American Coin-Op - August 2023

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GREATER ENERGY EFFICIENCY: GET THE MOST FROM STORE’S UTILITIES HOW TO EXECUTE YOUR VISION IN A STORE YOU JUST PURCHASED MAKING ‘UNATTENDED LAUNDROMAT’ BUSINESS MODEL WORK FOR YOU INSIDE: AUGUST 2023 WWW.AMERICANCOINOP.COM
Payment Trends
While coin remains the dominant choice, card and mobile continue to advance

FlexiblePaymentOptions

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INSIDE

ENERGY EFFICIENCY: GETTING THE MOST FROM A STORE’S UTILITIES

The specter of rising utility costs should be enough to send any vended laundry owner in search of help to better manage their utilities usage. Consider these strategies to corral costs and boost your bottom line.

MAKING ‘UNATTENDED LAUNDROMAT’ BUSINESS MODEL WORK FOR YOU

Experienced laundry operators from Massachusetts, Minnesota and Texas describe the keys behind building and maintaining a group of successful self-service stores aided by few personnel.

PAYMENT TRENDS: WHAT ARE THE OPTIONS?

Representatives from several firms that offer payment systems and related products used by self-service laundries share their thoughts about current payment trends and where they see things going as technology and customer preference evolve.

COLUMNS

20 POINTERS FROM PAULIE B: EXECUTING YOUR VISION IN A JUSTPURCHASED STORE

Once you buy an existing store, how do you take the needed action to adapt it to your operational vision? Much depends on your goal in buying it, says columnist Paul Russo, so identifying what you’d like to accomplish will help set you on the path to truly becoming “New Management.”

24 GOING AGAINST THE UPWARD TREND: TIPS FOR LOWERING UTILITY COSTS

Utilities are among a vended laundry’s greatest expenses, so it’s important to understand how to curb those costs through smart upgrades, maintenance and new equipment purchases. Guest columnist Tod Sorensen suggests some ways you can improve energy efficiency at your vended laundry.

DID YOU KNOW...

American Coin-Op has released podcast episodes on a variety of industry-related topics? Give one a listen at AmericanCoinOp. com/podcasts.

2023
(Cover images: arrows: © ahasoft/Depositphotos, quarters: © gemenacom/Depositphotos, credit card: © ADragan/Depositphotos, mobile payment: © ayo888/Depositphotos)
AUGUST
VOLUME 64 ISSUE 8
CONTENTS
14 26
8 COVER STORY DEPARTMENTS 4 VIEWPOINT 30 CLASSIFIEDS 6 INDUSTRY SURVEY 31 AD INDEX 29 NEWSMAKERS
2 AMERICAN COINOP AUGUST 2023 www.americancoinop.com

KEEPING PAYMENT OPTIONS OPEN

I think that, in most cases, retail customers appreciate being provided payment options. A baby boomer may prefer the tried-and-true cash in his wallet, while a millennial might favor paying virtually by using an app on her smartphone.

When it comes time to do this week’s laundry, a fair share of patrons still feed their washers or dryers with quarter or dollar coins while others prefer to swipe a card or tap a mobile device. But no matter how they do it, they pay up.

For this month’s cover story, I polled representatives from nine companies that offer payment systems and related products: What’s the breakdown in usage between coin, card and mobile? How has the COVID-19 pandemic impacted payment trends? Will there have been any changes in our payment options by 2030?

Turn to page 8 for “Payment Trends: What Are the Options?” to learn how and why using cards or mobile devices continues to gain on coins as the preferred method of vended laundry payment.

Also in this month’s issue, you’ll find:

• “Energy Efficiency: Getting the Most from a Store’s Utilities,” page 14 — After getting a sense of your store’s energy expenses, here are some strategies—including equipment upgrades, better lighting and more—for keeping them in check.

• “Pointers from Paulie B: Executing Your Vision in a JustPurchased Store,” page 20 — Retired multi-store owner and columnist Paul Russo charts a path for realizing your own vision in an existing laundry you’ve just acquired.

• “Making the ‘Unattended Laundromat’ Business Model Work for You,” page 26 — During a Coin Laundry Association webinar, a trio of experienced self-service laundry operators share why the unattended model best fits their business plan and lifestyle.

So go ahead, dig in. Your big payoff awaits.

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

Douglas Pratt Michael Schantz

Tony Regan Matt Simmons

Sharon Sager

OFFICE INFORMATION

Main: 312-361-1700

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $50.00; 2 years $100.00. Single copies $10.00 for U.S. 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., 125 Schelter Rd., #350, Lincolnshire, IL 60069-3666. Volume 64, number 8. 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, 2023. 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.

4 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
VIEWPOINT
Bruce Beggs
SUBSCRIPTIONS
www.AmericanCoinOp.com
847-504-8175 ACO@Omeda.com

SURVEY: MANY ’MAT OWNERS TACKLE STORE PROJECTS DURING SUMMERS

As summer heats up, many laundromat owners are accustomed to seeing their business slow down for the season. That’s the general vibe of this quarter’s American Coin-Op Your Views survey, appropriately titled “Sum-Sum-Summertime.”

More than 42% of responding store owners pegged summer as being “worse than most seasons” (21.1%) or “the worst season” (21.1%) for

their self-service laundry business. Roughly 37% say that summer is “the same as any other season,” and equal shares of 10.5% say it’s either “better than most seasons” or “it’s the best season.”

Nearly 43% of respondents say that customer habits change during the summer and thus affect their store hours, attendant scheduling, etc. Roughly 52% don’t find that to be the case, and the remaining 4.8% are unsure.

Among those who believe that customer habits change, many say the shift from spring to summer means that people generally wear fewer pieces of clothing, and vacations mean taking fewer trips to the laundromat for some families. Customers tend to come in earlier in the mornings and later in the evenings throughout the summer.

One respondent says summer actually brings in more business for him/ her: “We get more people passing through our town in summer. It is (our) most busy time of year.”

In spite of the business slowdown commonly connected to the summer season, the vast majority of owner/operators polled do not run summer specials or promotions (90.9%). Only 9.1% offer incentives such as free dry or free soap on select summer days.

With laundromats occupied less between June and August, those are prime months to do some major store maintenance. Painting (interior and exterior), deep cleaning and landscaping, along with equipment and utility upgrades, are some of the tasks that respondents say they tackle during the summertime.

About 38% of respondents say they receive more customer complaints about store temperature during summer compared to the rest of the year. The remaining 62% say that’s not the case for them.

Finally, we asked respondents what they find most challenging about running a self-service laundry during the summer months. Here are some of their responses:

• “Paying the utilities bills.”

• “(Managing) air conditioning costs with reduced income.”

• “Teenagers and homeless people.”

• “Slower cash flow so you have to balance spending.”

• “The volume of wash and fold is much higher, which may mean less folding space for coin-op customers.”

• “Having all those planned (store) projects completed by the end of summer.”

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

www.americancoinop.com

Subscribers to American Coin-Op email blasts are invited to participate anonymously in an industry survey each quarter. The greater the number of responses, the better the analysis at defining owner/operator opinions and identifying industry trends.

INDUSTRY SURVEY 6 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
To read other Your Views survey stories, visit
your customers’
change during summer and affect your store hours, attendant scheduling, etc.? Not Sure
It’s the best season It’s better than most seasons It’s the same as any other season It’s worse than most seasons It’s the worst season 10.5% 10.5% 36.8% 21.1% 21.1% ACO0823 Charts.indd 2 7/5/23 11:06 AM
your customers’ habits change during summer and affect your store hours, attendant scheduling, etc.? YES 42.9% NO 52.4% Not Sure 4.8%
It’s the best season It’s better than most seasons It’s the same as any other season It’s worse than most seasons It’s the worst season 10.5% 10.5% 36.8% 21.1% 21.1% ACO0823 Charts.indd 2 7/5/23 11:06 AM
Do
habits
Where does summer rank in terms of your self-service laundry business?
Do
Where does summer rank in terms of your self-service laundry business?
No more coins! and central collection Track and manage your employees Advanced marketing and loyalty programs Manage remotely from any internet device Manage service repairs with equipment status screen Optional EMV Integration www.laundrycard.com | Toll Fee +1(866) 860-1660 | Phone +1(630) 930-5115 | sales@laundrycard.com Join over 1150 owners who have automated their laundromat with LaundryCard™. LaundryCard™ is a complete laundromat solution that gives store owners all the tools they need to succeed in one integrated system. Say goodbye to counting coins and hello to custom loyalty cards, on-the-fly reporting, custom marketing tools, remote management and more! LaundryCard™ Eliminates Coins and Automates your Business

Payment Trends: What Are the Options?

Using coins as a payment method to operate a self-service laundry’s washer or dryer has long been the tradition. But driven by advances in technology and changing consumer sentiment, it’s becoming more commonplace for laundromat customers to have the option to instead use their debit or credit card, a store card, or a smartphone app to pay for a wash cycle.

Coin remains the dominant payment type among self-service laundries based on industry data, but for how long?

In American Coin-Op’s 2022-23 State of the Industry survey released earlier this year, 75.4% of store owners who responded said they accept payment by coin, 49.2% accept payment by card, and 26.2% accept other non-coin systems, including mobile pay (store owners were asked to identify every type that applies to their operations).

Roughly 46% of respondents reported offering customers more than one type of payment acceptance, and payment by card or mobile app continues to gain in popularity.

For this story, American Coin-Op interviewed representatives from nine companies that offer payment systems and related products. Let’s hear what they have to say about today’s payment trends and where they see things going as technology and customer preference evolve.

First up is why they believe card and/or mobile payment acceptance is gaining on coin payment.

“We are keenly aware of and excited by the shift towards card and mobile app payments,” says Steve Marcionetti, president of Card Concepts Inc. (CCI), which offers various products that include payment acceptance by credit/debit card, loyalty card, and mobile. “This trend aligns with broader shifts in consumer behavior, as people increasingly prefer digital payments for their convenience, security and efficiency.”

“The trend toward coinless card systems and mobile app payments will continue to grow as the technology advances,” suggests Wayne Lewis, CEO of ESD Inc., whose product range spans mechanical products for coin acceptance to smart card, magnetic stripe and store-branded loyalty card systems. “Store owners are looking to diversify and provide alternative payment options to their customer base, either through the conversion from or addition to coins. Most do not want to dictate to their customers but rather offer options that possibly their competition does not.”

8 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
(Images: arrows: © ahasoft/Depositphotos, quarters: © gemenacom/Depositphotos, credit card: © ADragan/Depositphotos, mobile payment: © ayo888/Depositphotos) Marcionetti Lewis
While coin remains the dominant choice, card and mobile continue to advance

“Laundromat owner/operators are smart business professionals and will provide the payment choices that work best for their customers,” says Stacey Cooper, general manager – Retail, for KioSoft, whose varied product line supports mobile, laundry/loyalty card, and credit/debit card payment acceptance. “Understandably, they will be very deliberate when making decisions about the new types of payment technology that they offer.”

“Certainly, credit/debit card use and mobile wallet type of payments are displacing cash in general, but especially coins,” observes Oleg Stepanov, representing payment systems provider Mitech Integrated Systems Inc. (Laundroworks).

“Limiting payment options only limits your potential customer pool,” says Jim Garrity, CEO of The Laundry Boss, which offers a cloud-based integrated payment, control and POS system. “Our focus is on positioning our platform to accept whatever payment methods become the standard in the marketplace.”

“Today, the (washing) machines are not cheap. They’re starting at $4-5 and going to $10-11, depending on how big the machine is,” says Jacob Lefkovits of LaundryPass, which produces a card-based payment system. “Can you imagine needing to throw in $11 in quarters?”

“As society continues to evolve towards digital transactions, we’re seeing a trend away from coin/cash in favor of mobile app payments in self-service laundries,” says Michael Kitchen, chief revenue officer of PayRange, which markets a mobile payment system designed for vended laundries. “This shift reflects the broader societal movement toward digital and mobile payments. While cash will likely remain a payment option for the foreseeable future, we expect that digital payment methods will increasingly grow in popularity.”

“As consumers carry less cash, forward-thinking operators need to meet the needs of the market,” says John DiStefano, vice president of sales for Paystri, which specializes in payment processing and integrated payment solutions. “Many of the manufacturers are developing proprietary payment technologies and providing them with their equipment. The ability to provide easy ways to pay with cards and phones have in turn allowed owners to not only give the customer options and different ways to pay, they have also been able to increase vend prices as needed, creating higher revenues.”

“Cash is still very important for vended laundries but we see the number of cash transactions decreasing and the number of credit/debit transactions increasing year over year,” comments John Kelly, vice president of sales for Setomatic Systems, which offers a system that accepts all forms of payment.

ASSORTMENT OF BENEFITS

According to the payment system reps, implementing either a hybrid coin/cashless payment system or a fully cashless system can offer an assortment of benefits to both the customer and the store owner.

For the customer, there is flexibility in payment options and no longer having to worry about not carrying cash. They can take advantage of marketing features not available in coin stores, earn rewards for store loyalty, and maybe even save some money thanks to special time-of-day pricing or store promotions. Automated text and/or email notifications when cycles end become possible.

Store owners can offer the best of both payment worlds while streamlining their operations. Flexible pricing can generate greater revenue because convenient payment may have customers thinking less about how much they’re spending. If a system eliminates coins entirely, there will be savings in the labor and time previously needed to physically collect them. Computerized systems can easily gather important customer information and collect data to help guide owners in their management decisions. And if a store utilizes a loyalty card, the owner can enjoy the “float,” the funds that customers have loaded onto their cards but not yet used.

A BIT OF A BOOSTER

When the COVID-19 pandemic began in 2020, consumer interest in payment acceptance beyond coins was already growing. As consumers scrambled for ways to avoid physical contact, cashless payment gained momentum.

“The COVID-19 pandemic has undoubtedly accelerated the shift towards cashless payments,” believes Kitchen. “As people sought to minimize physical contact and maintain social distancing, the convenience and safety of cashless payment systems became even more apparent. It is a trend we see continuing post-pandemic, as users have now become accustomed to the convenience of digital transactions. And lest we forget, there have been frequent and ongoing coin shortages as well.”

“The pandemic has led to an incredibly significant increase in credit/debit card usage, specifically contactless credit/ debit cards,” says Kelly. “Customers want to minimize the amount of physical contact they make.”

“With physical branches limiting operations or closing temporarily during the pandemic, there has been an increased reliance on online and mobile banking services,” Garrity says. “Consumers have turned to these platforms for managing their finances, making payments, and conducting transactions remotely.”

“I believe that the pandemic changed the way that many approached the everyday tasks that were previously accomplished without much thought,” Lewis says. “The cleanliness of a store, minimization of exposure to contaminants, and changing social habits have affected where, when and how people now do their laundry.

“The increase in (wash-dry-fold) services, along with the expansion of pickup and delivery services, are the results and benefactors of these circumstances.”

“Don’t forget the change shortage that also occurred during this period,” DiStefano says. “While we were short of change, hiring personnel was also difficult at both the laundromat and the equipment manufacturer level. The manufacturer shortages in personnel and microchips resulted in delays in production.”

“For laundromat owners, adapting to these (payment) trends is crucial to meet customer expectations and maintain a competitive edge,” says Marcionetti. “It’s also worth noting that while these trends were accelerated by the pandemic, they are part of a broader, long-term shift toward digital payments that is likely to continue in the future.”

“The rate of conversion from cash to cashless payments, especially contactless payments, skyrocketed during the pandemic – and it isn’t going back,” Cooper asserts. ▼

10 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
Cooper Kitchen DiStefano Kelly

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WEIGHING PAYMENT SYSTEM OPTIONS

When a vended laundry owner whose operation has strictly been based on coin payment is considering a system that incorporates cashless options, there are some questions he/she may want to get answered before committing to buy. The reps suggested many, including the following:

• Will the new system be compatible with my existing laundry machines?

• Is the system easy to install and use?

• What type of investment will be required for a good list of features?

• Is the hardware or system PCI-compliant?

• Does the system provider work with a proprietary merchant processor or is it an open platform?

• What other services does the proposed seller provide beyond payment systems, if any?

• Who decides when a customer gets a refund? Can I issue the refund directly or must I call a customer service line to get someone to process it?

• Are there recurring fees that I’ll need to pay?

• Can the credit card processing fee be passed on to the laundry customer?

• How will this system make my store more profitable?

Stepanov suggests that the prospective buyer seek out other operators (or distributors) who are experienced with the system in question and ask how their store customers like it, if there have been any major issues, and if it has improved their operation and lifestyle.

DO PAYMENT PREFERENCES DIFFER BY REGION OR DEMOGRAPHIC?

Are there any regional or demographic differences in payment preferences within the self-service laundry industry?

“Age, income level, and tech-savviness can all influence payment preferences,” says Marcionetti. “Younger generations who are more comfortable with technology are generally more likely to use card or mobile payments, while older generations generally prefer cash or coin.”

“Although there may be market areas which have adapted more quickly to the changing payment trends, the diversification of the systems has allowed for the implementation of all methods, throughout all sectors of the market,” Lewis analyzes. “And even with all of the economic trends occurring, there will still be those store owners who believe that cash is king and will not have anything other.”

“Yes, in some areas, we see proportionally higher use of cash (bills) than credit/debit cards when reloading the laundry card or app balance,” Stepanov says. “Based on the data we see, some form of a conventional, cash-based payment method must still be available to the store customer.”

“Urban areas and younger demographics tend to be early adopters of digital payment methods, but we’re seeing uptake across the board as people become more familiar with the technology and its benefits,” says Kitchen.

“What we found is … (residents of) elderly living homes … with coins, they have a very difficult time putting the quarters in because their hand is shaking,” Lefkovits says. “With our (card) system, you just need to tap it, to wave it. … That’s definitely a sector that benefits from a card system to make things easier for them.”

“In 2023, virtually everyone in every demographic has a credit or debit card,” Kelly says. “It has become an essential part of life. We have customers who are incredibly successful vended laundry owners in urban areas, rural areas, and everywhere in between. At the end of the day, all

customers want options.”

“It’s important for self-service laundry businesses to understand the payment preferences of their specific target audience in their respective regions,” Garrity says. “Conducting market research, gathering customer feedback, and observing local payment trends can help businesses tailor their payment options to meet customer expectations and maximize convenience.”

2030 PREDICTIONS

While no one can know for certain what will happen in the field of payment acceptance by decade’s end, when asked to predict where things will stand by 2030, the reps weren’t shy about offering their forecasts.

“Coin usage will continue to decline, and credit/debit usage will continue to grow,” Kelly envisions. “Customer convenience will continue to be the driving factor in payments, and EMV will still be very important. In the next decade, we may be paying for things using a thumbprint scan, retina scan, or bitcoin. It’s hard to say for sure since the adoption of new payment technologies is typically very slow.”

Marcionetti predicts the number of new stores coming online with cashless systems will far outnumber new stores without: “The adoption of mobile payments will increase significantly, and we will likely see an increase in stores that don’t accept coin. I also believe that consumers will demand cashless options from all retailers, including laundromats. Payment options will be one of the deciding factors for where consumers decide to do business.”

“If not already there, the payment systems will become the central nervous (system) of the laundromat (or the laundromat chain), acting as much more than just payment systems,” Stepanov believes. “They will be responsible for several key functions, from customer acquisition, to pickup and delivery, to self-service, to door access, to streaming data for allow for predictive maintenance of machines.”

In the future, it will not be enough for systems to be focused on payment processing alone, Garrity says.

“The future is about data and automation. To truly differentiate in this market, we must allow our clients to use the insight driven from their laundry automation system to help them run a more profitable laundromat. By accepting digital payments, selfservice laundries can collect data on customer behavior, transaction patterns, and other valuable insights. This data can help businesses optimize their operations, tailor their services, and offer personalized experiences to customers.”

“I believe that a much smaller number of laundromats will be accepting coins only as a payment method in 2030,” Lewis says. “The coinless store market will continue to grow but there will be a much higher number of hybrid stores operating. The acceptance of credit/debit cards and/or mobile app payments will be the largest area of growth as the U.S. economy continues to move toward a cashless society.”

“Looking toward 2030, we anticipate a significant rise in cashless payments across the vended laundry industry,” says Kitchen. “With ongoing technological advancements and increased user familiarity with digital payments, we expect to see a broader adoption of mobile and card payments. It is also likely that more advanced analytics will be incorporated into these systems, providing laundries with more insights into their business.”

12 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
Garrity Stepanov Lefkovits
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Energy Efficiency Efficiency: Getting the Most from a Store’s Utilities

Take advantage of equipment, facility advances to keep bills within reason

Utility costs, including electricity, gas, water and other essential services, often represent a substantial portion of a self-service laundry’s operating expenses. When inflation occurs, it can drive up the prices of these utilities, affecting the laundromat’s overall financial health.

2022 utilities cost (as a percentage of gross) averaged 21.8% for the laundry owners who responded to American Coin-Op’s 2022-23 State of the Industry survey released in April. That was up more than two percentage points from the prior year’s results.

Roughly 43% of respondents reported having a utilities cost that exceeded 20%, with one store owner saying their cost alone was 55%.

The specter of these rising costs should be enough to send any vended laundry owner in search of strategies to help them better manage their utilities usage. But before you decide what strategies to undertake at your store or stores, you must get a sense of what your energy expenses are and what’s contributing to them.

Your local equipment distributor may be able to assist you with

Your local equipment distributor may be able to assist you with this, plus there are companies that specialize in performing assessments of the energy needs and efficiencies of a building, otherwise known as an energy audit.

Self-service laundry owners should check with local, state and regional agencies that help small businesses like theirs to become more energy-efficient. There may be programs available that offer financial assistance in the form of grants and loans for making energyefficiency upgrades.

For example, Chicago laundry owner Paul Hansen’s collaboration with Peoples Gas Energy proved beneficial to his operation.

RECOGNIZING POTENTIAL FOR SAVINGS

Hansen owns Su Nueva Lavanderia, with five locations in the Chicagoland area. Some years ago, after hearing a presentation by the Peoples Gas Energy Efficiency Program team, he became interested in improving energy efficiency at his stores, according to a case study prepared by the utility provider.

His Western Avenue and Kedzie Avenue locations promised the highest potential for savings, so Peoples Gas scheduled a free energy assessment and began exploring opportunities for customized energyefficiency solutions.

14 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
(Photo:iStock.com/BetNoire) (continued on page 18)
Adding PayRange to your machines can eliminate the need for quarters while improving customer satisfaction and increasing revenues. PayRange offers the most diverse range of payment options in laundry — from 100+ store gift cards with balances that can be used, to earning free credits in the PayRange in-app Marketplace, “Buy Now, Pay Later” options, and in select states, EBT users can even access those funds in-app for laundry. Not to mention the traditional funding sources you would expect. Allow Your Customers to Discover More Ways to Pay It’s like finding quarters in the couch cushions! PayRange BluKey Pro for Laundry Only $49.95* per machine! *Service Bundle Fee applied to all devices. Pricing and fees subject to change. Terms and conditions apply. PayRange is a trademark of PayRange Inc. Patent 8856045 and other Patents Issued and Pending. © 2023 PayRange Inc. Get started at shop.payrange.com Trusted by Over 6 Million Users
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The Peoples Gas team shared information about available rebates for high-efficiency water heaters and high-speed washers. With water heaters being an affordable upfront investment, Hansen was able to make those upgrades immediately.

The savings from that initial project led him to explore additional energy-saving opportunities, and he replaced his existing washers and installed an ozone laundry system at his 55th Street location. Ozone (O3) is a naturally occurring molecule that helps fabrics by chemically reacting with soils in cold water. Adding the ozone system reduced the amount of chemicals, detergents, and hot water needed to wash linens.

Back at Su Nueva Lavanderia’s Western Avenue location, commercial dryer retrofits saved money by leveraging energy-saving technology. The Peoples Gas team also installed free energy-saving products through its Energy Jumpstart offering.

According to Peoples Gas, Hansen’s business received rebates totaling $65,135. Energy savings was calculated at 55,263 therms, for an estimated annual savings of $46,973.

“The process and installation was seamless,” Hansen says. “The success of these initial energy-saving projects and increase in business have led me to consider other opportunities and spread the word on how the program can help other laundromat owners.”

MAY BE TIME TO UPGRADE EQUIPMENT

If several years have passed since you’ve upgraded your laundry equipment, it may be time that you seriously take a look at it.

Utilizing the right mix of new, cutting-edge laundry equipment reduces utility expenses plus offers new profit-generating opportunities. It would certainly involve making a sizable investment, but it may make sense for your operation once you take into account the costs tied to older, less-efficient equipment.

Today’s advanced vended models offer many energy- and resourcesaving features. Without focusing on any one brand’s offerings, here are some of the features available in washers and/or dryers on the market:

• Automatic weighing within a washer determines the actual weight of a soiled load and adds precisely the right amount of water, thus lowering water consumption and energy costs.

• High-speed extraction up to 450 G-force removes moisture from every laundry load, cutting drying times and saving on natural gas usage.

• Customized wash programs adjust water level, wash time and

rinses per load based on customer need or preference.

• Stronger machine frames and leak detection reduce preventive maintenance and repairs as well as lower utility expenses.

• Dryer sensors determine when laundry is dry and lowers the operating temperature or stops a drum altogether.

LIGHTEN THINGS UP

It might not seem like much but you could lower your utilities cost by switching your store’s lighting from incandescent to LED. While LED lighting systems are more expensive up front, the bulbs last, on average, much longer than incandescents.

Efficiency Vermont, that state’s energy efficiency utility, offers these LED lighting tips to save energy in your small business:

• Switch frequently used lights first, as the biggest return on LEDs come from lighting that’s always (or frequently) on.

• Consider the benefits of better lighting beyond saving energy. Replacing dim, yellow or flickering lights with high-quality LEDs can boost customer comfort and store appeal.

• Choose your color and ambiance for directional and dimming applications.

• Match the light to the task: overhead fixtures, task lighting, exterior lots.

• Add lighting controls and sensors, because they can save you money by automatically turning off lights when not needed (this is something you’ll need to balance with your security needs).

• Upgrade tube fluorescents to high-performance T8 fluorescents or convert existing fixtures to accept linear LEDs.

• Make use of natural light. If it makes sense for your budget and space, add skylights and daylighting controls that adjust interior light levels based on available daylight.

WINDOW DRESSING

Your vended laundry may be one of the many that feature large plate-glass windows. When the sun penetrates a store’s standard windows, the glass radiates the heat it absorbs. The temperature inside rises and so does your utility bill. Thus, there is an opportunity to cut those costs by making the windows more energy-efficient.

One option is installing windows with low-emissivity, or low-e, glass. According to the U.S. Department of Energy, windows manufactured with low-e coatings typically cost 10-15% more than regular windows but reduce energy loss by as much as 30-50%.

A low-e coating is a microscopically thin, virtually invisible, metal or metallic oxide layer deposited directly on the surface of one or more of the panes of glass.

Another option is to install window film. According to information shared by many utilities, films applied to existing glass in windows and doors is effective in reducing peak demand during hot months and conserving energy.

Film rejects the sun’s heat passing through glass by as much as 80%, according to the International Window Film Association (IWFA).

It can be installed quickly with minimal disruption to business activities, and completed for about one-seventh the cost of a typical new replacement window installation, IWFA reports.

These are but a few strategies for keeping your laundry’s utility costs in check. Be sure to take some time today to see how your store measures up energy-wise, then take action to manage your costs and bolster your bottom line.

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(continued
(Photo: iStock.com/phive2015)
from page 14)

There’s more: We’re just two members of NIE’s team of experts. NIE has been handling fabricare insurance since 1915!

POINTERS FROM PAULIE B

EXECUTING YOUR VISION IN A JUSTPURCHASED STORE

Once you buy an existing store, how do you take the needed action to adapt it to your operational vision? Moreover, what actions are needed?

There are different goals for different buyers, so what is it you are looking to accomplish? Did you buy for a shortterm flip, the tax benefits, or some side income? Are you looking to grow a chain, or is it just something to keep you busy after retirement?

Laundromats are a capital-intensive business, and one of the biggest causes of business failure is not having enough capital. This means that if your mat doesn’t have relatively new equipment, then it will cost you one way or another.

Installing some brand-new machines is an excellent way to draw in new customers. New equipment really does boost sales, even if it’s only a partial replacement of, say, 10 new triple-loaders. Curiosity will draw them in.

If the store is really run-down, you’ll have to spend more money and time to renovate it enough to make a difference. You need to make a difference.

If your vision is to just hang an “Under New Management” sign and expect people to flock in without making any perceptible improvements, you’ll be disappointed because the customers will be disappointed.

You’ll need to spend some decent money to win back customers who left. You need to create a beautiful store. When you do this, make sure you renovate the storefront and exterior signs to showcase that difference. Only then will you truly earn

the moniker, “New Management.”

On the other hand, if the mat was already well-run, you don’t want to scare away customers who liked what the previous owner did. If that’s the case, wait a while before you make any noticeable changes. Customers will be on guard to make sure you will continue in the vein of the previous good management. You may also want to structure your deal to have the previous owners stay on board for a few weeks to ease you in.

CHOOSING YOUR PATH

So, where to start? Good planning is the very first step, and this requires research and due diligence.

If you are new to the business, don’t rush in. You need to do your homework. You need to gather as much knowledge as you can about your specific location, as well as the industry as a whole.

You’ll want to identify where your customers will be coming from. Demographics are important. Can they easily spot your store from far away? Do they have easy access to it? Is there plenty of parking? Hopefully, these are all things you considered before you signed your deal.

You’ll want to differentiate your mat from your competition. As mentioned earlier, new equipment really helps in that regard. Just make sure you have your equipment programmed correctly to give a good wash and dry.

For instance, a pet peeve among customers is not being able to see the water sloshing around their laundry. You want to save water, yes, but be careful not to program the water levels too low or you may lose customers.

The same goes for dryers. Keep them hot enough to impress, at least in the beginning. You can always raise your prices later on after you have built up your customer base, but be wary not to lower quality. The important thing is to maintain a quality experience that’s still affordable for people.

You’ll want to study the different brands of machines as part of your planning. I’m not getting into brand specifics but each has its own plusses and minuses. Installing new equipment is a long-term thing, so be sure to get this right.

Speak to different distributors in your target area. You’ll often get different answers. The best way to find out the minuses for each brand is to ask competing distributors. It’s been my experience that a distributor will be happy to point out a competing brand’s weaknesses.

You’ll also want to decide if you want to offer a drop-off service or even a pickup and delivery service. If you’ve never done pickup and delivery, and are new to the business, I recommend that you perfect your drop-off service operation first before

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Paul Russo (Photo: © photography33/Depositphotos)

taking on pickup and delivery.

If you have a partner or partners, do as much brainstorming with each other as you can.

BECOMING ‘NEW MANAGEMENT’

If you are taking over a well-run mat, keep the fact there is new ownership quiet in the beginning. But if you are building new, or closing the mat for big renovations, you’ll want to shout this as loud as you can … but not until you are sure everything, including your employees, is ready to take on a rush of customers.

Let’s say you discover the boiler is not producing enough hot water. You’ll want to know this early on when you have only a handful of customers so you don’t upset a lot of folks on their very first visit. They will be judging you closely their first time, so make sure they love your mat.

Even as a seasoned operator, after building new or renovating, I would quietly open the store for a few days to work out the bugs—call it a “soft opening”—before I went full-blown “grand opening.”

The equipment is getting more high-tech every year. Most of this is good, such as saving on utilities and being able to program the equipment the way you want.

But a share of the public can get “tech-weary.” People just want the easiest experience when they visit. So, when it comes to operating the machines, try to keep it simple and easy for them to understand how everything works.

Consider offering conveniences that your competitors don’t. For example, I recommend installing automatic entrance doors. They’re extremely convenient for customers lugging laundry in and out. Most mats don’t have them, which can make yours unique, plus it’s a selling

point for word-of-mouth recommendations.

When installing folding tables, consider granite, quartz or a synthetic material. Yes, they can be expensive initially, but over the course of owning a mat many years, the amortized cost is negligible. These high-quality tables look terrific in advertising photos, are another talking point for word-of-mouth, and will look great for decades while boosting the mat’s resale value.

SO WHAT IS YOUR CONCEPTION?

Assuming you have already assembled a great team of professionals that includes an accountant, a lawyer and a trustworthy distributor, you are ready to construct your plan.

If you want only tax write-offs, then building from scratch may be more appealing. However, one pitfall is letting the mat go downhill. A laundromat’s appearance and appeal can decay quite quickly if you aren’t paying attention.

If you want to grow a business, you will pay attention to as many details you can think of.

If you have a job that you are leaving, or that you can get some time away from, you can give your mat a lot more detailed attention. After all, this is a business like many others. It requires management, such as maintaining the store and equipment; advertising and promotion, both physically and virtually; overseeing a team of employees; dealing with regulations; etc.

What if you have a unique vision that sets your mat apart from all the others? It’s been my experience that the ones who fail are too focused on their vision, at the expense of paying attention and truly managing their mat.

Your vision alone won’t save you if you ignore the basics of mat management. Those are a wellmaintained store that’s kept clean; machines that

are operational; competitive pricing that gives good value; and, of course, friendly, professional customer service from your crew.

Gimmicks may get someone in the door the first time but if you don’t have the basics, you’ll be hard-pressed to get them to return.

I’ve seen some interesting combinations that have come and gone: mat and saloon; mat and exercise machines; mat and grocery store; mat and tanning booths. All of them required at least two areas of expertise: 1) the laundromat, and 2) the ancillary business.

It seems to me that you are better off having, say, a grocery business first, and expanding into an empty store next door to build your mat.

PROMOTING YOUR VISION

No matter what your conception is, once you’ve done your planning and due diligence, and purchased your mat, you’ll need to promote it.

You’ll need a great website, and I recommend getting a professional to help you create it. Just like a great storefront helps to trigger the decision for someone to try your place, so does your online presence. After all, this presence will be the face of your business and thus extremely important.

Once you have your website, you can advertise on Facebook, Google, even YouTube. Make a video to showcase your mat, and add it to your website. How-to videos, such as tips for removing stains in laundry, are also useful.

You can also build a customer list for texting or emailing, but be careful not to overdo push promotions, lest you become a pest.

If you want to try pickup and delivery, I highly recommend that you produce a custom app for your service that customers can conveniently use. The act of a customer simply calling your store to arrange a pickup or delivery is being overtaken by technology. An app can display pickup and delivery times, and allow for payment with credit cards.

Finally, you need a great crew. Part of your planning is to be ready to take care of your customers from day one. In the end, I think you’ll have a hard time achieving your vision without happy, well-motivated employees.

I wish you all the best in achieving your vision.

Paul Russo owned and operated multiple laundromats in New York City for more than 40 years before retiring in 2018. You’re welcome to direct any questions or comments for Russo to Editor Bruce Beggs at bbeggs@atmags.com.

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POINTERS FROM PAULIE B
(Photo: © billiondigital/Depositphotos)

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GOING AGAINST THE UPWARD TREND: TIPS FOR LOWERING UTILITY COSTS

Utilities are among a vended laundry’s greatest expenses, so it’s important to understand how to curb those costs through smart upgrades, maintenance and new equipment purchases. Oftentimes, small tweaks to your thermostat or washer programs can result in significant savings. Save even more by investing in new technology. Read on for ways to improve energy-efficiency at your vended laundry.

Maintain Equipment — Consistent maintenance according to a regimented schedule is the key to the safe and efficient operation of every piece of equipment at a vended laundry, from water heaters, washers and air conditioning/heating systems, to drying tumblers. Ensure that you follow manufacturer recommendations found in the back of installation manuals for regular preventative maintenance.

Regularly maintain or replace filters, and thoroughly clean tumbler lint screens, blower fan blades, air intake louvers/ screens and burner manifolds. Annually, remove dryer fronts and remove any built-up lint around the cabinet, dryer cylinder and computer board. Check belt tensioning, inspect water valve and drain devices for slow leaks, and pay attention to vent system cleanouts and main manifold trunks.

Replace Old Washers and Dryers — Most new front-load washers and dryers offer solid efficiency in terms of electrical, natural gas and water usage. Dryers have become more efficient over time with spark igniters that allow for minimal tem-

perature fluctuations as they run the selected cycles. Moreover, they often feature improved cabinet fit and finishes, which retain more heat for a quicker dry while conserving Btu. To further lower electricity consumption, choose washers and dryers with inverter-driven motors.

Choose High-speed Washers — While the cost of softmount, high-speed washers is more than hard-mount washers, they will lower operational costs – especially natural gas usage. This is because soft-mount washers generate and sustain much higher extract speeds (up to 450 G-force), when compared with traditional hard-mount machines (up to 200 G-force). Thus, they remove significantly more moisture and soils from a load — slashing resulting dry time by up to 50%. Soft-mount washers will also reduce the operational time of your dryers — extending their longevity.

Soft-mount, high-speed washers can save thousands a year in utility costs. Additionally, soft-mount washers do not require bolt-down to a thick, reinforced concrete foundation. They save floor space and can be easily moved and relocated.

Tweak Washer Programming — If you buy new washers, ensure they are highly programmable for additional savings in water and electricity. It’s best to choose washers with a control that allows the store owner to customize extract speed, mechanical action, multi-level pricing, time-ofday pricing, wash temperature by degree, water levels, number of baths and rinses, and wash and rinse time by minute. That way, store owners can add or eliminate baths, extend or shorten rinses or washes, and decide what the exact water temperature should be based on vend price and energy/water costs.

By selecting exact temperatures, laundries can save a considerable amount in water-heating costs and hot-water volume demand, helping their heating systems keep up during peak periods.

Efficient Lighting — LEDs in white light, general illumination applications are today’s most energy-efficient lighting technology, according to the U.S. Department of Energy (DOE). LEDs use up to 90% less energy and last up to 25 times longer than traditional incandescent bulbs.

24 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
Tod Sorensen (Photo: © den.dubinko/Depositphotos)

You might also consider installing solar tubes. Solar tubes go through the roof, are sealed with a weatherproof plastic dome, and feature an interior-facing end with a diffuser that directs light into the laundry. During the day, they illuminate most spaces without the need for electrical power.

Ozone — The use of ozone with washers in a laundry can reduce waterheating costs because ozone works best in cool water.

Ozone is a gas that’s introduced in the wash cycle. It relaxes fabric fibers and works with chemistry to remove dirt and stains, while sanitizing laundry. Using ozone, laundries can lower water-heating costs while standing apart from the competition.

A Programmable Thermostat — Programmable thermostats allow you to carefully

control room temperature for every hour of the day, according to the DOE. You can save up to 10% a year on heating and cooling by simply turning your thermostat back 7 to 10 degrees F from its normal setting for eight hours a day.

Water Heater and HVAC Selection/Sizing — Consider replacing a less efficient water heater or HVAC system with a new, energyefficient model. Ondemand water heaters cost more than water heaters requiring storage but are less expensive to operate and take up considerably less space.

More traditional water heaters often require greater storage-tank capacity. The tanks are full of hot water that is always heated to temperature. One reason they are less efficient than on-demand models is because of the constant

loss of heat energy from the storage tank. If you have a traditional heating system with storage tanks, ensure your tank is well-insulated.

Don’t be fooled and choose equipment based only on price. Be sure to consider the total cost of ownership, including the purchase price, installation costs and operational utility costs over the life of a machine. Ensure you’re buying highly efficient equipment that pays for itself in time through years of lower utilities. At the end of the day, money saved on utilities translates to stronger profits and resale value.

Tod Sorensen is a regional business manager at Girbau North America and vice president of Continental Girbau West, a full-service distributorship serving the Southern California vended, on-premise and industrial laundry markets. He has more than 20 years of experience in vended laundry development and market analysis. He can be reached at tsorensen@gnalaundry.com or 866-950-2449.

www.americancoinop.com AUGUST 2023 AMERICAN COINOP 25

MAKING THE ‘UNATTENDED LAUNDROMAT’ BUSINESS MODEL WORK FOR YOU

Keep stores clean, be accessible to address customer service matters

Atrio of self-service laundry operators described in some detail why the “unattended store” model best fits their business plan and lifestyle during a recent Coin Laundry Association (CLA) webinar.

In “The Unattended Laundromat: Making That Business Model Work in 2023,” Kevin Beggs (no relation to the author) of Massachusetts, Casey Wright of Minnesota and Brian Brunckhorst of Texas spoke about their operations and answered questions from the virtual audience.

Beggs owns and operates nine unattended stores; his father started the company 54 years ago.

“Now, sometimes I hesitate to tell people that it’s been 54 years because we’re still trying to figure some things out,” he quips. “The point is we’re still trying and so that’s what keeps me busy.

“At one point, we had 12 stores but now nine is enough. And we run them unattended. That’s why we’re all here. I prefer to call them ‘self-service.’ Unattended is something that we aren’t. Self-service means people have an opportunity to serve themselves.”

Casey Wright is the operations manager for a group of nine Maytag

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(Photo: iStock.com/Enio DePaz)

Laundries in the Upper Midwest. “We were up to 12 at one point but we’re back to nine now. We’re into north-central Minnesota and then to Wisconsin. Our stores are about 150 miles apart, from furthest north to furthest south. I’ve been in the business since 1994. … All our stores are unattended, and have been since day one.”

Brian Brunckhorst previously called California home but now lives in Texas. His seven Advantage Laundry locations are split between the two states, with five in the San Francisco Bay area and two in the Dallas-Fort Worth area. Just one of the seven, a California location, is unattended.

“I’ve done both sides of the operation, and hope to be able to give you my take on that,” he says.

WHY UNATTENDED?

“We certainly have seen the trends and mode of operation ebb and flow over time,” CLA CEO Brian Wallace says of his association’s annual surveys on store operations. “Most recently, the last four or five years, it’s 40% to 50% fully attended. The unattended, or self-service only, would be in that 15-20% (range) most years, with the balance being … partially attended, where you’ve got somebody there, just not during all hours of operation.”

He asked the panelists what factors went into their decision to operate at least some of their stores as unattended.

“My dad started our company and he was the one who decided to start with his first store completely unattended. And he made it work for his second, third (and so forth),” Beggs says. “I joined my dad getting out of college and we built it up from six to 10 stores and had never run a store other than unattended. It’s the only way I know how to run ’em.”

“We’re in pretty small towns,” says Wright. “Most of our stores, the cities are 5,000, 10,000 people. … A lot of what dictated it in the beginning was pretty much a lack of sales. There’s not enough sales in a small town to justify having someone there all the time.”

“My rule is that if your laundry is making $15,000 gross a month or less, it probably should be unattended,” Brunckhorst says. “You don’t really have enough money in there to afford even a part-time attendant, you know. So you hire an independent contractor and have it unattended. If you’re between $15,000 and say, $25,000, maybe partly attended, and anything over 25, it’s busy enough, machines are getting dirty—cleanliness is important—so you know, maybe that’s when you go fully attended.”

ESTABLISHING SYSTEMS FOR SERVICE CONTINUITY

Wallace asked about key operational systems the trio has in place to help them and anyone who assists them.

“All of our stores are (open) 6 a.m. to 10 p.m.,” Wright says. “We have each so it automatically opens, automatically locks. We don’t have to depend on someone to do that with a key. … Also, all of our doors to cleaning rooms, changer rooms, even outside, all have a keypad. So anytime we need to have an HVAC (repair), or the city needs to come and put in a new water meter, whatever it is, we don’t have to be at the location.”

Cleaners have the flexibility to clean when they want during a given day. Between cleanings, someone will do a walk-through to pick up dryer sheets, empty the garbage, check the bathrooms, etc.

And for about the last year and a half, Wright and his workers have enjoyed the remote management benefits of a card payment system.

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Five of the nine locations have one, and more are being added over time.

“We have found things that work for us over the years,” says Beggs, “and we’ve tried to stress organization in our back room areas, for instance. We like to have the same setup in all nine locations. You don’t want to have to remember nine different setups.”

Being unattended, you’ve got to make sure that your independent contractor, whoever is cleaning the store, is there often enough, according to Brunckhorst.

“In some states, they can really be sticklers on who are the employees and (who are the) contractors,” he warns. “So, you’ve got to make sure you follow the rules for your particular location. In most places, as long as they supply their own equipment to clean, they have their own business license to operate as a business within that area, and they’re not on any particular hard schedule as far as what time they come in and go, those are usually good enough to be able to pass that test.”

COMMUNICATIONS AND CUSTOMER SERVICE

When a problem arises in one of Beggs’ stores, a customer can dial a phone number to the company office.

“And if we don’t pick up at the office, it rings through to a 24-hour, seven-day-a-week live answering service. It’s not a machine, it’s a person, and then they write up the description of the problem and they’ll text that out to a group of us and whoever is designated as on call for that day and time will return the call, talk to the customer and see what needs to be done.”

Brunckhorst says his stores supply added customer service through other means.

“We’ve put in video doorbells in each one of our stores, so if somebody has a problem, instead of actually having to pick up the phone, go through a menu, they can just hit the doorbell and get somebody right now. People like that. We’ve been getting a lot of very positive response from that.”

A PIECE OF ADVICE

As he wrapped up the conversation, Wallace asked each of the operators to offer one piece of advice to someone who might be thinking about establishing an unattended operation.

“Upkeep’s a big one,” Wright says. “I like to go there and visit with customers. We’re not just there in and out, you know, collecting money. Go there at different times of the day, different days a week. Chat with customers. The card system has certainly made it easier for us. Being in small towns, we sometimes have initial pushback, resistance to change, but just stay on top of it. Keep updating the business. Keep updating the store.”

“If you’re unattended, you’re not under the same considerations and restrictions that a store operator who was fully attended or even partially attended would be,” says Brunckhorst. “So oftentimes what we’re seeing is that for the fully attended stores, especially in these major markets, their pricing has to go up significantly as wages increase. But for the unattended stores, they can keep their pricing lower and so that becomes a disparity.”

“I think I would say, don’t worry about running a store unattended and not being able to compete,” Beggs says. “Provide a good service that people are going to value and use.”

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Repairing and servicing machines for over 12 years www.njclaundryrepair.com (732) 226-7053 sales@njclaundryrepair.com 0823aco_NJCLR Standard_half_horz-3.indd 1 7/11/23 10:02 AM

MOUNTAIN ELECTRONICS UNDER NEW OWNERSHIP

Laundry electronics remanufacturer Mountain Electronics Inc. reports that its assets have been acquired by Long Brothers Holdings Inc. (RDM Industrial Electronics Inc.). Terms of the deal were not disclosed.

Mountain Electronics says its customers “are guaranteed a smooth transition of ownership, with no immediate changes to ordering, fulfillment, or payment processes.” Customer service representatives remain the same.

The business will continue to operate from its existing location at 621 Micaville Loop, Ste. 300, Burnsville, NC, 28714.

RDM Industrial Electronics Inc. brings over 35 years of remanufacturing expertise to the commercial laundry industry. It’s headquartered in Nebo, North Carolina, with branches in Colorado, Florida, Indiana and Texas, and its workforce exceeds 120 people. Besides laundry, RDM also serves petroleum, car wash, medical and industrial customers.

“We are eager to continue growing Mountain Electronics’ business and are excited about the opportunities and resources this acquisition will provide,” RDM says.

Mountain Electronics’ former owners, Whitney and George Brasington, thanked their customers for giving them the opportunity to serve them for the last 18 years.

“We hope that we were able to help you grow and succeed in your business like you did for ours,” the Brasingtons say. “We are excited to hand over the reins to a competent and skilled team who will continue to provide excellent remanufacturing services. They plan on reducing your

turnaround time and increasing their stock of refurbished boards, as well as adding other products and services that will help you to do business smoothly and efficiently.”

ALLIANCE LAUNDRY SYSTEMS ACQUIRES DYNAMIC SALES AND SERVICE

Alliance Laundry Systems reports it has acquired the distribution assets of Kirkland, Washington-based Dynamic Sales and Service. Terms were not announced.

Dynamic has more than three decades of experience providing commercial laundry solutions in the Pacific Northwest and Alaska.

“We remain committed to partnering with distributors who have a long history of excellent service,” says Craig Dakauskas, senior vice president, Americas Commercial, Alliance Laundry Systems. “Dynamic definitely fits that criteria and we are excited to bring them into Alliance Laundry Systems Distribution.”

Dynamic will become part of the Alliance Laundry Systems Distribution West Region, while maintaining its Kirkland office.

Since Dynamic was founded in 1990, it has been a go-to resource for customers in a variety of industries, including on-premises laundries, laundromats, dry cleaners, and large-scale industrial linen plants, Alliance says. Dynamic is a full-service distributor, offering technical service and replacement parts, and representing Alliance’s Speed Queen and UniMac brands.

“From the start, we aligned with Alliance Laundry Systems because we

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felt they delivered excellence in every area,” says Dan Danhof, Dynamic’s president and co-founder. “We are proud that our history will continue as part of Alliance Laundry Systems Distribution.”

NEW FACES IN CSC SERVICEWORKS EXECUTIVE LEADERSHIP

CSC ServiceWorks, which provides multi-family housing and commercial laundry solutions, reports there have been recent changes to its Executive Leadership Team.

The Board of Directors has appointed Rod Castellanos as CEO, effective in May. This comes from a growing confidence in demonstrated results, and a recognition that fresh perspectives improve outcomes, the company says.

Castellanos had served as co-CEO and board member since November 2022, and has held several roles within the company since 2017, including chief operating officer.

“I am honored to lead CSC into our next era of growth as a leading consumer services platform company,” he says. “As an industry leader, you must be obsessed with delivering great experiences for millions of customers who rely on your services each day. I promise that we will put customer needs at the center of everything we do.”

Andrew Cloninger has been promoted to chief operating officer and will report directly to Castellanos. He is responsible for ensuring operational excellence through CSC’s One Operating Model initiative. He’s been with CSC for more than 22 years, having served previously as vice president of sales, senior vice president of the Southeast Region, and most recently senior vice president of field operations.

CSC has also promoted Eric Rasmussen to chief sales officer, responsible for leading the company’s commercial, customer service and marketing teams. He joined CSC in 2018 and most recently served as senior vice president of sales.

Sal Niola has served as chief financial officer since 2022, leading CSC’s financial strategy, accounting, treasury, and corporate financial reporting. He brought over 20 years of financial and accounting experience across multiple industries when he joined CSC in 2016.

Mike Catanzaro has been promoted to chief people officer and reports directly to Castellanos to ensure that CSC’s human systems deliver company results. He joined CSC in 2017 and most recently was senior vice president of HR and Talent Management, leading employee relations, performance, change management, and leadership development.

PAYRANGE ENTERS INTO EXCLUSIVE PARTNERSHIP WITH TURNS

PayRange Inc., a provider of mobile payments for unattended retail that includes laundromats, reports it has entered into a “landmark exclusive partnership agreement” with Turnsapp Inc., a laundromat and drycleaning software provider. Terms were not disclosed.

The partnership will leverage Turns’ laundromat and drycleaning management and point-of-sale (PoS) payment offerings to enhance the PayRange payment solutions portfolio.

PayRange will offer a turnkey, complete software solution for laundromats and dry cleaners that includes software to manage wash-dry-fold opportunities; pickup and delivery service; PoS system; mobile payment for machines; self-service payment kiosk; card readers; and more.

“We are particularly impressed by the scope and caliber of Turns’ offerings,” says Paresh Patel, CEO of PayRange. “Their best-in-market solutions, thorough product offerings, and well-designed, easy-to-use software make them the ideal partner for PayRange as we expand our platform.”

“This partnership with PayRange aligns with our mission of delivering technologically advanced, easy-to-use solutions to the laundromat and drycleaning industry,” a Turns spokesman says. “We look forward to integrating our system with PayRange and are excited about the added value this will create for customers.”

2ULAUNDRY ACQUIRES COMPETITOR THE FOLDE

Charlotte, North Carolina-based laundry and drycleaning service 2U Laundry, led by co-founders Alex Smereczniak and Dan Daquisto, reports it has acquired The Folde, a leading competitor based in Austin, Texas. Terms were not disclosed.

“Our team is thrilled about the opportunity to acquire and join forces with The Folde,” says Smereczniak. “This acquisition represents a massive step towards our vision of building the first nationally recognized brand in laundry and dry cleaning.”

The Folde is a laundry delivery service based out of laundromats in Austin and Houston, Texas. Those self-service laundromats double as private production facilities after retail business hours. It operates a deliveryfirst model catering primarily to delivery laundry service customers.

“Pickup and delivery represents a massive market opportunity, and we are confident that acquiring The Folde places us in a superior position compared to any other company in the industry,” Smereczniak says. “We are committed to delivering exceptional service and convenience to our customers, and we see tremendous potential to redefine the laundry and drycleaning experience on a national scale, especially now more than ever with what the two combined companies have learned.”

Mark Vlaskamp, co-founder and managing partner of The Folde, is enthusiastic about the acquisition and his opportunity to join 2ULaundry’s team as director of central operations.

“In the beginning, we set out to prove that delivery laundry service was a real, scalable business within laundromats. But that was limited to our two Texas markets,” Vlaskamp says. “Now, it is time to take that all across the country.”

SPEED QUEEN OPENS ITS 1ST FRANCHISE STORE IN FLORIDA

Commercial laundry equipment brand Speed Queen reports its Speed Queen Laundry franchise continues to expand with the opening of its first store in Florida.

The new store located at 301 NE Spanish River Blvd. in Boca Raton offers customers 2,500 square feet of space that features cutting-edge laundry equipment and ample room to spread out, the brand says.

“With high-performance equipment in capacities up to 80 pounds, customers will find washers and dryers to meet their specific needs,” says Peter Wolff, owner of the franchise store. “I can’t wait to introduce the community to a customer experience like nothing else they’ve seen. This store truly is a cut above the rest.”

The store kicked off its grand-opening events with two consecutive “free wash” weekends.

Speed Queen describes its franchise stores—which are cashless and mobile payment-friendly—as being “a welcoming spot for the community and constructed with families in mind.”

NEWSMAKERS 32 AMERICAN COINOP AUGUST 2023 www.americancoinop.com
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