 20 years because of customer loyalty, and we are grateful for that,” he says. “In all we do, we try to put ourselves in our customers’ shoes and help them make

“Ours is an industry that continues to grow in terms of technology, and with the addition of Robert to our team, we have a leader who will make certain that Laundrylux employees stay informed and ahead of the curve,” says Gary Brown, vice president of engineering at Laundrylux. “Keeping our staff and company at the forefront of new technologies ensures our valued customers and distributors are able to do likewise.”

Tudisco has a bachelor’s degree in electrical engineering technology from the New York Institute of Technology (Old Westbury, N.Y.) and a master of business administration from Adelphi University (Garden City, N.Y.). Most recently, he served as senior data center engineer and director of operations at Mindshift Technologies, a Ricoh company.

At Laundrylux, Tudisco will set strategy for the technical service staff, to safeguard that the company’s distributor network and end-users receive the highest level of support and technical services in the industry.

“The solid reputation Laundrylux and the Electrolux and Wascomat brands have built in the industry is impressive,” Tudisco says. “Naturally, I’m looking forward to delivering on the company’s promise of providing exemplary service and support to our distributors and end-users.”

Tudisco

Laundry Pro of Florida’s staff dressed in circus costumes during the company’s 20th anniversary celebration in February. (Photo: Laundry Pro of Florida)

CLEAN SHOW MANAGEMENT RELOCATES TO NEW OFFICES

The Clean Show, and its management company Riddle & Associates, have moved to new offices. Their new address is 2751 Buford Highway, Suite 100, Atlanta, GA 30324.

While the main phone number—404-876-1988—remains the same, the fax number is new: 404-968-9800.

“We encourage past exhibitors and attendees to make this change in all departments of their companies that interact with the Clean Show,” says John Riddle, president of Riddle & Associates, the company that has managed the event since the early 1990s.

The Clean Show is the world’s largest exposition of equipment, products and services for the textile care industry, Riddle & Associates says.

Clean 2017 is scheduled for June 5-8, 2017, at the Las Vegas Convention Center. Exhibit sales will open this spring.

Five national industry associations sponsor the biennial event: Association for Linen Management (ALM), Coin Laundry Association (CLA), Drycleaning & Laundry Institute (DLI), Textile Care Allied Trades Association (TCATA) and Textile Rental Services Association of America (TRSA).

To learn more about the Clean Show, visit www. cleanshow.com, e-mail info@cleanshow.com, or contact Riddle & Associates at its new offices.

ALLIANCE LAUNDRY SYSTEMS EARNS STEVIE AWARD FOR SALES, CUSTOMER SERVICE

Alliance Laundry Systems was recognized at the 10th annual Stevie® Awards for Sales & Customer Service in March in Las Vegas. Alliance’s Customer One® program was honored as a 2016 Stevie Award recipient for its achievements and recent enhancements that improve the customer experience and help its customers’ businesses succeed.

“We are thrilled that our Customer One program received its second Stevie Award for Sales & Customer Service,” says Scott Chiavetta, vice president of Customer One and chief information officer at Alliance. “Customer One is more than a program, it is an integral part of the Alliance culture. All of our employees are dedicated to bringing innovative ideas to the market with the goal of helping our customers grow their business in the most profitable way possible.”

Alliance was recognized in the “Customer Service Department of the Year – All Other Industries” category, and was one of 17 companies nominated. Alliance submitted an essay outlining key achievements, as well as enhancements that were made to the Customer One program in 2015.

The Customer One team services a global network of more than 1,200 equipment distributors, dealers and laundry service providers. The department includes more than 125 global employees and is comprised of information ▲

technology, order services, technical service, training and business development.

Major accomplishments in the past year include the growth of the Business Development program, which added 70% more staff, streamlined data with the company’s CRM system and created processes to handle large project volume, Alliance says.

Alliance Laundry Systems designs, manufactures and markets commercial laundry equipment under the brand names Huebsch®, IPSO®, Primus®, Speed Queen® and UniMac®, among others.

ment and provides the best quality of customer service throughout all aspects of the buying process, including installation, employee training, planning and design, and financing.

“We know that by offering IPSO equipment, we are providing our customers with efficient and durable machines they can rely on, which has helped us build strong relationships with our customers for more than 50 years,” Gonzalez says.

SERVICE SCHOOL INTEREST PLEASES LAUNDRY OWNERS WAREHOUSE

Officials with Laundry Owners Warehouse, Ft. Lauderdale, Fla., have deemed the distributor’s first-ever service school a success, saying attendance at the Groundhog Day event exceeded their “wildest expectations.”

The event drew 79 attendees, including store operators, service professionals and prospective owners, to learn service procedures and routine preventative maintenance from Dexter Laundry factory representatives who conducted seminars on the manufacturer’s new vended C-Series washer and Express dryer lines.

“We had a lot to prove, being the newest member of the Dexter family,” says Joshua Prager, Laundry Owners Warehouse owner. “The fantastic customer response is a major step towards proving our worth.”

Twenty-year veteran Brad Millard, a Dexter factory technician, conducted the service school featuring a series of seminars.

IPSO® recently recognized Steiner-Atlantic Corp., Miami, Fla., as its 2015 Distributor of the Year. This is the second straight year that Steiner-Atlantic has been so honored by the manufacturer.

“We are proud of all Steiner-Atlantic has accomplished in the last year, and they are once again very deserving of being named the IPSO Distributor of the Year,” says Mark Schram, IPSO North America sales manager. “Steiner-Atlantic continually goes above and beyond by surpassing their sales goals and providing superior customer service. They proudly represent IPSO’s core values and hold themselves to the highest standards when supporting their customers.”

Among the Steiner-Atlantic team members who accepted the award for outstanding customer service and sales achievements were Robert Gonzalez, coin laundry division vice president; Zach Mangones, vice president of operations; and Mike Steiner, president and CEO.

“Our customers are our primary focus and we always strive to provide them with dependable equipment, as well as the support they need to succeed,” Gonzalez says. “We are very excited to be recognized by IPSO again this year for our hard work and look forward to continuing our partnership with IPSO.”

Steiner-Atlantic says it has been a worldwide leader in the laundry, boiler and dry cleaning industries for more than 50 years, serving as a distributor for the Florida, Caribbean and Latin American markets. The company says it specializes in coin laundry equip-

“Every school brings its own nuances,” Millard says. “What surprised me about this school was that the attendees included some veterans of the coin laundry business, a few of whom we have worked with in the past. Yet, despite their experience, they were eager to learn, and we hope we taught them something useful.”

The idea behind the seminar was to share useful information regarding Dexter’s line of products and how they can benefit coin laundries, with special emphasis on the C-Series washers and dryers. Additionally, participants also received tips for using and handling older Dexter machine models, including how to troubleshoot problems. The school concluded with a Q-and-A session. ACO

IPSO NAMES STEINER-ATLANTIC CORP. ITS 2015 DISTRIBUTOR OF YEAR

Members of the Steiner-Atlantic and IPSO teams gather for presentation of the 2015 IPSO Distributor of the Year Award. (Photo: Alliance Laundry Systems)

Nearly 80 people attended Laundry Owners Warehouse’s first-ever Service School featuring step-by-step service procedures and routine preventative maintenance from Dexter Laundry factory representatives. (Photo: Laundry Owners Warehouse)

VENDING EQUIPMENT

VEND-RITE

Vend-Rite venders feature a unique conveyor delivery system that maximizes product capacity, the company says. They have the ability to vend items large or small.

Unlike other venders that drop product up to 4 feet, the Vision vender delivers products to its collection area by elevator. The machine’s black interior and LED lighting system promote the “retail” packaging colors.

The MDB wiring platform provides for multiple payment systems, coin, bill, loyalty or credit card technology.

Features include continuous system check and self diagnostics; product dating; refrigeration check; accountability; and sales data.

The Vision ES Combo (pictured) can vend drinks, candy and snacks from the same cabinet while controlling up to two other units.

The venders have Vend-Rite’s bubble brand artwork on the front; side-panel graphics (shown) are optional.

www.vendrite.com 800-777-1802

SEAGA

Seaga offers all sizes and types of vending equipment, including snack, cold drink, hot drink, bill changers and more.

The company’s flagship range, the Infinity vending system, allows operators to mix and match trays and features to create a unique, custom, unattended retail solution. The Infinity range can be configured for snacks, food and beverages of all sizes and can also be adapted to laundry supply merchandising, retail sales, and custom applications. The Infinity series can be fitted with a media screen to offer high-intensity customer interaction and advertisement capabilities, Seaga says.

Seaga also introduces the Intelligent Inventory Control series of equipment. Relied on to control inventory much like a tool crib, the IIC series has experienced exponential growth in large commercial laundry and drycleaning

OK MANUFACTURING

The Rattler Ziggy Machine from OK Manufacturing dispenses a 1-inch gumball, capsule or candy from a small footprint, the company says. Customers turn the dial and watch the “prize” enter the zig-zag fall and bounce its way down to the bottom.

Machine dimensions are 45 inches high with a 15-inch base and 16-inch globe. It comes in a variety of colors.

The larger Viper Ziggy Machine (49 H x 17 W x 17 D) vends 45mm or 49mm bouncy balls, 2-inch capsules or 2-inch gumballs. Tide detergent pods can fit in the 2-inch capsules in case laundry customers forget their detergent.

The Viper Ziggy is a durable and brightly colored machine that offers attractive graphics with a dependable coin operation and a large-capacity globe, OK Manufacturing says.

All Gumball Depot machines have a 90-day manufacturer’s warranty, the company adds.

http://gumball-depot.com/en/ 800-748-5480

facilities to offer critical supplies and safety equipment to employees in an automatic, controlled way, the company says. Robust accounting and reporting features have revolutionized item control, saving commercial laundries and other facilities up to 24% in supply consumption, Seaga adds.

www.seaga.com 815-297-9500

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

The LM30 In Wall Vendor from RPD Corp. is an excellent vending choice for Laundromats, the company says. The vender mounts in the wall to save valuable floor space, and includes a stylish and durable stainless steel front door and frame.

Among its features are: • 30 selections with flexible configuration

The unit stands 52½ inches tall by 32½ inches wide by 25 inches deep. www.rpdvending.com 501-327-9496

ALLSTAR VENDING

Allstar Vending offers many different types of vending machines, both for flat and capsuled products, the company says. Whether it be a small Beaver gumball machine, a Northwestern capsule machine or Allstar’s own sticker machine, the company says it has a variety of options. A Laundromat that has a small unused space may garner extra income by filling it with a small vending machine, Allstar Vending says. To fill those machines, the company offers a variety of gum, candy, toys and stickers/tattoos, both licensed and generic. Examples include Allstar’s best-selling 2-inch Minion Danglers, as well as newly licensed products from The Secret Life of Pets.

Allstar also carries ESD and Greenwald push mechanisms. www.allstarvending.com 800-685-7066

ll Brands Vending offers a full range of vending machines, financing, location assistance and other services to meet every need, the company says. Its catalog of equipment includes machines such as the:

10-Selection Drink Vending Machine — This new can and bottle drink machine offers 10 selections of your customers’ favorite canned or bottled beverages. The AB 10/500 vends most beverage containers on the market, including 12-ounce cans, 20- and 24-ounce bottles, and even 16-ounce bottled water. An eye-catching, back-lit graphic sign and lighted product displays draw customers. Energy-saving LED lighting enhances product presentation; there will be no bulb servicing needed for five years, the company says. And a guaranteed delivery sensor system keeps customers satisfied and reduces service calls for misloaded product.

Trimline II Refreshment Center — All Brands’ new combination vending machine is built to satisfy customers whether in the mood for snack or drink options. Credit/ debit card- and DEX-capable, it vends chips, candies, crackers, pastries and beverages, offering nine drink selections and 20 snack selections. An accounting mode enables owners to monitor cash and vending sales data.

Cold Food & Drink Vending Machine — Vend it all from one vending machine, with glass front styling making products highly visible, the company says. Beverage trays are designed for can and bottled beverage dispensing, plus there are versatile and adjustable trays and selections for varying products. It vends cold foods, dairy products, beverages and more. The AB 45 is equipped with a product delivery sensor guaranteeing product or a customer’s money back. Heated glass is an option.

www.vending.com 855-712-8674

SALES ARE UP, PROFITS ARE DOWN — BUT WHY?

Your Laundromat had a good year. Sales rose 4%. Excellent. Nice and steady. But when your accountant delivers the results, profits are down 10%.

What happened?

Of course, the 10% reduction is only on paper. That’s what the accountant does, calculate profit. You drew your full salary, so it doesn’t matter that profits are down. In fact, because profits are down, you pay less in taxes. So it is all good, right? Wrong!

It’s not good news.

Profits are more than an accounting entry in a ledger. They are a statement of your performance. If profits are down, it means you did not do as well as last year. If sales were up, but profits are down, that’s a serious call of alarm. Why didn’t profits move up with sales? Where did you lose control of costs? This is what you must figure out.

If you just let it go, and the next year, it’s the same story, by year three, there will be trouble. Your accountant will tell you that you can’t continue to draw your full salary, you will have to draw $5,000 less. That’s when you’ll begin to pay attention, but it might be too late.

Revenue needs to increase at least slightly to maintain profit. Costs go up 1% or 2% each year, so revenue must keep pace. But increasing sales is also the sign of forward motion, of progress, just like decreasing sales is a sign of decline. So if revenue went from $250,000 to $260,000, but profit went from $50,000 to $48,500, it is not a good trend.

To those that argue that the difference is not such a big deal, I am reminded of this statement in Charles Dickens’ Great Expectations:

“Annual income: 20 pounds. Annual expense: 19 pounds and 6 shillings. Result: happiness.

“Annual income: 20 pounds. Annual expense: 20 pounds and 6 shillings. Result: misery.”

Small sums matter. And trends point to what will be in the future.

The question is: Why were profits down?

Have costs crept up more than expected? Has your town imposed a tax on utilities which has pushed

up water and electricity to more than 25% of total expenses?

Have you put out money for a capital project that ran past schedule? Have you had a lot of staffer turnover, resulting in the need for much more rehiring and training? Has a rent escalation charge pushed your occupancy costs over budget? Did you need to take extra money, raising management costs excessively?

Analyze expenses to see where costs went up. Were the increases necessary? Could they have been postponed? Why were they undertaken at this time?

Perhaps costs rose because of accounting practices. Say you remodeled your store, and your accountant took a large Section 179 expense right off the top to lower your tax liability. The money spent for this effort will be reaped in future years, while an overwhelming

percentage of the expense was taken in the year of installation. If this were the case, the reason for lower profits is not due to poor management, but rather because of an accounting determination.

Perhaps you had lower profits because you did not increase prices. If costs rose, maybe you should have raised prices. Yes, it is tough to raise prices — customers complain, you’ll lose some regulars, there’s confusion on the floor — but matching prices to costs is pivotally important to achieving the target profit.

It is not unreasonable to raise prices once a year, or perhaps every other year. But it is necessary to make sure the price increases cover cost increases plus normal profit margin. In other words, if costs go up 2%, prices need to rise by 2% plus some assessment of profit. In this

Howard Scott

Analyze expenses to see where costs went up. Were the increases necessary? Could they have been postponed? Why were they undertaken at this time?

mately 7,000. He demolished the house and built a brand-new, 2,000-square-foot laundry. Foshee had done much of the build-out on his first store himself, Brooks says, so he was no stranger to the work. While Foshee hired some outside contractors, he worked there every day during construction. Just as the name implies, Foshee wanted his laundries to have a “hometown feel,” so he adopted similar down-home motifs for both, inside and out.

OPPORTUNITIES

Springtime Laundry Industry Calendar Continues to Fill Up

Self-service laundry operators continue to have a springtime calendar full of opportunities to attend distributor open houses, service schools and other special events.

Here is a brief rundown of events from the American Coin-Op calendar through May 25.

Call, or visit the website listed, for registration information. In many cases, space is limited.

MAY

May 3 — Great Lakes Commercial Sales

2016 Product Expo & Service Schools, Miamisburg, Ohio; 888-877-4382, www.greatlakeslaundry.com

May 3 — Electrolux Cinco de Mayo Product Expo, Westford, Mass.; 800-2583570, ext. 114, www.decequip.com

May 5 — Equipment Marketers 23rd Annual Trade Show & Service Seminar, Cherry Hill, N.J.; 800-223-1376, www.laundrytradeshow.com.

May 5 — Star Distributing of Tennessee Open House, Nashville; 615-298-5547, www.stardistributing.com.

May 7 — Great Lakes Commercial Sales

2016 Product Expo & Service Schools, Wauwatosa, Wis.; 800-236-5599, www.greatlakeslaundry.com

May 10 — Midland Commercial Sales & Service Open House and Product Show, Winnipeg, Manitoba, Canada; 866-9892755, www.midlandcommercial.com

May 10 — Star Distributing of Tennessee Open House, Knoxville, Tenn.; 615-2985547, www.stardistributing.com

May 11 — CG West Conference of Champions Profit Symposium, Santa Fe Springs, Calif.; 866-950-2449, www.cgwest. com/symposium.

May 12 — Star Distributing of Tennessee

Open House, Chattanooga, Tenn.; 615-2985547, www.stardistributing.com

May 12 — Super Laundry Open House, King of Prussia, Pa.; 866-444-0809, www. superlaundry.com

May 14 — Coin-O-Matic Service School: Speed Queen Single & Stack Tumbler Dryers, Alsip, Ill.; 708-371-9595, www. coinomatic.com.

May 14 — Commercial Equipment Co. Open House, Service School and Equipment Showcase, Addison, Texas; 972-991-9274, www.washerdryer1.com

May 18 — Gold Coin New Jersey Laundry Expo Show and Mega Sale, Newark, N.J.; 973-867-0485, www.gold coinlaundry.com

May 18-19 — Coin Laundry Association 2016 Excellence in Laundry Conference, Ojai, Calif.; 800-570-5629, www.coin laundry.org/events/excellence.

May 25 — Laundrylux Level 1 Technical Service School Seminar, Inwood, N.Y.; 800645-2205, www.laundrylux.com.

Distributors, e-mail Editor Bruce Beggs (bbeggs@atmags.com) to have future company events added to our calendar. ACO

example, prices should go up by 2.4% at a minimum.

Lower profits may have been realized because, even though overall revenue increased, the mix of sales changed. Lower-margin volume went up while higher-volume trade went down. For example, commercial volume went up 15% while in-store volume went down 5%. Because commercial volume is at a lower margin, overall profits are down. It helps to know this. This information forces you to act.

Start by asking questions. Why did retail store sales go down? Has a new Laundromat opened down the street? Is there a steady repositioning of your market area, where more apartment dwellers are leaving?

Have you had less staffing on hand to help customers with their problems? If commercial volume is increasing, can you make it more profitable? Is it time to raise commercial prices? (It is always smart to raise prices when business is good.)

Could you eliminate smaller, less profitable accounts, and concentrate on the larger accounts? Can you squeeze out more efficiency in your processing? Is there a piece of equipment that would help?

Is the lower profit a one-time event? Perhaps there was an accident and you have to pay medical expenses of a customer. Or you had a back-room fire and had to spend money to put yourself back in business. Maybe you decided to help out a faithful employee with a gift of money. Even though these things won’t happen again, they impacted the bottom line. Be careful that, next time, you can cover the expense and maintain profits.

Finally, are lower profits due to the fact that you and/or your staff are being careless? Too many refunds, too many payouts for damaged goods, too much reliance on creditor statements, and a greater inattention to bill-paying all are results of lax management. Perhaps inefficient staffers sideswiped your wash-fold-dry volume. The cure for this is to become revitalized.

A two-week vacation could help you come back with a renewed determination to achieve your target profit. Once refreshed, go back to the basics: First, acknowledge that every dollar of revenue counts. Second, ensure the inflow is greater than the outflow, every month, every week, every day.

Never lose sight that the bottom line is what really matters. ACO

Howard Scott is a longtime business writer and consultant. He can be reached at dancinghill@gmail.com.

(Photo: © iStockphoto/sunstock)

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