American Coin-Op - November 2019

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SHAPING THE LANDLORD-TENANT

DID YOU KNOW...

American Coin-Op releases a new podcast on a different topic of interest the last Wednesday of every month? Give it a listen at AmericanCoinOp.com.

YOU PLANNED YOUR START, BUT HOW ABOUT THE EXIT?

Planning your exit strategy or succession plan means deciding if you want to sell the business outright, or perhaps have a child or other relative take it over. Jeff Harvey analyzes the factors behind both options.

WASHER PROGRAMMING TO BOOST EFFICIENCY, PROFITS

Many washer brands offer controls allowing for various levels of programmability, says Tod Sorensen. Laundry operators who take advantage of these tools may be able to cut utility costs, generate additional revenue and fuel store profits.

POINTERS FROM PAULIE B: WHERE ARE THE SAFETY HAZARDS IN OR AROUND YOUR STORE?

There are several areas in and around your store that can be potential hazards for customers and employees. Paul Russo says knowing how and when to manage these potential hazards can reduce the odds of someone getting seriously hurt, and lower your legal exposure.

Bruce Beggs

SECURE IN THE KNOWLEDGE

Walking in on a homeless man doing drugs in the bathroom.

Arriving to find shattered glass on the floor inside and Lord knows what taken.

Separating two irate customers quarreling over the same dryer.

Store security is a theme in this month’s issue. When I asked a handful of store owners about an unsafe situation they had encountered, these are what they shared.

Thankfully, none of them offered tales of themselves or their workers being robbed, physical assaulted or worse, but we know from news reports that those types of incidents do take place amongst America’s Laundromats.

Taking the proper measures to keep customers and employees safe and secure is paramount to running a laundry where people want to go, especially at night.

Where are the “danger areas” in your store? Check out my cover story, Practicing Sound Story Security, beginning on page 12 to learn where some in the industry are focusing their efforts to keep their stores safe and secure.

Columnist Paul Russo takes the safety theme even further with Where Are the Safety Hazards In and Around Your Store?, addressing store maintenance, attendant training, disaster preparedness and more. His Pointers from Paulie B column starts on page 30.

To quote the ’80s TV series Hill Street Blues, let’s be careful out there.

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

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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 11. 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.

NO CLEAR FAVORITE AMONG LAUNDRY OWNERSHIP SKILLS

What type of store owner are you? This quarter’s American Coin-Op Your Views survey asked self-service laundry owners to examine their workload, assess their skills and reflect on the business decisions they’ve made over the years, both good and bad.

Nearly 46% of respondents who took the unscientific survey say they spend between 20 and 40 hours per week at their store(s). Roughly 30% spend less than 20. Among the remainder, 13.0% spend between 40 and 60 hours a week, 4.4% spend more than 60 hours a week, and 6.5% say they “rarely visit” their store(s).

When it comes to performing maintenance, 41.3% of respondents believe their skills are “better than most owners.” Another 32.6% say their maintenance skills are “no better or worse than other owners.” More than 17% believe their skills are “not as good as most owners,” and the remaining 8.7% say they “don’t do any maintenance work.”

Very few respondents think their customer service skills are below par, based on the survey results. More than 56% say they “get along great with customers” and 26.1% rate their customer service skills as being “better than most owners.” Roughly 15% say their skills are “no better or worse than other owners.” An extremely small share (2.2%) believe “it’s best that I don’t have to deal with customers.”

Nearly 70% of respondents say their management skills (numbercrunching, making daily decisions, etc.) are “outstanding” (19.6%) or “better than most owners”) (50%). About 28% believe their management skills are “no better or worse than other owners.” The remaining 2.2% admit their skills are “not as good as most owners.”

Thinking about the skills you utilize in running your own store, which do you think is your greatest strength? There was no clear No. 1 among respondents. Roughly 28% picked customer service, 26.1% said management, 19.6% pointed to maintenance, 15.2% said it is the ability to delegate and 2.2% chose marketing. The remaining 8.7% were unsure about their greatest strength.

Respondents were asked about their best and worst laundryrelated decisions. Investing in new equipment, making operational or policy changes, and upgrading the facility in some way topped the list of “best” decisions. About the “worst,” respondents largely pointed to decisions involving equipment (brand choice, capacity choice or placement in store), personnel (poor hirings) and taking too long to act on something.

American Coin-Op’s Your Views survey presents an unscientific snapshot of the trade audience’s viewpoints at a particular moment. Percentages may not add up to 100% due to rounding.

Subscribers to American Coin-Op e-mails are invited to participate anonymously in the industry survey. The entire audience is encouraged to participate, as a greater number of responses will help to better define owner/operator opinions and industry trends. ACO

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Shaping the LandlordTenant Relationship

by Bruce Beggs, Editorial Director

From day one, open communication and a clear understanding of responsibilities under a commercial lease are vital for keeping both tenant and landlord happy.

And in the self-service laundry business where many store owners rent their real estate, the quality and length of a lease can make or break an operation. At its core, everything might just hinge on developing a positive landford-tenant relationship.

“It’s vitally important to read between the lines in any legal document,” recommends Dave Menz, who owns a chain of four Queen City Laundry stores in Cincinnati, Ohio, and is building a fifth. “It’s also important to spend a little time with a landlord and try to figure out what makes them tick. If you can find a landlord that sees your relationship as mutually beneficial and values your relationship, then you really have found something.”

“Hopefully, before reading a new lease, you have met the landlord or at least spoken to them enough to feel comfortable moving forward with them,” says Tim Kerstetter, who owns and operates five Laundromats in central New York, including his flagship Super Clean Laundry in Auburn. “They will in a sense become one of your business partners through the life of the business and as such, all parties should be comfortable with each other.”

John Giambrone owns LaundryTime, a Colorado Springs, Colorado, business located in a strip mall. He offers laundry and drycleaning services.

“It took about six months for us to come to an agreement on my current lease, and it is almost 65 pages long,” he says. “My landlord’s specialty is building and renting skyscrapers. This means that my contacts with the company are often not familiar with common practices in strip mall rentals. … I think it is just as important to learn about the landlord’s business as it is to carefully review the lease.”

“(The lease) can tell you how they view the balance of responsibilities between the tenant and landlord,” says Elizabeth Wilson, owner of Suds Laundry in Memphis, Tennessee. “If they try or want to push more of the common area on the tenant, they will want to collect the money of a landlord but force the tenant to do all

(Photo: © johnkwan/Depositphotos.com)

the work of the owner. Is it in favor of the landlord regarding common areas? How much responsibility do they want to put on the lessee for items that usually a landlord deals with such as roofing, plumbing, HVAC, etc.?”

“If the first draft of the lease comes across as a win-win for both you and the owner, then they could be a good future partner,” says newcomer Steve Andrews, who’ll be celebrating the first anniversary of his store called The Wash House in Nashville, Tennessee, in December. “If every facet of the first draft is in the owner’s favor and they refuse to negotiate on any of the key points, then that indicates it may be a rough relationship down the road.”

Open communications, clear understanding of responsibilities under lease vital to keep both parties happy

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When one reviews a lease for a commercial property they’re interested in, what should they be looking for in hopes of establishing a solid relationship with the prospective landlord?

“Flexibility is key,” Andrews says. “Are they willing to negotiate with you in order to get to a win-win scenario? Are they willing to commit to a long term—10-plus years with future options? Are they flexible in any remodeling efforts? A Laundromat is a very specific build-out that requires certain elements be in place.”

“Most importantly, how reasonable the landlord is to lease considerations,” says Kerstetter. “Will they contribute financially to any of the premise build-out? Will they provide any non-monetary concessions? Even the amount of the security deposit, if required, can say a lot about the landlord’s expectations and business model.”

“First of all, start with reviewing the building and then look at (the) lease,” Wilson says. “Evaluate the space and see if there are deferred common-area maintenance issues. Is the roof, parking lot and structure in good condition? Do not expect them to improve if they are not. If possible, talk with other current tenants and see what their option is.”

“We always read our leases over several times,” says Menz. “We watch for little things that are unusual. Once we find these little treasures, then we try to drill down to see what their intentions might be. We don’t claim to be experts but we’ve had some pretty intense negotiations over the years and we’ve learned a lot.”

Of course, being familiar with leases commonly granted to Laundromats is extremely important so that you know what to reject in a proposed lease and what to ask for, says Giambrone.

A little web research turned up 10 tips for a healthy landford-tenant relationship, things like submitting completely accurate rental applications, asking the right questions, getting any landlord statements or promises regarding the property in writing, and paying your rent on time.

The store owners agreed it was a good list and offered a few other pointers:

Andrews: “Use a good broker to assist you in finding the right location, and use a good lawyer to review the lease verbiage.”

Wilson: “Make sure to have some type of arbitration clause. What happens when the landlord doesn’t take care of the property like they should? Can you withhold rent?”

Menz: “I would add that you should try to put yourself in their shoes. One of the most valuable skills that I’ve found in business is to genuinely care about the person across the table from you. In most cases, it’ll show through if it’s genuine and sincere.”

Giambrone: “One factor that has impacted me is availability of the property manager. I have to advocate for any and all repairs made, even to the public areas such as lights in the parking lot, because our property manager only comes when called. Also, keep a signed copy of your lease near to hand. I have faxed my lease to my landlord several times when they have assumed that my terms were the same as other tenants on the property.”

A lease spells out what’s expected from both parties. How much does a tenant’s understanding of the terms contribute to building a good relationship with the landlord?

“Understanding the terms and coming to an agreement on the terms sets up the parameters for any communication and activity going forward,” Andrews says. “You should also understand any verbiage that protects you and your business.”

“There is nothing quite like the bitterness that comes from finding out that your lease was not written in your best interest,” Giambrone says. “Always have a lawyer go through your lease, and a distributor who has seen a lot of them. After that, read it yourself and ask questions. Then reread and reread so you have a clear understanding of the terms. Don’t be afraid to rewrite a section so that it is more easily understandable, especially if it is written in jargon and legalese.”

Sometimes, there are signs that a land-

ford-tenant relationship might be rocky.

“I think the signs are the same as most other relationships,” remarks Menz. “Are they cordial and polite or are they cold and distant? We also think it’s very valuable to have and maintain good relationships with the other tenants. Speak to them regularly, ask them how business is going. If they start to complain, really listen to what they’re saying.”

“I believe that if the landlord is all of the sudden getting more involved and communicating frustrations and issues more often, then that is a red flag,” warns Andrews. “A tenant should always be respectful of a landlord’s requests and/or questions but also be protective of their business. Never lose your temper or let your emotions cause you to say or do something that might hurt your business. The key is to remember that you are using their building to make your living.”

While talking primarily about new leases, Kerstetter says we shouldn’t forget about their termination.

“I think as important when commencing a new lease is the termination of a lease, and to be sure that it is clearly written in the procedure for decommissioning a laundry,” he explains. “For example, the utility infrastructure is often removed after a laundry closes, but if after the life expectancy of the washers and dryers (is met), can it all just be left behind? What about the dryer vents going through the roof?”

And let’s not discount taking a rent-toown approach, if possible.

“Try to always find opportunities where you can own the property either now, or at least an option in the future,” Menz suggests. “This takes all of the things we talked about out of the equation.

“Also, try to find projects where the landlord understands the value of having a long-term anchor tenant like a modern Laundromat. In those cases, they will always seek to please you. Having a bad landlord is a nightmare, having an absent landlord is almost as bad, having a good landlord is good, but being your own landlord is ideal!”

“Flexibility is key. Are they willing to negotiate with you in order to get to a win-win scenario? Are they willing to commit to a long term— 10-plus years with future options?”

—Steve Andrews, The Wash House, Nashville, Tennessee

Where Are Practicing Sound Store Security:

Mby Bruce Beggs, Editorial Director

ost store owners and operators make inspecting or checking their self-service laundry for safety or security risks a common practice. This makes perfect sense, because a customer will choose a store in which they feel safe over a store where they don’t. Plus, the owner wants to make certain any cash flowing into the business is kept secure.

But as we take a look at store security, where are the danger areas? American Coin-Op polled a handful of store owners, both new and veteran, about their approaches to store security and the tools they use.

Steve Andrews is relatively new to the industry, having left healthcare sales and client management to open The Wash House in Nashville, Tennessee, in December 2018. His 4,600-squarefoot store is open 24/7 and attended daily from 8 a.m. to 9 p.m. He describes his store’s area as a “multicultural, lower-income neighborhood with a high percentage of renters that experiences

(Photo: © depositphoto/Olivier26)

the Danger Areas?

unfortunate high levels of crime.”

John Giambrone owns LaundryTime in Colorado Springs, Colorado. His 6,000-square-foot store in a strip mall close to city center is divided between laundry (4,500 square feet) and dry cleaning (1,500 square feet). Open 8 a.m. to 9 p.m., two employees cover opening and closing; there may be three to four employees on duty at any one time depending on how busy things are.

Tim Kerstetter owns and operates five unattended Laundromats in central New York and considers his flagship store to be the 1,350-square-foot Super Clean Laundry in Auburn.

Dave Menz owns a four-store Queen City Laundry chain in Cincinnati, Ohio, with a fifth under construction. The stores range in size from 2,500 to 5,500 square feet. The two smaller stores are partially attended, and the two bigger stores are fully attended except for a couple of hours each morning. Only the smallest, which is in a standalone commercial building that Menz owns, is open 24 hours a day.

Elizabeth Wilson owns Suds Laundry in Memphis, Tennessee. The 2,700-squarefoot urban store is located in a strip mall off a main thoroughfare. Doors open automatically at 5 a.m. and become exit-only at 11 p.m. The store is staffed

between 7 a.m. and 7 p.m.

As one might expect, these owners pay attention to store security, but how they go about it—and how often—varies.

Giambrone’s security measures are substantial: two 16-camera security systems, glass breaks, motion sensors, vibration sensors on changers and ATMs, a steel door to enter changer rooms, water sensors, remote viewing capabilities and alarm systems.

“I do not have a set schedule for assessing security risks,” he says. “We are always updating and changing. In the last month, we have added two motion sensors to cover the lower half of the ▼

store so that individuals crawling will be detected. Two vibration sensors were added to changers.”

“Since I am a new owner, I tend to be very paranoid,” Andrews says. “Some of the laundries in our area have gotten a reputation of being a place that isn’t safe. I refuse to get that type of reputation, so I am very concerned about the customer safety experience.

“On a daily basis, I religiously check my cameras (10 on interior, four exterior) and review nightly activity when there is no attendant. Weekly I walk around the building to check for anything out of sorts (i.e. cameras moved or tampered with, exterior lights tampered with, any drug paraphernalia anywhere on the grounds, etc.).”

“Because the Laundromat is so close to my home, I stop by often to check on staff, say hi to customers and to see the general state of the store,” says Wilson, who regularly consults her security camera feeds.

“It is important to stop into the Laundromat every morning to check on it after the prior night,” says Kerstetter.

“We are very big on security, so I would probably classify our security as overkill,” Menz says. High-definition video surveillance systems and alarm systems that include panic buttons are among the tools he uses. “We believe in prevention whenever possible.”

AREAS OF EMPHASIS

Common areas to focus on regarding security include doors/locks, windows and exterior areas such as the parking lot or adjacent sidewalks. How about within these stores?

“We try not to have any hidden or visually blocked areas,” says Kerstetter. “The ATM and changer area is open and very bright with these lights remaining on 24 hours a day for security.”

“The bathrooms are the biggest area of concern for us,” Andrews says. “For some reason, people with bad habits seem to think our store could be a good place to practice that habit. We have had to add smoke detectors and smart locks to them in order to keep this from happening.”

“There isn’t an area of our stores that we haven’t thought about, and invested in the best security,” says Menz. “Highsecurity locks and rear-load changers

deter thieves or troublemakers, alarm systems tell us and law enforcement when something is happening, and highdefinition video surveillance systems tell us what happened once it’s over.”

Giambrone has specific measures in place at the bathrooms, changers, coin boxes, ATMs, and the rear exterior of the store by the garbage bin.

“Due to our location in an area lower than the surrounding streets and backing up to a grassy area, we deal with homeless vagrants and overnight stays in the parking lot on a regular basis,” he says. “We are constantly working with the landlord and police to address this problem.”

“We have one seating area outside of our mat for customers and that can be an issue for homeless people,” says Wilson, “but our staff know to either ask them to leave or contact the police if they feel unsafe to talk with them directly.”

BEING ATTENDED ENHANCES SECURITY

Apart from the tools commonly put in place to keep things secure, do you believe having an attendant on-site enhances security for a store?

“Absolutely!” Menz exclaims. “At one point, all of our stores were open 24 hours except one. Additionally, all of our stores were either unattended or minimally attended when we acquired them. Our goal has always been to provide the cleanest and safest stores in Cincinnati with all of the modern amenities. Part of this mindset has been that we’ve greatly increased the number of hours per day that all of the stores are attended.

Having well-trained attendants on duty greatly (relieves) any real security concerns.”

“Definitely,” Giambrone adds. “Although this is the only store I own at present (and I have no intention to add additional locations), I will not ever run an unattended store again. I find it decreases the number of headaches I deal with on a daily basis. It is worth every penny of labor, and my sales are considerably higher than nearby stores because my customers know they will receive quality service at my location and that they are safer.”

“I believe it helps tremendously,” Andrews says. “I have had many customers ask for the specific hours when there is an attendant on duty so that they can come during those hours. It gives them a sense of security knowing someone is there watching over everything.

“It also helps if the attendant is trained to look for certain activity. For example, we allow our bathrooms to be unlocked when we have an attendant on-site. The attendants are always on the lookout for non-customers coming in and trying to use the bathrooms. We have learned that most of these folks are up to no good.”

“Yes, just the presence of staff helps keep any mischief down to a minimum,” says Kerstetter.

“Definitely!” exclaims Wilson. “I can’t wait until we have our store staffed 24/7 with more than one attendant. They make sure that only customers are in the mat and are there in case anyone needs help or has problems.”

“High-security locks and rear-load changers deter thieves or troublemakers, alarm systems tell us and law enforcement when something is happening, and highdefinition video surveillance systems tell us what happened once it’s over.”

—Dave Menz, Queen City Laundries, Cincinnati, Ohio

DO YOU HAVE AN EFFECTIVE TOOL OR PRACTICE?

Have you implemented a tool or practice that has proven effective in keeping your store safe and secure?

“If I had to choose one practice, it would be our intense focus on security,” Menz says. “The best Laundromats have a few core traits: They are safe, attended and clean, but safety must come first, so we’re kind of obsessed. This constant focus comes through in everything that we do. Over time, our stores develop a reputation as being a place that you want to stay away from if you’re a bad guy.”

“I can’t remember the name of the study, but it showed the correlation of cleanliness and order with improved safety and security within a rough area of a city,” says Wilson. “When we remodeled last year, we focused on creating the cleanest and brightest Laundromat we could. … Our staff use a cleaning checklist per shift which I monitor. And they also know that keeping the store clean is one of the most important aspects that customers want in their Laundromat.”

“I am constantly upgrading as I identify new weak points in our security,” says Giambrone. “When a security upgrade will not address the problem, I work with the property manager and police to address the concern in a proactive way.”

Procedurally, he teaches his employees to circle the store before opening, looking for any problems before getting out of the car. He expects them to walk the store, bathrooms and the front sidewalk. “They pick up trash and make themselves noticed, interacting with customers using

our picnic tables while looking for things that are out of place.”

As night falls, Giambrone’s employees move their cars up to the front of the store. When two staff members are closing, one leaves the store and starts their car while the second stands by the phone, monitoring their co-worker’s safety before leaving the parking lot. If one person is closing, they’re encouraged to walk out with the last customer.

Last load is at 7:30. If there are no customers in the store after 8 p.m., Giambrone’s employees are encouraged to leave once closing tasks are completed; he pays them until their shift ends no matter what. “This does two things: it encourages the employee to stay on top of the tidiness of the store so that they may leave early and get paid; it also makes it much safer because they are not waiting alone for any length of time.”

“I have recently begun locking the doors to my bathrooms in the evenings,” Andrews says. “I have a sign posted that states we lock the doors at 10 p.m. and unlock at 8 a.m. I use a smart lock that allows me to control the locks remotely. While some late-night customers have been upset about the locked bathrooms, I explain to them that we lock the doors for their safety. It keeps bad characters from using out bathrooms as a destination for their bad actions.”

ARMING ONE’S SELF

Every one of the store owners interviewed says they have brought a firearm to their laundry.

“Yes, I do while collecting,” says Kerstetter. “As for an attendant or manager (being armed), I can’t see much of a need due to them not having keys or access to cash.”

“I am armed, particularly while collecting,” Giambrone says, “but I do not allow my staff members to be armed. I discourage open weapon carry by customers.”

“Yes, but I often carry,” Wilson explains. “I neither encourage nor discourage my staff or customers to carry. Honestly, I would be more apt to use wasp or bear spray if I needed to defend myself, staff, or customers. I think there are too many unnecessary risks, but I also defer to Tennessee state law.”

“Yes, I carry a firearm at times,” says Menz. “I would allow our GM to carry if she chose to and was properly licensed. If an attendant had that desire, we would likely speak with them about any specific concerns that they have. If there’s something that we can improve or mitigate, we welcome that feedback. However, if it’s just paranoia, then we would likely encourage them to carry mace or something like that.”

IN CLOSING

To Andrews, store security is just as important as machine maintenance and customer service: “It’s something that your customers are going to desire (require even) as a prerequisite for patronizing your store. Don’t take it lightly, and don’t expect others to do as good a job as you would do.”

“We believe some of the best security that a Laundromat can receive is to simply be a busy store and to enhance the community around you,” Menz says. “Because we go the extra mile and heavily invest in our stores, the local community notices and appreciates it. They understand that not all Laundromats are as nice as ours, so they look out for us and take personal ownership over the store.”

“My biggest suggestion to other Laundromat owners is to get as involved in your community and neighborhood as possible,” says Wilson. “There are not many Laundromats who do this and the feedback from neighbors and their support are worth the time and effort. If they know you really care about the neighborhood, they will also keep an eye on your property.”

“I can’t remember the name of the study, but it showed the correlation of cleanliness and order with improved safety and security within a rough area of a city. When we remodeled last year, we focused on creating the cleanest and brightest Laundromat that we could.”

—Elizabeth Wilson, Suds Laundry, Memphis, Tennessee

YOU PLANNED YOUR START, BUT HOW ABOUT THE EXIT?

“Plans are of little importance,” Winston Churchill once said, “but planning is essential.”

Of course, Churchill meant that plans are often not enough. Instead, you must plan for any situation that may come up. The same is true when deciding on an exit strategy or succession plan for your coin laundry business.

First, decide whether you want to sell the business outright, or perhaps have a child or other relative take it over.

SELLING YOUR BUSINESS

If you decide to sell it outright, you should start planning about five years out. Maybe you’ll decide to sell six stores and keep one or two to give you a steady income stream in your retirement. You need to think about which stores to keep and which to sell, determine when is the best time to sell and so on.

Coming up with an appropriate and fair selling price is an important part of the selling process. There are many factors that go into determining a fair price, such as demographics, store visibility, parking and competitors in the area, including new coin laundry businesses set to open since those businesses can have a big impact on your future cash flow.

But the three key factors that go into determining what is a fair price include the net cash flow your business is generating; the length of time left on your lease; and the age of your equipment.

Let’s look at the

three main factors individually:

Cash Flow — Most lenders in the laundry industry do evaluations based off a Laundromat’s EBITDA, or earnings before income, taxes, depreciation and amortization. That gives you a good idea of the real cash flow the Laundromat is generating. Valuations are usually based on a variable of EBITDA that often ranges from two to six times, depending on a variety of factors.

Lease Length — The length of a lease is the amount of time the buyer will have to recoup the purchase price. Thus, the longer the lease the better EBITDA multiplier the buyer will pay for it since he or she will have longer to recoup their money. Ideally, buyers will want to purchase a Laundromat with a 10-year base lease and two five-year options. If your lease is nearing its end, as a seller you’ll need to allow yourself adequate time to negotiate and extend that lease, in order to increase your selling price.

Jeff Harvey

(Photo:

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Equipment Age — You’re also going to get a better multiplier of EBITDA if you have equipment that is newer. For instance, if your equipment is 4 years old, potential buyers know that the equipment should last them another 11 years. But if you are trying to sell the business with 14-year-old equipment, the new owner is going to have to replace that equipment almost immediately. And that can create a large capital expenditure for him or her.

In short, you need to think of the investor’s return of investment in planning your exit strategy, and you need to think longterm. Years before you’re ready to retire, you need to decide when to start renegotiating your lease or looking at getting options added to get you a better valuation for your business when you sell. You also need to think about replacing some aged equipment and putting in new equipment that will give you a better multiplier at the time of sale.

SECOND-GENERATION OPTION

Besides selling your coin laundry business when you’re ready to retire, another popular option is to have someone in your family take over your business. A lot of coin-operated laundries are passed down to second or third generations. But planning is again key, just as if you were selling the business outright.

You know your family members best, and can probably tell who has the aptitude, work ethic and interest to take over the business. Take the time to identify who would be a good fit, since you want them to succeed and be happy. Once you’ve identified a family member or two as good candidates, ask them if they want to do it. At the end of the day, if it is something they are not passionate about, it will probably be difficult for them to be successful and could create friction moving forward.

But if that family member or members say they are interested in taking over your business, get them involved in all aspects of the operation so they have a better understanding of the coin laundry business. The most important part of this process is having open and honest conversations about what it will take and how it will work. Whether it’s your son, daughter, aunt or cousin, build in time before you sell to teach them the business.

That means having them involved in the day-to-day operations so they know exactly what they are getting into. Maybe

make them a 50% owner in the company at first. The good thing about doing that is you can involve them in financing for new projects or equipment, and that will help them build up their credit history with a finance company. While this may seem like a long-winded process, the more time you spend preparing them for the takeover, the better things tend to go.

THE TAX PERSPECTIVE

No matter what your exit strategy is, there will be tax implications based on the purchase price to consider for both seller and buyer. What amount of your sale price will be allocated toward equipment, what will be allocated toward goodwill, and so on. Those kind of things can be shifted toward the buyer or seller. Prior to listing the property, you should work with your accountant to determine how to properly allocate the value of the purchase price and determine what is the best strategy from a tax perspective.

You’ll also need to decide how you will sell your Laundromat. Will you put it up for sale by owner? There are pros and cons to consider. The pros are that you will save on costs and brokerage fees; the cons include a longer time period to find and identify qualified buyers, making it difficult to sell your Laundromat quickly.

Or you could sell your coin-operated laundry business by working with a broker. Some brokers specialize in Laundromats and know of a pool of potential buyers. They also know what to look for in Laundromats to improve valuation. But

you will pay a fee for brokerage services, which usually depends on their expertise in the field and how much value they bring to the table.

So where do you find a good broker? You can start looking online at websites like BizBuySell.com. Many distributors throughout the U.S. will also have a brokerage arm or can give you recommendations on finding and identifying a possible broker to partner with. Most laundry owners have a relationship with distributors in their area through equipment purchases or parts, so they should be able to help you find and identify some possible broker partners.

IN CLOSING

Make sure you also keep detailed records of your finances; while this is a good practice for all businesses, it is even more important in the coin laundry business since it is mainly a cash business.

Reach out to your lender and get them involved in your exit strategy or succession plan You may have a well-qualified buyer, but when it comes time to do the acquisition, decisions are many times based on the value of the Laundromat. Work with your lender so you have an understanding what they can help with, such as valuations, or letting you know what they can finance for a buyer based on his or her qualifications.

ACO

Jeff Harvey is manager of U.S. underwriting for Alliance Laundry Systems. He can be reached at jeff.harvey@alliancels. com.

(Image licensed by Ingram Publishing)

WASHER PROGRAMMING TO BOOST EFFICIENCY, PROFITS

Most laundry owners don’t look extensively into washer programming. Perhaps they should. While many washer brands offer controls allowing for various levels of programmability, some laundry operators default to factory settings. In doing so, they might miss out on opportunities to cut utility costs, generate additional revenue and fuel store profits.

In this column, I delve into how washer programmability can work to benefit a laundry’s bottom line.

UNDERSTAND THE CONTROL

The first step in programming is to understand your washer control and its capabilities. Check out the manufacturer’s website for programming tutorials and brochures; talk with your equipment distributor to sort through programming questions; understand your alternative payment system’s offerings; and find out if an upgrade kit is available for your control.

A simple-to-install upgrade kit will offer more functionality at a fraction of the cost of a new washer. At the end of the day, owners can make needed program tweaks to boost efficiency and profits without sacrificing wash quality.

Most washer controls integrate networking, remote programming and payment system interface to make quick programming possible. Owners can program washers directly from the keypad, or in combination with an alternative payment/management system using a computer, tablet or cellphone. It’s easy and effective.

A highly flexible washer control will allow programmability at the smallest levels. For instance, a highquality control will allow owners to configure pricing and specials, run reports, monitor revenue and schedule routine maintenance flushes; adjust water levels, mechanical action, cycle times, extract speeds and water temperatures by degree; and add or delete baths, rinses and spins; among other things.

These controls sometimes offer multi-level vend pricing on the same machine depending on the wash program selected, time of day, or day of the week. Such flexibility allows owners to tweak programs to meet the needs of a given demographic, lower utility usage and

costs, and heighten revenue and profits.

INDIVIDUALLY MODIFIABLE PROGRAMS

Generally, a washer control offers several programs that can be individually modified, including “Hot,” “Cold,” “Warm,” etc. Think about adjusting the following parameters within each option:

Wash Temperature — Turning cold water to hot water is extremely energy-intensive. Heated water accounts for about 90% of the energy needed to run a washer, according to Energy Star. Plus, many garment manufacturers don’t recommend washing in high temperatures and retail detergents have been modified accordingly. Default temperatures are approximately 104 F for Hot and 86 F for Warm cycles. Dial those down a few increments for utility cost savings that will add up.

Extract Speed — During extraction, washers spin at a specific force to remove moisture from laundry. Higher extract speeds remove more moisture, which in turn shortens drying time and dramatically extends linen life. When drying time decreases, so does resulting natural gas usage and costs. Some high-speed washers generate a G-force exceeding 400. Ensure washers are set for their maximum G-force output. Customers will enjoy the quicker dry, you’ll improve customer turnover, and dryers will last longer because they operate less often. By increasing extract speeds, you’ll boost profits, while speeding customers through your laundry.

Program Time — This is the time it takes to complete a program, such as Hot, Warm, Cold and “SuperWash.” Longer program times consume more energy and create higher utility costs. They also contribute to bottlenecks at the washer during busy periods. The default settings for program time are generally elevated. Lower wash, rinse and spin time by seconds or minutes to serve more paying customers per day while simultaneously using less energy.

Number of Rinses — Some programs offer up to four rinses. Evaluate the programs and decide if it’s possible to produce quality results with fewer rinses. Eliminating one rinse on a 30-pound-capacity washer can save up to 6-8 gallons per fill. Over the course of a year, at three turns per day, this saves up to 8,760 gallons. Imagine the

Tod Sorensen

CASHLESS PAYMENT

C CARD CONCEPTS (CCI)

ard Concepts (CCI) introduces FasCard Flex, a flexible system designed, built and supported in the USA that allows store owners to eliminate coins from their Laundromats.

System features include:

• Wireless card readers with color touch-screen interface;

• No local computers to manage;

• Online access from any device that includes reporting, vend price adjustments, remote machine starts, and loyalty program management;

• Multi-lingual usage instructions;

• Touch-screen kiosks;

• The ability to run both pockets of a stack dryer from a single card reader.

Also included is the FasCard app for retail customers to view machine cycle status, end-of-cycle notifications and account activity, manage loyalty cards, and start machines.

FasCard Flex comes with an employee management system, to allow employees to clock in/out, manage recurring tasks and view work schedules from their smart phone.

As with all CCI products, FasCard Flex is backed by 24/7 support. And CCI now offers a rental program that it says requires little upfront investment and includes its “perpetual” warranty.

www.laundrycard.com 866-860-1660

MITECH INTEGRATED SYSTEMS

aundroworks from Mitech Integrated Systems is the evolution in card/loyalty payment systems, the company says. Contactless smart cards are used to start machines using a simple tap or presentation of the card to the reader, virtually eliminating problems related to read errors or wear and tear.

The card is reloadable at a modern kiosk (Value Add Center) using bills, credit/debit (including “chip” card), Apple Pay, and even EBT (electronic benefit transfer) cards.

Customers can even get a text message when their laundry is finished, the company says.

The interaction process is quick, intuitive and reliable,

GENESYS TECHNOLOGIES

The CryptoPay Credit Card System from Genesys Technologies is a secure, cost-effective, and easyto-install wireless credit card payment solution, the company says.

CryptoPay Credit Card System encrypts credit card data the moment the card is swiped and has a proven track record of secure transactions in both the Laundromat and car wash markets, Genesys says. To date, CryptoPay has securely processed more than 13 million transactions totaling over $85 million.

The CryptoPay system is designed to deliver low startup costs and the flexibility to equip additional machines as one’s budget allows, the company says. CryptoPay transaction consolidation reduces processing fees by consolidating multiple customer credit card charges.

Data is accessed and analyzed using The MyCryptoPay Cloud-Based Site Management Tools, which allow operators to add new sites, remotely configure CryptoPay Swipers, view Laundromat site status, and see recent credit card purchases securely and conveniently from their home, office, or mobile device.

This tool can also provide access to additional low-cost services like CryptoPay Site Analytics and CryptoPay GoGreen Receipt Service, Genesys says.

www.getcryptopay.com 719-277-7400

Mitech says. All card readers are wirelessly networked, and the system uses real-time, cloudbased management and control.

Most store owners run purely card stores (no coins), according to Mitech, but a hybrid (card plus coin) configuration is available.

Laundroworks is sold through major dealers across the country, the company adds.

www.laundroworks.com 888-629-8620

www.americancoinop.com

he DebitKey System from Coin Mechanisms is a cashless payment system designed to be used in place of coins and/or tokens as a payment method.

The system is based on a plastic key-shaped carrier with an embedded chip card integrated circuit. Three levels of coded security have been implemented to ensure that only correctly designated keys can access a location’s equipment, the company says.

The system also includes a key reader that can be packaged in various faceplates or enclosures.

The reader may be equipped with a display that can be used to show information such as vend price or remaining key value. One key reader is installed in each host machine that vends a product or service, such as washers and dryers. The reader interfaces to the host using various parallel and serial communication protocols, the company says.

Another item, called an attendant terminal, is used to check and add value to customer keys. A person must be on-site to use this device.

www.coinmech.com 800-323-6498

The ESD Payment Center VTM has a full-color, intuitive, touch-screen monitor and includes audio prompts in up to eight languages to assist the customer in registering their account, viewing their card balance, adding value to their card or obtaining a new magnetic stripe or smart card store loyalty card, the company says.

The VTM accepts cash, credit cards, debit cards, PINbased debit cards and Electronic Benefit Transfer (EBT) cards. In addition, the encrypted PIN pad incorporates the ability to accept Apple Pay, Samsung Pay, Android Pay and all other NFC mobile payments. The terminal is EMV-enabled to accept all chip credit/debit cards.

The Payment Center utilizes a high-speed internet connection for all transaction processing and reports, in real time, all information to the ESD-hosted Mylaundrylink website for viewing by the operator from anywhere there is internet access.

The VTM is supported on the Cyberwash, Cyberlaundry, Synergy and Smart Card platforms provided by the company.

www.esdcard.com 215-628-0860

PRODUCT SHOWCASE

Developers of the LaundryPass Payment System call it a revolutionary tool designed to increase revenue for Laundromats, save time and bring business into the 21st century.

Customers buy and refill LaundryPass cards at kiosks via their cellphone, cash, or credit/debit cards. Cards are tapped on the Contactless-WaveCard readers on the machines, thus avoiding jams, worn-out magnetic strips and card damage common to swiping, LaundryPass says.

All LaundryPass readers on a washing machine also can be started via the user’s cellphone without needing to use a LaundryPass WaveCard.

LaundryPass includes the ability to electronically audit the kiosks, monitor sales and revenue, and adjust prices in 1-cent or 5-cent increments rather than 25-cent increments. The system allows for price adjustments as often as necessary, be it for different times of day or seasonal needs.

Customers don’t have to lug around change and can be assured of always having access to pay for their loads, LaundryPass says. There are loyalty programs for those customers who enjoy earning perks for patronizing specific Laundromats; this is a perk for the Laundromat, too, as it increases repeat business, the company adds.

LaundryPass says its system is easy to install and works with most laundry machines, and can easily be fitted for existing machines dually with coin operation, via a hybrid system that works with coin or card. www.laundrypass.com 855-870-5625

GREENWALD INDUSTRIES

reenwald Industries has a new payment solution phone app called Greenwald Pay, or GPay. It’s part of a new, improved Greenwald Management System (GMS), the company says.

GMS provides detailed reports and management tools from the phone and back end. Promotions can be sponsored directly through the app, and pricing can be changed remotely. GPay works with coin or card.

“We’ve done a great job in developing not only a phone app that provides the user a convenient way to manage their laundry, but we have also developed what others are calling a ‘powerful back end,’ which provides our customers the tools they need not only to reach out to their customers but under-

IMONEX

Tokens are a proven alternative to Laundromat machine card readers and smartphone pay apps while providing customers a coin-like experience they are familiar with and comfortable using, Imonex says.

Washers, dryers, vending machines, amusement games and car vacuums can accept tokens fitted with customized Imonex drops. Patrons obtain tokens using cash or credit at change machine dispensers.

Tokens eliminate coins from changer hoppers, machine vaults and attendant banks, putting money in the hands of Laundromat owners and nobody else, Imonex reports.

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 unit’s token acceptance capability offers a cashless pay option at every machine without individual readers, the manufacturer says.

Accepting tokens means in-and-out collections. Owners pull bills, tally credit card receipts and get real-time reporting.

Imonex drops are precision-crafted to validate up to four token/coin 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 higher- and lower-value token or coin.

Imonex reports that a token payment system can run 24/7 without staff and offers a host of automated promotional opportunities.

www.imonex.com 800-446-2719

stand their business through analytics,” says Jim Costeines, global sales manager.

Features and benefits of GPay include:

• Reduces/eliminates coin collections;

• Tracks coin and card transactions as well as app usage;

• Owner holds funds; and

• Detailed business analytics reports through GMS.

GPay Plus, also available now, enables operators to add phone app payments where card systems are installed.

www.greenwaldindustries.com/greenwald-pay 860-339-1147

etomatic Systems calls its SpyderWash the “All in One” payment system. It gives customers the ability to use all payment options directly at the washer/dryer, while giving owners full accountability of each transaction, including coin.

Laundry customers can pay in a manner that is easiest and most convenient for them. Customers can use all major credit/debit cards (mag stripe and contactless), Apple/Samsung/Google Pay and loyalty cards, plus have the ability to use coins as well (optional). Customers want to pay for their laundry the same way they do at every major retailer and restaurant, Setomatic says, which is why SpyderWash simplifies laundry payments for every type of customer.

Customers can now take advantage of SpyderWash’s Free Wash and Free Dry Programs using a credit/debit card or mobile wallet. They are no longer required to purchase a loyalty card or download a

proprietary app and register in order to receive loyalty program benefits, Setomatic says.

The newest, most important trend in payments, according to Setomatic, is the emergence of contactless credit cards. “Tap and Go” payment has become the preferred way to pay in Europe, Canada, South Korea and Australia, the company adds, and the U.S. is finally catching up.

Visa Inc. expects more than 100 million contactless cards will be in the hands of American consumers by the end of this year, Setomatic says, and contactless cards are now accepted at 78 of Visa’s top 100 merchants. All SpyderWash terminals accept contactless payments.

www.setomaticsystems.com 516-752-8008

POINTERS FROM PAULIE B

WHERE ARE THE SAFETY HAZARDS IN OR AROUND YOUR STORE?

Managing the Laundromat’s safety seems almost like an afterthought to some owners, but there are several areas in and around your mat that can be potential hazards for customers and employees. Knowing how and when to manage these potential hazards can reduce the odds of someone getting seriously hurt and lower your legal exposure.

GENERAL SAFETY

Floor and Doors — Due to the large percentage of slips-and-falls in retail businesses (both real and fraudulent), this should be your first area of attention. From the parking lot, through the doorways and all throughout your mat, people’s walking areas must be as flat and level as possible. There should be no wide cracks, holes, bumps or steep grades.

The Americans with Disabilities Act (ADA) defines a trip hazard as any vertical change over a quarter-inch or more at any joint or crack. Sidewalk trip hazards are huge legal liabilities, so it’s best to repair sidewalk cracks immediately. If you have a steep grade or stairs, make sure there is a handrail for people to hold onto.

The texture of your floor should not be too glossy, and any liquids, especially detergents and softeners, should be cleaned up immediately.

Many mats are installing automated doors to make it easier and safer for people to get in and out of the store. Automated doors are also an excellent “silent salesman,” giving people yet another reason to use your mat.

Training — Proper and routine training (and retraining) is crucial if you want your crew to be able to respond to a hazardous situation without reacting like a “deer in the headlights.”

Always ask the question first before explaining. For instance, pose this question: “A fire breaks out in dryer 23. Tell me how you would handle that.” Some crew members will give you a good explanation, some will not. Show them all how to handle it.

I always gave the first hour of safety training to a new hire myself, so I knew the new employee learned how to respond.

Every time I showed someone how to react in an emergency, I always asked for a return demonstration. I was amazed at how I could show someone how to handle something and get “yes, sir” and affirmative

nods, only to discover that they didn’t quite get it when I asked them to show me themselves.

Make sure you review all your safety procedures on a regular basis because people do forget pretty quickly, and even more so when panic sets in! Repetition, say, once every 4-6 months will keep them all ready and able to respond in the best way.

Make up signs with simple step-by-step instructions for each emergency procedure, because some attendants will panic and forget what they learned.

Getting back to the dryer fire scenario, make a sign to place over your fire extinguisher that says something like:

1. Turn off power first to stop dryer airflow from fanning the flames.

2. Call the Fire Department to get them on the way.

3. Take the fire extinguisher to the dryer, slowly open the door (or have someone else do it for you while you take aim – remember to stand back) and blast the base of the fire.

Make sure all crew members know how to quickly shut off every machine in your mat, including the gas, electrical and water supplies. (Install ball valves for shutting off water; they are much easier to close than a screw-type gate valve.)

Crime Deterrents — You want to prevent holdups, so keep your mat well-lit. A brightly lit store deters all sorts of crimes, especially if you keep your windows clear. Plus, a bright store makes people feel safer, so you will attract more customers.

Paul Russo

(Image licensed by Ingram Publishing)

Having plenty of security cameras helps you stop customer fights dead in their tracks if you or a crew member says this during a heated argument: “Both of you, please calm down security cameras all over the store and you both are being recorded right now.”

They will still be angry as hell but will look at the cameras and grumble something as they back off. Then, your crew can help resolve what caused the fight to start, so that no one takes it to the parking lot.

Speaking of video, if you can afford it, upgrade your surveillance system to the newer high-definition cameras, and make sure there are no “blind spots.” At least one large video monitor showing most of your cameras in action should be visible in the store. It’s a great deterrent for bad guys. You can even get “license plate cam eras” for your parking lot.

I always liked having an old video system plugged in near the front counter in case a bad guy wanted to smash it, thinking it would kill the recording. Meanwhile, the real one is safely hidden.

Use the same tactic for safes. Keep a dummy safe near your counter that can be opened quickly by a crew member and containing enough money to satisfy an armed robber. This could save a worker’s life.

And any warning signs you post should be bilingual.

Fire Protection — Keep your mat as completely clean of lint as possible!

Lint is highly flammable (check out the YouTube video titled How flammable is dryer lint? to see just how much). It can turn a small fire into a disaster, so keep lint out of every nook and cranny.

Your electrical wiring and boxes should be up to code.

Keep fire extinguishers handy and properly charged around the store.

During construction or remodeling, use materials in your mat that don’t support combustion, such as metal studs and sheetrock. Choose ceramic tiles instead of wood paneling.

Big mirrors on your walls not only deter combustion, they also make your mat look bigger. Besides, many people just checking themselves out, so it’s a customer draw as well.

Leak/Flood Prevention — All washer door locks should be operating properly and drains should be draining. You a customer to open a washer door and have 15 gallons of water pour out! This is both a slip hazard and a shock hazard, so check all door locks at least once a week, if not more often.

Same goes for water hoses. Don’t go cheap. Cheap hoses can pop off and spray water all over!

Make sure to have your drain lines routinely cleaned before they clog up and cause a flood. It’s great prevention, and saves you emergency calls.

Gas Leaks — If anyone smells natural gas, close your store immediately, evacuate everyone and shut off the gas! If you can, open all doors and windows.

Flicking a light switch can ignite gas if enough has accumulated in your mat. Your dryers will make sparks to ignite gas, so shut down your power, too. Your crew should know how to handle a gas leak.

If you can’t immediately find and fix the leak, you must leave the store with the gas main shut until a licensed plumber can track and repair the leak.

Windows — Big storefront windows can be beautiful, but be careful about seating or benches pressing against the glass. Make sure the seatbacks are not a hard metal that could crack or

POINTERS FROM PAULIE B

break the glass.

Also, all seating should be secure and strong enough to support heavy customers with no risk of tipping over.

Ventilation — Some customers with lung issues may have problems with lint in the air, so don’t sweep near people. It’s a good idea to have filters on your ventilation.

Lighting — Besides deterring bad guys and attracting customers, good lighting will also make customers’ laundry look cleaner, people will be able to see better while walking around in your mat, and your video surveillance will work better for identification purposes.

Water Temperature — According to the Consumer Product Safety Commission, your hot water should be no hotter than 120 F at any tap (or soap box) to avoid scalding (CPSC Safety Alert: Avoiding Tap Water Scalds).

First Aid — Keep bandages, Band-Aids® and antibiotic ointment on hand for treating minor cuts and scrapes.

Protected Outlets — Mats have lots of electrical outlets. It only costs a little more to install GFCI (ground-fault circuit interrupter) outlets to make them all shock-proof.

Children and Carts — When kids ride in carts, it’s an accident just waiting to happen. They tend to tip the carts and fall over,

possibly hurting themselves or others, as well as damaging your equipment. One cart maker sells an installable device designed to discourage anyone from sitting or riding in a laundry cart basket.

Detergent Pods — Due to the risk of young children possibly eating laundry detergent pods because they look like candy, I suggest banning the pods from the mat, with a nice sign explaining your decision.

Rubber Balls — Small vending machines often sell small bouncy balls for children. The problem? They are real slip hazards when left lying on the floor. Think twice before selling them.

Dryer Sheets — Customers always seem to let their used dryer sheets fall on the floor. Since these sheets can be a slip hazard, pick them up ASAP.

PERSONAL SAFETY

Clothing, Jewelry, Rings and Long Hair — When I first started in this business a long time ago, I positioned myself behind a row of very old dryers while I was wearing a down vest. The previous owner did not have the safety panels on the backs of the dryers, so all the pulleys were exposed. All the dryers were going on this busy Saturday and, you guessed it, my vest got caught in a pulley!

Luckily, it went up and around only once and came back out.

It could have twisted me all up, causing serious injury or death!

So, when working on machines, try not to wear loose clothing. Remove loose jewelry, even rings. And put that long hair up.

And, I know it’s a pain, but keep the pulley guards on—they are there for a reason.

Always shut off the power when working on a machine. And if you are behind the washers, it’s not a bad idea to shut off the power and water to adjacent washers as well in case you accidentally dislodge a water hose. You don’t want to get electrocuted!

Handling Cash — As the owner of a mat, you might as well have a target on your back, because some people will look at you as “the rich person” who handles a lot of cash. I like how some mats are now being built so that the owner enters using a separate door, right into an office where all doors to rear-loading change machines or value transfer machines are located. The owner can enter and exit undetected.

Still, with stores like this, having a camera installed outside this door would help the owner see if/when it’s safe to leave.

I believe mat owners are most vulnerable when they exit the mat to go to their car. Make sure you always check outside before walking out to see if it’s safe to go. Also, change up the times that you come and go to throw off anyone who may be staking you out.

Pro tip: Put your cash inside a big bag of laundry before leaving so you look like a customer rather than the owner. Keep a “decoy” amount of money on you to satisfy any robber who gets the drop on you. Your real money will be in the laundry bag.

Always take a route home that includes a few twists and turns so you can see if someone is following your car. I had a friend

who owned a pharmacy and he once got robbed in his driveway at home, 19 miles away from his store. He admitted that he never paid attention to anyone following him.

If the laws in your state allow it, should you get a concealed carry permit for a firearm for your self-defense? I had one for 31 years, and it saved me on three separate occasions. But this is a personal decision and only someone who can safely and lawfully handle a gun should consider it.

I think In the Gravest Extreme: The Role of the Firearm in Personal Protection by Massad F. Ayoob is an excellent book on the subject; the author addresses experiences before, during and after an armed confrontation.

I happened to be lucky on the three occasions I mentioned but I understand that a pistol can also get you killed. If the bad guys “have the drop on you” and you can’t pull it out to shoot first, they will surely find your pistol when they search you. And they will search you! Constant vigilance is in order, and don’t forget that innocent people could get hit during a gunfight.

So whether it’s for your customers or for you, always be on the lookout for potential danger areas in and around your store and how you can best address them to keep your operation running safely and smoothly.

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.

ACO

AQUAWING UNVEILS SANITIZING OZONE SYSTEM FOR VENDED LAUNDRIES

Aquawing Ozone Injection Systems recently introduced the patent-pending SAN-O3-WASH, a sanitizing, tankless ozone system engineered specifically for vended laundries.

SAN-O3-WASH is a space-saving system that sanitizes washers, as well as customer laundry, without damaging pipes and machinery, according to Ralph Daniels, Aquawing president.

“SAN-O3-WASH works by injecting ozone into the washer to kill bacteria, viruses and superbugs,” says Daniels. “Ozone effectively loosens fibers and breaks down soil and stains. SAN-O3-WASH results in cleaner, fresher-smelling laundry.”

Art Jaeger, who owns multiple vended laundries in California, maintains SAN-O3-WASH helps his Valencia Laundry stand apart from the competition, plus it brings peace of mind.

“Every washer is sanitized all the time,” he says. “But if customers want to add the power of ozone to their laundry, they can add an extra ozone rinse for another 25 cents.”

At National Laundry, in Ashland City, Tenn., revenue is reported to have jumped 20% in the four months since a SAN-O3-WASH system was installed, Aquawing says.

“That’s significant growth for a laundry that’s been running for four years,” says owner J.D. Dixon, of National

Laundry Equipment LLC, in Nashville. “Yet, the only change I made was installing the SAN-O3WASH machine.”

The system disinfects every washer in the laundry, as well as cleans and disinfects customers’ laundry loads, according to Dixon. Impressed with the results, Dixon says he plans to add SAN-O3WASH to his other laundry in coming months.

Efficient and simple to maintain, SAN-O3-WASH works well in cooler water and, if desired, can completely eliminate a laundry’s need for hot water — reducing gas consumption and resulting utility costs, Aquawing says. Since ozone leaves only oxygen behind, it is also environmentally friendly.

SAN-O3-WASH, which Aquawing claims costs significantly less to operate than pump, concentrator and tank ozone systems, won’t damage pipes and offers simple maintenance.

www.aquawingozone.com | 888-296-4777

«

CLEANER’S SUPPLY OFFERS VIDEO MARKETING PROGRAM

Cleaner’s Supply reports it has launched a new Video Marketing Program designed to help laundries and dry cleaners increase their sales as well as elevate their online presence and take advantage of search engine optimization (SEO) algo-

rithms that will increase their search ranking results.

The program offers Cleaner’s Supply customers up to eight professionally produced videos to promote many of the sought-after services that laundries and dry cleaners offer. The videos can be used as an in-store TV advertisement, embedded on a business website, or on social media.

Cleaner’s Supply will also customize these videos with the

laundry’s or dry cleaner’s business logo. Video has proven to be one of the most effective ways to increase search ranking in Google when placed on company websites, the company says.

The eight videos available are Wash N’ Fold Service, Express Bag Drop-Off, Keepsafe® Wedding Gown Cleaning & Preservation, Eco2Go Reusable 2-in-1 Bag, Comforter Cleaning, Museum Quality Wedding Gown Cleaning & Preservation, Pick-Up & Delivery, and Tailoring Service.

www.cleanersupply.com/mktprogram | 800-224-5239

Speed Queen has introduced an innovative new stacked washer-extractor/tumble dryer. Previewed at the 2019 Clean Show, the new product is now available for order, the equipment maker says.

“This product is a game-changer for vended laundries, where space is at a premium,” says Steve Bowie, North American sales manager for Speed Queen commercial. “It blends the strengths of our washer-extractors and tumble dryers into one high-ROI package.”

Offered in two capacity options — 30-pound washer-extractor and 30-pound tumbler, or 50-pound washerextractor and 50-pound tumbler — the stacked unit provides great flexibility for store owners in high-rent metro areas or those with stores under 2,500 square feet, Speed Queen says.

For instance, a store with six 30-pound washer-extractors and three 30-pound stack tumblers could install nine of the new stack units and gain capacity while still occupying the same floor space. The upgrade would improve profitability as

well as deliver exceptional ROI, the brand says.

The stacked unit also features Speed Queen’s next-generation control, Quantum Touch. Featuring a sleek design, the touch-screen controls give owners a premium look to differentiate their store. Plus, the intuitive control includes a variety of user-valued functions, such as:

• A number of cycle options with descriptions, so users can tailor cycles;

• Cycle modifier prompts with descriptions, to make it simple to get the desired wash cycle;

• 30 language options, so users are always clear on how to operate units (no more in-store signage to clutter walls);

• 5-inch full-color touch

screens present a cuttingedge image; and

• Clear step-by-step instructions to simplify operation.

Owners benefit through increased profit opportunities from the cycle modifier prompts and by becoming the laundry destination of choice with the most modern, user-friendly machines, Speed Queen says. They’ll also value having greater ability to customize machine cycles.

Plus, owners can expand that technology commitment with a Speed Queen Insights subscription, featuring the Speed Queen app and Speed Queen Rewards. It would give them access to all the data they need to make decisions that increase profitability. The system comes standard with Speed Queen Care, meaning it is factorysupported for additional peace of mind.

www.speedqueencommercial.com | 800-590-8872

SPEED QUEEN LAUNCHES STACKED WASHER/DRYER UNIT

GULF STATES LAUNDRY MACHINERY EARNS HUEBSCH’S HIGHEST HONOR

Several Huebsch distributors were recognized for excellence at the 2019 Clean Show in New Orleans. Chief among them was Gulf States Laundry Machinery Co. and its Houston and Atlanta branches, recipient of the Alliance Laundry Systems brand’s highest honor, the 2018 Industry Benchmark (formerly known as Distributor of the Year).

Huebsch also awarded the company its Gold Finance Partner honors for its Houston branch; Gold Technology Partner honors for 13 installs, also for its Houston branch; and Gold Market Knowledge Expert honors for its Atlanta branch.

Pravin Parmar co-owns the Houston branch, while Ben Prema owns the Atlanta branch.

“This distributor could literally have won an award in nearly every category this year,” says Kathryn Rowen, North American sales manager for Huebsch. “They continue to invest in their business and in their staff, and continue to learn and adopt new methods and technologies.”

Parmar attributes the company’s success to its customer-first focus, as well as its commitment to be the best: “We aim to be the expert, share our expertise and create opportunities for customers. That’s allowed us to build a loyal customer base.”

Other Huebsch distributors recognized for excellence were:

• Universal Laundry Machinery, Westland, Michigan — Innovation and Investment Partner Award

Universal invested in its distributorship by purchasing a store and piloting and showcasing Huebsch Command, smart technology that gives businesses advanced performance data, monitoring and adjustment capabilities and more, says Rowen. The distributor also participated in a Huebsch marketing video and worked with the brand’s technology team to improve technology offerings during a pilot program.

• National Laundry Equipment, Nashville, Tennessee — Emerging Star Award

In business more than 50 years, National Laundry Equipment has put its efforts toward growing the company by making necessary investments, Huebsch says.

“J.D. Dixon is well-deserving of an Emerging Star Award,” Rowen says. “He’s a perfect example of someone who has a small company and who is taking the necessary steps to provide complete and optimal support of his customer base.”

• ACE Commercial Laundry Equipment , Westminster, California — Silver Finance Partner

The third-generation family-owned and -operated company services Southern California. Starting out in nothing larger than a storage bin about 20 years ago, ACE has always focused on taking care of its customers by offering quality products and good customer service, gaining it a reputation for conducting fair business dealings, Rowen says.

• HK Laundry Equipment, Armonk, New York — Bronze Finance Partner

The company has served New York and Connecticut since 1967 with coin laundry and on-premises laundry equipment.

HK Laundry works to educate its customers so they are better informed, according to Rowen: “They educate their customers to operate the best Laundromats possible, and their customers recognize the most efficient and durable commercial laundry equipment that is available.”

• Aaxon Laundry Systems, Fort Lauderdale, Florida — Silver Technology Partner

Aaxon serves parts of Florida. For more than 40 years, the company’s mission has been to provide customers with the latest in premium, energy-efficient laundry equipment; strategic sales support; flexible financing; and fast, reliable service.

• Laundry Systems of the Carolinas, Spartanburg, South Carolina, and Corryton, Tennessee — Gold Market Knowledge Expert

Laundry Systems of the Carolinas has an innate knowledge of its market, existing laundries and store owners, Rowen says, and continually canvasses and blitzes its territories for opportunities.

LONGTIME INDUSTRY VETERAN BIRCHFIELD RETIRES

Herald Birchfield, a laundry veteran with nearly a half-century of industry experience, has decided to retire, reports Vend-Rite Mfg., his final employer.

Birchfield started selling washers and dryers in the 1970s. He and his wife, Nancy, ran the Maytag commercial laundry division of Ahrens & McCarren in St. Louis, Missouri, until joining Vend-Rite in 1999.

“I sold Vend-Rite’s soap venders to my customers for years, so when Vend-Rite had an opening, I took it,” Birchfield says in a company press release. “I have really enjoyed being able to work with the distributors and the store owners.”

(From left) Jason Fleck, senior regional sales manager, Huebsch; Sunil Parmar, co-owner, Gulf States Machinery; Ben Prema, co-owner, Gulf States; Pravin Parmar, co-owner; Hannes Saeubert, North America vice president of sales and marketing, Alliance Laundry Systems; Harish Parmar, co-owner, Gulf States; Kathryn Rowen, Huebsch national sales manager; and Norbert Cardenas, regional sales representative, Gulf States’ Georgia branch. (Photo: Alliance Laundry Systems)

(Washer

Bath Level — The water level of each bath (prewash, wash or rinse) can also be adjusted for significant savings in water costs. Continental’s ProfitPlus® Control, for example, offers five levels, from 0 “without water” to 4 “extra-high level.” A slightly lower water level will likely produce the quality results customers expect, at a lower cost.

Automatic Detergent Dosing — A few washers on the market allow for automatic dosing of detergents, bleach and softeners. There’s high profit potential in offering this convenience to customers. Automatic dosing can be programmed into compatible washers.

Vend Price — Of course, each program can be assigned a vend price depending on the utilities consumed and customer demand. For example, an owner might charge more for Hot and Warm cycles. Some controls also allow time-of-day and day-of-week pricing. This allows the automatic modification of the programs during busy and slow periods based on a calendar or promotion. Smart vend pricing can help laundries draw customers and offset energy costs. Similar to the car wash industry, some laundry owners are choosing to raise prices during busy periods and offer

standard pricing during non-peak periods.

Modifiable Extras — Occasionally, washers go beyond the normal program options of Hot, Warm and Cold by offering an “extra” wash, rinse or spin. While the extras come preprogrammed with factory default settings, owners can tweak those variables to further conserve utilities and improve profits. In doing so, they can adjust water levels and temperatures, wash/rinse/extract times, extract speeds and vend prices. And, each time a customer selects an extra, the vend is a bit more for that load. Extras can significantly contribute to greater revenue per turn and improved store profits.

At the end of the day, it’s important that any program tweaks make sense. Evaluate how each change might impact your customer, as well as your laundry’s bottom line. ACO

Tod Sorensen is a regional sales manager at Girbau North America and vice president of Continental Girbau West, a fullservice distributorship serving the Southern California vended, on-premise and industrial laundry markets. He holds more than 20 years of experience in vended laundry development and market analysis. He can be reached at tsorensen@cgilaundry.com or 866950-2449.

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His passion for the industry made retirement a difficult decision, Vend-Rite says, but at age 76, Birchfield has decided to slow down and spend more time with his wife and family.

“I’ve enjoyed all the relationships I have in this industry and will miss seeing all my friends on the road during show season, but it’s time,” Birchfield says.

He and his wife reside in Lakeland, Florida.

WASH-DRY-FOLD POS PROMOTES GOLLAHON

Wash-Dry-Fold POS, a supplier of point-of-sale systems for Laundromats, has promoted Ian Gollahon to equity partner, company President Brian Henderson reports.

Henderson brought Gollahon on board shortly after starting the company in 2016.

“I was focused on fulfilling incoming orders and I needed somebody to call back a list of Laundromats that had requested information on our POS system and to help me prepare for Clean Show 2017 in Las Vegas,” Henderson says. “He had experience with B2B sales and trade shows, so it seemed like it might be a good fit.”

Gollahon has personally sold over 200 Wash-Dry-Fold POS systems, accounting for the majority of systems in use today, he adds.

“After our resounding success at the Clean Show this past June—our biggest month in sales ever—it was clear that we needed him full-time,” says Henderson. “Our new equity split has enabled him to quit his corporate career and focus on WashDry-Fold full-time.”

Gollahon also serves as the company’s sales and marketing director.

WEST COAST DISTRIBUTOR PWS ADDS DUQUE TO STAFF

In a move to solidify its place as a complete full-service commercial laundry distributor, PWS - the Laundry Company reports it has hired long-time industry veteran Alfredo Duque of AMD Card Solutions.

AMD has specialized in the installation and service of payment systems in the Laundromat and multi-housing equipment industries.

PWS says it will now be well-positioned to advise Laundromat and apartment owners on all aspects of payment systems. This has become an extremely important skill set, the distributor adds, as owners have added credit card, loyalty card and mobile payment options to their vended laundry equipment.

“We could not be more excited to bring on Alfredo to the PWS family,” says Brad Steinberg, co-president of PWS. “His talents will be an exciting addition that should round out PWS’ best-inclass product and service offerings. This addition is another investment into being able to offer a complete set of services to PWS customers.”

GENUINE PARTS CELEBRATES 5 YEARS WITH NO LOST-TIME ACCIDENTS

Alliance Laundry Systems reports that its Genuine Parts warehouse in Ripon, Wisconsin, is celebrating five years with no losttime accidents.

“One year with no lost-time accidents is quite the feat in the shipping world, but five is something only the best teams can accomplish,” says Brian Stark, global general manager of Genuine Parts.

The warehouse has 50 full-time employees who pick, pack and send 530 shipments per day, or 11,000 per month. That translates to 134,000 shipments per year, or 670,000 over five years.

“Safety is one of our top priorities, and it shows through this recent accomplishment by our talented team,” adds Stark. “I’m very proud of our Ripon team.”

WASH MULTIFAMILY LAUNDRY SYSTEMS PARTNERS WITH HERCULES

WASH Multifamily Laundry Systems, a laundry facilities management service company, reports it has partnered with Hercules Corp., a third-generation laundry provider based in Hicksville, New York.

As a result, WASH says it will reinforce its market presence throughout the Northeast in the multifamily and college sectors, while expanding into on-premise commercial laundry services tailored to hotels, assisted living and gyms.

“We are delighted that Hercules Corp has joined forces with WASH, as we share a focus on quality, integrity and customer service,” says Jim Gimeson, CEO of WASH. “Through this partnership, we are now the nation’s leading laundry facility management provider with more than 130 years of collective experience in the laundry industry.”

Hercules provides end-to-end laundry room design, installation, management and service for multi-housing, colleges/universities, hospitals and on-premise markets in New York, New Jersey, Connecticut and Pennsylvania. The company operates from its 40,000-square-foot headquarters with a focus on customer service bolstered by leading-edge technology.

“We are confident that this partnership will be in our customers’ best interests — both in service and in technology capabilities,” says Andrew May, Hercules Corp. president. ACO

Ian Gollahon

Alliance’s Genuine Parts warehouse team is made up of 50 employees who send 530 shipments per day. (Photo: Alliance Laundry Systems)

• 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.