American Coin-Op - June 2014

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Replacement

Parts

WHAT TO KEEP ON HAND SHOULD A MACHINE GO DOWN

I N S I D E : J U LI N Y S 2I D0 E0 :5 J U N E 2 0 1 4 THE DO’S AND DON’TS OF PREVENTATIVE MAINTENANCE

MANAGING THE ‘WORLD’ FROM OUT OF STATE

EXTRA PROFIT CENTERS: THE VITALITY OF VENDING

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CONTENTS JUNE 2014 VOLUME 55 ISSUE 6 COVER STORY

REPLACEMENT PARTS Despite the robustness of today’s vended laundry equipment, there will be times that parts falter or fail. We spoke to some industry experts about the parts business and found out which spares you should keep on hand.

(Exclusive audio content in Digital Edition)

8 INSIDE 12 COIN-OP 101: THE DO’S AND DON’T

OF PREVENTATIVE MAINTENANCE

Most important thing a store owner can do is promptly repair out-of-order units, writes Huebsch’s Kathryn Rowen

18 MANAGING THE ‘WORLD’ FROM OUT OF STATE Staff, advanced technology enable Barry and Holly Monroe to run their Wash World laundry in North Carolina from their South Carolina home

20 10 THINGS YOUR LAWYER MAY NOT TELL YOU

COLUMNS 24 A BAHAMIAN FACT-FINDING VACATION The last time Howard Scott went on vacation, he jogged the beach, went swimming, biked around the island, read several books, ate at a few good restaurants, and visited a Laundromat called Stop N’ Wash, Yes, even in the Bahamas, the small-business consultant made time to check out the local coin-op.

DEPARTMENTS 4 VIEWPOINT 6 INDUSTRY SURVEY 15 WEB UPDATE

28 AD INDEX 30 CLASSIFIEDS 32 NEWSMAKERS

Ask questions to learn the scope of legal services, aptitude of attorney

22 THE VITALITY OF VENDING Some vending experts dispense a wealth of information on the state of the industry, the changes and challenges it faces, and opportunities store owners can capitalize on to raise their vending game (Exclusive audio content in Digital Edition) Cover Images licensed by Ingram Publishing

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22 A CLOSER LOOK As the times and technology have changed, so, too, have customers’ vending needs.

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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

IT KEEPS YOU RUNNIN’

Bruce Beggs

REPLACEMENT PARTS Every coin laundry owner, including you, has to deal with acquiring replacement parts for washers, dryers and other equipment that falters or fails. Do you have any spare parts on hand?

For our cover story this month, I interviewed representatives of equipment distributors and suppliers to learn more about the parts business. It’s likely there is a list of suggested spare parts to keep on hand for the equipment you own. My story starts on page 8.

A WORLD AWAY Barry and Holly Monroe own several Laundromats but only one outside their home state of South Carolina. They rely on their staff and on advanced technology to enable them to run their Wash World operation in Charlotte, N.C. Take a trip with writer Hannah Miller to the 3,600-square-foot “superstore” sandwiched between a meat market/grocery and a restaurant. The tour starts on page 18.

DISPENSE WITH THE INFO Snacks, beverages, laundry detergents, small toys and trinkets, and even video games have been at the disposal of waiting laundry customers for years, writes Editorial Assistant Carlo Calma. But as the times and technology have changed, so, too, have customers’ vending needs.

Calma interviewed representatives of the National Automatic Merchandising Association as well as two major vending equipment manufacturers to learn about the state of the industry and to identify the changes and challenges that it faces. He dispenses his report beginning on page 22.

Of course, there’s much more quality content for you this month. And if you’re reading this in our Digital Edition, watch for the microphone icon to access exclusive audio!

Bruce Beggs Editorial Director

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

ADVERTISING 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 630-739-0900 x100 www.AmericanCoinOp.com

American Coin-Op (ISSN 0092-2811) is published monthly. Subscription prices, payment in advance: U.S., 1 year $39.00; 2 years $73.00. Foreign, 1 year $89.00; 2 years $166.00. Single copies $7.00 for U.S., $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 55, number 6. 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, 2014. Printed in U.S.A.

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INDUSTRY SURVEY

WORD OF MOUTH REIGNS SUPREME WHEN MARKETING

To read other Your Views survey stories, visit www.americancoinop.com 6

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The majority of Laundromat owners and operators (45.2%) polled in May’s American Coin-Op Your Views survey say they “market more than most operators.”

Equal shares of 19.4% say they either “market just as much” as other operators, or they “market less than most.” The remaining 16.1% confessed they “don’t market” at all.

Owners/operators were also asked to identify all the marketing tools they have used from a prepared list. Equal shares of 39.3% say they have utilized “free/reduced-price wash and/or dry,” and “other” marketing strategies, like door hangers and social media, while one says he/she has had the store’s ad displayed during previews at a local movie theater.

Equal shares of 35.7% say they use “loyalty programs” and “in-store giveaways”; 28.6% utilize direct mail; 21.4% use newsletters/brochures; 17.9% advertise with newspaper coupons; 10.7% buy TV/radio ads; and 3.6% do promotions through “holiday-related activities.”

In terms of which tactic has proven most successful, 36% of respondents say it’s a combination of “other” tools, like social media and advertising through the Yellow Pages, while 24% swear by “free/reduced-price wash and/or dry.” Sixteen percent can attest to the power of “in-store giveaways,” while 12% say “loyalty programs” work best.

Equal shares of 4% say newsletters/brochures, newspaper coupons, and direct mail have proven successful.

Using social media and the Internet to market is becoming more prevalent among Laundromat owners, as more than half (54.8%) say they use the mediums, while 19.4% say they do not. More than a quarter say they “plan to explore” the options.

Regardless of which marketing tool they use, a resounding 80.7% say “word-of-mouth” advertising is more important than any marketing efforts. A small percentage (3.2%) believe otherwise, while 16.1% say they are “not sure.”

Some respondents (26.7%) say “without a doubt” their marketing efforts have been worth the time and expense, while an identical share (26.7%) say that it wasn’t worth the investment, “with some exceptions.”

For 23.3%, their marketing efforts were worth the time and expense “with some exceptions.” A small percentage (3.3%) say “without a doubt” it was not worth the time and money. The remaining 20% say they are not sure.

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

■ www.americancoinop.com

5/15/14 6:29 PM

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Replacement

Parts

What to keep on hand should a machine go down (Image licensed by Ingram Publishing)

Tri-State Technical Services, a Waycross, Ga., distributor that represents Maytag or a coin laundry owner, it’s vital- Commercial Laundry in several East Coast ly important that each and every states. Her company maintains a large washer and dryer in their store is up parts inventory in two of its divisions.

D. Michael Davis is president and owner and running—either in use or standing by for the next customer who carries a basket of Nashville, Tenn.-based PartsKing, which heaped with dirty clothes through the door. he says was the first online resource for But despite the robustness of today’s coin-op parts and supplies in the world. vended laundry equipment, there will be Since its inception in 1999, it’s grown to become one of the largest parts times, for whatever reason, that suppliers in the world, Davis parts will falter or fail. It’s at says, carrying parts from every times like those that a store owner major vended equipment manueither consults his/her stock of facturer. spare parts (more on that later) PLAY AUDIO Chris Mackay is director or reaches out to his/her equipof advertising for Gold Coin ment distributor or parts supplier of choice for the all-important component Laundry Equipment, Jamaica, N.Y. Before being promoted to that post, he ran Gold that’ll get a machine back in play.

American Coin-Op interviewed repre- Coin’s parts department for roughly a sentatives from a handful of companies decade. Gold Coin is a Dexter Laundry disthat make it their business to supply the tributor, selling and servicing Dexter equipment in the five New York City boroughs parts you need. and parts of New Jersey.

Andy Marcionetti is owner of Laundry INTRODUCTIONS Diana Anthony is director of parts for Concepts, an Addison, Ill., equipment dis-

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tributor whose main focus is construction of new Laundromats in the Chicagoland area, and thus maintains a full-service parts department that sells replacement parts for all brands.

REGULAR REPLACEMENTS Belts, hoses, lint screens, dryer rollers and the “wearable” components that customers come into contact with—door handles, coin drops, etc.—are among the parts that store owners are replacing most frequently, the experts say.

Meanwhile, water valves, drain valves and computer boards are among the more intricate parts that they see most frequently in customer orders.

It’s not unusual for store owners to purchase belts and hoses from sources other than authorized laundry equipment distributors, Anthony says.

“I NEED IT YESTERDAY!” When a part goes down, a store owner needs its replacement immediately to get a machine back up as quickly as possible.

▼

By Bruce Beggs, Editorial Director

www.americancoinop.com

5/16/14 11:00 AM

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There’s no time to waste when it comes to ordering and delivering parts.

“We have customers throughout the country,” Mackay says.

“But for our customers here in New York, we have a parts department that’s open five days a week, 8:30 to 5, so most of the parts they would be in need of, they could come directly to our parts department and pick it up that same day. If it’s not something that we do stock, we have the ability, with the manufacturer, to have that part here the the correct parts for the correct machines.

Even though the model number may not next day if necessary.”

“We’re centrally located here in the change, some of the parts might have middle of the country,” Davis says, “so changed.”

“We work with the vendors, particuwe can ship anywhere in the country, any direction, real quickly. We ship worldwide larly when new equipment comes out, to as well. We’re not just a domestic company. figure out what should be stocked, what is going to be a fast-moving item,” Anthony We ship internationally.”

“Our goal at Tri-State is to place the says. “We, like most vendors, try to carry order, or ship, the same day the order is the fast movers in hand. In other words, received,” Anthony says. “We try to do water valves, drain valves, a few computer it immediately. By the end of the day, all boards. There are so many different models of our parts people have processed every of equipment, you can’t stock everything.” order that they’ve taken, either placing with the vendor or drop-shipping from our IN IT FOR THE LONG HAUL Well-maintained equipment can, in some inventory.”

“We have 90% of the wearable parts cases, remain operational for decades. on hand at all times,” says Marcionetti, Many times, when a washer or dryer model has been discontinued, suppliers whose firm specializes in Alliance must continue stocking parts for brand parts. “Manufacturers are years thereafter. constantly making upgrades to “Manufacturers, I think, are models, and obviously the parts required to keep parts seven are not interchangeable. The list PLAY AUDIO years,” Davis says. “We’ll keep of parts grows.” them as long as the manufacturers have them available. We generally keep CLOSE RELATIONSHIPS So that they can keep the right parts in our inventory many years after a product stock, it’s important that distributors and is obsolete.”

“The ability of us maintaining that parts suppliers stay in touch with the equipinventory falls back to the vendors and how ment manufacturers.

“It’s a daily thing,” Mackay says. “We’re long they are going to supply those parts,” constantly back and forth with the manu- Anthony says.

“I had a customer earlier today call me, facturer for parts orders we’re waiting on or parts we’ll need in the future. … There and he has a (model) WCA20 which has to are meetings that are scheduled frequently be 20-25 years old, and he was replacing with our area sales representative. At that the bearings and seals,” Mackay says. “We meeting, they’ll discuss what’s going to be had it in stock, and I was able to get it for available, what’s up and coming … or even him. … It really depends on the model. Not every part is available.” the parts that will no longer be available.”

“It depends on the manufacturer, but the larger manufacturers we communicate with TRACKING PARTS PURCHASES A store owner can keep a finger on the on a daily basis,” Davis says. “Generally, it’s a lot of e-mails and a lot of phone calls pulse of his/her equipment by keeping going back and forth to make sure we have track of parts purchases. Major suppliers

maintain sophisticated online systems that can be used to easily review a customer’s order history.

“We recommend it—the date the part was changed, what machine it was changed on— because that could help our service staff,” Mackay says. “If this is an ongoing problem and this machine has been constantly changing ignition modules, why is that? Then you would have to look further into why it’s doing it.”

“It helps them make sure, when they have to buy that part again for another machine, instead of having to go through the whole process of deciding which part number it is exactly,” Davis says. “Also, obviously, for their tax records, they need that [information] for their accountant at the end of the year.”

“I think it is important, definitely, to keep track of what you spend on parts, because that could be an indicator of when it might be time for you to buy new equipment,” says Marcionetti. “Gauge how much you’re spending on parts and service in comparison to what a new machine might cost you.”

“There are certainly some store owners who do not stock anything. ... Not having at least the minimum amount of stock of wearable parts would be a mistake.”

— Andy Marcionetti, Laundry Concepts

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WHAT TO KEEP ON HAND It’s not unusual for manufacturers to provide lists of recommended spare parts in the installation and maintenance manuals accompanying new equipment, and distributors also keep lists of stocking parts on hand for their customers.

Water valves, water valve repair kits, door gaskets and belts are among the most commonly changed parts that Tri-State recommends its customers purchase and keep on hand, but it doesn’t always happen, according to Anthony. “Very few coin stores stock a lot of parts. It’s kind of a ‘buy as needed’ industry.”

“A small inventory of parts would not hurt,” Mackay says. “You really don’t want a machine down on your busiest days.”

“There are certainly some store owners who do not stock anything,” Marcionetti says. “At the worst time, things happen, usually Friday afternoon. A belt will break on your big machine and you won’t have one. Not having at least the minimum amount of stock of wearable parts would be a mistake.”

■ www.americancoinop.com

5/16/14 11:00 AM

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COIN-OP 101

THE DO’S AND DON’TS OF PREVENTATIVE MAINTENANCE Most important thing an owner can do is promptly repair out-of-order units

DO TAKE THE TIME TO FOLLOW A PROGRAM Preventative maintenance may not be at the top of an owner’s list, but it certainly should.

“An owner’s No. 1 priority is to service out-of-order equipment, but it’s the preventative maintenance that often takes a back seat,” shares Mike Besaw, managerCustomer Service, Alliance Laundry Systems. “While many owners may have a program in place, most do not spend the time to conduct this maintenance, especially if the machine is still generating revenue.”

For single-store owners, Besaw says the task of preventative maintenance is manageable, as they can typically do their own service. “Single-laundry owners can establish a schedule to maintain a few units at a time instead of trying to do everything at once.”

Multiple-store owners can also follow the program addressing a “batch” of machines at a time, but may need to get outside help due to the sheer number of machines they need to maintain.

“Depending on the number of stores they have, owners may need to have a maintenance technician on staff, or may need to rely on their distributor to help execute the preventative maintenance program,” notes Besaw.

“Authorized distributors are trained by, and work closely with, the manufacturer, and should be experts of the equipment they sell and service.”

DON’T FORGET THE SMALL STUFF Many small concerns can quickly turn into major issues when a store’s equipment isn’t being monitored or maintained. Machines that are not properly main12

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tained can end up costing an owner significant amounts in repairs.

With tumble dryers, it’s essential to clean the dryer lint screens. “By keeping lint screens and vents clear, an owner can be saved the aggravation of customer complaints that the dryers ‘won’t dry’ and providing repeated refunds,” Besaw adds. “If the lint screen is neglected, the tumble dryer will no longer produce heat and eventually shut down.”

To avoid such issues, each machine’s lint screen should be cleaned every day, and if it’s a high-traffic store, twice a day. Besaw suggests that attendants hold off on using the vacuum until the end of the day to avoid disturbing the customers, but during the day they “should open up drawers and pull the layer of lint right off.”

Keeping these areas clean will also save on utilities, as the machine won’t have to work longer for the same result.

Many small concerns can quickly turn into major issues when a store’s equipment isn’t being monitored...

For washer-extractors, check the door lock for proper operation at the start of each day. This includes closing the door and starting the machine and also attempting to open the door while the cycle is in progress. At the end of the day, the doors should be left open to allow moisture to evaporate and keep the machine from smelling musty or forming rust.

Owners or attendants should also inspect daily the water inlet valve hose connections on the back of washer-extractors for leaks. Additionally, checking for any clogs in the drain valves or drain system is essential.

“Sometimes customers accidentally leave items in their pockets, which then can end up causing damage to the machine,” Besaw notes. “A simple cleaning of these components can save hundreds of gallons of water.”

DO RELY ON ADVANCED CONTROL SYSTEMS Utilizing a washer-extractor’s and tumble dryer’s

▼

Kathryn Q. Rowen

A store’s vended laundry equipment could have all of the bells and whistles, but if not properly maintained, its benefits will fall silent. For owners looking to exceed customer expectations, reduce utility costs and avoid bigger maintenance issues, adhering to a preventative maintenance program is essential.

With distributor service schools, manufacturer call centers and suggested maintenance schedules and the boundless information found on the World Wide Web, one can set up a preventative maintenance program with ease.

www.americancoinop.com

5/15/14 6:30 PM

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COIN-OP 101

advanced control system can also help with a preventative maintenance program.

While it will not do the work of cleaning lint screens, wiping down the machines or testing the doors, some systems will alert owners of leaks in the drain and fill valves. The alerts will help eliminate wasted water and also reduce the time spent on these crucial aspects of preventative maintenance.

Some advanced control systems also feature service diagnostic troubleshooting so if there is a maintenance concern, an owner can run factory tests and quickly understand issues so they can be corrected.

In the event of an issue, Besaw suggests owners start simple and use the machine schematic, or road map, as a guide to the problem.

“There are many controls that will display error codes indicating the problem area. Using the service manual to decipher these codes, and a multi-meter, can save the owner time and money.”

DON’T LET CUSTOMERS GET FRUSTRATED The most important thing an owner can do in regards to maintenance is promptly repair units that are out of order. Machines that

are “down” are not producing revenue and can cause customer frustration if not addressed in a timely manner.

“The last thing an owner should want a customer seeing while in the store is multiple ‘Out of Order’ signs,” Besaw shares. “Many repeat customers have their ‘favorite’ machines, and if they are broken, they may choose to go elsewhere.”

To avoid the chances of improper operating of machines, Besaw suggests posting signs in multiple languages throughout the store with visual aids illustrating how to insert payment and how to select cycles.

Whether an owner has one store or 10, using manufacturer and distributor resources can make setting up and following a preventative maintenance program a manageable task. The programs not only help an owner avoid bigger maintenance issues, but keep customers satisfied and reduce utility costs.

■ Kathryn Q. Rowen is the Huebsch® North American sales manager and may be reached at kathryn.rowen@alliancels.com. To learn more about Huebsch, visit www.huebsch.com/CoinOp101 or call 800-553-5120.

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Store and type Magazine Central into search bar

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Step 3: Open the Magazine Central App

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The app stays on your tablet. Check back monthly to download the latest issue.

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5/15/14 6:30 PM

WEB UPDATE

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

TOP FIVE NEWS STORIES

COLUMNISTS/FEATURES

OUR SISTER WEBSITES

• CLA Finalizes Schedule for Excellence in Laundry Conference

• Coin-Op 101: Laundromats in the Digital Age

From AmericanLaundryNews.com:

• U.S. Mint Requests Stakeholders Comment on Changing Coinage

• Cashless Laundries: Is the Future in the Cards?

• U.S. Census Bureau Shines Light on Laundromat History (WE)

• Is Your Coin Laundry’s Signage Effective?

• StatShot: March, First-Quarter Coin Laundry Sales Up for All Regions (WE)

• Continental Girbau Inc. Now Exclusive U.S. Provider of LG Platinum Washers... o_ ell argo /1 /12 :5 •12a WASH’s Coffey Named EY Entrepreneur...

PM

Page 1

• OPL 101: Benefits of Using Multi-Par Linen System • Staying ‘On Par’ Presents Ongoing Challenge

From AmericanDrycleaner.com: • With New Charlotte Location, Tide Dry Cleaners Opens 20th Store • Ten Things Your Lawyer May Not Tell You

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JUNE 2014

AMERICAN COIN-OP 15 12:27 PM 2/14/13

5/15/14 6:32 PM

Coin? Card?

LET THEM HAVE BO

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BOTH!

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Contact ESD at 1-800-523-1510 or online at www.esdcard.com to learn more about how CrossLink can increase your bottom line T M

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Managing the

‘World’

from Out of State Wash World, Charlotte, N.C., features Electrolux washers and dryers linked to a CCI (Card Concepts Inc.) automated payment management system. (Photos: Hannah Miller)

Staff, advanced tech enables Monroes to run NC laundry from SC home

By Hannah Miller

A

combination of special people and advanced technology enables Barry Monroe to successfully run Wash World laundry in Charlotte, N.C., 90 miles from his Columbia, S.C., home.

The people include laundry manager Gabriela (Gaby) Gonzalez, originally from Peru. Some 70% of Wash World’s customers are Hispanic, Monroe estimates, and Gonzalez communicates extremely well with them. “She’s very resourceful. She puts out any fire that comes up,” he says.

In fact, “I wouldn’t do it without her,” says Monroe, 55. “Next to my wife, she’s the best thing that ever happened to me.”

Holly, Monroe’s wife and laundry partner throughout most of his 38-year career, is another of those people making the longdistance Charlotte operation possible.

When he can’t make the weekly commute, she or one of their three sons, who have joined the business as they’ve grown up, will make it for him.

Barry Monroe and the sons—Joe, Ryan and Daniel Monroe—often use the commute as an opportunity to fix things.

Holly and Barry Monroe (inset) depend on a CCI (Card Concepts Inc.) automated payment management system to keep them abreast of what’s happening in their Charlotte, N.C., laundry located 90 miles from their home.

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Barry had his head in a washer the day he was interviewed, checking where a nail had gone through a hole in the tub and torn up the rubber beneath.

A replacement part was on hand. “Can you believe that? We were prepared!” he says. “We were ready.”

“Lucky,” Holly Monroe murmurs.

The technology that the Monroes depend on to keep them abreast of what’s happening in the Charlotte wash, their only North Carolina location, is a CCI (Card Concepts Inc.) automated wash card dispenser.

The system does a host of other things besides dispensing cards that customers use to run the 44 washers and 44 dryers, all Electrolux brand.

Among the washers, there are a dozen 20-pounders, a dozen 30-pounders, a dozen 45-pounders, a half-dozen 62-pounders and two 77-pounders. Dryers, most of them stacked, include 30 30-pounders, a dozen 45-pounders, and two 70-pounders.

The CCI system is linked electronically to each machine, and “I can remotely access what’s going on,” Barry says. He can check revenues for the day, the hour, even the year. He can add value to a card, do time-of-day pricing, reboot computers, and see which machines are running.

“It’s exciting when you dial in on a Sunday and they’re all booked,” he says.

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that’s having mechanical problems. That eliminates customer complaints created when they put money in a machine that isn’t working, Barry says.

Gonzalez can also use it to consolidate credit left on a customer’s wash card.

DEMOGRAPHICS AND LOCATION The Monroes own the small strip shopping center where the 3,600-square-foot laundry is located. A Hispanic meat market/grocery leases space on one side, and a Hispanic restaurant on the other.

Within the Laundromat, an 80-squarefoot section has been carved out at the front and leased to a business that offers phone cards and wire transfers of money to places like Mexico, Guatemala and Peru.

Charlotte’s Wash World is the only one of Monroe’s laundries to be located in

“A traffic light location and a major intersection.

It doesn’t get any better,” Barry says.

The shopping center parking lot exits onto two streets, and there are about 60 parking spaces.

The Monroes believe in keeping the laundry clean “and Store manager Gaby Gonzalez (inset) communicates well with Wash World’s largely the machines workHispanic customer base, Barry Monroe says, and is resourceful in putting “out any fire that comes up.” ing,” says Holly.

And they also believe in “bigger is ownership and distribution, is changing in better,” Barry says. Four of the six Wash other ways, too. The sons bring an interest Worlds in Columbia are, like the Charlotte in marketing through social media. location, a “superstore.”

When Wash World opened four years

SNEAKER CONTROL INNOVATION RESPONSE FLEXIBILITY

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June

an area with a lot of Hispanic customers.

Barry has six other Wash Worlds in the Columbia, S.C., area, but customers come from a mix of backgrounds, with a big military installation and several colleges nearby.

In Charlotte, he makes sure that familiar Hispanic soft drinks—coconut juice and mango- and guava-based drinks—are in the vending machine.

He stocks Hispanic brands of fabric softener (Sauvitel) and soap (Ariel). He would stock a Hispanic brand of bleach, but most of the customers recognize Clorox, he says.

The Laundromat and nearby businesses share customers, he says. “I think we all complement each other.”

But Holly thinks the laundry would do well even without the adjoining businesses.

Wash World is on a major street, Charlotte’s Central Avenue. www.americancoinop.com

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When you’re deciding where to take your load of laundry, he says, do you want to take it to the store with 18 washers? “It might be full.”

No, he says, you go where there are 44 washers, and while you’re there, “You go next door and get a nice meal.”

TWO-PRONGED FAMILY BUSINESS Barry Monroe has long owned ECL Equipment Co., distributing Wascomat and Electrolux products in North and South Carolina.

He used to concentrate on supplying coin-ops, but with the entry of his sons into the business, he has branched out into sales to hotels, motels, apartment complexes, jails, prisons, even high school athletic programs.

The family’s business, both coin-op

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ago, Barry Monroe teamed with the Hispanic restaurant next door, then a pizza shop, in a live radio promotion. “He would do some type of free pizza and we would give out a free wash card.”

He still believes in rewards. The panel on the front of the card dispenser tells customers when they’ve earned enough cumulative points for a free wash. Called Wash to Win, it visually shows their purchases approaching the qualifying $120 mark.

Other bonuses can be programmed into the computer. For instance, customers who register their cards are awarded a $5 wash/ dry credit within a week of their birthday.

“It helps build that customer loyalty,” he says. “All those little things add up.”

■ Hannah Miller is a freelance writer who resides in Charlotte, N.C. JUNE 2014

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10

Things Your Lawyer May Not Tell You Ask questions to learn scope of legal services, aptitude of attorney

By Fred S. Steingold

D

uring the course of running your coin laundry business, you may find yourself in need of legal services. Your lawyer may not automatically tell you everything you need to know about these services, and if you don’t ask questions, you may be in for some surprises.

Here are 10 things your lawyer may not tell you—unless you ask.

1. “I’VE NEVER DONE THIS BEFORE.” You’ve found some new space for your expanding laundry business. After stumbling through the dense verbiage in the landlord’s lease, you decide to have your lawyer review the lease before you sign.

Smart move.

But what if your lawyer has never reviewed a commercial lease before? Will he or she volunteer that information?

Maybe not.

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Legal ethics don’t require a voluntary disclosure. They only require a lawyer to become competent in a legal matter before proceeding.

In theory, a lawyer can get up to speed by consulting with a colleague, reading professional books, and attending seminars.

But, given a choice between a novice and a lawyer who has checked out 50 commercial leases, wouldn’t you be more comfortable with the more experienced one? If so, find out how much work of this type your lawyer has done.

2. “YOU DON’T NEED A LAWYER TO DO THIS.” There are many law-related tasks you can do yourself—like getting a tax assessment reduced or suing in small claims court.

There are other things that can be accomplished by hiring non-lawyers who can work more effectively and charge less than a lawyer. For example, an accountant may be better and cheaper at sorting out a financial mess. A real estate broker may be better at negotiating a land purchase.

Some lawyers won’t tell you about less expensive options unless you ask.

Image licensed by Ingram Publishing

3. “I CHARGE FOR FAXES, PHOTOCOPIES AND POSTAGE.” When you’re paying a lawyer $250 or $300 an hour—or even more—you may be shocked to find yourself nickeled and dimed as well. But it happens.

Some lawyers bill for the faxes they send or receive, for the photocopies they produce, and for postage and long-distance charges. Don’t assume your lawyer will be absorbing these expenses as a part of doing business.

Get a clear understanding up front about whether you’ll be hit with these incidental costs.

4. “MY PARALEGAL WILL BE HANDLING THIS.” Paralegals—also called “legal assistants”—play an important role in a modern law office. Rightfully so. They’re usually well trained and capable of handling many routine transactions.

But what if your lawyer is planning to let the paralegal do all the work? You may want to know.

For one thing, you’ll want to make sure the paralegal’s time is being billed at a substantially lower rate than the lawyer’s. In addition, you’ll want to make sure you’re www.americancoinop.com

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comfortable with the amount of the lawyer’s supervision—or lack of it—that the paralegal will be receiving.

You may also want to meet the paralegal so you can have an effective working relationship.

5. “I’M ABOUT TO GO AWAY FOR SIX WEEKS.” Terror can grip your heart when you call your lawyer to ask a follow-up question, only to be told, “I’m sorry. Ms. Jones is on a long trip to Asia and can’t be reached.”

Reasonable access is a reasonable expectation, especially in today’s digital world.

You’d like to know in advance if your lawyer will be out of touch for an extended period.

To avoid rude surprises, inquire about the lawyer’s travel plans, and who will be handling the lawyer’s clients in his or her

about suing.

Some lawyers, however, may not level with you at first—perhaps out of fear that they’ll rile you if they suggest that maybe you don’t have such a great case. To get a straight story, you may need to ask the lawyer for brutally honest answers.

7. “I DON’T LIKE THIS KIND OF WORK.” A lawyer who enjoys drafting corporate documents may abhor appearing at zoning hearings. A lawyer who likes to litigate may not like to take a matter to mediation.

You need a lawyer with a zest for your type of legal work. Someone who finds a certain kind of work distasteful may just go through the motions—not comforting when you need someone to aggressively champion your legal position.

But lawyers may be reluctant to refer

Hall for a flat fee. If you don’t ask, you’ll never know.

9. “I BILL IN QUARTER-HOUR INCREMENTS.” That five-minute phone call to your lawyer may cost you $75. Why? Because your $300-an-hour lawyer bills in increments of 15 minutes. That’s something you need to know and discuss in advance.

Billing is not a precise art, but increments of five or six minutes seem much more reasonable than quarter-hour segments.

To avoid getting burned, ask about the units the lawyer uses in billing. Maybe you’ll decide not to call the lawyer’s office quite as often.

10. “I STOPPED LEARNING THE DAY I LEFT LAW SCHOOL.” Some states don’t require lawyers to

WORK BOOT TOUGH TRUSTED QUALITY DEPENDABLE

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June

absence. Ask to meet the back-up person, and make sure that he or she will be fully briefed about your legal situation.

6. “FIGHTING FOR A PRINCIPLE IS EXPENSIVE.” If your chances of getting any real money in a lawsuit are somewhere between zip and zero, you’d like to know in advance— long before you sink thousands of dollars into a lawsuit.

Sure, you’d like to get even with the scoundrel who scammed your business, but it may cost you a bundle to duke it out in court—and you may still wind up empty-handed.

Ideally, your lawyer will give you a frank assessment of your odds of winning, your odds of collecting, and how much all of this will cost you. Sometimes the best advice is to put the matter behind you and forget www.americancoinop.com

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you to someone else. They worry that if they do, they may never see you again. You can tactfully raise the subject by asking, “Is this really your cup of tea? Do you like doing this type of work?”

If you detect something less than enthusiasm in the lawyer’s response, follow up with, “Who in town specializes in these matters?”

8. “I’LL DO THIS FOR A FLAT FEE.” Most lawyers do most work for an hourly basis—but would be willing to do particular tasks for a flat fee. Trouble is, they may not volunteer this information. They worry that clients may take advantage of a flat fee by making endless demands on their time.

Still, they may be willing to draft a business document or attend a meeting at City

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continue their education once they pass the bar—which means that a lazy lawyer may not be up-to-date on the latest legal changes.

A lawyer who ignores legal seminars or doesn’t read professional journals isn’t likely to brag about it. You may not find out until it’s too late that your lawyer was less than sharp on a crucial legal point.

Here’s where learning a lawyer’s reputation comes in handy. A lawyer who’s highly regarded by other lawyers in your community is probably doing his or her homework.

■ Fred S. Steingold practices law in Ann Arbor, Mich. He is the author of Legal Guide for Starting and Running a Small Business and The Employer’s Legal Handbook, published by Nolo.

JUNE 2014

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The

Vitality of

Vending

(Image courtesy Seaga Manufacturing)

By Carlo Calma, Editorial Assistant

L

aundromat customers waiting for their laundry to finish have often found ways to pass the time thanks to the spare change in their pockets and the convenience and comfort of vending machines.

Snacks, beverages, laundry detergents, small toys and trinkets, and even video games have been at the disposal of laundry customers. But as the times and technology have changed, so, too, have customers’ vending needs.

American Coin-Op reached out to some vending experts, who dispensed a wealth of information on the state of the industry, the changes and challenges that it faces, and opportunities store owners can capitalize on to raise their vending game.

A ‘RENAISSANCE’ The National Automatic Merchandising Association (NAMA), the national trade association of the food and refreshment vending, coffee service and foodservice management industries, has been the leading voice of the vending industry since its inception in 1936.

Roni Moore, its vice president of marketing and public relations, says the $42 billion industry is in a “renaissance.”

“It is undergoing a significant rebirth, marked by innovation in technology, 22

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opportunities around providing ‘better for you’ products and new developments,” she says.

The “evolving” landscape of the industry ensures vending companies, like Freeport, Ill.-based Seaga Manufacturing, are on the constant pulse of industry trends, technology, and customer demands and behavior.

“As the public becomes more experienced with cashless payments and unattended sales, kiosks and vending machines, micro markets, vending operators and equipment manufacturers, like Seaga, need to keep evolving to meet that customer demand, and keep equipment out in the market that is going to sell through for our operators,” says Angela Olson, marketing manager for Seaga.

THE VENUE FOR VENDING For Olson, Laundromats provide the ideal venue for vending machines.

Mark Gies, vice president of sales at Cicero, Ill.-based Vend-Rite Mfg., manufacturers of laundry soap dispensers and vending machines, agrees, adding that there will always be a necessity for the extra profit center in Laundromats.

“There’s certainly a need for it within a Laundromat, and depending upon the size of the Laundromat, it’s going to dictate the size of the soap machine,” says Gies, adding that the machine becomes an all-in-one stop for the end-user.

(Image courtesy Vend-Rite Mfg.)

“When you go to a Laundromat, the convenience that you want to provide [is] the soap, a bleach, a softener and an additive,” he says, “so that [customers] don’t necessarily have to go outside of [your] Laundromat … to the grocery store across the street or down the block to buy that detergent.”

WHAT’S POPULAR? So what are the popular items customers are looking for in vending machines?

“Obviously the Coca-Cola’s of the world, and especially the Pepsi’s of the world are heavily entrenched in vending and are the most popular items sold out of vending machines because of their grand presence in that arena,” says Olson, who adds that brand loyalty in retailing is also reflected upon the vending industry.

“Packaging with … a vending machine is always key, so we always keep in very close touch with those industries and work handin-hand with them in developing the best way to present and market and sell their products.”

From his segment, PLAY AUDIO Gies says he sees a trend toward concentrated, higher-efficiency soap products, but that laundry customers are not necessarily brand-specific when it comes to detergents.

“They’re in that Laundromat to do their www.americancoinop.com

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wash, so they’re going to buy whatever’s in that machine,” he says, adding that familiarity is what customers buy into.

“They’ve heard of All detergent, they’ve heard of Snuggle sheets, they’ve heard of Wisk, [so] as long as they’re somewhat familiar with the brand name, they’re going to buy it out of the vendor.”

THE CASHLESS TREND As more and more customers rely on cashless payment methods in the retail realm, companies like Vend-Rite have had to follow suit and reflect the trend.

Gies explains that its large-capacity Vision Vendor not only answers the demands of customers wishing to pay with plastic, but also streamlines the inventory and vending sales process for operators.

“Our Vision Vendors [satisfy] the need

two types of payment systems, so if you wanted, you can put a card reader onto a machine that has a [coin mechanism] on it.”

fresh so [your customers] don’t have any reason not to look and consider buying your products,” she says.

FUTURE FORECAST

THE CHALLENGE OF CASHLESS Though evolving payment technologies present “an enormous opportunity” for the vending industry, according to Moore, adapting to customers’ changing payment methods is a “worldwide challenge,” says Olson. Consumers and retailers alike are not only opting to go cashless, but are also exploring “plastic bills and different coin metal configurations.”

Because of this, operators must be “nimble” in doing business.

“They need to work with their customers and the technology available to them; I think they need to embrace it,” Olson

Vend-Rite is “staying consistent” with the laundry industry in order to provide end-users with items they need, Gies says.

“With Laundromats going from a topload industry to a front-load industry, from going from a 20-pound washer to [an] 80-pound washer … [customers] are not going to buy five to six boxes [of a singleuse product],” he says.

Though there will always be a need for single-use items, according to Gies, the company believes it has addressed the demands of customers looking to buy vend products for higher-capacity machines.

“We’ve positioned ourselves, with the

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of being able to sell … larger items out of a closed environment where you now have the ability to manage the sales of those items, and can actually identify, by product, how many items you sell on a monthly basis, and how much money was taken into the machine on a monthly basis,” he says.

Can laundry customers expect to see more cashless vending machines in the near future?

It all depends on the laundry owner, Gies says. “You’ve got a lot of laundry owners that are comfortable with using coins, and you [also] have laundry owners that are basically leaning toward new technology.”

Regardless of where the cashless trend is going, Gies highlighted Vend-Rite’s vending machines’ adaptability through conversion kits.

“Our machines have the ability to accept www.americancoinop.com

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says. “They always have to have it in their [thought] bubble, and to work with their equipment supplier to implement these changes because they are definitely going to become the standard someday.”

And despite recent headlines about security flaws of cashless payment methods, Olson believes the “reward is much higher than the risk.”

SELLING VENDING Knowing your Laundromat’s location and customers is key when it comes to vending sales, according to Olson. “If you don’t have what [your customers] want, they’re going to hoof it down the street to the convenience store.”

Olson points to “basic ‘Vending 101.’”

“Keep your machines loaded [and] lit up nicely, maintained, and keep your products

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Vision Vendor, to take it into the next decade of being able to satisfy a laundry owner’s needs for concentrated products,” he says.

Moore believes the industry as a whole is “uniquely suited” to meet consumer needs because vending is a “24/7 business able to provide consumers what they want [and] when they want it.”

Business owners must refine their relationship with customers to meet this ondemand aspect, according to Olson.

“The interaction with both the customer and the machine owner will need to become more and more sophisticated so that the machine owner knows what the machine has sold … what needs to be restocked, [so] the customer can have a good experience when they step up to the machine to make a purchase.”

■ JUNE 2014

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AN OUTSIDER’S VIEW

A BAHAMIAN FACTFINDING HOLIDAY

Howard Scott

So, what will you do on vacation? The last time I went on vacation, I jogged the beach, went swimming, biked around the island, read several books, ate at a few good restaurants, and visited a Laundromat called Stop N’ Wash.

Yes, this was my itinerary during my month-long winter vacation in Freeport, Grand Bahama Island, Bahamas.

When I found the Laundromat, I went several times to see how business was, what was going on, and to get a sense of customer satisfaction. It wasn’t that I needed to use the Laundromat either. Our condo had laundry facilities down the corridor. It was just that I wanted to learn something. And on vacation, so should you.

Here’s what I learned. Freeport is the only city on Grand Bahama Island. The island has a population of 52,000, and more than 80% live in Freeport. There are two or three Laundromats in the city. I say two or three because businesses often close down and/or reopen. One never knows for sure if something is a going concern.

The economy is extremely weak.

Unlike its sister island, Nassau, Grand Bahama Island hasn’t successfully integrated tourism into its economy. Possibly that’s because of the port authority, which is controlled by a Chinese consortium, The Hutchison Group, and tariffs raise prices dramatically.

Possibly it’s the local politics, which seems to be stuck in rhetoric.

The island is plagued by failing condos, high hotel mortality, and crime. Everywhere you go, you see halfbuilt concrete-block structures alongside modern, ninestory hotels. It can be said that this beautiful island, with tropical weather all year long, just can’t seem to get its act together.

Against this backdrop is Stop N’ Wash, a seemingly successful Laundromat that’s been in business for seven years. Although small (only 1,200 square feet), and located in a small mall in the village of Bohemia—a slight distance away from the main business areas—the Laundromat continues to do brisk business. I visited

When I found the Laundromat, I went several times to see how business was, what was going on, and to get a sense of customer satisfaction.

Despite the poorness of the island and the poorness of the people, prices are not cheap. A top-loader costs $1.50 for a wash. A dryer costs $1 for five minutes plus 25 cents for each additional minute. Nevertheless, as one customer says, “It makes cleaning clothes so much easier. Our house doesn’t have the water pressure to do laundry well.” Evidently, this is a common problem, which adds to the trade.

Another says, “Cleaning clothes used to be a big ▼

To read more Howard Scott columns, visit www.americancoinop.com

the shop on a Monday, Thursday evening, and Sunday morning. The facility has about 20 machines. It was always busy, with eight or 10 customers. Sunday morning particularly is a hubbub of activity.

I spoke to several customers whose comments are instructive: “This place is the only one on the island that takes care of its machines. Everything works. If, occasionally, a machine is down, there is always an ‘out of order’ sign on it. And if necessary, the attendant will refund my money. I’ve never had any problems.”

“Man, this is where we go to have our clothes clean.”

“I like to come here. We live on a boat, and it’s always nice to find a hospitable place. The snack bar has very good, very cheap food.”

Yes, the snack bar is at one end of the facility. It features soft drinks, hot dogs, curry chicken, and snacks.

Most Laundromat customers order something from the snack bar. The server doubles as the attendant. She solves Laundromat customer problems. She is empowered to give out money if money is lost in machines. So, in effect, there is an attendant on premises, because the snack bar is open most of the hours that the Laundromat is open.

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AN OUTSIDER’S VIEW

deal. Now it’s no big deal. Someone brings the clothes here every Sunday morning. We get it done right after church.”

Still another says, “I come from Holmes Rock, several miles away, but this is the only Laundromat whose machines work.

Besides, I really like the beef jerky they serve here in the snack bar.”

Yet another patron offers her comments. “Yes, it’s expensive to clean our clothes, but food is expensive, too. At Solomon’s, we’re always spending more than we should. But, just as you have to eat, so you have to have clean clothes. So it’s a no-brainer.”

So what have we learned?

First, even in places with poor population bases, people use Laundromats to clean their clothes. Thus there’s no excuse why you can’t win your share of business in your market. The key is to make it effortless and stress-free for them to do the clothes. And give them something to do with their time. In this case, it’s having a snack.

Second, consider having a snack bar as part of your operation.

If you have the room and if there isn’t a snack bar in the area, a manned snack bar might be just the inducement to get people to come. I don’t know why but I’ve never seen this done in any U.S.

Laundromat. It seems like an obvious answer to coverage. It’s simply expanding from food vending machines to a full-fledged manned snack bar.

Customers come in to do their laundry and wind up having lunch. Or they wind up having an evening snack. A second bonus is that the store is manned. The server acts as an attendant, and handles all problems or at least takes down information needed to solve problems.

Third, charge the price you must, which is the price where you make a profit at a given volume, and let the market sort it out.

Don’t be afraid to charge what you need to charge. If you do a good job, customers will beat a path to you.

To rephrase, good service trumps low prices.

Next time you go on vacation, have a great time. But also search out the competition, and learn something. Take home a trick, practice or notion you can implement in your business that will improve your operation.

■ Howard Scott is a long-time business writer, small-business consultant, and author of four books.

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ADVERTISERS’ INDEX Advertiser

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Advertiser

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AC Power ....................................................................... 26

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NEWSMAKERS

ESD CELEBRATES MILESTONE, ADDS KEY EQUIPMENT, HIRES SPERRY ESD, a manufacturer of card systems for retail Laundromats and route operations, recently celebrated the installation of its 1 millionth card reader in the field, the company reports.

Other new ESD developments include the purchase of a sixth machine to manufacture the cards used in its systems, plus the hiring of a new regional salesman.

ESD, founded in 1969, was driven by a vision to design and manufacture a mechanical coin slide that would accept coins in a vertical position. As the new product was made available, industry acceptance propelled ESD into developing additional products and

DEXTER PRESENTS TOP SALES AWARDS TO WESTERN STATE DESIGN Western State Design (WSD) was recently awarded top honors at Dexter Laundry’s annual meeting, receiving the “No. 1 in Dexter Sales Worldwide” award, and the President’s Award for Sales Excellence in 2013, the company reports.

This is the fifth consecutive year that WSD has received the award, the company adds.

“We’re truly honored to receive these two awards from Dexter and are proud of our staff and their commitment to provide energy-efficient Laundromats that serve their communities,” says Thomas Marks, vice president of WSD. “The dedication to supply a quality, American-made product, and commitment to offering profitable business models to our clients, motivates our sales team,” adds General Manager Todd Hyrn.

ESD has added a sixth machine to create the cards used in its electronic payment systems. expanding its markets into the related vending and amusement industries, the company says. It moved its headquarters and factory to Fort Washington, Pa., in 1990.

Today, ESD makes a comprehensive line of smart-card and magstripe-card devices that are used in vended laundries and multi-housing locations throughout the world.

ESD purchased its first machine to mill cards, implant chips into them and then print serial codes in 1998. The company has continued to purchase additional machines from various countries, including equipment that encodes and imprints serial numbers on magstripe cards. It has just added a sixth machine, this one built in France.

“We are now capable of producing 5,500 smart cards per hour and 12,000 magstripe cards per hour,” says ESD President Amy Gitlin. “We have made this investment to better serve the needs of our customers.”

New to the ESD staff is Mark Sperry, a regional salesman hired to cover the U.S. Southeast. A Chapel Hill, N.C., resident, Sperry will cover territory that includes West Virginia, and Virginia to Florida. The Clarion University graduate and 10-year industry veteran has experience in route Sperry operations as well as retail Laundromats.

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(From left) Huebsch Regional Sales Manager Joe Purbaugh, Joseph Koyithara and Gulf States Laundry Machinery Sales Manager Jack Hunt celebrate Koyithara’s award as Huebsch’s first Store Owner of the Quarter at his Houston (Texas) West Airport Washateria.

HOUSTON OPERATOR IS HUEBSCH ‘STORE OWNER OF THE QUARTER’ Huebsch has named Joseph Koyithara, owner of the Houston (Texas) West Airport Washateria, as its first Store Owner of the Quarter. The company plans to recognize four owners from across the country each year that excel in areas such as entrepreneurism, technology adoption, innovation, and customer and community service.

After Koyithara faced challenges while working with his then distributor to remodel two of his stores, he turned to Huebsch and Houston-based distributor Gulf States Laundry Machinery for a fresh start, Huebsch says.

“Joseph’s ability to see the value of the laundry business, even after a few bumps in the road, is a true testament to his entrepreneurial spirit and drive to succeed as an owner,” says Kathryn Q. Rowen, Huebsch North American sales manager.

Houston West Airport Washateria is located in a roughly 12,000-square-foot strip mall featuring a convenience store, gas station and liquor store, all owned by Koyithara and his partners.

The 4,000-square-foot Laundromat has 32 Huebsch washerextractors, ranging in capacity from 20 to 80 pounds and featuring the company’s Galaxy and eBoost technology, Huebsch says.

■ www.americancoinop.com

5/15/14 6:42 PM

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