American Coin-Op - February 2012

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I N S I D E : F E B R UI AN RS YI D 2E 0: 1J 2U L Y 2 0 0 5 PRICING STRATEGY: WHAT TO KEEP IN MIND ‘VEND’ SETTING PRICES

FLUSHING OUT THE RESTROOM ISSUE: DO YOU OR DON’T YOU?

PRODUCT SHOWCASE: FRONT LOADERS

W W W . A M E R I C A N C O I N O P. C O M

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CONTENTS FEBRUARY 2012 VOLUME 53 ISSUE 2 MARKETING YOUR STORE

COVER STORY

Rarely does a small business such as a coin laundry have the budget for a significant marketing campaign.

Learn about guerrilla marketing and the self-promotion mindset that places more value on effort and imagination than on spending money.

10 FEATURES 22 PRICING STRATEGY Phil Arvin’s laundry features new energy-efficient equipment that could easily have justified a higher vend price than that of his competitors, yet he chose to price his services comparably so his new store wouldn’t be seen as the “higher-priced place.” This is just one example of the variables that can influence coin laundry pricing. Here are some basic suggestions to keep in mind as you price your laundry services.

26 PRODUCT SHOWCASE: FRONT LOADERS

COLUMNS 18 FLUSHING OUT THE RESTROOM ISSUE Columnist Howard Scott this month examines a delicate subject: offering a bathroom to your customers. Scott spells out the four choices you have and what role each may play in how you’re perceived by your clientele.

DEPARTMENTS 4 VIEWPOINT 6 INDUSTRY SURVEY 14 PRODUCT NEWS

20 WEB UPDATE 29 AD INDEX 32 NEWSMAKERS

Cover Image: © iStockphoto/Neustockimages

26 A CLOSER LOOK Many of today’s front loaders offer high-speed extraction, programmable controls, and a variety of models.

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VIEWPOINT

EDITORIAL Charles Thompson, Publisher E-mail: cthompson@ americantrademagazines.com Phone: 312-361-1680 Bruce Beggs, Editorial Director E-mail: bbeggs@ americantrademagazines.com Phone: 312-361-1683

FEATURES TELL, BENEFITS SELL

Roger Napiwocki, Production Manager Jean Teller, Contributing Editor Nathan Frerichs, Digital Media Director E-mail: nfrerichs@ americantrademagazines.com Phone: 312-361-1681

ADVERTISING

Bruce Beggs

GUERRILLA MARKETING Guerrilla marketing coach Al Lautenslager is pretty blunt in his assessment of your customers’ affection for you: there is none.

Customers and prospects don’t care about you, he says, but they do care about themselves and how your service benefits them. And so it is that Lautenslager urges small businesses to stress their benefits and not their features, hence the headline to this column. You can read about Lautenslager’s guerrilla approach to self-promotion beginning on page 10.

PRICING STRATEGY Upon what criteria should you base your wash and dry vend prices? How do your front-load prices compare to other laundries across the country? Should you announce impending price changes to your customers or remain mum on the topic?

Establishing or changing vend prices is an exercise that is unique to each coin laundry owner; no two situations are the same. But there are some basic suggestions that every store owner may want to keep in mind as they go about the process. Read more starting on page 22.

BATHROOM ETIQUETTE It would be quite easy to focus on the equipment angle of running a coin laundry and forget about the less-sparkling aspects of the business, such as whether you should offer a bathroom for your customers. Columnist Howard Scott goes into great depth about the options before you and how your choice likely impacts how your customers view your business. His column begins on page 18.

INVITATIONS TO STATE OF THE INDUSTRY SURVEY COMING SOON With our annual State of the Industry survey results on tap for publication in April, we’ll be inviting subscribers by e-mail to take our online survey very shortly.

The more responses that we receive to our questions about year-to-year business, pricing, utilities cost, drop-off service and more, the deeper our analysis of this great industry. Please respond to our survey when given the opportunity, and contact us if you don’t receive an e-mail invitation.

Bruce Beggs Editorial Director

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

OFFICE INFORMATION Main: 312-361-1700 Fax: 312-361-1685

SUBSCRIPTIONS 630-739-0600 www.AmericanCoinOp.com

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S. and Possessions, 1 year $39.00; 2 years $73.00. Foreign, 1 year $89.00; 2 years $166.00. Single copies $7.00 for U.S. and Possessions, $14.00 for all other countries. Published by American Trade Magazines LLC, 566 West Lake Street, Suite 420, Chicago, IL 60661. Periodicals postage paid at Chicago, IL and at additional mailing offices.

POSTMASTER, Send changes of address and form 3579 to American Coin-Op, Subscription Dept., 440 Quadrangle Drive, Suite E, Bolingbrook, IL 60440. Volume 53, number 2. Editorial, executive and advertising offices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher.

American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. No material appearing in American Coin-Op may be reprinted without written permission. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2012. Printed in U.S.A.

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INDUSTRY SURVEY

NEARLY HALF OF LAUNDRY OPERATORS RAISED WASHER OR DRYER PRICES LAST YEAR Among those who raised prices, three out of four explained the move to their customers CHICAGO — Nearly half of the laundry operators who responded to January’s AmericanCoinOp.com Wire survey say they raised their washer or dryer prices in 2011.

Roughly 46% raised washer or dryer prices (raised vend price or reduced the cycle time) last year, while 53.6% did not.

Based on what laundries in their area (including their own) are charging, 42% of respondents believe that vend prices are too low. Approximately 28% believe that operators are charging a fair price.

Some 17% aren’t sure if the pricing is too high or low, and 10.1% say pricing in their area varies too much to make a general statement about it. Just 2.9% say that vend prices are too high.

How important is pricing to customers? Nearly 48% of respondents say it’s among the two or three most important factors, while 37.7% believe customers think it’s no more important than things such as cleanliness, comfort and equipment mix.

About 9% believe it’s only really important when competitors are low-balling prices, and 2.9% say that pricing is the No. 1 factor to a customer when choosing a laundry. The remaining 2.9% aren’t sure of the importance of pricing to customers.

When the operators who were polled raise vend prices in their stores, 74.6% say they explain the move to their customers.

Thirty-two percent of respondents anticipate having to increase vend prices if utility bills are what they expect this winter, while 39.1% say they don’t. The remaining 29% are unsure.

The Wire survey presents a snapshot of readers’ viewpoints at a particular moment, but it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take a brief industry survey anonymously online each month. All self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

To sign up for the Wire, click the “Subscriptions” button at the top right-hand corner of the AmericanCoinOp.com home page and follow the instructions.

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AMERICAN COIN-OP FEBRUARY 2012

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‘Guerrilla Marketer’: Customers Are Everywhere…

You Just Have to Know Where to Look

By Bruce Beggs, Editorial Director

I

n 2001, when Boeing was looking to relocate its headquarters from Seattle, Al Lautenslager’s suburban Chicago printing company offered to print free business cards for Boeing’s employees if the aircraft maker would set up shop in the Windy City.

If Boeing chose to move to Chicago, it would need new stationery, brochures, etc., all products for which the huge corporation would presumably turn to a local printer. Lautenslager issued a press release announcing the unorthodox free-business-card offer.

“We wanted to get Boeing’s attention,” he says. “We wanted to market to Boeing. We wanted to create awareness, we wanted to get our foot in the door, and we wanted to beat our competition.”

A suburban newspaper printed a brief mention, while the Chicago SunTimes’ much broader yet critical coverage characterized the offer as a bribe.

“I’m going to tell you that any PR is good PR, unless it’s an obituary,” Lautenslager says.

Four months later, Boeing decided to relocate to Chicago. Lautenslager issued a second press release: “Was it the $78 million in state tax incentives or the free business cards that got Boeing to come to Chicago?”

Nine newspapers, two radio stations and one TV station aired stories about it. One newspaper featured it on the front page.

“We generated tens of thousands of dollars of PR, of marketing and awareness, just by using a little bit of time, a little bit of energy, and a whole lot of imagination with that second press release headline.”

Lautenslager is a Certified Guerrilla Marketing Coach who believes the No. 1 reason that customers leave a business is because that business doesn’t pay them enough attention.

Making efforts to reach customers and prospects was at the heart of his message at a Drycleaning & Laundry Institute-sponsored educational session during the last Clean Show.

EVERYONE A MARKETER So what is guerrilla marketing? Jay Conrad Levinson coined the term in his 1983 book, Guerrilla Marketing, when discussing unconventional marketing methods that rely on effort and imagination rather than spending a large budget. Lautenslager co-wrote Guerrilla Marketing in 30 Days with Levinson in the 1980s, and a second edition was published in 2009.

“How do I know they’re proven?” Lautenslager says of the marketing 10

AMERICAN COIN-OP FEBRUARY 2012

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strategy ideas he was about to present. “I proved a lot of them. I was a small-business owner for 15 years. I had to market. I had to create the awareness. I had to get new customers to stay in business.”

Based on Lautenslager’s theory, you’re not just a self-service laundry owner, store manager or store attendant. “You’re all marketers of the business you’re associated with,” he says.

And so it is that he offered a series of suggestions from his book, what he called “a step-by-step blueprint for how to put one foot in front of the other, from a marketing standpoint.”

STEP BY STEP Develop a Guerrilla Marketing Mindset “Every single day, whether I’m traveling on the road or working in my office, I think about this question: How am I building the awareness of my prospects and clients through the marketing that I’m doing?”

Before he goes about the work of each day, Lautenslager spends time doing three to five marketing-related things. It might be handwriting a thank-you note to a customer, brainstorming a tagline, or coming up with an idea for a new directmail campaign.

“You do that for three weeks and it becomes a habit, and a marketing habit is a great mindset to have in your business.”

Define Purpose for Marketing and Your Goals “What specific activity do you want customers to take as a result of your marketing? Do you want them to call you on the telephone, visit your website, come into your place of business, enter a contest?”

Marketers define these as “calls to action.”

“Every single brochure, website, sign, sales pitch, on-hold message ought to have a call of action associated with it,” Lautenslager says. “Prospects need to be told what to do. Do not leave it to chance that they’ll know what to do as a result of your marketing.”

Identify Your Target Market “Targeting is pretty much what you think it is. Who buys what? Where do they buy it? Why do they buy it?”

Whatever specifications you put around that target market, there exists a list for those specifications, and your list is your market, Lautenslager says. “Maybe you’re 12

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“We want people to think of us if and when they need our products or service.” targeting a certain income level, a certain family size and a certain subdivision.

There’s a list that exists for those specifications.”

Do a web search for “list broker” in your city to find companies that provide that kind of service.

Your best prospect to target is a current customer, and second best is a previous customer, Lautenslager advises.

Position Your Business This refers to creating a “position” for your business in a customer’s mind.

According to Lautenslager, Positioning authors Al Ries and Jack Trout wrote, “Positioning is not something you do with a product or service, it’s what you do in the mind of a prospect.”

“We want people to think of us if and when they need our products or service,” Lautenslager says.

In the Chicago area where Lautenslager lives, the freezing and breaking of water pipes during winter, especially in the middle of the night, is a real possibility. So how does Expert Plumbing position itself? By promoting this fact: “We never close.”

And don’t be afraid to promote your expertise in providing laundry and/or dry cleaning services.

“Everybody in this room is an expert in something. It’s OK to say that. Customers like to buy from experts. They trust experts. They have confidence in experts’ work. Go ahead and say that.”

Point Out Your Competitive Advantages and Benefits Customers and prospects don’t care about you, Lautenslager says, they care about themselves and how your service will benefit them.

“So, you’d better be talking to them,” he warns. “That mean you’ve got to talk about benefits, not features. Write this down: features tell, benefits sell.”

They’re looking for benefits like convenience, time savings, organization, ease of access, immediacy, reduction of resources required, and reliability.

“At some point in time, make a list of the

benefits you offer your customers and prospects. And then I suggest that you make a list of the benefits that your competition offers. If those two lists are identical, neither one of you have a competitive advantage.”

And if you don’t know what your benefits are, ask your customers. They’ll tell you.

Do Some Business Networking “Everybody in this room, believe it or not, knows between 150 and 250 people each,” Lautenslager says.

On his website is a free report explaining how to instantly add 50 people to your network. These people include neighbors, your banker, your favorite bartender, your travel agent, etc. Lautenslager’s favorite on the list: the parents of your child’s sports teammates.

Plan for the networking events you will attend and set some goals (meet X number of people, receive X number of business cards, etc.).

“Arrive early and leave late,” Lautenslager says. “Some of the best networking happens before the meeting and after the event.”

Take Advantage of PR Opportunities Editors love news but hate promotion, Lautenslager says, so connect your business with current events to increase relevancy.

“I suggest you do a press release every other month,” he says. “Establishing a relationship with an editor is just like establishing a relationship with a customer.

“Anytime you have a new product or service, win an award, have a new employee, new strategy, new location, editors deem that as news.”

In the end, whatever type of marketing you choose to pursue, launch what is comfortable for you and your business.

“When I say comfortable, I don’t mean just comfortable financially, I mean comfortable emotionally. You can’t do everything that I’ve talked about today. I can’t do everything I’ve talked about today. But you can pick one, two or three things you’re comfortable with and implement them.” ■ www.americancoinop.com

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PRODUCT NEWS

BIGGER BY THE BUSHEL

STACK WASHER/DRYER HANDLES SMALL LOADS; CARTS AVAILABLE IN THREE SIZES

« DEMAND FOR LARGE-CAPACITY CARTS AWAKENS ‘BIG DOG’

R&B Wire Products recently added a 6-bushel wire laundry cart, the 200H, to its line of wire carts. The “Big Dog” was developed in response to the increase in demand for large-capacity carts, say Frank Rowe, vice president of sales and marketing.

“The number of large-capacity carts in coin laundries has increased dramatically over the past few years,” he says.

Where 21/2-bushel carts were the norm, R&B now finds there is a blend with 41/2-bushel carts.

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“Customers are bringing in larger amounts of laundry per visit and needing two or three laundry carts to meet their needs, sometimes creating a cart shortage,” Rowe says.

R&B has seen a rise in orders for its 41/2-bushel carts as the commercial laundry segment adds larger-capacity equipment.

“We were surprised that we were approached by numerous customers (who) expressed a need for a larger-capacity cart—larger than our existing 41/2-bushel 200F,” says R&B Wire Products CEO Rick Rawlins.

The 200H cart is offered with chrome and blue or gray vinyl-coated baskets, and with a double-pole or single-pole rack option.

rbwire.com | 800-634-0555

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AN OUTSIDER’S VIEW

FLUSHING OUT THE RESTROOM ISSUE Do you make one available to customers? If so, how much work should you put into it?

Howard Scott

Let’s examine a delicate subject: the bathroom for customers in your store(s). You have four choices.

You can have no public restroom, and let them use the employee bathroom when they plead. (Of course, some cities require that all establishments serving the citizenry have public bathrooms, so this alternative might not be possible.) You can have a filthy bathroom, which will discourage patrons from ever using your bathroom again. You can have a clean bathroom, which requires regular maintenance and periodic updating. Or you can have an interesting bathroom. Yes, you read correctly: I said “interesting.”

Let’s go over the choices one by one.

• None — You will be able to tell stragglers that there’s no bathroom to save on toilet paper, but be real. Do you want your customers, who might spend an hour and a half to two hours on your premises, to have no place to go to the bathroom and wash their hands? Must they be required to ask the attendant to use the employee restroom? Even worse is forcing them to go home to use their own facilities. These options are not professional.

Any restaurant that didn’t have a public restroom would soon be out of business.

A Laundromat should avail its customers of this service on an upfront basis.

If your laundry is unattended, making a bathroom available is a bit more problematic.

Vandals might make the facility less than palatable. A compromise is to let customers use the employee bathroom when a staffer is there.

• Dirty — You know the one—a filthy frosted-glass window covered with cracks, the stained linoleum floor curled and chipped at the edges, grungy toilet with a cracked top, dirty sink with grimy shards of soap and permanent water stains, rusty overhead pipes, wall surfaces that haven’t been cleaned in decades, and an empty paper towel rack above the overflowing wastebasket.

Many Laundromats have this sort of facility. It’s awful,

Any restaurant that didn’t have a public restroom would soon be out of business.

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AMERICAN COIN-OP FEBRUARY 2012

but it’s a bathroom. To recount a line from The Odd Couple, fastidious Felix says to sloppy roommate Oscar, “I’ve seen gas station toilets cleaner than your bedroom.” He could replace gas stations with Laundromats.

The advantage here is that you can offer your customer a toilet without doing much work. You can check off the box, even though your customer might not appreciate the effort.

• Clean — Here, we have relatively new fixtures, including the toilet, sink and vanity. The corner table is presentable, with contact paper carefully applied to the top. The place is cleaned every day, and the linoleum floor has been recently wet-mopped. The overhead lighting fixture casts a bright, full light. The vanity mirror is smudge-free. Maybe, there is a soap dispenser to minimize the mess. It’s pleasant, clean and up-to-date.

You are doing your job by providing a clean, presentable bathroom. Of course, you don’t want the privilege to be abused. The bathroom is intended for customers, and a sign on the door reads “For Customer Use Only.”

If attended, you might require a key that can be obtained from the staffer on duty.

If someone comes in and asks to use the restroom, you must have developed an approach to separate the customers from non-customers.

Ask if he or she is a customer. “Not today, but I use you occasionally.” Ask how often. Ask the person their name and consult a book entry (or pretend entry). If there is no entry (or you don’t recognize the person), say, “This isn’t a public bathroom, you know. If I let everyone off the street use my bathroom, it wouldn’t be fair to my customers.”

Depending on how the person reacts, decide if he or she can use the bathroom. You’ve established guidelines for usage. Next time, the individual will be less likely to stop in your place. At the same time, you’ve been polite enough to avoid offending a true customer. Have your staffers memorize the formatted approach, and you will not be bothered by excessive use.

• Interesting — What is an interesting bathroom?

Well, it’s a clean bathroom with a special touch. But no one is suggesting you spend a lot of money for superstylish Kohler bath fixtures like the ones you might see in upscale magazines. www.americancoinop.com

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I was once in a small bathroom with walls and ceiling painted black, sporting red sideboards plus gold-framed mirrors in three spots. My reaction was, “Wow, isn’t this something!” The homeowner said she spent about $100 to buy the mirrors at Goodwill and paint the walls and ceiling herself to create the Toulouse-Lautrec look.

I once was in a restaurant bathroom with a decoupage collage of advertisements filling one wall from floor to ceiling.

Painted in huge print on the front door was “Unisex Lavatory.”

So, how could a Laundromat bathroom be deemed interesting? It could be three pictures of colorful pastoral scenes on the walls. How about a plastic sign at the entrance that reads, “In this chamber, the most brilliant thinking occurs.” Would such a light touch hurt your reputation?

How about having a calligrapher write quotations in large Roman letters, then paste them to a green outlined foam core board that you’d affix to the walls? Some suggested quotes: “We are all lying in the gutter, but some of us are looking up at the stars.” — Oscar Wilde; “Be bold, be bold, but not too bold.” — Karen Blitzen; and “Most men live lives of quiet desperation.” — Henry David Thoreau.

Put a sign on the bathroom door identifying it as “La Pissoir”

(urinal). Inside, suit up a life-size mannequin in casual clothing and beret and stand it in the corner. Think French. Or put a “WC” (short for “water closet”) sign out front and hang posters depicting British life on the walls. Have some fun.

An interesting bathroom expands the user’s experience, and just might be a reason he or she visits your laundry again. Furthermore, an interesting bathroom obligates your staff to keep it clean. You wouldn’t want that mannequin standing in squalor, would you?

■

What is an interesting bathroom? Well, it’s a clean bathroom with a special touch

Howard Scott is a long-time business writer and small-business consultant. He has published four books. If you have any questions about this column, contact Editorial Director Bruce Beggs at bbeggs@americantrademagazines.com.

To read more Howard Scott columns, visit AmericanCoinOp.com

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Most popular stories from AmericanCoinOp.com for the 30 days ending January 15 — Web Exclusive (WE)

TOP FIVE STORIES • TravelCenters of America Rolling Out All-New Laundry Equipment • Survey: Nearly Half of Laundry Operators Raised Washer or Dryer Prices Last Year • Maytag, Whirlpool Commercial Laundry Introduce New GM • Natural Gas Spot Prices Expected to Continue Decline • Maryland Man Sentenced to 9-Plus Years...

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From AmericanLaundryNews.com:

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• Robert J. Renteria: Weigh Your Options When Buying Laundry Equipment (WE) • Howard Scott: Make This Tax Season Work for Your Benefit

From AmericanDrycleaner.com: • Equinox Chemicals Acquires Adco Cleaning Products • 51st Annual Plant Design Awards — Grand Prize: Margaret’s Cleaners

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PRICING Strategy

By Bruce Beggs, Editorial Director Photo: ©iStockphoto/ Eric Hood

Some Basic Suggestions to Keep in Mind When Establishing or Changing Vend Prices hil Arvin and his two partners opened their first Maytag-equipped coin laundry in Memphis, Tenn., last March.

The 5,000-square-foot attended store offers new energy-efficient 60- and 80-pound washers that have much larger capacity than those in competing stores and thus could justify commanding a higher vend price, Arvin says.

But the group followed the suggestions of distributor Justin Laundry and established prices that are comparable to the laundries nearby, Arvin says. “Even though we’re offering a much higher-quality product, we didn’t want to be perceived as the higherpriced place.”

This is just one example of how the market can influence a laundry’s pricing strategy. But other factors at work, too, and there are some basic premises that the self-service laundry operator should keep in mind when establishing or changing vend prices.

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Criteria for Setting Price?

Upon what criteria should a laundry 22

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“Even though we’re offering a much higher-quality product, we didn’t want to be perceived as the higher-priced place.”

— Phil Arvin, Co-Owner, Maytag Laundry, Memphis, Tenn.

owner base his or her wash and dry vend prices?

“It really comes down to two issues,” says Kevin Hietpas, vice president of sales and marketing for Dexter. “No. 1 is what’s happening to his costs. How have costs impacted the viability and profitability of

his business? Owners should have a good sense of where their business is tracking from a performance standpoint.

“No. 2 is where is he competitively.

None of us exist in a vacuum, so you want to understand, ‘I might want to get to a certain point, but as of right now the market won’t let me go there all at once.’ That’s a secondary concern, because I think if the owner is providing good value, it’ll be reflected in his costs. He’s not going overboard with what he’s charging, nor is he under pricing for his service.”

A store owner needs to be aware of and factor in the competition’s prices when determining his or her own washer and dryer pricing, says Kent Walters, national sales manager for Maytag/Whirlpool Commercial Laundry.

“The owner’s goal should be to produce the best experience for the customer from ambiance to equipment and services—and the costs associated with washing and drying play a large part in this equation,” Walters says. www.americancoinop.com

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How Do Front-Load Prices Compare?

American Coin-Op recently surveyed its e-mail subscribers about their November 2011 front-load vend prices — their lowest and highest, and whether the prices had changed since the previous November.

Subscribers were not asked to identify machine capacities.

Results from the anonymous, unscientific StatShot survey show the lowest and highest prices in November varied quite a bit among the four regions.

“The most important thing to address regarding a change in price is why.”

— Kent Walters National Sales Manager, Maytag/ Whirlpool Commercial Laundry

In the West, customers could get a frontload wash for as little as $1.50. The lowestpriced front-load washes ranged from $1.50 to $3.75. Nearly 88% of these prices were unchanged from November 2010.

The remaining 12.5% of respondents had raised their lowest-price wash during the 12 months.

The price range for the most expensive front-load washes in the Western region was $2.75 to $7.89. Every respondent reported these prices were unchanged from a year earlier.

Low-end front-load prices in the South ranged from $1.75 to $4.25. Approximately 62% of respondents had kept the same low price since November 2010, and 31.6% had raised the price. Just 5.3% had lowered the price.

Southern customers faced the widest price range of all regions — $2 to $17.50.

Nearly 58% of operators reported having raised their high-end price since November 2010, and the remainder were unchanged.

In the Northeast, the most inexpensive front-load prices were $1.50 to $5.50. Just 6.7% of operators had raised their prices in the previous 12 months, while the remainder had kept the prices unchanged.

When it came to the most expensive wash, Northeastern customers were paying $2.25 to $8 in November. Approximately 24

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21% of respondents had raised this price compared to November 2010, while the remainder had stood pat.

The least expensive front-load prices in the Midwest ranged from $1 to $4.50. Just 5.9% of operators had raised their prices since November 2010, while another 5.9% had lowered them. The remainder had kept prices unchanged.

On the high side of front-load prices, Midwestern customers faced a range of $2.50 to $8.79 in November. Some 12% of respondents had increased prices, with the remainder keeping the status quo.

Should You Announce Price Change?

between (machine) sizes,” he says. “If (one machine is) twice the size of a machine, it should be roughly twice the vend price. A lot of owners like to have rational multiples between machines to make it easier for customers to make decisions about which machine they might want to use.”

Customers are more sensitive to how long it takes and how much it costs to dry than to small changes in wash prices, Hietpas says. “It’s the last piece they interact with, so it just seems to stick in their memory a little more.”

When Your Competitor Undercuts You

How should a laundry owner approach the topic of pricing with his customers?

Should he alert them prior to implementing a price change?

Hietpas says he’s seen many owners have good luck increasing prices when they are up front with their customers. For example, if you’re planning to raise prices due to higher utility rates being charged by your municipality, post a couple of articles from the local newspaper about that topic.

“Customers, as much as they may not like it, understand that kind of stuff,” he says.

“The most important thing to address regarding a change in price is why,” Walters says. “Customers need to understand why prices are fluctuating. Typically, price increases can be attributed to the cost of utilities. Store owners have to stay ahead of the cost of doing business, especially in the laundry industry that depends heavily on the use of utilities.”

“The owner ends up explaining it one way or another,” Hietpas says. “That’s why I think it’s better to address it on the front end with as many facts as possible rather than feel like they’re playing catch up by explaining it on the back end.”

And whether it happens intentionally or not, there is likely to come a time when a competitor will undercut you in price.

Then you have a decision to make.

“If an owner is convinced that for the type of wash and dry they’re offering, the atmosphere, the other services, that they’re charging fairly, they should probably make the decision to give it some time and see if customers recognize that value and come back,” Hietpas says. He suggests giving it a month before acting.

Shifting Prices Too Frequently?

“A store owner needs to provide his customers with assurance that they are getting the best service, equipment and experience money can buy,” says Walters. “If a competitor in the area is charging less for a similar service, the store owner needs to tout the reasons why his/her store is worth spending the extra money.”

In this type of situation, the opinion of a neutral third party is invaluable, he says.

“Ask someone to visit your store, talk to the customers and provide feedback. Why would a customer pay more for your coin store? What are the perks of your store vs. the competition? This information can help an owner accurately illustrate the experience customers receive at his/her store.”

■

Vending technology has enabled owners to change prices on equipment easily—during slow hours or days, for example—but care should be taken to not change prices too often. This can turn off customers, Walters says.

“Yes, altering vend prices often is not a good practice for owners looking to be successful and grow their customer base,” he says. “If customers are unsure what price to expect on a regular basis, they will look for a store that’s more consistent.”

Consistent pricing makes things easier on your customers, Hietpas says.

“A lot of customers are very good at doing the basic math in comparing

Customers are more sensitive to how long it takes and how much it costs to dry than to small changes in wash prices.

— Steve Hietpas, Vice Pres., Dexter

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PRODUCT SHOWCASE

FRONT LOADERS ELECTROLUX lectrolux Professional washers, distributed by Laundrylux, feature “Automatic Water Savings” and high-spin 200-G or 350-G extraction speeds as standard. The high-spin extraction minimizes drying time and provides significant gas savings, according to the company.

The washers also feature Compass Control, which controls water levels, wash times and num-

E

ber of rinses, plus heavy-soil and extrarinse options; SuperBalance to calculate unbalanced loads and adjust distribution and extraction speeds; and text messaging to customers to notify when loads are completed and to coin-op owners when service is needed. laundrylux.com 800-381-7222

MAYTAG COMMERCIAL LAUNDRY

HUEBSCH he Huebsch HC60 is built on an all-welded structural steel frame, with an ergonomically designed door handle that closes easily and locks reliably.

The dual triple-lip seals and stainless steel shaft collar defend against the effects of moisture.

With the Galaxy 600 control, multilevel vend pricing and time-of-day pricing are available to help laundry owners increase turns during slow times, and customers can tailor wash cycles.

Owners can retrieve machine data using a PDA or laptop. Easy programming and information retrieval allows laundry owners to manage multiple Laundromats.

With the Galaxy 600, owners also can set water levels to reduce expenses. The machine has available 30 different water levels, which helps with savings up to 55% over older models, Huebsch says. The control also features advanced leak detection. huebsch.com 800-553-5120

T

aytag® Commercial Laundry offers its Energy Advantage™ Rigid Mount Front-Load Washers with the TurboWash™ System. Operators can develop machine configurations to fit customer capacity needs. Models range from 18 to 80 pounds.

Featured upgrades on the line include advanced controls with cycle and pricing options, full opening door design, extraction speed increases, and water temperature control options. The company also offers upgraded cycle options, allowing owners to adjust water levels and temperatures to help control energy costs.

“The ability to customize the coin store operation to meet customer demands and keep energy costs low is vital to owners,” says Craig Kirchner, director of global commercial laundry at Whirlpool Corp. maytagcommerciallaundry.com 800-662-3587

M

PELLERIN MILNOR ellerin Milnor Corp.’s MCR18E4 washer has a load capacity of 45 pounds, and the machine’s 6.4-cubic-foot cylinder volume allows for oversized loads.

The durable stainless steel cabinet design, easy-to-use control, and comfortable door han-

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dle are designed for continued use.

The MCR18E4 comes with pre-programmed formulas, and each can be configured with a different vend price, Milnor says. milnorcoin.com 504-712-7656

www.americancoinop.com

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IPSO PSO’s IWF040 washer-extractor offers ease of use and an efficiency that is valuable to vended laundry owners, the company says. The IWF series offers high spin speeds of up to 165 G-force, allowing for increased water removal and faster dry times.

All IWF washer-extractors are energy-efficient and designed to help store owners reduce utility costs.

The machine is equipped with an inverter drive that allows for a gradual ramp-up in speed, eliminating a large electrical current draw.

Welded channel iron construction provides a strong base that offers years of service. The machine’s design allows technicians to access most components from the front and top for quicker repairs.

The Micro-20 control offers multi-level vend pricing with nine factory-programmed cycles, as well as audit and diagnostic capabilities. ipso.com 920-748-3121

I

www.americancoinop.com

WASCOMAT ascomat’s large washers, distributed by Laundrylux, are easy to use and maintain, the company says.

The W677 solid-mount washer features 100 G-force extraction, Compass Control, a simple design, and tested componentry. The machine can handle a variety of fabrics, including comforters, sheets and king-size bedding. Models are available in 20-, 25-, 30-, 45-, 62and 77-pound capacities.

The company’s EXSM665 and EXSM680 solidmount, 220 G-force extraction washers, in 65- and 80-pound capacities, are heavy-duty alternatives to high-speed, soft-mount washers. They can reduce drying time, enhance electrical and gas savings, and provide faster store throughput, Laundrylux says. wascomat.com 800-645-2204

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PRODUCT SHOWCASE

DEXTER n addition to having a choice of Jet Black or Dexter Blue color schemes, all Dexter frontload washers with capacities of 60 pounds or more now feature a user-friendly frontmount supply dispenser.

Dexter washers feature low water usage and a “sump-free” outer tub design to minimize overall water usage, the company says, and energy-saving variable frequency drives deliver 60% or greater energy savings. Dexter washers are available in either regular 100 G-force or 200 G-force EXPRESS models.

Dexter’s washers are available in capacities from 20 to 80 pounds, and a stack washer-dryer model is available for

I

those with space limitations. All washers are computercontrolled, offering reliable, flexible programming options. dexterlaundry.com 800-524-2954

SPEED QUEEN peed Queen’s Horizon front-load washer comes equipped with Quantum™ Gold control. Offered in a stainless steel option, the Horizon matches well with washer-extractors and dryers with stainless fronts, the company says.

The ENERGY STAR-rated Horizon washer features a large door opening of 15.5 inches in diameter and a 180degree door swing that aids in loading and unloading. It fits in the same footprint as a top-load washer, Speed Queen says, and comes with pump or gravity drain.

When equipped with Quantum™ Gold control, the machine reduces water consumption to 12.8 gallons per cycle, the company says. A 1,000-rpm spin speed, exerting 300 G-force, and 5,499 perforations in the wash cylinder help to remove excess water from loads and reduce drying times. speedqueen.com 920-748-4375

S

CONTINENTAL GIRBAU ontinental Girbau’s ExpressWash high-performance washer-extractors are designed to help vended laundry owners reduce gas, water and energy consumption. Available in 20- to 90pound capacities, ExpressWash Washers are freestanding, and offer easy installation and programmability, the company says.

ExpressWash high-performance washers consume less water and offer extract speeds up to 387 G-force. As a result, the washers remove more water from each load, which can reduce drying time up to 50%, as reported by company test results.

ExpressWash Washers can be installed without bolts and special reinforced concrete foundations, allowing for quick installation. This expands machine location possibilities, including some wood floor locations and second-story laundries. continentalgirbau.com 800-256-1073

C

LG ith ENERGY STAR qualifications, LG’s commercial washers incorporate energy and water efficiency features. According to the company, the washers offer versatility, ease of use, and high performance.

The machines’ front-load design and direct-drive motor helps reduce consumption, and the card and coin washers provide a large load capacity. An inverter control system allows the machine’s drum

W

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AMERICAN COIN-OP FEBRUARY 2012

to run at a constant speed, thus reducing energy use.

LG’s machines also feature AdaptAble™ Control, allowing the owner to place controls at either the top or bottom of the unit, which puts both panels at eye level on stacked units. The machines also feature SmartDiagnosis™, which helps technicians to troubleshoot mechanical issues over the telephone. www.lgcommerciallaundry.com

www.americancoinop.com

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ADVERTISERS’ INDEX Advertiser

Page

AC Power ...................................................................... 14 ALJ Electronics................................................................ 30 American Dryer Corp. ...................................................... 3 American Switch.............................................................. 30

Advertiser

Page

NATCO............................................................................20 New York Laundry Equipment ...................................... 23 NIE Insurance .................................................................. 7 PWS................................................................................ 8,9

D&M Laundry Equipment ..............................................15 R&B Wire Products ........................................................ 1 E.S.D. Inc. .......................................................... 16,17, BC Scott Equipment ..............................................................25 Gold Coin ...................................................................... 13 Setomatic Systems.......................................................... IFC Gorman Distributors ...................................................... 29 Great Lakes Commercial Sales ...................................... 30 HHC Electronic Service .................................................. 31

Super Computer Boards .................................................. 30 Vend-Rite .......................................................................... 5

Laundry Concepts .......................................................... 21

Wells Fargo Insurance Services ...................................... 19

Maytag .......................................................................... 11

Western State Design .................................................... IBC

Mountain Electronics ...................................................... 30

Yankee Equipment............................................................27

www.americancoinop.com

FEBRUARY 2012

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VENDING MACHINE SALES—Nationwide. In business since 1960. Machines, coin changers, soap venders bulk. Place machines near your business & grow. 100% Financing. Call the rest, then call the best. Phone or Fax 800-211-1066, 800-917-VEND. www.vendingmachinesales.com

COIN-OP FOR SALE WELL ESTABLISHED coin laundry with drop off and cleaning business, in the most livable city in the U.S. TALLAHASSEE FL. Call 850-402-7683 for more information.

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www.AmericanCoinOp.com 30 AMERICAN COIN-OP FEBRUARY 2012

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SERVICES AND SUPPLIES

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METRO LAUNDRY TECH CORP. 253 East 204th Street, Bronx, NY 10458 ONE-YEAR WARRANTY ON ALL REPAIRS Please call 718-742-4137 Or 718-733-4313 Or Visit our website at www.metrolc.com email us at metrolc@hotmail.com

WASCO GEN 5 DOOR LOCKS & TIMERS REBUILT Door Lock $68 • Gen 5 & 6 Timer $85 Gen 4 Timer $68 • Continental Timer $85 DRYER COMPUTER BOARDS ADC Stack $60 • Single $45 Huebsch SQ Board $45 Huebsch Old Style Board $55

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www.AmericanCoinOp.com

FEBRUARY 2012

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NEWSMAKERS

GOLD COIN LAUNDRY EQUIPMENT OPENS NEW SHOWROOM After 16 months of preparation and renovation, Gold Coin Laundry Equipment opened its new showroom and expanded parts department in January.

The Jamaica, N.Y., showroom featuring fully operational Dexter washers and dryers is part of a 5,000-square-foot expansion that converted old, empty warehouse space, the distributor says.

“At times, our parts customers were crammed in at the counter,” says Gold Coin President Douglas Pratt. “Now, with a total of 13,000 square feet to work with, that doesn’t happen; plus, we have more room to stock more items and disappoint fewer customers.”

Besides the Dexter equipment, Gold Coin now has room to display the Whirlpool line, plus ancillary products such as Vend-Rite soap venders, change machines by Standard Change-Makers, and a NATCO on-demand water heater. Customers can even try out Standard’s easyPAY kiosk.

MAYTAG, WHIRLPOOL INTRODUCE NEW TEAM MEMBER Maytag® and Whirlpool® Commercial Laundry recently appointed Robert English as general manager of global commercial laundry at Whirlpool Corp.

His responsibilities include managing the ongoing business strategy and overseeing marketing and sales, product development, quality, parts and service components of the commercial laundry business unit.

Previously director of Commercial Laundry in 2000, English’s most recent role English included managing Whirlpool’s laundry and refrigeration sales and marketing efforts with Lowe’s.

TRAVELCENTERS OF AMERICA ROLLING OUT NEW LAUNDRY EQUIPMENT TravelCenters of America, which operates TA and Petro Stopping Centers in 41 states and Canada, is rolling out the most modern self-service laundry equipment on the highway, the company says.

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TravelCenters’ 190 laundry rooms in company-operated locations contain nearly 2,000 washers and dryers that will be replaced with new machines before the end of March.

Laundry payment stations will be added at 98% of its locations to provide customers the optional convenience of paying with credit or debit cards, in addition to the traditional cash payment option.

The station can notify drivers via text message when their washer and dryer cycles are completed.

The equipment rollout coincides with the addition or replacement of folding tables, hanging racks and other equipment.

“We’ve taken a chore and made it simpler and more efficient,” says Tom O’Brien, TravelCenters President/CEO. “Not only will these advanced machines shorten the time it takes a guest to do a load of laundry, the new systems should also increase the availability of machines for all of our guests.”

TravelCenters will be offering promotional rates to credit/debit card users for 30 days after the new machines are installed.

SUPER LAUNDRY EQUIPMENT HIRES MASSIMINI AS SALES MANAGER Distributor Super Laundry Equipment has hired Daniel Massimini as coin laundry sales manager for eastern Pennsylvania and southern New Jersey. He brings more than 16 years of laundry industry experience to the company.

“Dan’s experience and commitment to his customers, along with our company’s commitment to provide the best products, best service, best prices and best financing, will Massimini be a great combination and fill a void in an underserved market,” says Tom Duckworth, Super Laundry vice president.

LAUNDRYLUX PROMOTES HINOJOSA TO NE REGIONAL BUSINESS MANAGER Laundrylux, distributor of Electrolux and Wascomat laundry equipment, has promoted Robert Hinojosa to regional business manager, coin, for its Northeast Territory.

“Robert is a great asset to our company,” says Laundrylux President Howard Herman. “He started out in Inside Sales about four years ago and has steadily taken on additional work and responsibilities.

Robert served as an interim RBM for the West Coast over the past year and did a Hinojosa super job.”

Hinojosa was born and raised in San Antonio, Texas, where his father and grandfather were partners in multiple coin stores. “I spent many weekends with my father keeping the stores clean and maintaining machines,” he recalls.

■ www.americancoinop.com

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Laundry Solutions One Customer at a Time!

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For over 40 years, ESD has designed and manufactured mechanical payment system products for worldwide distribution. As the innovator of the versatile, vertical coin slide, the originator of many high security options, ESD leads the industry in bringing a wide selection of time tested and proven slides, money boxes, locks, key shafts and cams for PAYMENT SYSTEMS any laundry or vending application.

FOR THE WORLD

Gate retainer with magnet s PATENTED SLUG ATTRACTING METHOD STOPS STEEL SLUGS WITHOUT JAMMING

All slides have case hardened parts to avoid slamming 3TAINLESS STEEL SLIDE GATE s STOPS FRONT TAMPERING #USTOMIZED BY CURRENCY

ND GATE s ELIMINATES STRINGING AND OTHER PULLBACK METHODS

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Coinslides, moneyboxes and high security devices for V4 all your applications

"UILT IN LEVER LOCK s PATENTED DEVICE STOPS FREE VEND

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ESD manufactures Vertical 4, 5, 8 and 14 coinslides 4OKEN 3LIDES !DJUST A PRICE® s 5P OR DOWN CONVENIENT AND 3LIDES FOR THE COINAGE OF OVER FOREIGN COUNTRIES !LL SLIDES ARE AVAILABLE WITH HIGH SECURITY OPTIONS INCLUDING MAGNETS SECOND VARIABLE PRICING GATES 3LIDE EXTENSIONS ARE AVAILABLE FOR ALL BRANDS OF MACHINES V14

ESD offers a wide variety of lock styles TUBULAR LOCKS 8$ LOCKS 8% LOCKS AND -EDECO LOCKS EACH OFFERING A DIFFERENT LEVEL OF SECURITY THAT CAN PROVIDE AN ACCEPTABLE SOLUTION FOR ANY APPLICATION

ESD accessories CAMS SHAFTS AND SLIDE EXTENSIONS COMPLETE THE MOST COMPREHENSIVE LINE OF MECHANICAL PAYMENT PRODUCTS IN THE INDUSTRY

ESD offers a range of sizes in Money Boxes BOTH SHORT APPROXIMATELY v AND LONG APPROXIMATELY v LENGTHS AND TWO DIFFERENT HEIGHTS "OXES ARE AVAILABLE WITH FLAT FACE OR HIGH SECURITY FACE POLISHED CHROME POWDER BLUE OR POWDER BLACK AND FOUR DIFFERENT LOCK STYLES 4HERE IS AN %3$ -ONEY"OX TO FIT EVERY APPLICATION

ESD products are available for Immediate Delivery

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