American Coin-Op - December 2016

Improving the Industry

R UNDTABLE Experts share views on ways to keep winning over customers

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CONTENTS DECEMBER 2016 VOLUME 57 ISSUE 12 COVER STORY

IMPROVING THE INDUSTRY American Coin-Op invites a “roundtable” of experts to size up the industry today, identify opportunities for improvement, and define the manufacturer’s, distributor’s and store owner’s roles in moving the industry forward.

(Cover image: © iStockphoto/Leontura)

INSIDE 8 GOIN’ WITH COHEN: OPEN-AIR RELIC STILL POWERS ON This month, Laurance Cohen travels to Vero Beach, Fla., where Flamingo Laundry’s expansive open-air storefront has been beckoning area residents for more than a half-century. “I’d say it’s past history,” owner Reynolds Smith says of the open-air laundry business model, “but it still works for us.”

27 CLEAN 2017 HOUSING, REGISTRATION

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28 COIN COMPOSITION ALTERNATIVES

While the issue of changing the metal composition of coins has come up in Washington in recent years as a means to save money, the U.S. Mint believes that changing the composition of quarters is not a viable alternative because doing so would increase the potential for fraud, according to a U.S. Government Accountability Office report.

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12 COLUMNS 30 CREATE A COMFORTABLE, COZY PLACE TO SOCIALIZE The Coin Clean Laundry in Jasper, Alberta, Canada is the place to be, writes columnist Howard Scott, because it’s social, comfortable and cozy. Envision the café world and try turning your laundry into a gathering place with a signature identity unique to your market.

DEPARTMENTS 4 VIEWPOINT 6 YOUR VIEWS SURVEY 34 NEWSMAKERS

37 WEB UPDATE 38 CLASSIFIEDS 39 AD INDEX

8 A CLOSER LOOK Freshly laundered clothes are folded amid open breezes and a bright atmosphere at Flamingo Laundry, Vero Beach, Fla.

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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

WHERE THE ROAD LEADS IMPROVING THE INDUSTRY Ticking off the remaining days of the year on the calendar presents us a good opportunity to look back over 2016 and see how far we’ve come. But it’s an even better chance to look at the signposts up ahead to see where the road may lead us.

I invited several manufacturers and distributors to compare the self-service laundry industry to where it was five years ago, to identify some opportunities for improvement by store (implementing some of their ideas wouldn’t cost you a cent), Bruce Beggs and to define the roles of manufacturer, distributor and store owner in pushing our industry forward.

How deep do your responsibilities lie? Do you owe anything to anyone except yourself and your business? What the experts have to say may surprise you. My Improving the Industry Roundtable article opens on page 12.

COIN COMPOSITION ALTERNATIVES With the U.S. government still kicking around the idea of changing the metal used in minting coins to save money (several years ago, metal prices rose to the point where it costs more to produce a penny or nickel than the currency value one holds), might it be decided to change the quarter and possibly require modification of coin-operated machines? Not likely, because the U.S. Mint believes changing the composition of quarters to a plated, steel-based coin would increase the potential for fraud. Read the details on page 28.

HAPPY HOLIDAYS On behalf of the entire American Trade Magazines staff, I wish you and your family a joyous holiday season. I look forward to seeing you back here next year.

Bruce Beggs Editorial Director

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Roger Napiwocki, Production Manager 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

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 $46.00; 2 years $92.00.

Foreign, 1 year $109.00; 2 years $218.00.

Single copies $9.00 for U.S., $18.00 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 57, number 12. Editorial, executive and advertising offices are at 566 West Lake Street, Suite 420, Chicago, IL 60661. Charles Thompson, President and Publisher. American Coin-Op is distributed selectively to owners, operators and managers of chain and individually owned coin-operated laundry establishments in the United States. The publisher reserves the right to reject any advertising for any reason. © Copyright AMERICAN TRADE MAGAZINES LLC, 2016. 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 SAY INDUSTRY IN BETTER STATE THAN FIVE YEARS AGO

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

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The vended laundry industry is in a better state than it was five years ago, says the majority of coin laundry owners polled in this quarter’s American Coin-Op Your Views survey.

Among respondents, 69.4% say things are generally better than five years ago. About 17% say things are worse, and 13.9% say the industry is in the same state it was in 2011.

And just what made respondents answer in the way they did?

Here are some of the explanations: • “Revenue has been good and steady. There is room for improvement.”

• “Economic environment is bad for business. Increased minimum wage has had a large impact.”

• “Older population do not want to do their laundry. Great for the wash/dry/fold business.”

• “Revenue growth barely keeping up with growth of operating expenses.”

As for projecting a positive image, a similar majority—67.6%—thinks the industry does a good job of that. Nearly 19% disagree, and 13.5% are unsure.

The survey asked how equipment manufacturers and/or distributors can best help vended laundry owners succeed. Some of the responses: • “Promotions that allow stores to try different equipment before purchasing allows them to be exposed to newer, more efficient equipment.”

• “Promote in social media and TV commercials the advantages to using Laundromats.”

• “Provide preventive maintenance on equipment at reasonable cost. Repairs are inevitable, and owners want a company they can rely on.”

Finally, the survey asked if store owners bear any responsibility to the vended laundry industry as a whole, or if they are responsible only to themselves and their businesses. Some of the responses: • “Must focus on your own business.”

• “Broadly speaking, yes, we all represent the industry.

However, I can only be responsible for my operation.”

• “When owners stand together, they have a louder voice and they are easier to listen to, i.e. taxes, additional laws that can hurt the industry.”

While American Coin-Op’s Your Views survey presents a snapshot of store owners’ viewpoints, it should not be considered scientific. Qualified subscribers to American Coin-Op e-mail blasts are invited to participate anonymously.

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GOIN’ WITH

COHEN

Open-Air Relic Still Powers On

Flamingo Laundry makes most of Florida locale, far from cold winter winds

By Laurance Cohen

A

s cold winter winds begin to howl across the northern tier of the country, you can’t be faulted for being jealous of Reynolds Smith. His coin-op’s windows don’t ice up, and snow never blocks the entryways. You

see, Flamingo Laundry in Vero Beach, Fla., has neither storefront glass nor doors.

Open-air self-service laundries are almost as old as the industry itself. Their quirky design harkens back to the days of the clothesline when laundry was done where nature intended. The format became a fixture throughout the Sun Belt where there was no necessity to enclose the premises to

shield it from the elements. Yet, over time, the concept fell out of favor as panes of glass were erected between the customer and the outside world.

While it’s easy to wax nostalgic for the open-air coin laundry and romanticize the past, there is no doubt as to the simplicity and convenience of this quintessential selfservice model.

Flamingo Laundry’s expansive 100-foot storefront has been beckoning Vero Beach residents for more than a half-century. (Photos: Laurance Cohen) 8

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Veteran Florida Laundromat operator Reynolds Smith on the open-air laundry model: “I’d say it’s past history, but it still works for us.”

The simplicity of easy access to Flamingo Laundry’s machinery has attracted patrons for decades. ents who tote their children along with the laundry give the nod to an open-air format.

“It’s more comfortable for the kids and doesn’t get hot and stuffy,” she explains.

“For them, it still feels like they’re outdoors, and that’s what they like about it.”

Flamingo’s southern exposure is impacted occasionally by heavy vertical rain.

When the skies open up, the fiberglass seating units are pulled in and the safety cones and a floor squeegee come out. Customers take it all in stride.

“People huddle in the middle of the store and fold in the laundry carts,” Thomas points out.

Sometimes, there’s more than just raindrops. The laundry survived — and even flourished — when back-to-back hurri-

canes struck Florida’s East Coast in 2004.

With both open-air stores located on major thoroughfares, the power held, and Smith quickly had customers queuing up to use machines. For two weeks straight, machines ran virtually non-stop except when the government’s mandatory overnight curfew kicked in.

“We were handing out numbers like you do in a deli,” he recalls of the deluge of patrons. The laundry owner and staff also lent a helping hand to storm-ravaged residents by offering potable water.

The only damage sustained at the two stores was some roof damage at his main Flamingo venue, which was temporarily patched with a tarp. Smith has since devised a hurricane action plan detailing

▼

“They back their car up, pop their trunk, and just load it right into the machine,” Smith smiles. “Wherever they park, it’s right there.”

Smith, who has 35 years of ownership under his belt and operates both open and enclosed storefront coin-ops on Florida’s eastern Treasure Coast, sees the wash trade — like others — moving behind closed doors.

“I remember visiting Lowe’s for the first time over a decade ago and thought to myself, ‘Here’s a lumber yard that’s enclosed and air-conditioned.’ The world is definitely going towards air conditioning, and customers expect it,” he says. “I don’t see anyone building open-air stores anymore — they might be doing it out there but I haven’t seen it.”

The freestanding Flamingo Laundry made its debut in Vero Beach in 1955 when Smith’s uncle laid out a single line of machinery covered by a 12-foot overhang.

Expansion in the 1960s tripled the store’s depth and provided for an enclosed central station to bisect the two open wings. With its wide 100-foot frontage, the coin-op became a beacon in the night along the Florida Highway 60 arterial.

In the early ’80s, Smith, who was fresh out of college, and his younger brother Scott, a fireman by profession, purchased Flamingo and acquired other laundries, including a smaller, unattended 20-yearold open-air location. The pair thrived with fixer-upper laundries and presently operate four stores, two of which have no front door and no last load.

The multi-store operator doesn’t believe he loses out trade to air-conditioned stores.

“Customers get comfortable with the attendants and the store. They’re loyal, and I don’t think they’d drive out of their way to go to another store,” he says, adding that his open-air laundries are conducive to social interaction between regulars. “We had a group of ladies coming each week for a decade. They could have done their laundry at their houses yet they’d come in and have fun.”

Weekly Flamingo patron Pat Ryan, who was folding up the last of her weekly wash on this particular 90-degree afternoon, says she doesn’t mind forgoing an airconditioned setting.

“I don’t find anything wrong with it, and they have fans,” she says. “I can do my laundry and sit in my car if I need to.”

Attendant Cathy Thomas notes that par-

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GOIN’ WITH

COHEN preparations from tying down dryer doors to relocating furnishings and placing tape over coin mechanisms. Those measures were successfully implemented in October when Category 4 Hurricane Matthew skirted the Florida coastline.

The store veteran shrugs off the added maintenance that goes with a windowless laundry, citing the sturdy design of today’s equipment. Sun-bleached touch pads, a little more rust at the edges, and dust go with the territory, Smith points out, although he considers the round-the-clock exposure when it comes to design.

“We want to make the open-air 24-hour stores what I call ‘bulletproof’ — adapt it like you would any other public space.”

Incidents of crime and vandalism are “negligible,” according to Smith, with the last attempted break-in of a vending machine foiled by an alarm two years ago.

Bright lighting, clear sight lines and cameras all contribute to maintaining security.

The store is attended from 6:30 a.m. to 10 p.m.

Where his enclosed and open stores clearly stand apart is the cost associated with climate control — adding $2,000$3,000 per month when electricity, airconditioning maintenance and unit replacement are factored in, the operator reports.

It’s a high price to pay to keep both he and his patrons cool in the Florida heat. “I like working in an air-conditioned store and fixing machines; it’s more comfortable,” he grins.

Smith still gets a chuckle when vacationing snowbirds shake their heads in amazement at his airy laundry and reminds them

Freshly laundered clothes are folded amid open breezes and a bright atmosphere.

“They back their car up, pop their trunk, and just load it right into the machine. Wherever they park, it’s right there.”

—Reynolds Smith, Flamingo Laundry of the rarity of a 30-degree temperature reading in the peninsula.

Installing a storefront on the 60-year old laundry is not even an option, given the loss of critical front parking stalls and the “hoops” Smith would have to jump through at city hall. He’s content with holding on to a piece of the industry’s ties

Installing a storefront on the 60-yearold laundry is not even an option, given the loss of critical front parking stalls and the “hoops” Smith would have to jump through at city hall.

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to an earlier time.

“I’d say it’s past history, but it still works for us,” he says.

When asked if he would ever consider another open-storefront laundry, Smith quickly dismissed the notion.

“If we were going to do it all over again, we’d build an enclosed store,” he says.

“People are used to air conditioning down here.”

He did, however, not completely shut the door to the concept — even if he had one to close: “Only if I was building a store in the Bahamas would it be open-air.” ACO Laurance Cohen crisscrosses the country seeking out the most unique vended laundries. He served as American Coin-Op editor in the early 1990s and currently operates Laundry Marketing Concepts based in Hallandale Beach, Fla. He can be reached at goinwithcohen@outlook.com. www.americancoinop.com

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(Image: © iStockphoto/ Leontura)

Improving the Industry

R UNDTABLE Experts share views on ways to keep winning over customers

by Bruce Beggs, Editorial Director

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D&M Equipment • Gary Gauthier, national sales manager, vended laundries, manufacturer Pellerin Milnor Corp.

• Kevin Hietpas, director of sales, manufacturer Dexter Laundry • David Hoffman, sales manager, distributor Gold Coin Laundry Equipment • Joel Jorgensen, vice president of sales and customer services, manufacturer Continental Girbau • Bryan Rausch, regional sales manager, manufacturer Whirlpool Corp.

Commercial Laundry • Jim Rosenthal, North American sales manager, manufacturer Speed Queen • Kathryn Rowen, North American sales manager, manufacturer Huebsch • Mark Schram, North American sales manager, manufacturer Primus

Q: Before we talk about making

improvements, we need to assess where the industry stands today.

How would you describe the current state of the vended laundry industry? Are things generally better, worse, or the same compared to five years ago?

Antene: The state of the vended laundry industry is very good and considerably better than five years ago. Our customers are very optimistic about their businesses these days.

Frankian: Here in our market that we serve (Chicago and suburban Chicago, northwest Indiana and southern Wisconsin), I have seen a better state of business today than five years ago. We are building more new stores and doing major retooling on older Laundromats at a higher pace.

Gauthier: The vended laundry industry is definitely stronger and smarter than it was five years ago. In 2011, many parts of the country were still digging out of the financial crisis we experienced in 2008-10.

Access to capital has improved for our industry, which is typically a sign of a

▼

A

s we come to the end of another year, where do you see your vended laundry operation? Is it improving?

Growing worse? About the same?

While anchored in a service that is decades in the making, the coin laundry industry still is subject to influences both internal and external. While the basics of self-service laundry operations are largely unchanged, there are other factors at play when it comes to building your business.

American Coin-Op invited representatives from several manufacturers and distributors to size up the industry today compared to five years ago, to identify opportunities for stores to improve, and to establish the manufacturer’s, distributor’s and store owner’s roles in moving this industry forward.

Seated at our virtual roundtable are: • John Antene, president of coin laundry sales and marketing, distributor CoinO-Matic • Joe Frankian, president, distributor

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stronger overall economy, but also a good health indicator for our specific market.

Hietpas: The state of the industry is much stronger today. Five years ago, many areas of the country were still in the early stages of recovering and rebuilding from the economic challenges of the mortgage crisis. Securing financing for a new project was not easy, and rental rates in many areas of the country had not even started to come down. Looking back, I think most laundry operators would tell you that the worst was behind them, but things had only slowly started to improve.

Hoffman: I would say that things are about the same as five years ago. Even though we’ve seen utility costs rise and rents rise, we’ve seen many of the operators increasing vend prices to offset that increase and keep profit margins the same.

Jorgensen: Overall, the industry is stronger than five years ago. Weaker stores are disappearing, while better managed and stronger stores are prospering. The industry enjoys more sophisticated owners who do a good job overseeing operational management and use advanced equipment and card payment systems. While there’s still lingering, inadequate, hobby laundries that need to be updated or removed, overall, the vended laundry industry is robust.

Rausch: It’s definitely an exciting time to be in the vended laundry business.

Compared to five years ago, we’ve seen various changes, including an increasing number of multi-store owners. Former single-store owners are choosing to grow their investments—expanding their vended business to include two or three more facilities.

We’ve also seen vended store growth in high-traffic areas to meet the need for self-service laundry. This is likely to continue—with the potential to add wash/dry/ fold services based on the customer base.

In addition, we’re seeing a push toward new owners taking possession of older

“The industry enjoys more sophisticated owners who do a good job overseeing operational management and use advanced equipment...”

—Joel Jorgensen, Continental Girbau laundry facilities, who are conducting complete face-lifts on dilapidated stores. As part of these renovations, owners are installing newer, energy-efficient equipment, which is a trend that has remained constant throughout the years. Energy-efficient equipment, which appeals to eco-conscious patrons, also helps to reduce utility costs and can increase a store’s bottom line.

Rosenthal: The vended laundry industry is thriving and continuing to grow. Store owners who advertise, promote and reinvest in their business with cutting-edge equipment are reporting strong vend revenue and profit growth. Our customers who replace outdated machines with equipment that features advanced control systems are able to manage their businesses more efficiently and have unprecedented levels of profitability. In fact, customers expect to pay 10-20% more when using new equipment, and beyond the opportunity to increase vend prices, there are many new profit drivers the innovative equipment provides.

Rowen: Based on what we’ve seen, I would have to say the industry is very strong right now. We came out of the recession in 2009 with a vengeance, and the development of newer, more durable and certainly more energy-efficient equipment has fueled a major increase in equipment replacement. The return on investment with replacement is extremely attractive

“Make a plan. Like any journey, it starts with knowing where you are, and where you want to go.”

Q: Let’s break down a vended

laundry operation just a bit.

For each of these aspects, name at least one way that any store owner can seek improvement, and describe a general plan or course of action to achieve said improvement.

EQUIPMENT

Frankian: By replacing old antiquated machines with modern, energy-efficient washers and dryers. Updating old water heaters with new, high-efficiency systems.

Adding multiple vending systems, like credit card and dollar coin acceptance.

Gauthier: Ensure that all machinery is operational. If everything is running, make sure it can stay that way by performing preventative maintenance on a regular schedule.

Hietpas: Make a plan. Like any journey, it starts with knowing where you are, and where you want to go. A store owner needs to understand where they are today – equipment mix and age of that equipment, and then develop a plan on where they

▼

—Kevin Hietpas, Dexter Laundry

in terms of both operating expenses and customer experience. Customers are looking for a positive retail experience and are opting to frequent the Laundromats that are well-run, clean, and provide important amenities such as free Wi-Fi. Schram: The coin laundry industry is very robust in most markets. The improved economy over the last five years has helped loosen up credit while keeping interest rates at historically low levels. This is a great time to invest for the future.

Many new stores have increased footprints, and have added more customer amenities and larger-capacity machines.

The image of the coin laundry industry improves every year, which has also increased customer expectations.

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—Joe Frankian, D&M Equipment

want to take their business. If they don’t have a vision of what their store needs, look for help. Get advice from other owners whose opinion they trust, from their local distributor, or simply develop their own ideas based on what they believe will best meet the needs of their customers. At the end of the day, the “winner” in any retail business is the one who offers the best value to their target customers.

When talking with folks about updating equipment, I advise owners to start with what they really want, and get an actual quotation on the cost to do that. With the financing options available today, many owners are surprised to see that they can afford to do what they really want, especially when they also look at the revenue side of the equation and the increased revenue delivered by the equipment they’re adding.

Hoffman: Updating equipment in the store will help lower your utility costs, because the newer equipment is more energy-efficient than the old equipment.

Jorgensen: It doesn’t matter who you are, you can overhaul the structure of your laundry in terms of efficiency, initiating a good preventative maintenance program and updating signage and services, according to demographics and location.

Once that’s shored up, look at replacing old equipment with high-speed and efficient equipment. High-speed washers generating more than 200 G-force will ultimately improve customer turnover, lower laundry completion time, and cut dryer operation and resulting gas consumption.

Choose equipment that saves water and reduces the time it takes for your customers to complete laundry. Invest in an electronic payment system that accepts a variety of payment options and helps you better manage your store remotely! Then market your high-speed store aggressively. You’ll be surprised how business improves!

Rausch: For recently purchased equip16

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ment, begin with proper installation. If done the correct way, there should be ample space behind washers and dryers for easy servicing and maintenance, which can assist in keeping long-term machine costs down. In addition, make sure to install dryers on the exterior wall whenever possible. This helps ensure optimal conditions for proper exhaust and make-up air needs.

Rosenthal: Revolutionary equipment with advanced controls provide your customers with many added benefits and provide them with more options when doing their laundry. It’s important to communicate these offerings to your customers. These advanced capabilities will help increase customer satisfaction and increase profits.

For example, multi-level pricing lets the store owner charge different prices for each wash cycle to capitalize on premium selections. Additionally, creating a pricing structure encourages customers to use the equipment in the way that best fits their budget and washing needs. A “heavy soil” program can increase washer revenue by 4-5% and, overall, cycle modifiers can add more than $2,000 in profit per year.

Time-of-day pricing also lets store owners take advantage of peak laundry hours and boost usage during typically slower periods by customizing price settings according to traffic volume.

Rowen: The newest equipment has

STORE CONDITION Gauthier: Evaluate your store with three important considerations: find a way to make your store cleaner, better-lit and more attractive to customers.

Hietpas: Start by visiting five other laundries in your general area. Rank the stores (including yours) on a 1–6 scale in the following areas: floor, walls, ceiling, lighting, décor, and bathrooms. This simple exercise will give you an opportunity to benchmark the other stores that potential customers moving into your area might try in addition to yours. By ranking your own store among its peers, it should give you a clear idea of where you need to start.

Hoffman: Update and give the store a fresh look every couple of years, with things such as painting, replacing missing or damaged ceiling tiles and, of course, making sure you have the latest energyefficient lighting. Some local electric companies will offer 50-70% discounts on lighting when you update it.

▼

“We are building more new stores and doing major retooling on older Laundromats at a higher pace.”

improved aesthetics, reduced cycle times, and creates more efficient water and utilities usage. Many machines have upgraded options within their controls that can provide incremental revenue and ability to manage maintenance more effectively.

Schram: Updating older equipment with new equipment featuring flexible controls can bring both increased profits and energy efficiencies. As a store owner, being able to adjust water levels can be a major factor in determining water costs. Having controls that can adjust languages, pricing structures, or utilize marketing components can appeal to a larger spectrum of customers.

Antene: No doubt, customers prefer new laundry equipment. For the customer, new laundry equipment cleans clothes better and faster, thus offering them better service. For the store owner, new equipment saves a ton on utility costs. It’s a win-win situation.

“Evaluate your store with three important considerations: find a way to make your store cleaner, better-lit and more attractive to customers.”

—Gary Gauthier, Pellerin Milnor Corp. www.americancoinop.com

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Rausch: Safety should be the foremost concern. Incorporating numerous large windows and installing bright lights are great first steps in meeting that need.

Designing aisles to run parallel to the front of the store allows an unobstructed view and can also assist with the flow of traffic. In addition, keeping 5 to 6 feet between installed product allows ample space for active patrons. Finally, it’s important to implement a regular cleaning schedule to help with overall appearance.

Rosenthal: A Laundromat is a retail business. Therefore, regular upgrades to your store go a long way in providing a superior customer experience and customer loyalty.

Every touch point with your store is part of the comprehensive customer experience — cleanliness, equipment, restrooms, atmosphere and customer service. By keeping your Laundromat clean; putting a fresh coat of paint on the walls; adding bright, modern lighting; and providing plenty of comfortable seating, you’ll create an environment that your customers will want to visit more often.

Rowen: Providing a safe, clean environment is simply a ticket to admission for a Laundromat. Although the goal should be to get your customers in and out of the store as quickly and hassle-free as possible, providing an environment that’s inviting and always friendly, with equipment that’s clean and in good working order, is great insurance to keep them coming back.

Schram: Modernization of tired stores is a must to retain loyal customers and reduce utility costs. Aside from new equipment, customer experience is moving to the forefront of why customers choose a specific business with which to interact.

Most Laundromat guests have access to smartphones, and have downtime waiting for the completion of their wash. Offering technology like wireless Internet can bring new customers into the storefront. Put

“Most stores have absentee owners, so it’s important that your attendants know how to handle and defuse customer complaints.”

—David Hoffman, Gold Coin Laundry Equip. another way, not offering free Wi-Fi may create a perception that your store is out of touch and may cause some consumers to go elsewhere.

Antene: Customer experience is more essential today than ever. Customers gravitate to Laundromats where they feel safe and get their laundry completed quickly.

Make sure your business is bright and clean, with all laundry equipment in working order.

Frankian: Making the Laundromat more modern. Adding LED lighting and largescreen televisions. Replacing old folding tables and seating units, and floors if needed. Adding security cameras. Having new changers and bill breakers. Ensuring restrooms are clean and well-stocked. Adding Wi-Fi. Making sure all the washers and dryers are wiped down and clean at all times of the day and night. I see too many Laundromats that are run-down, old and very tired-looking.

MARKETING AND PROMOTIONS Hietpas: I’ve always been a believer that the best advertising is happy customers, and that starts with a great experience in your laundry, a clean and well-lit interior, equipment that is in good working order, plenty of clean folding space (folding is the last thing people do before leaving your store), and timely resolution of any

“Safety should be the foremost concern. Incorporating numerous large windows and installing bright lights are great first steps...”

—Bryan Rausch, Whirlpool Commercial Laundry 18

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problem they have.

Are your attendants trained and empowered to solve customer complaints? Does your store have a phone number to call in the event of a problem? In this age of social media, customers are posting their experiences all the time — give them a great experience and they’ll post about it.

Unfortunately, if you give them a bad experience, they’ll post about that, too.

To help new customers find your store, I’m also a believer in nice signage. Too many newer owners pay a high rent for a great location and then “under-invest” in outside signage. If your signage is outdated or doesn’t make you easy to find, consider investing in a new one.

Hoffman: Give the store a fresh look with new interior and exterior signage. Many of the stores have the same signs from when they opened 10 years ago, and they offer no promotions or specials, such as raffles.

Rausch: Are you currently sending out marketing materials and not seeing a result? Maybe you’re not doing it the right way. The first step is to create a plan, goal and call to action. Test the market—a little at a time—and measure it along the way. If it does well, great; and if you need to tweak something, starting small allows you to make that change at a minimal cost.

Supplementary to marketing is social media, which is becoming more and more important in the commercial laundry industry. Creating an online presence— whether it’s through Facebook or setting up a page on Google My Business—allows accurate store information to be easily accessible. Managing these profiles, sharing pictures and running promotions can also be executed at minimal cost.

Rosenthal: Effective marketing isn’t just about flashy logos or the latest social media trends, it’s about knowing your audience and developing a plan to effectively commu(continued on page 22) www.americancoinop.com

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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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T o l earn more about ESD Pay ment Sy s y our l ocal ESD distributor or ESD sal es

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Brian Holland, Partner - The Laundry Café

use they have a great reputation in our d us with excellent service and assistance M system up and running smoothly.”

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—Kathryn Rowen, Huebsch

nicate with them and develop your brand.

One to two percent of a store’s gross annual revenue should be dedicated to internal marketing, which can include contests, giveaways, specials, signage and loyalty programs. Another 2-3% of a store’s annual revenue should be dedicated to external marketing, such as speaking to your customer about the store and services. It’s important to keep in mind that oftentimes a consumer needs to see your marketing three to seven times before they will recognize the brand and retain the information.

Rowen: Embracing and leveraging social media to engage and communicate with their customers is a must. Good store owners actively manage their Facebook pages, Yelp reviews and Google Places accounts to respond to positive comments and turn any negative comment into an opportunity to rectify an issue in a way that is visible to the rest of their customer base. They also reward their customers for their continued loyalty and make them feel like their opinion is valuable.

Schram: If your Laundromat does not have a web presence, you may not exist (in a marketing sense). Old-school marketing tactics (print ads, direct mailers, radio ads, etc.) do work, especially to reinforce branding messages. However, to be “found” means having some sort of online existence so search engines can find your business for potential customers who are seeking your services. Elaborate web pages are not always needed, and a good social media consultant (i.e. the teenager down the street) can produce big results with minimal investment.

Antene: Because Laundromats draw their customers from a relatively small geographic area, it is inexpensive to promote with direct mail, e-mail and digital advertising. Too many store owners do not take advantage of this. New laundry equipment has a ton of technology that makes it 22

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simple to coordinate vend prices and cycles to marketing and advertising programs. All good stuff.

Frankian: The new washers have a number of built-in pricing options, such as time-of-day pricing, extended wash, water tier pricing, extra wash and rinse options.

I think proper signage inside and out of the Laundromat is important, as is offering customer loyalty programs for free washes, etc.

Gauthier: Develop or enhance your online profile, and reward your customers for reviewing your store on Yelp or other sites.

CUSTOMER RELATIONS Hoffman: Most stores have absentee owners, so it’s important that your attendants know how to handle and defuse customer complaints. Also, it’s important that the customers have a way of contacting the owners, in case they need to reach the owners, either through phone call or e-mail.

Rausch: If the store is attended, make sure employees are friendly. A positive interaction is likely to assist in a customer’s return, just as a negative interaction is likely to assist vice versa. And while having a welcoming staff is essential, it’s also important to build relationships with surrounding businesses. Say a customer buys a candy bar at the store next door. Offering a discount for that same customer who does brings in their laundry after the candy purchase is a simple promotion that can spread quickly through word of mouth.

Another element to think of is an audience’s needs and/or demands. Additional store amenities (some more technical than others) can go a long way with customers.

Prior to integrating amenities into a store, however, determine if there’s a need for a certain amenity.

Rosenthal: Stores and machines that have too many “do not” signs and warnings can lose favor with their customer base. Conversely, a friendly, welcoming

▼

“Embracing and leveraging social media to engage and communicate with their customers is a must.”

store will go a long way in differentiating your store’s customer experience from a transactional one to a full experience.

Today’s Laundromat customers are looking for more than someplace where they can do their laundry. They are looking for a clean, safe store that is equipped with modern machines and additional services and amenities to enhance their Laundromat experience.

Rowen: Doing laundry is work. The less burdensome we can make the task: having plenty of clean, well-running, fast equipment available; managing issues quickly and effectively; and providing a safe and friendly environment, the more likely your customers are to continue to frequent your store. Establishing a way to say “thank you” and let them know you appreciate and value their business is critical to keeping them coming back.

Schram: Any business will benefit from great customer relations and service. It often is the differentiation between competitors, and the reason a customer may select one attended vended laundry over another. The adage of “it will cost more to acquire a new customer than retain an existing customer” rings true. Finding ways to delight the customer can be challenging, but often can be inexpensive.

Listening to your customer base, and reacting to their suggestions where appropriate, can result in increased traffic from positive word-of-mouth advertising.

Antene: Given the choice, all customers do business with the entity they like and respect. For store owners, and staff, it’s a state of mind. Make sure, through and through, your customers know that their needs are important to you and their patronage is appreciated.

Frankian: It is imperative that customers enjoy coming to that Laundromat. That the attendants are proactive and offer help to customers, like unloading and loading cars, explaining how the equipment works, helping them make change, etc. In our market area, there is a tremendous amount of competition, and it is most likely that if you do not offer this [level of service], the customer can find it right around the corner.

Gauthier: Give your customers another way to reach out to you — either posting contact details for you and your staff or building relationships with them via Facebook or other online sources.

Hietpas: When I remember great experiences I’ve had as a customer, the two www.americancoinop.com

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Q: In what ways can manufacturers

and distributors best help vended laundry owners succeed?

Jorgensen: Distributors can help with store assessment by providing a competitive market survey, analyzing existing operations, helping with ways to improve profitability and create new revenue streams.

Distributors can also help by recommending equipment that works into that plan.

If you’ve owned a laundry for a few years, call your distributor in to see how the neighborhood has evolved since you first opened. Your distributor can analyze pricing, your competition and demographics.

Maybe bigger families have moved into the area and all you need is a 90-pound washer to give business a kick-start?

Manufacturers need to listen to distributor and customer likes, dislikes, wants and needs in order to produce high-quality and beneficial laundry equipment. At Continental, we also provide laundry ownership training (Continental University), technical service training, flexible financing and marketing support.

Rausch: Vended owners should rely on their manufacturer and distributor as trusted resources. They’re there to help with choosing equipment, store design, product installation and everything between.

Vended store owners should also create a regular maintenance program based on store size and machine usage—and stick to that program—to ensure they’re providing the cleanest and most inviting environment for customers. For a store to thrive, the owner must be involved with the customers and behind the scenes.

Rosenthal: Not only do leading manufacturers offer reliable and profitable equipment, they also provide comprehensive service and support. Distributors can help guide store owners through every aspect of vended laundry, from initial setup to laundry design, laundry-focused financ24

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“Updating older equipment with new equipment featuring flexible controls can bring both increased profits and energy efficiencies.”

—Mark Schram, Primus ing and service maintenance. Additionally, distributors can help you analyze and maximize your operation and bottom line.

Rowen: A manufacturer’s and distributor’s relationship with a Laundromat owner/investor doesn’t end with sale of the equipment—it truly just begins. That’s why we at Huebsch emphasize the critical importance of selecting a distributor partner with whom you feel extremely comfortable.

As I intimated previously, many of these distributors have been Laundromat operators at one point in time or another so they have a veritable wealth of “lessons learned” and guidance they are graciously willing, ready and able to impart to their business partners, with the ultimate goal in driving success for the owner and the industry.

Schram: After-sale support is critical to any owner’s future success. The partnership between store owner, distributor and manufacturer must pass the test of time, and be fertile for all parties.

A critical component of your equipment purchase should be based on the after-sale support with manufacturers that have a proven track record of long-term support.

After-sale support is not only based on equipment maintenance and repair, but also on technical support, financing and marketing.

Antene: Both manufacturers and distributors have a ton of experience in all sorts of markets, so we see what business practices work vs. what does not. Because of this exposure, we help store owners make better business decisions.

Frankian: The best way is by communicating. We offer annual open houses and service schools to our customers during which the manufacturer attends with us.

We make sure the customers are informed of the changes being made to the equipment, financing offerings, changes in the industry, etc.

I would also recommend operators attend

the Clean Show every two years to see all the offerings of the other manufacturers to see how proactive they are with their products. This is also a way to network with other operators from around the country to see what makes them successful.

Gauthier: Our best efforts can help owners recognize efficiencies through the machinery we provide. Our equipment can’t lower building rent costs but we can help vended laundries be successful and profitable through more efficient machinery. Distributors can be great partners for success in the field as they are closely in-tune with local trends and customer profiles. Most distributors are strong resources for any new investor or existing store owner and can help with layout drawings, demographics, and equipment sizing and site analysis recommendations.

Hietpas: Open communication and good information are critical for a market to function effectively. Store owners are the eyes and ears of what customers want and need, manufacturers are looking for ways to apply new technologies to improve equipment, and distributors are a key intermediary between the two.

In almost 30 years in the industry, I’ve met countless store owners who were incredible laundry operators, and while they focused on finding great locations and taking care of customers, their distributor was a valuable source of information on how to apply some new idea or innovation to that “next” store.

Hoffman: By continuing to improve washer and dryer efficiency without reducing quality and longevity, and to continue to have special features to up-charge on the washers.

Q: What responsibility does an

individual store owner have to the vended laundry industry as a whole? Or are they responsible

▼

things I remember about my visit to that business are 1) things happened exactly as they should have, and 2) people were always knowledgeable and nice.

The best way to resolve customer problems is to not have them in the first place.

If you have equipment or interior maintenance to do, do it sooner, not later. Make sure your employees have been trained properly. Make sure they know what things can happen and what they need to do when those situations arise.

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11/3/16 11:01 AM

“Given the choice, all customers do business with the entity they like and respect. For store owners, and staff, it’s a state of mind.”

—John Antene, Coin-O-Matic only to themselves and their business?

Rausch: A store owner may think they’re only responsible for themselves and their business, but there’s more to it than that.

People always need clean clothes, so a vended laundry plays a necessitated role within the community.

Think of how the store fits into the larger picture. And if the opportunity arises, give back. For example, offering a free-wash day just to say “thanks” is an easy way to give appreciation to the serving customer base.

Rosenthal: The future of our industry will rely on our continued efforts to provide the best possible experience for our customers. Today’s Laundromat customers are looking for more than a facility to do their laundry—they are looking for a clean, safe, welcoming and relaxing environment.

In order to meet these customer demands and operate a state-of-the-art Laundromat, a store owner needs more than cuttingedge equipment. They also need to offer services and amenities that attract new customers and satisfy existing customers.

Store owners who think about their customers’ needs — a comfortable place to sit, free Wi-Fi, vending machines, televisions, child’s play area — and reinvest in their business will stay ahead of the competition and enjoy year-after-year growth thanks to happy, loyal customers.

Rowen: Our industry provides a necessary service to the community. I believe, however we arrived here, we are all very fortunate to be participating in this wonderful service industry. Being a relative “newbie” to vended laundry (coming up on seven years now), I am continually amazed at the willingness of owners across the country to share and impart knowledge with their peers. Other than direct “acrossthe-street” competitors, the banter on the Coin Laundry Association blogs regarding topics of all shapes and sizes is amazing.

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There truly is an innate desire to share information for the greater good, and it’s very heartwarming. That sort of fellowship doesn’t exist in many other industries.

Schram: There are great benefits to socially networking with common-interest business owners. From broadening your industry knowledge, fighting industrydamaging legislation, giving back to the community or maybe mentoring a new owner, there could be big rewards working with other vended laundry owners.

Antene: By following sound business practices, Laundromat owners make more money. In addition, the better they serve their customers, the more demand there is for self-service Laundromats. Collectively, we can all help each other.

Frankian: I believe they need be get involved with the local coin laundry association to come together with the other local operators to fight the pending service tax and higher water rates, etc. The more they get involved, the better informed they will be to address how these issues will impact their business and the way they run it.

Gauthier: I only preach responsibility burdens to my two sons … and they don’t always listen. But, any business owner’s primary responsibility is to the health of their business. I will suggest that a properly managed vended laundry should be able to positively benefit the owner, its customers and

the industry as a whole. Take care of the business and the rest should fall into place!

Hietpas: Success can be defined in many ways, but in order for a laundry to be “successful,” it must first stay in business.

In this respect, an owner’s first responsibility is to ensure the survival of his business.

However, I’m also a believer that in order to be successful, the best thing is to do a good job. And if a laundry owner does a good job, it will reflect positively on the industry.

Could it be possible for a laundry to be financially successful and not necessarily reflect well on the industry? That’s possible, but not over the long term. The great thing about markets is that they are, by nature, self-correcting. A store that might be (financially) successful but not operated up to overall industry standards will always be at greater risk to the entry of a new (well-run) competitor.

Hoffman: I think they should give back to the communities that they serve. We have a lot of customers that raffle off things around the holidays. Around Thanksgiving, I have people who will buy a bunch of turkeys and raffle them off in the community, as well as doing other types of raffles for the community.

Sometimes, laundries will have a Customer Appreciation Day, where they will do free drying or wash for the day.

Jorgensen: That’s an individual choice.

But there are incredible resources and networks locally and nationally that store owners can affiliate with. Join the Coin Laundry Association, laundry forums, or give to the LaundryCares foundation. Get active, get involved, and share your successes and failures.

ACO

Visit AmericanCoinOp.com in December for an expanded version of this story available exclusively on our website!

“A Laundromat is a retail business.

Therefore, regular upgrades to your store go a long way in providing a superior customer experience...”

—Jim Rosenthal, Speed Queen www.americancoinop.com

11/15/16 9:26 AM

Self-service laundry owners planning to attend Clean 2017 in Las Vegas June 5-8 can now register for the trade show and make their hotel reservations on the show’s website, says manager Riddle & Associates.

Attendees can see and compare working equipment in live demonstrations at the large exhibition of commercial laundry, drycleaning and textile services equipment and ancillary products; as of early October, Riddle had sold exhibit space topping 200,000 square feet. Also, there will be more than 25 hours of classroom education presented covering all segments of the textile care industry.

For the first time, a member of any of the five sponsoring national associations can register for a discounted fee of $119 per person (membership must be active at time of registration). The early registration fee for non-members is $149.

Sponsoring associations are the Association for Linen Management (ALM), Coin Laundry Association (CLA), Drycleaning & Laundry Institute (DLI), Textile Care Allied Trades Association (TCATA), and Textile Rental Services Association of America (TRSA).

May 31 is the deadline for pre-registration. After that, attendees will have to register on-site at the Las Vegas Convention Center for a fee of $169 per person, regardless of association membership.

Clean 2017 has contracted with a number of Las Vegas hotels, many of which are new to the event package, Riddle says. To obtain the special rates and amenities being offered, reservations must be made through its lone authorized housing service, Connections Housing: telephone 702-675-6584 or 844-216-0057 (the latter is toll-free in the USA) or via the Clean Show website: www.cleanshow.com.

Show sponsors have selected the following headquarter hotels for their organizations: ALM, Caesars Palace; CLA, Vdara; DLI, Cosmopolitan; TCATA, Renaissance and Westgate; and TRSA, Signature at MGM and Westgate.

Other hotels offered to Clean Show attendees are Bally’s, Flamingo, MGM Grand, Paris, Tropicana and Wynn.

There are rates to accommodate every budget range, from a low of $49 on a weeknight to a weekend high of $239 (most hotels charge a higher rate for Friday and Saturday nights than Monday through Sunday). Published rates do not include taxes, and most hotels also add a mandatory resort fee of $15 to $32 per night.

Complimentary shuttle buses will provide transportation between the Las Vegas Convention Center and most official hotels on show days.

Both show registration and hotel reservations can be made on Clean’s website. Those who prefer to make these arrangements by other means will find forms and instructions on the website.

For more information about Clean, contact Riddle & Associates: 2751 Buford Hwy., Ste. 100, Atlanta, GA 30324 USA; telephone 404-876-1988; e-mail info@cleanshow. com.

ACO www.americancoinop.com

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y t ler ou gal ! k e ec er sit Ch stom eb u rw r c ou ou on

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DECEMBER 2016

AMERICAN COIN-OP 27

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COIN COMPOSITION ALTERNATIVES

(Image licensed by Ingram Publishing)

W

hile the issue of changing the metal composition of coins has come up in Washington in recent years as a means to save money, the U.S. Mint believes that changing the composition of quarters—the coin at the heart of most selfservice laundry operations—is not a viable alternative because doing so would increase the potential for fraud.

This comes from a report, U.S. Coins: Implications of Changing Metal Compositions, issued by the U.S. Government Accountability Office (GAO).

Several years ago, metal prices rose to the point where the unit costs of a penny and nickel exceeded their face value. In other words, it cost more to produce a penny or a nickel than the currency value it held.

The U.S. Mint was directed by statute to develop and evaluate the use of new metals that would reduce the costs of coin production while minimizing the impact on coinaccepting equipment.

The U.S. Department of Treasury is authorized to recommend coin changes to Congress based on U.S. Mint’s analysis but has not yet done so. GAO was asked by “congressional requesters” to examine the Mint’s efforts.

The U.S. Mint estimates that the government could save between $8 million and $39 million per year by changing the metal composition of the nickel, dime and quarter to a plated, steel-based coin. But it has determined that it is not viable to change 28

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U.S. Mint not in favor of changing metal used in quarters due to fraud potential: GAO report

the quarter because less valuable foreign coins would have similar characteristics to a steel quarter and could then be used as counterfeit quarters.

Associations representing selected industries that use coin acceptance machines estimated a cost impact ranging from $2.4 billion to $10 billion to modify an estimated 22 million coin machines, such as vending machines, to accommodate steelbased coins, the report says.

But the GAO found the estimates may be overstated for several reasons. The vending industry assumed 7 million vending machines would require modification, but a 2015 industry study estimated there are 4.5 million vending machines in the United States. Also, the cost estimates assumed steel changes to all coins, but because of fraud concerns related to changing the quarter, machines that only accept quarters (such as coin laundry machines) would not require modification, the report says.

There are an estimated 1.6 million coin laundry machines in use today, according to estimates provided to the GAO. In researching the issue, the GAO selected a group of 11 industry stakeholders, including the Coin Laundry Association (CLA), to contact for their input.

Coin laundry representatives said “there would be few opportunities for updating and replacing of coin machines since washers and dryers tend to be in-service without failure for a minimum of 12 to 15 years,”

the report says.

The GAO asked several stakeholders, including the CLA, if shifting to a coinless business model would carry a lower cost than having to make machine modifications. Coin laundry industry representatives stated that moving to a coinless business “may increase, not decrease, costs because of the substantial capital investment needed to install the necessary infrastructure (i.e., payment mechanisms, Internet, modem, Wi-Fi, and associated wiring) to move to a coinless system,” according to the report.

Also, some reps said the coin laundry industry serves “unbanked” individuals who do not have or use bank accounts, debit cards and other banking services and therefore may prefer using only coinoperated laundry machines.

The Coin Modernization, Oversight and Continuity Act of 2010 requires that the Secretary of the Treasury submit a biennial report to Congress “analyzing production costs for each circulating coin, cost trends for such production, and possible new metallic materials or technologies for the production of circulating coins.”

The U.S. Mint plans to issue its latest report this month. According to officials there, that report will highlight areas of study to include further testing and evaluation of a cupronickel alloy, stainless steel research and development, improvements in production, and outreach to the coin industry, among other things.

ACO www.americancoinop.com

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AN OUTSIDER’S VIEW

CREATE A COMFORTABLE, COZY PLACE TO SOCIALIZE

BRINGING EVERYONE TOGETHER Envision the café world. Every day, tens of millions of people drop in, spend an hour talking to friends, or spend a few hours on their computer, drinking a cup of coffee. Starbucks alone has, what, 7,500 stores?

This café world is relatively new. Forty years ago, there weren’t coffee shops on every street corner. What did people do?

They didn’t hang out at coffee shops. Perhaps their socializing was done at the post office or after-work clubs. Maybe they felt it was wrong to spend time so dissolutely. So, in a sense, the coffee shop industry has revolutionized our social behavior. A high proportion of the population spends time every week in coffee shops.

So, my point is, can’t you make your store into a café?

A greeting place where people meet and talk? A more comfortable space, where people enjoy gathering? A place to bring one’s computer and work? Who knows?

It could become a place where someone might make a friend.

I personally know one couple who met in a Laundromat and went on to become husband and wife.

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How many relationships do you know—spouses, lovers, pals—that began in Laundromats? It happens quite a bit.

Proximity is one key. Time is another. But a third is the atmosphere of doing a mundane task. It helps that one can’t get too snooty in a Laundromat because one does a most basic, most universal task. In a Laundromat, we are all equal.

So, taking that “equalizer” as your starting point, what do you have to do to turn your Laundromat into a cafe? I don’t mean spending a fortune, either. Depending on the size of the operation, you might do one or two or three things to make your store more café-like.

START WITH CLEAN, BRIGHT, AIRY A clean place with bright interior lights and airy outside lighting is the starting point. Perhaps add a table with four comfortable chairs for people to sit and work.

If you have space, two tables would be preferable. You

A clean place with bright interior lights and airy outside lighting is the starting point. Perhaps add a table with four comfortable chairs... might install a coffee machine as part of your vending offerings, or even have a selection of fresh pastries. The attendant can oversee any transactions, but if yours is an unintended store, you might have a vending machine offering basic snacks.

Making your facility Wi-Fi-accessible is good for everyone. Setting up a one-shelf bookcase with 40 novels and non-fiction tomes is a plus. Having a small tray of current magazines is good. Hanging art for sale around the store makes for a really “cool” Laundromat.

Of course, such a store needs an attendant. Leaving art unattended is asking for trouble. But the basics of having a table with chairs along with a coffee vending machine requires no attendant. Voila—you have

▼

Howard Scott

There is a Laundromat in Jasper, Alberta, Canada, named Coin Clean Laundry. It’s the place to be.

Perhaps it’s because of the coffee bar there, called Snow Dome Coffee Bar. Perhaps it’s because of the plush chairs.

Perhaps it’s because of the bank of computers, or the paintings with price tags on the wall. Or it’s because of the book exchange. Or perhaps it’s because of its large size: more than 3,000 square feet.

Whatever the reason, it’s the place to be on a cold winter day—or on a warm summer day, for that matter—because it’s social, comfortable and cozy.

Your store probably is not like this. People go there with one task in mind: cleaning their clothes.

Accordingly, they spend as little time as possible there.

Often, they put in a load and go off to do chores. But consider that, with a little tweaking, with an offering of a few services, your store could be a Laundromat/café.

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AN OUTSIDER’S VIEW

transformed your Laundromat into a café.

Maybe you’ve spent $1,500 to 2,500.

Certainly not as much as a makeover.

A word about the table: It need not be fancy or even new. An old table and four wooden chairs with armrests would do.

This may be something you could find in a Goodwill store or second-hand furniture shop.

To win patronage, you must aggressively (not expensively) promote your offering.

Place a sandwich board sign in front of your store, with the enlarged photo of the table alongside the comment, “Wi-Fi Available Here Now.” Print up circulars that include a photo of your café section. Perhaps the headline reads, “Clean your clothes in a café ambiance.” Or, “Sit with friends while you clean your clothes.” The photo might have

three people sitting at the table, two sipping coffee, chatting, and the third using her computer. A nice, comfy scene.

Hang the circular on all bulletin boards, town message boards, and public buildings. Go to the local college and put on bulletin boards. If you can’t get into dormitories, hire a student to do it for you. Meet young people and hand circulars to them; this could be done as simply as standing on street corners and offering a brief explanation. Advocate to anyone who will listen that your store is a cool place to go to get clothes clean.

It might take a few months but you will see new customers sitting at the table, working on their computers or talking to others while waiting for their wash to finish. Sales will increase.

Why go through this trouble? Why

spend money if you don’t have to?

Why use up valuable space that could house more machines placed there to enlarge capacity? Why try to introduce something extraneous to your main business?

Why? Because you can create a café ambiance that will give you a signature identity in your marketplace. Most likely, there are no café/Laundromat combinations in your marketing area and new customers who are used to frequenting coffee shops will give your store a try.

You’ll become the place to go when someone wants to meet someone else. It will give you cachet.

Simply put, smell the coffee.

ACO Howard Scott is a longtime business writer and consultant. He can be reached at dancinghill@gmail.com.

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NEWSMAKERS

HUEBSCH NAMES EL-KHOURI ITS STORE OWNER OF QUARTER Commercial laundry equipment manufacturer Huebsch recently named Tony El-Khouri the latest recipient of its Store Owner of the Quarter award, the company reports.

El-Khouri revamped a store he purchased in 2013 and turned Sun Valley Laundromat, Glen Burnie, Md., into a successful and flourishing business within a few short years, Huebsch says.

“El-Khouri has a strong work ethic and is dedicated to creating a quality experience for his customers,” says Kathryn Rowen, North American sales manager for Huebsch. “El-Khouri put a lot of hard thought and work into creating the store he has today. From completely remodeling the interior to replacing every machine, all of the decisions he made were to benefit his customers.”

Rowen says Huebsch was honored to have worked with El-Khouri and his distributor, Laundry Equipment Services (LES), Hagerstown, Md., and looks forward to continuing the partnership.

El-Khouri, a computer networker, has worked in the technology industry for more than a decade. He started thinking about other business ventures in 2007 after speaking with friends and family.

Once he decided to purchase a Laundromat, he waited until he found what he considered the perfect location.

In 2013, El-Khouri’s brother-in-law identified a rundown store in Glen Burnie. Within a few months, El-Khouri had purchased and remodeled it, replaced the equipment and opened Sun Valley Laundromat for business.

LES helped El-Khouri determine the perfect mix of equipment for his customers, and they have continued to be a resource for El-Khouri when it comes to running his business or educating him on his equipment.

Computer networker Tony El-Khouri revamped Sun Valley Laundromat, Glen Burnie, Md., with help from distributor Laundry Equipment Services and others. (Photo: Alliance Laundry

ALJCO NOW DISTRIBUTOR FOR R&B WIRE PRODUCTS ALJCO/ALJ Electronics, El Segundo, Calif., reports that it has entered into partnership with R&B Wire Products Inc., Santa Ana, Calif., to distribute the manufacturer’s diversified range of wire, tubular, poly, and vinyl bushel products, servicing the coin laundry and on-premises laundry sectors.

Earlier this year, ALJCO/ALJ Electronics became a distributor of commercial laundry equipment and parts. ALJ Electronics has served the industry for 30-plus years in electronic controls repair and small parts service.

“Joining (in) partnership with R&B Wire Products not only increases our product offerings but it extends the commitment we made to our customers to bring them the latest technology and complete solutions, something we continually strive to do,” says Carolyne Johnson, ALJCO president and engineer. “We appreciate the opportunity to expand our support and help further build loyalty with our customers in the coin laundry, healthcare, hospitality, laundry, janitorial supply, material handling and car wash industries.”

Founded in 1946, R&B Wire Products has expanded its product line over the years beyond standard and front-loading laundry carts to include garment racks; wire, linen and utility carts; wire shelving; bulk linen trucks; turnabout trucks; poly trucks; vinyl bushel and elevated trucks; and hampers.

BUSINESS MAGAZINE NAMES CUMMINS ALLISON ONE OF ‘TOP INNOVATIVE COMPANIES’ Crain’s Chicago Business recently recognized Cummins Allison, a provider of coin- and currency-handling solutions, for placing highly on the business magazine’s Eureka Innovation List.

Crain’s ranked Cummins Allison third on its annual list. The company has consistently been ranked within the top three most innovative companies in Chicago, based on number and quality of patents, since the Eureka Innovation List was launched in 2012.

Patents are an important incentive for research investment and technological development, helping businesses and individuals

▲

Systems)

“LES has been great,” says El-Khouri. “I chose to work with them due to their excellent customer service and equipment offering. The advice and guidance Cameron Clark and his team has provided me is invaluable, and I am so grateful for their partnership.”

With the remodel and equipment replacement, Sun Valley Laundromat customers have been happy since the revitalized Laundromat reopened, Huebsch says.

“My customers have been very pleased with the new Laundromat and the Huebsch equipment, especially those who visited the previous store,” says El-Khouri. “Huebsch, Huebsch Financial and LES have all been wonderful partners, and I know I will turn to them when the day comes to expand my business and open a new Laundromat.”

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KEEP UTILITIES in

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The independent voice of the self-service laundry industry

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NEWSMAKERS

protect their investments, promote their goods and services and prevent deception in the marketplace, says William J. Jones, CEO of Cummins Allison.

“In addition, innovation and a strong U.S. patent system creates jobs, helps U.S. companies compete in the international marketplace and strengthens the American economy,” he adds. “We are appreciative of the continued recognition by Crain’s of Cummins Allison’s long-standing dedication to fostering innovation and delivering industry-changing technologies.”

Crain’s enlisted the help of a Chicago-based merchant bank specializing in intellectual property to create its Innovation List. The uniqueness of inventions covered by patents, as well as other factors, is used to produce a patent quality score, which was averaged across all the patents awarded to a company for the year.

Cummins Allison was awarded 16 patents by the U.S. Patent and Trademark Office in 2015, including new technologies that help count and process coins, improve cash vault operations, automate cash/check deposit processing, increase counterfeit detection and streamline check/currency imaging.

APP-BASED CLEANLY EXPANDS SERVICE TO WASHINGTON, D.C. Cleanly, the New York City-based service designed to reduce the time and stress associated with dirty laundry, recently expanded its operations to Washington, D.C. To date, the Cleanly platform has more than 15,000 people on a District of Columbia waiting list, the company says.

“Cleanly has deliberately taken a measured approach to expansion and growth, perfecting our business model and services before entering a new market,” says Tom Harari, CEO and co-founder of Cleanly.

The expansion is a result of booming business in its operational markets, where Cleanly is profitable on every delivery in all zones, in every hour, seven days a week, the company adds.

“Washington, D.C., is a city that’s been on our radar since our inception, and we’re happy to now provide our services to our nation’s capital,” Harari says.

Cleanly says it is streamlining laundry and drycleaning services to save users over 10 hours every month. Once an order is placed through its iOS app, Cleanly dispatches a valet (pre-screened (continued on page 40)

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WEB UPDATE

Most popular stories from AmericanCoinOp.com for the 30 days ending Nov. 10 — (WE) denotes Web Exclusive

TOP FIVE NEWS STORIES

COLUMNISTS/FEATURES

OUR SISTER WEBSITES

• ALJCO Now Distributor for R&B Wire Products

• Distributor Business Remains Strong, Annual Survey Shows

From AmericanLaundryNews.com:

• Clean 2017 Exhibit Sales Top 200,000 Square Feet

• Trump Wins ... If It Were Up to Coin Laundry Owners (WE)

• New DOL Rule to Double Threshold for Overtime Pay Guarantee

• Keeping Utilities in Check

• Process Improvement, Savings Achieved in Laundries Through Real-Time Technology • Tracking: Numbers and Actions

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• Laundrylux Offers Disaster Recovery Program Following Hurricane Matthew

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ADVERTISERS’ INDEX Advertiser

Page

Advertiser

Page

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

Laundry Concepts ............................29

American Dryer ............................... 15

Laundry Owners Warehouse ............17

Clean Show .......................................33

Metro Laundry Tech Corp. ..............38

Coin-O-Matic ...................................25

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

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

New York Laundry Equipment ........31

CryptoPay .........................................13

Pellerin Milnor ................................. 11

Dexter Laundry ..................................3

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

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

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

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

SESLaundry.com ...............................23

Gold Coin Laundry Equipment .......19

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

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

TheLaundryPass.com ........................27

HHC Electronic Service ................... 38

Tjernlund Products ...........................38

Imonex Services ..................................7

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

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DECEMBER 2016 AMERICAN COIN-OP 39

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(continued from page 37) through background check and trained to provide “white-glove service”) to pick up and deliver the customer’s laundry or dry cleaning within the desired one-hour window.

Turnaround time is 24 hours (or less) for wash and fold and 36 hours for dry cleaning, the company says; rush service promises same-day (or overnight) turnaround.

Cleanly offers an annual membership program with benefits similar to Amazon Prime, the company adds.

LAUNDRYLUX OFFERS DISASTER RECOVERY PROGRAM AFTER HURRICANE Laundrylux, which distributes Wascomat and Electrolux commercial laundry equipment in North America, is offering a disaster recovery program for Laundromats affected by Hurricane Matthew, the company reports.

Its program includes no payments for 90 days with six months of interest-only payments, plus low fixed interest rates. In addition, Laundrylux will waive all fees.

“We understand how catastrophic hurricanes can be and we want to help laundry owners get their businesses back up and running quickly,” says John Olsen, senior vice president of Coin and OPL Sales for Laundrylux. “We are working hand-in-hand with our distributors in Florida, Georgia and the Carolinas to make it as affordable as possible for laundry owners — as well as owners of hotels, nursing homes, long-term care, and other facilities — to get the laundry equipment they need immediately. We have over 5,000 machines in stock, ready to ship.”

“I live in Florida and I’ve seen the devastating effects of hurricanes and flooding,” says Allen Berndt, Laundrylux regional business development manager. “I’ve witnessed first-hand how painful it is for my customers and friends to have their businesses destroyed. We understand you need your business restored as fast as possible — and we hope this recovery program will help do just that.”

Hurricane Matthew was blamed for at least 27 deaths as it churned along the Florida, Georgia, South Carolina and North Carolina coastlines in early October.

Laundrylux offered similar disaster recovery programs following Midwest flooding in 2015, Colorado flooding in 2013 and Superstorm Sandy in 2012.

WASHCLUB, TWEEDS PARTNER IN PHILADELPHIA WashClub, an on-demand laundry, drycleaning and tailoring service, has entered into an exclusive partnership with drycleaning pickup and delivery service Tweeds Dry Cleaning in Philadelphia, says WashClub.

The two companies say they are committed to providing the highest quality and convenience to Philadelphia residents thanks to a user-friendly mobile app and website.

“This partnership with Tweeds Dry Cleaning not only allows us to reach even more consumers and laundry-intensive businesses in 40

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the U.S., but also supports Philadelphia’s local community,” says Rick Rome, founder and president of WashClub.

“I have always admired WashClub as a leader in the laundry space, so I couldn’t be more excited about this partnership,” says Paul King, owner and operator of WashClub powered by Tweeds, and a long-time Philadelphia resident.

The joint venture provides a unique solution for Philadelphia’s busy consumers struggling with effective time management, and the city’s vibrant business community that needs fast and reliable laundry services, says WashClub.

“This partnership is also wonderful for the local Philadelphia community as it will help create jobs and boost the local economy,” King indicates. “Both WashClub and Tweeds are committed to help Philadelphia residents achieve peace of mind by providing excellent quality service to everyone in the area.”

TIDE LOADS OF HOPE AIDS VICTIMS OF HURRICANE MATTHEW Tide Loads of Hope traveled to Lumberton, N.C., in October to support the region’s relief and recovery efforts in wake of Hurricane Matthew.

The mobile laundry vehicle equipped with Whirlpool washers and dryers offered laundry services, providing free full-service laundry to residents affected by the flooding there. Residents in the directly affected areas could bring up to two loads of clothes per household to be washed, dried and folded free of charge.

Additionally, Procter & Gamble provided personal care kits containing items such as Secret deodorant, Crest toothpaste and Pantene shampoo, as well as household cleaning products like Bounty, Mr. Clean and Swiffer.

In 2005, P&G launched Tide Loads of Hope to provide muchneeded laundry services to families affected by Hurricane Katrina.

Since that time, it has washed more than 60,000 loads of laundry for more than 45,000 families impacted by disasters around the world, Tide says.

ACO

Procter & Gamble brings mobile relief to North Carolina residents affected by Hurricane Matthew with P&G product kits and Tide Loads of Hope. (Photo: Business Wire) www.americancoinop.com

11/14/16 6:38 PM

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