American Coin-Op - November 2015

r o f t n i r Bluep ign details s e d d n a t u o y la Iron out these ground’ before ‘breaking

I N S I D IEN: S JI UD LE Y: N2 O0 V 0 5E M B E R 2 0 1 5 ʻLAUNDRY JENIEʼ KIOSK MAKES U.S. DEBUT

SITE SELECTION STRATEGIES: CHOOSING THE IDEAL LOCATION

THE ʻUNLIMITEDʼ POTENTIAL OF WASH/DRY/FOLD SERVICE

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CONTENTS NOVEMBER 2015 VOLUME 56 ISSUE 11 COVER STORY

BLUEPRINT FOR SUCCESS Representatives from several industry manufacturers and distributors address the vended laundry layout and design issues that an investor building a new store or an owner renovating a current store must face before “breaking ground.”

INSIDE 22 AT YOUR COMMAND

10 COLUMNS 34 THE ‘UNLIMITED’ POTENTIAL OF WASH/DRY/FOLD Columnist Howard Scott believes every person could be a wash/dry/fold customer. You’re not selling machine time or a place to clean clothes, you’re selling convenience, luxury, even freedom, he writes. Here’s how to identify prospects and make the pitch that will entice them to try your service.

The vended laundry kiosk called Laundry Jenie has made its U.S. debut in North Carolina, offering customers a “curbside” alternative to the traditional coin laundry.

24 HOW TO NEGOTIATE A BETTER LEASE

It’s time for your lease renewal. Are you ready to negotiate?

Lack of preparation can be costly, says business writer Phillip M. Perry, but he’s polled several experts in the field to offer some smart real estate strategies to protect your laundry’s bottom line.

30 COIN-OP 101: SITE SELECTION STRATEGIES

Whether you’re opening a new Laundromat or moving your current store to a different location, it is important to carefully evaluate nearby competitors, location visibility, parking options, adjacent businesses, demographics of the surrounding area and the building’s utilities infrastructure, says Speed Queen’s Dan Bowe.

Cover images: © iStockphoto/mbortolino, Ingram Publishing

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DEPARTMENTS 4 6 18 27

VIEWPOINT YOUR VIEWS SURVEY PRODUCT NEWS CALENDAR

33 37 38 40

WEB UPDATE AD INDEX CLASSIFIEDS NEWSMAKERS

22 A CLOSER LOOK Vended laundry kiosks are well established in the European market, says Laundry Jenie’s Anna Lautzenheiser.

www.americancoinop.com

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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 Roger Napiwocki, Production Manager

GRAND-SLAM MASTER PLAN TOUCH ’EM ALL As I write this, the Kansas City Royals have advanced to the American League Championship Series. The Chicago Cubs a day earlier moved on to the National League Championship Series. Should they both advance to the World Series, I’m going to have a devil of a time deciding who to cheer for—the Royals have been “my” baseball team since childhood, and I was a Cubs fan long before living and working in Chicagoland.

Bruce Beggs Going into their respective series, both teams will undoubtedly have a master plan for how they want to pitch to and defend their opponent, and for how they are going to approach their at-bats. They’ll weigh all the stats and player tendencies and come up with a blueprint for success.

Investors building new stores or owners renovating current stores are called to do the same when it comes to layout and design. Failing to properly account for visibility, workflow or security during the planning phase could lead to unhappy customers, unrealized revenue and a big strikeout.

Check out our cover story starting on page 10, featuring design advice from reps from several equipment manufacturers and distributors.

And deeper into the issue, on page 30, this month’s Coin-Op 101 column is a variation on the theme: Speed Queen’s Dan Bowe shares some site selection strategies, or considerations for choosing the ideal location for your Laundromat.

Put them together and it’s the best scouting report out there. Now, knock it out of the park!

Bruce Beggs Editorial Director

Nathan Frerichs, Digital Media Director E-mail: nfrerichs@ATMags.com Phone: 312-361-1681

ADVISORY BOARD 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 11. 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

STORE OWNERS ASSESS THEIR ‘GREATEST’ STRENGTHS

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

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When it comes to assessing their “greatest strength,” coin laundry owners who took October’s American Coin-Op Your Views survey say it’s a tie between customer service skills and management skills; equal shares of 33.3% chose those responses.

Next is maintenance skills, at 23.3%. Equal shares of 3.3% say it is marketing skills or delegation. The remaining 3.3% of respondents say they aren’t sure.

Roughly 55% of respondents to the unscientific survey say they spend less than 20 hours a week at their store(s). Approximately 28% spend between 20 and 40 hours, 10.3% spend more than 60 hours, and 6.9% spend between 40 and 60 hours. No one who took the survey said they “rarely visit” their store(s).

How would you rate your maintenance skills? Roughly 57% of respondents rate their skills as “better than most owners,” while 33.3% say they’re “no better or worse than other owners.” The remaining 10% rate their skills as “not as good as most owners.”

As far as customer service, 50% say they “get along great with their customers.” Thirty percent rate their customer service skills as better than most owners, and the remaining 20% rate their skills as no better or worse than other owners.

To complete the anonymous survey, store owners were asked to describe the “best decision” they ever made regarding their store, and the “worst decision.” First, some of the “best”: • “Replacing machines, adding AC, and keeping the place nice and clean.”

• “To make a commitment to make sure every item in the store is in working condition.”

• “Buying the buildings where we have the laundries.”

• “Gradual vending price increases by equipment type.”

• “Adding a loyalty card system.”

And some of the “worst”: • “Listing my business for sale. A distributor from a neighboring state submitted an offer, did due diligence, withdrew, came back and built a store.”

• “Not doing enough fluff and fold.”

• “Hiring one bad attendant.”

• “Using painted wooden bulkheads instead of prefab.”

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 each month. The entire trade audience is encouraged to take part, as a greater number of responses will help to better define owner/operator opinions and industry trends.

ACO www.americancoinop.com

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Q&A

r o f t n i r p Blue (Image compilation: © iStockphoto/mbortolino, Ingram Publishing)

Iron out these layout and design details before breaking ground

Q: What are some basic store design ideas that a new store owner or investor should keep in mind?

Chris Brick, regional sales manager, Maytag Commercial Laundry and ADC 10

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(American Dryer Corp.): There are many design aspects a new store owner or investor should consider when designing a store.

Safety should be the foremost concern.

Patrons, the bulk of whom are often female, want to feel comfortable—no matter where they are in the store, or what time of the day it is. Incorporating numerous, large windows is a great first step in meeting that need. In addition, designing aisles to run parallel to the front of the store allows an unobstructed view and can also assist with the flow of traffic. Finally, a well-designed store allows customers to move easily from washers to dryers to folding stations with minimal travel.

Russ Arbuckle, president, Wholesale Commercial Laundry Equipment, a Continental Girbau distributor: Basic designs should incorporate wide aisles, and large washers at the front of the store.

Dion Marcionetti, owner, Laundry Concepts, a Continental Girbau and Huebsch distributor: An investor should

keep in mind that the size of the store is critical; building a store that is too small or too big for the location is very costly.

A store that is too small will adversely affect the gross profit and will invite other competitors. A store that is too large will be more costly and will not increase your bottom line. So, along with your distributor and all the data that is available, determining the proper size is the starting point.

Kyle Pethke, laundry design specialist, Speed Queen: Don’t overfill your space.

The idea is to have 21-23% (plus/minus) of the square footage utilized by machines.

The rest should be open for aisle space, rooms, amenities, etc. Using more than this percentage leaves little room for aisles and will make your customers feel cramped in your store; using less means your space is not being fully utilized for optimal profitability.

This is why it is also important to find the right location for a Laundromat. If you have an equipment mix in mind

▼

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ike many service businesses, it benefits a vended laundry to be designed such that it’s comfortable for customers to move around in yet functional so they can easily and quickly wash, dry and fold their laundry. But there’s much more to laundry design than just scribbling locations for washers and dryers on a piece of paper. Visibility, workflow and security are just some of the variables that impact store layout and design.

This month, American Coin-Op invited representatives from several industry manufacturers and distributors to address the issues that an investor building a new store or an owner renovating a current store must face before “breaking ground.”

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Q&A Q: Should a store be designed in a

specific pattern to optimize the movement of clothes and customers throughout? If so, what does such a pattern look like?

Kenny Hebert, vended laundry specialist, Pellerin Laundry Machinery Sales Co., a Milnor distributor: The equipment layout should be balanced, with customer flow in mind for operational efficiency. Having a symmetrical layout on paper will translate over to the look of the store.

Arbuckle: Traffic flow within the store is critical to your customers’ comfort.

Obviously, the building footprint affects the layout. Ideally, customers will enter the store, head to the changers/VTMS, then go to the washers, on to the dryers and finally the folding tables without having to fight “traffic” within the store.

Marcionetti: A well-designed store that will maximize the earning potential is all about equalities—the number and pounds of wash must have the availability of the proper amount of dryers, which in turn needs the proper amount of folding tables and laundry carts. The washer banks are normally kept together and placed in the middle of the store; keep in mind that the largest washers should be placed closest to the front doors. Dryers are normally placed against the wall; they require a service area behind them, so using a wall makes it more economical to get the proper service space.

In that space, you also need to have the proper fresh air and the utilities that are required to operate the dryers.

Pethke: Many store owners want to have washers facing windows to showcase them.

It makes for an appealing visual when looking from the outside in. Placing dryers on the sidewalls allows for easy maneuvering from wash to dry. Once a wash cycle is complete, customers can walk straight down the aisle to the dryer. If the dryers are placed in the rear of the store, then you create a potentially small disturbance by forcing the customer out and around the washer banks to dry. One way to keep this disturbance small and sometimes unno12

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ticeable is by making sure to keep washer banks short—perhaps having two or three separate banks in a row rather than one long one.

For dryer banks in the rear of the store, some store owners like to have the washer banks run perpendicular. This allows for the convenience of moving from wash to dry straight down the aisle. This also allows for extra security, as you can better see down each aisle from the outside. The one negative is that by turning them, your washers are not as visible to the front of the store. Some will compromise by capping off each bank with one to two large machines.

Brick: It’s also important to consider the layout of washer, dryer and folding tables, in that order. Because folding takes most customers 10-15 minutes, it is not recommended to have folding tables in hightraffic areas. This will make the laundry feel smaller and customers less comfortable.

Q: How should washers and dryers be

spaced? Can they be positioned anywhere in a store, or should they only be placed in certain spots?

Arbuckle: Again, the design is driven by traffic flow. Typically, large washers [are] at the front and dryers placed along demising or exterior walls.

Marcionetti: Most washers are installed with a gap between them. Dryers are installed with no gaps. The spacing between bulkheads is an important measurement and should not be altered just to add more. If you think how customers use a laundry, they are either using a laundry cart or are filling the washers from their laundry bag. If a customer is bending over to load a washer, the cart and the door opening require a considerable amount of room, and you must make the customer feel comfortable—that requires space. You have the same situation on the dryer side, where customers check their dryers fairly often. Now add a folding table that they stand and fold in front of and that requires additional space.

Pethke: One option is to have all your large washers in the front of the store to showcase them. Also, the large washers take large loads; by having them in the front of the store, you reduce the amount

of steps it takes to get to them, thus making it easier for your customers. The downside of this is if your matching dryers are in the back, then your customers have a wet load of clothes (weighing even more now) and a greater number of steps to the dryer. Thus, some store owners prefer to have the large washers in the back so it’s easy for the customer from wash to dry to fold.

When you have a smaller store, the number of steps is reduced naturally. You can have the large washers in the front as a showcase to customers while still having a manageable step count to the matching dryers. Once you start looking at bigger stores, we like to try to have a side dryer wall so that we can bring some large dryers down toward the front while keeping the larger washers in the front. This allows for a machine showcase and a convenience of easier in-and-out for customers.

Brick: The placement of washers and dryers should be carefully thought out. For example, if equipment is only placed on a single side, a 5-foot aisle is recommended; if there is equipment placed on both sides, a 7-foot aisle is recommended. It’s important that dryers are installed by an exterior wall to ensure optimal exhaust and makeup air needs are met.

Hebert: Dryers should be placed on an exterior wall, with plenty of folding tables nearby. Washers should be positioned near the entrance because it’s the customer’s first stop. It’s also important to have your change/card machines and drop-off counter near the entrance, as well.

Q: Do equipment maintenance needs impact store design? If yes, how so?

Marcionetti: Maintenance on washers is normally done from the front and top.

But we also have reasons for getting to the back of this equipment. Allowing comfortable walking room between the bulkheads makes it much easier to clean washer drains.

Pethke: Yes. Typical service space to the rear of washers and dryers is around 24 inches minimum. You must take this into account when designing a store, as the enclosure for tumblers needs to be large enough for the machine and the space.

Likewise, washers will require enclosed

▼

before you find a location, make sure to take this into consideration when looking.

Otherwise, you may have to be open to change later in the process.

www.americancoinop.com

10/14/15 11:37 AM

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Q&A

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Q: What should a store provide its customers in terms of folding areas?

Pethke: Adequate folding needs to be provided for customer use. Typically, the folding areas should be located across from the dryers for customer convenience. The number of tables or folding area greatly depends on table size or counter length.

For common 24-by-48-inch tables, you want to have at least a 1:4 ratio of tables to dryer pockets.

Hebert: If you don’t provide a sufficient folding area, customers will fold out of the dryers, causing bottlenecks. If possible, have one table per three dryer pockets.

The folding areas should always be clean;

AMERICAN COIN-OP NOVEMBER 2015

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provide garbage cans for dryer sheets and customer-accessed lint drawers.

Brick: A good rule of thumb is to provide one folding table per every three to four dryer pockets.

Arbuckle: Store owners should incorporate as much folding space as possible, with at least one folding table for each four dryer pockets. Keep in mind this is the last operation your customers will perform in your store, so that is the last impression in their mind.

Marcionetti: Folding areas are as important as the right amount of equipment.

This is a wash, dry and fold business; any of these not being adequate will adversely affect your gross profit. Tables need to be calculated based on the store capacity. At best, every customer that visits your store requires at least one table. We are a peakperiod business and need to have the ability to handle the peaks in order to maximize the income.

Q: Should there be clear separation

of distinct areas (washing, drying, folding, amenities, etc.) or is it OK for them to “meld” into one another?

Hebert: The layout should herd people from start to finish. You don’t want customers lugging their clothes all over the laundry.

Brick: To ensure optimal traffic flow and to maximize overall customer experience, it is recommended to have distinct areas dedicated to washing, drying and folding.

Arbuckle: We prefer to keep these areas separate, as “melding them together” can create traffic flow issues and impact customer comfort and satisfaction.

Marcionetti: There will be some natural separations just based on aisles and walking areas. There are separations for most vending areas and drop-off counters.

Pethke: I wouldn’t say there needs to be a “clear” separation like commonly seen in on-premises laundry operations. You will have natural separations, as your dryers will commonly be located in a row(s) due to utilities and servicing. The washer area may be more spread out but will typically occupy the middle of the laundry room (or in a row for long, narrow stores). The folding will meld between the two of them

▼

FIVE WAYS CONNECTIVITY BETTERS YOUR BUSINESS.

bulkheads to house electrical, water and sewer. Adequate space must be factored in so that proper maintenance can be completed.

In stores less than 2,000 square feet, the service areas of machines can greatly affect the aisle spacing. If you don’t allow for adequate service areas, you won’t be permitting adequate service, either. Sometimes you need to scale back the equipment, even if ever so slightly, so that you can provide proper service areas to keep your equipment running and your store functioning.

Hebert: There will be a day where leaving adequate service space will be needed.

If possible, have 3 feet behind the dryers and 2½ feet behind washers. Having this space will make servicing machines easier and service calls shorter.

Brick: Proper equipment installation will provide ample space behind washers and dryers for easy servicing and maintenance, which can assist in keeping long-term machine costs down.

Arbuckle: Maintenance requirements will absolutely impact overall store design.

Minimum space requirements behind equipment will shrink the useable floor space for the retail operation. That being said, I advise store owners to not cut down on the maintenance space requirements in order to create more retail space. The overall impact of this makes maintenance and repairs much more difficult, resulting in more time spent performing maintenance or repairs. In some cases, stores delay or even eliminate scheduled maintenance due to the difficulty of access.

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Q&A and double as sorting tables. Amenities will have more distinct separations due to lack of utility or servicing needs.

Q: How much seating should be available for waiting customers? And should there be seating outside?

Brick: There should be seating available at the front of the store, allowing patrons to keep an eye on their laundry and car in the parking lot, if desired. It is not recommended to provide outdoor seating.

Arbuckle: Outside seating is always a plus. The number of interior seating units really depends on available space, number of machines and store volume. Even smaller, low-volume stores should have a minimum of six seating units, while larger, high-volume stores should have 20 or more.

Marcionetti: Customers are normally sitting and waiting while their clothes are washing. After that, the customer’s involvement in drying and folding the clothes keeps them on their feet. Chairs are easily placed around a store, and if you find you need to add some, that is easy to do.

Pethke: One thing to remember when adding seating into your design is personal space. If you have three seats together, more than likely you will only be able to fit two people on this set (at opposite ends).

There is no exact amount of space, but you want to make sure that you don’t underestimate the need for comfortable seating and solid availability. Use the space wisely.

Hebert: Since customers spend so much time in the laundry, seating is important.

A reasonable rule of thumb is one seat per 100 square feet.

Q: What about store lighting?

Anything special that one should be aware of here?

Arbuckle: Bright, bright, bright! Light fixtures should be centered over aisleways and folding tables whenever possible.

Marcionetti: Lighting is costly to operate and therefore needs to be looked at closely.

There are an array of LED solutions that are efficient. A new product that is starting to make economic sense is a 2x4 drop-in, flat-panel LED light; they are efficient, bright and easy to keep clean. Keep in 16

AMERICAN COIN-OP NOVEMBER 2015

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mind that there are rebates that are available from the utilities when purchasing high-efficiency lighting.

Pethke: A store’s lighting is really where you can add character. The main key is to have excellent lighting to create a bright and welcoming appearance.

Hebert: Bright, energy-efficient lighting adds to the laundry. Also, having a row of lights stay on 24 hours helps with security.

Brick: A well-lit environment provides an added sense of security, especially during later, typically darker hours, and contributes to the overall customer experience.

When a store offers nice, bright lights, fewer garments are left behind and patrons can easily take note of how clean their clothes are after laundering.

Q: How does overall store security impact its design and layout, or vice versa?

Marcionetti: Security should always be a part of store layout. Avoiding design that have alcoves or hidden areas, and having a large glass storefront gives customers a sense of security. Keeping any money equipment away from straight access to a doorway is helpful.

Pethke: When designing a store, you want to maintain clear lines of sight and full visibility. Many times, with medium to large stores, attendants are present for extra store security, in addition to cameras. One way to lay out a store with better security is to have the washers run perpendicular to the front of the store.

This allows for better visibility down the aisleways from the outside. In addition to this, the more windows present, the fewer blind spots available and the more secure the store will be.

Hebert: Keeping security in mind is important when laying out a laundry. You should always be able to see the entire laundry from the front door. Pay attention to preserved security details, lighting, cameras, secured change/card machines and visibility from the outside.

Brick: Providing customers with a sense of security is paramount to the long-term success of a vended laundry. A good layout will provide few hidden areas, which in turn makes customers feel safe. A brightly lit parking lot and bright interior lights will

help deter theft and vandalism.

Arbuckle: In today’s world, it is an important piece of the overall design.

Hidden corners, dark spots, etc. will absolutely make customers, especially women, wary. If they do not feel safe, they will not patronize the store. Open space with good visibility throughout is critical to the customer’s comfort level.

Q: While much of what’s been

addressed is related to interior design, how might a store’s exterior influence how things are handled within?

Pethke: Windows can greatly affect the design and layout of a store. Windows are great for added natural lighting and security, but too many windows will leave you with few options for dryer placement. And the less space for dryers, the fewer washers you can add.

Parking is another item; if you have some parking in front but a majority in the back, you need to have a layout that takes into account the customers entering from the rear of the store. You want to make sure it’s as welcoming in the back as the front.

Hebert: Floor-to-ceiling windows would be ideal for advertisement and security.

Brick: Ample parking with easy access to laundry carts is imperative to keep customers happy. Ideally, a store has more than one point of entry and is equipped with automatic doors.

Arbuckle: Exterior design’s influence on the interior design relates mainly to storefront glass and how that impacts the store layout and equipment placement.

Although a lot of storefront glass is preferable, in some cases, too much creates additional difficulties relative to design and construction costs.

Marcionetti: Exterior of the store needs to be well-lit and have an area that is safe so customers can get in and out of the store. Installing automatic doors is a great benefit, as our customers are normally loaded up coming and going to our store.

Keep in mind that when leaving, they will remember the ease of entering and leaving the store. The convenience of off-street parking is a major factor in good-volume stores.

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As a way to stand behind its wire laundry cart line, R&B Wire Products has introduced what the company is calling a “Lifetime Guarantee” program.

Basically, the program offers no-charge replacement for any 100 or 200 Series wire laundry cart base that has a failure.

All that is required of the cart owner is to e-mail feedback@rbwire.com with an image of the broken base, along with shipping address, and the base will be replaced at no charge, the company says.

“We have always and will always stand squarely behind our products to make sure that our customers are satisfied,” says Rick Rawlins, CEO of R&B Wire Products. “If we’ve had an issue, we resolve it.”

This philosophy has made R&B a market leader in laundry carts for nearly 70 years, he adds.

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GALAXY 600 CONTROLS NOW AVAILABLE ON HUEBSCH FRONT LOADERS

Huebsch® has added Galaxy™ 600 controls to its new, small-chassis front-load washers. This intuitive control system provides vended store owners with the ability to lower utility costs and maximize profits while ensuring the best experience for customers, the manufacturer says.

“Galaxy 600 controls are now available on Huebsch’s front-load washer, combining advanced inno-

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vations and leading controls,” says Kathryn Rowen, North American sales manager for Huebsch. “This addition will help Laundromat owners achieve a highly efficient and profitable operation while increasing customer satisfaction.”

Previously, Galaxy controls were only available on large-chassis machines.

The Galaxy 600 control’s easyto-use networking capability allows store owners to program and monitor their commercial laundry equipment from any Internet-connected PC or laptop. Remote monitoring gives store owners the ability to run a highly efficient operation at the lowest expense possible to enhance their profits, the company says. With Galaxy 600, store owners can conveniently retrieve and analyze performance data from any Internetconnected device, giving them more control of their business.

Additionally, Galaxy 600 controls offer time-of-day pricing to manage peak customer usage throughout the day, along with multi-vend pricing, allowing store owners to charge extra for warm and hot water. Cycle modifiers—including extra-wash and extra-rinse features—along with 24 customized cycles and 30 pro-

grammable water levels provide customers with even more options to meet their laundry needs.

The Huebsch front-load washer has been enhanced with many advanced innovations, the company says. A cutting-edge balancing system provides best-in-class vibration control and significantly quieter operation. The machine’s durable, stainless steel washtub is 20% larger to accept bigger loads, allowing store owners to demand a higher vend price. The front-load washer features a high extraction speed of 440 G-force to remove more moisture from each load, reducing drying time and getting customers in and out quickly. The 10-degree tilted panel provides an “effortless” user experience, Huebsch says.

Also new this year are three contemporary control panel overlay designs—Cityscape, Citron, and Slate—that are available on the stainless steel front-load washer with Galaxy 600 controls. These modern overlays allow store owners to select equipment that complements their store’s appearance and personality, and matches the same high-end controls on large-chassis machines.

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

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8/11/15 3:52 PM

At Your

Command

‘Laundry Jenie’ vended laundry kiosk makes U.S. debut

By Carlo Calma

S

elf-service laundry operators in search of providing a more accessible laundry experience for their customers will soon have their wishes granted— the vended laundry kiosk, Laundry Jenie, has made its U.S. debut.

“It’s a privilege to make Wallburg [North Carolina] the home of the very first Laundry Jenie in the U.S.,” says Anna Lautzenheiser, president of Cygne Inc., parent company of Laundry Jenie.

The vended laundry kiosk is “ideal” for washing regular loads, as well as for heavier loads, like duvets, curtains and pillows, according to the company.

Though the offering is new in the U.S., the laundry kiosk is already well established in the European market, where the concept of Laundry Jenie originated.

FIRST ENCOUNTER KIS USA, a division of Photo-Me International, has installed more than 400 similar “launderette units” across continental Europe, according to the company.

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Lautzenheiser’s first encounter with the laundry kiosk was during a trip to France, where she saw a similar unit in a grocery store parking lot.

Though she says she initially found the concept novel, she realized the value that the laundry kiosk provides in the eyes of the customer.

“The more I thought about it, the more I thought that this is actually a really ingenious idea,” she says.

“I contacted the manufacturer and asked them for more information on what the unit is, and the cost, and if they had considered bringing them to the United States,” says Lautzenheiser. “And, if they hadn’t, I would like to purchase one and brand them here in the United States and start the trend here.”

LAUNDRY EXPERIENCE Understanding the trends of the laundry industry is nothing new for Lautzenheiser, whose mother owned a self-service laundry business for many years.

“She opened it up 24 years ago, and when she passed away, I inherited her coin

The vended laundry kiosk is well established in the European market, says Anna Lautzenheiser, who has opened the first Laundry Jenie kiosk in the United States and hopes to franchise the concept. (Photos: Cynge Inc./Laundry Jenie)

laundry. So, I had a few years of experience as owner of a coin Laundromat,” says Lautzenheiser.

When her landlord told her that he wanted to move into her Laundromat’s space, this insight proved valuable.

“I was investigating moving, but the cost of moving, even with existing equipment we had, was going to be upwards of $250,000-$300,000. I couldn’t justify doing that,” she says, leading her to ultimately close the self-service laundry.

In contrast to these costs, she explains that her venture with Laundry Jenie was more cost-effective, as the overall unit cost less than $100,000 to purchase and have it shipped and installed.

“Financially speaking, [the laundry kiosk is] a great alternative,” says Lautzenheiser.

“You’ll spend hundreds of thousands of dollars opening up a full-sized Laundromat in equipment costs and updating costs and rent [whereas] these are self-contained [and] already assembled.”

OUT OF THE BOX The overall laundry kiosk is shipped, selfcontained and pre-assembled in a “housing unit,” according to Lautzenheiser.

“All wired and plumbing [are] installed, so basically all you [have] to do [is] set it down and hook it up to the power and plumbing lines,” she says.

“They can be installed pretty much anywhere, as long as there are existing water www.americancoinop.com

10/14/15 11:30 AM

and electrical lines,” Lautzenheiser adds.

The overall kiosk measures 4 meters by 2 meters and is 2½ meters tall, according to Lautzenheiser, and can be programmed to accept cash and credit/debit cards.

The Laundry Jenie provides two washer options: a 40-pound-capacity machine at $8 per cycle and an 18-pound washer at $4.

The dryer costs $1 for 15 minutes of use.

The unit also comes with remote capabilities, according to Lautzenheiser, that allow her to monitor the payment system and the unit’s overall sales performance.

To curb any form of vandalism, the units feature security cameras.

“It also has the capability to alert [customers], through text message, when [their] laundry is done, so it’s not sitting there unattended for a long time,” she adds.

FULFILLING A NEED Because of its minimal installation requirements, the Laundry Jenie can be installed anywhere, Lautzenheiser explains.

“In Europe, the main places you’ll see them are in grocery store parking lots, so someone could load laundry, do some 0512aco_Wells 7/17/12 4:00 shopping and comeFargo back out [to retrieve]

their laundry.”

The Laundry Jenie would also fulfill a need for customers who reside in remote areas, Lautzenheiser says.

“What my thinking with the laundry kiosk was that these were perfect for areas where the population can’t necessarily support a full Laundromat [like] rural areas where people have to drive 10, 15, 20 miles,” she says. “If this was at their local convenience store or local grocery store, they could just go right there.”

“It’s also perfect for tourist areas— campgrounds, marinas, things like that,” adds Lautzenheiser.

POSITIONING FOR GROWTH Lautzenheiser says she is excited about the venture’s possibilities.

“I think it’s something that would kind of revolutionize the industry as far as PM Page 1 opportunities and ways to getting people

Lautzenheiser cuts the ceremonial ribbon on the first U.S.-based Laundry Jenie in Wallburg, N.C. expand their own brands,” she says.

She is eyeing growth and expansion.

“I’d like to franchise the Laundry Jenie brand and expand all throughout the state, especially in the Southeastern United States. If I could expand nationally, that’d be awesome, but for the first couple of years, the primary goal is to establish the brand and set up more units, get it recognizable and start franchising.”

ACO Carlo Calma is a freelance writer and former editor of American Coin-Op.

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NOVEMBER 2015

AMERICAN COIN-OP 2/14/13 12:2923 PM

10/14/15 11:30 AM

How to

Negotiatea

Better Lease Smart strategies can protect your coin laundry’s bottom line

(Image licensed by Ingram Publishing)

I

t’s time for your lease renewal. Are you ready to negotiate? If you’re like many service businesses, your answer is “No.” But a lack of preparation can be costly.

Rent is typically a business’ second largest operating expense after labor. And the common industry practice of adjusting staff levels to reflect a changing business environment simply won’t work with lease payments: You’re pretty much stuck with them once you’ve signed on the bottom line.

It’s more important than ever to negotiate a better deal in today’s real estate environment, characterized as it is by rising prices. The higher the rent, after all, the greater the damage to profits.

“The market for retail space has changed significantly in recent years,” says William D. Himmelstein, CEO of Chicago-based Tenant Advisory Group, a real estate tenant brokerage firm. “Across the country, 24

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there is less space available. Landlords are keenly aware of that, so rental rates are on the increase.”

What’s behind the tightening of available space? The post-2008 economic rebound has a lot to do with it. But so does the growing availability of business loans.

“When lending loosens up, more people are able to start businesses,” says Himmelstein. “When that happens, they need space. And we are starting to see a more business-friendly environment with more borrowing opportunities.”

Things are coming together to put pressure on the best locations.

START EARLY When should you start planning your own strategy for landing a better deal?

Early, according to the experts.

“Time is your friend in real estate,” says Himmelstein. “The earlier you can start

thinking about renewal, the more advantage you will have over the landlord. … if you delay until three or four months before lease expiration, the landlord will have the upper hand.”

Start too early, on the other hand, and you may find yourself locked into your current spot when a better location becomes available. So, what’s a good compromise?

“The short answer is one year in advance of the lease expiration,” says Dale Willerton, a Los Angeles-based tenant lease consultant and author of Negotiating Commercial Leases and Renewals for Dummies. “But there is a caveat: If you have a renewal option clause, you want to be sure to start at least six months before that.”

The option might not be your best choice but you still want it as a backup. “The renewal option clause is your fail safe, your insurance.”

▼

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Before you do anything else, doublecheck your lease’s expiration date. Get that wrong and your chances of a successful negotiation plunge. And it’s easy to make a mistake when the passage of time impairs memory.

“The day you opened your store is not necessarily the day your lease expires,” cautions Willerton.

IMPROVE TERMS If your lease is like most others, it calls for a five-year term and one or more fiveyear renewal options. But the renewal option, while designed to offer some protection to the lessee, is not necessarily your

you a good deal.”

The problem worsens if you tip your hand by letting the landlord know you are not shopping around.

“Suppose your landlord asks, ‘Are you looking at other properties?’” poses Willerton. “You might respond, ‘Oh, we don’t want to move—we are not talking with any other landlords.’ Right there, your landlord has you.”

It’s far better to line up some alternative locations where you can relocate if your landlord becomes unreasonable.

“You need to create some competition for the landlord,” says Willerton. “Ask yourself: Where would I go if I have to

“The day you opened your store is not necessarily the day your lease expires.”

—Dale Willerton, tenant lease consultant and author of Negotiating Commercial Leases and Renewals for Dummies

best choice.

“One of the biggest myths is that the only way to renew your lease is to exercise your renewal option clause,” says Willerton. That’s not the case. In fact, if you do so, you suffer a significant downside: Everything but the rent amount will be off the negotiating table. That’s a lousy negotiating position to be in.

No wonder that in 98% of the lease renewals negotiated by Willerton, the renewal option is not exercised.

“Bear in mind that, most of the time, the landlord wants you to stay,” he says.

“That gives you some negotiating leverage.

You lose that, though, if you exercise your renewal option.”

CREATE ‘PLAN B’ Once you have determined your lease renewal date, put yourself in a better negotiating position by locating alternative store locations you can move to if your landlord’s terms are not to your liking.

“The most common mistake is to only negotiate with the existing landlord on the current location,” says Willerton. “Doing so fails to give the landlord a reason to give 26

AMERICAN COIN-OP NOVEMBER 2015

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move? Do I have relocation options if this landlord will play hardball and double my rent?”

Having alternative locations in your pocket will give you the freedom to reject onerous terms.

“Tenants only get the best deal when they are walking away from the negotiating table—not when they are at it,” says Willerton. “Remember that landlords always hold something back that they will give up only if it’s clear the [tenant] might move.”

Indeed, having the landlord chase you as you are walking away from a deal is the best position to be in.

“The tenant is the landlord’s customer, and the customer deserves to be pursued,” says Willerton. “That is the mindset too many tenants do not understand.”

TALK IT UP What’s the going rate for retail space in your town? Maybe it has changed since you last went shopping. You want to find out early in the negotiating process.

“Do your due diligence,” advises Sharon Kahan, first vice president at the Chicago

office of CBRE, a Los Angeles-based commercial real estate company. “Investigate your local market and find out what other retailers are paying in your area.”

That means talking not only with real estate agents but also other businesses— especially those with property from the same landlord. They can tell you a lot more than just what they are paying.

“Some of your fellow tenants will have recently gone through the renewal process,” says Willerton. “They can give you some valuable insights into how your landlord negotiates.”

Also, your neighboring retailers can alert you to relocation plans of their own. That can be a major factor when it comes to the desirability of your current location.

“If you assume everyone else will be there after you renew, you might be wrong,” says Willerton. “You can lose four neighbors and get four new ones in a five-year cycle.

Knowing someone is moving can make a difference in terms of your decision to stay or move.”

You may also find out some surprising things. Maybe the landlord is planning to reconfigure the space surrounding your store, or maybe an adjacent tenant with more bucks wants to expand—in your direction. “You want to find out such things in advance,” warns Willerton.

YOU GO FIRST Successful businesses take the initiative when it comes to lease renewal negotiations.

“Most tenants think the landlord is going to come to them and remind them in a timely manner that their lease is expiring,” says Willerton. “But most landlords will not do that. That’s because they want the clock to tick right down to where they have you over a barrel.”

Suppose only four weeks remain before expiration, posits Willerton. What can you do if the renewal terms are onerous?

There’s no time to move or negotiate. “Be proactive. Don’t lose your time advantage.”

Speaking up early is great, but don’t tip your hand.

“Too many times, tenants say the wrong thing,” says Willerton. “Suppose you see the property manager in the parking lot, and you casually say, ‘By the way, our lease will be expiring and we want to do some major renovations and look forward (continued on page 28) www.americancoinop.com

10/14/15 11:42 AM

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NOVEMBER 2015

AMERICAN COIN-OP 2:09 27PM 6/1/15

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to five more years.’ You have just given the property manager a ‘buy signal.’ You have said you intend to stay. So why would the landlord do anything but try to raise your rent?”

And on that topic of renovations: Avoid doing them too close to renewal time.

“If you do a $100,000 renovation a year before your lease is up, you have just given a ‘buy signal’ that puts you in a bad negotiating position,” says Willerton. “Time your renovations to be concurrent with, or just after, renewal time.”

TERMS AND INCREASES While five years is the norm for retail renewals, consider negotiating a longer term—say, 10 years—if that’s more to your liking. One benefit is that banks will only lend money for the length of your lease, and you may prefer a longer-term loan.

You may be able to swing more years if you have been a good tenant, because long-term leases benefit landlords, too.

“Long-term leases are particularly valuable for landlords, because they help improve the value of a commercial property,” says Kahan. Conversely, you can negotiate a shorter-term lease if that’s better for your business plan.

And how about the rent increase percent-

Oral Promises … Oh, No! Avoid relying on oral promises when negotiating your lease renewal.

They can evaporate like clouds on a summer day.

Consider this scenario: “Eight months before your lease expires, you have a conversation with your property manager,” says Dale Willerton, a Los Angeles-based tenant lease consultant and author of Negotiating Commercial Leases and Renewals for Dummies. “The manager says something like this: ‘We will have to raise your rent by about 5%. But don’t worry about it—we will get to it in a few months.’ Later, two months before your lease expires, you get hit with a 50% increase. What does the property manager say? ‘Yeah, I was surprised, too.’”

says Willerton. “Some landlords are more open to lesser increases, saying that they just want to match inflation, which is seldom over 3%.”

You should also try to negotiate terms that go beyond pricing. Remember: Any inducement that can be negotiated on a

“Long-term leases are particularly valuable for landlords, because they help improve the value of a commercial property.”

—Sharon Kahan, first vice president, commercial real estate company CBRE age? Anything you can do about that?

“Most leases call for an increase of 3% per annum,” says Willerton. It’s important to negotiate for lower increases if you possibly can. “The big problem is that 3% compounded over 10 years is more like a 50% increase—not 30%.” And that can be onerous. “There is a limit to how much retailers can raise prices—and it is generally not 3% per year. So, the landlord is asking for something that the tenant cannot keep up with.”

You may be able to get a lower increase, 28

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new lease can be negotiated on a renewal.

Maybe you can get some site improvements such as better lighting, a new paint job, or more attractive signage.

And how about some free rent, or a refund of your security deposit? Or some “tenant allowance”—money from the landlord to help build out your space? Or how about eliminating the personal guaranty?

How about removing some clauses that you found unpalatable? Renewal time is the right time to put these and similar items in play.

Here’s a similar scenario from Willerton: “Suppose that eight months before your lease is up, the property manager sends you a renewal proposal with some attractive terms. You say, ‘That’s not so bad; I’ll sign it.’ A few months later, you get the actual lease from the landlord, with far more onerous terms. What does the property manager say? ‘I didn’t know they were going to do that to you.’”

Both scenarios can happen even if you have a great relationship with the property manager, warns Willerton: “Landlords often give leasing people and property managers ‘plausible deniability’ by not telling them of future plans. Remember that nothing counts until it is in writing, and signed by the landlord.”

GET HELP Negotiating a favorable lease renewal is far more complicated than just signing off on a renewal option, and it will often pay to have some outside assistance.

Consider using a tenant broker. Bear in mind that they cost nothing to use because their payment comes in the form of commission splits with landlord brokers. At the very least, they can get you a fair price.

“A qualified commercial broker can reference comps and help you figure out what you should be paying,” says Kahan.

You might also want to consider the services of an attorney, who can be beneficial in other ways.

“Brokers are there to minimize costs,” says Himmelstein. “Attorneys are there to minimize risk.”

The broker will make sure your lease terms are competitive with those of other leases in your vicinity; the attorney will rewrite clauses that might put you at risk.

Together, with your own investigations of the local marketplace, these professional services can help you turn lease renewal time from a costly exigency into an opportunity to bolster your bottom line.

ACO Award-winning journalist Phillip M. Perry, who resides in New York City, is published widely in the fields of business management, workplace psychology and employment law, and his work is syndicated in scores of magazines nationwide. www.americancoinop.com

10/14/15 11:42 AM

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COIN-OP 101

SITE SELECTION STRATEGIES Considerations for choosing the ideal location for your Laundromat

Dan Bowe

There are many factors that contribute to running a successful Laundromat business, including the partnership you have with your distributor, the equipment mix, amenities, ancillary services, hours, pricing and customer demographic, but perhaps the most important factor is the location of your store.

Whether you’re opening a new Laundromat or moving your current store to a different location, it is important to carefully evaluate nearby competitors, location visibility, parking options, adjacent businesses, demographics of the surrounding area and the building’s utilities infrastructure.

When it comes to searching for and selecting a site that your business can thrive in, there are a few key considerations to keep in mind.

ANALYZING CUSTOMER DEMOGRAPHICS Vended Laundromats are everywhere, scattered across many different areas with diverse demographics.

To find a location with the ideal demographic mix, look at areas with a high concentration of your target customers; most of the time, this is an urban setting with a high renter population.

Household size and income are factors you should look into and understand, but they can vary greatly from region to region, as can cost of living. Population density and renter population numbers are the best indicators of whether or not a Laundromat is a sensible investment in a particular area. More often than not, other demographic criteria seem to fall into place, such as a lower- to middle-income population (approximately 40% of all households earning less than $35,000 per year use Laundromats) and an average household size of 2.3 residents and more.

You can find this demographic data by visiting the U.S. Census website (www.census.gov), or working with your distributor directly. Leverage your distributor’s in-depth knowledge of the area to determine if a location is a good investment for you or not.

LOCATION, LOCATION, LOCATION When considering a location for a new Laundromat,

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IMPORTANCE OF PARKING Parking can make or break a Laundromat location. If a customer can’t find parking close to your store, they may go elsewhere. Find a location with head-in parking spaces that cover at least two sides of the building your Laundromat occupies. For every 1,000 square feet that your store occupies, you should have four dedicated parking spaces.

Perhaps most importantly, the nature of the Laundromat business requires parking that is easily accessible to patrons. Ease of access into a parking space is a primary consideration when selecting a site.

Loading and unloading laundry can be a cumbersome process, and you want to make it as easy as possible for your customers. Setting up a designated loading and

▲

To read more Coin-Op 101 columns, visit www.AmericanCoinOp.com

you will want to analyze a 1- to 3-mile radius of the site with a goal of at least 30% of the population being renters (50% or more would be ideal).

It is safe to assume that if someone is renting an apartment, they likely don’t have a washer and dryer in their unit. There may be a communal laundry room, but even then, statistics show that 30% of renters will go outside of their apartment complex to do their laundry.

With the efficiency, speed and number of machines one might find at a modern Laundromat, they know there will be machines available that can clean their clothes in less time.

Next, the physical location of a Laundromat is a key factor in its success or failure. A space on a main roadway with high visibility and dedicated parking are guidelines for an ideal location. Ideal co-tenants include grocery stores, convenience stores, automotive parts stores and check-cashing establishments.

Laundromats have the potential to be run successfully anywhere with the right ownership, but they may be the most successful in or next to a high-traffic shopping center.

The best location is as close as possible to where your target customer base is going for their weekly shopping. In doing so, they will see your Laundromat as a reminder of an errand they need to run, as well as realize they can drop off their laundry and run other errands simultaneously.

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COIN-OP 101

unloading zone can help immensely.

It’s also vital to ensure that parking is not burdened with adjacent high-volume businesses, such as a busy restaurant. You don’t want patrons of neighboring businesses using your parking lot during meal times when your customers need it. Work with the property manager to negotiate dedicated parking spots into your lease, as well as posted signs if you share a lot with other businesses.

ANALYZING THE COMPETITION The laundry industry is unique in that, when looking for a location for your Laundromat, you should look for a spot that has some competition already.

You should actually be slightly wary of opening a store in a location where there’s no competition for miles; in that case, the surrounding demographics likely won’t match your criteria.

When you do identify an area that fits your core criteria, you can safely assume that plenty of others have done the same and are operating a successful laundry business.

The most important factor to keep in mind regarding competition is differentiation.

Consumers won’t start or stop using Laundromats on a whim because a new store opens its doors in the area—there has to be an added value.

Working with your distributor is the easiest way to determine the best marketing decisions for your store; it will help make sure you can differentiate your store from what other stores in the area are offering and provide the best customer service experience for your guests.

For example, you may want to offer your customers larger equipment or wash/dry/fold services if your competitors don’t.

Customers will go out of their way to get the experience they want; in fact, 37% of consumers will drive past a competitor to visit their favorite store, which is why it’s extremely important to offer services that will attract and maintain a clientele base at your Laundromat.

The laundry industry is unique in that, when looking for a location for your Laundromat, you should look for a spot that has some competition already.

BUILDING INFRASTRUCTURE There are certain criteria a building must meet in order to accommodate a vended laundry. In most cases, you will want a space that is between 2,000 and 6,000 square feet. The current trend is larger stores, which, in a shopping center environment, can mean consolidating two or three spaces in order to achieve the 32

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ideal space. Additionally, the Laundromat business is one that is utility-intensive, on par with a high-volume restaurant, requiring specifications such as a sewer line dedicated to your store.

An important question to ask the property owner when looking at a potential site is if the building is equipped to handle the specifications that a Laundromat requires. Most of the time, you can work with your landlord or property owner to work out services to the space as part of the conditioned precedence to opening the store. You can also work with your distributor’s or manufacturer’s laundry design service to configure the best store layout to maximize customer flow and utility usage.

MUTUAL BENEFITS Laundromats can greatly benefit from the traffic that shopping center environments attract; however, a laundry can easily become an asset to the owner of a shopping center, as well. Laundromats pull in consumers for the weekly task of doing laundry, which, on average, takes 90 minutes per visit. This provides downtime and great cross-marketing opportunities with other stores and restaurants.

Additionally, property owners can benefit from renting space to a Laundromat, as laundry owners typically sign lengthier leases and stick around longer than the mom-and-pop shops that cycle through the space. This is due in part to the fact that laundry is a recession-resistant business; unlike many businesses in a shopping mall, clean clothes are a necessity, not a luxury. Because the property owner can rely on steady income, laundry owners can usually negotiate less-than-market rent.

The ability to foster and maintain a good relationship with your landlord or property owner is a factor that you should consider when selecting a site. It is one consideration that is often overlooked but is important to the success of the business and can help you expand your business, as well.

Of course, the property owner must hold up his or her end of the bargain, but things like honoring your commitments, operating your store well and being fair to both sides when negotiating a transaction will help ensure that you’ll be the first call when there is a new property for sale.

THE BOTTOM LINE Finding the right site for your Laundromat may seem like a daunting task, but the best equipment manufacturers are available for support and can provide invaluable insight into demographics, location, parking, construction, differentiation and more. Their unmatched experience and analytics can help identify the best location within your area and even help design and finance your business.

ACO Dan Bowe is the North American sales manager of Speed Queen’s® Commercial division. For more information, visit www. speedqueen.com/coinop101 or call 800-590-8872. www.americancoinop.com

10/14/15 11:45 AM

WEB UPDATE

HEADLINE HEADLINE Subhead Headline Most popular stories from AmericanCoinOp.com for theHeadlinem 30 days ending Oct. 10 — (WE)Subhead denotes Web Exclusive TOP FIVE NEWS STORIES

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• StatShot: Better August Sales, First-Half Profits Reported Across All Regions (WE)

• Changing Textiles Changes Laundering Practices

Body Copy First Paragraph Body Copy First Paragraph Body Frominformation AmericanLaundryNews.com: • Staying Out of Hot Water • Davis Author information Author Copy First Commercial ParagraphLaundry Solutions is Newest Electrolux/Wascomat • Chapter 6 (C): Barrier Retreatment Body Copy.

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From AmericanDrycleaner.com: • August Drycleaning Sales, First-Half Profits Up Across Board: Survey (WE) • Evaluate Before It’s Too Late

NOVEMBER 2015

Howard Scott

AMERICAN COIN-OP 33

10/9/15 1:45 PM

AN OUTSIDER’S VIEW

THE ‘UNLIMITED’ POTENTIAL OF WASH/DRY/FOLD

IDENTIFYING PROSPECTS The people who might use your service are twoworker families. They come home from a hard day, see

that the kids are fussy, and utter, “Let’s order Chinese food.” The family is willing to fork over $35 to have a fast, store-bought supper just to save time and the trouble of making their own meal. They’re busy. They’re tired. They are willing to pay for a break from family routine. Yet, they are not so rich that they can afford a maid, a cleaning woman or a live-in au pair.

Consider that many of those families in today’s middle to upper-middle class hire a cleaning person to come in once a week to clean their house. They might spend $50 to $75 each cleaning. These are the type of people who might opt for convenient wash/dry/fold service.

Compared to home cleaning, your service is a bargain at $15 to $20 a week.

The service could have the customer drop off and pick up, just drop off, or do nothing. The Laundromat picks up and drops off the completed job.

Probably the most popular option is drop-off service, and you deliver the finished product. It probably

▼

Howard Scott

Every person could be a wash/dry/fold customer.

Not just apartment dwellers without washers and dryers. Not just seasonal folks who don’t have a full complement of appliances. Not just families in transition. Not just those with a broken machine.

Everyone. That’s 320 million people, or 115 million family units.

Let me explain. You’re not selling machine time.

You’re not selling a place to process your clothes.

You’re selling convenience with a capital C. You’re selling the luxury of having your clothes delivered clean and neatly folded. You’re selling the release from doing the boring, repetitive household chore.

You’re selling freedom from drudgery.

So, who are your customers?

(Photo: © iStockphoto/vicnt) 34

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www.americancoinop.com

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makes economic sense this way, too. Dropping the clothes off could be easy if your store has good front visibility. The staffer sees the customer pulling up in front of the store, walks out, goes to the passenger side and accepts the sack of clothes. He says, “We’ll deliver these clothes tonight, Mr. Crosby, probably before you get home from work.”

But you could also offer pickup and delivery for an additional fee. This offering would make the task super easy. All the customer would have to do is put out the laundry on the appropriate days, retrieve the bag of processed clothing and puts the garments away in drawers. What might take four hours can be reduced to 10 minutes of work.

Overscheduled families in which both parents work and the kids have busy, active lives that necessitate family involvement require the simplification.

No separating clothes into delicates, colors and whites. No cleaning out lint traps. No matching of socks or folding of outfits.

Who exactly might be your customer? First, your prospect has to live within a few miles of your laundry, perhaps no more than a mile if in an urban setting. Any farther out and your delivery costs will be excessive. I have seen drycleaning pickup and delivery services that spread over several towns at a radius of 10 or 12 miles, and the cost of traveling gets out of hand. So, focus on that circle around your store, and don’t go beyond the perimeter. Additionally, those families within your “circle” would be good drop-off candidates.

Several types of people are potential candidates: • Single individuals too busy to do their laundry would welcome the service.

• Senior citizens who have difficulty with the simplest tasks need the relief.

• Overscheduled families in which both parents work and the kids have busy, active lives that necessitate family involvement require the simplification.

• Families who live in cramped quarters and do not have enough room to do the laundry would prefer a convenient alternative.

• Condo residents who dislike washing clothes in a common room would welcome the opportunity.

• Individuals in transition (divorce, separation, wid36

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owed, etc.) don’t want to be bothered doing mundane tasks.

• Anyone with a bad back who has trouble bending down (to fold garments) would enjoy your service.

The list comprises about a third of many populations.

MAKING THE PITCH How do you market the offering? The pitch might go something like this: You don’t have to do the laundry every week. We could do it for you. You could drop it off in the morning, and go to work. Before you return home, your laundry would be there in the hallway, all neatly folded. This would save your family about three hours every week.

Or, if you do laundry twice a week, about six hours.

You will love our processing. Perfectly folded, softfeeling, pleasantly scented garments. Our processor actually knows how to make clothes soft. Our folding provides a crisper look. We remove stains through washing or by using chemical treatments. We transform the drudgery of cleaning into a pleasant experience.

Here is a variation: Everyone assumes you have to do your laundry. But that’s not true. We can do it for you and save you time and effort, not to mention back pain. Give your spouse a break. Let us do the clothes. He or she will appreciate it.

Still another variation is: You’re busy, right? You have a cleaning lady. You hire someone to mow the lawn. So, why not make life easier by turning over the weekly laundry to us?

How do you get the message out? You must be selective. This customer is a different breed from your walk-in wash/dry/fold customer, and his/her wants are different.

A mass mailing is not the appropriate strategy. One approach is to talk to everyone you meet, qualify prospects, and try to break down barriers of objections.

Some other strategies: • Select an upscale neighborhood or building and put up posters in the area.

• Offer to be a speaker at club meetings or the local senior center and tout the service.

• Introduce yourself to an apartment or property manager and work with him/her to solicit work.

• Place a small newspaper ad and run it for a month.

Never forget: you are really selling convenience.

That’s the bottom line.

ACO Howard Scott is a long-time business writer, smallbusiness consultant, and author of four books. www.americancoinop.com

10/14/15 11:47 AM

ADVERTISERS’ INDEX Advertiser

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Advertiser

Page

AC Power ....................................................................... 37

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NIE Insurance .................................................................... 7 New York Laundry Equipment ....................................... 35 Progressive Insurance ..................................................... 27 R&B Wire Products ......................................................... 1 Royal Basket Trucks ........................................................ 33 Setomatic Systems ......................................................... IFC Speed Queen .................................................................. 8, 9

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

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ELECTRONIC SERVICE

1338 Electra Ave., Rowland Hts., CA 91748

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

SERVICES AND SUPPLIES 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. . . . . . $225.00 471977101,105,115 . . . . . . . . . . . . . . . . . call Compass Control Assembly Gen. 6. $175.00 Selecta II Dryer PCB Assembly . . . . $175.00 Maytag Computers . . . . . . . . . . . . . . . . . . . . . $65.00 23004118 . . . . . . . . . . . . . . . . . . . . . . . . . call W10343020 . . . . . . . . . . . . . . . . . . . . . . . call 33001129 . . . . . . . . . . . . . . . . . . . . . . $85.00 ADC 137213, 137234, 137240 . . . . . . . . . . $65.00 137253,137274,137275 . . . . . . . . . . . . . . call Igniters (Fenwall only). . . . . . . . . . . . . . $30.00 Speed Queen / Huebsch Computers . . . . . . . . . . . . . . . . . . . . . $65.00 Motor Control . . . . . . . . . . . . . . . . . . . $95.00

WASCO GEN 5 DOOR LOCKS & TIMERS REBUILT Door Lock $75 • Gen 5 & 6 Timer $85 WASCO Gen 4 Timer $85 • Continental Timer $95 DRYER COMPUTER BOARDS ADC Stack $60 • Single $45 Huebsch SQ Board $45 Huebsch Old Style Board $55 Stack Dexter/Continental $75 Washer Coin Boards $65 Some prices may vary!!!!

JECON INC. PMB #272 / 5 CONTINENTIAL AVENUE STE.#2 • 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

www.americancoinop.com

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IPSO 209/00440/70 (Micro 20). . . . . . . . . . $115.00 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

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

STATEMENT OF OWNERSHIP 1. Publication Title: AMERICAN COIN-OP 2. Publication Number: 0092-2811 3. Filing Date: 9/28/2015. 4. Issue Frequency: Monthly 5. Number of Issues Published Annually: 12 6. Annual Subscription Price: $39.00. 7. Complete Mailing Address of Known Office of Publication: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Contact Person: Charles Thompson, 312-361-1700. 8. Complete Mailing Address of Headquarters or General Business Office of Publisher: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. 9.

Full Names and Complete Mailing Addresses of Publisher, Editor, and Managing Editor. Publisher: Charles Thompson, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Editor: Bruce Beggs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. 10.

Owner: American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County. Charles Thompson, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County.

Bruce Beggs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County.

Donald Feinstein, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County.

Nathan Frerichs, American Trade Magazines LLC, 566 West Lake St., Suite 420, Chicago, IL 60661-1410 Cook County.

Suhler Family Investment Office LLC, 188 Long Neck Point Rd., Darien, CT 06820 Fairfield County. 13. Publication Title: AMERICAN COIN-OP 14. Issue Date for Circulation Data Below: September 2015.

15. Extent and Nature of circulation: (average number of copies each issue during proceeding 12 months=”X”) (Number copies of single issue published nearest to filing date = Y”)(a)Total Number of Copies (Net press run): X=14,604, Y=14,562. b. Legitimate Paid and/or Requested Distribution (By Mail and Outside the Mail). (1) Outside County Paid/ Requested Mail Subscriptions stated on PS Form 3541.

(Include direct written request from recipient, telemarketing and Internet request s from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) X= 9,057, Y=9,056. (2) In-County Paid/Requested Mail Subscriptions stated on PS Form 3541. (Include direct written request from recipient, telemarketing and Internet requests from recipient, paid subscriptions including nominal rate subscriptions, employer requests, advertiser’s proof copies, and exchange copies.) X=0, Y=0. (3) Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and Other Paid or Requested Distribution Outside USPS®: X=0, Y=0. (4) Requested Copies Distributed by Other Mail Classes Through the USPS (e.g. First-Class Mail®): X=0, Y=0. (c) Total Paid and/or Requested Circulation (Sum of 15b (1), (2), (3), and (4)):X=9,057, Y=9,056. (d) Nonrequested Distribution (By Mail and Outside the Mail). (1) Outside County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources): X=5,349, Y=5,350. (2) In-County Nonrequested Copies Stated on PS Form 3541 (include Sample copies, Requests Over 3 years old, Requests induced by a Premium, Bulk Sales and Requests including Association Requests, Names obtained from Business Directories, Lists, and other sources): X=0, Y=0. (3) Nonrequested Copies Distributed Through the USPS by Other Classes of Mail (e.g. First-Class Mail, Nonrequestor Copies mailed in excess of 10% Limit mailed at Standard Mail® or Package Services Rates): X=0, Y=0. (4) Nonrequested Copies Distributed Outside the Mail (Include Pickup Stands, Trade Shows, Showrooms and Other Sources): X=38, Y=5. (e) Total Nonrequested Distribution (Sum of 15d (1), (2), (3) and (4)): X=5,387, Y=5,355. (f) Total Distribution (Sum of 15c and e): X=14,444, Y=14,411. (g) Copies not Distributed (See Instructions to Publishers #4, (page #3)):X=160, Y=151. (h)Total (Sum of 15f and g): X=14,604, Y=14,562. (i) Percent Paid and/or Requested Circulation (15c divided by f times 100): X=62.70%, Y=62.84%. 16. Publication of Statement of Ownership for a Requester Publication is required and will be printed in the November 2015 issue of this publication. 17. Signature and Title of Editor, Publisher, Business Manager, or Owner: I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties): Charles Thompson, Date 9/28/2015.

NOVEMBER 2015 AMERICAN COIN-OP 39

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NEWSMAKERS

NEW JERSEY COUPLE WINS ANNUAL SPEED QUEEN ESSAY CONTEST Speed Queen has named Emmanuel and Tyesha Offiong, owners of A&Q Laundry Room in South River, N.J., the winners of its 2nd annual “My Success Story” essay contest and a $100,000 grand prize.

“Tyesha Offiong, wife and mother of two, and her husband Emmanuel have remained committed to the needs of their community, and recognized the benefit of investing in their Laundromat, and therefore their business has thrived,” says Jeff Harvey, brand (From left) Tyesha and Emmanuel Offiong, in their manager, Speed Queen A&Q Laundry Room, South River, N.J., are the winFinancial Services ners of Speed Queen’s 2nd annual “My Success (SQFS). “We are hon- Story” essay contest and a $100,000 grand prize. ored to join them on (Photo: Alliance Laundry Systems) their journey, and we are pleased to recognize their accomplishments.”

Joining Harvey to surprise the family with the news were Dick Luca, regional vice president at distributor Super Laundry; Andrea Mueller, Speed Queen Commercial brand manager; and John Smith, Speed Queen Commercial regional sales manager.

Speed Queen says it chose the Offiongs’ entry because of their Laundromat’s creative promotions and workshops, use of advanced technologies in managing their business, and dedication to the betterment of their community.

The $100,000 prize will be applied toward the Offiongs’ recent loan for new equipment through SQFS. “We could not believe that we had been selected as the winners of the Speed Queen essay contest,” says Emmanuel Offiong. “We have been so fortunate to own a Laundromat in a great community and to have formed such a strong relationship with our manufacturer and distributor.”

DAVIS COMMERCIAL NEWEST ELECTROLUX/WASCOMAT DISTRIBUTOR Davis Commercial Laundry Solutions is now an authorized Electrolux and Wascomat laundry equipment distributor for Georgia and Alabama, Laundrylux reports.

Based in Marietta, Ga., Davis Commercial Laundry Solutions is owned by longtime industry veteran Richard Davis.

“We couldn’t be happier to have a laundry professional of Richard’s caliber represent Electrolux and Wascomat in the marketplace,” says Allen Berndt, regional business development manager for Laundrylux. “Not only does Richard possess great coin laundry acumen and an intricate knowledge of our products and the laundry business, but he is also well respected within the industry.”

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Davis says it was important that he align his business with the “best manufacturers in the market.”

“I truly believe in Electrolux and Wascomat—they have raised the bar and set new standards in quality, durability and efficiency,” he says. “In addition, I’m extremely proud to represent a company as committed to sustainable business practices and the environment as Electrolux is.”

DEXTER APPOINTS LAUNDRY OWNERS WAREHOUSE AS DISTRIBUTOR Laundry Owners Warehouse reports that it has been appointed a distributor for Dexter Laundry vended products in the four eastern Florida coastal counties of Broward, Palm Beach, Martin and St. Lucie.

“We are excited at this new opportunity to represent the industry’s premier brand and assist operators in their quest to maximize store profitability,” says Laundry Owners Warehouse CEO Todd Fener. “Dexter’s well-deserved reputation for rugged, energyefficient machines that perform day in and day out are well-suited to meet the needs of professional laundry operators.”

The Fort Lauderdale-based distributor will be showcasing the new Dexter C-Series vended products at its central Broward facility as well as on its redesigned website, www.lowlaundry.com.

“Dexter was impressed with the passion and drive of the Laundry Owners Warehouse team to serve one of the nation’s fastest growing regions,” says Dexter Laundry Regional Sales Manager Rick Case. “We welcome Laundry Owners Warehouse to the Dexter family of distributors and look forward to them introducing the latest product innovations and improvements to laundry owners seeking a competitive advantage.”

CLEAN SHOW 2017 MOVES UP THREE WEEKS Riddle & Associates, the show management company for the Clean Show, has secured new, earlier dates for Clean 2017. The show is now scheduled for Monday through Thursday, June 5-8, 2017, at the Las Vegas Convention Center.

“We are extremely pleased that we were able to find these dates for Clean 2017,” says John Riddle, Clean Show manager and president of Riddle & Associates. “The show was originally scheduled for the very end of June, with move-out dates running through the first week of July. We feel these [new] dates will work better for both our exhibitors and attendees.”

Clean 2015 in Atlanta drew 11,264 people representing all 50 U.S. states and 88 foreign countries.

“The response to Clean 2015 was overwhelmingly positive and generated great excitement about Clean 2017,” explains Clean 2017 Chairman Mary Scalco, CEO of the Drycleaning & Laundry Institute, one of Clean’s five sponsor associations. “The early June, Monday to Thursday, pattern has always worked well for the Clean Show when we have been to Las Vegas in years past.”

Exhibit sales will open to Clean 2015 exhibitors in spring 2016 and to new exhibitors soon thereafter.

ACO www.americancoinop.com

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