American Coin-Op -April 2020

“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.

Continental soft-mount ExpressWash Washers are so much simpler to install than hard-mount washers, they can save you thousands. Unlike hard-mount washers, Continental soft-mount ExpressWash Washers slide into place without the need for reinforced concrete foundations, drilling or bolt-down. A laundry that installs 50 Continental ExpressWash Washers will pay up to $12,000* less than a laundry that installs 50 hard-mount washers! Save from the get-go with Continental ExpressWash!

INDUSTRY PITFALLS TO AVOID

There are errors that new laundry owners are prone to make, especially during store conception or early stages of operation. Reps from several equipment manufacturers suggest how you can sidestep these stumbling blocks on your way to profit and peace of mind.

GOIN’ WITH COHEN: OLDIES BUT GOODIES

San Diego contractor Scott Badarak is cut from the same cloth as other tradesmen who have long taken a fancy to self-service wash-and-dry. The prospect of resurrecting a neglected coin-op doesn’t scare him. Turns out he has quite an eye for fixer-uppers. But he isn’t looking to flip. His are keepers.

COLUMNS

30 FROM ONE STORE TO MORE: WHEN TO EXPAND

The choice to expand a vended laundry portfolio may be based on your interest in strengthening positioning and brand, improving on the current business concept or expanding service offerings, says Maytag® Commercial Laundry’s Nick Koukourakis. Whatever your reason, keeping a few key items in mind may improve your chances of expansion success.

32 LOOK TO OTHER INDUSTRIES FOR IDEAS, SOLUTIONS

Retired store owner Paul Russo believes great business ideas and solutions are around us every day. Drawing from retail businesses and even some non-retail businesses, he shares ideas for attracting and retaining new customers, crime prevention, store design, maintenance and more.

HOW DO THE NUMBERS LOOK?

Bruce Beggs

You can tell a lot about a self-service laundry business by its numbers, and this issue of American Coin-Op has plenty of numbers to use when analyzing a store’s operation.

Benchmarking—comparing your business against certain industry standards, as well as your competitors—is a tried-and-true tool.

But you need solid information to make the effort worthwhile. Our annual State of the Industry survey report provides the kinds of data and statistics that you can use to bolster your operation.

Analyzing survey results received from qualified respondents based around the country, we take a look at 2019-20 business conditions, equipment purchases, vend prices, turns per day, and much more.

It’s easy to see how you stack up by responding to questions like these:

• Did your total vended laundry business increase or decrease in 2019, and by what percentage?

• What wash and dry vend prices are you charging today?

• If you offer wash-dry-fold service, how much do you charge per pound?

• What’s the average number of turns per day for a front loader in your store?

• Have you purchased, or are you planning to purchase, new equipment this year?

• What was your store’s utilities cost, as a percentage of gross, last year?

Our report begins on page 6. Dig in and find out how your numbers look. Here’s hoping you like what you see!

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

Mathew Pawlak, Production Manager

Nathan Frerichs, Digital Media Director

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

ADVISORY BOARD

Jaimie

Main: 312-361-1700

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© Copyright AMERICAN TRADE MAGAZINES LLC, 2020. 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.

Latest Analysis Continues to Reflect Vended Laundry Industry’s Strength

By Bruce Beggs, Editorial Director

How do you know if you stack up favorably with other laundry owners across town and around the country? Would you consider 2019 a good year or bad year for you? Are your vend prices in line with those of other store owners?

Answers to questions like these and more can be found in American Coin-Op’s annual State of the Industry survey report, which provides store owners and operators a valuable opportunity to compare their operation to others in the industry.

This year’s survey focused on 2019-20 business conditions, pricing, equipment, turns per day and utilities cost.

When asked about their 2019 business results, respondents were given the opportunity to state whether their results were up, down or unchanged. Surveys conducted prior to 2012 asked respondents only if their business was up or down, so keep this in mind if you’re making comparions to results of that vintage.

The survey is an unscientific, online poll

of American Coin-Op readers who operate stores. Some percentages may not equal 100% due to rounding or other factors.

AUDIENCE BREAKDOWN

Roughly 56% of respondents own just one self-service laundry, while 44.1% are multi-store owners (28.8% of total respondents own two or three stores, 15.3% own four or more stores).

Approximately 42% of respondents own their store space, 42.4% rent their store space, and the remaining 15.3% say the arrangement varies by property.

Fully attended stores among the respondents account for 39.0%. Roughly 25% are partially attended, and 20.3% are unattended. Among the remaining 15.3%, the arrangement varies by store.

Nearly 90% of laundry owners polled employ either full-time or part-time workers in their stores. Roughly 46% of those respondents have four or more employees, while 32.2% employ two or three. The remaining 11.9% have only one employee (owner excluded).

On average, responding store owners

have 1.6 full-time employees and 5.9 parttime employees (this calculation reflects averages by respondent, not by store).

As for payment types, 91.5% of respondents say they offer coin, 42.4% offer card, and 22.0% offer other non-coin systems (store owners were asked to identify every type that applies to their operations). Roughly 49% of respondents offer customers more than one type of payment (compared to 31% last year).

2019 BUSINESS VS. 2018

For 2019, 74.6% of operators say their overall self-service vended laundry business increased from that of 2018. Specifically, these operators reported an increase in business (gross dollar volume) last year compared to 2018.

In our 2018-19 survey, 81.5% reported an increase, while 77.5% reported seeing sales growth in the survey prior.

The average 2019 business increase was 12.6%, up from 9.9% in 2018. Other past average business increases have been 9.4% (2017), 11.2% (2016), 9.6% (2015), 8.9% (2014), 9.6% (2013), 11.7% (2012), 11.5% (2011) and 10.8% (2010).

Following is a breakdown of 2019 business increases (the figures relate to those reporting increases, not all respondents):

• Operators with a business increase of less than 10%: 34.1%;

• Operators with a business increase of 10-14%: 45.5%;

• Operators with a business increase of 15% or more: 20.5%.

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53.7%

Just shy of 12% of operators faced a decrease in business (in gross dollar volume) in 2019, up from roughly 8% in 2018. The percentage was 10% in 2017, 22% in 2016, 17% in 2015, 29% in 2014, 25% in 2013, 30% in 2012, 35% in 2011, and 58% in 2010.

The average 2019 business decrease was 7.5%, more than the 5.0% decline reported for 2018. Other prior average decreases have been 6.7% (2017), 9.1% (2016), 16.3% (2015), 6.6% (2014), 8.7% (2013), 9.5% (2012), 10.2% (2011) and 11.2% (2010).

Among respondents who reported experiencing business decreases in 2019, the decline was as low as 3% or as high as 20%.

Roughly 12% of respondents say their 2019 business was unchanged compared to 2018 business.

The self-service laundry industry remains healthy, on average, based on these survey results. While the share of responding operators who saw their 2019 business increase was seven percentage points less than the year before, the average business increase was nearly three percentage points higher.

The 11.9% of responding operators who saw their 2019 business decline was only slightly more than 2018’s accounting. And the average decrease of 7.5% only slightly exceeded the 5.0% reported for 2018.

DROP-OFF STILL POPULAR OFFERING

Drop-off service remains a popular service offering, but the share of operators seeing increased business in that category was not quite as high as the prior year.

Roughly 54% of operators reported that drop-off service business (in gross dollar volume) increased for them in 2019, compared to 58% in 2018, 68% in 2017, 61% in 2016 and 52% in 2015.

The average increase in drop-off service business last year was 21.0%, compared to 29.8% in 2018, 26.1% in 2017, 18% in 2016 and 13.7% in 2015.

Slightly more than 12% of respondents saw a decrease in drop-off business. That

compares to 10% in 2018, 16% in 2017, 6.5% in 2016 and 15% in 2015.

The average decline in drop-off service business in 2019 was 18.2%, compared to 17.3% in 2018. Other previous average declines have been 7.8% in 2017, 15% in 2016, 16% in 2015, 11.3% in 2014, 9.0% in 2013, 18.1% in 2012, 18.1% in 2011 and 18.8% in 2010.

Roughly 34% of respondents say their 2019 drop-off business was unchanged from the previous year. That compares to 32% for 2018, 16% for 2017, 35% for 2016 and 36% for 2015.

DROP-OFF PRICING

Current drop-off pricing (in dollars per pound) ranges from $1 to $2.25, based on the survey responses.

Following is a breakdown of the most popular drop-off service prices (per pound), followed by the percentage of operators who use them:

1. $1.25 (30.3%)

2. $1 and $1.50 (tie, 12.1%)

4. $1.35 (9%)

Overall prices for drop-off service remain relatively consistent with previous years’ surveys. In total, 15 different drop-off prices were reported in this year’s survey (compared to 10 reported in last year’s poll).

Roughly 56% of operators who took the annual survey offer drop-off service, just a percentage point less than the share calculated in last year’s poll.

COMMERCIAL BUSINESS

Among store owners who offer commercial laundry services (this year, the share

was 50.8%), 33.3% reported that business (in gross dollar volume) increased for them in 2019. The average increase was 12.9%.

Ten percent of respondents saw a decrease in this category. The average drop in business was 13.3%

Roughly 57% of respondents say their 2019 commercial laundry business was unchanged from the previous year.

VENDING SALES

The share of respondents reporting their vending sales increased in 2019 was 44.9%, down from roughly 56% last year. Roughly 16% reported a decline in vending sales in 2019, compared to 10% for 2018. Operators reporting no change in vending sales for 2019 accounted for 40.8%, compared to 33.3% in the prior year’s survey.

The average vending sales increase was 14.3%, which matched 2018’s average hike. The average decrease in 2019 was 11.4%, compared to 6.9% reported for 2018.

HOW MUCH FOR A WASH?

Respondents were asked to report how much they charge for a variety of washes.

Roughly 63% of operators—slightly more than the 61% in the 2018 survey— offer top loaders at their store(s). The price range for a top-load wash is $1.25 to $3.75.

Here are the most popular top-load prices, followed by the percentage of respondents using them:

1. $2.50 (25.6%)

2. $2, $2.25 and $3 (tie, 10.3%)

2020 prices for a top loader compare favorably to the most popular prices of last year, although some shuffling has occurred. The top price of $2.50 is unchanged but last year’s No. 2 of $2.75 didn’t make the cut this year. 2020’s second most popular prices of $2 and $3 tied for third in 2019.

The most popular prices for some of the small front loaders are:

• 18 pounds: $2

• 20 pounds: $2.50

• 25 pounds: $3

experienced higher drop-off service business (in gross dollar volume) in 2019 58.6% have raised washer prices, or intend to by end of year

The lowest price reported in this group is $2 (18-pound washer) while the highest price is $6 (25-pound washer).

The price range for a 30-pound wash is $3 to $7. Following are the most popular 30-pound prices, along with the percentages of operators who use them:

1. $4 (24.3%)

2. $3.50 (16.2%)

3. $3.25, $4.25 and $4.50 (tie, 8.1%)

The price range for a 35-pound wash is $3 to $6. Following are the most popular 35-pound prices, along with percentages of operators who use them:

1. $4.50 and $5 (tie, 30.8%)

3. $4 and $6 (tie, 15.4%)

The price range for a 40-pound wash is $4 to $7.50. Following are the most popular 40-pound prices, along with the percentages of operators who use them:

1. $4.50 (17.8%)

2. $5.50 (13.3%)

3. $5 (11.1%)

The price range for a 50-pound wash is $4 to $7. Following are the most popular 50-pound prices, along with the percentages of operators who use them:

1. $5.50 (26.3%)

2. $7 (21.1%)

3. $6 (15.8%)

Prices for a 55-pound wash currently range from $6 to $9.

Of all the washer capacities, the 40-pounder and the 60-pounder have the broadest pricing, with 17 different base prices listed by respondents.

The price range for a 60-pound wash is $4.50 to $9. The most popular price is $6, charged by 12.8%. Second is a tie among $6.50, $7 and $8 (10.3% each).

Prices charged by operators for a 75-pound wash today range from as low as $8 to as high as $12. There is no clear No. 1 choice among this year’s respondents.

The price range for an 80-pound wash is $8 to $12. Following are the most popular 80-pound prices, along with percentages of

operators who use them:

1. $9 (21.1%)

2. $10 and $10.50 (tie, 15.8%)

Prices charged by operators for a 90-pound wash today range from $9 to $14.25. For a 100-pound wash, the price range is $10 to $13.50.

Operators who respond to our unscientific survey vary year to year, which may reflect upon the variety of prices reported.

Respondents were asked to provide prices for front loaders of 14 traditional capacities, plus had the option to list others.

DRYER PRICES

Operators were asked to list their current prices for their dryers as “25 cents for X minutes.” A variety of responses was reported, ranging from 3 minutes to 10.

Most popular among this year’s respondents—at 28.6%—is 25 cents for 6 minutes (also the top choice in the previous three surveys). Second is 25-for-5 (27.0%) and third is 25-for-4 (15.9%). Missing from this year’s order of most popular dryer prices is 25-for-7, which was third in last year’s survey.

CHARGING MORE?

American Coin-Op asked respondents if they have already raised washer and/or dryer prices in 2020, or if they plan to do so before the end of the year.

Regarding washer prices, the majority of respondents (58.6%) say they have already raised prices, or intend to do so, by the end

of 2020. Roughly 22% say they have no such plans, and the remaining 19.0% are undecided.

In support of their decision to increase prices, many operators say they implemented (or will implement) the increase to cope with higher costs, among them utilities, rent and labor. Many store owners report increasing prices annually based on their rising costs. But in some cases, it’s been two or three years since certain operators have raised prices.

Several respondents say purchasing new washers provided the perfect opportunity to increase those vend prices.

Regarding dryer prices, 59.3% say they have not raised prices, nor do they plan to do so by the end of the year. Twentytwo percent say they have raised, or plan to raise, their dryer prices. The remaining 18.6% are undecided.

TURNS PER DAY

Turns per day refers to the number of cycles (turns) that each of a store’s machines completes daily. For each machine class (top loader or front loader), you can calculate this using total cycles for a one-week period divided by total number of machines in the class, then dividing by seven.

Currently, the average turns per day for top loaders amongst respondents is 3.3, down slightly from last year’s survey (3.5). For front loaders, the average number is 3.6 turns per day, compared to 3.5 registered from last year’s survey.

PURCHASED IN 2019

Roughly 46% of respondents purchased at least one piece of equipment (washer, dryer, water heater, vending machine, or other) in 2019, down from 48% the prior year.

Following is a breakdown of 2019 purchases by respondent. (Editor’s note: Percentages do not total 100% because some buyers purchased equipment in ▼

multiple equipment categories.)

• 10.2% purchased at least one top loader. The average purchase was 5.0 machines per operator.

• 23.7% of respondents purchased at least one front loader. The average purchase was 9.5 machines per operator. (Editor’s note: A single-owner purchase of 76 machines was not included when calculating the average.)

• 11.9% purchased at least one dryer (regular or stack). The average purchase was 6.7 machines. (Editor’s note: A single-owner purchase of 86 machines was not included when calculating the average.)

• 5.1% purchased a water heater.

• 15.3% purchased a vending machine. Changers, card readers, a water pressure pump and a ozone system were also listed as having been purchased.

2020 SHOPPING LIST

Operators were asked if they purchased, or plan to purchase, new equipment in 2020.

Approximately 36% of respondents plan

to add some type of equipment (washer, dryer, water heater, vending machine, or other) to their mix, or have already done so, in 2020. By comparison, last year’s percentage was 44%.

Following is a breakdown of purchases operators have already made in 2020, or plan to make by the end of the year: (Editor’s note: Percentages do not total 100% because some buyers purchased or plan to purchase equipment in multiple equipment categories.)

• 11.9% of respondents have purchased, or plan to purchase, a new top loader this year. The average is (or will be) 6.6 machines per operator.

• 25.4% of respondents have purchased, or plan to purchase, a new front loader this year. The average is (or will be) 7.0 machines per operator. (Editor’s note: A single-owner purchase of 40 machines was not included when calculating the average.)

• 13.6% of respondents have purchased, or plan to purchase, a new dryer this year. The average is (or will be) 12.5 machines per operator.

BIGGEST CHALLENGES

What would you say are your biggest challenges in operating your self-service laundry? American Coin-Op offered a list of eight, plus the chance to write in “other” choices, and asked operators to select all that applied.

Here are the results:

1. High cost of utilities (57.1%)

2. Rental costs (37.5%)

3. Finding/keeping good employees (34.0%)

4. Labor costs, and maintenance costs (tie, 32.1%)

6. Equipment abuse/vandalism, and too much competition (tie, 19.6%)

8. Other (10.7%)

9. Poor industry image (5.4%)

UTILITIES COST

Operators were asked about their 2019 utilities cost (as a percentage of gross). The responses ranged from 9.2% to 50%. Collectively, respondents paid an average of 20.4% for utilities (as a percentage of gross), down slightly from 21.7% last year.

The most common individual response was 20%. Whereas 57.8% of respondents reported a utilities cost of 20% or less last year, 60.3% reported the same this year.

For many operators, utilities account for their largest store expense; 69.2% of respondents place it either first or second on their list of five common expenses (rent, utilities, payroll, insurance, and loan payment for new equipment). Meanwhile, insurance is the smallest store expense, numbered four or five on the list by 74.1% of those polled.

FORECAST FOR 2020

Roughly 58% of respondents are optimistic that their 2020 total business will be better than 2019’s. Nearly 34% expect business to be about the same, while 6.8% say their business will not perform as well in 2020 as it did in 2019.

ACO

Industry Pitfalls to Avoid

hen embarking on a new venture, we’re bound to make mistakes. Laundry investors are no different. There are errors that new owners are prone to make, especially during store conception or early stages of operation, that could cost them. This month, American Coin-Op sought the counsel of experts from several equipment manufacturers to identify some of the pitfalls to sidestep among the makings of a typical self-service laundry operation.

STORE SITE SELECTION AND ACQUISITION

A big pitfall here is having the desire to get going too quickly or to be in a particular area can cause an owner to overpay for a location, says Kevin Hietpas, vice president of sales, Dexter Laundry.

“For example, a lease might be very attractive in the early years, but ongoing yearly rent increases can quickly make the location unprofitable,” he says. “For this reason, prospective owners need to take a longer-term perspective in understanding their lease and how it will impact the bottom line of their business, not just starting out, but over the long term as well.”

mix of equipment for their neighborhood demographic,” Lange says.

Co-tenants are sometimes overlooked, says Aubrey Pollesch, Laundromat sales development manager for Alliance Laundry Systems: “If you are in a strip center, it’s important to understand who your co-tenants are and if they will help drive customers to your business or scare them away.”

Tod Sorensen, sales manager for Continental Girbau, sees not doing due diligence on the lease as a danger.

“Consult people in the business to negotiate your lease,” he says. “Get several legal opinions on your lease before signing. No matter how your business performs, without a rock-solid lease you’ll be doomed.”

STORE DESIGN/LAYOUT

Store owners can be rightly focused on logistics, but there is potential to sometimes overlook elements related to store design, Lange says. A store’s general layout and condition, from its overall cleanliness to specific components like lighting, equipment, and aesthetic look and feel, are important considerations.

(© kellymarken/iStockphoto)

and not having enough storage space.

“Is this just another self-service laundry or will you expand services to provide drop-off wash/dry/fold, commercial laundry services and pickup and delivery?” he says. “Be sure you have adequate space to provide these services, outwardly communicate and market these convenient and appealing services to the entire demographic in your service area.”

As for the equipment footprint, he adds, “Personal space is important. … Make sure you have balanced wash, dry and folding areas to efficiently move customers through the laundry process.” And plan for storage of snacks, drinks, soap, dropoff laundry, etc.

Taking the time to plan your store design can turn a potential pitfall into an opportunity, Hietpas says.

“Owners with a great feel for store design and space utilization can sometimes get very favorable deals on ‘oddly shaped’ or otherwise imperfect spaces and turn them into highly functional (and profitable) locations,” he says.

PARKING AND ACCESS

Chad Lange

Chad Lange, sales director of Maytag® Commercial Laundry, says owners may inadequately research the neighborhood, missing an opportunity to learn more about the store’s potential customers.

“To help ensure owners are informed before making decisions, our distributors can provide critical support to owners by counseling them through location selection, competitor assessments, aspects of store construction and choosing the right

“A priority in this area for owners should be making sure that customers feel safe and comfortable in their stores,” Lange says. “Clear sight lines and machine-offering indicators, along with judicious use of lighting—both natural and artificial—can really make a difference.”

“Some mistakes store owners make are not having enough dryer pockets (which holds up customers on weekends waiting for dryers), not having enough large washers, putting large washers in the back of the store where customers don’t always walk … and not having enough folding tables,” Pollesch lists.

Sorensen takes issue with not clearly defining the laundry’s purpose, cramming too much equipment into too little space,

Aubrey Pollesch

“If you have a great spot—but nowhere for people to park—they will go elsewhere,” Pollesch says. “If customers have to wait five minutes to turn left into your parking lot every time they want to visit, that may be enough to send them to your competitors.”

“Parking must be convenient with good ingress, egress and signage to designated store spaces,” says Sorensen. “We recommend four to five spots per 1,000 square feet of laundry service, with safe and relatively close access to the store entry/exit.”

By Bruce Beggs, Editorial Director

How to Do Signage the Right Way

Your first step to stellar signage is to understand the different categories — dynamic and static — and the purposes they fulfill.

Easy to control and modify quickly, dynamic signs typically come in the form of digital signs that can be placed nearly anywhere. They are especially good for advertising promotions, services and hours of operation. Because content is always changing, consumers pay close attention. This signage can be mounted on buildings or poles, requires electrical power to operate, and is typically cost-effective.

Static signage doesn’t change. It’s permanent and can be placed just about anywhere. This type of signage can be hung, wall- or pole-mounted, adhered to windows, placed on top of bulkheads or stuck onto laundry equipment itself. Static signs can illuminate for nighttime impact.

The next step is to think about the different sign types, whether they should be static or dynamic, and whether or not you need or want them.

Big Exterior Sign — Two predominate exterior signs immediately establish a laundry’s location and brand. Ideally, a

business should invest in a pylon sign, which is double-sided and freestanding on a pole. Pylon signs located close to the street are elevated above obstructions and draw attention from passersby and drivers. Locate another sign on the building itself, either mounted to a wall or printed on a canopy. The message and logo must be easy to see and quick to read. If you have large windows, consider using graphics there.

Vehicle Wrap — If your laundry’s services take you out and about, consider investing in a vehicle wrap. This wrap allows you to spread your services and message well beyond home base, and into areas thick with the customers to whom you cater. Generally speaking, vehicle wraps last for years.

Monitor Signage — A great way to utilize a TV screen or monitor is by using it inside the laundry to announce promotions and services. You can create different slides or videos to display. The ever-changing content captures attention inside the store.

Detail Signage — These are all the little signs inside and outside the laundry that clarify information and directions, including

parking, machine operation, card system operation, services, where to find coupons, hours of operation, entries and exits, etc.

Before developing any signage, perform an extensive walkabout of the property, preferably with line drawings in hand (or sketch it out on a notepad). Start out on the street(s) bordering your business, continue into the parking lot, then walk completely around the exterior perimeter. Determine what signage is

beneficial on your front door, windows and any blank exterior walls. Proceed inside and map out signage needs on bulkheads, bathroom doors, TV monitors, walls and machines.

Working with an experienced marketing agency will enable you to receive a project quote and creative suggestions, plus get help staying on budget. ACO

“Owners must always keep in mind that customers are loading and unloading numerous bags and/or baskets, and the convenience of not having to carry these loads over large distances can’t be underestimated,” Hietpas says.

Barriers like oneway streets and/or nearby rivers can be major obstacles making it more difficult for customers to access a location. And if the location is going to rely on public parking, Hietpas adds, review the rules and fees for parking, especially on nights and weekends when store usage is generally higher.

EQUIPMENT ACQUISITION (PURCHASE OR LEASE)

Avoid buying low-performance machines just because of price, says Sorensen. And Hietpas warns against not doing enough

“homework” before making a purchase.

“Equipment is the primary revenue producer of your service, and the reason customers come to your store,” Sorensen says. “Don’t short yourself on technology, performance or reliability simply based on price. The investment you make today will ensure you have the most efficient and profitable laundry for years to come and have an effect on future utility increases and ultimate resale value.”

“Many times, individuals who purchase an existing location are anxious to make improvements and they make an equipment purchase before they have a real plan or handle on what the store needs,” Hietpas says. “They may simply purchase newer models of what the store already has, not realizing that the existing mix of equipment was outdated and completely out of step with what is needed in today’s market.”

“Sticker shock” at the investment required for large-capacity machines could

spur a new owner to purchase more small, lower-cost machines, thinking it’s the best way to update a location, he adds. “After their purchase, they quickly realize that this decision severely limits the store’s revenue-generating potential and isn’t what customers are looking for.”

Owners can miss an opportunity to closely consider capacity needs for their equipment mix, according to Lange.

“With bigger capacities, multi-load machines allow for higher pricing, which means they can potentially bring in more revenue per wash than single-load machines,” he says. “Multi-load washers offer the benefit of high extraction speeds to help with fast drying, and quick turnover.”

“Often, store owners focus too much on the price of the equipment purchase/ ▼

— Kim Foxcroft, Continental Creative Services (CCS)

Two predominate exterior signs immediately establish a laundry’s location and brand. (Photo: Continental Creative Services)

Tod Sorensen

Kevin Hietpas

replacement instead of the impact and ROI it will have on their business,” Pollesch says. “When you look at things like utility costs and maintenance/repair costs, many times, you can come out money ahead when you purchase new equipment and increase price, increase modifier usage, reduce utilities/repair costs and take advantage of finance promotions.”

DAYS AND HOURS OF OPERATION

“An important pitfall to be aware of regarding hours of operation is that hours might be restricted by the terms of your lease, or even by the local municipality,” Hietpas warns. “If you are planning to operate 24/7, or you believe that maximum hours of operation are critical to the success of your business, it’s important to make certain that you have the ability to operate the way you need to.”

Pollesch recommends store owners understand their customer base and their surroundings when determining days/hours of operation.

“If their store is located in an area where there are factories/jobs that work a third shift, they could be missing business by not offering a 24-hour store or early hours. … If a store is in a less safe area ... I recommend following the lead of what other co-tenants in the strip center or area are offering.”

PAYMENT METHODS AND ACCEPTANCE

Relying only on coins and cash for payment can be a hindrance to future growth, some experts say.

“When you think of the millennial generation and those after, many do not carry cash,” Pollesch says. “Offering multiple payment options will help increase your store’s appeal. Plus, cashless systems offer rewards programs to drive customer retention.”

“Alternative payment systems bring customer loyalty, faster customer turnover and convenience along with expansive management and marketing tools,” Sorensen says. “Coins are labor-intensive and tie up cash in inventory.”

“Like with major equipment purchases, this is not a time to act quickly, this is a time to do your homework and to take time to understand the costs and benefits of the various options available,” says Hietpas. “There are various third-party options that can be adapted to both newer and older equipment, and there are new, factory-ready options that come ready to

turn on. … In understanding the options available, it is important to understand both the upfront cost (readers, wiring, etc.) as well as ongoing costs (replacement and maintenance, cards, subscriptions, payment processing, etc.).”

EQUIPMENT MAINTENANCE

Sometimes, owners only attend to equipment when something goes wrong, says Lange.

“This can lead to even more downtime, and can be avoided by setting a routine schedule that allows you to conduct specific tasks,” he says. “Creating a schedule is about preventative maintenance—preventing repairs and downtime over the life of the machine.”

Simple equipment maintenance steps that can help prevent larger issues, according to Pollesch, include cleaning dryer lint screens daily, checking the washer-extractor door locks for proper operation, checking water inlet valve hose connections on washerextractors for leaks, checking drain valves or drain system for clogs, and leaving washer doors open at day’s end to allow moisture to evaporate.

“Blowing off” preventative maintenance “results in a less-efficient store and equipment breakdowns,” asserts Sorensen. “Daily, weekly and monthly PM schedules are key to long-term, successful operation.”

And equipment must be easy to access from the front, top and back. Do not bolt machines too close or not provide access between narrow, dimly lit and cluttered bulkheads or preventative maintenance won’t be done, he adds.

“A great way to understand your equipment better is to attend a service seminar or open house at your local authorized distributor,” suggests Hietpas. “These are great events to meet other owners as well as talk with local and factory representatives who can help you understand how to get the most out of your equipment.”

STORE CLEANLINESS

“Any store that does not invest the time/ resources in providing a clean store is missing the minimum customer expectations within the industry,” warns Pollesch. “If you keep your store clean, your customers will respect that and help keep the store clean themselves.”

Cleanliness is an area where first-timers generally excel, according to Hietpas.

“A pitfall to avoid is working hard, but

not smart,” he says. “There are many tricks to be learned and, once again, a service school or open house at your local authorized distributor is a great place to learn them. Hard work coupled with smart work will yield even better results.”

EXTRA PROFIT CENTERS

Additional ways to generate revenue— vending (detergents, snacks, soda, ice cream, etc.), games, ATM, etc.—are great, Hietpas says, but first-timers must consider not just what will generate the most revenue but which of them they have room for and where, as well as what mix of additional revenue sources will add to the overall experience for laundry users.

“This is where having an effective store layout comes into plan once again,” he says.

A mistake some store owners make specific to offering wash-dry-fold (WDF) is not educating/advertising, according to Pollesch.

“We often assume people know what WDF is, but that’s actually not the case. You’d be surprised at how many selfservice customers may not know what WDF is or the value of it to them or that you offer it.”

Make sure to have enough signage explaining it, she suggests, plus you can send WDF marketing/promotional offers via text or e-mail to target and convert specific self-service customers.

SOME OTHER IMPORTANT ASPECTS

Sorensen considers not interviewing all of the equipment distributors in your area, and not having attendants in your store to be avoidable pitfalls.

“It’s a big pitfall to buy from one company without exploring what other companies offer,” he says. “Look for an established distributor offering the full gamut of products, parts, services and marketing support.”

About the importance of attendants, he adds, “This is too great an investment to not have eyes and ears onsite. Attendants also make customers feel comfortable, safe and welcome.”

From Hietpas’ view, when considering the initial investment to update a location, budget a few extra dollars to improve the overall décor: walls, floors, bathrooms, etc.

“Our best customers are going to spend an hour with us every week, and there is no reason that the surroundings shouldn’t be a pleasant space to be in.” ACO

by Laurance Cohen

Central vacuum systems and soap tray cleaning hoses are a rare sight at Laundromats. The same goes for keyless door entryways or magnetic locking bulkhead panels.

These nifty features most operators overlook on their to-do list are tucked away inside Scott Badarak’s laundries. And in San Diego’s hotly contested market where he competes for dirty duds, those little things make a big difference.

The 54-year-old Californian is cut from the same cloth as other tradesmen who have long taken a fancy to self-service wash-and-dry. For them, it’s always been an

Oldies but Goodies

SanDiegocontractornailsrehabprojects

opportunity to collect some extra coin while hammering away at the job site.

“Anybody who has building experience is going to feel more comfortable jumping in with both feet,” he tells me as we make the rounds to his four laundries. “A broken machine, broken pipe or broken electrical, it doesn’t scare you.”

And neither does the prospect of resurrecting a neglected coin-op. Turns out he has quite an eye for fixer-uppers. But Badarak isn’t looking to flip. His are keepers.

DEMANDS PREPARATION AND RESPONSE

By the time he takes the helm, these tired operations need more than a little TLC. They require a pro to gut the insides, bring them

up to today’s standards, and toss in some extra touches that only come from having three decades of projects under your belt.

Badarak knows if there’s one thing you can expect, it’s the unexpected.

“Someone who doesn’t have any experience and thinks they can come into the laundry business and just open the doors and empty coins is misguided. That’s not the case,” he says. “You’re always going to get the call.”

Those inevitable pleas for help are something this operator takes seriously. Working construction while keeping tabs on a chain demands preparation and response.

“I have cameras, I have emergency numbers and answer my phone,” he says with

Tina and Scott Badarak pose at their flagship Serra Mesa Laundry & Cleaners, which was brought back to life after its closure in 2011. (Photos by Laurance Cohen unless otherwise noted)

GOIN’ WITH COHEN

a snap of his fingers. “I’m there if there’s an issue.”

Smartphone monitoring plays a big role when communicating with customers and determining whether he can walk someone through a remedy or needs to head on over. In either case, patrons are never left holding the bag. “I’ve written checks for 25 cents,” the owner admits.

When something does go on the fritz, Badarak doesn’t let it stay down. Just as he relies on suppliers to have apparatus ready to go for job sites, his own offerings need to be up and operating.

“I’m renting my equipment to my customers and they expect the stuff to work right. You’ve got to approach it that way.”

SAME TOP-QUALITY PACKAGE AWAITS

The chain operates under four distinct trade names—The Laundry Basket, Serra Mesa Laundry & Cleaners, Duds in the Suds Coin Laundry and Mission Village Laundry—rather than a singular brand. But while the signage may differ on the outside, the same top-quality package awaits patrons inside.

Everything’s in order and sparkling clean as we walk into The Laundry Basket, a 1,500-square-foot venue on Clairemont Mesa Boulevard, east of Interstate 15. At

first glance, it resembles any other first-class coin-op. But a closer look reveals just how much thought went into this contractorrebuilt-and-operated store.

Everything appears buttoned-down tight, yet welcoming. Corners aren’t cut here; they’re cleaned.

Rows of two-by-two LED light fixtures emit 4,500 lumens of illumination below drop ceiling panels to a customer area populated by stainless steel and white panel machinery. Quartz flooring underfoot is eye-appealing and, according to the owner, provides increased slip resistance.

Bulkheads here provide more than attrac-

tive cover for mechanicals. Rear access to the first bank of front loaders is gained by pulling back panel sections secured in place by magnetic strips, providing a seamless look from the outside.

The center back-to-back bulkhead boasts a quick-connect hose hookup to the hot water line, enabling cleaning staff to easily spray out residue remaining inside any washer soap tray.

Six top-load washers, vending at $3, stand with 17 front loaders, pushing up to 60 pounds and a $7.25 price point. Over on the dry side are 18 tumbler pockets.

The equipment mix is typical for

The Laundry Basket shown prior to interior demolition. (Photo courtesy Scott Badarak)

The Laundry Basket following its renovation boasts 23 washers and 18 dryer pockets presented in an updated décor. (Photo courtesy Scott Badarak)

Rear access to the first bank of front loaders at The Laundry Basket is gained by pulling back panel sections secured in place by magnetic strips.

GOIN’ WITH COHEN

Badarak’s roster, where front-load hardmounts dominate and stack dryers are joined by as many as three 75-pound singlepocket models.

Entry to the rear maintenance supply area is provided through a digital keypad lock. Once inside, the night crew can carry out either dryer lint removal or floor-cleaning duties utilizing a central vacuum system. Connection is made via an inlet valve located at the end of the tumbler run. The inlet is covered when not in use and the suction hose hangs conveniently on a reel along the back wall of the storage room.

Badarak bought The Laundry Basket from a retiring owner as part of a two-store package in 2017, doubling the contractorcum-operator’s current holdings.

That hasn’t always been the case. Unlike the last three acquisitions, his first didn’t involve an asset purchase. He picked that one up on a handshake.

TRIAL BALLOON-TURNED-FLAGSHIP

Serra Mesa Laundry & Cleaners is Badarak’s flagship and sole tandem outpost — a 1,500-square-foot self-serve operation with attached drop-off dry cleaner. The enterprise is managed and kept in tip-top shape by wife Tina.

“I’m always being thanked for our very clean Laundromat,” she tells me, adding that building clientele hinges on courteous service, offering money-saving tips on machine selection and creating a venue that “feels like home.”

Serra Mesa oozes SoCal’s laid-back lifestyle with its raised front patio capped by a wooden slat canopy, providing the perfect opportunity to lounge while washing. On the other side of the glass are three sundrenched washer banks running perpendicular to a bank of single- and stack-pocket tumblers.

The store was a trial balloon eight years ago for Badarak, who got his start as a contractor in his mid-20s. Residential work transitioned into hotel renovation projects, and with it, tight deadlines.

“You start the day after Thanksgiving and you better be done the first of February,” he recalls of the stressful, yet fruitful undertakings.

Knocking out 200 rooms in a matter of weeks demanded seven-day-a-week workloads. Eventually, he returned to the residential side of the business. Laundromats as a sideline venture intrigued him, and the topic did come up from time to time during dinner conversation with his wife.

Talk turned to action when he spotted an eviction notice on Serra Mesa’s shuttered

storefront a couple of minutes from home. The couple was familiar with the place, having done wash there on occasion. Entire sections of inoperable equipment were taped off, Badarak recalls of the location before its closure.

He secured the site from the landlord on a handshake and was granted 60 days to perform his due diligence prior to inking a deal. “Before signing the lease, I had to do my homework to see if it was something I wanted to do.”

Working through the numbers brought him to the internet, where he got a taste of the local laundry resale scene.

“The first thing I found out was people were selling these for $150,000 or $200,000 and then you had to come in and fix them up,” he remembers. “I’m thinking,

A central vacuum system is employed at The Laundry Basket to handle dryer lint removal and floor-cleaning duties.

Entry to The Laundry Basket’s rear maintenance supply area is provided through a digital keypad lock. Next to the doorway is a covered inlet valve connection for the central vacuum system (pictured at left).

A crew prepares the Quartz flooring at a laundry prior to machine installation. (Photo courtesy Scott Badarak)

GOIN’ WITH COHEN

BATTLE AGAINST THE CLOCK

Enthusiasm to snag a coin-op without paying a dime was tempered by the realization there was a missing piece to the puzzle: past revenue. His focus turned to the prior tenant’s water billing. After some back and forth, Badarak got hold of meter readings by paying off a portion of the account arrearage. With the data in hand, he estimated cashflow and moved forward.

Serra Mesa was brought to four walls, leaving only the underground service lines intact. Electrical service was upgraded and the premises rebuilt over a six-month window at a cost of approximately $80,000, setting the stage for installation of $160,000 in new equipment.

Taking on a closed laundry had the veteran tradesman well within his comfort zone: “I knew what I was up against and wasn’t scared of the renovation.”

As part of the top-to-bottom rehab, his crew sized mechanical feeds beyond the manufacturer’s recommendations. The only surprise on the project: a treasure trove of coins lodged inside the drain line’s P-traps.

As he progressed, Badarak learned more about the iron on the floor and eventually took on machine installation as well. Timetables are a big factor in rejuvenating aging laundries, the owner says, citing the battle against the clock to get the doors open while paying rent.

Oversight of the four stores is convenient. It’s a 10-minute drive from home to the farthest store, and visits to each are part of his daily ritual. Crews clean and close nightly, and doors open automatically each morning at 5 or 6 a.m., depending on the venue.

TRANSITIONING TO DUAL-PAYMENT FORMAT

All of Badarak’s Laundromats were at one time quarter-only operations. In concert with the most recent rehabs, he’s now transitioning to a dual coin/dual token payment format. Quarter and dollar value tokens are dispensed from a multi-hopper changer accepting cash, credit and debit cards, and then redeemable at washers and dryers equipped with multi-coin drops.

Dense multi-family housing is the lifeblood for the chain, but also its Achilles’ heel. At one location, the operator reports up to $2,000 in quarters walk each month from his changers to neighboring apartment laundry rooms.

“I needed some way to control my stores,” he explains. “I knew if I go with tokens and put the signage up, then everything that goes

out of those machines will be used there. I won’t have those people coming off the street.”

Badarak says he appreciates the freedom that comes with having well-designed projects and systems in place.

“I’ve had my own business for 30 years so a Laundromat is just another aspect of being an entrepreneur.”

He gets a kick out of meeting customers. “Everyone asks the same questions: ‘Is this a good business to be in? How much money do you make?’”

The operator doesn’t beat around the bush saying multi-store ownership is a good life. But his easygoing shop talk does carry one caveat: “I tell ’em just don’t buy the one down the street.” ACO

Laurance Cohen crisscrosses the country seeking out the most unique vended laundries. He served as American Coin-Op editor in the early 1990s and currently operates Laundry Marketing Concepts based in Hallandale Beach, Fla. He can be reached at goinwithcohen@outlook.com.

‘There you go — bing — I can get the thing for free.’ That got me excited.”

Duds in the Suds Coin Laundry’s dramatic retool and facelift boasts an all-front-load washer equipment package backed by 18 dryer tumbler pockets. (Photo courtesy Scott Badarak)

A recent Badarak remodel, Duds in the Suds Coin Laundry, is taken back to four walls. (Photo courtesy Scott Badarak)

A water hose at Duds in the Suds Coin Laundry is employed to spray out residue remaining in washer soap trays.

UPCOMING EVENTS

APRIL

Western State Design Service Seminars

7 Portland, Oregon

8 Seattle, Washington

14 Cerritos, California

16 Hayward, California Info: 800-633-7153, ext. 301; westernstatedesign.com

Star Distributing Spring Shows

28 Knoxville, Tennessee

30 Nashville, Tennessee Info: stardistributing.com/ pages/star-distributing-shows; 800-897-7570

MAY

13-14 CLA Excellence in Laundry Conference San Diego, California

Info: coinlaundry.org

14 Gold Coin Laundry Equipment Service School & Sales Event

Newark, New Jersey Info: 800-952-1474; goldcoinlaundry.com/gobig

19 Southeastern Laundry Equip. Dexter Service School Marietta, Georgia Info: 800-522-9274

20 Laundry One Dexter Service School

Canal Winchester, Ohio Info: 800-800-0322

21 Gulf States Laundry Machinery Co. Open House Alpharetta, Georgia Info: 800-875-4756;

gslaundry.com/events

21 Laundry One Dexter Advanced Service School

Canal Winchester, Ohio Info: 800-800-0322

28 AC Power Co. Annual Service School & Open House

Ivyland, Pennsylvania Info: 800-362-1900; info@acpowerco.com

JULY

24 Michigan Institute of Laundering and Drycleaning 2020 Summer Convention

Thompsonville, Michigan Info: 877-390-6453 or mbatora@mildmi.org

FROM ONE STORE TO MORE: WHEN TO EXPAND

As a store owner, the choice to expand your vended laundry portfolio is a significant moment in your business trajectory. There are several reasons you may wish to add one or more stores. You may be interested in strengthening your positioning and brand with customers, or growing your investment portfolio. For some owners, expansion is also a chance to improve on your current business concept, or a time to expand service offerings. As you consider this choice, keeping a few key items in mind may help improve your chances of a successful expansion.

TIMING IS EVERYTHING

Knowing the right time to expand can mean the difference between success and failure. Focusing on key signs of readiness can help guide this decision. Many owners consider expanding when they find themselves reaching their key performance indicators (KPIs) at their current store. This is encouraging, because it often means the return on your initial investment is meeting or even exceeding your financial projections. If your management and organizational set-up seems to be running smoothly, that’s another indicator you might be ready to expand. There’s also the simple matter of time: if you have extra bandwidth to devote to more locations, that’s a positive sign.

David Wieland, private investor at Cardigan Capital, notes that often the best times to expand are really only truly known in retrospect. But, for an industry like coin laundry that remains stable—or even improves—during an economic decline, owners could look to a strong stock market as a positive indicator that expansion is viable.

Other signals to look for include an accelerating rate of high-density rental occupancy rates and high-quality debt with competitive interest rates and low service requirements. He emphasizes, however, that no one knows their business more intimately than the owner.

“Expansion is not only a business decision, but a personal one as well,” says Wieland. “Expansion requires time, capital and additional risk. For many, however, when they consider the tradeoff, the juice is worth the squeeze.”

DO YOUR HOMEWORK

As you weigh the possibility of expansion, a market analysis can help make sure your decision to expand is a sound one, and provide valuable insights to give your new location(s) a leg up.

“Market analyses are critical for an industry that values cash flows,” says Wieland. “When contemplating expansion, businesses should consider competition, the growth rate and makeup of the location demographics, and changes in taxes and zoning that may ultimately affect the bottom line.”

BUILD VS. BUY

If you’ve made the decision to expand, you’ve likely considered the merits of buying vs. building a store.

Regardless of the path you choose, location evaluation remains important so as not to saturate a market. Both buying and building are attractive investments with different capital needs and return on investment (ROI) schedules. And while you will use learnings from your first store to inform the path of your second investment, pay attention to your new customer base who may have very different laundry and amenity needs.

If acquiring a store worked well for your first investment, applying those learnings may simplify a second acquisition. But, be aware that one acquisition may not be the same as the next. Things like utilities and rent are

Nick Koukourakis

Joe Jepsen (left) owns O-Town Coin Laundry’s six locations in Utah and says he relied heavily on Brad Moyes (right) of distributor Mendenhall Equipment as he expanded his vended laundry portfolio.

(Photo: Maytag® Commercial Laundry)

tied to the individual locations, and you might not necessarily realize efficiencies in those categories. You’ll want to pay attention to ensure lease terms will help you in seeing a good ROI, especially if you plan on making a large capital investment for improvements. A good rule of thumb is to have 8 to 10 years locked into your lease agreement to avoid rent increases that will delay your expected ROI.

If you do decide to buy, be sure you fully inspect all equipment, ideally with the help of your distributor. They can help assess quality, serviceability, and opportunities to correct the machine mix for your customer demographic. Think of it as if each machine is paying rent for space in your store. It’s not about replacing all machines, but that your machines get enough turns in a day for you to make a profit—all while providing for your customers.

Building one or more new stores has its own set of considerations. While a new laundry can take longer to see an ROI because of the increased capital spend, you’ll have more opportunities to create the ideal store environment. By harnessing new technologies, you can add customer

amenities like card readers, and simplify store and equipment management with connectivity solutions. Your store will be an empty space to maximize the footprint for equipment, workflow and amenities.

EXPECT CHALLENGES

Remember that challenges will be a part of any expansion. Joe Jepsen, founder of Diamond J Management in Ogden, Utah, owns O-Town Coin Laundry’s six locations. He recalls some concrete challenges in the early days of his expansion process.

“I’ve learned the hard way to ask a lot of questions up front, and to work with my longtime and trusted distributor, Brad Moyes from Mendenhall [Equipment], to help mitigate risk,” says Jepsen. “For example, be sure to ask where the nearest gas lines are for any location, new or old. One store we were considering had the gas line across the street. The project would need city approval and the investment required was prohibitive.

“Also, if it looks old, it probably is. New plumbing, electrical, and other infrastructure will cost more up front, but may cause less problems down the line. It’s always bet-

ter to do it during the initial retooling stage, rather than later.”

The distributor relationship is critical to success in any scenario. Moyes notes that being there at every step is important: “A good distributor helps their partners look at locations critically, and can assist with things like determining whether retooling will be profitable, the design of layouts, and generally spotting challenges immediately.”

EQUIPMENT MIX, MAINTENANCE AND AMENITIES

Getting your equipment mix right in your new location(s), and sticking to a maintenance schedule can help support expansion success.

“For my own stores, giving our customers choice in their equipment selections has been very effective,” says Jepsen. “We try to have six or seven different types of washers, and three to four different types of dryers as well.” Because every customer has different comfort levels with machine types and technologies, and they’ll all have different sizes of loads, this variety keeps people coming back.

“Each store has really benefited from the lessons learned of the one before it,” he

LOOK TO OTHER INDUSTRIES FOR IDEAS, SOLUTIONS

Retail businesses and even some non-retail businesses have much more in common with the selfservice laundry industry than we may think.

Great business ideas and solutions to problems are around us every day. Some of our issues have already been solved in other industries.

All you need to do is maintain an awareness so you can take note of them. Here are just a few that I took advantage of.

ATTRACTING NEW CUSTOMERS, RETAINING OLD ONES

Want to attract and retain new customers? Just look at other successful retailers. What do they do? What attracts you to these stores?

The best ones put money into a quality image. Their building, parking lot, website, reviews, storefront, signage, sales, promotions, customer comforts, and great employees are usually the things that attract us.

We don’t always see that some of the things that attract us to their establishments could also be duplicated in our own Laundromats. The ideas and solutions are out there. We just need to start recognizing which ones can be used in laundries.

Have you ever noticed that big, successful retailers will offer “sales” and “deals” several times a year? Why would they go through so much time, money and effort? Because it works. It creates excitement and motivates people to give the business a try.

The majority of mats that I’ve seen will rarely offer any kind of deal for their customers. Maybe we should rethink that. Just make sure that your basic pricing is not too low. A good friend once told me, “Paul, when a store offers a sale, that’s the real price.”

Many retailers offer “loss leaders” (a product or service priced below cost just to get people in the door) but most products/services are fully priced, no markdowns.

Have you ever seen a car wash that never had a sale? Not me. The ones I’m familiar with offer lots of promotional packages or deals on certain days: a ladies day, senior day, 25% off on Mondays, etc. And don’t forget about all the pricing upgrades/packages that successful car washes offer.

Have you ever seen a retailer park their truck in their parking lot, close to the street, to catch the eyes of passing motorists? Some will even hang a banner on the truck to advertise a special. That’s a great idea that might

Paul Russo

work for you all day long.

I’m sure most of us have seen stores that position a worker wearing a sandwich sign or holding a spinner sign on the closest busy street corner, hoping to catch passing cars. I think this works well if you are offering a really good deal. If you Google “sign-waving robots,” you can find moving mannequins for as low as a couple hundred dollars.

How about looking back in time to the laundries of years ago that offered cloth diaper service? Guess what? They’re still around! I bet there’s a nice niche market for that (if you can handle dirty diapers).

ATTRACTING NEW EMPLOYEES, RETAINING OLD ONES

When we see the rare company that has great employees, we have questions: What are they doing? How are they doing it? And how does their hiring process work?

Do you know anyone who is happy with their boss? Yes, they are out there.

Trader Joe’s, the highly successful retailer of unique foods with over 500 stores, floats an anonymous survey twice a year asking employees how their bosses are doing. This obviously keeps managers on their toes, and shows employees that “corporate” has their backs.

Some businesses will create a fund that employees can only access after five years of service. Some companies offer free gym memberships to keep their employees healthy. Costco offers all kinds of perks for its employees.

Many companies issue policies indicating behavior such as

sexual harassment will not be tolerated. This may help women feel safer working for you if they know the boss has their backs.

Many also give employees a paid day off on their birthday.

When I was still running laundries, I took a great idea from a hospital I used to work for. It posted the names and photos of the nurses at the nursing station to make it easier for families to identify which nurse was taking care of their loved one. I made up similar “photo boards” of my employees so customers could see who was doing their laundry.

“I want the woman with the black hair to do my laundry,” one customer asked.

I pointed to the photo board. “Well, we have five women with black hair working here. Do you see the one you like on our photo board?

“Yes, her name is Lucita. Thanks!”

The board makes it easy for customers to request a crew member they like or steer clear of one they may have a problem with. This easy identification helps workers who work hard to please the customer to receive tips and also helps keep employees in line for fear of being named in a complaint. Plus, you’ll no longer need to issue ID tags, which always seem to get lost.

So, if you know the rare person who loves who they work for, ask them why.

DEALING WITH CRIME

How does your local drugstore chain deal with burglaries? How do they prevent holdups? They probably use cameras, but what kind and how are they deployed? Are they hidden from view?

POINTERS FROM PAULIE B

What brands are used?

Do they utilize timelock safes? Post warning signs for criminals in more languages than English? These precautions are common to all retailers.

What does your bank do to protect everyone? I know they place red dye packs in with a robber’s booty, but did you know that a lot of them now sneak a homing device in with the money?

I know a big national jeweler that designed its parking lot almost like a maze. It makes it harder to get out and slows down robbers hoping for a quick getaway, which is a deterrent to anyone casing the place.

If you have a fear that your mat is vulnerable to crime, the next time you walk into a jeweler, observe what it does to protect the store.

STORE DESIGN IDEAS

Look no further than the big restaurant chains, 4-star hotels, or even your local gym for store design ideas.

Why the gym? Because many new chains are building beautiful gyms that are very appealing. And they use materials that must hold up from heavy weights being dropped all day long. The rubber flooring in a good gym is extremely durable, impervious to water, is slip- and scuff-resistant, and provides a slight cushion if someone falls. These rubber floors last for many years.

Have you noticed that many larger mats being built are copying the big-box strategy? That’s a big mat with tall, open ceilings; lots of available machines in many different sizes; plenty of parking; etc.

Walked into a new McDonald’s lately? These restaurants have a terrific combination of design and durability (done by the best commercial designers), and they are kept spotlessly clean inside and out!

LIGHTING TRICKS

Some 30 years ago, I was talking to a men’s clothing retailer. He told that they used “special lights” to enhance the look of their suits, shirts and ties by making the color pop. He was describing what we now know to be 5,000K Daylight bulbs.

It made sense to me, and I was intrigued. So I converted my mats to 5,000K, which gave them a cleaner, brighter look. I went even

further and added more lighting over the folding tables to make the clean laundry look really bright when customers were folding. This worked especially well for white items.

MANAGING PUBLIC RESTROOMS

Are you aware that there are people who will not patronize a mat that has dirty restrooms? How many times have you used a public restroom that impressed you? Every now and then, I will come upon a nice, clean restroom. One that was built with durable materials that look great and are vandal-resistant and easy to clean. Try looking at the big-box stores and fast food places.

But if you really want to see great restrooms, check out a 4-star hotel. Some of them post a clipboard requiring employees to document that they have cleaned it every hour.

Yes, there will always be jerks who dirty and vandalize restrooms, but you really need to get past that and fix them every time they are vandalized. If you have a camera trained outside the door, and your crew is cleaning the restrooms every hour, you should be able to pick up a pattern of who’s messing it up.

Tell your crew to take “before” and “after” time-stamped photos each time they clean the bathroom; this replaces the clipboard. Let’s say the restroom was cleaned at 4 p.m. and is dirty at 5, and the camera observed two people go in during that hour. You know one of them messed it up and can address it.

SERVICE IDEAS

One day about 25 years ago, I was driving to work thinking about how I could make our customers’ socks look like new. I never cared for wrapping them up like little baseballs because that would stretch out the elastic. I also didn’t like using rubber bands to hold groups of socks together—not professional enough.

Then it struck me: If I want the laundered socks to look like new, then what did they look like when they were truly new? I

OEM parts were expensive, so Russo tried out these 95-inch serpentine truck belts on his dryers. The groove lines were slightly off but the belts lasted many years. (Photo: Paul Russo)

Common to fast food restaurants, a drop-off and pickup window proved to be a popular feature at one of Paul Russo’s laundries in New York City.

(Photo: Paul Russo)

took a cue from the sock manufacturers and began using paper sock wrappers! That one idea alone greatly increased our drop-off business.

Another one came from the fast food places: a drive-up or walkup window for drop-offs and pickups. It was another big hit for one of my stores, and I was amazed that even after 15 years, not one of my competitors copied it.

MAINTENANCE

Want a fast way to clear lint out from inside and behind your dryers? Use a leaf blower like landscapers use or, better yet, use an air compressor with a blowgun attached like some mechanics use. Yes, it’s messy and should be done after hours while you wear protective clothing, but it’s far faster than other methods and will blast lint out of every nook and cranny.

Losing too many laundry carts? You can add double pole racks like many mats do. There’s a supermarket I know that uses a perimeter wheel-locking system on its carts. If a customer tries to take a cart past the buried sensor wire in the parking lot, one of the wheels locks up, making it near impossible to push the cart. You can add an alarm when the wheel locks.

Want a really good lubricant? Try Tri-Flow®. It’s a spray meant for bicycle racing chains because it does not attract dust, but then locksmiths discovered it’s useful to lubricate locks. When it dries, the Teflon it contains still lubricates but is not sticky like so many oil sprays.

How about those 95-inch serpentine belts for dryers? I once paid over $60 each for high-quality OEM belts; I’ll bet they cost

even more now. My other choice was to go for cheaper, imported aftermarket belts that would last less than a year, and eventually I was changing them nearly every week.

Thinking outside the box, I looked for the same size belts used outside our industry. I found the type online, only they were designed for truck motors. The groove lines were slightly off but the belts were so tough, it didn’t matter. They lasted many years at just $32 each.

THE LITTLE EVERYDAY THINGS

Buzzer systems to allow customers entry through locked doors in high-crime areas, isopropyl alcohol in spray bottles for customers to disinfect surfaces (much cheaper than disinfectant sprays), counterfeit bill checkers, colorful welcome flags or wreaths to signal the change of seasons—they all come from other industries.

So when you look at the stores that you like to patronize, ask yourself why. Why do you like one restaurant over another? Then ask yourself if that business is doing things that you could do with your own. Once you train your mind to pay attention to the great things you like about other businesses, you just may pick up some fantastic ideas.

ACO

Paul Russo owned and operated multiple Laundromats in New York City for more than 40 years before retiring in 2018. He’s a regular on the Coin Laundry Association’s online forum, posting under the pseudonym “Paulie B.” You’re welcome to direct any questions or comments for Russo to Editor Bruce Beggs at bbeggs@atmags.com.

HUEBSCH GIVES MACHINES MORE MODERN LOOK

Huebsch equipment from Alliance

Laundry Systems continues its commitment to help Laundromat owners differentiate their stores with the launch of new-look aesthetics, the

brand says. The product updates will impact cabinet hardmount washer-extractors and tumble dryers (stacks and singles).

“Vended laundry customers increasingly expect Laundromats to have a clean, professional look,” says Kathryn Rowen, general manager of the Laundromat segment for Alliance. “With the aesthetic changes, Huebsch continues to offer owners products that meet or exceed their customers’ expectations.”

Huebsch washer-extractors will feature embossed front panels, a recessed control panel and refreshed-

look control overlays. Single and stack tumble dryers boast ergonomic door handles, as well as fastener-less fronts and sleek lint drawers that combine for a far cleaner look to customers, according to the brand.

www.huebsch.com | 800-553-5120

SPEED QUEEN INTRODUCES VENDED SOFTMOUNT WASHER-EXTRACTORS

Speed Queen® has introduced vended softmount washer-extractors to its product lineup, the Alliance Laundry Systems brand says. The new models are offered in 20-, 30-, 40-, 55- and 70-pound capacities.

“Our new softmount range presents the perfect replacement solutions for owners with existing dated softmount washers,” says Kathryn Rowen, general manager of Alliance’s North American Laundromat segment. “In addition, these new washer-extractors will help owners open stores in locations that weren’t previously options due to basements or uncertain floors.”

Speed Queen softmount washerextractors come equipped with the new Quantum Touch control.

The intuitive touchscreen control, launched less than a year ago, is already helping laundry owners increase profitability, the brand says. Customer selection of profitable cycle modifiers has increased through its clearly defined on-screen prompts. Quantum Touch offers 11 modifier options, in addition to other revenue opportunities through time-of-day pricing and lucky cycles.

Programming ease and advanced machine diagnostics, completed on the machine’s touch screen, further enhance and simplify the ownership experience, Speed Queen says.

“With the combination of our cutting-edge controls and legendary Speed Queen reliability, our softmounts can be game-changers

for current store owners and new investors,” says Rowen. “They are aesthetically pleasing and flat-out perform … contributing to an overall improved customer experience.”

www.speedqueencommercial.com | 800-590-8872

says. “For example, knowing that equipment mix is very important to our customers, we began including single-load washers, which customers know, but also the Maytag Multi-Load machines for greater capacity.”

As an investor, Wieland notes that in a brick and mortar business like vended laundry, investors are typically looking for signals that consistent and reliable cash flows can be achieved.

“I would spend time understanding the capital needs of the business and make sure those are appropriately modeled into future plans, so upgrades and replacements are never a surprise,” he says.

It’s important to remember that while two stores might not justify a full-time maintenance staff, as a multi-store owner you’ll want to get creative by budgeting time accordingly. Keep a stock of basic parts and tools at all locations, and make an effort to train store managers and attendants to handle basic machine maintenance. Call in a professional for things like complex part replacements that require special tools, or anything that involves electrical and gas components.

Whether you buy or build, expansion is a great time to improve and expand upon everything you’ve learned in your first store. Think about expanding services to include wash/dry/fold, drop-off and pickup services, or even dry cleaning. Expanding the amenities you will offer to help draw and retain customers, such as a children’s library, tanning beds or coffee shop, is another option.

It can also be easier for you to manage multiple locations if you take advantage of the newest technologies available. Installing Wi-Fi in your stores will help make use of the many tools the newest machines are offering. Many machines will let you read service

codes remotely so you can diagnose issues or call for service without being in the store. Innovative features can also allow you to update pricing and remotely program cycles, time-of-day pricing, and day-of-week specials.

DON’T FORGET THE CUSTOMER

At the end of the day, serving customer needs is paramount.

“Looking back, one of the most important lessons I’ve learned as a multi-store owner is to be unafraid to ask questions in pursuit of a great customer experience,” says Jepsen. “My relationship with trusted contractors, Brad and his team at Mendenhall, and Maytag® Commercial Laundry have proven to be the most valuable relationships in my journey. The resources, information and experience available helped throughout each retooling process, and their advice was vital to overall decision-making and the projects’ success.”

NEW! Replacement Parts

What should every self-service laundry keep on hand in the event a piece of equipment goes down? Greg Reese of CLEC Distribution talks hoses, valves, igniters and more in this episode.

The choice to consider expansion is one to be celebrated. It means that your contributions to the industry and your customers are well-considered and, when the time is right to execute, poised for impact. The decision is one that takes a certain amount of fortitude and planning, but the benefits may be significant for your portfolio and professional career.

ACO

Nick Koukourakis is senior product line manager with Maytag® Commercial Laundry and has held several product and sales roles over the past two decades. In his current role, he is responsible for managing Whirlpool Corporation Commercial Laundry multiload product plans and road maps to help drive innovation and improve owner and user experiences.

Building Customer Loyalty

Promotions and incentives are often used to draw customers to a laundry. Matt Miller, president of equipment distributor Coin-O-Matic, envisions a more comprehensive loyalty-building approach

Attended vs. Unattended

There’s no magic formula when it comes to choosing a coin laundry’s operational model but certain factors can affect the call. Mike Enz from Dexter distributor Laundry One compares and contrasts the two.

Listen in at: americancoinop.com/podcasts

GIRBAU GROUP APPOINTS JORIS AS PRESIDENT

Commercial and industrial laundry equipment manufacturer Girbau, parent company of Girbau North America, has appointed Serge Joris as its president.

Joris’ professional career spanning over 25 years includes working internationally in critical roles at companies in the technology and industry sectors. His appointment comes as a result of a drive to bolster the management team at Girbau and promote the company’s growth, Girbau says.

Pere Girbau and Mercé Girbau, current CEOs and the third generation in the family business based in Vic, Spain, will remain in their roles, focusing on developing strategy, new technologies, innovation and sustainability.

and printing industries. Before joining R&B, he was director of sales and marketing at Insta Graphic Systems, a manufacturer of heat press machines and custom heat transfers.

BOWDEN SIGNS ON AS SPYNR PROJECT MANAGER Spynr, a digital marketing agency that works exclusively with laundry industry businesses, recently added Trey Bowden to its team as project manager, the company reports.

With a 20-plus-year career in information technology, Bowden has the ability to manage multiple projects simultaneously while focusing on exceeding client expectations, Spynr says. Bowden served as IT manager and IT systems administrator for Dogfish Head Companies (including brewery, distillery, restaurants, and inn operations) in 2009-2019.

He also managed the IT Services division of web solutions company Inclind and provided technology support services for two large poultry processors, Perdue Farms and Townsends.

Spynr says Bowden’s wide range of expertise is a clear indicator of his digital prowess and ability to effectively execute campaigns for its clients.

“Trey sees the potential to elevate better technology direction in the vended laundry space,” says Dennis Diaz, owner and founder of Spynr. “The similarity between the vended laundry and craft beer industries is uncanny, and Trey can help Spynr bring a can-do attitude and ‘together we are heavy’ mindset to the vended laundry industry as a whole.”

Girbau North America is the largest of 16 subsidiaries within the Girbau Group. Girbau North America’s brands include Continental Girbau, Express Laundry Center, Girbau Industrial, Sports Laundry Systems, OnePress Ironers and Poseidon Textile Care Systems.

SMITH JOINS R&B WIRE PRODUCTS AS CHANNEL SALES MANAGER

Laundry cart maker R&B Wire Products welcomes Kelly Smith as the newest addition to its team, according to CEO Rick Rawlins. As channel sales manager, Smith will be managing, growing and creating key accounts within R&B’s portfolio.

“We are delighted to have Kelly join our team as a key contributor,” says Frank Rowe, vice president of sales and marketing for R&B Wire. “His experience, professionalism and strong customer focus will reinforce our track record of being your trusted partner.”

Smith joins R&B with more than 20 years of account management experience within the heat press, industrial label, packaging

WASHLAVA ADDS STAFF IN MARKETING, HIGHER EDUCATION

Mobile technology startup Washlava has named Kelly Friar its chief marketing officer and Sean Pomeroy managing director of higher education, the company reports.

Washlava’s technology allows customers to reserve and pay for laundry machines from their smartphones, managing the end-toend experience for both business owners and their customers.

In her new role, Friar will oversee marketing, communications and community relations for Washlava and its various workstreams across many high-priority markets. She joins the company from Barbizon International, where she served as director of marketing for almost 10 years.

As managing director of higher education, Pomeroy will work directly with universities and educational institutions to bring Washlava’s services and proprietary technology to college campuses across the country.

Pomeroy brings over a decade of leadership experience, specifically focused in the sales and growth initiatives for companies such as MetLife. He has also worked within the higher education administration market providing offerings that enhance data security for students.

Mercé Girbau (left) and Pere Girbau (right), CEOs of Girbau, welcome newly appointed President Serge Joris to the commercial and industrial laundry equipment manufacturer’s management team. (Photo: Girbau)

Trey Bowden

Kelly Smith

• 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.