American Coin-Op - January 2013

The Elements of Being Customer-Friendly I N S I D E :I NJ SUI LDYE : 2 0J A0 N5 U A R Y 2 0 1 3 FRONT LOADERS PRODUCT SHOWCASE

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CONTENTS JANUARY 2013 VOLUME 54 ISSUE 1

THE ELEMENTS OF BEING CUSTOMER-FRIENDLY

COVER STORY

FEATURES 18 PRODUCT SHOWCASE:

It stands to reason that customer-friendly stores—those that are welcoming, bright, and offer a sense of security, for example—have a better chance of drawing business than a dark, dirty and run-down store.

8 COLUMNS 22 HOW TO HANDLE A TAX AUDIT Don’t panic, advises Howard Scott, but do organize your records. Make sure you can back up every figure on your tax return. That means making copies, updating logs, and putting everything in sequential order. If the books aren’t in order, get them in order.

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DEPARTMENTS 4 6 26 28

VIEWPOINT INDUSTRY SURVEY PRODUCT NEWS WEB UPDATE

28 AD INDEX 30 CLASSIFIEDS 32 NEWSMAKERS

Cover Image: © iStockphoto/Scott Griessel

22 A CLOSER LOOK Using round numbers for a washer purchase —$5,000 instead of $4,959—hints that you’re not paying attention to figures.

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editorial Charles Thompson, Publisher E-mail: cthompson@ americantrademagazines.com Phone: 312-361-1680

Bruce Beggs, Editorial Director

rebuilding after sandy

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

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

Advertising industry stands ready to help damaged stores recover Hurricane/Superstorm Sandy wreaked havoc along the East Coast just a few days after our final 2012 issue went to press.

The industry responded to the storm in short order. Alliance Laundry Systems, Laundrylux and Dexter Laundry announced special purchase programs for storm-impacted laundries. American Dryer Corp. sent a team of technicians to areas in dire need while increasing production and building extra inventory to ensure equipment and parts would be readily available.

Bruce Beggs If your coin store suffered damage from Sandy, be sure to contact your local distributor or equipment manufacturer to see how they can assist. Offerings vary by company, so call to get the details: • Alliance Laundry Systems: Contact Metropolitan Laundry Machinery (Huebsch distributor) at 800-214-9200 or 800-214-9300 in New York or 800-728-0001 in New Jersey, or Super Laundry (Speed Queen distributor) at 888-678-9274 in New York or 800-992-7269 in New Jersey.

• Laundrylux, distributor for Wascomat and Electrolux: Call 800-645-2205; program is available in Connecticut, Delaware, District of Columbia, Maryland, Massachusetts, New Jersey, New York, North Carolina, Pennsylvania, Rhode Island, Virginia and West Virginia.

• Dexter Laundry: Call Dexter Financial (800-926-8230) or Dexter Laundry (800-524-2954) to be connected to an authorized distributor in your area.

I’d like to hear from those of you impacted by Sandy, just to see how you’re doing, so give me a call or drop me a line. You remain in our thoughts and prayers.

Bruce Beggs Editorial Director correction The following company was mistakenly omitted from the 2012 Distributors Directory published in October. American Coin-Op regrets the error.

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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 54, number 1. 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, 2013. Printed in U.S.A.

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INDUSTRY SURVEY

NEARLY 68% OF LAUNDRY OWNERS REPORT BETTER BUSINESS IN 2012 More than two-thirds of self-service laundry owners and operators polled in the last American Coin-Op Wire survey of 2012 said their business was better (“much better,” 18.6%; “somewhat better,” 48.8%) in 2012 than it was in 2011.

Roughly 28% said their business was better than they had expected, while another 51.2% said it was about what they expected. The remaining 20.9% of respondents said their business was worse than expected.

Operators whose business increased attributed it primarily to installing new equipment (50%), a larger customer base (34.4%) and/or raising prices (31.3%). Better marketing efforts (25%), lowering costs/expenses (18.8%), offering new extra services (18.8%), and decreasing competition (15.6%) were other important factors. (Respondents could choose from any or all among several suggested factors or offer their own.)

Among respondents who said their business worsened in 2012, a declining customer base and increasing costs/expenses were the biggest reasons, each selected by 45%. (Again, respondents could choose from any or all among several suggestions or offer their own.) Following closely was customers cutting down on the number of visits, cited by 40%. Other significant factors were competition cutting into business (20%), “other” (20%), and lower extra-service income (15%).

Roughly two out of five operators (41.9%) said they raised washer and/or dryer prices in 2012.

Finally, respondents were asked how they would grade their 2012 management performance. Approximately 47% gave themselves a B, and another 27.9% gave themselves an A. Roughly 19% said they only deserved a C, while the remaining 7% were 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 read other Wire survey stories, visit AmericanCoinOp.com 6

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The Elements of Being

Customer-Friendly

By Bruce Beggs, Editorial Director

H

ow would your customers describe your coin laundry? Would they say it’s dependable?

Clean? Secure? Comfortable?

How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s seen as dark, dirty and rundown.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturer reps and distributor reps this month and asked them for their analysis of the elements of being customer-friendly.

Q

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So, what does being “customer-friendly” mean in the context of running a coin laundry?

Karl Hinrichs, president, HK Laundry Equipment: The basics of a “Customer-Friendly Laundromat” are clean, bright and safe, and are equipped with reliable, high-quality machines.

These are the basic minimum requirements. However, in today’s world, owners should go above and beyond. Many Laundromats have added attractive décor that caters to their customers, like earthtoned colored walls with trendy art and clocks, comfortable

seating with tables, entertainment that includes free Wi-Fi, high-definition flat-screen TVs, magazines, and even children’s lounges that offer video games and computers.

Dave Phillips, national sales manager, IPSO: A customerfriendly store is one that is owned by someone who lives and breathes good customer service. And because of this, people want to come to their Laundromat and do laundry.

The owner will monitor and be aware of and adapt concepts and ideas that customers want in a Laundromat to make sure the customers’ experiences are positive.

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Customers and especially families are looking for a clean, well-lit environment where they feel safe for themselves and their children. They look for ample parking, and sliding doors that make it easy to enter and exit with big baskets of laundry, and plenty of equipment that’s available when they need it.

Dan Bowe, national sales manager, Speed Queen: The most customer-friendly stores are attended. When owners make the investment in good employees, they help elevate the customer experience.

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position and enjoy what they do. Since attendants represent the store, they should be wellgroomed, and greet customers, thank them for their business, help carry laundry out to cars if customers need assistance, and be there to answer general questions when they arise.

Ken Hebert, Deep South Laundry Systems: Being customer-friendly is defined by understanding your customer base and providing them with the environment/equipment they need to simplify their laundry time.

Photo: © iStockphoto/quavondo

Q

What responsibility does an owner have for making his or her coin laundry customerfriendly? What responsibility does a manager and/or attendant have?

Bowe: Customer friendliness starts with the management. If you don’t position your business to cater to your customers, you won’t be as successful as you hoped. Employees follow the examples management sets, so it’s essential that good customer service is an integral part in the business’ philosophy.

Steve Koumaras, owner of four coin stores in Pennsylvania: Customers need to understand that although my stores aren’t staffed, the lines of communication are open. I have a way for customers to leave comments and suggestions, and I provide a phone number where I can be reached. If I miss a customer, I call them back and talk through the comment or problem with them. As an owner, I have to be customer-focused to really succeed in this business.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: It is imperative managers and attendants keep the store clean at all times.

My attendants know it is a fundamental part of their jobs to pick up trash, clean up any detergent spills, etc. Also, it is our responsibility to main10

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tain the equipment, check lint trays and ensure the washer and dryer drums are clean for the next customer.

David Cabral, vice president, New England Coin Laundry: An owner should always want the customers that visit his/her laundry to feel welcome and comfortable. You can’t simply assume your customer feels safe and welcome. You need to make sure first-hand.

Kirchner: Managers and staff play an important role in attracting and maintaining a customerfriendly laundry. They need to work regularly to keep stores clean and attractive, handle maintenance issues or down machines immediately, and keep the store a pleasant place to do business and for customers to visit.

Hebert: Owners are responsible for choosing the right location and equipment mix.

They are also responsible for regularly updating/replacing paint, equipment, signage and furniture. ... The manager is responsible for keeping the equipment running and (for) handling customer suggestions/ complaints. The attendant is responsible for keeping the Laundromat clean and inviting.

friendly by addressing the following: Exterior Appearance and Signage Phillips: A store with glass frontage is more customerfriendly than one without.

Customers appreciate being able to see through the windows before entering the store, especially at night.

It is important that the ingress/egress area and even the parking lot receive the same attention as the interior of the store. It should be clean, welllit and provide ample parking spaces. As for signage, it should be lighted, simple and easy to read from a distance with no obstructions, and have colors that attract potential customers’ eyes to it.

Kirchner: Having an external sign that features services your location offers can be a great asset to encourage new and potential customers to come inside.

[

Q

Please describe how a store can be made customer-

The exterior of the store should convey a clean, safe and inviting laundry.

Hinrichs: The Laundromat’s exterior and signage is where owners will advertise the store’s identity, strengths, and serve as a consistent reminder to the community that the Laundromat is available for their use.

Cabral: The exterior of the store should convey a clean, safe and inviting laundry. If the interior is the best in the industry but the exterior looks less than safe or inviting, it will never matter how wellmaintained the interior is.

Days and Hours of Operation Fernandez: A store’s hours of operation should be determined based on customers’ needs. To be the most success-

ful, a store needs to be open when its customers have time to do their laundry, which isn’t necessarily between 8 a.m. and 6 p.m. Initially, Mily’s Place was open from 6 a.m. to 11 p.m. After watching traffic patterns, I noticed a need to be open later and so we opted to extend the store hours. Now, we are a 24/7 operation, and the response has been extremely favorable.

Dawn Nagle, marketing director and VP of creative services, Laundrylux: Know your market. If your customers work shifts or need to come in early or late, make sure you are open to meet the needs of your community. Also, program special pricing and offers for slow days of the week and odd times to encourage customers to come when it’s not busy.

Bowe: This really depends on your demographics and market; however, the average Laundromat is open from 6 a.m. to 11 p.m. But if the store is located in a college market, it should be open 24 hours a day, which will cater to the demographic.

Parking and Access Kirchner: Make sure that you have ample parking to accommodate customers on the busiest day. If your parking lot is full, customers may pass by your location to go to another store that has available parking. ...

Store entrances not only need to be handicapped-accessible, but they need to allow for large laundry carts to move in and out of facility without struggling.

Phillips: A dedicated parking lot or spaces, preferably offstreet, are very important. No owner wants their customers to have trouble finding a parking space or fighting traffic to access the parking lot.

Fernandez: Ample parking is one of the most important aspects for a store. In addition

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to parking, a clean store front store is critical. If your store is should be free of trash and wide dirty, not maintained, has old enough for laundry carts and rusty machines, soap on the baskets to easily enter and exit. floor or machines don’t shine, your customers will go someCleanliness and Décor Hinrichs: A Laundromat where else.

Hebert: The décor should be can never be too clean. Make sure the store is cleaned clean and simple. The color of at least twice a day, which the walls needs to be soothing should include sweeping, mop- and inviting – repaint if necesping floors, cleaning out lint sary. Indoor signage needs to be traps and washing windows if limited, simply stated and not there are fingerprints on them. negative. If all your customers Bathrooms should be well see is “No” or “Don’t,” they maintained and stocked full of won’t use your Laundromat in necessities such as toilet paper, the future. soap, and paper towels or a working electric hand dryer. The store should also be spruced up at least once a year, especially if it has white walls. A fresh coat of paint or replacing carpet or tiles and worn furniture can make a sigKirchner: Simple things like nificant positive impression to updating lighting, adding mircustomers.

0812aco_Wells Fargo 7/17/12 3:46 PM or Page 1 coat rors or pictures, a fresh Nagle: A clean, comfortable

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of paint can make a world of difference with a small expense.

Equipment Selection and Reliability Phillips: Equipment should be commercial quality and built to last. When selecting a distributor to purchase equipment, they should be factorytrained in order to provide the best service should owners have any issues, and the equipment should be easy to service.

Hinrichs: When selecting equipment, make sure to partner with a quality distributor that offers durable, reliable equipment that is built to withstand use in a 24/7 Laundromat operation.

Some manufacturers market the home-style machines as commercial laundry equipment. Laundromat owners find out all too soon that the machines are not built for heavy-duty operation. This causes them to spend

]

more money in the long run on repairs and replacement equipment, and has the potential to cause customers to choose other Laundromats that don’t have machine reliability issues.

Nagle: Reliable, quick machines can make the difference between whether a customer chooses your store or another. ... You must choose professional equipment designed to take the abuse of a Laundromat.

Pricing and Cycle Times Phillips: A store owner should survey the competitive stores in the area to learn pricing and what additional services are or are not offered. Vend prices do not need to be the lowest. However, they do need to be competitive. Prices should reflect the owner’s commitment to providing a customer-friendly environment, clean and welllit store, new equipment, and other additional services that are provided.

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Cabral: Typically, a washer will have a cycle time close to 30 minutes. Shorter cycle times are popular because of the need for most customers to move in and out quickly. Pricing or vending should always take into account the value provided and the costs associated with the service.

Bowe: With the right control platform, store owners can offer customers the ability to customize their cycles for an additional fee. ... The customers choose which options they want to use, which makes them feel like they’re in control of their laundry. Not only is this customer-friendly, but it also generates additional profits for the owner.

Q

Does an attended store automatically have an advantage over an unattended store in being customer-friendly?

Hinrichs: Definitely – there’s no doubt about it. If you have

a good attendant, they’ll be an asset to the store because they can immediately address any issues or problems. Some of the better-managed stores have attendants who are trained to really help the store. For example, some Laundromats offer a feature called “Mother’s Little Helper,” where the attendant will move the laundry from the washer to dryer. This allows the customer to take longer shopping errands and complete shopping and laundry at the same time.

Kirchner: Both attended and unattended stores can be successful and customer-friendly if owners take care of the basics and make sure their stores are well maintained.

Fernandez: An attended store has a distinct advantage in being customer-friendly. In addition to 24/7 attendance, we have security cameras throughout, and I’ve arranged for the

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Should a store owner poll his or her customers to determine what they like or don’t like about the store?

Kirchner: Not sure what your customers are looking for?

Ask them! Offer a suggestion box and hold a contest where submissions can enter to win a prize like free detergent, free washes, etc. You might just get some great ideas!

Fernandez: The best way to obtain honest feedback is via a suggestion box. Provide customers with the opportunity to anonymously make recommendations or respond to a specific question. This ensures more honest feedback, and it

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Hinrichs: Yes. There’s no downside to surveying your customers. It gives the owner an opportunity to correct any issues that might be occurring and enhance customer satisfaction. Customers like to be asked their opinion.

Phillips: Feedback from customers is always good, and I would suggest a personal approach. It offers the owner an opportunity to get to know the customers and to perhaps instill a sense of community.

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Owner Deechen Horton knows that the versatility of the ESD payment system has attracted many new customers into her laundry. The ESD reports that track the card and coin income from each individual machine give her exactly the information she needs, and the reliability of the ESD LaundryLink® software is exceptional.

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PRODUCT SHOWCASE

FRONT LOADERS

ELECTROLUX

E

Huebsch

lectrolux offers a full range of solid- and softmount equipment designed with the latest technology and money-, water- and energy-saving features, the company says.

The Electrolux 20- to 77-pound S-Model 200 G-force washers, distributed by Laundrylux, are engineered with single-phase electrical power for lower installation costs.

With Electrolux Professional’s 18- to 75-pound H-Model 350 G-force soft-mount washers, the company offers a Laundromat owner shorter dry times and more gas savings. Electrolux store owners report a 9% to 11% reduction in utility costs, says Laundrylux, and lower construction costs as well.

Electrolux washers come standard with AWS (Automatic Water Savings), which can offer a savings of up to 30% on small wash loads. AWS determines the weight of the load and adds precisely the right amount of water, reducing water consumption and energy costs.

Another standard feature is the multilingual Compass Control, allowing an owner to customize wash parameters such as water levels, temperatures and drum action, as well as prices. laundrylux.com 800-381-7222

uebsch recently announced an expansion to its washer-extractor product line, adding the HCN100, a 100-pound front-load washerextractor with eBoost™ technology for vended laundry owners.

The large-capacity washer-extractor takes up the same amount of room as an 80-pound machine, the company says, making the HCN100 an easy replacement.

Huebsch’s new eBoost technology also is available on the HCN100, allowing the machine to use 33% less electrical energy and 11% less water than two-speed models. The technology also includes patented Water Guardian leak detection, which detects leaks in both the drain and fill valves, eliminating wasted water and resources.

With the Galaxy™ 600 control, Laundromat owners are able to set multi-level vend prices, tailor wash cycles, and combine with a card payment system.

Owners can retrieve machine data using a PDA or laptop with Galaxy 600. Easy programming and information retrieval provides owners the tools to manage multiple Laundromats, Huebsch says. huebsch.com 800-553-5120

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Its 9.0-cubic-foot cylinder volume allows

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for oversized loads, and it offers a stainless steel cabinet design, easy-to-use controls, and a comfortable door handle. The MCR27E5 also comes with pre-programmed formulas. milnorcoin.com 504-712-7656

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American Dryer Corp. (ADC)

A

merican Dryer Corp. (ADC) recently introduced a line of commercial washers, EcoWash. The energyefficient machines are available in 25-, 30-, 40- and 60-pound capacities, and they are offered in 200-G-force rigid-mount and 350-G soft-mount designs.

The 200-G rapid-spin and 350-G high-spin washers provide efficient wash cycles while also reducing dry times by as much as 15% with the high-speed extract, the company says. Saving water on the wash cycle and time on the dry cycle allows a Laundromat to operate as efficiently as possible, increas-

ing turns and lowering utilities to improve revenue.

EcoWash also features Intuitive Micro Controls (IMC®), a programmable microprocessor that is customizable, easy to program and easy to use. An owner can simplify existing programs, modify or delete the times of each phase of the cycle, as well as modify the water level to achieve maximum savings in a Laundromat, ADC says. Multi-vend pricing capability and extended cycle options also are available. amdry.com 508-678-9447

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IPSO

I

PSO calls its IWF055 washerextractor an ideal machine for vended laundry owners.

The IWF series of washer-extractors offers 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 help reduce utility costs. Each machine is equipped with an inverter drive that allows for a gradual ramp-up in speed, eliminating a large electrical current draw experienced by traditional motors when powered up.

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The washer-extractor’s welded channel iron construction ensures a strong base.

In the event the washer-extractor requires service, technicians can easily access most components from the front and top, allowing for quicker repairs and a reduction in down time, IPSO says.

The Micro-20 control offers multi-level vend pricing; it also has nine factoryprogrammed cycles, as well as audit and diagnostic capabilities. ipso.com 800-872-4776

January 2013

American Coin-Op 19

12/19/12 8:21 AM

PRODUCT SHOWCASE

Continental Girbau

C

ontinental Girbau’s ExpressWash high-performance washer-extractors are designed to help Laundromat owners reduce gas, water and energy consumption. Available in 20- to 90-pound capacities, ExpressWash washers are freestanding, energyefficient, and easy to install and program, the company says.

ExpressWash machines, according to Continental, consume less water than traditional front-load washers and offer high-speed extract reach-

ing up to 381 G-force. As a result, more water is removed from each load, reducing drying time by as much as 50%.

The machines also can cut the time required to wash, dry and fold a load of laundry to 60 minutes or less, the company says.

ExpressWash washers can be installed without bolts and special reinforced concrete foundations. This expands location possibilities, including some wood floor

WASCOMAT

W

ascomat offers a full line of energy- and water-saving equipment ranging from 20-pound to 80-pound capacities and distributed by Laundrylux. These include the 65- and 80-pound EXSM-model 300- and 220-G-force washers, with heavy-duty, maintenance-free construction.

This model is designed for demanding environments and large loads, Laundrylux says, and offers a highspin cycle for fast drying and lower energy costs.

The multi-lingual (offering a twolanguage display) Compass Control enables a Laundromat owner to customize wash programs for any situation.

The W-model 100-G washer, with 20 to 77 pounds in capacity, combines reliability, programmability and years of service, according to the company. The model offers a single-phase electrical system for low installation costs, and it is easy to use and easy to program. laundrylux.com 800-645-2205

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locations and second-story laundries. continentalgirbau.com 800-256-1073

Speed Queen

S

peed Queen’s Horizon front-load washer, equipped with the Quantum™ Gold control, now comes in a stainless steel option.

The Horizon washer is an ENERGY STARrated product. It features a large door opening of 15.5 inches in diameter and a 180-degree door swing to help customers load and unload the machine. Plus, the Horizon’s 2.84-cubic-foot cylinder delivers a larger capacity.

The Horizon easily fits in the same footprint as a top-load washer, and if the machine is intended to replace a top-load model, it offers a seamless install with pump or gravity drain.

When equipped with the Quantum Gold control, the Horizon helps to reduce water consumption to just 12.8 gallons per cycle. In addition to water efficiency and advanced programming, the Horizon’s 1,000-RPM spin speed, exerting 300 G-force, and the 5,499 perforations in the wash cylinder help remove more water from loads to help customers reduce drying times, Speed Queen says.

Quantum Gold’s audit and diagnostics, cycle modifier pricing options and time-of-day pricing capabilities provide tools for owners. The Quantum Gold control also comes with a networking option. speedqueen.com 800-590-8872

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www.americancoinop.com

12/19/12 8:21 AM

Dexter Laundry

D

exter Laundry’s 200-G-force Express washers are available in 20-, 30-, 50- and 60- pound capacities, and the company is now offering a 90-pound-capacity washer as well. Dexter’s 100-G-force washers are available in 20-, 30-, 40-, 60- and 80-pound capacities.

Dexter says its washers offer Laundromat customers top cleaning performance and user-friendly features like extra-large loading doors and easy-to-

use front-mounted supply dispensers on all 60-pound models and larger.

The entire line is designed to be energyefficient, and the high-speed extraction reduces energy costs by reducing drying time, Dexter says. A variable frequency technology delivers up to a 60% reduction in electrical power consumption.

To minimize water usage, Dexter washers feature a “sump-free” outer

tub design, and the large doors ensure that customers still see adequate water in the machine.

All washers are computer-controlled, which Dexter says offers more reliability and greater programming flexibility.

Store owners can easily utilize such features as time-of-day pricing, and available software allows owners to program Dexter washers using a handheld computer, adjusting all cycles, water temperatures and pricing to an owner’s specifications. dexterlaundry.com 800-524-2954

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Maytag Commercial Laundry

M

aytag® Commercial Laundry offers coin laundry operators a line of multi-load, soft-mount coin washers, available in 18-, 25- and 35-pound models.

The washers are easy to install and operate, and each features high-speed extraction of up to 350 G-force to help save energy usage and drying time.

The soft-mount suspension system helps eliminate the need for machine bolt-down, so no special floor depth is required. Additionally, a

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heavy-duty latch and tough cabinet and frame add to the machine’s durability, Maytag says. Flexible installation helps laundry owners save installation cost and time.

The advanced Maytag microprocessor control offers a large, easy-to-read LCD graphic display with multilingual controls. maytagcommerciallaundry.com 800-662-3587

January 2013

American Coin-Op 21

12/19/12 8:21 AM

AN OUTSIDER’S VIEW

HOW TO HANDLE A TAX AUDIT You can’t afford to be disorganized when it comes to the IRS

Howard Scott

You open a letter from the IRS: You are being audited. A shock goes through your body. Your hands begin to shake. The timing couldn’t be worse.

You’ve got a half-dozen projects going on. “Why me?” you ask. Then your mind pictures what it would be like to languish in jail.

Don’t panic. An audit doesn’t necessarily mean there is suspicion that you aren’t being forthright.

Furthermore, an audit doesn’t mean that you will have to pay a large bill. About 25% of audits result in dismissal. Satisfy the auditor and you probably won’t be bothered for many years.

Having said that, there could be cause for alarm.

If you are deliberately inflating expenses or understating revenue figures, the auditor will seek to discover these untruths. Reducing revenue is considered fraud and could result in criminal prosecution. Overstating expenses is bad, but one could argue that the books were messed up, the bookkeeper was incompetent, that the computer system malfunctioned, or that you just didn’t understand what was required.

The simplest audit is a correspondence audit, in which you’re asked to clarify one or two issues. Responding with a letter that includes proof backing your position will end the inquiry. Office audits require meeting with an IRS auditor.

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Most office audits specify areas of concern. Speak frankly to your accountant or CPA. Together, evaluate the magnitude of the audit. If it is over a few areas, and your books are in order, you might want to handle the matter yourself. If you prefer, your accountant can represent you. Of course, the accountant will want to be paid; his or her fee might run $3,000 to $5,000, between preparation time and representation. Any lawyer, accountant or enrolled agent can represent you, providing he/she did the taxes of that year’s return.

“I prefer to do all the talking,” says H&R Block’s Stuart Campbell, a long-time audit representative, “although I involve the client a bit to establish credibility.”

Organize your records. Make sure you can back up every figure on your tax return.

Organize your records. Make sure you can back up every figure on your tax return. That means making copies, updating logs, and putting everything in sequential order. If there is no backup, prepare a written explanation of the deduction. If the books aren’t in order, get them in order. This task involves a lot of work, but it will make you knowledgeable about your situation.

Do not go into the meeting acting like an angry bull or a fawning sycophant. Remember, you’re dealing with a human being. Be professional and business-like. Let the facts and figures do the talking. You’ll go over item by item. The auditor might say that an expense is disallowed. Do not argue. Go on with the proceedings.

Let’s consider a few examples. If you have no backup, come up with an explanation of why there is no documentation. For example, you remodel your wash-dryfold area, but do not have the receipt because the contractor disappeared after he was paid. The auditor might go along since it is a reasonable expenditure.

If your cost of supplies is significantly above the regional average, say 35% of revenue instead of 25%, prepare an analysis that explains the discrepancy. Water www.americancoinop.com

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in this community is high, my machines are old, I recently switched to gas so there are installation costs, I leave my lights on 24/7 to advertise, that sort of thing.

If you purchased an at-home computer for $1,400 that you say is for business use only but the auditor argues that computer use can’t be limited to business only and will only give you a $700 Section 179 deduction (50% of cost), don’t argue. Let the $700 go. He’s being a stickler. Don’t fight the small potatoes.

Don’t try to outsmart the auditor. Come clean with all major discrepancies up front, especially revenue figures. Most likely, the auditor has the proof in front of him in the form of bank statements.

Also, don’t ignore IRS letters. One operator who let the letters go resulted in the IRS assessing him $135,000 based on what it figured for his obligation. Divorce, bankruptcy and home

foreclosure followed.

At the end of the session, the auditor will add up the adjustments and disallowances and come up with an assessment. Any penalties and interest will be tacked on. It is possible to counteroffer, which is called an offer in compromise. The auditor will be more inclined to go along if you are close to insolvent. But you never know when he or she will be willing to bend.

You may challenge the assessment, dealing with an appeals officer, and then you may go to tax court. If there are legal points at stake, you might hire a tax attorney. On the other hand, it might be less stressful to swallow hard, pay the bill, and make sure you keep detailed books in the future. ■ Howard Scott is a long-time business writer and small-business consultant. He has published four books.

New Huebsch laundry equipment.

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■ Common Reasons for Audits • Round Numbers — Using round numbers—$5,000 for a washer instead of $4,959—hints that you are not paying attention to figures.

• Big Change from Last Year — If last year’s payroll cost was 13% and it rises to 25% this year, you need a good explanation of what changed. Auditors look for percentage shifts.

• Divergent Figures from Industry Standards — The reason you have to code your business—the six-digit number—is that you are being categorized with fellow operators. Auditors love to make comparisons. If your cost of doing business is much higher than the industry average, auditors will want to know why.

• High (Above the Norm) Audit Scores — The IRS has created a secret list of criteria, including low gross profit margin, high auto expense, high travel and entertainment, and little or no profit, upon which audit selections are based.

If your overall number is up, you risk being audited.

• Messy and Disorganized — A messy, hastily assembled return could tip auditors off that you aren’t very thorough.

You can’t be disorganized with it comes to the IRS. • Random Selection — Your business was chosen at random.

www.americancoinop.com

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JANUARY 2013

AMERICAN COIN-OP 23

12/18/12 11:33 AM

Book ’Em:

Photo: Alex Demyan and NewOrleansOnline.com

New Orleans Housing, Show Registration Now Open

A

By Carlo Calma

s the new year gets under way, those in the laundry and dry cleaning industry who are planning to attend Clean 2013 this summer can now register for the event and reserve their hotel room in the Big Easy.

Scheduled for June 20-22 (just three days this year instead of the traditional four) at the New Orleans Morial Convention Center, Clean 2013—officially the World Educational Congress for Laundering and

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Drycleaning—is touted as the world’s “largest exhibition of commercial laundry, dry cleaning and textile services equipment and ancillary products,” according to Riddle & Associates, the exhibition’s organizer.

Pre-registration for Clean 2013 is set at $99, with a deadline of May 31. After that date, attendees will have to register on site for a fee of $149 per person.

Attendees will have a valuable hands-on opportunity to learn about new products

and gather the latest information about industry trends, says John Riddle, president of Riddle & Associates.

“You will see the newest equipment, learn about new services, see working demonstrations and have access to outstanding industry education,” says Riddle.

“In today’s world of electronic communication, it is nice to have the opportunity to communicate with someone eye-to-eye, face-to-face, and talk with them about industry issues.”

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12/18/12 11:37 AM

In addition to product exhibitions by hundreds of companies, Clean 2013 will also play host to several educational sessions presented by the five major industry associations sponsoring the overall event.

The Association for Linen Management (ALM), Coin Laundry Association (CLA), Drycleaning & Laundry Institute (DLI), Textile Care Allied Trades Association (TCATA) and Textile Rental Services Association of America (TRSA) will host educational sessions that are open to all registered attendees.

“Each association supports its members with education and other valuable services to help them grow and protect their businesses,” reads the Clean 2013 website.

“The associations develop and offer seminars on topics of interest to their respective segments.”

To assist attendees with accommodations, the Clean Show Housing Bureau has been established and offers discounted rates ranging from $109 to $315 per night at 20 area hotels.

In addition to general housing for attendees, five properties have been designated as “headquarter hotels” for the associations

sponsoring the event, for those who wish to stay with other attendees and exhibitors from their segment of the industry.

A note on the event website reads, “You may be able to find lower rates at official Clean Show hotels by booking through other services, but you may not get the same product in return.”

A complimentary shuttle-bus service to and from the convention center will be offered during the event. It will make stops at all headquarter hotels and within two blocks of other official Clean Show hotels.

Hotel reservations must be made by May 17 through the Clean Show Housing Bureau to receive the discounted rates.

Official Clean 2013 hotels include: • Astor Crowne Plaza (CLA headquarters) • Best Western Plus St. Christopher • Chateau LeMoyne French Quarter • Courtyard New Orleans Downtown/ Convention Center • Hampton Inn Convention Center • Hilton Riverside • Holiday Inn French Quarter • Courtyard by Marriott, Downtown/Iberville

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• Loews New Orleans Hotel • Marriott Convention Center (TCATA headquarters) • Marriott New Orleans (TRSA headquarters) •M onteleone • Omni Royal Orleans (ALM headquarters) • Ritz-Carlton, New Orleans • Royal Sonesta (DLI headquarters) • Sheraton New Orleans • Springhill Suites Convention Center • W Hotels New Orleans •W estin • Windsor Court Overall, in addition to learning about the newest products and trends, Riddle explained that one other benefit that attendees will reap is the sense of camaraderie and connection among the various businesses and organizations in the industry. “It’s a great chance to renew old friendships and make new ones,” he says.

To learn more about Clean 2013, including how to register and make reservations at official Clean 2013 hotels, visit cleanshow.com. n

January 2013

American Coin-Op 25

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PRODUCT NEWS

Pyramid Technologies has launched a new addition to its product line called the Phoenix thermal printer.

Designed and built in the United States, Phoenix is a plug-and-play printer for various applications, including gaming, kiosks, vending and amusements.

It is DIP switch-configurable, flash memory-upgradeable and customizable to meet a company’s specific needs.

Kristina Chevalier, sales manager, explains that the initial launch of the product was “fantastic,” and that Pyramid will implement Phoenix into its exhibits in upcoming trade shows. “With trade show season right around the corner, we are going to utilize it as phase two of the launch plan,” she says.

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Page 1

480-507-0088

Conversion kits now available for discontinued change machines

«

«

Thermal printer configurable, customizable to meet specific needs

Standard Change-Makers reports that SC-MAX Conversion Kits are now available for customers using its System 500, 500-E and 600-FST bill acceptors.

Since announcing discontinuation of the System 600 series changers, the company has been working on the conversion kit design to allow in-place conversion of existing SC series cabinets with OEM bill acceptors manufactured by MEI (Mars) and Coinco.

The kit includes the SC-MAX Controller. It features a blue LCD display with 4-button input and provides most of the system’s programming, diagnostic and audit feedback.

The kit includes all the brackets, hardware and instructions needed to convert machines, the company says.

standardchange.com |

800-968-6955

www.americancoinop.com

12/18/12 6:12 PM

SERVING THE LAUNDRY INDUSTRY SINCE 1997.

5000 LONG BEACH RD ISLAND PARK, NY 11558

516-432-3834 REBUILT MACHINES

PARTS

NO COMPETITOR GOES TO THE EXTENT WE DO TO REBUILD MACHINES! * THIS IS OUR BUSINESS & OUR POLICY NEVER CHANGES! * WE SELL OUR REBUILT MACHINES AT UNBEATABLE LOW PRICES.

EQUIPMENT ORPHANAGE

Our Parts Department has thousands of products on over an acre lot.

If we don’t have what you want, ask us, and we’ll find it for you.

FACILITY DESIGN From initial site inspections and recommendations to equipment purchase and installation, we are here to help with every aspect of your project.

WASCO 185’s 220/1 & 220/3 WASCO 184’s 220/1 & 220/3 WASCO 125’s 220/1 & 220/3 WASCO 124’s 220/1 & 220/3 WASCO 74’s 110 v & 220/3 WASCO 75’s 110 v & 220/3 WASCO 620’s 110V

$3,500 $2,700 $2,400 $1,850 $ 975 $1,200 $1,600

**6 MONTH PARTS WARRANTY** INCLUDES FREE COIN BOX & EPHOTOS OF MACHINE WILL BE SENT PRIOR TO SHIPMENT

We can help you with specifications, dimensions, illustrations of commercial and on-premise laundry equipment.

FINANCING We are able to offer competitive rates and low, affordable monthly payments for financing coin laundry and laundromat facilities.

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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

web update

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

Top Five Stories

Columnists/Features

Our Sister Websites

• Maytag Sales School Arms Attendees with Tools to Compete

• StatShot: All Regions Report Better Coin Laundry Sales in October (WE)

From AmericanLaundryNews.com:

• Belson Co./Continental Girbau Open House Garners ‘Fantastic Response’

• Survey: Many Coin Laundry Owners Give Thanks for Well-Performing Stores

• Alliance Laundry Puts Chiavetta in Charge of Customer One Program

• The Year in Review

• Laundry Excellence Conference Boasts Top 100 Laundry Owners: CLA

• Survey: 67.4% of Laundry Owners Report Better Business in 2012

• Design-Build Firm Relocates Mechanical Room, Adds On to Loading Dock for Alsco • Survey: Many Thankful Because Their Laundry Operations are Performing Well

From AmericanDrycleaner.com: • StatShot: Dry Cleaning Sales Rise Across the Board in October (WE) • Pre-Spotting Step Toward Better Cleaning

• LG Presents Best Partnership Award to...

Advertisers’ Index Advertiser

Page

Advertiser

Page

AC Power Co. ................................................................. 24

Laundry Concepts ........................................................... 15

American Dryer Corp........................................................ 9

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

American Switch.............................................................. 31

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

Clean Show...................................................................... 13 Coin-O-Matic.................................................................. 29 ESD Inc............................................................... 16, 17, BC First Line Laundry Corp.................................................. 14 Frontec............................................................................. 30 Gold Coin Laundry Equipment ....................................... 11 Great Lakes Commercial Sales ........................................ 30

NATCO............................................................................ 25 New York Laundry Equipment........................................ 27 NIE Insurance.................................................................... 7 R&B Wire Products .......................................................... 1 Royal Basket Trucks ........................................................ 26 Setomatic Systems.......................................................... IFC

HHC Electronic Service .................................................. 31

Super Computer Boards................................................... 30

Huebsch......................................................... FC, 19, 21, 23

Vend-Rite........................................................................... 5

Irving Weber Associates................................................. IBC

Wells Fargo Insurance Services ....................................... 12

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www.americancoinop.com

12/19/12 9:44 AM

Over

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Phone: 708•371•9595 Fax: 708•371•8777 www.millerlaundry.com

Store Hours: M-Th 8am-6pm, Fri 8am-5pm, Sat 8am-2pm

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12/20/12 11:51 AM

classifieds

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ELECTRONIC REPAIRS

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

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

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

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Many Brand Names not listed.

Florida & Georgia area VICTOR @ 321-946-9890

PARTS FOR SALE Equipment For Sale

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Super Computer Boards 14340 Bolsa Chica Road #I, Westminster, CA 92683

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www.greatlakeslaundry.com Maytag Neptune coin operated washers and dryers for sale, excellent condition.

Call 347-766-8144

Buying coin washer/dryer routes in the South West region. Call Rod at 800-729-8434 x135

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WILL BUY ANY EQUIPMENT (WASHERS AND DRYERS) ON WEST COAST. 888-205-0884.

www.AmericanCoinOp.com 30 American Coin-Op January 2013

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

Contact classified sales to place your ad! dfeinstein@ americantrademagazines.com

SERVICES AND SUPPLIES WASHER AND DRYER COMPUTER BOARDS REBUILT Igniters repaired Washers: $70 - & up Dryers: $40 - & up Igniters: $25 - & up Rebuilt Timers - Wascomat, Huebsch, Speed Queen, IPSO, Laundry Center, Maytag Call for exact price which includes free return shipping 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

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SERVICES AND SUPPLIES

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WASCO GEN 5 DOOR LOCKS & TIMERS REBUILT Door Lock $68 • Gen 5 & 6 Timer $85 Gen 4 Timer $75 • Continental Timer $85 DRYER COMPUTER BOARDS ADC Stack $60 • Single $45 Huebsch SQ Board $45 Huebsch Old Style Board $55 Stack Dexter/Continental $60 Washer Coin Boards $55 Some prices may vary!!!!

JECON INC. SUITE 272, 11064 QUEENS BLVD. FOREST HILLS, NY 11375 One-Year Warranty on All Parts Send Core Unit with S&H Fees Call Toll Free: 1-888-532-6677 (888-JECON77) Local: 718-525-3733 • Fax: 212-656-1913 718-525-2266 Visit: JECONINC.COM We Now Accept All Major Credit Cards

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TIMERS REBUILT — IPSO main & reverse, Milnor, Dexter, Primus, Whirlpool, Speed Queen, Maytag & Continental Girbau, Wascomat Generation 4 and 5.

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January 2013

American Coin-Op 31

12/18/12 6:07 PM

newsmakers

Laundry Excellence Conference Boasts Top 100 Owners: CLA The Coin Laundry Association (CLA) reports that it brought together 100 of the top laundry owners in the country at its Excellence in Laundry Conference in October. Laundry owners and a handful of new investors descended upon Rancho Mirage, Calif., where they networked, reviewed table-top exhibits from leading manufacturers, and attended educational programs focused on small-business success.

The overarching theme centered on professional laundry owners and their successes. One such round table panel focused on how an owner can grow their own chain of vended laundries. Rated by attendees as one of the best educational experiences of the conference, owners learned the secrets to success from four leading industry multi-store owners.

CLA says it will be designing and hosting an event similar to this again in 2014.

Alliance Laundry Promotes Bittner to VP of North American Sales, Honors Brothers for 35 Years of Service to company Alliance Laundry Systems has promoted Bill Bittner to vice president of North American sales. He succeeds Jeff Brothers Sr., senior vice president of North American sales, who is retiring after 35 years of service.

Bittner is responsible for managing Alliance’s well-known brands, which include Speed Queen, UniMac, Huebsch, IPSO and Cissell, through a team of national sales managBill Bittner Jeff Brothers ers and their respective regional sales managers.

Additionally, he will oversee pricing, budgets, forecasts, sales promotional activity and distributor development.

During his 15-year tenure at Alliance, Bittner has held a wide variety of positions that include leadership roles in sales, manufacturing, and genuine parts. He most recently served as vice president of Customer One, the global company initiative focused on customer service.

For 35 years, Brothers has served as an important and respected leader in the commercial laundry industry, having made “significant contributions that have helped the company achieve the market success that it continues to build upon today,” Alliance Laundry says. He participated in three major acquisitions and the integration of those companies.

“I want to thank Jeff for his years of service and dedication to Alliance Laundry Systems, and wish him the very best in his retirement,” CEO Michael Schoeb says. “While he will be deeply missed, he has earned the opportunity to enjoy more time for his leisure interests and his family.”

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Western State Design Unveils New, Expanded Corporate HQ Western State Design has moved its corporate headquarters into a new, expanded location at 2331 Tripaldi Way in Hayward, Calif., the company reports.

The new facility better meets the needs of all laundry customers, says the equipment distributor, as it features an expanded full-service laundry parts department, state-of-the-art equipment showroom with energy-efficient laundry equipment operating for live demonstrations, and a customer training center.

The company is an authorized distributor for Dexter Laundry, Chicago Dryer Co. and American Dryer Corp., and has several offices located throughout the country.

LG Presents Best Partnership Award to Coinmach Service Corp.

Coinmach Service Corp. (CSC), which provides outsourced laundry services to multi-family housing, military housing, college campuses and hospitality industries across the United States, recently received the Best Partnership Award from LG Electronics’ Commercial Laundry Division.

“We are honored to receive this award and value our continued partnership,” says CSC CEO Robert M. Doyle. “LG’s advanced technology and superior reliability provides CSC with a clear advantage in the marketplace and meets CSC’s commitment to create a positive customer experience.”

CSC says it is the largest provider of LG commercial laundry equipment in the United States.

Alliance Laundry Dedicates Expansion to 60-Year Employee Alliance Laundry Systems, which recently announced expansion plans in Ripon, Wis., says it will dedicate one of its new expanded manufacturing facilities to longtime employee Melvin Blank.

Blank celebrated his 60th anniversary with the company in September. He became an Alliance Laundry employee when he was 19 years old, and has held a variety of positions, including warehouse driver and top-load washer assembly. Today, Blank works in the plastics injection molding department.

Maytag Sales School Arms Attendees with Tools to Compete Attendees of a recent Maytag University Factory Commercial Laundry Sales School received in-depth, hands-on training of the company’s multi-segment product portfolio. In addition, education sessions delved into the company’s energy calculators, financing options and market discussions specific to the coin, multi-housing and on-premise segments.

The 16 attendees toured a local hospitality facility, explored Maytag’s state-of-the-art testing lab, and compared competitor offerings. “We learned about what works and what doesn’t work when selling commercial laundry equipment and route services,” says Kellie Blumberg, president and owner of Texas Coin and Commercial Laundry. “This experience will help me close even more sales.” n www.americancoinop.com

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