American Coin-Op - December 2014

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Designing Success

Portraits of Memorable Coin-Ops

I N S I D EI :N SJ IUDL EY: 2D 0E 0C 5E M B E R 2 0 1 4 REVISITING 2014ʼS BEST AND BRIGHTEST IDEAS

COUTUREʼS FABRIC CARE CLOSING AFTER 110 YEARS

HOW TO BETTER INVOLVE YOUR ACCOUNTANT IN YOUR BUSINESS

WWW.AMERICANCOINOP.COM

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11/15/14 7:58 AM

THIS THISOPPORTUNITY OPPORTUNITYDOESN’T DOESN’TKNOCK, KNOCK,

IT IT TAPS TAPS

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All RightsSoftcard Reserved. trademarks, marks and trade names referenced this material are the property of of EMVCo, their LLC.respective Other third-party propertylogos of their owners.

2014 JVLLLC. Ventures, LLC. All rightsisreserved. owners. trademarks Softcard andare thethe associated arerespective trademarks of JVL© Ventures, Contactless Symbol property of EMVCo, LLC. Other third-party trademarks are the property of their respective owners. © 2014 JVL Ventures, LLC. All rights reserved.

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CONTENTS DECEMBER 2014 VOLUME 55 ISSUE 12 COVER STORY Every year, new Laundromats open to serve the laundry needs of those in their communities. But before the first wash is loaded, much work and preparation needs to be done.

Several store owners share their tales of how their efforts led them to design their ideal coin laundry.

Designing Success

Portraits of Memorable Coin-Ops

INSIDE

8 COLUMNS 28 HOW TO BETTER INVOLVE YOUR ACCOUNTANT

22 THE YEAR IN REVIEW

“Do you view your accountant merely as a producer of report cards of your performance and a tabulator of your tax liability?” asks columnist Howard Scott. His advice: Break this mentality and provide ways you can better involve your accountant in your coin laundry business.

As 2015 approaches, revisit and brush up on some of the best and brightest management and marketing ideas presented this year in the pages of American Coin-Op.

26 COUTURE’S FABRIC CARE LEAVES

BEHIND LEGACY OF QUALITY

Keith Peterson and his father, Carl Jr., are closing the doors to their Colorado Springs, Colo., dry cleaner and Laundromat, Couture’s Fabric Care, which has been in business for more than 100 years. The father-son team recount the history of the business and share the legacy they wish to leave behind.

(Cover Image: ©iStockphoto/loveguli)

DEPARTMENTS 4 6 32 34

VIEWPOINT INDUSTRY SURVEY WEB UPDATE PRODUCT NEWS

35 AD INDEX 38 CLASSIFIEDS 40 NEWSMAKERS

26 A CLOSER LOOK After three generations of family ownership, the Petersons are closing their drycleaning/ Laundromat business.

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www.americancoinop.com

11/14/14 8:52 AM

BETTER RATE WOULD BE AS HARD AS FINDING A MORE FINDING A

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viewpoint

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

Bruce Beggs, Editorial Director E-mail: bbeggs@ATMags.com Phone: 312-361-1683

CONCEPT TO COMPLETION

Carlo Calma, Editor E-mail: ccalma@ATMags.com Phone: 815-768-7339 Roger Napiwocki, Production Manager Nathan Frerichs, Digital Media Director E-mail: nfrerichs@ATMags.com Phone: 312-361-1681

Advertising LOOKING BACK This issue of American Coin-Op is our finale for 2014, so it naturally provides us an opportunity to take a look back at our industry while keeping an eye on where it’s going.

Our main feature, Designing Success: Portraits of Memorable Coin-Ops, visits a selection of recently opened stores and examines what it took for these projects to evolve from concept to completion.

There’s a handicapped-accessible store in West Virginia, an Bruce Beggs 8,000-square-foot “megastore” on the doorstep of Hollywood, and an expanded “factory” in a Pittsburgh suburb, just to name a few. The stories that we share this month are, I’m sure, just a small sampling of the store-building activity going on in our industry at any given time.

Owners, if you have a unique story to tell about your store or business, reach out to Editor Carlo Calma (ccalma@ATMags.com) with the details.

And the same goes for you manufacturers, distributors and suppliers that serve our industry so well. If you’ve played a part in birthing a new store or giving an existing store new life, Carlo would love to hear about it.

As author Neil Gaiman writes, “The world always seems brighter when you’ve just made something that wasn’t there before.”

ANOTHER ONE IN THE BOOKS And so we at American Coin-Op close the book on another year, our 55th in publication. On behalf of the entire staff, I wish you “Happy Holidays” and look forward to speaking to you again next year.

Bruce Beggs Editorial Director

Donald Feinstein, Natl. Sales Director E-mail: dfeinstein@ATMags.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 12. 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

FOR MANY, 2014 BIZ A BIT BETTER OR EQUAL TO 2013 Better than one-third of coin laundry operators polled (37.5%) report that 2014 business was “somewhat better than 2013,” according to results of November’s American Coin-Op Your Views survey.

While close to 15% of respondents say 2014 business was “much better than 2013,” another share of 37.5% of respondents say that 2014 business was “the same as 2013.” Roughly 8% say this year’s business was “somewhat worse than 2013,” while 2.1% say it was “much worse.”

“Rising utilities cost” was the most challenging problem the majority (41.7%) of operators faced this year, while 27.1% were most challenged by “equipment breakdowns.”

Equal shares of 6.3% found “declining sales,” “competition moving in” and “employee management issues” most problematic in 2014, while 12.5% of respondents faced “other” difficulties.

Despite these hurdles, more than half of respondents (52.1%) are forging on toward 2015, saying that “[improving] overall sales” is their top priority for the new year. Close to 23% would like to “replace old equipment,” while 12.5% are focused on “[cutting] overhead costs” in 2015.

Equal shares of 6.3% are interested in “[adding] a new location,” or “other” ventures for the new year. No one who took the survey identified their top priority as “[investing] in more marketing” or “[hiring] more employees.”

Close to 43% of respondents believe that it is “somewhat probable” that they will accomplish their goals for 2015, while 40.4% say that it is “highly probable.”

Equal shares of 6.4% say that it is “neither probable nor improbable” that they will achieve their goals in the new year, while the same percentage say that it is “highly improbable.”

Roughly 4% of respondents believe that it is “somewhat improbable” that they will accomplish their 2015 goal.

“Don’t pay attention to the negativity in the [business], plow ahead, do one thing extra per day, and keep a positive attitude, it will all work out,” one owner says, regarding his/her outlook for 2015. “In short, stay positive.”

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

Subscribers to American Coin-Op e-mails are invited to participate anonymously in an industry survey each month. The entire American Coin-Op audience is encouraged to participate, as a greater number of responses will help to better define owner/ operator opinions and industry trends.

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11/13/14 3:18 PM

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11/4/14 9:13 AM

Designing Success Portraits of Memorable Coin-Ops

by Carlo Calma, Editor

E

very year, across many neighborhoods in the country, a new Laundromat opens its doors, ready to answer the laundry needs of those in the community.

But before the first washer is loaded, much work, preparation and planning has to be taken care of to ensure the success of the coin laundry.

Some will spend a month or two applying a fresh coat of paint and investing in a few equipment upgrades before they open their doors, while others will spend months upon months gutting and completely rehabbing a space to make it their own.

Some operators start completely from scratch, scouting the ideal location and building their dream coin laundry from the ground up.

In the following pages, you will read about the process several store owners took to draft and establish their ideal coin laundry—from concept and design, to the renovation and construction work, and to the long-awaited day when they could finally open the doors.

Though each took a different path, all tell tales of how hard work led them to design their own success.

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1 [1] Located in Elkins, W.Va., Sis’ Clothes Spin Laundromat is a 2,400-square-foot facility that the state’s governor says, to the best of his knowledge, is the first “fully accessible Laundromat in the state.” (Photos: Maytag Commercial Laundry)

W.Va.-Based Laundromat Achieves ADA Compliance

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two-hour drive northeast from Charleston, W.Va., is the city of Elkins, home to Sis’ Clothes Spin Laundromat, and what Gov. Earl Ray Tomblin says, to the best of his knowledge, is the first “fully accessible Laundromat in the state,” according to Maytag Commercial Laundry.

Owner Clif Schoonover’s motivation for the store was Ryan Dasher, the son of his girlfriend, Brenda Dasher. The boy became a wheelchair user at age 12 due to a rare neurological disorder, says Maytag.

With the help of Hildreth’s Commercial Laundry Equipment Sales Manager Tim Jackson, Schoonover and Ryan Dasher spent six weeks designing the 3 2,400-square-foot Americans with Disabilities Act (ADA)-compliant store, with the goal of making it 100% accessible to those in wheelchairs, as well as those with other disabilities, says Maytag.

Built from the ground up, the store was up and running in eight months, officially opening in August. Schoonover chose to not disclose the cost of the overall project.

The store’s ADA-compliant equipment mix include: 8

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[2] Owner Clif Schoonover’s inspiration for making the store ADA-compliant was girlfriend Brenda Dasher’s son, Ryan, who became a wheelchair user at the age of 12.

The store’s features, including equipment and folding tables, have been made easily accessible for wheelchair users and other customers alike to do their laundry.

[3] Schoonover reached out to Hildreth’s Commercial Laundry Equipment to outfit the store with Maytag brand washers and dryers.

11 Maytag Commercial Laundry multi-load stack dryers (MLG45); four Maytag Commercial Laundry Energy Advantage dryers (MDG78); 10 Maytag Commercial Laundry Rigid-Mount 40-pound multi-load washers (MFR40); six Maytag Commercial Laundry Rigid-Mount 60-pound multi-load washers (MFR60); and seven ADA-compliant single-load front-load washers (MHN30).

■ www.americancoinop.com

11/13/14 3:10 PM

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Designing Success Texas Couple’s Entrepreneurial Streak Goes for a ‘Quick Spin’

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oin laundry operators Rick and Ana Cortez’s first entry into the self-service laundry industry was a “modest,” 1,400-square-foot store just outside of McAllen, Texas, a city that’s a 21/2-hour drive southeast from Corpus Christi.

The couple bought a used-equipment package into leased space in a strip mall to learn the industry, according to Pellerin Milnor Corp. This eventually prepared them for their second venture into the market—the new Quick Spin Laundromat in McAllen, which officially opened in September.

“The building we found was an old convenience store that had been closed for years,” says Ana, regarding the couple’s second 1 store. “We liked the location and stayed after the owner to purchase the real estate from him.”

The building features covered parking across the front of the store, which Milnor explains is a detail found in many mid-20th century retail/commercial buildings across the Lone Star State.

However, much work had to be done to the 2 2,500-square-foot structure, the company adds.

“The building had been neglected for a long time,” says Ana. In a matter of 14 weeks, the couple had new electrical, HVAC and plumbing systems installed, along with new floors and ceiling treatments, according to Milnor, among other renovation projects.

“We’re already at two-thirds of our monthly revenue goal in just the first month,” Rick says. “We haven’t even done any advertising or marketing because our focus was on getting the store open and ready for customers.”

To achieve this, the couple had their store equipped with 12 Milnor 25-pound washers, four Milnor 35-pound washers, two Milnor 45-pound washers, a Milnor 60-pound washer, 12 Huebsch top-load washers, 12 American Dryer Corp.

(ADC) AD-330 30-pound stack dryers, and four ADC AD-444 45-pound stack dryers.

Participating dealer Derek Ward of Pellerin Laundry Machinery Sales Co., Leroy Trevigne from Milnor and Corey Simonson 10

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[1] Housed in a former convenience store, owners Rick and Ana Cortez opened their second venture into the industry with Quick Spin Laundromat in McAllen, Texas. (Photos: Pellerin Milnor Corp.)

[2] Simplicity is the theme for Quick Spin, according to Milnor, as the store’s motto—shown here on the side of its building—says it all: “Cold A/C—Hot Water—Free Wi-Fi.” [3] The store features washers from Milnor and Huebsch, and dryers from American Dryer Corp.

(ADC), all in various capacities.

from ADC were involved with the project.

The Cortezes did not disclose the project’s overall cost.

“We’re off to a good start,” says Anna. “I like being busy—I don’t like sitting around at home. This is an 3 opportunity for me to open the store and work with customers, but I can also leave during the day to do what I want to do. We’re looking forward to the next one!”

■ www.americancoinop.com

11/13/14 3:10 PM

earning From Prosperous Operators Like LBruce Page-Maytag Just Like Home Laundromat

IMONEX® “...always delivering the results you were hoping for.”

“My wife and I own a 60 machine Independent Laundromat in Bourbonnais, IL. We recently updated many of the washers and all our dryers. With today’s available technology, customers are always looking for the convenience of being able to get in and out of the store more quickly, so we now offer an ATM, credit card acceptance at our counter and still maintain a coin/cash system.

When we started our research on how to improve our coin drops to accept dollar coins as well as quarters one name kept coming to the top of the search, IMONEX. I put a call out to Butch and he was immediately able to guide me on my selection. The first coin mechanisms were made to retro-fit some older double stack dryers. Butch did a fantastic job, providing great communication, wonderful quality and tremendous follow through, and the mechanisms have worked like a charm.

The choice to go to dollar coins and also quarter acceptance has been a success with our customers. They can now choose their payment method with additional options, and they do not have to have a fistful of quarters. The dollar coin option also allows us a longer interval before having to empty the coin boxes.

We have once again added some additional dryers. Our first phone call again was to Butch and the wonderful folks at IMONEX to fulfill all our needs. It is always a pleasure to do business with people that take the time to get to know your needs and always deliver the results you were hoping for.

I would highly recommend IMONEX to anyone that wants a quality product built by courteous and qualified people with a true understanding of their customer needs.

Great Job IMONEX!!”

Contact IMONEX and see how to improve your Coin Flow.

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8/11/14 9:01 AM

Designing Success First-Time Laundromat Owner Turns Venture into Family Affair

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self-proclaimed “neat freak,” cleanliness has been in the roots of Susie Boyd’s line of work, being a former owner of a commercial janitorial company, according to Laundrylux.

Despite being a first-time Laundromat owner, she knew who could help launch her first store, Mr. Bubbles, in early 2013— her husband, Rich Boyd, a 22-year veteran in the self-service laundry industry, and owner and president of SeaTac, Wash.based CESCO Laundry Systems, a Laundrylux distributor.

Susie had competition to face, however, with five competing laundries in the Tacoma, Wash., 1 area. Despite this, she had a vision, [1] Being a first-time LaunLaundrylux says, and just kept dromat owner, and facing five competing laundries, didn’t thinking about what her ideal stop Susie Boyd from opening Laundromat would be. her store, Mr. Bubbles, in the After looking at 20 other stores, Tacoma, Wash., area. She turned Boyd found a store which met her to her husband, Rich Boyd, vision of the right location with lots owner and president of CESCO of parking, Laundrylux explains.

Laundry Systems, in designing “I liked the idea of retooling an and equipping the Laundromat. existing store since it would be less (Photos: Laundrylux) expensive than building something new,” she says. “Most of the utility work was already in place, plus 2 it had a small but solid customer [2] Susie gave the 2,000-square-foot store a base, so the ramp-up time would be “complete overhaul”—from replacing old equipshortened as well.” ment to installing energy-efficient lighting, In a matter of 75 days, Boyd gave according to Laundrylux. the 2,000-square-foot store a “complete overhaul,” according to Laundrylux—from [3] The store features Electrolux Professional replacing the equipment to opening up the laundry equipment of various capacities. aisles, which gave way to a “roomy folding family affair, area,” while picnic-bench seating was created. as her son, About working with her husband for the renovation, Susie Wesley, helps Boyd says, “Rich has designed, installed and sold some of the fin3 her with tasks, est large coin laundries in Southern California and Arizona.” like emptying lint filters, or sorting bills from the change machine.

“We make a great team,” says Rich. “Susie has an excellent “Actually, he was the main reason I wanted to get into the understanding of this business and was clear about what she laundry business in the first place,” she shares. “Wesley is 17 wanted in her Laundromat.” and has a brain disorder. As a parent of a special needs child, The store’s Electrolux Professional equipment mix includes I regularly found myself thinking about his future.” four 45x45-pound stack dryers, nine 35x35-pound stack dryResponse to her laundry continues to be “overwhelmingly ers, 13 22-pound washers, a dozen 45-pound washers and four positive,” says Laundrylux, so much so that Mr. Bubbles received 62-pound washers. the 2014 Best of Tacoma Award in the Laundromat category.

Mr. Bubbles also utilizes equipment from American Changer, “With five laundries within a mile of each other, being VendRite Mfg., Setomatic Systems, DSC, Mag Lock Door Lock selected for this award was an incredible honor for us,” Susie System, Zmodo, R&B Wire Products and LG. Boyd says.

■ It can be said that Susie’s venture into the industry has been a 12

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Designing Success LA Laundromat Operator Realizes Multi-Store Dream

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he opening of Pablo Im’s new coin laundry, named 24 Hour Laundromat, in October was a memorable experience for the coin laundry operator, as it helped him “[realize] his dream of becoming a multi-store owner,” officially opening his second vended laundry store in the Los Angeles area, reports Speed Queen.

Im reached out to California-based distributor and developer of Speed Queen Laundromats, PWS – The Laundry Company, and Speed Queen Financial Services (SQFS), for the project.

The design and build-out of the new, 5,300-square-foot facility took six months, according to Speed Queen. Im chose not to disclose the overall cost of the project.

In scouting for a location for the new store, PWS identified a “viable location” in an L.A. shopping center, according to Speed Queen. PWS Co-President Brad Steinberg says such sites are ideal venues for coin laundries because shopping center landlords and tenants enjoy the consistent traffic and cross-marketing opportunities that come with having a Laundromat in their complex.

The store’s overall look was designed using PWS’ 1 “Construction Design Menu,” which provides full customization for items like folding tables, bulkheads, flooring and seating.

The Laundromat features Speed Queen brand equipment, including eight top-loaders, 11 20-pound-capacity washer-

extractors, 10 30-pound-capacity washer-extractors, 20 40-pound-capacity washer-extractors, 10 60-pound-capacity washer-extractors, four 80-pound-capacity washer-extractors, 17 30-pound-capacity stacked tumbler dryers, and 14 45-poundcapacity stacked tumbler dryers.

A feature in the majority of the machines is the Speed Queen Quantum control system, which the company says gives Im the opportunity to operate the store through wireless networking, allowing him to program, monitor and audit the machines’ usage and cash flow.

The Laundromat also provides free Wi-Fi, a wash-and-fold drop off area, folding space and a counter spanning 18 feet for laptop usage, according to Speed Queen.

Im worked with SQFS to develop short-term and long-term business goals, and a customized program to help him reach them, the company adds.

“The end result of these partnerships is one of the most beautiful and customer-friendly Laundromats in southern California,” says Steinberg.

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2 [1] The store’s equipment mix features Speed Queen brand equipment, included among them eight top-loaders, more than 55 washer-extractors of various capacities, and more than 30 stacked tumbler dryers. (Photos: Alliance Laundry Systems) [2] Im reached out to California-based distributor, PWS — The Laundry Company, in building and equipping the new, 5,300-square-foot facility.

[3] Pablo Im “realized his dream of becoming a multi-store owner” by opening the doors to his second location, says Speed Queen. The Laundromat is situated on the border of Hollywood and Los Angeles.

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11/5/14 11:29 AM

Designing Success Laundrywood Provides More Than ‘Clean. Green. Express.’ Laundry

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estled in “the heart of Los Angeles,” just minutes from Hollywood and Paramount Studios, stands owner Gary Thompson’s Laundromat, aptly named Laundrywood.

Officially opened in late 2013, Laundrywood became Thompson’s second laundry under the “Clean. Green. Express.” tagline.

The 8,000-square-foot “megastore” is housed in a renovated

1 [1] Owner Gary Thompson provides various amenities at his newly opened store, Laundrywood. Massage chairs, flat-screen TV’s and free Wi-Fi are just a few of the comforts customers can enjoy to help pass the time. (Photos: Continental Girbau)

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early 20th Century building. The project came to fruition after Thompson reached out to Van Merrill of Continental Girbau West, a laundry equipment distributor based in Santa Fe Springs, Calif.

Continental Girbau says that the building underwent an “extensive overhaul,” and required assistance from the Los Angeles Mayor’s Office, which worked to clean up parking, clear out the abandoned cars along the outside of the store and secure power to the building. More than $60,000 in economic assistance was facilitated into the project, the company adds.

“The mayor’s office was impressed with Gary’s first store, Fair Oaks Laundry, in Pasadena, and wanted something similar to spur an economic rebirth in this part of town,” says Merrill.

Installed with Card Concepts Inc.’s card system, the store’s Continental Girbau laundry equipment includes nine 75-poundcapacity PowerLoad washers, 30 20-pound-capacity ExpressWash washers, 24 40-pound-capacity ExpressWash washers, and complementary ExpressDry dryers, according to the company.

“The ExpressWash washers make it possible to wash and dry laundry in less than 60 minutes by removing more water and moisture during extract,” explains Thompson.

Because of this feature, Continental Girbau reports, Laundrywood’s utility costs make up just 16% of total gross revenue.

The Card Concepts card system allows him to tweak programs for marketing purposes, as well as allow him to remotely program machines through the card system, among other features, according to Continental Girbau.

[2] Housed in a renovated, To help customers pass the time, early 20th Century, Thompson has included amenities, 8,000-square-foot building in such as massage chairs, flat-screen the “heart of Los Angeles,” TVs, and a granite Wi-Fi counter Laundrywood had to undergo numerous cleanup projects both with charging stations. inside and outside. Part of the Laundrywood also provides wash/ exterior’s facelift included this dry/fold, drop-off drycleaning and new custom wall art. commercial laundry services.

“We’re going after profession[3] The store features various als, spas, nail salons, multi-store Continental Girbau brand equipchains and small hotels,” explains ment, including PowerLoad Thompson. “I’m hopeful that wash/ washers, ExpressWash washers, dry/fold will grow to make up and complementary ExpressDry 30-35% of gross revenue.”

■ dryers. www.americancoinop.com

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Designing Success The Laundry Factory Increases Throughput, Space in Recent Renovation Project

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wner Jerry Montesano’s The Laundry Factory, situated in Shadyside, Pa., a Pittsburgh neighborhood surrounded by hospitals, colleges and universities, has been filling the laundry needs of locals since it opened its doors in 2000.

More than a decade later, when it came time to replace his Laundromat’s older equipment mix, Montesano reached out to Huebsch.

When an adjacent storefront became available in September 2013, Huebsch says it was a “no-brainer” for Montesano to install more of the company’s machines, ultimately expanding his store from 4,000 to 6,000 square feet.

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[1] Owner Jerry Montesano recently added more space and capacity to his store, The Laundry Factory, when a restaurant vacated the premises next door.

He expanded his Laundromat by 2,000 square feet. (Photos: Alliance Laundry Systems)

2 [2] For the recent renovation, Montesano reached out to Sonny Rogalla of Pittsburgh Laundry Systems. Montesano’s wash-and-fold service has increased in throughput through the addition of high-capacity machines; it can now process up to 9,000 pounds of laundry per week.

[3] The four-month renovation project also included new paint and a new lighting concept, according to Montesano, who opened up a wall and created two new hallways to connect the new space into his existing Laundromat.

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In renovating the space—which was previously occupied by a restaurant—Montesano worked with Huebsch distributor Sonny Rogalla of Pittsburgh Laundry Systems on a design that allowed for “as many machines as possible,” according to Huebsch.

After four months of renovations, Pittsburgh Laundry Systems helped install 20 new washer-extractors equipped with Huebsch’s Galaxy 600 controls, including one 100- and two 80-pound machines, bringing The Laundry Factory’s high-capacity offering to five, says Huebsch.

“They get more spins than any other machines. Customers like that they can put everything in at once at a reasonable price,” says Montesano, who opted not to divulge the cost of the project.

“We’re going to add another 100-pound washer soon.”

Additionally, Huebsch says that three stacked 30-pound, seven stacked 45-pound and two 75-pound tumble dryers were added as part of the recent renovation.

Montesano also wanted to improve the overall look and layout of the store. “We opened up another wall and put in two hallways. It was important that the new space flowed seamlessly into the existing one.”

In addition to its selfservice laundry, The Laundry Factory provides wash-andfold, which Huebsch says has increased in capacity through the added equipment.

Previously, staff processed 6,000 pounds of laundry a week; the volume is now up to 9,000 pounds, and two additional shifts have been added.

The store, whose clients include Heinz Field, among others, even managed 10,000 pounds per week during filming of The Dark Knight Rises, according to Huebsch.

Because of Montesano’s growing business, Huebsch says that the added space has been a “long time coming.”

“We could have used the new space two years ago,” says Montesano. “We were busy before, but not like it is now.”

■ www.americancoinop.com

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Friendly Wash Laundromat Aims to Provide Service That Lives Up to its Name

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oin laundry operators Tony and Rich Kahan appear to be on a continual growth path, having recently opened their third, and largest, Friendly Wash Laundromat location in Chicago.

The 5,000-square-foot facility, located at 5027 W. Fullerton in the city’s Belmont Cragin neighborhood, took roughly a year from planning to completion, and officially opened its doors in October.

To complete the $1.5 million project, the brother team turned to Alsip, Ill.-based commercial laundry equipment distributor Coin-O-Matic, which not only helped them equip the store and design the layout of the Laundromat, but also took an “active role” in supervising the construction of the site.

“We have a good working relationship with sales and with [Matt Miller, Coin-O-Matic president],” says Tony Kahan.

John Regan, Coin-O-Matic laundry equipment investment consultant, who worked with the Kahans on a previous project, also collaborated with the brothers on their new location, provid-

1 [1] Brothers Tony and Rich Kahan recently opened the doors to their third Friendly Wash Laundromat in Chicago’s Belmont Cragin neighborhood. (Photos: Coin-O-Matic)

2 ing them with a design and equipment consultation, as well as a demographic analysis to “ensure the market has what it needs,” according to Coin-O-Matic.

“Communication with the customer is key to the building of a successful Laundromat,” says Regan.

In outfitting the store—which is a full-service location, including drop-off service and pick-up and delivery—the Kahan brothers bought new Speed 3 Queen equipment, including one 100pound washer, four 80-pound washers, four 60-pound washers, 20 40-pound washers, 20 30-pound washers, seven Horizon washers, 45-pound stack dryers, and 11 30-pound stack dryers.

The Kahans also installed the SpyderWash by Setomatic credit card payment system to its machines, according to Coin-O-Matic. www.americancoinop.com

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Coin-O-Matic adds that the new Speed Queen equipment brings many benefits to the brothers’ new store, ultimately allowing the Kahans to “reduce operating costs and [2] The 5,000-square-foot facility maximize profitability.” took just about a year from planning to completion, opening its doors in “We really like the Speed early October.

Queen product,” says Tony Kahan. “You know, on the [3] The location’s equipment mix back end, you’re a little safe includes Speed Queen brand washers because of the quality of conand dryers of various capacities. struction and built-in design.”

“They’re very good machines. We’ve really had no problems,” he adds.

Coin-O-Matic says that the Kahan brothers’ success is a “direct reflection of their dedication to their customers’ needs and making them feel welcome.”

“People come into our stores [and] I can’t tell you how many people give me a ‘Wow! This is Nice!’ That’s the wow we’re looking for,” says Tony Kahan.

The Kahans are planning to open more locations, keeping their focus on consumers’ needs as they grow, according to Coin-O-Matic.

“For us, we believe in being clean and friendly, and that is number one,” says Tony Kahan. n

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The Year in Looking back at some of 2014’s best and brightest ideas from the pages of American Coin-Op

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By Bruce Beggs, Editorial Director

merican Coin-Op covered a variety of topics this year. If you happened to miss a story along the way, then you might appreciate a brief recap. Here’s a quick look at some of the more informative articles presented this year.

HOW TO GAIN MOST FROM DISTRIBUTOR EVENTS Whether a seasoned veteran or a newcomer, store owners continually strive to improve their Laundromats. One of the simplest ways an owner can feel empowered to make these improvements is by participating in distributor events such as open houses, sales shows and service schools, says Huebsch’s Kathryn Rowen.

While the format and frequency of events vary, owners should understand the benefits so they can get the most from attending.

Distributors will have the “latest and greatest” commercial laundry equipment on display at their events. Instead of reading about a washer-extractor’s efficiency capabilities, owners can get a first-hand look and “kick the tires.”

From testing a washer-extractor’s advanced control system to simply observing how easily a tumble dryer’s door opens and closes, an owner will get a better idea of how it would fit in the store and work for customers.

In addition to showcasing the newest commercial laundry equipment, the distributors invite area vendors to exhibit related products such as card readers, water heaters, and vending machines. That way, owners can see all the ways it’s possible to improve their stores, Rowen says.

Many events also provide the opportunity to meet with manufacturer representatives. Customer-focused companies want to hear from their equipment purchasers.

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Owners should use these events to share their experiences—the good, the bad and the ugly—and ask questions.

Expect a factory sales representative to be present at sales shows, while it is likely that a member of the manufacturer’s technical team would attend major service school initiatives.

As only select commercial laundry equipment manufacturers provide laundryfocused, in-house financing, not every distributor event offers customers the opportunity to meet with finance specialists, Rowen says.

(Photo: ©iStockphoto/Alexander Chernyakov)

During certain open houses or sales shows, attendees may have access to equipment discounts. Through these show specials, the distributor and manufacturer offer discounts on equipment or replacement parts. To show appreciation for attendees’ business and participation at an event, some distributors work with their manufacturers to give away prizes.

Some of the most popular distributor events are service schools, as the knowledge an owner gains from them can result in real

savings. Distributors are mindful of the varying levels of technical skills possessed by store owners and offer training that can be valuable for both new and veteran owners.

The expanding reliance on the Internet to convey information about equipment and services has made for a far more knowledgeable customer. What it can’t provide is face-to-face contact. By using these events to meet suppliers and peers in person, owners have the opportunity to continue the research they’ve gathered from the Web and get validation that they’re making wellinformed and thought-out decisions.

INSURANCE BASICS: ARE YOU PROPERLY COVERED? Insurance coverage is essential for every small business, but just how much do you know about it?

Business insurance is composed of basically two important parts: property and liability, says Ann Hawkins, underwriter/ vice president of NIE. Property covers items for use in the insured’s business, such as building, personal property, loss of income, equipment breakdown, money, and various other items the insured may want covered.

Liability covers bodily injury or property damage to a third party, such as your customer or business invitee. It does not cover employees or owners of the business.

Workers’ compensation is needed to cover injuries to owners and employees.

Under property coverage, you can then purchase building and personal property coverage, along with business income protection, says Jodie Millino, account executive, Wells Fargo Insurance Services. Under the liability component, you then have to determine adequate limits by your net www.americancoinop.com

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worth and any required lease agreements.

Other considerations under the liability protection, according to Millino, are personal injury (libel, slander, false arrest, defamation of character), and in some cases employment practices liability, fire legal liability, and non-owned auto coverage. These coverages are in addition to what is commonly referred to as general liability protection (premises coverage for injury and damages).

There are many components to a smallbusiness insurance policy. Some of the more common coverages to review in your business owners’ policy, says Adam Weber, president of Irving Weber Associates (IWA), are “Business Personal Property,” “Business Income,” “Extra Expense,” “Employee Dishonesty,” “Equipment Breakdown,” “Glass” and “Outdoor

(Photo: ©iStockphoto/RyanKing999)

• Water Backup coverage addresses water that backs up through sewers and/or drains. This is vital coverage for the laundry industry, Weber says.

Most business policies do not cover sewer and drain backups, so it’s impor-

after a brief training period.

Employee development takes work.

Every day, offer feedback, make comments, give instruction. Do role-playing exercises. Observe progress. Keep a notebook of comments to ascertain what kind of advancement you are making.

Scott offers a few specific problems and suggestions for how you might handle them.

Latecomer — The staffer comes in 10-15 minutes late twice a week. The first thing you must do is impart the importance of being on time. It could be opening up, relieving a staffer, taking over a new shift, or pushing out work in a timely fashion.

Nothing works like a visual explanation, so pitch a fit in front of the store, just like an angry customer would. Then, have the staffer open the front door. Walk in,

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tant that coin laundry owners check to be sure this is included in their policies.

Signs.” And, for the coin laundry, “Water Backup” and possibly “Bailee” (or customers’ goods) coverage.

• Business Personal Property, or BPP, covers the furniture, machinery, equipment, stock and all personal property owned and used in the business, as well as the improvements and betterments that you may have made to the premises (drop ceilings, lighting, etc.)

• Business Income is coverage for loss of income when a business needs to close due to disaster.

• Equipment Breakdown coverage protects against loss due to mechanical breakdown of nearly all equipment in the business. It applies to cost to repair or replace the equipment or property damage caused by equipment breakdown.

EMPLOYEE DEVELOPMENT: TAKES TIME BUT WORTH IT You hire a new staffer and put her through your training program. She’s OK, but she’s slow and gets ruffled easily. And she comes in 10 or 15 minutes late at least twice a week. Should you fire her? You could. Then you go through the same process all over again.

Maybe a better option, says columnist Howard Scott, would be to see if you can correct her bad habits. Work with her, mold her behavior, correct her errors, and maybe she’ll become an excellent worker.

In corporate speak, this is called “employee development.” Unfortunately, most laundry owners accept what they get

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sour-faced, as if one false word from the attendant will make you explode.

Alternately, pretend that you’re a worker who had to stay late because the next staffer was 10 minutes late. Indicate that you had somewhere to go tonight and will now be a half-hour late.

By witnessing these dramatic examples, the staffer will get the idea that she can’t be late.

Mistake-Prone — What about a staffer who makes a lot of mistakes counting poundage and making change? Maybe he’s dyslexic, but is loathe to admit it.

For starters, confront the staffer with customer complaints that point to him.

Insist on running a tight operation and he will have to improve to continue being your employee.

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him to count money like bank clerks do: they add two or three piles, then compute the sum of the piles, then double-check by adding each bill. If he is dyslexic, provide clues as to how he can distinguish ones from fives from tens from twenties.

Review with him the counting of poundage. Perhaps apply a color-coded marker on the most common amounts—10, 15 and 20 pounds—to help his counting.

Slowpoke — What if the staffer is excessively slow?

First, convince the worker why being speedy is important. Point out that a brisk, energetic attendant gives the customer confidence that the operation is competent.

Then, show how to do tasks more speedily.

Give wash/dry/fold examples—fast and slow. Explain that processing wash/dry/ fold poundage speedily can make a difference between making a profit and taking a loss. Provide hints to hasten processing— fold shirts by holding them up between chin and chest and using both hands to fold; time drying so that loads come out in a sequenced time frame.

Development is ongoing. Periodically watch the staffer to make sure he or she is doing it right. Give pointers, offer constructive criticism. At the same time, pay a compliment when a task is performed well.

REPLACEMENT PARTS: WHAT TO KEEP ON HAND Despite the robustness of today’s vended laundry equipment, there will be times that parts will falter or fail. It’s at times like those that a store owner either consults his/ her stock of spare parts or reaches out to his/her equipment distributor or parts supplier of choice for the all-important component that’ll get a machine back in play.

American Coin-Op interviewed representatives from a handful of companies that make it their business to supply the parts you need.

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, says Diana Anthony, director 24

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of parts for Tri-State Technical Services, comparison to what a new machine might cost you.”

Waycross, Ga. It’s not unusual for manufacturers to So that they can keep the right parts in stock, it’s important that distributors and provide lists of recommended spare parts parts suppliers stay in touch with the equip- in the installation and maintenance manuals accompanying new equipment, and ment manufacturers.

“It’s a daily thing,” says Chris Mackay, distributors also keep lists of stocking parts director of advertising for Gold Coin on hand for their customers.

Water valves, water valve repair kits, Laundry Equipment, Jamaica, N.Y., who previously ran Gold Coin’s parts depart- door gaskets and belts are among the most ment for roughly a decade. “We’re con- commonly changed parts that Tri-State stantly back and forth with the manufac- recommends its customers purchase and turer for parts orders we’re waiting on or keep on hand, but it doesn’t always happarts we’ll need in the future. … There pen, according to Anthony. “Very few coin are meetings that are scheduled frequently stores stock a lot of parts. It’s kind of a ‘buy with our area sales representative. At that as needed’ industry.”

“A small inventory of parts would not meeting, they’ll discuss what’s going to be available, what’s up and coming … or even hurt,” Mackay says. “You really don’t want a machine down on your busiest the parts that will no longer be available.”

Well-maintained equipment can, in some days.”

“There are certainly some store owners cases, remain operational for decades.

Many times, when a washer or dryer model who do not stock anything,” Marcionetti has been discontinued, suppliers must con- adds. “At the worst time, things happen, usually Friday afternoon. A belt will break tinue stocking parts for years thereafter.

“Manufacturers, I think, are required to on your big machine and you won’t have keep parts seven years,” says D. Michael one. Not having at least the minimum Davis, president and owner of Nashville, amount of stock of wearable parts would Tenn.-based PartsKing, which carries parts be a mistake.” from major vended equipment manufacturers. “We’ll keep them as long as the MAKING THE MOST OF YOUR MARKETING BUCK What are cost-effective methods for promanufacturers have them available. We generally keep our inventory many years moting your vended laundry? The best techniques are often the simplest and least after a product is obsolete.”

An operator should keep track of parts expensive, advises Tari Martin, marketpurchases. Major suppliers maintain online ing communications director for Oshkosh, systems that can be used to review a cus- Wis.-based marketing and advertising firm Continental Creative Services. tomer’s order history.

Martin, who has “I think it is a decade of laundry important, defiindustry marketnitely, to keep track ing experience, says of what you spend you should consider on parts, because these components in that could be an your marketing plan indicator of when for a solid return on it might be time your investment: for you to buy new Signage—In and equipment,” says Out — Exterior signAndy Marcionetti, age must be large, owner of Laundry clear and readable Concepts, an Addifrom a distance, as son, Ill., equipment well as include your distributor whose logo and name. Such main focus is consignage allows ownstruction of new ers to immediately Laundromats in the gain visibility and Chicagoland area. develop brand rec“Gauge how much ognition. you’re spending on (Image licensed by Ingram Publishing) Similarly, interior parts and service in www.americancoinop.com

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signage should clearly advertise services using languages and graphics understood by your customer base. If there are Hmong or Hispanic populations surrounding your laundry, for example, signage should reflect those languages, Martin says.

Website — Invest in the development of a simple, searchable website. If you don’t have one, you are missing out on one of the most impactful marketing tools available, according to Martin. This is the primary way consumers discover and research businesses today. A website brings credibility to your laundry; it shows that you embrace today’s technology and value the customer’s experience.

Social Media — Outlets like Facebook, Twitter, Yelp and Google+ fit laundry marketing perfectly, Martin says. They are free and allow laundry owners to “adver-

laundry have often found ways to pass the time thanks to some spare change and the convenience of vending machines.

Roni Moore, vice president of marketing for the National Automatic Merchandising Association (NAMA), says the $42 billion vending industry is in a “renaissance.”

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 experi-

(Photo: Continental Creative Services)

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

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THE VITALITY OF VENDING Laundromat customers waiting on their

enced with cashless payments and unattended sales ... 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.

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

“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 … to the grocery store across the street or down the block to buy that detergent.”

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tise” and communicate with “friends” and “followers” about news, contests, specials and more. Post at least once a week on all of your social media accounts, and be sure to link to your accounts from your website.

Direct Mail — While it costs a bit more, direct mail is an effective tool for drawing and retaining customers, Martin says. This is because direct mail can be targeted to specific demographic or regional recipients.

Include your logo, name, address, “call to action,” or “offer” on your mailer, and send them at least quarterly. This will help move your laundry to “top-of-mind.”

That way, when a recipient needs to wash a bunch of comforters, it’s your laundry they’ll think of.

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the convenience store.”

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 top-load 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. n For more laundry improvement ideas, or to read the complete stories that were summarized in this article, visit www.american coinop.com.

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Couture’s Fabric Care Leaves Behind Legacy of Quality Colorado Springs dry cleaner/Laundromat closes after 110 years in business

By Carlo Calma, Editor

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fter three generations under his family’s ownership, Colorado Springs, Colo., native Keith Peterson, with his father, Carl Peterson Jr., has closed the family’s drycleaning and Laundromat business, Couture’s Fabric Care—an establishment that has become a mainstay for many locals since it first opened 110 years ago.

“It’s very, very sad for everybody. It’s sad for my coin laundry customers, the drycleaning customers and my employees,” says Keith, who took ownership of the business from his father in 2001.

But despite closing the last chapter to the history of their family business—located in close proximity to Colorado College at 801 N. Tejon—Keith and Carl Jr. recounted the history behind Couture’s Fabric Care and the legacy the father-son team wishes to leave behind in their local community.

CLEANERS AND DYERS The business—then called Couture’s French Cleaners and Dyers—was established in 1904 by Frank Couture, according to Carl Jr., with its original location

situated at 218 N. Tejon.

It wasn’t until 1911 that Carl Jr.’s father, Carl Sr., came to Colorado Springs in search of a job, eventually leading him to the business.

“He was a kid of 18 [with] an eighthgrade education,” says Carl Jr. “[He] was just [a] farm boy, who had no background at all in dry cleaning.”

Despite his inexperience, Carl Sr. would eventually become “quite skilled and knowledgeable about dry cleaning,” Carl Jr. says, later becoming a partner in 1918 with two other men, after Frank Couture left the business in 1912.

Nearly 20 years later—and after acquiring another drycleaning business in town, The Quality Cleaners—Carl Sr. would eventually take full ownership of Couture’s in the late 1940s, according to Carl Jr. A NEW VENTURE At age 21, after serving two years in the U.S. Navy, and with a business education degree from the University of Colorado, Carl Jr. would eventually join his father in running Couture’s in 1956.

“When I [came] back from the Navy, I not only understood business, finance … I

Keith Peterson (left) and his father, Carl Jr., have closed the doors to their drycleaning/Laundromat business, Couture’s Fabric Care, under three generations of family ownership. (Photos: Keith Peterson/Couture’s Fabric Care) 26

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[also had] the background I learned from my father in dry cleaning.”

In 1962, he and his father would eventually relocate Couture’s to its current location at 801 N. Tejon, as well as their other dry cleaner into another part of town.

These moves also paved the way for a new aspect in their business plan—the Laundromat, which they built into both of their new stores.

Regarding the addition of the Laundromats, Carl Jr. explained that he and his father found it to be “complementary” to the drycleaning side of their business.

He adds, “The major advantage was that it allowed people to do [their own] laundry.”

“We felt that it was important to do everything we could possibly do regarding the processing of garments, rugs, draperies … anything that you could think of that needed to be processed,” says Carl Jr. Because of this mentality, he and his father would eventually change the name of the business from its former moniker to Couture’s Fabric Care.

By 1984, business thrived for Couture’s, which had nine locations all over the northeast part of town, according to Carl Jr. The drycleaning side of the business had truck routes that went as far as 50 miles north of the community, and catered to affluent neighborhoods and even processed garments for the local U.S. Air Force Academy.

FROM FATHER TO SON Business continued to expand, according to Keith, who worked at Couture’s during summers while in high school, officially helping his father manage the business after graduating college in May 1982.

By early 2000, however, the company began to downsize, eventually only keeping its 801 N. Tejon location, which is roughly 7,000 square feet in size.

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town all the time and it was kind of hard to find a good manager to run the drycleaning plant and oversee the coin laundries,” says Keith.

“It was still steady and strong,” he says of the business, despite downsizing. “Since we were the oldest dry cleaners in town, everybody came to us and said, ‘Keith, we trust you with our stuff, with our dry cleaning and the coin laundry.’”

The drycleaning side of the business operated Monday through Friday, from 7 a.m. to 6 p.m., while the coin laundry side remained open until 9 p.m., according to Keith.

“I’d always be in the building to service the machines, and quite often, after the cleaners close, I’d still be in the building a little longer,” he says. “I would periodically peek in and out during the weekend. I’m

At its peak, Couture’s Fabric Care had nine locations in the Colorado Springs, Colo., area. After downsizing in early 2000, the father-son owners kept the main location at 801 N. Tejon.

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pretty much here seven days a week.”

The business’ reputation has gained the trust of locals, among them students from neighboring Colorado College.

“Being one block away from Colorado College, all the college students come in and use [the coin laundry] all the time,” Keith says. “The main thing that my dad and grandfather said when we built our buildings is the key thing is location, and this is actually a prime location right next to Colorado College.”

They’ve been wanting this property for quite a long time,” he says.

Keith had been renting the property from the college, having been given only a maximum of two years to stay.

The college, he says, has plans for renovating its library and using his facility as storage for its library and personnel records. To his understanding, the college’s long-term plans are to update several buildings on the block into new residences and businesses.

THE DECISION TO SELL Managing the business by themselves, on top of the difficulty in finding new employees, spurred the decision to sell Couture’s to Colorado College in December 2012, Keith explains.

“Colorado College approached us.

THE FAMILY LEGACY Couture’s officially closed its drycleaning operation Oct. 10, according to Keith, who adds that his Laundromat customers are now unsure of where to do their laundry.

“They said, ‘Keith, we’ll keep coming to you until we see the doors have closed,’” he

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says, adding that the Laundromat side will be closing Dec. 14.

Though he would like to find another location for the business, Keith says his “gut feeling” is to close for good.

“We have always tried to present to the customer a friendly attitude [and] quality work,” Carl Jr. says of the business.

Though Couture’s is closing, the company’s name lives on, according to Carl Jr., who has loaned the business’ original “Couture’s” signage to a new fine-dining restaurant.

“Anybody in Colorado Springs that has learned to know Couture’s and what we stand for … still will see that same [sign], only as a restaurant,” says Carl Jr. “That’s our legacy—to try to present quality, whether it’s dry cleaning or whether it’s food.”

■ DECEMBER 2014

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an outsider’s view

HOW TO BETTER INVOLVE YOUR ACCOUNTANT give him a tour. Nothing makes a memorable impression like a visual memory.

Point out the different sizes of machines and why this distribution exists. Visit the parking area and talk about overflow times. Show him your wash/dry/fold operation. Introduce him to staffers. Let him watch customers process their clothes.

If you have time, take him to a nearby competitor and explain why this competition is weak or strong. Point out the reasons that customers might leave you for this other store. This will educate him about the industry.

MINIMIZE THE MINUTIA First, don’t involve your accountant in the daily minutia of your business. This will take his/her whole attention.

This way, your accountant does not do the bookkeeping. For that task, hire a bookkeeper or train an employee to do the paperwork, or do it yourself using a computer program.

Maintaining the daily/weekly records and becoming an adviser simply will not work out.

INDUSTRY FAMILIARIZATION Periodically, send industry information. Rather than send the full report, summarize the essence. Make it easily comprehensible.

For example, for a report of industry figures, summarize the five important figures, such as average sales, utility percent costs, square-footage revenue, number of employees, and price per wash/dry/fold.

Your summary might include these industry figures alongside your figures so your accountant can see where you stand among the industry.

Don’t do this weekly, for that’s overkill; three or four times a year, send out a packet of information. That would make it manageable, while still being informative.

DISCUSS LAUNDROMAT LOGISTICS Talk about the business to your accountant. You don’t want to take a lot of time, but whenever you are dealing with your accountant, give him a feeling of how things are going.

Discuss what is going on in the business, the problems you are dealing with, and the situations that worry you the most.

Make him understand the basics of the Laundromat trade—the price/cost equation, the expense of the extras (parking, all-night lighting, health insurance for staff), the elasticity of utility costs, revenue distribution by departments, and add-on trade profitability.

Provide him with a break-even analysis—at what daily point is cost paid for. This will help him understand the relationship between fixed and variable costs. Analyze the different marketing strategies you’ve tried and how successful they were.

VISITING THE STORE Encourage him to visit. If you own multiple locations, 28

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CUSTOMER PERSPECTIVE Try to make him a customer. This might be difficult.

He probably does his laundry at home or doesn’t live in the area. But, possibly, he could come once or twice to do his laundry.

This would give him a feel for what it is like being a customer. This would provide insight into what customers expect from their Laundromat, as well as an idea of problems that might arise and thus annoy the average customer.

If this is infeasible, then you might do some laundry in his presence, and talk about all the things that might go wrong.

CALL WITH QUESTIONS Periodically, call him up with questions. Don’t call him every time you have a question, but rather call

▼

Howard Scott

You bring your books to your accountant at the end of the fiscal year. A few weeks later, he sends you statements and tax bills to pay. His job is completed for another year.

Is this you? Do you view your accountant merely as a producer of report cards of your performance and a tabulator of your tax liability? Then you are losing out, for your accountant should be involved in your business. He should be helping you make decisions. He can become a back-seat adviser. Here’s how to alter the relationship:

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an outsider’s view

him up occasionally when you have several different issues to discuss. Bulking your concerns before calling is a good thing because it takes less of your accountant’s time.

Sample questions might include the following: • “I’m thinking of buying a second store and am wondering what financing would work best.”

• “I had store damage, and I’m wondering if you have any suggestions as to how to deal with the insurance company.”

• “I’m considering buying the building I’m in, and I’d like to run over the figures with you to see if buying makes sense.”

UNDERSTAND THE NUMBERS This person is a numbers expert, and he’s the one to go to for advice. If he has any feel for the business, he could be most helpful.

Understand the financial statements and ask questions. Most operators take their financials and drop them in a file. But you really want to comprehend your reports and see how the figures relate to your management.

So, ask why depreciation is so much. Ask why utilities came to 0812aco_Wells Fargo 3:46 Page 1 asset28% of revenue when they 7/17/12 came to 24% lastPMyear.

Is the

to-liability ratio working to maximize leverage, or should you be borrowing more money?

Go over your reports until you really understand what they are saying. Compare years to chart your direction. If you lost money, figure out how you can recover next year, at least on paper.

ACCOUNTANT TO ADVISER Ask your accountant what else he can do for you. Maybe he is a real estate expert and can move you into rental properties.

Perhaps he knows of individuals who would like to work for you and who would make a good fit. Possibly he attends sessions of small-business owners who meet regularly and discuss their mutual problems, which is something that might interest you.

Maybe he partners with a lawyer who could assist you when you require legal services. You never know unless you ask.

By doing these things, you will develop an adviser relationship with your accountant. n Howard Scott is a long-time business writer, small-business consultant, and author of four books.

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11/13/14 3:05 PM

D&M Equipment Company

YOUR MIDWEST DEXTER PARTS & EQUIPMENT SOURCE Serving the industry for Over 40 Years!

CONTACT US TODAY, OPEN 7:30 AM — 4:30 PM CST 1-800-451-2676

OR

www.dandmequipment.com

We are one of the largest Dexter parts distributors in the country with the lowest prices on Dexter parts in the USA. CONTINENTAL DRYER OWNERS - WE STOCK PARTS FOR YOU D & M FEATURED PART 9732-283-009 Washer Door Lock Kit Now Just $72.95 each Converts your old solenoid type to improved motorized kit

9732-191-001 Spin Relay 3PH $95.00 each

9857-116-003 Original IEI Board 3-Start $82.10 each

9536-074-001 Door Lock Solenoid $49.15 each

9732-194-001 Wash Relay $88.20 each

9857-147-010 Control $399.95 each

9571-360-001 Reversing Timer $136.95 each

9571-362-001 Timer $147.50 each

9539-479-009 Temperature Selector Switch $35.10 each

9857-134-001 Gas Valve $120.35 each

9501-004-003 Heat Sensor DL2X30—3.5” $26.90 each

9501-006-001 Heat Sensor Express 9.5” $29.60 each

9122-005-004 Soap Box $29.50 each

9108-095-005 Soap Lid $10.75

9206-164-009 Dryer Glass Gasket $25.98 each

9576-203-002 Stack Dryer Hi-Limit Stat $17.50 each

9379-183-003 Original Water Valve $36.65 each

9875-002-003 Electrode Ignition $25.50 each

9244-082-001 Dryer Door Handle $11.55 each

9244-080-003 Washer Door handle $9.10 each

9913-134-003P 9568-011-001BB Stack Dryer Spider w/ Bearings Door Shaft Assembly $38.50 each $132.95 each

9576-207-008 Safety Shut-Off Thermostat $17.75 each

* Free shipping on sale parts featured in this ad (excluding trunnions, motors, and all oversized packaging) on orders exceeding $300.00. Prices subject to change based on supply. All orders will be shipped via UPS Ground within the continental U.S. Any variant shipping changes will be the customer’s responsibility. Sale ends December 31, 2014.

KNOWLEDGEABLE PARTS STAFF | EQUIPMENT | GENUINE PARTS | SERVICE | FINANCING | CONSTRUCTION & DESIGN | QUICK DELIVERY

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web update

Most popular stories from AmericanCoinOp.com for the 30 days ending Nov. 13 — (WE) denotes Web Exclusive

Top Five news Stories

Columnists/Features

Our Sister Websites

• Huebsch Honors Milton as Store Owner of Quarter

• What Will Make a Customer Want to Switch?

From AmericanLaundryNews.com:

• Attendee Registration Now Open for Clean 2015 (WE)

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

• Alliance Laundry Promotes Westphal to Financial Services Manager

• Eight Things You Can Do Now to Prepare for 2015

• Speed Queen Raises Funds in Fight Against Breast Cancer (WE)

• Answering the Competition

• EIA: Energy, Fuel Expenditures ...

• Judge Upholds 2012 OSHA Citations Against UniFirst • Sorting, Arranging for Better Efficiency

From AmericanDrycleaner.com: • StatShot: Drycleaning Sales Up Across Board in September, Third Quarter (WE)

• Your Views: 2014 Business ‘Somewhat Better,’ Compares to 2013 for Many ...

• Can You Make a Little Change?

Download Magazine Central and read American Coin-Op on your iPad or Android Tablet Step 1: Go to your App

Store and type Magazine Central into search bar

Step 2: Click the

box to install the app (you won’t have to do this again)

Step 3: Open the Magazine Central App

Step 5: Click Download Step 6: Click View

Step 7: Read & enjoy!

Step 4: Type American into the search bar

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

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PRODUCT NEWS «

IPSO INTRODUCES HARDMOUNT WASHER-EXTRACTOR FOR VENDED LAUNDRIES Commercial laundry equipment manufacturer IPSO®, a brand of Alliance Laundry Systems, has introduced its ICN series hardmount washer-extractor for vended laundries, equipped with Maestro controls and IntelliSpin technology.

“Vended laundry operations can optimize efficiency with features including time-of-day pricing and slow drain and leak detection,” says Kathryn Rowen, North American sales manager for IPSO. “Our machines are designed with heavyduty usage in mind, so store owners can be confident equipment will stand up to customer demand.”

The Maestro V one-touch control system comes in 20-, 30-, 40-, 60-, 80and 100-pound capacities. The feature provides for time-of-day pricing, which allows operators to set two price points, while users can choose from six wash cycles, plus optional cycle modifiers for

pre-wash and extra rinse, the company says.

Its IntelliSpin technology, available on variable-speed 20- to 80-pound models, utilizes up to 200 G-force extraction speed and can remove more water from clothes and linens, the company says, which reduces utility costs and drying times, resulting in “fewer bottlenecks at the dryer.”

Slow-drain- and leak-detection technology also comes standard, which the company says helps conserve water and reduce preventative maintenance. Operators can also use the infrared communications port to monitor and program equipment from a PC or laptop.

Made of welded steel, stainless steel and cast iron, the ICN washer-extractors come with a 10-year warranty on major parts and a three-year warranty on the entire machine.

www.ipso.com |

800-USA-IPSO

«

AYTAG ENERGY ADVANTAGE TOP-LOAD WASHER M FEATURES COMPANY’S POWERWASH CYCLE

Maytag® Commercial Laundry says its Energy Advantage™ top-load washer delivers the “best cleaning available” through its exclusive PowerWash Cycle.

Engineered to remove the toughest stains, the cycle includes high-performance cleaning action, hotter water and a thorough rinse, the company says, offering improved performance for customers and enhanced profitability for owners and operators.

The PowerWash Cycle is one of 48 revenue-generating options available on the top-load washers, Maytag adds.

“The Maytag Commercial Laundry

top-load washer delivers superior wash capability and can help boost profits,” says Bob English, general manager at Maytag Commercial Laundry. “The PowerWash Cycle delivers incredible cleaning performance end-users demand.”

The Energy Advantage top-load washer is available in coin-slide and non-coin models, and are compatible with Maytag Connect 360°™, a cloudbased laundry room communication and management system, which the company says allows owners to manage multiple aspects of their business from a single portal.

www.maytagcommerciallaundry.com |

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800-662-3587

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advertisers’ index Advertiser

Page

Advertiser

Page

AC Power........................................................................ 35

Laundry Concepts ........................................................... 33

Clean Show 2015.............................................................. 29

Maytag Commercial Laundry ........................................... 3

Continental Girbau......................................................... IBC

Mountain Electronics....................................................... 38

D&M Equipment........................................................ 17, 31

n Supply............................................................................ 13

ESD Inc............................................................... 20, 21, BC

New York Laundry Equipment........................................ 37

Firestone Financial............................................................ 38

NIE Insurance.................................................................... 7

FrontecStore.com.............................................................. 38

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

Gold Coin Laundry Equipment ....................................... 15

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

Great Lakes Commercial Sales ........................................ 38

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

HHC Electronic Service................................................... 39

Super Laundry................................................................... 9

Huebsch......................................................... FC, 23, 25, 27

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

Imonex Services................................................................ 11

Wells Fargo Insurance Services........................................ 30

AC POWER COMPANY, INC

Commercial Laundry Solutions 77 Steamwhistle Drive, Ivyland, PA 18974

Industry Leading Distributors

For Over 38 Years!

LAST CALL FOR 2014 PRICING • YEAR-END OFFERS GOING ON NOW! ORDERS MUST BE IN BY DEC 31, 2014.

CALL US TODAY FOR YOUR EQUIPMENT QUOTE. Authorized Dealers for: • American Dryers • Card Concepts • Sol-O-Matic

• Vend-Rite • Internet Kiosks • All other accessories

The Best Equipment Available at the Best Prices Local Service, Parts and Equipment Available in PA, NJ and DE

800.362.1900 • www.acpowerco.com • info@acpowerco.com www.americancoinop.com

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PRODUCT NEWS «

CONTINENTAL GIRBAU PUBLISHES VENDED LAUNDRY DEVELOPMENT GUIDE

Continental Girbau has published its Vended Laundry Development Guide for vended laundry investors and shopping center owners.

The guide introduces investors, commercial brokers, developers and shopping center owners to the benefits and intricacies of developing a Continental vended laundry, the company says.

“As a profit-producing stand-alone business, or primary/secondary in-line anchor, Continental vended laundries are unique in their equipment, ser-

vices, technologies and offerings,” says Joel Jorgensen, Continental vice president of sales and customer services.

Jorgensen says the guide details years of experience and a “best practices approach” to vended laundry development.

The guide encompasses information about branding, high-speed equipment, financing, store management, creative design services, hands-on operations training, alternative laundry services, efficiency, and marketing, according to the company.

www.continentalgirbau.com | Standard_half_horz

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800-256-1073

Page 1

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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.

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

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

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

VISIT OUR WEBSITE TO SEE MONTHLY SPECIALS

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BUSINESS OPPORTUNITIES VENDING MACHINE SALES—Nationwide. In business since 1960. Machines, coin changers, soap venders bulk. Place machines near your business & grow. 100% Financing. Vending Replacement Parts. Call the rest, then call the best.

Phone or Fax 800-211-1066, 800-917-VEND. www.vendingpriceline.com

COIN-OP FOR SALE Laundromat Plaza for sale—Buy the laundromat business only, consisting of 26 washing machines from single load to 80#, and 25 dryers. Almost all machinery is 5 yrs. old or newer, and housed in a 3150 sq. ft. building. Asking $150k, or buy the whole plaza including nearly one acre of land, consisting of the laundry and an additional 1800 sq. ft. which can be subdivided into one, two, or three rental spaces for $450K. Located in Charlton, MA. Owner will help with financing. Call Paul or Nazra at 508-248-3636 or 508-769-3451, or email Gagner73@aol.com

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Equipment For Sale

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www.firestonefinancial.com 1-800-851-1001 ext. 44 | laundry@firestonefinancial.com

FOR SALE Modern air conditioned dry cleaners. 5 newly equipped Laundromats, 2 with call office.

All with real estate. Tomah and Sparta WI. Jerry Keene Owner 800-362-3305 x 202 or 608-343-2688

PARTS FOR SALE

Bearing Job: (Most States in the Northeast Service: CT, NJ, NY, PA, DE, MD, NH, RI, MA, VT) Wascomat, Alliance, Dexter, etc.

Motors, Baskets, Gas Valve, Computer, Doors, Front & Side Panels FL & GA. Call Victor 321-946-9890

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

Call for price sheet.

Reeco Timer Co., 2860 Kirby Circle, N.E., Suite 14, Palm Bay, FL 32905, 888-952-1889.

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11/14/14 8:46 AM

SERVICES AND SUPPLIES

CARD READERS FIXED

HHC

ELECTRONIC SERVICE

14844 Las Tunas Drive, Hacienda Hts., CA 91745

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

WASHERS and DRYERS COMPUTER BOARD REPAIR Dexter VFD Inverter (Delta Motor Control) All Models (9375-xxx-xxx). . . . . . . $225.00 VFD-A & VFD-B (9732-237-001) . . . . . . . . call Stack Dryer (9875-xxx-xxx) . . . . . . . . . $65.00 Coin Accumulator . . . . . . . . . . . . . . . . $55.00 Wascomat / Electrolux Inverters (MotorControl) All. . . . . . . . . .call Maytag Computers . . . . . . . . . . . . . . . . . . . . . $65.00 23004118 . . . . . . . . . . . . . . . . . . . . . . . . . call W10343020 . . . . . . . . . . . . . . . . . . . . . . . call 33001129 . . . . . . . . . . . . . . . . . . . . . . $85.00

SERVICES AND SUPPLIES WASCO GEN 5 DOOR LOCKS & TIMERS REBUILT Door Lock $75 • Gen 5 & 6 Timer $85 Gen 4 Timer $75 • Continental Timer $89 DRYER COMPUTER BOARDS ADC Stack $60 • Single $45 Huebsch SQ Board $45 Huebsch Old Style Board $55 Stack Dexter/Continental $65 Washer Coin Boards $65 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

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. 1490 Boston Rd., Ground Floor, Bronx, NY 10460 ONE-YEAR WARRANTY ON ALL REPAIRS Please call 718-742-4137 Or 718-733-4313 Or Visit our website at www.metrolc.com e-mail us at metrolc@hotmail.com

SINGLE-COPY SALES

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

To order any current or back issue of American Coin-Op by phone, or to subscribe, call our circulation customer service department at:

1-630-739-0600

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DECEMBER 2014 AMERICAN COIN-OP 39

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newsmakers

Alliance Laundry Systems Promotes Westphal Alliance Laundry Systems has promoted Matthew Westphal to financial services manager for all of the company’s finance groups, the company reports.

Previously, Westphal served as manager of Speed Queen Financial Services. In his new role, he will work with Alliance’s finance groups, including Huebsch Financial, IPSO Finance, Speed Queen Financial Services and UniMac Funding, according to Alliance. He will be responsible for all equipment loan underwriting and origination, finance program and promotion development, marketing services support, and distributor and customer relaWestphal tionship development.

Todd Rice, director of Financial Services for Alliance Laundry Systems, says Westphal has been “instumental” in the growth and development of the company’s distributor finance programs.

“I look forward to growing with Alliance with this new opportunity, while expanding current financial solutions and developing additional services that will help our distributors and customers succeed,” says Westphal.

A graduate of the University of Minnesota, Westphal worked for U.S. Bank and Ameriprise Financial prior to joining Alliance.

Queens Chamber Honors Automatic Industries’ Savino-Erichsen The Queens (N.Y.) Chamber of Commerce recently honored Denise Savino-Erichsen, president of multi-housing laundry equipment and services provider Automatic Industries, as part of its 2014 Business Person of the Year Awards.

Since 1994, the chamber has recognized “outstanding Queens business leaders and entrepreneurs,” honoring local businessmen and businesswomen in different categories. Savino-Erichsen was honored as the Chamber’s “Woman-Owned Business Champion.”

Founded in 1971 by her father, and the company’s current CEO, Bob Savino, Automatic Industries, based in Hempstead, N.Y., has been providing self-service laundry equipment and services to multi-housing residences throughout the neighborhoods of Queens.

Savino-Erichsen has been with the company for more than 20 years, getting her start in the family business when she was in college. As president, she now oversees the company’s day-to-day operations, managing Savino-Erichsen a total of 26 full-time employees.

“I’ve always taken great pleasure in this business,” says SavinoErichsen. “It was a great honor to follow in my father’s footsteps.

He was the one that had the vision and the foundations for this.”

She was nominated for the award by one of her customers, Mary Vauruska, board president of the Brulene Cooperative 40

American Coin-Op DECemBER 2014

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Apartments in Jackson Heights, N.Y. “Honestly, when I found out that I was the recipient, I said, ‘I kind of have to come clean. This is not an award for an individual, but for an entire company,’” says Savino-Erichsen.

Huebsch Honors Milton as Store Owner of the Quarter Huebsch has recognized Reginald Milton, owner and founder of South Memphis Alliance (SMA) Laundromat and Resource Center, as its latest Store Owner of the Quarter.

Founded in 2000, SMA aims to improve the health, knowledge and stability of community members through advocacy and mentoring, says Huebsch. When the Laundromat adjacent to the non-profit organization became available, Milton took ownership of the Memphis, Tenn., facility.

“We noticed that many of the people who needed our support were also customers of the Laundromat,” says Milton, who saw the value in making the facility a place where “community members could do more than just laundry.”

Distributorship L&M Laundry Services helped Milton outfit the store with new Huebsch brand washer-extractors, top-loaders, stack tumble dryers and high-capacity tumble dryers.

In addition to its Laundromat (which is on course to generate as much as $150,000 profit this year, according to Huebsch), the organization also provides free social services, including literacy training, job search support, eye exams and HIV testing.

“Reginald’s store is evidence of how a Laundromat can empower a community and better the lives of its customers beyond clean clothes,” says Kathryn Q. Rowen, Huebsch North American sales manager. “Huebsch is honored to be part of the SMA success story, and we are proud to recognize Reginald as Store Owner of the Quarter.”

“The staffs of L&M Laundry Services and Huebsch are so knowledgeable, and I do not think the success of this project could have happened without them both,” says Milton. n

Huebsch recognized Reginald Milton (left) as its latest Store Owner of the Quarter, for his SMA Laundromat and Resource Center. Milton reached out to Greg Rogers (right) of L&M Laundry Services to outfit the store with Huebsch brand equipment. (Photo: Alliance Laundry Systems) www.americancoinop.com

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