American Coin-Op - September 2019

“Tap and Go” (Contactless) payment has become the preferred way to pay in Europe, Canada, South Korea and Australia, and the US is finally catching up.

Visa expects more than 100 million contactless cards will be in the hands of American consumers by the end of 2019 and they are currently accepted at 78 of Visa’s top 100 merchants. With SpyderWash, customers simply hold/tap their credit card a few inches from the card reader, and the vend is satisfied.

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Speed Queen by Alliance Laundry Systems

Bruce Beggs

NO GUARANTEE

IF YOU BUILD IT

I’ve always been a baseball fan, so it may be little surprise that the 1989 Kevin Costner flick Field of Dreams is a favorite of mine.

It’s the fantasy tale of a failing corn farmer who’s inspired to build a baseball diamond in his cornfield when he hears a voice say, “If you build it, he will come.” The “he” proves to be one of the movie’s great mysteries.

Once the field is finished, it’s not long before long-dead big leaguers that only Costner and his family can see are slugging homers and stealing bases again.

I tell you this because a similar “if you build it” phrase came up in the context of self-service laundry marketing while I was working on this month’s cover story.

One of the marketing experts I spoke to says that as much as you might like your new store to be like that magical Field of Dreams baseball diamond, just because you build it doesn’t mean they— your potential customers—will come.

No, marketing and promotion are vital to lead people through your front door and into your wash aisle. You can do it primarily by word of mouth if you choose but there is a vast array of affordable print and digital marketing tools available to you.

My cover story, Marketing & Customer Relations: Hit Your Target!, examines the value of identifying your target audience and how you can better understand what motivates them to use your business.

Yes, you can operate your laundry business solely on faith, but that may be a story best left for the movies.

Bruce Beggs Editorial Director

Charles Thompson, Publisher

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

Donald Feinstein, Associate Publisher/ National Sales Director

E-mail: dfeinstein@ATMags.com Phone: 312-361-1682

Bruce Beggs, Editorial Director

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

Roger Napiwocki, Production

Manager

Nathan Frerichs, Digital Media Director

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

ADVISORY BOARD

Kurt Archer Ann Hawkins

Wayne Lewis Kathryn Q. Rowen

OFFICE INFORMATION

Main: 312-361-1700

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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, 650 West Lake Street, Suite 320, 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 60, number 9. Editorial, executive and advertising offices are at 650 West Lake Street, Suite 320, 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, 2019. 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.

MARKETING & CUSTOMER RELATIONS: Hit Your Target!

by Bruce Beggs, Editorial Director

Widespread use of the Internet and the proliferation of mobile devices in today’s society has given self-service laundry owners plenty of ways beyond the traditional to reach their communities and promote the services they offer.

But whatever tools you use, traditional or otherwise, their true value lies in their ability to aid you in identifying your target audience and helping you understand what motivates them to use your business.

For a service-oriented business like a Laundromat, what basic questions should its marketing answer for customers and prospects?

“I think it is, are they really getting the most reach within their geographic footprint?” says Jennifer Schulman, president and founder of Fortune Web Marketing, a full-service online marketing agency.

Her firm specializes in things like website design, search engine marketing, content marketing, e-mail marketing, and

social media marketing, but also has a full print design department capable of handling anything from truck wraps to business cards.

“Most of the time when we speak to owner-operators, especially at shows like the Clean Show, it’s more like, ‘How can I let people know what I have? How can I tell them that we are the most state of the art, we have the amenities that they need?”

That starts with having a website presence, says Schulman, plus social media marketing is very important to small businesses like coin-ops.

“The key performance indicators depend on the goals the specific owner has,” whether it’s brand awareness, customer acquisition or customer retention, says Dennis Diaz, lead marketing guide for digital marketing company SPYNR. “The common denominator there is the amount of impact you have with your campaigns.”

SPYNR specializes in working with Laundromats and dry cleaners, and focus-

es specifically on online marketing, website development, and building search engine/social media strategies. Before starting the firm, Diaz worked several years as a marketing director and loan officer for a laundry-focused financing company.

The success of any marketing effort lies principally in how many people are engaging with or viewing your content.

“At the end of the day, I think the main goal for all of your marketing efforts is acquiring an audience that you can speak to, and speak to over and over again,” Diaz says.

PRACTICE THE FUNDAMENTALS

There are some fundamental steps to marketing a business successfully. Chief among them is knowing your target market.

“This is where you can tie into the research process of understanding all of the nuances of a buyer persona, an ideal customer of yours,” Diaz says. “And understanding not only how they work ▲

(Photo compilation: © Kagenmi/iStockphoto)

within your Laundromat but also what other type of content do they read online that’s outside the industry.”

Do some digging, then develop your message around your neighborhood’s favorite activities or destinations, for example.

“There are the obvious targets, people who just need a coinop Laundromat in their area,” Schulman says. “Are you close to a university? Are you close to corporate housing? Are you close to a lot of apartment buildings, and do those apartment buildings have laundry services in them? All of these pieces of information are available online.

“With just a few moments, you can do a lot of research, and with that research, you can really refine the targeting of your advertising.”

All of the things she mentioned can be targeted in social media ads relatively inexpensively, she adds.

Once you’ve identified your audience, educate them on your business benefits.

“Let’s start with your facility. Pictures speak a thousand words,” Schulman says. “We’ve met several owners lately that have massage chairs in their facility. They have state-of-the-art Wi-Fi. They have televisions. They have high-end vending machines, things of that nature. All of those things can be marketed so easily in a few words and just one picture.

“A store owner should ask themselves, ‘What differentiates me from my competitors? Is it my facility? Is it the amenities I have in my facility? Is it my pricing? Is it my customer service? Is it the fact I give a special offer to first-time customers?

“It might be all of the above, but every single one of those points, down to each individual amenity, is a marketing experience and should be exposed, not only to your current customers to keep them loyal and coming back, but to prospects as well.”

“Consumers are definitely aware that businesses create agenda-driven content, so they’re not likely to respond positively to ‘salesy’ content,” Diaz says. “Businesses need to start developing better strategies to build authentic relationships with their audiences.”

And what you see as benefits in your business may not necessarily connect with

customers, he adds. You need to “unravel” what people actually want from your laundry.

“I think the best way to first unravel that is to take a look at your social media reviews online, find out what the pain points are, and effectively develop what those benefits are based on that,” he says.

Next, your marketing efforts should include a call to action.

“A call to action (CTA) is the action that you want a user to take after engaging with a piece of your marketing, whether it be print or digital,” Schulman says. “On your website, a CTA might be ‘Get directions.’ Very important, especially if they’re coming to your website from a mobile device. It might be ‘Contact us today.’ Might be ‘Call us now.’ Any of those things.”

“I love that you brought up call to action because I think so many Laundromats don’t have one,” Diaz says. “They tend to just showcase the hours and their address on their website but never tell someone to go visit them.”

He favors tying the CTA to some sort of incentive. For example, incentivize your wash/dry/fold services by offering a downloadable coupon to first-time customers.

Finally, you need to monitor your efforts, measure their effectiveness, and refine them based on the results.

“You should make performance analysis ongoing,” Diaz says. “It should be part of your strategy consistently.”

“Digital marketing is probably the easiest form of marketing to measure,” Schulman says. “You can see if it’s working and if it’s not. And you can refine with

only days of data, typically. From a search engine optimization strategy, it takes a little bit longer, but things like social media ads and posts, you can start refining a strategy—or building on what’s successful—almost immediately.”

“Analyze the performance of your marketing efforts in real time and on an ongoing basis,” Diaz says. “Don’t just set it and forget it. Stick with the analytics, know what your key performance indicators are for that specific campaign and make adjustments during that campaign.”

Many online measurement tools are free. Google Analytics measures traffic coming to a business website and where that traffic is coming from, such as social media or a search engine.

Facebook Insights “gives you data on the times of day and best days that your posts or ads are performing, how many people they’ve reached organically and paid, how many clicks you’ve had, how many shares, likes, comments, etc.,” Schulman says.

It’s never too late to start marketing but those who have been doing it a while have the upper hand, Diaz says.

“I think the challenge is the people who have been doing it for a while have built up the authority within their communities, have built up kind of the territory ownership. The challenging part is to kind of break through that.

“Marketing is an ongoing effort to help shield yourself from the competition, and that’s where it becomes more challenging. You have to be more creative with the type of marketing you do. You can’t do what everyone else is doing because then you’re not setting yourself apart.”

As much as we’d like our laundries to be like the baseball field in Field of Dreams, just because you build it doesn’t mean they will come. Schulman says your front-line customer service personnel are your No. 1 resource for polling customers and learning how best you can serve them.

“‘What are the biggest problems and the biggest pain points that our clients have? What are the questions you hear day in and day out? What are their issues that we can help resolve?’ When you ask those questions, the answers become your marketing.”

“Marketing is an ongoing effort to help shield yourself from the competition... You can’t do what everyone else is doing because then you’re not setting yourself apart.”

—Dennis Diaz

MAKING THE MOST OF TRANSIT ADVERTISING

One of my favorite ways to market vended laundries is via the moving billboard. Moving billboards — on buses, trucks, delivery vans, taxis, etc. — can advertise in places where stationary billboards can’t. They can extend for a few days, weeks or months, and target a specific geographic area.

Typically, the vehicles that carry these ads tend to follow specific routes and offer strategic placement either outside and/or inside the vehicles to capture the attention of passengers, other drivers and pedestrians along the street. They can also deliver your message in the same neighborhood or proximity as other competing laundries; in and around busy city centers or shopping malls; and at special events.

Transit advertising exposures can serve multiple

goals. We employ them for short-term, special-event promotions and long-term brand awareness. Broad market coverage results in relatively low-cost ad repetition and lots of daily impressions!

Remember that good negotiation can bring extra value. Oftentimes, newbie advertisers can procure special deals, rates or packages — and more bang for their advertising buck!

Here are some tips for transit advertising:

Location — There are different placements for ads depending on who you want to target. Do you want to target the people getting on a bus, driving in traffic, or pedestrians? If you want to target traffic, advertise on the driver’s side or vehicle’s tail. If you wish to target passengers, advertise near the exterior passenger door or inside.

Kim Loderbauer

Quick Read — Less is more, especially when it comes to transit advertising. Moving ads are a quick read, so keep the message simple, short and sweet. Your message should be clear, easy to read from near and far, and, most importantly, easy to remember.

Colors that Stand Out — The ad should pop off the vehicle! Don’t design an ad that’s the same color as the vehicle itself. Know the colors of the vehicles you are advertising on and design your graphic and message accordingly.

More Visuals — Make your design memorable by using graphics that wow viewers. Use more graphic elements and fewer words. Incorporate elements of the vehicle into your design, or go to the extreme and extend it outside the standard advertising space!

Size — Deliver maximum exposure with your ad. Remember, your ad needs to be visible to drivers and pedestrians so make sure to size it appropriately. Command your audience’s attention with large, creative ad elements.

Type of Ad — Wrap advertising differs from mobile billboards because wrap advertisements typically envelop all of the vehicle, or a large portion of it. Many laundries with pickup and delivery services will use a full van wrap to advertise those services. Mobile billboards are large, flat surfaces, like traditional billboards, that adhere to vehicles and can be changed out as necessary.

Quality Designer — Don’t go price shopping on the Internet and choose a random vendor to design your laundry’s transit ad. And, don’t do it yourself. Choose a qualified, local vendor who can design and install the ad on your behalf.

Frequency — Determine the length of time your ad is to run based on your goals. If you’re advertising a promotion or grand

opening, it might only run a few weeks. If you’re advertising your laundry’s drop-off wash/dry/fold service, it can run for months or years. Just be sure to continuously freshen up your message.

We’ve found transit advertising can create interest, reinforce a brand and bring customers in the door to take advantage of specific services and special promotions.

ACO

A 20-year marketing veteran, Kim Loderbauer manages advertising and marketing firm Continental Creative Services (CCS) in Oshkosh, Wisconsin. She works closely with vended laundry owners every day, helping them cost-effectively promote their stores. She can be reached at kloderbauer@cgilaundry.com.

target the people getting on a bus, driving

traffic by

bus,

pedestri-

on the street? (Photo: Continental Creative Services)

Balancing Laundry Ownership with Other Pursuits

All well and good to push for more as long as work-life balance is there

by Bruce Beggs, Editorial Director

Not every Laundromat owner is strictly only that, a Laundromat owner. While many businessmen and women find that owning/operating a selfservice laundry or two is more than enough to keep them occupied, there are store owners who strive to take more onto their plates in terms of adding another business, volunteering in their local community, mentoring, you name it.

Whatever their reasons, there are gogetters who have the capacity and the drive for other pursuits. Laundry ownership was the first calling for some. For others, it’s just the latest sideline.

But any store owner worth his or her weight in quarters knows it’s all well and good to keep pushing, as long as there is work-life balance.

American Coin-Op spoke to three selfservice laundry owners who have experienced or are experiencing balancing laundry ownership with other pursuits, and what they’ve learned along the way.

PAWN SHOP PROPRIETOR

Wisconsinite Steve Dietzen often visited pawn shops during his service to our country in the U.S. Army. Today, he owns and operates three Fast-N-Easy pawn shops in Green Bay, Menasha and Oshkosh; he opened his first store 12 years ago.

He lists jewelry, electronics, sporting goods, guns, TVs, vacuum cleaners, hand

tools and camping equipment as items you’ll find most often on his pawn shop shelves.

About 21/2 years ago, he got into the laundry business, opening the Green Bay Express Laundry Center.

“I have a strip mall (in Green Bay). My pawn shop used to be in the strip mall. I grew out of that, so I had to build a 12,000-square-foot building on the same site,” Dietzen says. “Originally, I had planned to do just one big pawn shop. I’d never thought about doing a Laundromat.

As I was building the building, I had two different investment groups approach me to lease space for a Laundromat. So once that happened, I started thinking maybe I could do this myself.”

Dietzen allotted 3,000 square feet for the laundry and the remainder for the pawn shop. They share a common entrance; patrons turn one way for the laundry, the other for the pawn shop.

“What I find is it’s a lot of the same clientele. What really works well, when people are doing their laundry, you have a captive audience, so we send them over to the pawn shop. If they’re doing laundry over here and they buy something over there, I give them a certain percentage off.”

He and three attendants oversee the laundry operation. As for his schedule, he visits the Green Bay facility on Mondays, Wednesdays and Fridays, then spends the

other two days at his other two stores. He doesn’t work weekends.

“If there is one thing I would caution people, originally going into Laundromat (ownership), I thought it would be a little less hands-on. I thought it would kind of run itself. But to run a really good Laundromat … you have to be there. You have to see how the customers are interacting. Plus, I was new to the business, so I had to learn the business. I had to learn the flow of the customers. I had to learn how the equipment operates and if it breaks down, how do I fix it.”

Dietzen says to this point, he’s not had any issues with balancing his workload between the laundry and pawn shop businesses.

“It’s really to the credit of my general manager (Lee Dietzen, a cousin) that kind of runs the pawn shops for me. He does such a great job for us, it really frees me up so I can dabble in new adventures like the Laundromat.”

THE PATH OF ENTREPRENEURSHIP

Kurt Cargle was working full-time as a salesman for a Chicago car dealership when the Great Recession hit the U.S. economy hard.

“When the recession started hitting back in 2007, it was kind of difficult to deal with, and I decided to invest in buying some washers and dryers and setting

(Photo: © Jirsak/Depositphotos)

up small laundry facilities in motel chains and apartment complexes,” Cargle says. “I wanted to make sure I had some passive income to offset the decline in the auto industry.”

He had an inclination for laundry ownership; his father, Elmer, opened the first of several Kurt D. Laundromats in Chicago in 1971 and operated the group for more than 30 years before selling them in 2002.

“I learned about myself that I had the capacity in order to be able to step up. I really had no choice. The economy tanked and I needed something that would be not totally recession-proof but something that would not be affected by the downturn in the economy.”

In 2009, Kurt bought his first store, a 4,000-square-foot facility on Chicago’s South Side. He devoted mornings to the laundry before starting his shift at the car dealership after lunch.

“It gave me the understanding that I could balance the two by establishing a schedule, putting myself in a schedule and a routine. That helped me to be more dependent on being organized.

“Balancing between the dealership, 50 hours a week, and running to the Laundromat daily, checking on the washer and dryers, the repairs, the coin collections … now, several years later, I’ve got seven locations throughout the city of Chicago and that’s what I do full-time.”

Cargle has partnered with pickup/delivery service Rinse; his business operates a van that makes daily pickups from the Rinse warehouse, transports the dirty clothes to one of his Neighborhood Laundromats for processing, then returns the cleaned goods to Rinse.

He and two family members collect money from the laundries but he otherwise leaves the day-to-day operations to his staff. Cargle says he recently purchased a shopping center in a South Shore community and that new venture is occupying his time at the moment.

Cargle says that growing more confident in delegating responsibilities, as well as leaning on his Islamic faith, has helped him find balance, but he admits that it is a “task.”

“I think that, many times, a lot of us, we get into a business and become what I refer to as ‘technicians,’” Cargle says. “We’re desirous to be self-sufficient, to do for self in entrepreneurship, but oftentimes, we fall into a person who is just self-employed. We take all of the responsibilities upon ourselves to achieve.

“I think that is one of the biggest things I had to realize, that I couldn’t be that individual … I had to make certain I chose the path of entrepreneurship, by attracting other talent that would be able to assist in operation of my business.”

VARYING DEGREES OF SERVICE

Moving from self-service laundry ownership into a pursuit that’s more full-service is often a natural progression. But for Louisiana’s Jared Johnson, things kind of happened in reverse.

Johnson’s laundry career started in 2002 as a driver for Starc Commercial Linen Service in Slidell. A couple years later, he was offered the chance to become plant manager, but he declined because he didn’t believe he was ready for the responsibility.

In 2006, the offer was made again, and this time he accepted. He ran the Starc Commercial plant until 2013, when he became general manager for Starr Textile Services in Harahan. He held that post until 2015.

It was during this time that he met entrepreneur Len Bazile Jr. Bazile owned three coin laundries and a convenience store. He was running a commercial route out of his Kenner laundry and was looking to either grow or sell that business. Johnson heard that Starc was closing down and put Bazile in touch with representatives there.

Bazile asked Johnson to partner with him and in October 2015, Dirty Laundry Linen Service was born. The business processes table linens for party rental, event venues and caterers in and around New Orleans, the Northshore area and the Gulf Coast. It’s now exploring opportunities serving food and beverage departments in hotels.

The following year, Johnson bought into Bazile’s two Hollywood Laundry coin stores in Kenner and Jefferson, and he’s been splitting his time between the com-

mercial operation and the self-service stores ever since.

“A typical week would consist of me spending the majority of my time at the commercial laundry. And then I’ll split a day between the two coin stores,” Johnson says. “So I’ll go over on a Wednesday and spend some time that morning in our store in Kenner and then in the afternoon in Jefferson. Both of those stores are staffed and we have a store manager in each one.”

Johnson is quick to credit the teams in place at Dirty Laundry and Hollywood Laundry for their success.

“It all starts with the team, in our eyes. The team is going to support the customers, the customers supports the business, the business supports the owners, follow that circle. Without any one of those links, you don’t have that circle.”

Dirty Laundry has added a production manager, executive assistant and maintenance technician over the last year.

“We’re starting to put those pieces in place in the commercial laundry, too, to give Lenny and myself some time to be able to step back. We’re firm believers that if you’re stuck working in the business, you can’t work on the business.”

While some might see tackling multiple ventures as splitting an owner’s time to the point it could derail their effectiveness, Johnson believes that this type of variety keeps him interested and engaged.

Besides the two businesses, he serves as a deacon at his Slidell church and works on a committee organizing the community’s big annual senior citizen celebration.

“I think it’s the mindset that I have of knowing that burnout can occur if you get focused on one thing for too long,” he says. “The big picture is obviously the laundries. We want the laundries to be successful. But if we get stuck working in the business instead of on it, then we’re not doing ourselves justice and, more importantly, we’re not doing the business justice and allowing it to grow.

“I think having these other outlets and being able to balance the time between them, it gives us time to rejuvenate the batteries so we can make sure we’re being as productive as possible.”

“It gave me the understanding that I could balance the two (pursuits) by establishing a schedule, putting myself in a schedule and a routine.” —Kurt Cargle, Chicago

Laundromat Life Cycles:

Planning for the Future

by Bruce Beggs, Editorial Director

Like every small business, a Laundromat must navigate its life cycle successfully to ensure longterm success.

At Clean 2019 in New Orleans, the Coin Laundry Association enlisted Brian Brunckhorst, president of Advantage Laundry Inc., a company with six selfservice laundries in Northern California, to discuss Laundromat life cycles and what’s involved when planning for the future.

His educational session explored equipment replacement and lease negotiations as well as tracking a store’s present value.

There are six stages to a business life cycle, says Brunckhorst: seed/development; startup/launch; growth; expansion/shakeout; maturity; and decline/renewal.

The seed or development stage is the birth of the business. “For some reason, there’s some catalyst that drives us into business as entrepreneurs,” Brunckhorst says, citing the writings of The E-Myth and The E-Myth Revisited author Michael Gerber. “And we say, ‘We can do this better than somebody else.’”

Oftentimes, an entrepreneur is working at a job and becomes dissatisfied with what they’re doing or are looking for a new challenge, so they start their own business.

They analyze the industry, develop a business plan and do all the preparatory work leading up to the launch.

“I think of a launch kind of like a rocket ship almost, sitting on the launchpad. When the doors open up, it takes off,” Brunckhorst says. “But did you ever notice that when rockets take off, they don’t just go straight to the moon? They kind of

just sit there for a little bit, barely moving, and they slowly start creeping upward, a gradual rise.”

And as they build momentum, there’s a resistance that they have to push through. “It’s like when a rocket breaks through the sound barrier. All of a sudden, boom! The resistance starts to fall away and the business starts going up, almost effortlessly.”

But then things reach a point where the owner is concerned their business might be growing too much and their instinct is to pull back.

“They know for their business to really operate properly, it has to run on systems,” Brunckhorst says. “They want their systems to take over that operation and see how that goes. And they prepare for what’s next, the shakeout stage.”

It’s at this point that the owner identifies certain aspects that aren’t working and revises their systems to compensate. Also, the owner has probably reached the point where they’re working less in the business and more on the business, enabling them to look into expansion of services and/or locations.

As the cycle moves from expansion into

maturity, revenue is consistently high and ownership can take time off to enjoy the spoils of their labor. But soon, almost imperceptibly, sales start to fall. Owners might blame it on the economy, the competitor that’s retooled their store down the road, or demographic changes in the neighborhood.

“Whatever it is, they’re starting to run out of time,” Brunckhorst says. “When they run out of time, they realize it because the landlord comes by and says, ‘Hey, you’re out of your lease,’ takes back the space and you’re done. That’s the life cycle.”

KEY TO MAXIMUM ROI IS CREATING VALUE

So how do you set up your business to maximize your return on investment if/ when the time comes to sell it? It’s about creating value, Brunckhorst says.

Business valuation is done in one of three ways: the cost approach, the intrinsic approach, and the income approach.

The cost approach to value calculates “the cost to build that business. If it’s a Laundromat, how much did it cost to actually build that Laundromat?” ▼

(Image licensed by Ingram Publishing)

The intrinsic approach to value, usually used for placing a sale price on a business that isn’t profitable, takes into account the time remaining on the lease, the leasehold improvements, the utilities, residual value remaining in the laundry equipment, etc.

The income approach to value is based on how much income the business is producing, Brunckhorst says, and is how the “vast majority” of operational U.S. businesses are valued.

“When we talk about income valuations, there are a lot of different methods. One of the most finely tuned methods to the income approach is by using something called a Store Value Multiplier (SVM),” he continues.

The SVM uses the average monthly net operating income and a base multiplier of 50 adjusted up or down based on multiple factors. The typical SVM lies between 45 and 65, and a store’s value is equal to the SVM multiplied by the average monthly net operating income.

Factors that cause SVM adjustments can include lease length and terms; equipment age and condition; the number of competitors and their vend pricing; customer/competitor demographics; competitor amenities and parking; and the local cost of living.

“Lease length is the most important adjustment,” Brunckhorst says. “The other one is the equipment age. How old is that equipment?”

A lease length of 15 years would have no effect on the SVM. A length of 16 to 25 years would cause the SVM to be adjusted upward. Leases of 14 years or less would cause the SVM to be lowered, with periods of three years or less causing the greatest subtraction. An expiring lease, for example, would drop the SVM by 30 points.

Using this valuation approach, a store with a 15-year lease and no other adjustments has a base multiplier of 50. If that store’s average monthly net operating income is $4,000, the store would be valued at $200,000.

“If you had a store with a lease length of seven years, you would be subtracting 4.5 points from the multiplier … and the value of the business would drop to $182,000, just because of the lease. If there were only two years left on the lease, your multiplier adjustment is minus 18, bringing your value down to $128,000. As you can see, the lease is pretty darn important.”

Lease negotiations take place in stage one. “If we know the length of the lease

has a huge value on our business, it’s important to have a lease length to allow us to maintain the value of our business over the course of our Laundromat life cycle.”

Lease documents are lengthy and complicated, Brunkhorst says, and he suggests hiring someone to assist you. At minimum, have an attorney review the proposed agreement. Commercial leases are generally slanted to favor the retail property owner, he says.

When negotiating, keep your cool. Negotiations are always a give and take. Start with your “dream” lease terms (five years to start, with four five-year options, no rent increases and no property usage restriction, for example) and go from there.

“Remember, options give you power,” he says. “The length of the initial lease gives them power.”

Brunckhorst recommends seeking the following when negotiating a lease:

• Minimum length of 15 years, but preferably 20 or more, including options.

• At least one five-year option to renew the lease regardless of lease length.

• Rent increases no more than once every five years.

• Rent increases to be no more than Consumer Price Index increase, with a 4% cap per year.

• Rent payments to begin at no more than 20% of gross revenue or $2 per month/square foot (including triple net, if any).

• Rent payments without triple net.

• Right to assign the lease.

• First right of refusal to buy building.

• Cancellation option in case the building is damaged.

• No personal guarantee.

• Performance clause: If you can’t use the building, you don’t have to pay rent.

• Right to sub-lease the building.

• No limitation on type of use.

• Right to place any signage you want.

• Right to choose the utility companies.

• Exclusivity clause: No other business in the building or center can operate a Laundromat or wash and fold service.

• Rent payment includes the water bill.

Equipment carries a separate adjustment factor, Brunckhorst says: “In this particular adjustment, what we’re really interested in

knowing is the average age of the equipment in the store.”

For example, multiply the total number of top loaders by their average age to calculate the total age of that equipment group. After doing the same for front loaders and dryers, by adding their total ages and then dividing that figure by the total number of machines, you arrive at their true average age.

Equipment age adjustments can add as much as 4.5 points to the SVM or deduct as much as 10 points, Brunckhorst says. The base adjustment for equipment that is 3 years old is zero. If the average equipment age is 2 years old or less, points are added. If the age is 4 to 13 years old, points are deducted.

WHEN IS IT TIME TO SELL?

The point at which an established business is no longer making money— decline—is a “terrible” time to try to sell, Brunckhorst says.

The expansion or shake-out stage—the point where sales are peaking—is the best time to sell. A laundry typically reaches that stage between years two and four.

“Your lease length, if you negotiated properly, is still greater than 15 years at that point,” Brunckhorst says. “And the age of your equipment isn’t (greater than) three years, so you’re not getting hit with the two major things that could hurt your valuation.”

The beginning of the decline stage, somewhere between years seven and 12, is the best time to re-equip a laundry. Most business loans have been retired by that time, your equipment is still useful and has some replacement value, and advances in technology and reductions in utilities offset the cost of debt service, Brunckhorst explains.

“The technology keeps improving and reduces your utility costs … and it extends your life cycle,” he says. “When you reequip, your expenses drop and you start a whole new life cycle.”

The renewal phase is also the best time to renegotiate your lease.

“You tell the landlord, ‘I’m going to reequip my store and I’m going to spend all this money. I want to extend and get some more options.’ If you’ve been a good tenant and they see you’re going to put a lot of money into rehabbing the business, they’re very likely to extend your lease.

“It makes it all worthwhile. Then, you get to play the game all over again.” ACO

Brunckhorst

ESD® is the premier supplier of payment systems to the self-service laundry most reliable and technically advanced value transfer systems for nearly 50 excellence within the industry, ESD® continually challenges current technology In addition to technological advances, ESD’s® dedication to security ensures system rests under total control of its operator. Devoted to our customers, only products of high quality, but also personal service and support. Contact us to see which Add Value Machine is perfect for your needs.

Building Relationships for Better Business

Iwas a rock star in another life,” laughs Sara Howell, a selfdescribed karaoke queen who sings to favorites like Pat Benatar. She says the best women rockers have something in common: they’re “all about the performance.” No pretense; just hard-working, passion-filled music.

It’s not unlike the passion that fuels Howell as she rocks things behind the scenes and one-on-one in the world of commercial laundry.

She grew up in Newton, Iowa, not far from where the renowned Maytag company first began production.

She was steeped in Maytag culture throughout her youth — thanks to her father, Leo Yokiel, who worked at Maytag for 36 years, with the final 15 as director of marketing for Maytag® Commercial Laundry. Howell’s mother, Judith Yokiel, also worked at Maytag, so every facet of the appliance industry became a fascination for Howell.

“In college, I was actually known as a Maytag Girl, because of where I grew up and the fact that my family was so involved in that business,” she says.

She majored in communication studies at Iowa State University, and by the time she graduated, Maytag was hiring. Howell earned her first role as a district account representative in 2002. The position took her to Greensboro, North Carolina.

“This was my first territory, and it was a lot of fun,” she says enthusiastically.

Over the next two decades, Howell found herself rising through the ranks, as she worked with a diverse set of customers. She discovered a particular passion for collaborating with distributors to rebuild territories, bringing renewed success by leveraging today’s technologies and marketing capabilities.

“I still talk with a lot of the folks I met when I first started,” she says. Their wisdom has guided her throughout the years, and provided valuable insights into relationship-building.

Today, Howell is the Southeast regional sales manager for Maytag® Commercial Laundry, including the Whirlpool® Commercial Laundry and ADC™ Laundry brands. She’s got 17 years under her belt, and her enthusiasm remains unchanged.

“The appliance business is fun,” she says. “You get to really bring your personality to it.”

Capitalizing on her marketing background and education, Howell uses these opportunities to design effective marketing strategies, and to work closely with distributors and Laundromat owners alike.

“I’m in the business of creating long-term relationships,” she notes. “I love being around people, and I take a lot of passion and care in what I do.”

Howell says she appreciates that her role brings new challenges

each day — and she particularly enjoys taking on tasks that others might not think she’s up to.

“I get to travel, work with sales teams, meet with potential owners and investors, and more,” she says.

Right now, Howell says she’s excited to be part of a team working to establish and launch a new Laundromat in the Southeast.

“We’re in the beginning stages. So we’re looking at it not only from a design perspective,” she explains, “but we’re also working on the store itself, from start to finish. We’re also considering marketing, demographics, and more, so we can decide exactly where we should be. The process has been very interesting.”

Howell believes she and her team are well-positioned to help potential owners in the vended laundry industry.

“Technology is advancing, and the industry is changing,” she says. “We’re integrating everything we do — from the store, up.”

At the store level, owners can now use connectivity to easily change time-of-day pricing on their machines, from wherever they are. Meanwhile, at the corporate level, technology is driving huge shifts in marketing efforts.

“When my dad was doing this, it was all about mailers and print advertising,” she says. “Now there’s a social media aspect to consider, and the reporting has changed. We have to think very strategically with everything we do.”

And in between, there’s always the relationship — the thing that continues to drive Howell to take on every new challenge.

“At the end of the day,” she says, “building a relationship is about being there consistently to support them with their needs. And as my amazing mentors in the company have always reminded me: Ultimately, it’s all going to be alright.”

‘Maytag Girl’ enjoys collaborating to develop successful laundries

Sara Howell (left) assists a visitor looking over Maytag equipment during the 2019 Clean Show in New Orleans. (Photo: Maytag® Commercial Laundry)

SALES SERVICE PARTS ROUTE

OUR SPIN ON LAUNDRY

Simply put, our goal at Laundry One, is to provide our customers with the best value and best service in the commercial laundry industry.

Whether you are a Coin-Laundry operator, a Multi-Housing facility, or an On-Premise laundry facility, our products and services will provide you with the best ROI. Our commitment to building strong customer relationships paired with unmatched experience, will consistently deliver a first-class experience for our customers.

OUR TERRITORY

SALES

SERVICE

With our fleet of service vans, factory-trained technicians, and unlimited parts inventory, we have the resources to get repairs done quickly and efficiently for all equipment brands.

PARTS

Laundry One stocks thousands of commercial laundry parts. Our Parts Store has the equipment to get your machines in service quickly and cost-effectively.

LAUNDROMATS ARE A BUSINESS, NOT A HOBBY

We need to talk about the public’s perception of what they think it’s like to own a Laundromat.

During my 41-year career in the industry, I can’t tell you how many times I was asked about owning a mat. I was approached many times by my own customers. I was also cornered at parties by inquiring minds, and by other shopkeepers in my shopping centers who were not happy with their own businesses.

Seems that people are fascinated with our industry, and rightfully so. But what do they really see?

They see a store loaded with customers using washers and dryers, and maybe one or two attendants on hand.

They rarely see you, the owner, but if they do, they see you come for a few hours and then leave, probably for another location.

They note that you’re “hardly ever there.”

They see you collect the money, fill the vending machines and ATM, oversee the employees and dropoff service, and repair a machine or two that may be out of order.

They see you, every now and then, engage in some kind of improvement or upgrade.

They see a cash business with no accounts receivable.

They figure that mats are recession-proof (and they are, to a degree, but they’re more like recessionresistant).

They see no perishable inventory. In fact, they will see very little inventory at all. (Maintaining a big inventory is time-consuming and expensive, and causes worry about the supply chain being interrupted. Mats don’t have that problem.)

They see no inventory shrinkage, or shoplifting worries.

They see no shipping headaches.

They see no product returns.

They see, in many cases, no delivery service.

This is a simple, easy business to operate, they think. A business I could run in my spare time while keeping my “real” job, they muse, almost like a hobby. After all,

people have to do laundry, and if this owner can run this store part-time, so can I.

These are all real and valid truths about our industry. But while a mat is easier to run than, say, a restaurant, it is not as easy as it looks!

Mats are real businesses that must be managed as such, requiring technical skill, determination, and lots of capital, luck, and general business management skills.

CERTAIN SKILLS ARE NEEDED

To give you an idea of just how out of touch some people are about owning a mat, the most common question I received over the years was, “Do I have to know how to fix the machines for this business?” I even had people ask me as I was fixing a machine right in front of them

I was tempted to say, “No, the machines just fix themselves,” but better judgment prevailed. I’d tell them, “Well, yes, of course! Every business requires certain skills for you to remain competitive. I wouldn’t open a restaurant if I didn’t know how to cook.”

You have to consider that a mat is basically a store packed full of sophisticated, electromechanical computerized equipment, each one having a hundred parts or more. If you are not skilled at diagnosing and fixing this equipment, you can easily become overwhelmed in a matter of months. The good news is that equipment distributors offer classes to help you learn.

I have a few friends who have big, successful mats and can afford to pay outside mechanics to maintain their equipment. A couple of them have multiple big mats and can afford their own in-house mechanics, but even they are not afraid to pick up a wrench or a test meter.

In the beginning, I couldn’t afford to pay anyone, so I did all my own repairs. I was handy, so I took well to this business. Later on, I eased back and called in mechanics for the heavy work such as tub bearing jobs. Right up to my retirement, I enjoyed troubleshooting and fixing the everyday stuff.

So besides being handy, or at least having a propensity for electromechanical equipment (and nowadays a skill for computerized equipment), what other things are required?

Understand that there will be emergency calls. Not

Paul Russo

if, but when.

I experienced break-ins, armed robberies, fires and floods. There were gas, electrical and water outages. I ran across homeless people so stoned that they had passed out on the floor and I didn’t know if they were dead or alive. There were customer fistfights, you name it. While I was not always in my stores, I learned how to manage them well over the years; I was always on call 24/7 for emergencies!

Taking a vacation was difficult for me. I worried there might be an emergency that would require me to come home, even though I had excellent employees. Some hobby, eh?

So, if you think that you can own a mat without any business experience, show up once in a while, take the cash out and live happily ever after, think again. There are pitfalls along the way.

Now, I do know a couple people who actually run their mats successfully from far away. They are really talented business people, a rare breed. If you have good family who you trust, you may be able to spend some time away.

Then there are the customers. Even if your mat is awesome and running smoothly, customers will complain. That’s just the nature of retail. If the store is dirty or crowded, machines aren’t working perfectly, employees are rude, your parking is lacking, etc., they will complain. You and your crew should do everything possible to keep your customers happy.

It is important to address and cure customer complaints. Most of the time, a customer is actually doing you a favor by complaining. They are pointing out a defect that you may not be aware of, so thank them! The last thing you want to do is ignore them. If you do, you risk racking up bad online reviews that can hurt your business. Promptly resolving complaints tends to get you great reviews.

So, I hope you can see that it’s crucial to understand that while mat ownership may look like a hobby, it is indeed a business in every sense of the word!

DREAM HOBBY? NAH, DREAM BUSINESS

So how do you turn your dream hobby into a dream business? You’ll need to have a business plan. Here’s how to get started:

• Join the Coin Laundry Association.

This is the best advice I can give you here. It offers a wealth of information that could easily make the difference between your success or failure. Its forum is frequented by lots of industry veterans, including yours truly.

• Have sufficient capital.

This is a capital-intensive business. The equipment and its infrastructure can get really expensive, so be sure you can afford a mat in the first place.

• Find a location that has great potential, whether you are buying an existing mat or building new.

If you are buying, you must be able to verify all the income and expense numbers the seller will give you. This is important because sellers sometimes stretch the truth.

If you are building new, you have the advantage of the distributor, who can be of great help to you in many ways. For instance, they can help you with financing. Just make sure you check references well because you will be trusting a stranger with your life savings.

If you find a location that has old washers, you may want to retool the store with new equipment, thereby gaining access to your distributor’s knowledge and help.

In the long run, it’s much better to own your own building, but this can be quite expensive. If you lease, you’ll have a lot more good locations to choose from, but then you have to deal with a landlord, which can be difficult, especially for a newbie.

Consult a good real estate attorney who can advise you on leasing. Generally, you’ll want as long a lease as possible. Without a good lease that is reasonably assignable to a new buyer, your business will be worth next to nothing when it’s time for you to sell.

• Hire and manage great employees.

This can be challenging, especially if you’ve never done it before. They are literally the face of your business. You need to become skilled at interviewing, choosing the honest and hard-working, filing all the paperwork for Uncle Sam, maintaining an ever-changing work schedule, and managing them so they are happy and willing to stay with you for the next few years.

• Consider doing some advertising.

Nowadays, nearly everyone uses the Internet to see which stores they may want to patronize. Guess what everyone looks at? Reviews! The more 5-star reviews your mat has, the more customers will come by. That’s why I urged you to pay good attention to customer complaints. You’ll want to go online and claim your mat’s Facebook page, Yelp page, Google, etc.

Once you have your physical location, a great lease, built or remodeled your mat to look better than your competitors, have your crew ready to go, and spread the word about your business, you’ll want to have a grand opening.

Here’s a little tip: have a “soft” opening for about a week. By this, I mean when you are ready to open, just quietly open with no hoopla. Customers will trickle in. Use this time to work out any kinks before your grand opening.

When someone looks at a well-run mat, they see a thing of beauty, because such a mat is probably being operated by a seasoned mat veteran. An expert in the business, if you will, and experts in any field always make it look easy.

Be wary of opening a new “hobby” mat anywhere near an expertly run mat. Seasoned veterans will have the advantage when competing against newcomers.

Paul Russo owned and operated multiple Laundromats in New York City for more than 40 years before retiring last year. He’s a regular on the Coin Laundry Association’s online forum, posting under the pseudonym “Paulie B.” He invites comments from readers at MyLaundromat@aol.com.

MONEY-HANDLING EQUIPMENT

AMERICAN CHANGER

American Changer says it helps provide value and security to operators by developing practical and cost-effective solutions.

The AC2225 (pictured), which features pull-out hoppers and MEI Recycler options, is a highcapacity rear-load machine. Many of American Changer’s products can be purchased with the Remote Access Board, which enables operators to monitor the status of their American Changer machine(s) remotely.

The Remote Access Board allows access to a secure, convenient webpage that displays audit information and current machine configuration. The webpage also provides validator/ hopper/credit card system and printer status reports, as well as full audit information.

An e-mail or text message will be sent to the operator should any troubleshooting occur, maximizing machine uptime. This provides valuable, real-time information to operators while offering convenience and ease of use, the company says.

American Changer this year has entered into asset purchase agreements with Rowe Bill Changers LLC and Triad Design Group Inc., uniting three reputable brands of money changers and reinforcing American Changer’s vision to remain at the forefront of ingenuity.

www.americanchanger.com 954-917-3009

STANDARD CHANGE-MAKERS

The EF+ Module from Standard ChangeMakers is an optional feature (and included in some change machine models) that provides more control over your machine, and gives more feedback via the LCD display, the company says. The module is a menu-driven device that has programming, diagnostic and audit functions — allowing owners to manage their change machine and business.

The EF+ Module is equipped with an Ethernet port. By plugging an Ethernet cable into that port and connecting to an on-site network router, owners can program the module to send SMS text messages to their smartphone or e-mails to their phone, computer or tablet.

It can be programmed to send a daily audit report and alerts when the machine has an “Out of Service” condition, such as hopper empty, bill validator stacker full, etc.

The EF+ Module is available as an optional feature on all change machine models, and can be retrofitted on any existing change machine that has Modular (MC) technology, the company says.

www.standardchange.com 800-968-6955

aundromat owners have proven that accepting higher-value dollar coins eliminates up to 80% of quarters from money boxes, Imonex says.

Circulating dollar coins minimizes collection duties, while maximizing money vault and changer hopper capacities, the manufacturer adds.

Imonex acceptors are precision-crafted to validate up to four coin/token combinations with two values — typically $1 and 25¢. Customers insert at the drop’s single inlet, initiating a roll-down separation and pulse generation corresponding to each higherand lower-value coin or token.

Going credit card is affordable, Imonex says, with only one reader needed for an entire Laundromat. Employing a single-point credit card-to-token dispenser and leveraging the Imonex’s token acceptance capability offers a cashless pay option at every machine without individual readers, the company says.

Accepting tokens means in-and-out collections. Owners pull bills and tally credit card receipts. Imonex says circulating tokens is an economical alternative to proprietary loyalty card systems by offering point-of-purchase credit/debit card pay and promotions, as well as eliminating attendant dropoff laundry coin banks and cash refunds.

The Imonex drop’s Geometric Vertical Technology substantially reduces jams, providing unsurpassed coin flow, the company reports, adding there are no moving parts and no required adjustments.

www.imonex.com 800-446-2719

KLOPP INTERNATIONAL

The Hitachi iH-110 Currency Counter/Sorter, distributed in the United States by Klopp International, is a banknote counter that utilizes image processing technology to recognize banknotes and sort denominations.

The iH-110 features “Full Color Imaging with Dual CIS scanning,” which scans both sides of the bills to reduce unwanted rejects. The two-pocket design, with a stacker and a reject pocket, allows the iH-110 to count and off-sort without stopping. Having a reject pocket also allows the machine to “face” and “orient” the direction of the bills for daily bank deposits and/ or ATM.

Counting modes include mixed (counts mixed money, providing grand total and itemized count), single (counts one denomination and sorts all other denominations into reject pocket), count (counts all bills, providing quantity total), face (faces all bills, either heads up or heads down), and orientation (orients all bills in proper direction, heads facing right or heads facing left).

The iH-110 offers full counterfeit detection, a 4.3-inch color touch screen and user-friendly menu. It’s easily upgradable using USB flash drive, Klopp says, and jam removal is made easy thanks to two openings from the front and rear side. www.kloppcoin.com 800-356-9080

SETOMATIC SYSTEMS

Setomatic Systems provides drop-coin meters for many makes and models of laundry machines designed for Laundromats.

The company suggests replacing older turn-knob dryer meters with an up-to-date drop-coin meter that features a digital display and time countdown. The meters are adjustable in 15-second increments and are easy to install, Setomatic says.

If your laundry still has plastic drop coins, Setomatic has all-

metal drop-coin replacements. The company also makes dropcoin meters to replace the coin slides on most machines.

Multi-push insertions on Wascomat washers can be eliminated with a drop-coin meter, Setomatic says.

The company also offers aftermarket drop-coin meters to replace factory-installed units on many front-load washers.

www.setomaticsystems.com 516-752-8008

MONARCH COIN & SECURITY

Monarch Coin & Security Inc. offers slides for quarters, foreign coins and tokens; coin boxes for all brands of machine; locks and keys; extensions; guards (coin box guards and full body armor to cover the meter case); reusable locking key rings; coinor tokenoperated bathroom door locks; and other products for coin laundries.

Family-owned and -operated since 1903, Monarch Coin & Security Inc. prides itself on customer service. It can key all items alike, in groups or all differently, at no extra cost, the company says. Most orders ship within three days.

The company also carries Vend-Rite soap dispensers and American Changer machines.

www.monarchcoin.com 800-462-9460

perators who prefer the economy and simplicity of coin slides can select from ESD’s four basic models, which include a four-coin, five-coin, eight-coin, and a 14-coin slide model.

The vertical slides can be configured to accept various quantities and denominations of coins, ranging from 5¢ to $3.50. The company says it manufactures 72 different slides, which will accept coinage of most countries, for international markets. In addition to currency, ESD also builds slides designed to accept various tokens.

All slides are equipped with several security devices— designed with components made of stainless steel, magnets and case hardened parts—that defeat attempts to slug,

string, wrap, tape, or any variation of “pull back” cheating, the company says.

ESD also manufactures a variety of money boxes, with security design features like case hardened steel faceplates, a four-point locking system, and a cone that provides extra protection for the lock, which is additionally available. Four different options of lock styles can be purchased with each of its boxes.

Coin trays are available in 6-, 8and 9-inch lengths, with faces available in several finishes, including powder black, chrome and powder blue.

www.esdcard.com 215-628-0860

OUR SISTER WEBSITES

From AmericanLaundryNews.com:

Distributors Gearing Up for Fall Show Season

Summer runs its course this month, which means a calendar full of opportunities for vended laundry owners and investors to attend distributor special events and open houses is right around the corner.

Here is a brief rundown of events through October as reported to American Coin-Op Call, e-mail, or visit the website listed for registration information. In many cases, space is limited.

Sept. 13-14 — Gold Coin Laundry Equipment Annual Founder’s Day Sale, Jamaica, N.Y.; https://www.goldcoin laundry.com/foundersdaysale/.

Sept. 14 — ACE Commercial Laundry Equipment Distributor Show, Westminster, Calif.; 714-897-4342, https://acelaundry. com.

Sept. 14 — PWS Inc. Fall Show, South San Francisco, Calif.; 650-871-0300, www. pwslaundrywest.com.

Sept. 17 — Statewide Laundry Equipment Road Show, Kissimmee, Fla.; https:// www.statewidelaundry.com/roadshows.

Sept. 18 — Aaxon Future of

Laundromats Tech Expo, Miami, Fla.; https://www.aaxon.com/sign-up.

Sept. 20 — PWS Inc. Fall Show, San Diego, Calif.; 858-560-6969, www.pws laundrywest.com.

Sept. 21 — Martin-Ray Laundry Systems Distributor Show, Albuquerque, N.M.; 750359-8000.

Sept. 21 — PWS Inc. Fall Show, South Gate, Calif.; 800-307-1234, www.pws laundrywest.com

Sept. 25 — Statewide Laundry Equipment Distributor Show, Hialeah, Fla.; https://www.statewidelaundry.com/ roadshows

Sept. 28 — Martin-Ray Laundry Systems Distributor Show, Denver, Colo.; 750-3598000.

Oct. 1 — Minnesota Chemical Co. Open House & Service School, Menomonee Falls, Wis.; https://www.minnesotachemical.com/ free-fall-shows

Oct. 1 — Statewide Laundry Equipment Distributor Show, Smyrna, Ga.; https:// www.statewidelaundry.com/roadshows Oct. 3 — Minnesota Chemical Co.

Open House & Service School, Shoreview, Minn.; https://www.minnesotachemical. com/free-fall-shows

Oct. 3-4 — Laundry Solutions Co. Annual Trade Show, Branson, Mo.; https:// www.laundrysolutionscompany.com/onlineregistration/.

Oct. 8 — Western State Design - Dexter Service School, Hayward, Calif.; www. westernstatedesign.com

Oct. 10 — Equipment Marketers 26th Annual Trade Show & Service Seminar, Cherry Hill, N.J.; 800-223-1376; https:// www.equipmentmarketers.net/events.

Oct. 10 — Western State Design - Dexter Service School, Cerritos, Calif.; www. westernstatedesign.com.

Oct. 15 — D&M Equipment Dexter Service Seminar, Skokie, Ill.; 773-889-5500.

Oct. 17 — Laundry One Open House, Canal Winchester, Ohio; 800-800-0322, www.laundryone.com

Refer to the AmericanCoinOp.com Calendar at any time for the latest events information! ACO

AMERICAN CHANGER PURCHASES TRIAD DESIGN GROUP ASSETS

American Changer Corp. reports it has finalized an asset purchase agreement with Triad Design Group Inc., a manufacturer of self-serve money changers serving a variety of industries, including Laundromats.

Terms of the agreement weren’t announced.

American Changer says that Triad’s culture of providing highquality products and services, along with developing long-term relationships with customers, supports its continued growth plan and accelerates innovative product development.

Products and parts for Triad changers will continue to be sold under the Triad trade name. Triad’s principal owner, Chuck White, will join the American Changer team as national accounts manager following a brief transitional period.

In his new role, White will focus on several projects, including relationship continuity with Triad customers, sales growth in new and existing markets, and product development.

American Changer’s manufacturing and corporate center in Fort Lauderdale, Florida, will provide products and services, with the absorption of Triad’s product line into American Changer’s

expanding portfolio supported by its dedicated and experienced team members.

American Changer says the acquisition unites three brands of money changers—Triad, Rowe and American Changer—and reinforces its vision to remain at the forefront of ingenuity.

PELLERIN MILNOR CORP. PRESENTS DEALER NETWORK HONORS

Pellerin Milnor Corp. hosted a banquet and awards ceremony during June’s Clean Show in New Orleans for its dealer network to celebrate the previous year’s sales efforts.

The following top sales awards were presented to Milnor dealers by Pellerin Milnor President and CEO James W. Pellerin.

The 2017-2018 Key Man winners were: Bill Bell, Rich McKevitt and Ralph Tuccillo of Steiner-Atlantic Corp., Miami; Wayne Currie of Dalex Co., Concord, Ontario, Canada; Steve Hickey and Barry Speizman of TLC Tri-State Laundry Companies, Valdosta, Ga; David Johnson and Shawn Ryan of Pellerin Laundry Machinery Sales Co., Kenner, La.; Carl Rees and Gabe Rees of Loomis Brothers Equipment Co., Fenton, Mo.; Chris Tabling of O’Dell Equipment & Supply, Louisville, Ky.; and Kyle

Zabrin of Equipment International, Skokie, Ill.

Carl Rees was also presented with the “Lifetime Key Man Award” for receiving the Key Man award 11 times as of 2019— the most any Milnor dealer has been named a Key Man. Rees recently announced his retirement from Loomis Brothers after 39 years with the company.

TLC Tri-State Laundry Companies was awarded the “100/100 Club Award” for achieving quotas for various sales categories.

Milnor named Doug Gruber of A&B Equipment, Saginaw,

Mich., and Rick Thurman of Laundry and Cleaners Equipment Co., Phoenix, Ariz., as “Star Performers.”

TLC Tri-State Laundry Companies’ Bob Halpin was awarded the “Against All Odds” plaque for his persistence and success in sales.

Florian Ott of Milnor Deutschland Vertriebspartner GmbH in Germany was presented with the “Innovator” Award for his creativity and dedication in his marketing and sales efforts.

Milnor also named Brian McCann, Equipment International, the “Rookie of the Year.”

Clean ’19 marked the 25th anniversary as a full-line Milnor dealer for Appliance Traders and Oy Vestek A.B., and the 50th anniversary for Servicios Tecnicos SA.

Milnor’s Top Five dealers were also recognized. Beginning with first place, they were Pellerin Laundry Machinery Sales Co., Western State Design, TLC Tri-State Laundry Companies, Steiner-Atlantic Corp. and Yankee Equipment Systems.

LAUNDRYLUX ACQUIRES DISTRIBUTORS TEXAS COIN AND COMMERCIAL LAUNDRY AND DIRECT MACHINERY CORP.

Laundrylux has acquired certain assets of Dallas-based Texas Coin and Commercial Laundry, led by Mike and Kellie Blumberg, and of Direct Machinery Corp., Hicksville, New York, led by CEO Ron Hirsch, in separate deals. Terms were not disclosed.

While Laundrylux acquired Texas Coin and Commercial Laundry’s distribution business assets, its route segment was not

Carl Rees (center) of Loomis Brothers Equipment Co. was presented with the “Lifetime Key Man Award” for receiving the Pellerin Milnor Corp. Key Man award 11 times as of 2019, with Alyssa Kelly (left) and James W. Pellerin (right). (Photo: Pellerin Milnor Corp.)

MAYTAG COMMERCIAL LAUNDRY CELEBRATES WITH 60TH ANNUAL MEETING

In 1959, Maytag® Commercial Laundry hosted its first Annual Meeting at its Iowa headquarters. This June, more than 200 people from 18 countries attended the 60th Maytag® Commercial Laundry Annual Meeting and Awards Recognition at the Roosevelt Hotel in New Orleans.

The fast-paced, one-day event took attendees through several topics, including an up-close look at the new Maytag® Multi-Load Washer, product insights and industry trends; the Whirlpool® Commercial Portal; and an overview of Maytag® Commercial Laundry marketing support and programs.

“It’s exciting to witness a tradition as rich and storied as the Maytag® Annual Meeting,” says Randy Karn, Whirlpool Global Service Manager, Whirlpool Corporation Commercial Laundry, who has attended 33 of the meetings. “It’s an event that has evolved over the years based on locations, trends in the industry, and customers’ needs, but the ideals on which it was founded have remained steadfast. That is to celebrate our successes, communicate with our customers, and honor the brand’s achievements.”

“The Annual Meeting adds value to our relationship,” says Malcolm Caldwell, vice president of sales and marketing at distributor Harco Co. Ltd. “We look at the Annual Meeting as a comprehensive overview allowing us to learn about the year’s brand goals and objectives, examine products, share experiences with our peers, and perhaps most importantly, gain insights that help us capture sales and grow our business.”

The learning and exchanging of industry knowledge have always been a key meeting component.

“Whether structured as workshops, product demos or peer discussions, the goal is to form a foundation of success for Maytag® Commercial Laundry distributors, route operators and team members,” says Chad Lange, sales director of commercial laundry for Whirlpool Corporation.

“We appreciate the opportunity each year to learn firsthand about the brand’s strategic plans for products and enhancements being made to product lineups,” says Richard LaMaina, Equipment Marketers.

During this year’s 60th Fred Maytag Awards Dinner, Maytag recognized the hard work that went into the past year. Distributors recognized included:

• Excellence Appliance Technologies, Quezon City, Manila, Philippines, winner of the Fred Maytag Award. Considered Maytag’s most coveted and prestigious honor, the award is presented to the distributor that best emulates the founder’s marketing philosophy and supports the brand with salesmanship, professionalism and integrity.

• CLA Malaysia, based in Kuala Lumpur, received the Maytag® Commercial Laundry Vended Excellence Award.

• Hercules Corporation of Hicksville, New York, was recognized as the Quality Partner of the Year.

• Harco Co. Ltd. of Mississauga, Ontario, Canada, was given the Marketing Excellence Award.

• SEBCO Laundry Systems™ of Raritan, New Jersey, was

presented with the Red Carpet Service® Award, which recognizes excellent service and dependability.

• PT Triton Internasional, of Jakarta, Indonesia, was named the International Distributor of the Year.

• CSC ServiceWorks, headquartered in Plainview, New York, was presented with the Multi-Housing Excellence Award.

• Aqualys of Paris, France, was the Maytag® Commercial Laundry Outstanding First Year Performer.

• Richard Jay, with locations throughout Australia, received the International Multi-Housing Excellence Award.

“The accomplishments we have achieved thus far as a brand have been attainable thanks to the tremendous dedication and support of our customers,” says Lange. “Collaboration is vital. We are not only proud of the successes we have achieved together with our reputable distributors over the past 60 years, but even more excited to witness what the future holds.” ACO

Fred Maytag leads the inaugural Maytag® Commercial Laundry Annual Meeting at Maytag headquarters in Newton, Iowa, in 1959. (Photos: Maytag Commercial Laundry)

Excellence Appliance Technologies, Quezon City, Manila, Philippines, won the 2019 Fred Maytag Award, the brand’s most coveted and prestigious accolade. Pictured during the June awards presentation in New Orleans are (from left) Chad Lange, Whirlpool Corp.; Tanny Chu, Whirlpool; Carlos Vasquez, Whirlpool; John Sioco, Excellence Appliance Technologies; and Trey Northrup, Whirlpool.

As your appetite for knowledge to improve your business grows, give our American Coin-Op Podcast a listen. Join Editor Bruce Beggs as he engages a special guest in one-on-one conversation about the topic of the day. This free channel provides another convenient way for you to gain self-service laundry information and insight from industry peers and other experts—no muss, no fuss.

CHECK OUT WHAT YOU MAY HAVE MISSED:

The Man Behind the Clean Show

Retiring show manager John Riddle talks Clean history and reminisces about his long career, including his time in pro baseball, stadium management, rodeo production, and more.

Managing Multiple Coin Laundries

Multi-store owner Luke Williford of The Wash House Inc. discusses best practices for making the jump to Store No. 2 and beyond.

Drop-Off Service Do’s and Don’ts

Fluff-and-fold can be a profitable service addition if handled properly. Consultant/ trainer Beverly Kay Blank shares her drop-off do’s and don’ts in this episode.

Perfecting Your Equipment Mix

Joel Jorgensen, vice president of sales for Continental Girbau Inc., weighs equipment mix and discusses getting it just right so your store can reap the maximum revenue per square foot.

of 5 words. Display classified rates are available on request. All major credit cards are accepted. DEADLINE: Ads must be received by the 18 Select Laundry Center Vending Machine Sales 515-480-4613 www.vendingmachinesales.com

1st of the preceding month. For Add pro t to your establishment by vending your patron’s favorite laundry goods.

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included in that purchase agreement.

“Our partnership with Texas Coin and Commercial Laundry solidifies our position in the key Texas market,” says John Sabino, CEO of Laundrylux. “Mike and Kellie have built a powerful business and respected brand that we can expand upon purposefully.”

“I am proud to partner with Laundrylux,” says Mike Blumberg. “They recognize the importance of local relationships and customer support and are committed to investing and growing. At the same time, providing us the freedom to manage our business. I have seen the dedication, resources, and support this company has provided to acquisitions, and we want to be part of the winning team.”

Meanwhile, Direct Machinery Corp. has represented Milnor and Chicago Dryer commercial laundry machinery with distinction for many years, says Sabino, serving diverse institutional customers with automated systems processing up to 15,000 pounds of laundry per hour, and more.

“With capital and technology resources from Laundrylux, Direct Machinery will accelerate its business development, adding sales and management talent under (Ron Hirsch’s) leadership,” adds Sabino.

Hirsch says he’s known Executive Chairman Neal Milch’s family and Laundrylux for decades, and that all are committed to long-term sustainable growth and share confidence in the industry’s future.

“Direct Machinery’s broad customer base of commercial laundries and large hospitality and healthcare on-premise laundries will be the foundation of our expansion,” says Hirsch, “and our partnership with Laundrylux provides continuity assurance to our customers.”

“I’m delighted as the third generation of my family in the laundry business that we will be working with Blayne Hirsch — also third generation — in growing Direct Machinery,” says Cody Milch, Laundrylux president. “Our industry needs young talent that’s excited about the future.”

Neal Milch says the acquisition “boldly expands” Laundrylux’s scope of consolidation of professional laundry distribution to encompass world-renowned manufacturers.

“We now serve all customers, from industrial and commercial laundries to large- and middle-market OPL, vended laundry, and route laundry,” he says. “Laundrylux’s financial strength, strategic manufacturer relationships, broad product portfolio, digital marketing, technology platforms, financing, and equity participation for distribution partners is unique in the industry.”

Laundrylux considers itself the largest integrated importer and distributor of professional laundry equipment in the world, serving the USA, Canada and Mexico. Distribution partners leverage Laundrylux’s financial strength, strategic brand relationships, innovative product development, and customer financing.

Meanwhile, Electrolux Professional supports the collective efforts of Laundrylux and its distribution partners with advanced products and technologies.

Texas Coin and Commercial Laundry and Direct Machinery Corp. become the fourth and fifth distributors acquired by Laundrylux this year, joining Automated Laundry Systems, CESCO NW and Golden State Laundry Systems in that group.

IMONEX LAUNCHES NEW WEBSITE Imonex Services Inc., which makes coin and token acceptors used in self-service laundries, reports it has launched a new website to showcase its expanding acceptor product line and help guide operators with innovative payment solutions.

Visitors to www.imonex.com are welcomed to navigate through the four core markets of laundry, car wash, amusement and vending served by the legacy manufacturer.

Support plays a key role in the revamped website, Imonex says, offering access to installation guides and case studies of the company’s dual coin and token acceptance at work. It also offers a library of instructional videos, along with answers to frequently asked questions on pay formats.

The company says its Imonexology blog will keep pace with hot topics, payment trends and the entrepreneurs whose businesses thrive in the self-service world by employing coin and token strategies.

LG TAKES LEAD IN WASHLAVA EQUITY FINANCING Mobile technology startup Washlava has taken next steps to further modernize the shared laundry experience, agreeing to the terms of an equity financing deal with LG Electronics. LG will be the lead investor in a Series A-1 equity financing.

Washlava’s technology allows customers to reserve and pay for laundry machines from their smartphones, managing the endto-end experience for both business owners and their customers, cultivating a cashless laundry network. Similar to the creation of cashless convenience stores, Washlava has created a digital environment and product that it says offers a connected and convenient consumer experience.

Meanwhile, LG Electronics has long been a player in the personal laundry market, creating machines that range from basic washers and dryers to fully integrated smart solutions with a range of clothing care options.

LG Electronics’ investment in Washlava will play to the strengths of each company, Washlava says, helping them both create future-oriented solutions that reach the next generation of users.

“We could not be more excited about this important partnership with LG,” says Todd Belveal, founder and CEO of Washlava. “LG’s capabilities and standing in the industry, combined with Washlava’s proprietary IoT technology and user experience, create a platform that cultivates growth and innovation in a market that is primed for modernization.” ACO

• Designed to deliver more strength, storeowner control & servicing ease.

• Advanced programmability of water temperatures, fill levels, cycle times, spin speed & vend prices.

• Individual sensors are removable & replaceable.

• New twin spray water-delivery system ensures a quality wash.

• Inverter Direct Drive provides superior durability & reliability.

• Optimized Washing System automatically detects over-sudsing & counteracts with a suds-reduction process.

• Quiet, energy-efficient & 400 Gs!

• Compact footprint & stackable configurations for more capacity &

per square foot.