American Coin-Op - June 2015

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CLEAN SHOW REPORT

I N S I D E : J U LI N Y S 2I D0 E0 :5 J U N E 2 0 1 5 ABOVE: OUR WRAP-UP OF CLEAN 2015 IN ATLANTA

GET THE BEST OFFER WHEN IT’S TIME TO SELL YOUR BUSINESS

DOES YOUR LAUNDRY’S NAME STAND OUT FROM THE REST?

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JUNE 2015 VOLUME 56 ISSUE 6 COVER STORY 2015

The 2015 edition of the Clean Show officially drew more than 11,000 attendees. Did you miss this year’s show? Don’t worry! Experience the exhibition through our Clean Show Report, featuring a sampling of the companies that exhibited in Atlanta, their thoughts on the event, and the news they shared with attendees.

CLEAN SHOW REPORT

I N S I D E : J U LI N Y S 2I D0 E0 :5 J U N E 2 0 1 5

INSIDE 22 SELLING A COIN LAUNDRY

ABOVE: HIGHLIGHTS AND FULL

CLEAN 2015: FIRST FROM THE FLOOR IN ATLANTA

DOES YOUR COIN LAUNDRY’S NAME STAND OUT

COLUMNS

WWW.AMERICANCOINOP.COM

No matter the reason why an operator wants to put his/her coin laundry up for sale, all have one goal in mind—getting the best price/offer for the business. We reached out to experts in the financing and commercial real estate industries for tips on how to ensure the selling process goes smoothly.

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26 ‘COMMITTED TO THE COMMUNITY’

Discover how The Laundry Café co-owners Brian Holland and Tyrone Akins manage their Philadelphia-based stores, and how they utilize their space to create community-based programs to serve locals.

8

30 DOES YOUR LAUNDRY’S NAME STAND OUT? “A rose by any other name is a rose. But we’re not talking flowers. We’re talking business,” writes columnist Howard Scott. In this month’s column, Scott recounts his trip to New Orleans, and how a local coin laundry’s moniker changed his viewpoint on the importance of having a unique business name.

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DEPARTMENTS 4 VIEWPOINT 6 YOUR VIEWS SURVEY 32 WEB UPDATE

37 AD INDEX 38 CLASSIFIEDS 40 NEWSMAKERS

34 COIN-OP 101: FIVE CONSIDERATIONS

WHEN ACQUIRING A LAUNDROMAT

PWS Co-Owner Brad Steinberg provides his insight to investors looking to purchase a coin laundry business.

36 ‘ALL THINGS GOOGLE’

Jamie Sewell, marketing consultant and former CLA marketing director, discusses ways operators can use the search engine’s various tools to market their laundry online.

22 A CLOSER LOOK The record of a store’s cash flow is a key document during the selling process of a coin laundry business.

Cover Images: Bruce Beggs; Carlo Calma; Riddle & Associates

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Quality. Durability. Affordability.

All of the Above.

You don’t have to choose when you choose a Milnor. Since 1959, Milnor has built rugged, industrial coin machines – the workhorses of any store. And now, Milnor’s MCR series washers offer Milnor quality in a cabinet style. Four sizes (20-60 lb. capacities) offer the speed and reliability you have come to expect from Milnor. Seven wash formulas include our ultraefficient GreenTurn FormulasTM that save water and maximize clean. Programmable vend prices, a single-motor inverter drive and easy-to-use controls help busy stores maximize profits and minimize maintenance. You can have it all, from Milnor.

To find out more about Milnor or about financing with Milnor Capital, visit www.milnorcoin.com, call 800-469-8780 or email milnorinfo@milnor.com.

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Industrial Finance Solutions

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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

DISPATCHES FROM CLEAN

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

ADVISORY BOARD CLEAN SHOW WRAP-UP It’s hard to believe that another edition of the Clean Show has come and gone.

What I find even more astounding is the fact that I was among the 11,264 attendees who made it out to the Georgia World Congress Center for this year’s show.

Clean 2015 was truly an experience.

The live demos of various equipment on display, the networking opportunities, and the hours of educational sessions that the show provided were invaluable to all professionals in the laundry Carlo Calma and drycleaning industries.

If you couldn’t make it out to Atlanta, let our in-depth Clean Show Report, starting on page 8, give you a glimpse of all the action that happened on the show floor, and the news and brand-new products that some of the companies exhibiting debuted at this year’s show.

With 437 companies having exhibited, our roundup just skims the surface of all the happenings and new-product announcements that occurred at the show.

So, be sure to follow American Coin-Op’s upcoming issues, as well as online at www.AmericanCoinOp.com, for more product announcements from these companies, and many more!

Until next time, Carlo Calma Editor

Kurt Archer Wayne Lewis

Ann Hawkins Kathryn Q. Rowen

ADVERTISING

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 56, 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. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2015. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

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INDUSTRY SURVEY

MANY OPERATORS ‘SATISFIED’ WITH CURRENT DISTRIBUTOR Half of the coin laundry owners and operators surveyed in May’s American Coin-Op Your Views survey say they are “satisfied” with their relationship with their distributor.

While roughly 27% are “extremely satisfied” with their distributor, 13.6% are indifferent (“neither satisfied nor dissatisfied”).

Equal shares of 4.6% say they are either “dissatisfied” or “extremely dissatisfied” with their distributor.

The majority of respondents say that if the opportunity arose, it’s “neither likely nor unlikely” (28.6%) or “unlikely” (28.6%) that they would change distributors.

Roughly 14% say it is “highly unlikely” that they would change distributors.

Close to 19% say it is “likely” that they will change distributors if given the opportunity, while 9.5% say it is a definite possibility (“highly likely”).

Regardless of their distributor relationship status, the majority of respondents (72.7%) say they rely on the companies for parts ordering/requests, alongside maintenance/repairs (50.0%), equipment leasing/financing (45.5%), pricing strategies (18.2%) and/ or store layout/design (13.6%).

Roughly 18% say they consult with their distributor for “other” reasons, like customer service and technical support.

Close to 64% of respondents say they attend their distributor’s open houses/service schools, while 36.4% say they do not.

At these events, the majority of operators (54.6%) say they look forward to the “deals/specials on equipment.”

Roughly 23% of operators say they most enjoy the “technical/operational advice,” while 13.6% attend for the “equipment demonstrations.”

While no respondents reported looking forward to the “networking opportunities,” 9.1% attend for “other” reasons.

“I wanted to replace almost all my washers,” one operator writes. “My distributor didn’t have a good salesperson, so I changed to [another] who actually showed up, followed up and answered all my questions.”

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

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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Clean 2015 attendance totaled 11,264 attendees, according to show management Riddle & Associates. Here, guests line up to register and await their entrance onto the show floor. (Photos: Carlo Calma; Nathan Frerichs; Riddle & Associates)

Clean Show Report Exhibition draws 11,264 attendees, features 437 exhibiting companies

By Carlo Calma, Editor

T

“Judging by the positive energy in the hall, the garment and textile care industry is thriving in 2015,” says Brian Wallace, CEO and president of the Coin Laundry Association, and Clean 2015 chair. Here, Wallace welcomes attendees during the show’s grandopening ceremony.

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he numbers are in, and the 2015 edition of the Clean Show officially drew 11,264 attendees, including people from the United States and 88 foreign countries, according to show manager Riddle & Associates.

This figure represents an increase in attendance from the 2013 show in New Orleans, which drew 10,300 attendees, and is comparable to the 11,200 attendees from the 2011 Clean Show in Las Vegas.

A total of 437 companies exhibited at this year’s show, using 195,400 net square feet of booth space.

Registration numbers show more than a 9% increase in attendance from Clean 2013 in New Orleans, and there was approximately a 6% increase in exhibit space from www.americancoinop.com

5/13/15 2:35 PM

NIE INSURANCE NIE came into this year’s Clean Show with news that it has expanded its insurance program to 14 additional states, bringing the total number of states it serves to 48, according to the company.

In addition to meeting with current store owners, the company saw a lot of new investors at this year’s show, according to Ann Hawkins, company vice president.

“They’re here doing their homework, which is great because some people go into the coin laundry business and just buy it

from the previous owner,” says Hawkins.

“They seem like they’re committed to doing this, and they’re here because they want to do it right. So, that really pleases me, that they’re doing their homework before buying.”

“This show has been the best show in many years,” she adds, saying that the company came away from the show with “more leads than [they’ve] gone home with” in recent shows.

The St. Louis, Mo.-based company has been providing insurance to Laundromat operators and dry cleaners since 1915.

▼

the 2011 show in Las Vegas, according to Riddle & Associates.

“Clean 2015 exceeded our expectations with huge crowds, dynamic exhibits and the kind of education and networking that may only be found at the Clean Show,” says Brian Wallace, Clean 2015 chair, and president/CEO of the Coin Laundry Association, one of the Clean Show’s five sponsoring associations.

“Judging by the positive energy in the hall, the garment and textile care industry is thriving in 2015,” says Wallace.

In addition to the various exhibits displayed, attendees were treated to approximately 33 hours of educational sessions at Clean 2015.

The show packed a punch, with many companies using the exhibition as a platform to connect and network with current and prospective clients, debut its brand-new offerings, or to promote and exhibit its established product lines.

The following report describes just some of the companies and the products that they exhibited, as well as their overall experience at this year’s Clean Show. With 437 companies having exhibited, this article isn’t intended to be all encompassing.

Be sure to follow American Coin-Op in print and online (www.AmericanCoinOp. com) during the coming months for more product announcements from these companies, as well as others.

PELLERIN MILNOR The Kenner, La.-based company had a “productive” Clean Show, connecting with both customers and its network of distributors, according to Gary Gauthier, Milnor’s national sales manager for vended laundries.

On the vended laundry side, the company had its line of coin-operated washers on display, ranging from 20 to 60 pounds in capacity.

The company also promoted its line of coin-operated dryers, including the 30-pound-capacity, stacked M3330C, and the 50-pound-capacity M50EDC. Looking ahead, the company is on track to debut a new vended, 80-pound-capacity coin washer, which Gauthier says Milnor will roll out by the fourth quarter of this year.

“We’ve had a lot of interested attendees stop by asking for information,” says Gauthier.

“What I’m seeing at this show is a lot of retooling. We have some people looking at new stores, but we’ve had a lot of people that are looking at either replacement machines [or] a retool of an existing store, and that’s what we’ve seen a lot of at this show,” he adds. www.americancoinop.com

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From its vended laundry segment, Pellerin Milnor had its line of coin-operated washers on display, ranging from 20 to 60 pounds in capacity.

(From left) Ann Hawkins, vice president; Bob Aikin, president; and Kim Curtis, insurance agent, represent the NIE Insurance team at Clean 2015.

JUNE 2015

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ADC American Dryer Corp. (ADC) had a selection of its EcoWash vended washers on display at this year’s show, ranging in capacity from 25 to 60 pounds.

A big focus for the company this year is the international launch of its IntelliLint™ technology, which will be available in its full lineup of i-Series dryers ranging in capacity from 35 to 120 pounds.

The patent-pending feature removes lint automatically by capturing it in water, and automatically disposing of the lint/water mixture in a standard drain, eliminating the need for lint screens, according to the company.

“IntelliLint addresses the real-world laundry challenge of removing lint from dyers,” says Tony Regan, vice president of global sales for ADC. “It will streamline daily maintenance for laundries and on-premise operations, saving time and money.”

The IntelliLint feature also reduces exhaust duct lint bypass by up to 50% as compared to standard dryers, promoting improved operating efficiency, the company adds.

“IntelliLint is the most recent of a long line of engineering-driven solutions ADC has launched to help our laundry partners be more successful,” says Chris FitzGerald, company president and CEO. “We’re proud of our history of innovation in the commercial laundry marketplace for over 50 years, and looking forward to more innovations to come.”

A big focus for ADC at Clean was to promote the international launch of its IntelliLint™ technology, which will be available in its full lineup of i-Series dryers, which range in capacity from 35 to 120 pounds.

STANDARD CHANGE-MAKERS

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Dexter debuted two new offerings at Clean 2015: the T-650 Express Washer and the Express T-750 stack washer-dryer (pictured left). that we will see a positive return from participating at Clean ’15,” he says.

DEXTER “The world is quickly moving in the direction of mobile- and technology-driven products,” says Dexter, which promoted its new DexterLive.com web app.

The web app works in concert with the company’s DexterLive controls, which is featured on its lineup of C-Series vended washers and dryers.

DexterLive.com allows operators to set up cycle and promotional pricing options.

Its new Remote Access feature helps store owners provide “instant customer service,” allowing them to remotely reboot a machine to solve or troubleshoot an issue, according to Dexter.

Among other new offerings the company debuted at Clean was the T-650 Express washer, a 40-pound-capacity machine that features a front soapbox, and replaces the company’s 50-pound-capacity washer. The T-650 Express Washer is set to hit the market in September.

Another new offering debuted at Clean 2015 is the Express T-750 stack washer▼

Standard Change-Makers has been designing and manufacturing currency changers for various self-service, coinoperated industries, including laundry, car wash and vending, since 1955.

Michael J. Coons, vice president and national sales manager, says he was impressed by the quality of attendees at Clean 2015.

“The people that were there were serious about learning more and doing their due diligence on new technology, and trying to find ways of being more efficient in their operations,” says Coons. “The discussions are interesting, and it’s always fun to hear about some of the creative solutions some very enterprising owners have developed to meet their needs.”

Though he says he believes traffic was down from previous shows, Coons says the company is looking forward to turning the leads they got from the show into committed customers.

“We had good quality leads, and I think

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dryer, described as a “space-saving combination unit,” featuring “heavy-duty bearings in cast iron bearing housings, welded steel spiders and shafts, and rugged frame and cabinet designs.”

The washer features a 200-G-force extraction speed and is backed by a 10-year limited warranty. The dryer comes with a five-year limited warranty.

“The attendance and excitement at the show far exceeded our expectation, and it turned out to be one of the best shows to date,” Dexter says in a post-show statement. “There was a great amount of traffic and customer engagement, which provided a wonderful platform to showcase our new lineup of products.”

CARD CONCEPTS

SPEED QUEEN The Alliance Laundry Systems brand displayed its lineup of hard-mount washerextractors, which are available in 20-, 30-, 40-, 60-, 80- and 100-pound capacities.

Also on display was its selection of stack tumble dryers, which are available in 30and 45-pound capacities.

In terms of the trends he’s seen among customers, Dan Bowe, national sales manager, says customers are flocking toward the larger-capacity machines, as they not 12

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Card Concepts General Manager Steve Marcionetti describes his company’s LaundryCard X-Changer payment system to attendees.

Speed Queen highlighted its selection of hard-mount washer-extractors, which are available in 20-, 30-, 40-, 60-, 80- and 100-pound capacities. only speed up the laundry process for customers, they benefit the operator.

“It’s the store owners generating more revenue per square foot. The higher the capacity of the machine, the more profitable that machine is for the store owner,” says Bowe.

Speed Queen representatives met with a variety of attendees, among them new investors specifically from the commercial real estate industry.

Bowe explains that these investors have become a real focus for the company in recent years.

“We wanted to brand what today’s Laundromat looks like with the big, commercial real estate players,” says Bowe.

“The new investors today, like at this show, I’ve seen [are] more high-net-worth people [than] at any other show,” he adds.

“The caliber of people coming into our industry is incredible.”

CACO MFG./SOL-O-MATIC CACO Manufacturing has been producing fiberglass and laminate Laundromat furnishings since 1960 under the Sol-OMatic name.

The company had its diverse product line on display at the Clean Show—from folding tables of varying sizes to seats and tabletops that come in a broad spectrum of granite-based colors.

“When [customers] enter our booth, sometimes they’ve never seen the true,

▼

Card Concepts Inc. promoted various company initiatives to attendees at this year’s Clean Show. Included among them was a push on mobile applications and loyalty programs, according to Steve Marcionetti, general manager.

The Addison, Ill.-based company had its Fascard and LaundryCard payment systems on display at the show, which Marcionetti says drew interest among attendees.

“Everybody’s interested in some type of card payment—whether they want to eliminate their coins completely, or whether they want to take card along with their coins, that’s kind of the discussion that’s been going on at our booth,” he says.

“It’s pretty evenly matched. I think if [operators are] building a new store, they’re really looking at a completely coinless … option. But if they’re an existing store, they seem to be drawn toward hybrid solutions.”

But in terms of Card Concepts’ direction in 2015, where is it headed?

“I think it’d be more heavily pushed on mobile, trying to get more mobile payments, and just focus on providing store owners tools to be competitive,” says Marcionetti.

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R&B WIRE PRODUCTS R&B Wire Products has been manufacturing wire, tubular, poly and vinyl bushel products, serving the coin laundry, healthcare and hospitality industries, among other industries, since its inception in 1946.

At Clean 2015, the company unleashed its 200H “Big Dog” model, which has a 6-bushel capacity, and comes standard in blue, gray or chrome basket color options.

R&B Wire also promoted its new raceway guard on all of its laundry carts, which Frank Rowe, vice president of sales and marketing, says protects from detergents and other debris dripping down into the raceway system, or clogging up the casters.

Among other additions is the company’s new, “enhanced” bumper on its carts, which Rowe explains provides more cushioning to protect a laundry’s machines.

Regarding the show, Rowe comments, “The quality of the customers and the attendance was very strong for us.”

“We saw a lot of our distributors get some fairly large orders,” he adds. “We sell through distributors, and for us to be here to support them … is really important.”

In terms of goals for 2015, Rowe says the company is continuing to grow its business not only in the coin laundry industry, but to also diversify its product line and support its healthcare and hospitality line, debuting a new vinyl basket cart with a “fully zoned, air-cushioned, non-marking” bumper.

“The biggest thing for anybody that comes through here is to see [the product line],” says Rowe.

“You can’t get to the breadth of people you’d like to without a forum like [the Clean Show].”

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MONARCH COIN & SECURITY Founded in 1903, Monarch Coin & Security has been producing coin slides and money boxes to various industries for more than 100 years.

The company had its wellestablished product lines on display at Clean 2015, including its tokens; coin chutes and slides; coin boxes; coin laundry kits; service door locks and accessories; coinoperated door locks; and meters and timers.

In terms of the company’s focus moving forward, Eli Hall, operations manager, says Monarch will be forging ahead to push its main products, like its universal coin locks and vertical slides.

SETOMATIC SYSTEMS After Clean 2015 R&B Wire unleashed its new in Atlanta, Michael 200H “Big Dog” model, which has a 6-bushel Schantz, the presi- capacity, and comes standard in blue, gray or chrome dent of Setomatic basket color options.

Systems, says the company will be “following up on all of the momentum” the team has built in the cashless payment systems segment of the industry.

Setomatic showcased its SpyderWash hybrid payment system at this year’s show, with a focus on Near Field Communication (NFC) mobile wallet payments.

“With the rollout of Apple Pay late last year, and the resurgence of Google Wallet, mobile payments have hit the payment world by storm,” says Schantz.

The company’s integration of NFC technology into its payment systems have piqued the interest of Clean Show attendees, according to Schantz.

“They like the idea of being Setomatic Systems — SpyderWash able to use coin and card on the same machine, [or their] credit or showcased its SpyderWash hybrid payment debit card,” says Schantz. “That system, with a focus on its integration of Near has been the focus of the show …

Field Communication (NFC) mobile wallet payments. ▼

three-dimensional colors,” says Randall Chaffee, CEO of CACO Manufacturing.

“It gets more exciting. It’s interesting that a Laundromat, now, is interested in colors.”

In addition to promoting its folding tables at this year’s show, the company focused on pushing its newer granite-based colors.

To achieve the granite look, CACO Manufacturing partnered with a company called Arizona Cultured Stone, according to Chaffee. “[We work with] a genuine, Earth-based product. It is stone dust; it’s a powder, and we spray that powder with our gel coat resin and it created that faux granite look,” he says.

In addition to producing furnishings for Laundromats, the Houston-based company provides solutions to other service-related industries, from amusement parks to retail stores, and in recent years has branched out to the restaurant industry.

www.americancoinop.com

5/13/15 2:35 PM

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and I think it was [also] two years ago. …

But now, everybody is asking about Apple Pay, so it’s definitely a good competitive advantage.”

Setomatic also introduced several new features and product enhancements at the show, included among them a “machine availability” application called SpyderWatch, as well as its new Laundry Card “Reload and Purchase” Kiosk.

HUEBSCH

ESD It was all about “synergy” at ESD’s booth at Clean 2015, as the company debuted its new Synergy Wireless Card System for vended laundries.

The system does not rely on an Internet connection to operate, but instead utilizes wireless communication to 16

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One of the highlights Huebsch focused on at Clean 2015 was its three new control panel overlay options on its cabinet hard-mount washer-extractors, single tumble dryers and stacked tumble dryers equipped with the company’s Galaxy™ 600 controls. locally connect card-slide readers, mounted on washers and dryers, to an on-site server/computer, according to the company.

“Synergy is perhaps the industry’s most diversified and reliable electronic payment system,” says Adrian Zettlemoyer, director of technology integration.

Customers can load value onto their magnetic stripe loyalty cards using a Value Transfer Machine (VTM), which can take cash, debit/credit cards, Electronic Benefits Transfer cards, Europay MasterCard Visa, and mobile wallet apps such as Google Wallet, Apple Pay and Samsung Pay. Once loaded with value, customers can swipe their loyalty cards at the washer/dryer to operate equipment, according to the company.

“It’s been a tremendous show for us,” says Wayne Lewis, sales manager.

“Some of the customers that I’ve seen here and ESD debuted its new Synergy talked to I saw two years Wireless Card System for vended laundries at Clean 2015. ago,” he adds. “They’ve been researching and [are] related to vended laundry development, at a point where [they’re] ready to make a equipment and controls,” says Joel change.”

Jorgensen, Continental vice president of sales and customer services, regarding the CONTINENTAL GIRBAU company’s Clean 2015 experience.

“Booth traffic volume was strong Continental debuted two new offerings at throughout the show, and the Continental the show: the RMG070 G-Flex washer and team fielded a historic number of inquiries the EH060 ExpressWash washer.

▼

“I can’t tell you that there was one investor that was like another,” says Kathryn Rowen, Huebsch North American sales manager, on the types of attendees her company met with at Clean 2015.

Whether they were retirees or young professionals, they all had one thing in common, according to Rowen: “They’re voracious learners.”

“Our distributors were in our booth working with these folks who just had a million questions,” says Rowen. “I haven’t seen that sort of true, real engagement to learn in a long time.”

One of the highlights Huebsch focused on at Clean 2015 was its three new control panel overlay options on its cabinet hardmount washer-extractors, single tumble dryers and stacked tumble dryers equipped with the company’s Galaxy™ 600 controls.

The three colors/themes are called Cityscape, Citron and Slate.

A polished chrome door handle is now standard on the company’s new washerextractors, but can also be added to existing machines.

A Halo chrome door ring is another aesthetic upgrade that is optional on new washer-extractors, single tumble dryers and stacked tumble dryers, and can also be installed on existing machines.

Regarding the inspiration behind the initiative, Rowen says, “We wanted equipment that was shiny, it gives the perception [that] it’s newer, it looks newer longer, and that’s something that we feel provides a tremendous value to a store owner.”

“All of that was rooted in the influence, and, really, the push to create a different sort of selling experience that was very visual, and allow that store owner … to really have a customized look and feel,” she adds.

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5/13/15 2:35 PM

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The company had several of its established product lines on display at Clean 2015, including the WALLNAT G2, a wall-hung direct vent water heater; the Retriever, a stainless steel tank and heat exchangers, which come in 80- or 119-gallon models with one or two coils available; and the FlexFlame 94, a water heater that achieves 94% thermal efficiency and can be used with or without a hot-water storage tank.

Dan Orr, general manager, says that the company met with a lot of interested attendees at this year’s show.

“In the 2013 show, I didn’t have people coming back saying, ‘Did you get my quote done yet?’” he says. “That’s something that I’ve had here … and I’ve gotten orders on the floor, so this has been an incredible show.”

Continental Girbau debuted two new offerings at Clean 2015: the RMG070 VEND-RITE MFG. Vend-Rite Mfg. has G-Flex washer and the EH060 ExpressWash washer.

The new 70-pound-capacity G-Flex washer creates a “new size category” in the vended laundry market, the company says.

The hard-mount washer-extractor features the company’s programmable ProfitPlus® control, and can reach extract speeds of up to 200 G-force.

The EH060 ExpressWash washer is a 60-pound-capacity machine, which replaces the company’s 55-pound model.

“We had a 55-pound washer, and going from a 40- to a 55-pound is obviously only a 15-pound [difference], so now we’re going up a full 20 pounds,” says Tod Sorensen, sales manager, western U.S. and Canada.

“We’re going to generate more revenue for the owners, generate more revenue per square foot, [and] extract more water.”

The EH060 features a freestanding design, can reach extract speeds up to 400 G-force, and also features the same ProfitPlus controls, the company says.

“I think this was the busiest Clean Show that I’ve been at,” says Sorensen. “[There have been] a lot of new investors with a tremendous amount of business and professional credentials, and credibility, behind them.”

NATCO National Combustion Co. (NATCO) has been producing water-heating solutions for the laundry industry for 50-plus years.

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ping machines, among them the TD-362 40-inch console.

The unit can hold two rolls of PVC wrapping film up to 39 inches wide and features a stainless steel work surface, a quickchange film selector, and warm rod cut-off and thermostatically controlled seal plate.

The company also highlighted its bundle carry handles, which self-adhere to wrapped bundles and can be customized for branding and advertising.

HIGH MARK MANUFACTURING Established in 2002, High Mark Manufacturing builds drain troughs and bulkheads for the coin and on-premise laundry industries.

The company debuted its new tandem seating, featuring perforated steel with multiple powder-coating options, at Clean.

There is also a premium polyurethane seat offered in three color choices.

To complement its seating, High Mark also offers folding tables in two styles.

“The show went very well,” says company founder Pete Valconesi.

“We generated more business from this show than we have from any other Clean Shows in over 10 years.”

ACO

been producing its line of vending equipment to the coin laundry industry since 1952.

Interest was high among Clean attendees, according to Vince Hansen, president.

The Cicero, Ill.-based company displayed its arsenal of various vending equipment at the show.

Included in the lineup was its VendMaster 360 vender, which can dispense laundry items, such as soap and laundry bags.

Also on display was VendRite’s Vision Vender, a customizable glass-front vender with compressor that can dispense items such as candy, snacks and sodas.

The Vision Soap Vender, also a customizable glassfront vender with compressor, carries larger items such as laundry detergent and bleach bottles.

DAVIS PACKAGING Clean Show attendees were wrapped up with Davis Packaging’s various products on display, as the company demoed several of its laundry wrap-

Dan Orr (right), NATCO general manager, fields questions at Clean 2015. The company promoted several of its established product lines, including the WALLNAT G2, the Retriever and the FlexFlame 94. www.americancoinop.com

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Selling a

Coin Laundry How to land the best deal when it comes time to sell your business

(Image licensed by Ingram Publishing)

By Carlo Calma, Editor

N

o two coin laundries are alike.

While some owners may find the coin laundry business a lucrative venture, others may not be as successful.

Some may have been in the industry for decades and believe that it’s time to retire from their business.

No matter what an operator’s reason for putting his/her coin laundry up for sale, all have one goal in mind when drafting their exit strategy—getting the best price/offer for their business.

But where should one start? American Coin-Op reached out to experts in the financing and commercial real estate industries to find out what operators should consider when they make the decision to sell their coin laundry.

RECORDS IN CHECK

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‘A TURN-KEY OPERATION’ In addition to these records, also of importance to consider is the quality of the laundry’s equipment, according to Dave Nolan, assistant vice president, commercial laundry, at Firestone Financial.

“The equipment has to be in good working order, so that it’s essentially a turn-key operation,” says Nolan. “[Sellers] want to make sure that any repairs have been made

[and] any deferred maintenance has been taken care of.”

Prager agrees, saying, “Repairing broken equipment, a fresh coat of paint, new decals on washers and dryers, installing new soap dish lids, repairing broken tiles, and replacing blown light bulbs go a long way when selling a business. Laundromats with great cosmetic appeal will sell faster.”

THE SELLING PRICE When assessing store value, the experts advise operators to consider factors such as the age of equipment, condition and size of the store, competition, net profit after expenses, and the length of the store’s lease, which Nolan stresses the importance of.

“The true value of the laundry is the lease,” says Nolan. “If you have a lease that only has two years left on it, and no options for renewals, you’re not going to get much value for your location.”

In addition to these considerations, the experts also turned to industry standards.

“A coin laundry should sell between three to five times the net profit after all expenses,” says Prager.

“Stores that are typically over 2,0003,000 square feet [will] sell anywhere

▲

“There are a couple of things to be done before selling a business,” says Joshua Prager, business broker and founder of FloridaCoinLaundryBroker.com.

“The owner must gather all of the books and records, utility bills for the past two years, tax returns, profit and loss state-

ments, and a copy of the lease,” says Prager. “Buyers will be requesting this information when inquiring about the business and will need to verify the information during due diligence.”

Brian Grell, executive vice president at Eastern Funding, stresses the importance of having records of your store’s cash flow among these documents.

“You must know what your net cash flow is—revenue minus expenses,” says Grell. “You must know what that is so that you could come up with an estimate of what you’re going to sell your store for.”

Collecting these documents ahead of time will not only speed up the selling process, but also show buyers that “you’re serious about selling,” says Prager.

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up to five, and maybe even six times, the annual cash flow,” says Grell.

BROKER CONSIDERATIONS When it comes to the selling process, should operators manage it themselves, or seek professional counsel?

“It really depends upon the educational level and the sophistication level of the seller,” says Nolan. “If the owner has the capacity to do what is necessary, they could probably sell a store on their own.”

However, the experts interviewed agreed on the benefits of consulting with a broker.

“A seller should look for a broker who has a lot of experience selling coin laundries because they have a much better handle on the business,” says Prager.

“Brokers and [professionals] generally have a network of people and they can sell [the business] faster for you,” says Grell.

“If you don’t have the time, then you could let the broker go through all the financial information and let [them] weed out the possible candidates.”

In addition to the drafting of a confidentiality agreement, Prager also recommends providing a personal financial statement for the prospect to complete.

“There’s no sense in spending your time with prospects that can’t afford your laundry,” he says.

Grell agrees with this, stressing that operators should require this from a prospect when it’s time to go into contract.

“The only thing I would put in a contract for a seller [is] that if the buyer is going to require financial assistance, they must get

approval within no more than two business weeks,” says Grell. “You don’t want to go into contract and find out that the buyer can’t obtain the financing.”

“The seller wants the right to cancel the contract if [the buyer] doesn’t get financing approval in [a certain] period of time,” he adds.

LEASE, LANDLORD CONSIDERATIONS As the buyer and seller approach a deal, Grell advises operators to withhold any financial information until after the deal

TIME TO SELL To begin the sales process, Prager advises operators to first draft an “advertising information sheet.”

“The information sheet is a summary of your business, including your coin laundry income, expenses, lease information, equipment information, hours of operation, employee schedules, etc.,” says Prager.

When drafting the sales agreement, the most important items to include are the price and payback terms, he says.

For this document, both Prager and Nolan advise seeking professional counsel.

“I recommend hiring a professional, because the purchase agreement survives the closing,” says Prager. “[A sales agreement is] something that either an attorney or a broker will be better suited for,” adds Nolan. “What we look for in those [include] a defined purchase price. … If there’s any holdback that’s going to be maintained, that should [also] be defined.”

WHY NOT. WHEN CONSIDERING EXPANSION, SOME ASK WHY. SOME ASK

WE BELIEVE IN KNOWING THE ANSWER TO BOTH.

VETTING A PROSPECTIVE BUYER What should a seller look for in a buyer?

“You need to look for someone who’s financially viable,” says Nolan. “Whether you get a sizable down payment up front, or you have a short window on when they’re supposed to get their financing, or proof of their purchase price.”

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has reached the contract stage.

“You don’t want to release any private information; you don’t want to hand over water, gas and electric bills until you’re ready to go, and that’s when you sign the contract,” says Grell. “Once that contract’s signed, you’re obligating the buyer … to a due diligence period.”

But before even approaching the contract stage with a buyer, both Grell and Nolan stress the importance of knowing the terms of your lease and involving the landlord in the sales process.

“You should have an understanding of how long your lease is and what your lease allows you to do,” says Nolan. “Before you even put your unit up for sale, you should have somebody … review that lease and make sure that the terms and conditions are favorable to you selling the property.”

“You need to bring the landlord in right away because you have to read the lease to make sure that the lease is assignable to somebody and that the landlord is not going to reasonably withhold,” says Grell.

Lenders require an assignment of lease

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document, Grell adds, which “gives permission to the finance company to take over the lease and sell it if it defaults.”

“If the landlord does not cooperate, then the business is no longer financially viable,” says Grell. “So, you limit the number of people who can actually purchase this store if you do not have a landlord that cooperates.”

ROUNDS OF NEGOTIATION Realistically, how many rounds of negotiations should a seller and buyer go through before passing on the offer?

“I recommend negotiating until you come to desired terms,” says Prager.

“Negotiations may take one day [or] can take up to three months. A lot depends on the personalities involved.”

“Negotiation can take anywhere from three to four weeks before it actually gets into contract,” says Grell. “Once you get into contract … the negotiation stops, unless something new materializes during the due diligence period.”

“If you’re a seller and if you’re offering your store for sale at a fair, reasonable price, then that negotiating process shouldn’t be that significant,” says Nolan.

“If you’re trying to get far more than it’s worth, and the buyer’s coming in and telling you all these different things that are wrong with it, that process is going to take longer.”

A SMOOTH CLOSING Setting clear expectations ensures the selling process goes smoothly, says Nolan.

“The seller needs to be honest and diligent about the sale price of his/her store.

They need to understand the market, and whether or not they could get an asking price that is reasonable,” he says.

“To ensure the closing process runs smoothly, have all of the books and records in order,” says Prager. “The buyer will need this in order to verify the accuracy of the information presented.”

Grell agrees, adding, “It’s so much more credible when you’re buying from someone who has good records.”

Prager also stresses one final point: “Polish the apple; nobody wants to buy a headache.”

“If prospects are visiting your store and there is broken equipment, light bulbs out, peeling decals, chipped paint, and broken tiles, then they will not purchase your business … at any price.”

ACO JUNE 2015

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‘Committed to the Community’

The Laundry Café has two locations in the inner city of Philadelphia. One is located in a shopping center at Front Street and Olney Street, and its newest location (pictured) is at 9th Street and Girard Avenue. Both stores are open 24 hours. (Photos: Courtesy of ESD/The Laundry Café)

PHILLY-BASED LAUNDRY CHAIN SERVES UP CONVENIENCE, COMMUNITY PROGRAMS TO LOCALS

By Haley Jorgensen

I

t doesn’t take much to touch people, extend a hand, or offer kind words, according to business partners Brian Holland and Tyrone Akins.

So, when they launched their business plan to develop a chain of vended laundries, they also set out to serve and strengthen the inner city of Philadelphia—and that’s what they’re doing.

In less than three years, they’ve innovated two laundries in the city—both branded The Laundry Café—dedicated to honesty, transparency and community improvement.

“We are as committed to the community, using our laundries, as we are to commerce,” says Holland. “That’s key to our business model.”

THE LAUNDRY CAFÉ Located about 8 miles apart, the laundries feature a vast array of services and amenities: wash-dry-fold, drop-off dry cleaning, massage chairs, low-fee computer 26

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rentals, free Wi-Fi, video games, Starbucks coffee kiosks, digital jukeboxes, flat-screen TVs and a mix of approximately 140 Huebsch washers and dryers in 20- to 80-pound capacities.

Fully attended, open 24 hours per day and card-operated, The Laundry Cafés not only offer a haven for inner-city residents to complete laundry, they deliver customer care and community support services.

CARD-OPERATED PAYMENT Attendants greet customers with curbside assistance, and once indoors, take them through the benefits of the laundry’s wireless ESD CyberLaundry System.

Rather than using quarters to operate equipment, customers swipe loyalty cards, debit cards and credit cards, according to Holland.

The CyberLaundry System is customizable so laundries can accept any combination of coins, loyalty cards, debit cards and credit cards. In this case, Akins and Holland decided to go with cards only.

Holland touts the system’s management

controls, tracking tools and remote access, which he values as the laundries are open 24/7.

More than 90% of their customers use The Laundry Café loyalty cards to operate washers and dryers, and gain access to the facilities’ bathrooms, adds Holland.

Customers access Value Transfer Machines (VTM), which are located throughout the laundries, to load value onto their cards.

For every wash, customers are rewarded with points toward a free dry.

For travelers and passersby who choose to not have a loyalty card, CyberLaundry allows them to use a credit card right at the washer.

The CyberLaundry System’s digital interface can be installed on equipment from all major manufacturers, according to Holland, who praises the operator controls that the system provides to help run his business.

At any time, he can run promotions through the CyberLaundry System, replace or add value to a loyalty card, or view a www.americancoinop.com

5/13/15 2:25 PM

customer’s transactional history from any computer with Internet access.

MULTI-PRONGED MARKETING AND CONSISTENT MESSAGE Akins, who spearheads marketing efforts, harnesses social media, signage, loyalty-card promotions, radio ads, public relations and a solid web presence to garner and retain customers.

In doing so, he reinforces a consistent theme of investing in the community and working to make it better; delivering “stellar” customer care and curbside assistance; PM making Page 1 it easy for customers to do and

Owners Tyrone Akins (left) and Brian Holland run their stores with a community focus, providing various amenities and programs for locals. their laundry.

It’s all about the customer, according to Akins and Holland, who grew up in the inner city.

“We see the challenges that plague

▲

REMOTE MANAGEMENT While the CyberLaundry System provides various end-user benefits to laundry customers, it’s also helps Akins and Holland manage their business.

The CyberLaundry system comes with a management tool, MyLaundryLink, which allows them to access data about their laundries, in real time, via the Internet.

Even when away from their stores, Akins and Holland can monitor and interact with every washer and dryer in each location.

“We’ve got two stores and we can’t be [at] two places at once. It allows us to manage critical business processes without having to be physically present,” says Akins.

This feature can be utilized in various scenarios when Akins and Holland are unavailable at their stores. For example, when an attendant needs to start a washer to process wash-dry-fold.

“We can easily start washers from our computers within seconds, allowing for an uninterrupted flow to this task,” says 0812aco_Wells Fargo 7/17/12 3:53 Akins.

Additionally, they can monitor washer/ dryer turns per day, customer accounts, and income by hour, day, month and year.

“At any point in time, I can see exactly what each store is generating,” says Holland. “I appreciate having accurate and real-time financial transparency.”

MyLaundryLink also assists with payroll by tracking employee hours and pay rates, according to Akins.

“Employees clock in and out by swiping employee cards at the VTM,” he says. “At the end of a pay period, I export that data to an Excel spreadsheet and send it to our payroll service.”

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the inner city and we want to address those challenges wherever possible,” says Holland.

COMMUNITY CARE PROGRAMS For this reason, The Laundry Cafés host a number of programs for area residents.

“Family Night” encourages families to gather for free pizza and a movie on Wednesday evenings; “Honor Roll Sweepstakes” provides community youth who make the honor roll the chance to win prizes like an iPad, Nintendo Wii or Kindle Fire; and the “Halloween Costume Showcase” gives local kids the opportunity to flaunt costumes and enjoy free candy, music and movies.

Other programs, which are free and open to the public, focus on heart health, hypertension and breast cancer awareness, according to Akins.

“We feel these programs are good because they educate customers on ways to make a positive change in their lives. All of our programs fall into our four guiding principles: serve with honor, live with respect, grow with humility, repay with generosity.”

Even the songs played over the digital jukeboxes are positive and empowering— especially toward women, who make up 80% of the laundries’ customer base.

‘A BETTER PLACE’ For now, the business partners are excited about growing their laundries and bettering the communities in which they serve.

“If we all realized how important it is to touch people’s lives in a positive way, the world would be a better place,” says Holland.

ACO

Both Laundry Café locations utilize ESD-brand card payment systems, which provide Adkins and Holland with various management tools.

Both locations offer up an equipment mix of approximately 140 Huebsch-brand washers and dryers in various capacities.

Customers can relax on the laundries’ massage chairs while sipping coffee from the Starbucks coffee kiosk.

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Among the amenities the Laundry Café provides are computers which customers can rent to use while waiting for laundry. www.americancoinop.com

5/13/15 2:26 PM

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AN OUTSIDER’S VIEW

DOES YOUR LAUNDRY’S NAME STAND OUT?

Howard Scott

Best Laundromat. The Finest Laundry. Super Wash Coin-Op. Express Wash. Townsend Laundry.

These are all perfectly adequate self-service laundry business names that state the essence of the offering and suggest good service with a relevant adjective.

But, does your laundry’s name stand out, generate buzz, create a bond, or make someone smile?

“Doesn’t have to,” mouths one owner. “I’ve been around for 15 years. Everyone knows my business.

It’s simple and easy to say. What’s wrong with a short and sweet name?”

‘PAUSE AND THINK’ My unconventional notion about names has evolved from a recent trip to New Orleans.

There, right on Bourbon Street, in the heart of the French Quarter, is a really small Laundromat (20 machines) called Washing Well LaunDRYteria.

Every morning, I would jog by the place, getting a chuckle. One day, I walked in and looked around.

The name is clever, witty, provocative, poetic. It makes you pause and think. Washing Well LaunDRYteria is such a word combination that I want to praise it to high heaven.

Washing Well is a play on wishing well. One thinks, “I wish (as in a wishing well) that my wash comes out clean.”

The second name, LaunDRYteria, states that it is a laundry, but adds “teria” as if it were a social activity, as if one were in a cafeteria eating with friends.

Then the “DRY” in capital letters, emphasizes that the clothes will come out well done. Everyone appreciates warm, dry garments.

Also, it’s visually pleasing to have capital letters in the center of a word. It looks like a mountain, which has pristine connotations of vigor and strength.

Not bad associations for a Laundromat.

MISSED OPPORTUNITY “So what?” says the above “Laundromateur.” “The name of my shop is shorter: Top Dog Laundry. It says it clearer. It’s a name people won’t forget. I’d rather have clarity than cleverness.”

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But, would you really? What if this clever name brought in business, whereas your designation, “Top Dog,” doesn’t bring in business? It just facilitates the trade you’re doing now.

“I don’t believe a name brings in business,” snaps the belligerent operator.

Well, I happened to speak to an early-morning client washing her clothes at the Washing Well LaunDRYteria.

She said: “I have four Laundromats to choose from, but I love this place. Just the name alone says that they have a sense of humor. I love the ‘DRY’ in capital letters.

A few months ago, I had a problem, and the people here took care of it with a smile and a, ‘Yikes, that shouldn’t have happened.’ They fixed the situation in no sweat.”

So, here’s one customer who comes in weekly because of the name. I wonder if there are 100 more—maybe even 200 families.

Would you be so adamant, Mr. “Top Dog” Laundromateur, if you miss out on these customers?

“… if you are dissatisfied with your current identity, you might consider updating your image now.”

‘A CLEVER IDENTITY’ Every so often, I come across a clever identity. Here are a few: The Bubblette — With this name, I think of a bank of machines, with bubbles emerging from them and popping in the air. Not a bad image for a prosaic place of business.

417 Clean — A little eccentric, but the 417 is the street number, and the “Clean” states its level of quality. The sobriquet, it seems to me, evokes strength, power and competence. Images of Mr. Clean dance in my head. It makes one wonder what the place is all about.

The Washboard — This name evokes the old-fashioned process of cleaning garments, and I picture hardworking machines doing a fine job.

Cleanie and I Laundry — I like this name because it www.americancoinop.com

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evokes friendship. It’s a comforting identity, a place that I would like to patronize. Plus, it makes me wonder who “Cleanie” is.

‘A NEW MONIKER’ Am I saying that you should go right out and change your name?

No, not exactly. But, if you are dissatisfied with your current identity, you might consider updating your image now.

A new moniker is like a makeover.

Or, if you are opening up a new location, you don’t have to call it “Top Dog Laundry.”

You could put on your thinking cap. Be creative and come up with an interesting designation. A chain with different names for each facility is perfectly satisfactory.

Or, if you are taking over a laundry operation, now would be the time to change its old handle to reflect a change in ownership.

Another thing you could work on, while you’re focused on identity, is coming up with a nifty slogan.

Remember the great ones: “America runs on Dunkin’” (Dunkin’ Donuts), “Just do it.” (Nike), “Think different” (Apple).

A good slogan adds an aura to the product.

It will inhabit the customer’s (or prospect’s) mind. Subconsciously, it might influence consumer decisions, just like a good name does.

Consider the following: “It’s cleaner than clean at Dawson’s.”

“You’ll love us forever.” “The world turns at Buncombe’s Laundry House.” “Friends meet here.”

Add that underneath your new name—on signs, invoices, letters, vehicles, brochures—and you’ll expand your connection with the marketplace.

Furthermore, you’ll be one of the few operators who has more than a name as its identity.

Yes, a rose by any other name is a rose. But we’re not talking flowers. We’re talking business, and a straightforward designation is never good enough.

Finally, the next time you visit the Big Easy, stop by the corner of Bourbon and Dumaine streets and visit Washing Well LaunDRYteria.

Tell ’em Scott sent you.

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

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JUNE 2015

4/2/15 4:23 31 PM AMERICAN COIN-OP

5/13/15 2:23 PM

WEB UPDATE

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

TOP NEWS STORIES

COLUMNISTS/FEATURES

OUR SISTER WEBSITES

• WASH Laundry Receives ‘Visionary Award’ at Microsoft Conference (WE)

• StatShot: South Leads in March Year-Over-Year Sales Gains (WE)

From AmericanLaundryNews.com:

• Managing Rising Water Cost, Wage Increases

• Proper Procedures for Managing Customer Complaints

• Good Customer Service Starts at the Top

• Positive Atlanta Return to Bring Clean Back There in 2021 (WE)

• Your Views: Majority of Coin Laundry Owners Satisfied with Distributor Relationship

• Take a Spin: Opening a Coin Laundry

• Spring Brings Calendar Full of Open Houses, Service Schools

• Clean 2015: Atlas of Atlanta

From AmericanDrycleaner.com: • With Spring Comes Bloom of Carmelized Sugar

• CLA Honors Its 2015 Industry Award ...

DON’T

MISS

OUT IN EVERY ISSUE:

• Product Showcase • Your Views Survey Results • Product News • Web Update • An Outsider’s View • Newsmakers • Ad Index • Classifieds Want to send a press release or submit a story? Contact Carlo Calma, editor TODAY! Phone: 815-768-7339 E-mail: ccalma@atmags.com 32

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

JULY

Feature: Diving Into Diversification: The extra-profit centers best suited for coin laundries.

Fundamentals of Funding: A primer on applying for credit to fund coin laundry projects.

Editorial Submission Deadline — May 15

AUGUST

Feature: Do’s and Don’ts of Drop-Off: How store owners can best manage drop-off service. ’Round the Clock Management: Guaranteeing coin laundries are running smoothly, any time of the day.

Product Showcase: Extra-Profit Centers Editorial Submission Deadline — June 15

SEPTEMBER

Feature: Staying Out of Hot Water: Tips to keep boilers/water heaters in tip-top shape.

Product Showcase: Cashless Systems Editorial Submission Deadline — July 15

OCTOBER

Feature: Distributors Directory & Survey: Our easyto-use annual directory issue lists distributors of equipment and supplies nationwide, plus we analyze 2014-15 distributor business performance.

Editorial Submission Deadline — August 15

...and much more! www.americancoinop.com 5/12/15 9:13 AM

5/14/15 6:45 AM

Insertion Date: Ongoing

many-flavored ice cream many-flavored American Coin-op A S? IS RO AT E H OC . 23 W ET ee pg E S CH

▲ Mobile and Website ▼

I N S I D E :I NJ SU ILDYE :2 0O 0C 5T O B E R 2 0 1 3 DISTRIBUTORS EXAMINE 2012 BIZ, PREDICT 2013 RESULTS

CAUTIOUS, CUSTOMERFRIENDLY COLLECTIONS

ABOVE: DETAILED LISTINGS FOR U.S. AND CANADA DISTRIBUTORS

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Print

Tablet

The more flavors the better! In addition to our print edition, check out our tablet, mobile and website versions when you crave the latest industry news and updates. www.americancoinop.com

The independent voice of the self-service laundry industry

StandardPage.indd 1

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COIN-OP 101

FIVE CONSIDERATIONS WHEN ACQUIRING A LAUNDROMAT

Brad Steinberg

The purchase of a coin- or card-operated laundry can truly be a great investment.

Compared to other more traditional investments, laundries can offer a significantly higher return, with the added bonus of tremendous tax benefits.

When assessed alongside other entrepreneurial investments, laundries can offer comparable meaningful returns, but with a more passive involvement.

As co-owner of PWS – The Laundry Company, my team and I have helped store owners open more than 2,500 new Laundromats, brokered a similar amount of existing Laundromats, and sold more than $400 million in commercial laundry equipment.

Whether you are looking to purchase your first store, or your 20th, here are five key considerations to keep in mind when acquiring a Laundromat: PARTNER WITH A LAUNDRY EXPERT Partnering with a laundry expert is imperative.

Most experts do not charge a fee, so pick someone you trust and use their services until you have found the right investment. Many experts can help you find an existing Laundromat, or assist with building a new store.

Ryan and Bernadette Hansen had entrepreneurial aspirations, but they weren’t sure what type of business they wanted to operate.

After finding a small, run-down Laundromat on Craigslist in 2009, they decided to put in an offer for $30,000. The owner rejected it.

“A couple of weeks later, I got in touch with PWS and they showed me a beautiful 3,000-square-foot store,” says Ryan Hansen.

The laundry was less than a year old and had a positive cash flow. The Hansens purchased the store and, within six months, increased revenue by 40%.

PWS also showed the couple how to analyze the competition, secure financing, and make basic repairs on equipment to keep the machines running, minimizing downtime.

MATCH THE LOCATION TO YOUR VISION It’s important to have a clear vision of what type of store owner you want to be, and what your business plan is before you acquire a Laundromat.

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The Hansens have had great success because they were able to impose their vision on the Laundromats they purchased or built. They have a clear vision of the type of stores they want to operate and do not deter from that vision.

They like larger stores that operate mostly or fully attended. They do not mind taking over run-down or poorly operated stores, as long as the location has potential when cleaned up and managed properly.

Since buying their first store, the Hansens have purchased eight additional locations.

Of their nine stores, they have built three and acquired six existing stores, rebranding all of their stores as Dirty Bird Laundry in Fresno, Calif.

“If you’re buying an existing Laundromat, you are buying the existing customers,” Ryan Hansen says. “It is nice because you know whatever improvements you make will add upside to the existing cash flow.”

Another perk of refurbishing an existing store is that older stores are typically grandfathered in by their municipality and are not contingent on additional fees and charges that new stores may be subject to.

UNDERSTAND THE TERMS OF YOUR LEASE A long-term viable lease is imperative to the success of a Laundromat. You not only want a lease that works today, but one that will be viable for years down the line.

This business is about cash flow, and a long-term reasonable lease protects your cash flow and enables you to sell the laundry when you are ready to exit the store.

When entering a lease, always look for a fair rental rate, and make sure that any increases are reasonable.

Try to get a term for as long as possible—10 years is great, but 20 years or more is even better.

Additionally, the lease should include a base term plus options. Make sure the lease and the options are assignable to a new buyer.

Negotiating your lease with your landlord is key to running a successful store. All of the Hansens’ nine stores are leased.

“When building a new store, or heavily remodeling a store, I always negotiate 90 days of free rent from the store opening day to build cash reserves,” says Ryan Hansen. “You’re not paying interest on that money.” www.americancoinop.com

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PICK A VIABLE LOCATION Good distributors have access to demographic information to help you select the best location possible.

Evaluate the demographics, particularly population density and percentage of renters, and evaluate the competition, as well as if the property has good exposure and adequate parking.

Typically, a viable location consists of a renter population of 35% or more, with an average household size of at least two people with an annual income of $35,000 or less.

Being surrounded by a grocery or convenience store, auto parts retailer or check-cashing outlet can complement your business by attracting even more customers.

PAY ATTENTION TO EXISTING EQUIPMENT The equipment you choose is crucial to the ultimate success of your Laundromat, so pay close attention to the existing equipment when purchasing a new store.

Having newer, energy-efficient equipment—manufactured after 2009—will save you money on utilities in the long run.

If the location is prime, old equipment shouldn’t scare you away

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—it can always be replaced.

On one of the Hansens’ first acquisitions, the store had 15 washers that worked but 25 washers that were irreparable.

After Ryan Hansen cosmetically remodeled the laundry, he received compliments that the store looked great, but his equipment didn’t operate properly. As a result, he had lackluster customer retention.

“That’s when I called my distributor for help and his team came through. Today, my equipment works well and looks great, and the replacement parts are durable, affordable and easy to get.”

By putting these five tips into practice, the Hansens have found great success in the laundry industry.

When looking to buy or build a Laundromat, be prudent, patient, and follow these five steps to put yourself on the road map to success in the vended laundry industry.

ACO Brad Steinberg is co-owner of PWS, a Speed Queen® distributor since 1968, and 2014 Speed Queen Distributor of the Year. He can be reached at bsteinberg@pwslaundry.com. For more information, visit www.investinlaundromats.com.

JUNE 2015

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Photo: ©iStockphoto/ Adrian windle

’

All Things

by Carlo Calma, Editor

’

CLA hosts Clean session on how to use search engine as marketing resource

“W

ho you are online is just as important as who you are in person,” says Jamie Sewell, marketing consultant and former marketing director for the Coin Laundry Association (CLA).

Sewell stressed this point in an educational session at Clean 2015 titled All Things Google: Tips and Secrets to Your Best Marketing Resource.

Sewell explained that operators are marketing their store just by its very existence—from the way they maintain their store’s equipment and overall appearance to the way they interact with customers. “[There are] lots of little things that you’re doing day-to-day [that] you’re communicating [to show] you care about your business and that you care about your customers,” she says.

But how do you translate and promote that experience online?

THE POWER OF GOOGLE Sewell touted the power of Google in the decision-making process of today’s consumer, explaining that 68% use it as their go-to online search engine.

How important is it to be listed on Google?

According to Sewell, four out of five consumers use search engines to find local information, and 88% are now using smartphones to perform their search.

She adds that 84% of consumers visit a business on the same day that they perform their online research. For many industries, 36

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there’s a 30% immediate conversion of these consumers into customers.

But Google is more than a search engine, Sewell says.

There are approximately 181 Google Tools available that can help smallbusiness owners such as self-service laundry operators market their business online.

“The nice thing is that they’re pretty much free or low-cost, and it’s a really great way to get your business out there and get your business online,” says Sewell.

A BUSINESS SNAPSHOT One Google Tool that Sewell says operators should take advantage of is Google My Business.

The tool combines a business’ map location and Google Places listing and plugs it into a Google+ local listing.

“Basically [it creates] a snapshot of your business listing all across Google,” says Sewell.

When a consumer conducts a general search such as “Laundromats near me” on Google, the site will display your company’s Google My Business information in a list of similar businesses.

But how do you ensure that your listing is the cream of the crop?

Components of a good Google My Business listing include photos, business hours, phone numbers, a list of services/ business info and, chief among them, good customer reviews, according to Sewell.

“Google really puts a high emphasis on

those online reviews,” she says. “This is going to continue to play a really, really important part of a local search.”

Because of this, Sewell stresses that operators should be active in asking customers to review their business online, then stay on top of monitoring these reviews, both good and bad.

“If you do get a bad review, you can flag it for removal … but respond publicly,” she says. “People want to see how you respond. So the most important thing that you can do when you get a bad review is to make sure that you are responding online.”

PAY-PER-CLICK ADS A supplement to a Google My Business listing is Google’s AdWords Express, the company’s advertising tool for small or local businesses.

Once an operator sets up a Google My Business listing for his/her Laundromat, he/ she can advertise the store using AdWords Express, which Sewell explains takes only 15 minutes to complete.

The ads are generated by Google, and are displayed in a highlighted text box, embedded in a search result. They can appear on the web, in Google maps, on a mobile search and in relevant partner sites, according to Sewell.

To set up an online ad using AdWords Express, operators must specify the local area they want to target, select their business category, detail their laundry’s services, and establish their budget for www.americancoinop.com

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the online ad.

The ad’s cost is manageable, says Sewell, as AdWords Express has a pay-per-click setup, so operators only pay for the ads the consumer clicks on.

The feature allows for operators to “experiment with incentives,” she adds, as they can use the ad to promote specials and deals online.

“People choose to go to places based on incentives,” says Sewell. “AdWords Express is a good opportunity to experiment with [them].”

‘DETAILED STATISTICS’ Another Google Tool that Sewell highlighted was Google Analytics, a service that “generates detailed statistics about a website’s traffic.”

The tool tracks aspects about a consumer’s visit to your laundry’s website, including which search engine they used to get there, a user’s age or gender, and which pages on your website are the mostvisited.

Knowledge of these metrics is important, according to Sewell, so that operators can better understand the information their potential customer is searching for.

“If you have insight into what’s happening with your presence online, you’re going to be able to make better decisions about what’s happening in your store, and also your marketing [efforts],” she says.

‘BE SPECIFIC’ No matter which online tool an operator chooses to market his/her laundry online, Sewell stressed the importance of using “strong keywords” when describing the business.

“It’s really important to make sure that you use strong keywords in your descriptions in Google My Business, on your Facebook page, on your website—anyJamie Sewell (at podium), marketing consultant and former Coin Laundry where you’ve got informaAssociation marketing director, discussed the benefits of using various Google tion about your business,” online tools to help operators market their businesses on the web during a she says.

Sewell advises operators Clean 2015 educational session. (Photo: Carlo Calma) to add specific indicators to their locations, or I’ve seen members create the keywords they use in their one [for each Google Tool],” she says. “It laundry’s business description online.

The keyword “wash-dry-fold,” for exam- causes a lot of problems.”

When managing one’s online presence, ple, can be customized by tagging it with the laundry’s specific city or location: “wash- Sewell advises operators to put themselves in the shoes of their customers and to anadry-fold Chicago.”

“Whatever area you’re specializing in, be lyze where their business ranks in a Google search. specific,” Sewell says.

The bottom line, according to Sewell: “Google cares about getting the right inforTHE BOTTOM LINE She explains that it’s key for operators mation to the right customers and enhancto use just one account when managing ing user experience.”

“When you shape your online presence Google Tools.

“I’ve seen some cases where members will around your customers’ needs, Google will create different e-mail accounts for each of reward you,” she says.

ACO

ADVERTISERS’ INDEX Advertiser

Page

Advertiser

Page

AC Power ....................................................................... 31

Maytag Commercial Laundry ........................................ 13

American Switch ............................................................. 39

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

Continental Girbau ........................................................ IBC Dexter Laundry ................................................................ 17 ESD Inc. ............................................................. 20, 21, BC

New York Laundry Equipment ....................................... 29 NIE Insurance .................................................................. 11 Pellerin Milnor .................................................................. 3

FrontecStore.com ............................................................. 38 Progressive Insurance ........................................................ 7 Gold Coin Laundry Equipment ...................................... 19 Great Lakes Commercial Sales ....................................... 38 HHC Electronic Service .................................................. 39

R&B Wire Products ......................................................... 1 Royal Basket Trucks ........................................................ 35

Huebsch .............................................................. FC, 24, 25

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

Imonex Services ............................................................... 15

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

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

Wells Fargo Insurance Services ....................................... 27

www.americancoinop.com

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Maytag Computers . . . . . . . . . . . . . . . . . . . . . $65.00 23004118 . . . . . . . . . . . . . . . . . . . . . . . . . call W10343020 . . . . . . . . . . . . . . . . . . . . . . . call 33001129 . . . . . . . . . . . . . . . . . . . . . . $85.00 ADC 137213 / 137234 / 137240. . . . . . . . . $65.00 Igniters (Fenwall only). . . . . . . . . . . . . . $30.00 Speed Queen / Huebsch Computers . . . . . . . . . . . . . . . . . . . . . $65.00 Motor Control . . . . . . . . . . . . . . . . . . . $95.00 IPSO 209/00440/70 (Micro 20). . . . . . . . . . $115.00

SINGLE-COPY SALES 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

www.AmericanCoinOp.com www.americancoinop.com

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10% NEW CUSTOMER DISCOUNT Volume Discounts • One-Year Warranty Free Return Shipping El - Tech, Inc. 26 West St. Colonia, NJ 07067 For Complete Price List Please Call: 732-381-7620 or 908-510-6520 or visit us at www.eltechlab.com JUNE 2015 AMERICAN COIN-OP 39

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NEWSMAKERS

2015 MARKS CENTENNIAL FOR THE MINNESOTA CHEMICAL CO. The Minnesota Chemical Co. celebrated its 100th anniversary in May—a milestone made even more remarkable by the fact the company is still owned and actively managed by the same family that established it in 1915.

Today, the company provides a full range of equipment and supplies to dry cleaners and commercial, institutional and coin-operated laundries throughout the Upper Midwest.

Family ownership began with R.P. Baker, who founded the company in the Midway area of St. Paul with several other immigrants from Ireland.

The company initially focused on supplying (From left) Dan, Mike and Steve Baker took over local customers with Minnesota Chemical Co. leadership in 1985 from the a variety of soaps and second generation of Bakers who had led the company for 40 years. (Photo: The Minnesota Chemical Co.) cleaning compounds.

Increasing popularity in the company’s products fueled expansion. By the late 1920s, the company was selling cleaning compounds and soaps throughout an eight-state area in the Midwest.

Upon R.P. Baker’s death in 1943, the family’s second generation—sons Robert, Dan and John Baker—took over the company.

Within a decade, the “Baker boys” had moved the company away from manufacturing soap and instead refocused it on distributing national brands of laundry and drycleaning supplies and equipment. In 1952, they opened a sales office and warehouse in Milwaukee, Wis. A decade later, an equipment sales and service office was added in Waverly, Iowa.

In 1985, the “Baker boys” retired together, transitioning the company to their sons, Mike (John’s son), Steve and Dan (Robert’s two sons).

Now, a fourth generation of Bakers, Mike’s son, James, is working for the company.

Today, The Minnesota Chemical Co. provides laundry and drycleaning supplies and equipment to customers in Minnesota, Iowa, North Dakota, South Dakota and Wisconsin.

CLA RECOGNIZES ORGANIZATION’S 2015 INDUSTRY AWARD WINNERS The Coin Laundry Association’s (CLA) Awards Committee recently named the 2015 recipients of the CLA Industry Awards.

The association bestowed its “highest honor,” the Founder’s Award, to Kenny Wells of Wells Laundry, Killeen, Texas.

Wells, and all honorees of the CLA Industry Awards, were recognized during an April 18 reception at Atlanta’s Georgia World 40

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Congress Center, site of Clean 2015.

Wells becomes the 26th recipient of the Founder’s Award, which recognizes an individual’s lifetime contributions to the industry.

The CLA says the Founder’s Award is reserved for individuals who are “true pioneers” in the business and are “directly responsible for the ongoing growth of the self-service laundry industry” and the association.

Other CLA Industry Awards winners include: • Member of the Year: Tom Rhodes • Leadership Awards: Brian Grell, Daryl Johnson, Michael Finkelstein, Rob Maes • Outstanding Director: Jim Whitmore • Richard H. Torp Excellence in Education: Wally Makowsky • Affiliate of the Year: the Delaware Valley Coin Laundry Association • Chairman’s Award: Keith Griffin (2013), Andy Kretz (2014) • Distinguished Service Awards: Jeffrey Barman, George Pierce, Deborah Dower, Kenny Wells, Wayne Lewis, Bill Bittner and Keith Griffin HUEBSCH NAMES GULF STATES LAUNDRY 2014 DISTRIBUTOR OF YEAR Huebsch has named Gulf States Laundry Machinery Co. its 2014 Distributor of the Year.

Pravin Parmar, co-owner of Gulf States, along with principals Harish Parmar, Ben Prema and Sales Manager Jack Hunt, accepted the award for “outstanding sales achievement, customer service and professionalism” on behalf of the company during the Clean Show in Atlanta.

Gulf States was previously named Huebsch’s 2011 Distributor of the Year, establishing it as a “leader in the Huebsch distributor network,” adds Rowen.

The distributorship was founded in 1984 and is headquartered in Houston.

Gulf States also has a branch office in Atlanta, providing its services to customers in southern Texas and Georgia.

ACO

(From left) Kathryn Rowen, Huebsch North American sales manager; Harish Parmar and Pravin Parmar, Gulf States Laundry Machinery Co.; Bill Bittner, Alliance Laundry Systems vice president of North American sales; and Jack Hunt, Sunil Parmar and Ben Prema, Gulf States Laundry Machinery, celebrate the distributorship’s recognition as Huebsch’s 2014 Distributor of the Year at Clean 2015 in Atlanta. (Photo: Alliance Laundry Systems) www.americancoinop.com

5/13/15 2:20 PM

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