American Coin-Op - July 2012

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THE TRADE SHOW YOU CAN PUT IN YOUR POCKET

I N S I D E : J U L Y I2N0 S1 I2D E : J U L Y 2 0 0 5 DISTRIBUTOR SATISFACTION: WOULD YOU MAKE A SWITCH?

LAUGH, AND THE WORLD WILL LAUNDER WITH YOU

COIN-OP 101: EXTRA CREATIVITY CAN LEAD TO EXTRA PROFIT

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 JULY 2012 VOLUME 53 ISSUE 7 THE TRADE SHOW YOU CAN PUT IN YOUR POCKET With the next Clean Show still a year away, American Coin-Op fills the trade-show void with its every-other-year exhibition. Check out this year’s cast of companies from the comfort of your desk chair.

COVER STORY

FEATURES 38 COIN-OP 101: EXTRA CREATIVITY

CAN LEAD TO EXTRA PROFIT

Customers come to your Laundromat to do their laundry, but what if you could offer them extra services, drawing them into your store more frequently, while producing more profit for your business, and reducing your actual staffing out of pocket costs? Distributor Todd Santoro explores the opportunities available to you, some of which require little extra work from you and your employees.

42 CHANGES IN REPAIR/REPLACE TAX RULES In an effort to resolve the controversy over whether certain expenditures made by a laundry business are currently deductible as repair expenses, or whether they must be capitalized and deducted over the life of the underlying business asset, the Internal Revenue Service has finally released new regulations.

8 COLUMNS 34 LAUGH, AND THE WORLD WILL LAUNDER WITH YOU Columnist Howard Scott says he’s never heard a joke that has anything to do with commercial cleaning establishments. That’s why you should strive to introduce a touch of humor in your laundry, he says, and come up with a store identity that will draw customers by putting a smile on their face.

DEPARTMENTS 4 VIEWPOINT 6 INDUSTRY SURVEY 33 WEB UPDATE 36 CALENDAR

45 AD INDEX 46 CLASSIFIEDS 48 NEWSMAKERS

34 A CLOSER LOOK Come up with an identity for your store. How about a “Super-Clean” hero who churns out clean clothes faster than a speeding bullet?

Photo: ©iStockphoto/Yogy Ikhwanto

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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

EASY-DOES-IT EXHIBITION

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

ADVERTISING LOOKS GOOD ON PAPER The Clean Show is the largest trade show for those of us who work in the textile care industry—including the owners and managers of self-service laundries—but it only occurs every other year.

With the next one a year away in New Orleans, how can you get your trade show fix?

During every even-numbered year, American Coin-Op fills the void with the Exhibit in Print. We call our exhibition on paper “the trade show that you can put in your pocket.”

Bruce Beggs This issue’s display advertisers have set up “booths” to acquaint readers with their latest products and services. For many years, the American CoinOp Exhibit in Print has enabled readers to discover valuable tools and resources without having to leave the comfort of their stores or homes.

There’s no travel expense, no airport security hassle, no need to walk miles of aisles on an exhibit floor. Of course, you won’t see any live demonstrations here, but you can easily get additional information on any product or service by visiting the exhibitor’s website or calling them directly.

So, kick your feet up and—to borrow a line from the Yellow Pages—let your fingers do the walking starting on page 8.

GET A SENSE OF HUMOR Columnist Howard Scott has never heard a comedian crack wise about a neighborhood cleaning establishment but says it’s not a bad thing for a laundry owner to have a sense of humor. Scott comments on the benefits of looking at the lighter side of things and suggests that a store identity prominently featuring a light-hearted character might be just the thing that draws people to your store. Read his column beginning on page 34.

NOTE ON SAFETY You may want to remind your patrons about the safe use and storage of singleunit dose detergents, following multiple reports of children accidentally injesting the colorful packets. The American Cleaning Institute (cleaninginstitute.org) offers some tips on its website that you might want to print out and post. And is the phone number of the nearest poison control center posted anywhere in your store?

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 except Nov/Dec combined. 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 7. 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.

Bruce Beggs Editorial Director

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INDUSTRY SURVEY

SURVEY: MOST HAPPY WITH DISTRIBUTORS, BUT CHANGE NOT OUT OF QUESTION CHICAGO — While a majority of respondents to June’s AmericanCoinOp.com Wire survey are happy with their distributor(s), there are still sizable shares that might be looking elsewhere for the services and support they need.

Approximately 60% of self-service laundry owners polled are happy with their distributor(s) — 29.6% said they were “very happy” and 29.6% said they were “somewhat happy.”

Roughly 19% are “somewhat unhappy” with their distributor(s), while the remaining shares of 11.1% are “neither happy nor unhappy” or “very unhappy.”

Approximately 41% of respondents rely on distributors for advice, and 60% of them are satisfied with the advice they get.

Respondents say they rely on distributors for parts ordering and requests, tech support, and operational advice, among other services. “(My distributor) is not just trying to sell equipment but help me be a better owner so that my bottom line will increase and (I’ll) be able to upgrade equipment,” says one respondent.

Only 29.6% of operators are opposed to changing distributors, while another 29.6% are not sure how they would react if the opportunity to make a change arose. Approximately 19% would change distributors, and 22.2% would strongly consider it.

“I own three Laundromats and contacted five distributors last month for new equipment. Two salesmen came to talk in person, the others called me. None provided any advice, just prices, and none of them has contacted me since,” says an operator. “I don’t have a problem mixing brands of equipment, so I’ll decide by myself what to buy. I really do hate ordering thousands of dollars worth of equipment from someone who doesn’t really care if they make a sale or not.”

One operator in the Southwest had no choice but to seek out another distributor. “Our distributor pulled out of Texas without warning (and) left us high and dry.”

If you’re a distributor and don’t offer service schools, open houses, etc., you might want to reconsider. Thirty-seven percent of respondents are “very interested” in these events, and 25.9% are “somewhat interested.” Roughly 15% are neither interested nor disinterested, and 14.8% have little interest. Only 7.4% have no interest in such events.

While the Wire survey presents a snapshot of the trade audience’s viewpoints at a particular moment, it should not be considered scientific.

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Invest in a Maytag equipped Laundry and watch a powerful name go to work for you. ®

Introducing Maytag® equipped Laundry.

Imagine starting a business with the prep work and professional planning already done.

The wall color, floor tiles, signage, marketing materials—all pre-planned for you. When you own a Maytag® equipped Laundry, it’s a reality. Your store is easy to start, easy to run, and easy to grow. And best of all, you’ll have the support of Maytag—America’s #1 preferred laundry brand.* Learn more at maytagequippedlaundry.com. *Based on current 12-Approved Consumer State Tracker, 2010 Smith Dahmer Associates, LLC. ® Registered Trademark/ TM Trademark of Maytag Properties, LLC or its related companies. © 2012. All rights reserved.

NOW OPE

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he biggest trade show in the textile care industry is the World Educational Congress for Laundering and Drycleaning — the Clean Show. It’s the one time and place that manufacturers, suppliers, store owners and managers can all come together to check out the latest products, services and more.

But the Clean Show only occurs every other year. The last Clean Show was held in Las Vegas last year, and that seems like a distant memory now. Plans for the next Clean Show are under way, and we’ll be heading to New Orleans for that show next June, but that seems like a long way off.

That leaves us with no major textile care industry trade show this year in the United States. How can manufacturers and suppliers deal with this dearth of opportunities to show off their equipment and services, and

T

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AMERICAN COIN-OP JULY 2012

how can self-service laundry owners and managers learn more about them first-hand?

American Coin-Op is stepping up to the plate to help fill this void by hosting its own trade show — the Exhibit in Print — in this month’s issue. This “trade show you can put in your pocket” has a lot of the benefits of a live trade show — letting owners and managers peruse the booths of manufacturers and suppliers and check out all of the latest products and services. The best thing about the Exhibit in Print? All the pluses of a live trade show come without the sore feet and distractions that show attendees may encounter inside an exhibit hall.

All the “booth” articles have been submitted by the exhibiting companies. Any claims made in Exhibit in Print are those of the participating companies, not American Coin-Op. It’s time to hit the floor!

www.americancoinop.com

0311aco_NIE

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How Many Coin Laundries Has Your Insurance Agent Handled?

One or Two? Three?

I’ve personally handled insurance for hundreds of coin laundries! I’ve already dealt with most any issue your business is likely to face. If you have any questions about insuring coin laundries, I can and will give you a prompt, clear answer.

Skeptical? Call me with a question and find out for yourself.

Anne Cobb Fabricare Insurance Specialist

There’s more: I’m just one member of a team of experts at NIE. The entire organization has been handling fabricare insurance full time since 1915!

We are the only property & casualty insurer devoted

Cobb@nie.biz

100% to coin laundries and dry cleaners.

. . . . . . . . . . ................ ............................... ... Quote Request ............................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Coin Laundry Dryclean Plant Dryclean Drop Store

Coin Laundry Dryclean Plant Dryclean Drop Store

Coin Laundry Dryclean Plant Dryclean Drop Store

Gross Sales Hours of Operation Attended?

NIE Insurance • 6030 Bancroft Avenue, St. Louis, MO 63109 • 1-800-325-9522 • fax (314) 832-6775 • www.nie.biz

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Mountain Electronics Mountain Electronics specializes in repairing computer boards for the commercial laundry industry. The company services all types of control boards from all major manufacturers, including ADC, Dexter, Continental, Huebsch, International Dryer, IPSO, Keltner, Maytag, Primus, Speed Queen, UniMac, Wascomat and Whirlpool.

It will repair all of the electronic control boards from washers and dryers, including all types of ignition control units. Mountain Electronics is excited to announce that it is now repairing Delta Variable Frequency Drives (VFDs) from Dexter washers.

The friendly, knowledgeable staff goes “above and beyond the call of duty” to help customers get their machines back in working order as soon as possible. Skilled technicians thoroughly clean, repair and test each control board using high-tech test simulators.

Mountain Electronics offers the highest-quality repairs in the industry, and strives to maintain a fast turn-

around time. Each repair is guaranteed by a one-year warranty. If the board should fail within a year from the original repair, the company will repair it again at no charge or refund a client’s money.

Having computer boards repaired rather than buying new boards will save hundreds of dollars; repairs

by Mountain Electronics, whether for ignitors, dryer boards or washer boards, are affordably priced, and the company offers volume discounts.

Service includes free UPS Ground shipping back to the customer in the lower 48 states. Customers also can receive free inbound shipping by printing out a shipping label from the website.

mountain-electronics.com 800-370-6053

Coin-O-Matic Coin-O-Matic, family-owned and -operated since 1921, is an exclusive full-service laundry equipment distributor in the Chicago area and in northwest Indiana.

Distributing Speed Queen laundry equipment, Coin-O-Matic provides its customers with the most profitable investment solutions available. Coin-O-Matic’s team of experts leads the market in vend price strategies, utility conservation, site selection, and on-site repair service.

In today’s dynamic marketplace, the Laundromat owner needs partners with experience, and Coin-O-Matic can provide that component. Contact CoinO-Matic today and make your business more profitable.

coinomatic.com 708-371-9595

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Huebsch Huebsch® has been an integral part of the vended laundry industry for more than a century, building a wide range of durable commercial washers and tumble dryers to meet its customers’ changing needs.

Coin laundry owners choose Huebsch equipment for its durability, efficiency and profit-producing

control platforms, such as the Galaxy 600.

Today, Huebsch is a brand of the Ripon, Wis.based Alliance Laundry Systems, a global manufacturer of commercial laundry equipment and technologies. As an Alliance brand, Huebsch manufactures products in a world-class facility. Huebsch products also are supported by the top resources in the commercial laundry industry: a test lab, product development team, laundry design capabilities, and the best-in-class customer service initiative known as Customer One. Huebsch also offers in-house financing through Huebsch Financial, which combines a competitive set of financial products with unmatched industry knowledge.

The durability, efficiency and innovation that helped the company receive acclaim 100 years ago continues to be a driving force behind Huebsch’s position as an industry leader today.

huebsch.com 800-553-5120

Wells Fargo Insurance Services

Why do you think we have thousands of coin laundries insured?

Could it be that we are simply the best?

It’s easy to find out.

Image

Coin Laundry Insurance Program Jodie Millino ~ ' '!( "" ~ 4gc !

Steve Brodie ~ ' '!( "" ~ 4gc ! (

© 2011 Wells Fargo Insurance Services USA, Inc. All rights reserved.

www.americancoinop.com

JULY 2012

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Monarch Coin and Security Monarch Coin and Security Inc. has created coin technology for more than 109 years. We produce coin solutions and security products for coin laundries and many other industries.

As an American-made manufacturer, we strive for quality and customer service to produce the best customer experiences.

Our coin-op product line features coin slides, coin boxes, locks and extensions, security guards, coin-box guards, soap machines, change machines, tokens, token slides, locks and many other products that are

Wells Fargo Insurance Services Steve Brodie and Jodie Millino have

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necessary for the laundry industry.

Our website, monarchcoin.com, features coin laundry industry-related product knowledge and information.

The site has been expanded to include articles and facts that are intended to cater to every professional and help the industry grow. With distributors located throughout the world, our goal is customer satisfaction.

Let Monarch’s expert support staff guide you through any issues. With many manufacturers changing the coin operation on newer, commercial machines, it’s essential to provide operators with the necessary equipment.

Security, now more than ever, is a crucial issue. With a full line of guard kits,

been insuring self-service laundries since 1962 and continue to specialize in the laundry industry. Formally Edward C. Brodie Insurance, now Wells Fargo Insurance Services, USA, Inc., Brodie and Millino, along with their staff of professionals, are insuring thousands of store owners throughout the United States. Wells Fargo also has full SBA loan capability for their clients on a referral basis to the small-business loan division.

Wells Fargo has broad insurance policies designed to fit the important

Monarch can help eliminate theft and vandalism.

monarchcoin.com 800-462-9460

needs of all self-service laundry owners. Policies are priced competitively, with monthly payment plans for operator convenience. In addition, the company is allied with large, national insurance companies. Claims are handled professionally and promptly by local, experienced adjusters.

Self-service laundry owners interested in receiving an estimate can contact Wells Fargo and generally get a quote within 24 hours.

800-829-1330

www.americancoinop.com

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Maximizing Savings With Every Use...

A Washer Created With You In Mind...

To get the full scoop on ADC’s new EcoWash washer/ extractors and how they’ve improved Dave’s business , visit: www.amdry.com under EcoWash see Support, then Full Scoop

Simply Reliable By Design

(508) 678-9000 | sales@amdry.com | www.amdry.com

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NATCO In June, National Combustion Co. Inc. (NATCO) released its new NATSTAK series of water heaters.

NATSTAKs are fully enclosed and integrated combinations of a Fire Coil 85-style water heater mounted over an 80-gallon storage tank. The heater and pump are pre-piped with an internal circulating pump — installers make only cold water inlet, hot water outlet, and (natural or LP) gas connections.

NATSTAK water heaters provide

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the space savings and convenience of tank-type water heaters, with none of the drawbacks. They are sealed combustion, which means that standby losses are extremely low. A comparable 80-gallon tank-style heater can lose more than $1,000 in standby losses each year.

NATSTAKs, like Fire Coil 85 water heaters, can be vented through a roof (Category I) or a side wall (Category III). They can be installed indoors or outdoors. When inlet air is ducted to NATSTAKs, they are isolated in a laundry from air movement caused by dryers, cooling systems or exhaust fans. All NATSTAKS are low-NOx. New NATSTAK models are available at 199, 299, and 399 MBtu. All heat exchangers are ASME certified, and tanks are available with ASME certification. The New NATSTAK replaces NATCO’s previous NATSTAK and MiniNat models. E-mail sales@nationalcombustion.com for more information.

nationalcombustion.com 888-656-2826

PWS – The Laundry Company PWS – The Laundry Company is the nation’s largest distributor of commercial laundry equipment and commercial laundry replacement parts as well as the premier broker and developer of vended laundries. Since 1968, we have prided ourselves on first-rate customer service and being an innovator in the commercial laundry industry.

PWS is the only company of its kind to offer a complete set of end-to-end services, including: • Commercial laundry equipment sales, installation and service • Brokerage sales of existing coin laundries • Development of new laundries • Remodeling, design, and buildto-suit services • Financing for both laundry and equipment purchases • Parts sales After 44 years, PWS continues to be one of the premier distributors of Speed Queen commercial equipment in the United States, and the only factoryauthorized Speed Queen coin laundry distributor in California and Nevada.

Contact us for more information.

pwslaundry.com 323-721-8832 (sales) or 800-800-4797 (parts)

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ESD With CrossLink from ESD, a Laundromat owner can easily add credit- and debit-card acceptance to existing coin-operated machines, the company says.

CrossLink also accepts a storebranded mag stripe card. Points programs, bonus wash or dry credits, and timed daily specials are among the options.

CrossLink works with every manufacturer and model, even electromechanical machines, and encrypted Wi-Fi communication makes for easy installation, ESD says.

A web portal that is secure and accessible from mobile devices provides a store owner with information on the system.

esdcard.com 800-523-1510

R&B Wire Products The RB40 40-pound-capacity analog scale and the RB51PL 300pound-capacity mobile analog scale from R&B Wire Products provide a customer with basic weight measurement when he needs to measure only load capacity. Neither scale is legal for trade.

When a customer needs more and must meet federal and state requirements to charge by weight, then one of R&B’s Legal for Trade scales will fit the bill.

Three scales meet these criteria: • The RB50 is a 50-pound countertop scale with a front and rear display and a proprietary removable basket. This scale calculates weight only and has the ability to tare the weight of the basket to ensure proper weight measurement.

• The RB2000 (shown) is a 60-pound countertop scale with front and rear triple displays to provide weight, unit price and total price, with a removable proprietary basket. This scale offers three direct PLU keys that can be expanded to input per-pound pricing options.

• The RBDL-300, which can be a countertop or floor scale, has a 300pound capacity. It does not come with a proprietary basket but can be complemented by a standard 21/2 bushel E basket if desired.

R&B has a scale option to assist with any need. Check with an authorized R&B distributor or call the company for assistance. Check out the complete line of scales and learn the answers to many questions via the company’s website.

rbwire.com 800-634-0555

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Vend-Rite Mfg. Co. Vend-Rite’s Vision line offers Laundromat owners solutions to every vending need, the company says.

All venders feature a conveyor delivery system that maximizes product capacity. The system has the ability to vend items as small as a business card (such as Internet password cards) and as large as a 75-ounce bottle of detergent.

The Vision vender also delivers products by an elevator to a collection area.

The MDB wiring platform provides for multiple payment systems—coin, bill or card

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technology. The five-tube coin mechanism will accept nickels, dimes, quarters and dollar coins; the multi-directional bill acceptor will accept denominations of $1, $5 and $10.

Features include a continuous self-diagnostic system, product dating, refrigeration check, accountability, and sales data.

The machine’s illuminated front and hours of operation can be programmed, as well as an advertising panel on the delivery elevator. The modular design of the pre-wired shelves, motor assemblies and cabinet configuration offer flexibility to the Laundromat owner.

Drinks and snacks can be offered out of the same machine, and the configuration of the machine can be changed to meet customer needs.

New this year is the TAOS Vision, which is controlled by a credit-accepting unit that can operate up to four vending units.

The TAOS can be ordered with or without refrigeration.

The venders have bubble brand artwork on the fronts.

The available side panel graphics, as shown, are optional.

vendrite.com 800-777-1802

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New England Coin Laundry Experience the refreshing difference of America’s best-selling line of dryers; energy-efficient, high performance washers; and unparalleled customer service when New England Coin Laundry delivers clean and smart solutions designed to help build any coin-operated laundry business.

The company offers innovative technology, from eco-friendly, high-efficiency equipment to Digital Media Dryers with built-in advertising screens. It also offers an unmatched service guarantee with all equipment installed, serviced and repaired by factory-trained technicians.

Designed and manufactured in Massachusetts, New England Coin Laundry dryers are American originals.

And the machines are built to last, with space-saving, customer-driven designs that maximize floor space and ensure long-lasting, trouble-free operations.

newenglandcoinlaundry.com 508-837-6514

www.americancoinop.com

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LG Commercial Laundry LG Electronics says it redefined energy efficiency, performance and convenience for commercial laundries when it launched its family of on-premise, coin and card laundry solutions at Clean Show 2011.

LG’s commercial washers and dryers incorporate innovative features and high performance in energy-efficient, durable designs.

The washers and dryers are stackable, fitting interchangeably in the top or bottom position.

Owners and managers have the option to stack dryers on washers or dryers on dryers.

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LG’s commercial washers are designed to perform at least 20,000 cycles compared to the 4,000 cycles residential washers normally offer.

They meet the Consortium for Energy Efficiency (CEE) Tier 3 requirements, which recognize the most energy-efficient commercial laundry machines in the market.

LG’s AdaptAble™ Control allows placement of user controls at either the top or bottom of the unit, so both panels can be at eye level on stacked units. For additional flexibility, the dryer door is reversible without extra parts.

lgcommerciallaundry.com 855-543-9274

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Laundry Concepts Family-owned and -operated for the past 15 years, Laundry Concepts has built a reputation of excellent customer service, representation of quality products, and new, innovative ways to improve the self-service and on-premise laundry industry.

The company provides exclusive distribution of FasCard (fascard.com) in Illinois. FasCard is a new wireless card reader designed to give customers the ability to pay with credit card, coins, or even loyalty cards at each washer, dryer or vending machine.

FasCard’s remote accessibility and online reporting features give store owners the freedom of a loyalty card system without the large investment.

The Laundry Concepts’ online parts store is improving its part availability and provides quick turnaround times. Customers can sign up on the website—lcparts.com—to receive monthly and web-only weekly specials via e-mail.

Dion Marcionetti and his family are proud of their relationships with so many successful business owners who’ve contributed to the growth of Laundry Con-

cepts. With a combined 100-plus years of experience, the company knows how important it is to treat every phone call, walk-in and e-mail with the highest level of respect and customer service, the same way the Marcionettis treat each other—like family.

Royal Basket Trucks Royal Basket Trucks continues to offer superior cart solutions. In 2011, Royal launched a full line of wire laundry carts to support commercial laundries and dry cleaners.

Royal’s wire carts are produced in Wisconsin and feature a durable, black vinyl-dipped wire basket with PVC topping mounted to a powder-coated

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laundryconcepts.com 800-845-3903

steel base. The cart moves easily and quietly on non-marking polyurethane casters, the company says. The carts are available in three sizes, including a tapered front cart for front-load equipment, and have optional single and double garment hangers.

Royal also offers a full line of basket trucks, poly trucks, bulk linen carts, hampers, etc., for vast applications and markets. Products are made to order and ship within a short lead time, the company says.

royal-basket.com 800-426-6447

www.americancoinop.com

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AC Power Co. AC Power Co., a family-owned and operated distributor for more than 40 years, specializes in Electrolux and Wascomat laundry equipment and parts.

The company’s focus is on its customers.

When customers need help, they can depend on AC Power’s service technicians—the best and most knowledgeable technicians in the business.

They strive to get to know their customers, not just on a business level, but

also on a personal basis so that they can “see” the customer’s vision. The AC Power staff has more than 150 years of combined coin/debit Laundromat experience.

AC Power builds from the ground up, and offers everything a debit/coin laundry owner needs to be successful. Its business success is based on its customers’ business achievements, and it goes that extra mile to make sure that customers have all the tools they need to be financially successful.

acpowerco.com 800-362-1900

Taking a 20-minute shower.

not efficient.

American Dryer Corp. (ADC) American Dryer Corp. (ADC), the most trusted name in commercial dryers, now offers EcoWash, a line of commercial washers. These energy-efficient washer-extractors are available in 25-, 30-, 40- and 60-pound capacities, as well as 200 or 350 G-force.

To be a truly efficient washer, the machine has to do more than just use less water. ADC’s 200G Rapid Spin and 350G High Spin washers provide efficient wash cycles while reducing dry times by as much as 15% with the highspeed extract. Saving water on the wash cycle and time on the dry cycle allows a Laundromat

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to operate as efficiently as possible, increasing turnarounds and lowering utilities.

EcoWash also features Intuitive Micro Controls (IMC®), a programmable microprocessor that is customizable, easy to program and easy to use. It simplifies existing programs, modifies or deletes times of each phase of a cycle, and modifies water levels to achieve maximum savings. Multi-vend pricing capability and extended cycle options help a Laundromat owner to maximize revenue potential.

To learn more about its energy-efficient commercial washers, visit ADC’s website.

amdry.com 508-678-9000

JULY 2012

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Maytag® Commercial Laundry Built on five decades of commercial laundry experience and the 100-plus years of history of the Maytag® brand, Maytag® Commercial Laundry is putting the power of its reputation behind the Maytag® Equipped Laundry. With input from a select advisory council, the company developed and launched this branded store, which encompasses more than just equipment.

The Maytag® Equipped Laundry model offers store

owners a complete package that includes a consistent look and feel designed with input from architects and industry experts that allow for flexibility and visually appealing spaces; exterior and interior signage; complementary paint and flooring options that provide a uniform look and feel; and coordinating bulkhead and folding-table options for additional functionality and space patrons require.

With the backing of the No. 1 preferred and most recognized brand in laundry, Maytag® Commercial Laundry’s new concept store fills an industry gap. The consistent look and feel of the branded environment increases recognition and gives customers a dependable laundry experience they can count on every time.

Maytag® Equipped Laundry owners/operators qualify for a special Maytag Advantage™ Program, which offers exclusive benefits and perks, such as complimentary factory service training; discounted residential appliances from Whirlpool Corp.; grand opening or re-opening kits with materials and timelines to help plan effectively; point-of-purchase materials; and more.

maytagequippedlaundry.com 800-662-3587

Setomatic Systems What if a Laundromat’s customers could pay by credit or debit card right at the machine with just one swipe, and/or pay by coin or loyalty card? More options equal more customers. SpyderWash® enables customers to pay however they want to, just like they can wherever else they go, and early adopters will have an extraordinary advantage over their competition.

As the premier “hybrid” payment system on the market, Setomatic’s SpyderWash® enables owners to move into the future as payment technologies continue to change. All of the company’s readers accept the ever-growing Contactless “Tap” Credit /Debit Cards and are NFC-enabled for mobile-phone-payment integration of applications like Google Wallet and Isis, as these new technologies continue to emerge.

The advantages of the “pay-by-credit/debit-card” option are obvious. For customers, it spells convenience and the chance to charge the expense. This convenience will bring new customers into any coin-operated laundry by allowing them to pay with a card already in their wallet.

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AMERICAN COIN-OP JULY 2012

SpyderWash® is a credit/debit card payment gateway that authorizes almost instantaneously via the Internet, thus eliminating declined cards. The system tracks all revenue and will alert an owner when the coin boxes are getting ready to overflow. It does this without a PC on site so the owner avoids any backups, crashes, missed updates or obsolete operating systems. Critical data stays safe.

The system is wireless, easy to install, and utilizes the latest in high-level Bluetooth™ encryption. SpyderWash® is reasonably priced, and the payoff in the increased size of a facility’s customer base makes it cost-effective.

setomaticsystems.com 516-752-8008

www.americancoinop.com

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Gold Coin Laundry Equipment Started in 1987 by laundry industry veteran Fred Pratt, Gold Coin Laundry Equipment Inc. of Jamaica, N.Y., celebrated its 25th year with the opening of its expanded facility, now covering more than 13,000 square feet. Customers are now able to see the full line of equipment carried by Gold Coin in a working environment.

Demonstrations on Dexter 100G and 200G washers show potential buyers the differences between the two lines.

They also can see Standard’s EasyPay kiosk in action while learning about debit-card options such as systems by CCI, ESD and Easy Card.

Gold Coin is a full-service Dexter distributor, with a territory extending from New York City east to the tip of Long Island, north to include Dutchess, Ulster and Sullivan counties, and south and west to include the northern half of New Jersey.

In addition to selling and servicing equipment in this territory, Gold Coin’s expanded, fully stocked and fully staffed parts department ships parts nationwide. Gold Coin was named Dexter’s 2011 top distributor in the East (an accolade it has earned nearly every year of its 25 years in operation) and was Dexter’s 2010 Distributor of the Year.

Customers can look forward to Gold Coin’s annual “Founder’s Day Sale,” scheduled for Sept. 12-13.

Manufacturers’ representatives will be present, food will be served, and the prices will be among the best offered this year. Watch our advertising for more details or call Gold Coin for more information.

goldcoinlaundry.com 800-952-1474

Staring into the refrigerator.

not efficient.

New York Laundry Equipment Corp.

Are you looking for unbeatable prices on the largest variety of Laundromat equipment, parts and supplies? If so, contact New York Laundry Equipment Corp., the premier distributor of preowned commercial laundry equipment.

Let our expertise work for you: from finding and analyzing locations, to providing the best in refurbished or used equipment, to financing.

New York Laundry Equipment was founded in 1997 after the owner, a

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Laundromat owner, shopped and purchased some pre-owned equipment. After comparing the benefits of buying new vs. used, he felt that other Laundromat owners could benefit by purchasing pre-owned equipment as well.

Our business has been built on our reputation in the industry, and it is with great pride that we continue to service

Laundromat owners nationwide.

Today, we buy, refurbish and sell all equipment related to the laundry business, shipping worldwide. We can design your layout and provide equipment packages for an entire store or assist in the selection of individual items.

Our efforts in the industry have earned us the status of being the largest supplier of pre-owned equipment in the United States. We rebuild more than 2,000 washing machines annually.

Take advantage of a great deal today.

nylaundry.com 516-432-3834

JULY 2012

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Speed Queen Speed Queen is the world’s largest commercial laundry manufacturer, with a history of proven performance and reliability. The machines are designed, engineered and manufactured in Ripon, Wis., and laundry owners rely on the practical ingenuity of the machines’ features to make their lives simpler and businesses more profitable.

The company’s commercial-grade construction is rugged, dependable and best in class.

The company offers a complete equipment mix, providing a solution for any size store. Speed Queen has set new standards with its Quantum™ Gold control — a revolutionary technology that unites equipment controls, programming and store management into one versatile system, allowing store owners to remotely manage their stores and increase profitability.

When customers purchase Speed Queen equipment, they’re

NIE Insurance NIE’s official name is National Fire and Indemnity Exchange. It was founded in 1915 to provide insurance products to the dry cleaning and laundry industries. Throughout the years, NIE has written thousands of coin laundry operations, including attended, unattended and 24-hour operations. NIE’s staff has the expertise to handle the needs of all types of coin laundries and to help solve any problems customers may have.

NIE is a reciprocal exchange. That means NIE policyholders own NIE and insure each other.

There are no stockholders. All NIE policies are non-assessable. That means policyholders don’t have to worry about premium assessments if NIE were to become unprofitable.

NIE’s policyholders elect an Advisory Committee

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AMERICAN COIN-OP JULY 2012

investing in a global network that provides comprehensive service and support. Speed Queen offers an industryleading in-house finance program through Speed Queen Financial Services, which has financed thousands of new and veteran investors—with more than $1 billion in funds—while helping them achieve their dreams of vended laundry ownership. Company representatives are laundry experts and help guide customers through every aspect of their vended laundry from initial set-up to laundry design, marketing, service and maintenance.

This all adds up to one thing: Speed Queen offers customers everything needed to take total control of their vended laundry—with the most profitable machines in the industry. Users can rely on the impeccable craftsmanship and uncompromising commitment to quality that they’ve come to expect.

speedqueen.com 800-590-8872

of dry cleaner and coin laundry owners. That committee decides how to invest NIE’s assets, what actuarial firm should analyze NIE’s loss reserves, and what CPA firm should audit NIE’s financial statements. The committee speaks on behalf of all policyholders and in those policyholders’ best interest.

NIE’s work force is located in St. Louis.

When there is a coverage question or service need, customers receive a prompt, efficient answer.

nie.biz 800-325-9522

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Western State Design The team of experienced professionals at Western State Design regularly assists customers with the very latest furnishings, installing state-of-the-art laundry and mechanical equipment, laundry design, and development and layout services, including architectural, engineering and construction. Equipment financing options and advice are available, including manufacturer’s financing, leasing, and SBA/structured conventional loans.

Our staff can provide consulting services that include site demographic/real estate lease evaluations and developing operating proformas. Our team can also advise laundry owners and managers on evaluating green-friendly alternatives to reduce energy consumption and operating expenses.

Western State Design is proud to carry one of the largest parts inventories in the industry and offer full service and sales help on all Dexter laundry products. With 35

years experience as a premier, full-service distributor to the coin-op, on-premise laundry, and dry cleaning industries, we have grown to become one of the largest commercial laundry equipment distributors in the world.

Headquartered in Hayward, Calif. (near San Francisco), we have offices throughout the Western United States. Each location is fully staffed with factory-trained service technicians, parts personnel, and sales consultants to assist people with laundry needs.

Pay a visit to Western State Design, a Dexter awardwinning distributor, at westernstatedesign.com.

westernstatedesign.com 800-633-7153

New Huebsch laundry equipment.

efficient.

90 days deferred payments. 7.50% interest.

ACT NOW! Huebsch.com/efficient. 800.553.5120

First Line Laundry Corp.

First Line Laundry Corp. should be your choice for OEM and generic parts. We offer all the parts required to fix all of the machines in the industry.

More specifically, we offer the parts necessary to repair all brands of washers and dryers at the most competitive prices. All of our parts are of the highest quality, and are proven to last as long or longer than an OEM’s.

If you’re worried about finding that key part, don’t—we

have a huge inventory to serve our customer base.

In addition to carrying that crucial part, customer service is a priority. If you do not know your part number, we will be glad to assist you in locating the correct part(s) for your equipment.

If you’re looking for an established company to do business with, you’ve come to the right place. First Line brings 20 years of experience in servicing and repairing self-service laundry equipment.

Customer satisfaction is our No. 1 priority. Our customers benefit from our knowledge, experience and advice. We help ensure that you are getting quality parts at the right price with the right attitude.

firstlinelaundry.com 866-987-2787

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JULY 2012

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WashCard Systems

American Coin-Op

WashCard Systems’ wireless credit card payment system gives coin-operated laundry operators a way to increase the average dollar per vend and differentiate their store from other coin stores, especially given that customers carry less cash on hand these days. This is done by saving customers time and the hassle of trips to the bank, eliminating the negative associations with ATM fees, and addressing the explosive demand for acceptance of bank cards, credit cards and prepaid credit cards everywhere cash is accepted.

Store owners using WashCard indicate they like the ability to start small and grow over time since they do not need to purchase a minimum number of readers, and because the devices are completely wireless, it’s simple to retrofit existing equipment. WashCard offers individual readers for adding a credit-card option to select washers and dryers, and it has the Payment Kiosk for adding a credit-card option to large numbers of machines at an affordable price.

WashCard does not have a lock-in with a particular merchant processor or processing platform. Owners with existing coin stores don’t have to give up coin acceptance since a “hybrid system” like WashCard allows for coin and card on the same washer or dryer.

For store operators who are looking for additional marketing ideas or ways to build customer retention, WashCard offers a debitcard upgrade (branded prepaid cards) with a variety of customer loyalty promotional programs that can be used in any location.

American Coin-Op, “The Independent Voice of the Self-Service Laundry Industry,” tackles all the key issues in the laundry industry, one of this country’s most popular small businesses. More than 17,000 operators, manufacturers and suppliers receive information on the latest industry trends, energy-saving methods and management strategies.

You can stay informed about the latest self-service laundry news on a daily, weekly and monthly basis: • Check out AmericanCoinOp.com daily for up-to-the-minute industry news and stories. Our website also features industry resources such as a Distributors Directory, Buyer’s Guide, and classified ad section that aid self-service laundry owners in starting or maintaining a business.

Industry research reports are also available.

• The Wire, a twice-weekly electronic newsletter, provides news as well as the opportunity to take a monthly industry survey. Anyone interested in registering for the free e-mail service can visit AmericanCoinOp.com; click on the “Subscribe” button.

washcard.com 888-439-5740

americancoinop.com 312-361-1700

AMERICAN COIN-OP JULY 2012

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

TOP FIVE STORIES

COLUMNISTS/FEATURES

OUR SISTER WEBSITES

• StatShot: Highest Attendant Wage Paid by Operators in West (WE)

• Thinking About a Business Loan?

From AmericanLaundryNews.com:

• Attended vs. Unattended: No Magic Formula

• Panel of Experts: Stains and the Worst of the Worst

• Distributor Relationship Advice

• The Stain That Wouldn’t Fade

• Managing People According to Personality

From AmericanDrycleaner.com:

• Great Lakes Commercial Sales Appointed Electrolux, Wascomat Distributor • DOJ: Counterfeit Document Ring Frequented Georgia Laundromat • Super Laundry Acquires RAF Equipment Co. • Alliance Laundry Reports Improved...

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• Manage Your Online Reputation

• StatShot: April Sales Up Across the Board; Payrolls Down (WE) • Firbimatic Relocates U.S. Corporate Office...

JULY 2012

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AN OUTSIDER’S VIEW

LAUGH, AND THE WORLD WILL LAUNDER WITH YOU Levity refreshes in this day and age of deadpan seriousness and fast-paced materialism

Howard Scott

Humor and a coin laundry doesn’t exactly sound like a natural combination. In fact, nobody connects humor with his or her local Laundromat. I’ve never heard a comedian make a joke that has anything to do with commercial cleaning establishments. That’s why you should strive for a touch of humor.

Why? Because humor is a positive force of nature.

It helps dispel frustration and annoyance, puts good vibes in the air, and makes a person think less about his problems and more about the ironies in life. It erases fear. We always need more humor.

Let’s start with the name of your business. Two fun names I’ve come across are 1) Captain Bubble and 2) The Bubblette.

Captain Bubble conveys a larger-than-life character that will do your wash perfectly. The bald-headed character Mr. Clean on the label of the same-named cleaning solution comes to mind. In fact, the Mr. Clean character pictured on the bottles and featured in TV commercials has helped make the product one of the biggest sellers in its market. He makes you think strong, muscular, capable.

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AMERICAN COIN-OP JULY 2012

Bubblette has a different connotation—French, delicate, sudsy. But you also think of clean, well-scrubbed clothes, and the pleasant-smelling fleur-de-lis lavender flowers from the south of France.

These two Laundromats are real places, and I’m sure many customers get a chuckle every time they wash their clothes at one of them.

Come up with an identity that incorporates the virtues of a good Laundromat—spaciousness, new machinery, efficient operation, and fast wash/dry/fold service.

How about a “Super-Clean” hero who wears a blue cape and churns out clean clothes faster than a speeding bullet? Or a washer lady who takes care to make sure everything is extra-clean and stain-free? You could feature a delivery demon that delivers your clothes with minimum fuss and maximum speed every time.

How about a bandana-wearing, sailor-cap-doffing fish that weaves through the water to make sure every bit of dirt and grime is removed? Consider a patch-eyed pirate with a hook who carries a flag emblazoned with “The Cleanest Clothes in Town.” Every one of these characters has marketing potential.

Invent a character you favor and fashion him/her around your operation. Use this “spokesman” on all paperwork, vehicles, signs, front, etc. Place him/her front and center in any newspaper ads or marketing programs.

All vehicles should emphasize the character’s identity. Put an identifying logo on each machine. Have staffers wear logo shirts.

When prospects see the image of your deep-sea character, they will know it’s a mailing from your company and be more apt to open it up. When passing your store, prospects will notice the larger-than-life hero soaring above the store sign and a smile will form on their lips.

When their washers are broken at home, they will envision your pirate; that’s the place where they can clean their clothes. When someone asks about an area Laundromat, the image of your washer lady will pop into the listener’s mind and he will direct the person to your business.

Hang a humorous sign or two in your store. How about “We buff cannons,” for the pirate motif? Or “We make your blankets sleep-able,” alongside a kitten sleeping on a blanket? Or “We’ve cleaned over 6,000,000 garments,” to www.americancoinop.com

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mimic McDonald’s iconic signs about numbers of hamburgers sold?

I’m partial to clever quotations, such as: • Even a fish wouldn’t get into trouble if he kept his mouth shut.

— Anonymous • When everything seems to be going against you, remember that an airplane takes off against the wind. — Henry Ford • You should always go to other people’s funerals; otherwise they won’t come to yours. — Yogi Berra • An eye for an eye only ends up making the whole world blind.

— Mahatma Gandhi Any of these pieces on a wall provides entertainment to your waiting customer. They might even think, “I’m learning something here.” Rotate these quotations periodically, and you will have customers wanting to come back to see what your walls are “saying” this month.

Create a sandwich sign for the front of the store that reads, “Through these portals go the cleanest people in the world.” Or, in the back of the shop, seat a life-size mannequin clown in a chair and hang a sign around its neck reading, “Cleanliness is not only next to godliness; it’s inside each machine.” Above the washbasin, hang this sign: “Wash your hands before cleaning your clothes. We want you to be cleaner than clean.” In the bathroom, post a sign that reads, “Don’t even think of not washing your hands.”

Who would not smile at seeing any of these bits of business? The fact that they all emphasize cleanliness can’t help but be a plus. Any mental stroke that introduces clean into the customer consciousness can only prove beneficial. Subconsciously, your patrons will

feel they are really cleaning their clothing.

Know an artist? Commission him or her to create a life-sized sculpture of a woman sitting in a chair and washing clothes using an old-fashioned wooden washboard. My vision is of an all-white plaster sculpture similar to the works of George Segal, with a sign affixed: “It’s easier nowadays, isn’t it?” Commission an artist to paint a mural on the outside of the building that features cultural icons—for example, Groucho Marx, Brigitte Bardot, Babe Ruth, Abraham Lincoln and Barbara Streisand in various stages of washing clothes, with the caption—“Our customer list has no shortage of famous people.” Think that would make passers-by smile?

All these suggestions display a sense of humor to customers and demonstrates that the owner/manager is not above being playful.

Any owner who doesn’t take himself/herself too seriously can’t be a monster. In this day and age of deadpan seriousness and fastpaced materialism, such levity would be refreshing. Or as they say, “Laugh, and the world will laugh with you.”

Try it in a small way at first and expand from there. It might even make you smile each time you enter your store.

■ Howard Scott is a long-time business writer and small-business consultant. He has published four books.

To read more Howard Scott columns, visit AmericanCoinOp.com

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JULY 2012

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CALENDAR

DON’T MISS THESE UPCOMING EVENTS JULY

AUGUST

OCTOBER

13-15 Calif. Cleaners Association Fabricare 2012 Conference Long Beach, Calif.

Info: 916-239-4070 fabricareshow.com

11

11-13 Coin Laundry Association Conference TBA Rancho Mirage, Calif.

Info: 630-953-7920 coinlaundry.org

14

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AMERICAN COIN-OP JULY 2012

PWS Los Angeles Service School Info: 888-979-7462 San Francisco Service School Info: 650-871-0300 pwslaundry.com

PWS Los Angeles Service School Info: 888-979-7462 San Francisco Service School Info: 650-871-0300 pwslaundry.com

24-25 KeeWes Equipment Co. 21st Annual Trade Show Branson, Mo. Info: 800-383-9274

NOVEMBER 15

SoCal Coin Laundry Assn.

Fall Meeting Cerritos, Calif.

Info: socalcla.com

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COIN-OP 101

EXTRA CREATIVITY CAN LEAD TO EXTRA PROFIT

Todd Santoro

Customers come to your Laundromat to do their laundry, but what if you could offer them extra services, drawing them into your store more frequently, while producing more profit for your business, and reducing your actual staffing out of pocket costs?

Extra profit centers provide a variety of additional revenue opportunities, and some require little extra work from you and your employees.

These business opportunities can be broken up into two categories: those that lie within your core competency and directly relate to laundry, and ancillary projects that can be add-ons to your main business purpose.

LAUNDRY-RELATED CENTERS There are some extra profit centers that are common to the laundry industry, such as vending machines for everything from soda and snacks to detergent. These are an easy, low-maintenance option for a small amount of extra work that can easily result in 10% more revenue per month.

As the laundry industry changes and grows, many owners have added or are looking to add wash-dry-fold

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AMERICAN COIN-OP JULY 2012

(WDF) services to their offerings or to increase their existing offerings to include commercial accounts. There are several ways that owners can adapt this service to fit their businesses’ needs.

One way to increase your existing service is by partnering with a local dry cleaner. Establish a program where customers can drop off at your location for both

Extra profit centers provide a variety of additional revenue opportunities, and some require little extra work from you and your employees. services; work with the dry cleaner to determine the timeline and revenue split. It’s important to choose a dry cleaner that is in close proximity to your store, but is far enough away that it also will benefit their business—this is a partnership and both sides must profit to be successful.

A word of caution when choosing your dry cleaning partner: evaluate their prices in relation to your core demographic before making a deal. Some stores charge $1.15 per pound for drop-off and have a 10-pound minimum to ensure profit.

Pick-up service is another way you can adapt WDF to suit your business. Set a delivery radius around your store, up to 20 miles, and charge per pound to accommodate the increased costs. The amount you charge will depend on your area of the country, but make sure to set a poundage minimum to ensure profitability. Also, make sure to target not only residential areas but also small businesses that may not have laundry on-site. Pick-up is particularly important for growing your commercial laundry revenue to include clients such as spas, catering companies and salons.

If your store is close to a college campus, offering a WDF service for students can be profitable. A way to do this is by offering a flat fee for the semester that is automatically charged to a credit card at the start of each term. Programs like these have become popular over the past year. An easy way to quickly grow your student www.americancoinop.com

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We have a coin laundry financing solution to meet the needs of new store owners, and veterans alike.

ACRES OF HARD TO FIND USED WASHER & DRYER PARTS WASHER & DRYER FRONT & SIDE PANELS ALL MAKES AND MODELS STARTING @ $50 WASHER DOOR $35 & UP COMPLETE DRYER DOOR $35 & UP COMPLETE ANY WASHER TUB 18#, 35#, 50#, WITH NEW BEARINGS $175 & UP WITH EXCHANGE ALL DRYER BASKETS $75 & UP ESD CARD READERS $150 EA EMERALD SERIES COMPUTER BOARDS $575 EA LET US REFURBISH YOUR PANELS ~ FRESHLY PAINTED PANELS IN EITHER ALMOND OR WHITE ... $70 EA CALL FOR SPECIAL NEEDS

THERE ARE MANY INTERPRETATIONS OF THE WORD REBUILT—BE A SAVVY CONSUMER— TAKE THE TIME TO VISIT OUR WEBSITE @ www.nylaundry.com VIEW THE ILLUSTRATIONS THAT WILL SHOW YOU THE WAY WE REBUILD MACHINES— THE RIGHT WAY!!

VISIT OUR WEBSITE TO SEE MONTHLY SPECIALS

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COIN-OP 101

business is partnering with an established provider, such as dormmom.com, which provides student and residential laundry service across the country.

Lastly, if you begin offering WDF service, be sure to let your local special events centers know. Entertainers have laundry needs, and you can quickly make yourself indispensable by making them aware of your services.

ANCILLARY PROFIT CENTERS Ancillary profit centers allow Laundromat owners to be creative with their offerings. While customers are waiting for the wash, you have a captive audience who is looking for ways to keep busy. Additionally, ancillary services make more customers aware of where you are and what you offer. Think about what your customers need, then put together a plan to deliver them entertainment or convenience. The services you offer are only limited by your creativity.

U-HAUL TRUCK RENTAL An example of a creative ancillary profit center is offering U-Haul trucks for rent. Some stores have extra parking spaces, enabling them to establish a partnership with U-Haul that allows the company to keep trucks on store properties. Owners receive commission from the rentals, and attendants also set up reservations for other locations, which also nets owners a percentage of the rental. The only cost associated with this extra profit center is affiliated with office supplies such as printer ink.

Additionally, U-Haul lists the store’s location on its website, which helps increase web traffic and visibility.

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AMERICAN COIN-OP JULY 2012

OTHER ANCILLARY SERVICES There are many other services that your store can offer, but remember, you must consider your target demographic and know what is important to them.

Services that are quick and helpful will best serve them and you.

Some ideas that could potentially work in your store include the rental of rug cleaners, DVDs or propane tanks. Also, some owners have lottery terminals in their stores. From these, you make about 5% of every ticket sold.

Some ideas that could potentially work in your store include the rental of rug cleaners, DVDs or propane tanks.

CHOOSING THE RIGHT SERVICE As with every business move, there are some considerations to understand before committing to one of these extra profit centers.

Resources are a huge concern for laundry owners.

For any of these services, you will need to have an attended or partially attended store, along with staff that is capable of running these services. You must train your employees so they not only know how to manage laundry, but also know how to use these services, such as booking a U-Haul reservation.

A benefit for you is that the profit centers can offset the costs of employees—especially if you require additional staff to run services.

Don’t try to jump into multiple extra profit centers at once. Become successful with your core business, and then add profit centers one at a time as revenue increases. Offering new services requires additional oversight and time from you along with training of employees.

Don’t let your primary business suffer as you expand.

As with any big business decision, make sure to do your due diligence on the service you consider offering.

Consult with your distributor, who can help you see what is working at other locations and give you suggestions. Extra profit centers are a great way to be a little creative and bring in extra revenue for your store. ■ Todd Santoro is president of Clean Wash Laundry Systems, an IPSO distributor located in Omaha, Neb., serving Iowa, Kansas, Nebraska, North Dakota and South Dakota. He can be reached at 888-990-7191 or tasantoro@clslaundry.com. www.americancoinop.com

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GET CREDIT WHERE CREDIT IS DUE

LESS IS MORE

Boost your revenue by accepting credit cards

Introducing the large capacity, low impact EcoWash.

Laundry customers who use credit cards upgrade to larger washers and dryers, use more machines, and spend more money. Credit card acceptance can boost revenues up to 30%. Learn how you can accept credit and debit cards on any or all of your equipment.

Return some green to the planet – and your wallet – with the 60-lb capacity EcoWash coin washer from New England Coin Laundry. Its powerful 200 G-Force motor uses less energy, extracts more water, and adds more to your bottom line.

“My customers love it, so I love it” – Fred Ives, Massachusetts

Call (508) 837-6514 or visit newenglandcoinlaundry.com

Call (508) 837-6514 or visit newenglandcoinlaundry.com

www.americancoinop.com

to see our new Build Your Own EcoWash feature, and learn how shorter wash times and reduced water and energy use can build your business.

43 JULY 2012 AMERICAN COIN-OP 41

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Changes in

Repair/Replace Tax Rules

By Mark E. Battersby n an effort to resolve the controversy over whether certain expenditures made by a laundry business are currently deductible as repair expenses, or whether they must be capitalized and deducted over the life of the underlying business asset, the Internal Revenue Service has finally released new regulations.

The IRS’s long-awaited expanded regulations for determining whether an expense must be capitalized because it betters or improves tangible business property or equipment, restores it, or adapts it to a new and different use, will have a significant impact on every laundry business that acquires, produces, or improves its tangible property.

In addition to clarifying and expanding the current rules, the new regulations create “bright-line” tests for applying the repairor-capitalize standards, provides guidance for accounting for—and disposing of— repaired property, as well as clarifying other aspects of the repair/capitalize dilemma.

I

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AMERICAN COIN-OP JULY 2012

The new regulations specify how repairs made simultaneously with improvements are to be treated, and provide a “safe harbor” for routine maintenance expenses such as materials and supplies. The new rules are also must reading for landlords and tenants that must capitalize expenses related to leased buildings. And, because the new rules were issued in “temporary” form, every plant owner and operator will feel the impact immediately.

CAPITALIZE-OR-REPAIR EXPENSE Since the Reconstruction Era Income Tax Act of 1870, taxpayers have been prohibited from deducting amounts paid for new buildings, permanent improvements, or betterments made to increase the value of property. While this concept has been recognized as part of tax law almost from its inception, exactly what must be capitalized and what may be currently deducted as an expense has been at issue ever since.

According to the IRS, expenditures are currently deductible as a repair expense if they are incidental in nature and neither

Photo: ©iStockphoto

materially add to the value of the property nor appreciably prolong its useful life.

Expenditures are also currently deductible if they are for materials and supplies consumed during the year.

On the other hand, expenses must be capitalized and written off over a number of years if they are for permanent improvements or betterments that increase the value of the property, restore its value or use, substantially prolong its useful life, or adapt it to a new or different use.

Unfortunately, the current rules don’t clearly address even the core issue of whether expenditures should be deducted currently (e.g., as repairs or as materials and supplies) or capitalized by the plant owner or operator.

REPAIR/REPLACE BASICS Under the rules, the cost of work performed to return property to a former condition without extending its useful life is currently deductible as a repair expense, unlike capital improvements that extend its life or increase its usefulness or productivity www.americancoinop.com

DON’T

MISS

OUT

HERE’S WHAT’S COMING UP IN AMERICAN COIN-OP...

AUGUST Feature: Extra Profit Centers The best ways to generate extra revenue; Insurance Update Product Showcase: Big Boys (75 Lb+ Washers and Dryers) Editorial Submission Deadline — June 15

SEPTEMBER Feature: Buying or Selling a Store: Evaluating a Property/ Location Determining fair market value involves many factors; Succession Planning Product Showcase: Water-Heating Equipment

IN EVERY ISSUE: • Product Showcase • Wire Survey Results

Editorial Submission Deadline — July 15

OCTOBER Feature: Distributors Directory & Survey Another “keeper” issue features listings for laundry equipment

• Product News

and supply distributors nationwide, plus the results of a

• Web Update

distributor business survey.

• An Outsider’s View

Editorial Submission Deadline — August 15

• Newsmakers

NOVEMBER/DECEMBER

• Ad Index

Feature: Year in Review

• Classifieds

A look back at 2012’s best ideas with an eye toward the future; Store Security/Surveillance

Want to send a press release or submit a story?

Product Showcase: Money-Handling Equipment

Contact Bruce Beggs, editorial director, today!

Editorial Submission Deadline — September 15

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

...and much more!

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and which must be depreciated.

Similarly, the cost of incidental repairs is typically deductible. The regulations state that the cost of incidental repairs that neither materially add to the value of the property nor appreciably prolong its life, but keep it in an ordinarily efficient condition, may be deducted as an expense.

Quite frequently, new additions are made to existing property. These additions are not replacement components nor are they repairs to property, but are instead newly installed components. These additions are required to be capitalized.

At other times, replacement parts or components are added. For example, a car’s engine is worn out and replaced. This replacement returns the car to its condition prior to the deterioration of the part. It would be logical to consider this replacement as an increase in the car’s value requiring capitalization. Conversely, it would also make sense to say that by returning the car to its prior condition, it had been repaired.

Under this theory, all repairs would be deductible, no matter how substantial they might be.

The above interpretation renders meaningless any distinction between a deductible business expense and a capital expenditure.

Thus, it is oftentimes insufficient to merely look at increased value as the determining factor for characterizing the replacement of a part or component. An increase in value is only one of many factors that must be considered to determine deductibility or capitalization.

CHANGES, WE HAVE CHANGES The new regulations are the IRS’s third attempt to provide comprehensive guidance under the repair-or-capitalize rules. They attempt to answer such questions as how to treat environmental remediation expenses and how to treat rotatable spare parts used in repairs. One significant rule change allows a laundry owner or operator to deduct retirement losses for building components.

If, for example, the laundry operation replaces the roof on a building and disposes of the old roof, it now has the option of taking a retirement loss for the old roof. Of course, the replacement must be capitalized, but at least a retirement loss can be claimed.

Another change involves the “de minimis” expensing rule, a rule that allows a laundry business to expense or write off the 44

AMERICAN COIN-OP JULY 2012

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acquisition cost of property on his books for financial reporting purposes. This immediate write-off is available to a laundry business with a written policy in place to do that, but only up to a threshold or ceiling. The new regulations also include many types of materials and supplies among those eligible for the “de minimis” expensing rule. Under earlier rules they were not eligible, or only some categories were.

MATERIAL AND SUPPLIES As mentioned, under the new rules the costs of buying or producing materials and supplies remain deductible maintenance expenses in the year they are used or consumed. The cost of incidental materials and supplies, for which no record of consumption is kept, are generally deductible in the tax year in which they are paid.

However, while the timing rules for materials and supplies remain the same, the new rules provide a new definition. Materials and supplies may now be currently deducted as an expense if they are acquired to maintain, repair or improve business property owned, leased, or serviced by the laundry business, consist of fuel, lubricants, water and similar items that are reasonably expected to be consumed within 12 months, with an economic useful life of less than 12 months or costing less than $100.

Under an elective “de minimis” rule, amounts (other than inventory or land), along with amounts paid for any materials and supplies are not required to be capitalized. That is, the amounts do not have to be capitalized if the laundry operation has an applicable financial statement (such as one required by the Securities and Exchange Commission), a certified audited financial statement, written accounting procedures in place for treating the amounts as expenses on its AFS, and if the amounts paid and not capitalized are less than (1) 0.1% of gross receipts or (2) 2% of the total depreciation expense as determined in its AFS.

ACCOUNTING FOR REPAIRS AND REPLACEMENTS Every laundry business should have some way of tracking the equipment and other assets used in the business and their repair costs on a unit-by-unit basis. It’s unlikely that those repair costs can be tracked mentally. Increasing repair costs can be a strong indication that equipment is coming to the end of its useful life, or that the operation

has a “lemon” that will continue to suck cash.

Generally, it is useful to maintain a spreadsheet listing the purchase date, identifying the equipment and then listing repair or maintenance costs, along with a brief description of the work performed. It becomes easy to then determine which units or models are racking up the costs.

Thanks to the new rules, the owners and operators of many laundry businesses may discover that they will have to modify how they account for expenditures, as well as collecting information necessary to determine whether these expenditures are capital or alternatively currently deductible in the year that they are incurred.

Typically, if a repair cost were not deductible in the year incurred, it would be capitalized and depreciated. If, for example, a laundry owner or operator had equipment or a machine and performed a “capitalizable” repair on it, that additional repair cost would be capitalized and depreciated over the appropriate recovery period for tax purposes. If it were a deductible repair cost, obviously the laundry operation would benefit from a deduction up front in the tax year incurred.

While awaiting the IRS’s guidelines for implementing the new regulations, it is already obvious that many store owners will need to implement the changes for the 2012 tax year. Whether the IRS will treat the changes required under the new regulations as automatic accounting method changes, and whether affected laundry businesses will be required to obtain approval for a change in accounting methods, are, as yet, unknown.

The sheer volume of the new rules on deduction vs. capitalization of tangible property costs will obviously require professional assistance. Now is a good time to seek such help. While it’s not urgent, now might be a good time to begin looking at repair and maintenance costs for 2012. ■ Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult a tax adviser for advice regarding your particular situation.

Mark E. Battersby is a freelance writer who has specialized in taxes and finance for more than 25 years. He is based in Ardmore, Pa. www.americancoinop.com

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ADVERTISERS’ INDEX Advertiser

Page

Advertiser

Page

AC Power ...................................................................... 33

Mountain Electronics ................................................ 36, 46

American Dryer Corp. (ADC) ........................................ 15

NATCO............................................................................45

American Switch.............................................................. 47

New England Coin Laundry ............................................41

Card Concepts..................................................................21

New York Laundry Equipment ...................................... 39

Coin-O-Matic ..................................................................37

NIE Insurance .................................................................. 9

ESD Inc. ............................................................ 24, 25, BC

PWS .......................................................................... 12, 13

First Line ..........................................................................35

R&B Wire Products ........................................................ 1

Gold Coin Laundry Equipment ...................................... 19

Royal Basket Trucks ........................................................36

Great Lakes Commercial Sales ...................................... 46

Setomatic Systems.......................................................... IFC

HHC Electronic Service .................................................. 47

Speed Queen ............................................Insert Supplement

Huebsch ........................................................FC, 27, 29, 31

Super Computer Boards .................................................. 46

Laundry Concepts .......................................................... 23

Vend-Rite .................................................................... 5, 47

LG .................................................................................... 3

WashCard Systems .......................................................... 22

Maytag Commercial Laundry .......................................... 7

Wells Fargo Insurance Services ...................................... 11

Monarch Coin & Security .............................................. 17

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

www.americancoinop.com

JULY 2012

AMERICAN COIN-OP 45

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CLASSIFIEDS

EQUIPMENT FOR SALE

ELECTRONIC REPAIRS

BEARINGS DIRECT LAUNDRY SYSTEM Queens NY 718-468-1119 / 917-678-2095

DIRECT LAUNDRY SYSTEM 98-47-212 St, Queens NY 718-468-1119 / 917-678-2095

Commercial & Industrial Bearing Job & Repairs NY NJ CT PA Area.

Laundry Equipment Parts Repairs Bearing Job Over 20 Years’ Experience.

W 184 W 125 W 74 HC 20 HC 30 HC 50

W 185 W 125 W 75 W 184 W 124 W 74 JT0300 JT32DG

$500.00 $375.00 $250.00 $275.00 $325.00 $500.00

No one done more Bearing Jobs than us, Count on Experience.

$3000.00 $1700.00 $900.00 $2800.00 $1600.00 $800.00 $1800.00 $1500.00

Lots of Washers, Dryers, Motors, Baskets, Gas Value, Computers, Doors, Front & Side Panels etc.

20 Years’ Experience Florida & Georgia area VICTOR @ 321-946-9890

Washers comes with 2 Years Bearing, 1 Year Limited Parts & 90 Days Service in the NYC and Tri-State Area.

BUSINESS OPPORTUNITIES V E N D I N G M A C H I N E S A L E S —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, 800917-VEND. w w w. v e n d i n g p r i c e l i n e . c o m

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

Coin Laundry, Building, Equipment, Upstairs Apartment. Northwestern Wisconsin Island City.

Retiring. $115,000. 715-822-2760 DEXTER EXPRESS LAUNDROMAT BUSINESS FOR SALE IN EASTERN NORTH CAROLINA. PHONE 910-549-4693

Many Brand Names not listed.

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EQUIPMENT WANTED EQUIPMENT FOR SALE

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REPAIRS Repair Front Load WASHER Bearings.

Call Tony P. 516-805-4193

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Dexter, ADC, Speed Queen, IPSO, Wascomat, UniMac, Primus & more Timers and Ignitors Repaired!!!

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SERVICES AND SUPPLIES

SERVICES AND SUPPLIES

SERVICES AND SUPPLIES

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Door Lock $ 6 8 • Gen 5 & 6 Timer $ 8 5

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Gen 4 Timer $ 7 5 • Continental Timer $ 8 5

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• American • Dexter • • Easy Card, ESD • • Huebsch • Speed Queen •

HHC

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14844 Las Tunas Drive, Hacienda Hts., CA 91745

626-961-8678 • 800-820-9888 E-mail: hhc168@hotmail.com

ADC Stack $ 6 0 • Single $ 4 5 Huebsch SQ Board $ 4 5 Huebsch Old Style Board $ 5 5 Stack Dexter/Continental $ 6 0 Wa s h e r C o i n B o a r d s $ 5 5 S o m e p r i c e s m a y v a r y!!!!

JECON INC. S U I T E 2 7 2 , 1 1 0 6 4 Q U E E N S B LV D .

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ADC 137213 / 137234 . . . . . . . . . . . . . . . .$65.00 Igniters . . . . . . . . . . . . . . . . . . . . . . . . . . .call Dexter VFD Inverter (Delta Motor Control) All Models (9375-xxx-xxx) . . . . . . . . . . . . .call Stack Dryer . . . . . . . . . . . . . . . . . . . . .$65.00 Coin Accumulator . . . . . . . . . . . . . . . .$55.00 Maytag Computers . . . . . . . . . . . . . . . . . . . . .$65.00 23004118 . . . . . . . . . . . . . . . . . . . . . . . . .call W10343020 . . . . . . . . . . . . . . . . . . . . . . .call 33001129 . . . . . . . . . . . . . . . . . . . . . .$85.00 Motor Control . . . . . . . . . . . . . . . . . . .$55.00

O n e - Ye a r Wa r r a n t y o n A l l P a r t s Send Core Unit with S&H Fees C a l l To l l F re e : 1-888-532-6677 (888-JECON77) L o c a l : 718-525-3733

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Any questions call Ernie at (607) 798-7704 Mastercard and Visa accepted Send your computer to: D&E Dept. 1 1724 Hawleyton Rd. Binghamton, NY 13903 www.dryercomputers.com

Speed Queen / Huebsch Computers . . . . . . . . . . . . . . . . . . . . .$65.00 Motor Control . . . . . . . . . . . . . . . . . . .$55.00

All Gold Medal parts are 50% off while supplies last.

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WA S H E R A N D D R Y E R C O M P U T E R BOARDS REBUILT I g n i t e r s re p a i re d Washers: $60 - & up Dryers: $35 - & up Igniters: $20 - & up R e b u i l t Ti m e r s - Wascomat, Huebsch, Speed Queen, IPSO, Laundry Center, Maytag Call for exact price which includes f re e re t u rn s h i p p i n g M E T R O L A U N D R Y T E C H C O R P. 253 East 204th Street, Bronx, NY 10458 O N E - Y E A R WA R R A N T Y O N A L L R EPAIRS Please call 718-742-4137 Or 718-733-4313 Or Visit our website at www.metrolc.com email us at metrolc@hotmail.com JULY 2012

AMERICAN COIN-OP 47

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NEWSMAKERS

SUPER LAUNDRY ACQUIRES RAF EQUIPMENT CO. Super Laundry Equipment Corp., which says it is the country’s largest distributor of coin and on-premise laundry equipment, has expanded its presence in New Jersey by acquiring RAF Equipment Co., based in Nutley, N.J. Terms of the acquisition were not announced. The deal solidifies Super Laundry’s expansion in New Jersey and the Tri-State area, the company says.

“With over 55 years of experience, RAF understands that integrity and a core belief in quality service are critical to customers,” says Mike Stanky, COO of Coinmach Corp. “With our shared business values, the critical focus on the customer, and our superior purchasing power, the combination of RAF and Super Laundry will position us as a market leader for years to come.”

RAF and Super Laundry will combine their operations in Linden, N.J., where Dick Luca will head the combined firm.

“Super Laundry will be a great partner going forward,” says Raymond Fusco Sr., president of RAF Equipment. “I have worked with Dick over the last 30 years, and we both know that taking care of customers and our employees will be critical as our partnership moves forward.

“My son, Ray Jr., and I look forward to carrying on this dedication to customer service and industry expertise.”

N.C. LAUNDRY CELEBRATES 26 YEARS IN BUSINESS Family-owned and -operated Willow Creek Laundromat, Carrboro, N.C. recently celebrated its 26th year of serving the Chapel Hill and Carrboro area.

“Twenty-six years is a major milestone for any local business,” says Pat Nelson, who started the company with her husband Charlie in March 1986. “Our goal is to provide a clean, bright environment for out-of-town visitors, local residents, and for those who want the convenience of large-capacity washers and dryers.”

The 2,500-square-foot attended store in the Willow Creek Shopping Center is large enough to accommodate large, modern self-service laundry equipment plus work areas with plenty of elbow room. Willow Creek Laundromat has made three strategic upgrades over the last five years, including replacing laundry equipment and adding free Wi-Fi service.

Its loyal customer base and a successful wash-dry-fold service catering to residents and visitors with busy schedules will make the next 26 years even more rewarding, Nelson says.

“We have been told that folks like us because they can start the washer and then grab a bite at one of our restaurants, then transfer their clothes to a dryer while they shop for the week at Food Lion,” she says. “They like the fact that they can do more than just their laundry here.”

COMPANIES TEAM LAUNDRY MONITORING SYSTEM WITH ELECTRONIC LOCK Mac-Gray Corp. is teaming its LaundryView laundry room monitoring system with Medeco’s NEXGEN XT electronic lock to 48

AMERICAN COIN-OP JULY 2012

provide dual security for washer and dryer coin boxes and laundry card add-value stations.

The system virtually eliminates the risk associated with unauthorized use of keys, the companies say, and also provide clients subscribing to the service with reporting on all collections and attempts to access coin boxes or money vaults.

“We make a large investment in security and our decision to partner with Medeco in the deployment of their NEXGEN XT electronic lock has been based on a careful analysis by our Strategic Insight Group on its benefits for our clients,” says Stewart MacDonald, Mac-Gray’s CEO. “Combining it with our LaundryView monitoring system adds unparalleled security to the industry’s most transparent financial reporting.”

Mac-Gray will connect its proprietary system with Medeco software to centrally manage coin and cash collections on a secure website. In conjunction with the electronic locks, the system enables complete control of all connected locks and the ability to audit, control and report on all activity associated with the locks.

“We are excited to work with Mac-Gray and bring our two technologies together,” says Mark Imhof, director of Engineered Security Solutions for Medeco. “Their vision for protecting their customers’ financial interests fits well with the benefits provided by our NEXGEN XT system, and their initiative to provide security and transparency through the LaundryView system is unique in their industry.”

INSURER SAYS FAILURE TO PLAN PUTS BUSINESSES AT RISK Are you prepared should a natural disaster strike your coin laundry? Would it be safe to be in your store? If you run an attended store, what do your employees think of your preparation?

An overwhelming majority of Americans do not feel their employers are well prepared for, or might not recover quickly from, a natural disaster, according to research reported by property insurer FM Global.

The firm’s Business Risk Pulse Check finds 75% of U.S.-based workers feel their employer is not well-prepared for a natural disaster, and 72% of those polled would not feel totally safe in their workplace during such an event. Additionally, the study finds 71% of U.S. workers are not fully confident their employer could bounce back quickly. The survey comes on the heels of a record year for natural disasters in 2011.

The research, commissioned by FM Global and conducted by global research firm TNS, polled more than 1,300 U.S. workers nationwide to gauge perceptions about natural catastrophe-related risk in the workplace.

“Business resilience is more than just about getting back on your feet, it’s also about doing the right things to make sure you don’t get knocked down in the first place,” says Jon Hall, executive vice president, FM Global. “The findings demonstrate how critical it is that business leaders better prepare for natural disasters and ensure those efforts are understood within the workplace.”

■ www.americancoinop.com

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