American Coin-Op -January 2017

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It’s Time To How to ID Opportunities and Take Advantage of Them I N S I D E :I NJ SUI LDYE : 2 0J A0 N5 U A R Y 2 0 1 7 ART PROVES TO BE GOOD DRAW FOR THESE STORES

DO YOU FIND THE ‘BROKEN WINDOW THEORY’ HAS MERIT?

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CONTENTS JANUARY 2017

COVER STORY

VOLUME 58 ISSUE 1

IT’S TIME TO RETOOL Owners who retool stores often can command a higher vend price because of the investment. Here’s how to identify opportunities and take advantage of them.

(Cover image: © iStockphoto/reportman 1985)

INSIDE 6 GOIN’ WITH COHEN: ART PROVES TO BE GOOD DRAW This month, Laurance Cohen’s travels take him to South Philadelphia and south Florida, spots where two Laundromat owners have embraced art in such a way to set themselves apart from the competition, draw in trade, and make laundry day an experience for the senses.

24 TAX PROPOSALS AND CONSEQUENCES

Any change in Washington brings the likelihood of tax law changes, and the election of Donald Trump as president is no exception, writes Mark E. Battersby. The longtime finance and tax writer summarizes the Trump campaign’s tax reform goals and what they could mean for your small business.

30 PRODUCT SHOWCASE: FRONT LOADERS

12 COLUMNS 18 THE ‘BROKEN WINDOW THEORY’ What does a philosophy championed by a well-known police commissioner have to do with Laundromats? Just as criminals are fearful of committing big crimes if police are actively preventing small crimes, so, too, might local residents frequent a laundry that acts quickly to address even the slightest store imperfection, like repairing a broken window.

DEPARTMENTS 4 VIEWPOINT 29 WEB UPDATE 38 CLASSIFIEDS

39 AD INDEX 40 NEWSMAKERS

10 A CLOSER LOOK Liberty Laundry’s handpainted mural provides the perfect selfie moment for this mother and son.

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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

IN TIME OF NEED GATLINBURG COIN-OP LENDS HAND DURING WILDFIRE RECOVERY I normally use my column to preview the issue contents but I’m diverting from the norm to talk about a news story I covered for our website, AmericanCoinOp.com.

You may have heard about the wildfires that swept through the resort area of Gatlinburg, Tenn., in late November. When I posted my story the first week of December, at least 14 people had been killed, more than 100 injured and more than 1,700 structures damaged or destroyed.

Bruce Beggs (If you want to get a sense of what it was like in the Great Smoky Mountains at the time, look up “gatlinburg fire video” or something similar on YouTube. Scary stuff.)

Super Suds Coin Laundry, an unattended Laundromat owned by Stephen (Steve) Tanner Sr., was spared. Turns out the only other laundry in town was destroyed.

Tanner was out of state when tragedy struck, but his son drove to Gatlinburg from south Alabama and confirmed that Tanner’s house and business were still standing.

“I told my son, ‘We have to do something to help these people who have lost everything,’” Tanner told me by phone, his voice cracking.

So, he mounted an effort to help any way he could. He asked fellow Coin Laundry Association members for ideas. He lowered vend prices to match costs so that customers could wash at the lowest price possible. And he created a GoFundMe campaign to gather donations.

Through the latter, and with the aid of some sponsors, Super Suds Coin Laundry hosted a “Free Laundry Weekend” during which residents could wash for free. In two days, the laundry processed 294 washer loads totaling some 8,234 pounds. While there is much to rebuild in Gatlinburg, the event served as a reminder that help is out there for those who need it.

Super Suds certainly made a difference in its community. When the opportunity presents itself, will you be ready to do the same for yours?

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 58, number 1. 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, 2017. 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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GOIN’ WITH

COHEN

Art Proves to be

Good Draw Makes laundry day an experience for the senses

A

by Laurance Cohen

to set themselves apart from the competition, draw in trade, and make laundry day an experience for the senses.

t the corner of 10th and Ellsworth in South Philadelphia is where art and laundry intersect. Walking up to Lisa Budnick’s coin-op, your eyes are drawn to a mosaic that frames the quaint storefront and adds color to the Passyunk neighborhood’s brick-and-mortar row houses.

More than a thousand miles away in southern Florida, a floor-to-ceiling hand-painted mural of Lady Liberty beckons the huddled masses of basket-toting patrons to step inside a patrioticthemed laundry.

Art in the coin-op is nothing new. Back in the ’70s when harvest gold top loaders and pastel tumblers were all the rage, retro laundry collages and framed serene landscape paintings offered weary customers a visual escape from the monotony of tumbling clothes. As white, almond and stainless steel machine panels ushered in today’s clean industrial look, brushes were taken to vanilla wall space to create ubiquitous cartoonish washers and whimsical bubbles.

Still other coin-op owners have embraced art in such a way as

HUB OF CREATIVITY For Budnick, who has been the creative force behind South Philly’s 10th Street Laundromat for a decade and a half, the coinop’s revamp into an intimate community gallery for budding artists grew out of her dislike for anything cookie-cutter.

“There was no grand plan; it just evolved,” she recalls.

“Everyone told me I needed TVs and signs, and, oh yes, mirrors to make the store appear bigger than it was. As you see, I never did anything they told me.”

What the energetic novice operator did back in 2000 was follow her instincts and carve out a niche where locals washed to a backdrop of homegrown artistic talent. Out went drab paneling and in went fresh drywall painted with vivid colors and covered by, at first, her own artwork.

Early on, she was encouraged by staff and others to turn the laundry into a hub of creativity. With inspiration and tutelage from renowned artisan Isaiah Zagar, whose works adorn numerous South Philly venues, the rookie store owner undertook a three-month labor of love to collect and painstakingly piece together a mosaic that reflects her determination to make 10th Street Laundromat a shining example of what a neighborhood coin-op should be.

When she wasn’t outside sprucing up the storefront with her mosaic and decorative window planters, Budnick was inside pulling double duty processing wash-dry-fold orders and hanging pieces of her personal art collection, drawing curious stares from passersby.

Lisa Budnick’s exterior mosaic was a labor of love and reflects her determination to make her 10th Street Laundromat stand out in South “In the beginning, the Philadelphia. (Photo: Laurance Cohen) neighbors didn’t know 6

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GOIN’ WITH

COHEN what to make of it, but the response was very positive,” she says.

Budnick was ahead of the curve, as her corner of South Philly had yet to undergo its latest gentrification into one of the hottest real estate micro-markets in the city.

At the time, Passyunk remained an artist colony and the coin-op became a focal point for exhibitions and performance art.

At the urging of a musician residing upstairs, Budnick offered up wall space to the artist community and hosted semiannual parties at the laundry-turned-gallery. Canapés were passed between rows of machines while music and wine flowed.

Perplexed patrons were encouraged to rub Exhibitions of elementary school student art pieces are alternated with works of budding professionals at 10th Street elbows with the invited guests and join the Laundromat. (Photos this page: Laurance Cohen) celebration of talent on display.

One memorable event featured a dance performance in a dark- have the exposure.” ened store illuminated only by light bulbs strategically placed inside There was a brief hiatus in showings last year due to equipment machines and around the laundry’s interior. upgrades, but are set to resume again in the near future. Typical “All the artists brought their own spin,” she comments. “The exhibitions at 10th Street Laundromat run four to eight weeks, more amateur the artist, the more open they were and thrilled to with the artists responsible for hanging their works and posting their autobiography and pricing. All proceeds go to the artist, with Budnick usually offering $50 even if no pieces are sold.

“It’s good energy. We’ve never had anything stolen or ruined and never had any artist complain,” she says.

Budnick draws new talent by putting word out to her customer base and local organizations, as well as posts on the inliquid.org website.

The civic-minded owner also donates art supplies to the local elementary school attended by children of her longtime attendant, Edith Miranda. My recent visit coincided with an exhibition of the pupils’ finished pieces.

“They couldn’t believe it,” Miranda recalls of the reaction of the fourth-graders and proud parents upon seeing the handiwork on display, adding, “Art gives a nice presentation to the laundry.”

Patron Melissa Fehlinger echoes those sentiments: “Having art here sets itself apart from a typical laundry and makes it a place you want to come back to.”

Emily Goettler, who was drawn to try the laundry after noticing the mosaic, likes the store’s vibe.

“It’s homier and less sterile and stark,” she observes. “I love it here. They really capture the uniqueness and essence of the neighborhood. You know you’re in South Philly when you see mosaics.”

Patron Melissa Fehlinger says art sets 10th Street Laundromat “apart from a typical laundry and makes it a place you want to come back to.”

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PATRIOTIC SPIRIT Art also takes center stage with the prominent display of patriotism at Liberty Laundry in Lauderdale Lakes, Fla. Proprietor and 29-year U.S. Air Force active duty servicemember Bill Pederson wouldn’t have it any other way.

“I wanted something to tie into liberty and keep in line with www.americancoinop.com

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GOIN’ WITH

COHEN the name of the laundry,” he says of his search two years ago to add a special touch to the 1,800-square-foot coin-op.

With a 31-washer, 33-dryer-pocket rehab project nearing completion, Pederson consulted with local professional fine artist and college instructor Georgeta Fondos, whose commissioned murals grace a number of South Florida’s municipal buildings.

Soon, the white walls defining the cash-and-change dispensing area near the front entry were transformed into a thing of beauty, with a floor-to-ceiling hand-painted rendering of the Statue of Liberty complemented by a majestic bald eagle soaring through the skies carrying the Stars and Stripes in its beak.

“I liked Bill, and he had a brilliant idea. He’s a great patriot,” Fondos says. “He wanted the Statue of Liberty so the many immigrants using the laundry could feel the spirit and learn the history of the United States. He had a vision, and I respect that. I believe art in general can educate and enlighten the public.”

The mural garnered attention even before the laundry opened its doors to the public.

“People would come in or watch through the windows,” the artist remembers. “They are usually not exposed to the process.

Everyone was curious and thrilled.”

Pederson says he hopes one day to add more murals to artistically display the U.S. Constitution and Bill of Rights before the

Liberty Laundry’s hand-painted mural provides the perfect selfie moment for weekly customer Aadrina Cottrell and 3-year-old son D.J. (Photo: Laurance Cohen) eyes of his mostly Caribbean-born immigrant clientele. The genial owner enjoys striking up conversations with customers and their children, testing their knowledge of the significance of the Roman numeral date inscribed on Lady Liberty’s tablet, offering incentives for the correct response.

Two years on, he’s pleased with the buzz created by the work.

“Art adds character. Each laundry should have its own personality, and a nice mural lets you stand out from the crowd and helps them remember your name.”

Aadrina Cottrell and her 3-year-old son D.J. took time out after loading up dryers for a selfie photo op in front of Lady Liberty.

“I like the decor and it’s befitting the laundry. It’s nice to see a balance,” she says. “Other laundries have signs telling you don’t do this and that.”

Glancing over from a table nearby is Angeline Joseph, who immigrated to the U.S. after the devastating 2010 Haiti earthquake.

“Someday I’d like to visit New York and see the real statue with my family,” she smiles. “For now, it’s good to look at her when I’m folding.”

ACO

Professional muralist Georgeta Fondos puts finishing touches on the American flag as she transforms a corner of Liberty Laundry in Lauderdale Lakes, Fla., into a work of art.

(Courtesy of Georgeta Fondos) 10

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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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says John Francis, sales manager for Speed Queen distributor Commercial Equipment Co. in Texas. “I have customers that drive around and look for an area that might have two or three older Laundromats that are unattended and not well-kept. They know they can go in and take advantage of that.

“It would be helpful for the existing Laundromat owner to realize that it might be better to put in larger machines and upgrade the store to keep the competition out, because it’s just a matter of time before somebody will.”

It’s Time To

(Image: © iStockphoto/reportman 1985)

How to ID Opportunities and Take Advantage of Them

by Bruce Beggs, Editorial Director

I

f you get the sense that your customer base is thinning out and your store is looking a little worse for wear, it’s probably time to consider retooling with new equipment. And with the U.S. economy in good shape, there may be no better opportunity to act than now.

“Because of the recovered economy, the low cost of money [financing], a lot of people have retooled entire stores in the past few years,” says Bryan Maxwell, who’s worked in sales and marketing for California-based Dexter distributor Western State Design for more than 25 years. “I think if you spoke with most manufacturers of laundry equipment, I think you’ll find they’ve had record sales because of that fact.”

Dennis Harker, owner of Alabama-based distributor SaveMore Commercial Laundry 12

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Equipment, is a 46-year industry veteran.

His company supplies ADC, LG and Xeros laundry equipment. Plus, he owns 17 vended laundries himself.

In addition to a strong economy, favorable tax laws regarding equipment depreciation have encouraged small-business owners to buy new equipment in recent years, Harker says.

He favors taking a forward-thinking stance toward retooling: “I don’t worry about what the competition does, I want to be the competition. I want the competition to worry about what I do. If I do that, I have to have a progressive posture. I’m looking to do what I can do in my area to make my stores the best.”

“For an older store, I think it’s important to retool to keep your competition out,”

FACTORS AND BENEFITS Retooling in terms of complete renovation most often happens with a store acquisition. It’s not uncommon for a store owner to upgrade his/her existing Laundromat, either a portion or the entire facility.

The state of existing wash/dry equipment, the local competitive landscape and changing demographics are among the factors that might encourage one to retool.

Concerning equipment, it may be either the machinery is no longer sustainable due to increasing maintenance and repair issues, or it’s somewhat outdated when compared to today’s high-efficiency models.

“With the higher-efficiency equipment, people are retooling even if the equipment is not in disrepair simply because the new equipment may use 10, 20, 70% less utilities,” Maxwell says.

Also relatively new to the game is the ability to monetize additional features like a pre-wash or extra rinse, described by Maxwell as a “value-added wash cycle.”

Installing new washers and dryers offers a natural opening for store owners to increase vend prices to help pay for their investment.

Some benefits of retooling—utility savings thanks to greater equipment efficiency and the opportunity to charge higher vend prices—have already been mentioned, but there are still more. A more modern look attracts more customers, a store can provide additional wash capacity through larger machines, and new equipment controls offer greater store management tools.

All of them work together to streamline the laundry process and enable customers to get in and out of a Laundromat more quickly.

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their time, at least in California, that is as important as any other quality,” Maxwell says.

“We’re building stores that are much larger and offer way more features than your grandfather’s Laundromat,” says Francis. “We have stores that have Wi-Fi, hair salons, restaurants. If you’re a small, dingy store in a good area and you haven’t been taking care of your customers, I would say, ‘Look out, because somebody’s coming to get you.’”

OPPORTUNITIES TO UPGRADE So, where are the opportunities for upgrading?

“I’d look at the weakest area in my store,” says Harker. “I’d look at what’s costing me the most, the least efficient equipment I have in the store. I would focus on that area first. Generally, that’s people using top-loading machines vs. front loaders.

“Weakness number two is (not) having large enough machines in your store.

I can’t overemphasize that having a 60-, 80-pound washer in the store where you have no big equipment will generate untold dollars.

“It may not necessarily mean that you have a lot of bad equipment. It might mean that you don’t have some of the right equipment.”

Gentrification of neighborhoods — an influx of middle-class or affluent people into deteriorating areas — often produces opportunities based on service offerings

n Arrow Aims to Retool, Reenergize, Reinvest

By Haley Jorgensen Jason Arrow purchased and fully renovated his first dilapidated vended laundry in 2013. Today, he owns five retooled Los Angeles stores, three of which are located on Pico Boulevard. The Laundry Lounge, Western Laundry and Launderland tout high-efficiency Continental Girbau washers and dryers boasting five to seven turns per day. Low utility costs, strong customer turnover and an ESD card system contribute to solid profitability and ease of management.

“I’m always looking for new opportunities,” says Arrow, who works full-time as a firefighter.

“Not a lot of people like to take over problem stores that are falling apart. I’ll take those any day of the week.”

Arrow acquired his first store with a $250,000 investment.

He fixed it up and immediately flipped it in order to purchase and retool larger stores requiring a greater capital outlay.

“He began with a 1,500square-foot laundry and graduated to bigger stores,” says David Dang, Elite Business Investments, Valley Village, Calif. “We educated him on the business and he caught on quickly.”

In all of Arrow’s laundry acquisitions, Dang qualified store viability and negotiated leases prior to the sale. He also recommended laundry equipment, card systems and cosmetic upgrades, while overseeing

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much of the installation and construction.

“David held my hand through the process and was involved in everything related to vended laundry renovation and operation,” says Arrow.

Additionally, through the guidance of Elite, distributor Continental Girbau West, Santa Fe Springs, Calif., provided the high-efficiency Continental laundry equipment. CG West provides ongoing technical service and training to Arrow, as needed.

All of Arrow’s Continental laundries are fully attended, deliver full-service wash-dry-fold and attract customers with free Wi-Fi, vending machines, friendly staff and several HD TVs. Customers, who appreciate a daily free dry, use loyalty cards to operate equipment.

Competition, population density, lease details and parking are critical considerations for vended laundry investors, according to Arrow. His three vended laundries are located seven miles apart, yet serve extremely different clientele.

Launderland is located in an area where a family’s average income is $25,000. At the end of the street, Laundry Lounge sits where a family’s average income is $1 million.

Each laundry touts an equipment mix to suit its size and clientele, including 25- to 75-pound-capacity washers, 30- to 45-pound-capacity stack

dryers, and 75-pound-capacity single-pocket dryers.

When it comes to retooling a laundry, Arrow first evaluates the condition and efficiency of its equipment.

“It’s not worth it in California to keep inefficient equipment,” he says. “Our water costs are too high and restrictions keep tightening. You’ll pay more in water costs than you will in new, high-efficiency equipment.”

The Continental washers offer a sump-less design, saving up to 3 gallons of water per fill. A brand-exclusive AquaFall system further lowers water usage and improves wash quality. Finally, an AquaMixer system, a hot- and cold-water mixer, reaches precise bath temperatures for optimum temperature management and lower hot-water usage.

The washers also feature the new ProfitPlus® Control, which works seamlessly with card technology

and offers more owner programmability and washing options to Arrow’s customers. Customers choose from three standard cycle options, plus can select others for greater washing customization.

Meanwhile, each cycle is individually modifiable by Arrow.

Continental’s serial communication and the ESD card system allow Arrow to manage his laundries from a smartphone or computer, via the Internet. He can reissue loyalty cards, run specials, change vend prices, program machines and refund customers remotely.

“Flexibility in my business model is important,” he says. “I can process credits and refunds and keep people happy. That’s one of the biggest perks.” ACO Haley Jorgensen is a public relations writer for commercial laundry equipment manufacturer Continental Girbau, Oshkosh, Wis.

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instead of equipment, Maxwell says. The nature of the opportunity should help guide one’s retooling decisions.

“You only need to invest in equipment to generate income for your community. … If you’re going into a community with large families and there’s a need for large equipment, you’re going to slant toward large equipment,” he says. “If you’re going to a college community, a millennial community ... the need for large equipment is minimal.”

Before embarking on any sort of retooling project, the distributors say, take your time to perform due diligence, then enlist the aid of a distributor or other experienced, trustworthy industry authority to help guide you through.

Every retooling project will be unique, and opinions vary on closing a store fully to retool vs. closing off a section at a time.

Whatever form your project takes, keep your customers informed about what’s going on, the distributors say.

“When the equipment is ordered, and the owner knows they’re going to do this, then they need to start putting up signs in their Laundromat” explaining what’s going to happen, Francis says. “They also need to let their attendants know so they can start letting customers know.”

Maxwell recommends running the store for a period of time following a retool to work out any kinks, then schedule a grand opening to “welcome back” customers and promote your upgrades.

ACO

n Corporate Guy, Neighborhood Wash Boyd Woodward is a successful engineering manager but always wanted to be an entrepreneur. So, he actively began researching businesses that would allow him to work at his “day job” while pursuing his dream. He learned everything he could about the laundry business, and a good deal of that research came directly from store owners.

“Based on my initial findings, I was already leaning towards Electrolux professional equipment,” says Woodward in a case study supplied to American Coin-Op by distributor Laundrylux. “Yet after hearing praise after praise from so many laundry professionals, well, it just confirmed that Electrolux was the only choice for me.”

He also followed another piece of advice by contacting Electrolux distributor and Laundromat expert Sterling Phillips.

The first order of business was scouting for the perfect location.

Woodward wanted his store to be close to his home and eventually purchased a Laundromat in Hawthorne, Calif., 35 miles away. It created some operational challenges and inconveniences, but it was an opportunity that Woodward believed would pay off.

The laundry shared a suite with a busy 7-Eleven convenience store and had no other commercial neighbors. It was surrounded by apartment buildings and had optimal visibility

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from the street, allowing for an abundance of walk-in and drive-in business. Plus, there was ample parking.

Woodward named his store Neighborhood Wash due to its prime location in the middle of a high-density neighborhood.

Then, the task at hand became transforming it into an efficiently run, thoroughly modern Laundromat.

“The 1,400-square-foot laundry underwent a complete overhaul,” says Woodward. “To limit losing sales and customers, we kept the store open as long as possible during the reconstruction.”

The retooled store has a fun, friendly vibe with lots of family appeal. Neighborhood Wash is bright, open and has large mirrors giving patrons a superior view of their surroundings.

“Safety is key,” Woodward says. “In addition to creating a much more open floor plan, I installed eight security cameras.”

He also increased the folding space throughout the store and, for added security, made certain all of the folding tables faced the front of the store. “This way my patrons can monitor who is coming in and out,” he says.

Neighborhood Wash also boasts free amenities such as Wi-Fi and flat-screen televisions.

Based on his findings, Woodward implemented the SpyderWash credit card system on all his machines.

“Research has shown that the

younger generations are more comfortable and even prefer using credit/debit cards for small purchases,” he explains.

“My target is for 30% of my business to be in credit card transactions, with a majority of the usage on the larger machines.”

The old equipment mix was about 75% top loaders, which have since been replaced with H Series Electrolux washers and Electrolux dryers.

The high-speed Electrolux washers and dryers are part of the ENERGY STAR® program.

As well as being environmentally friendly, laundry owners typically save up to 70% on their utilities, according to Laundrylux.

“Since customers like largecapacity washers, my 75-pound and 65-pound Electrolux machines are right in the front of

the store while the smaller 18-, 25- and 45-pound machines are in the back,” Woodward says.

Throughout the remodeling process, Phillips provided Woodward with expertise in lease negotiations, equipment mix and layout, and more. He also advised Woodward on pricing strategies and operational procedures that have proven successful with other clients as well as Phillips’ own laundries.

In a marketplace crowded with aged laundries, Woodward is confident that Neighborhood Wash will make its mark. Even the newer laundries can’t compete with it, he believes.

“They don’t offer the conveniences, such as multiple payment options and the timesaving, high-speed Electrolux equipment that my store offers,” Woodward says.

ACO

Large mirrors at Neighborh ood Wash, Hawthorne, Cali f., offer an expanded view of the surroundings. (Pho to: Laundrylux)

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AN OUTSIDER’S VIEW

THE ‘BROKEN WINDOW THEORY’

Howard Scott

18

Sometimes, you must borrow from other fields to learn something new.

The “Broken Window Theory” of criminology was championed by William Bratton while he was police commissioner of New York City. Bratton, if you didn’t know, is a celebrated urban criminologist who was, at different times, commissioner of the police forces of Boston, Los Angeles and New York City.

The theory goes like this: If the police make an issue of trying to prevent small crimes such as breaking windows, vandalism, public drinking, and toll jumping, then that effort will reduce the number of more serious crimes. This “broken window” policy helps create an atmosphere of order and lawfulness, which has an effect on criminal minds.

So what does this “Broken Window Theory” have to do with Laundromats?

Appearance matters. A broken window, a front that has peeling paint, a ceiling marred by stains, a door that doesn’t open or close easily, a dirty bathroom, a floor tile that’s chipped, all look unsightly and stick out like a sore thumb to give your establishment a bad name. The effect is to lower the value of the offering.

It is perhaps hard for you to see it, because you’ve been looking at the same surfaces for a long time, so you have trouble noticing the imperfections.

I once visited a Laundromat that had a rear door with a cracked window. I pointed it out to the operator and he shrugged, saying, “It is something I’m going to get to, but there are a dozen more important things on my list.

Honestly, though, what’s the big deal? The door works, there’s no leaking, and it’s the back door.”

Obviously, the operator was in no hurry to replace the window. But the fact is, anyone who parked in the rear and entered through the back door saw it. The state of the window registered in the customer’s subconscious mind. In addition, people sitting around while waiting for their clothes to be cleaned noticed the cracked window, too. In the hour and a half I stayed there, four people went out the back door to smoke or stretch. So, a lot of customers saw the cracked window.

Like the police trying to prevent offenders from breaking windows or jumping tolls, so this broken win-

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dow creates an atmosphere of neglect.

Running through the customer’s head might be something like this: “This Laundromat doesn’t have enough pride to keep its premises in tip-top shape, so why do I have to take care to be a worthy patron? I can just let my cigarette ashes fall on the floor. I can rough-handle the machines. I can dirty the bathroom. I can let my kids go wild. Heck, if I wanted to, I could write graffiti on the wall. If they don’t think enough of keeping their appearance up, why should I?” It gets worse. When you decide to raise prices, customers will feel that you’re trying to rip them off.

Their thinking may run something like this: “They haven’t kept the place up, so obviously they’re not committed to doing the best job they can. The increase in prices will not go to fixing things—it will go in their pockets. They’re trying to squeeze out everything that they can.”

Appearance matters. A broken window, a front that has peeling paint, a ceiling marred by stains ... all look unsightly and ... give your establishment a bad name.

At this point, they might switch to another Laundromat, or seek out a friend whose washer or dryer they can use. They might reduce the loads by wearing clothes longer. They certainly will not be recommending your Laundromat anytime soon.

Likewise, when there’s a problem, they will be less forgiving. The mental process goes something like this: “I lost $2 in that washer and I know I won’t get it back.

They just don’t take enough pride. I’m going to go to a different Laundromat next time.”

It is the same principle as in the criminal mind. The criminal sees that small crimes are ignored, so he is more disposed to commit the crimes he has been doing (continued on page 22) www.americancoinop.com

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AN OUTSIDER’S VIEW

(continued from page 18) for a while. If those committing “broken window” crimes are punished, then criminals would think more seriously about robbing a convenience store, attempting to pickpocket, or committing fraud. Under the “Broken Window Theory,” there is a stronger aura of lawfulness.

Aura—I like that word. You create the aura of your store. Even if the premises aren’t new, if you attend to all issues, if you keep it as clean as can be, if you don’t allow unsightly imperfections to continue, then you are maintaining a good aura.

If there is graffiti on the outside that you haven’t scrubbed off, if there are cracked tiles on the floor, if the front awnings are torn and shredded, then that’s bad.

It is up to you. But maybe you’re not up

to the task. Have someone you trust walk around your shop to point out things that need to be cleaned up or replaced.

If the person says that you need a complete remodeling, then that person is not the person you want. The individual looks for areas that stick out as shoddy, unattractive, offensive and unseemly. Perhaps he or she might point to three or four areas that need attention.

Sometimes you don’t have to replace a thing; a painting-over or taping-up will do.

Sometimes you can scrub out the dirt and grime. Sometimes you can cover over the unsightly area. But pay attention to what the evaluator says.

Sometimes you might have to spend money. For example, if your overhead pipes are visible and ugly, you might consider putting in a drop ceiling. If a front

windowsill is rotting, you might consider replacing the board. The object of this effort is not to get you to spend money, but to clean up your act.

If nothing else, this column should get you to replace cracked windows. The presence of cracked windows looks like you don’t care, and such downgrading will infiltrate every business decision you make. It’s the aura that’s important. Likewise, Laundromat customers value their Laundromat according to the care and commitment that the owner puts into his/ her establishment.

Take care of your store’s unsightly blemishes today.

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

n Freshen Things Up With a little creative thought, vended laundry owners and operators can utilize a variety of inexpensive ways to improve their stores and attract new customers.

To prepare, try walking around your store as if you’re seeing it for the first time. Why? Because you might take your store’s appearance for granted if you’re in and out regularly.

But your customers—and prospective customers—surely don’t.

They’re drawn by convenience and service, yes, but also by appearance.

Examine these key areas with a critical eye: n EXTERIOR Is your signage large enough?

Does it stand out from other nearby signs? Is it vibrantly colored and well-lit?

Having signage that is unique is important when your store is located in a strip center, espe22

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cially if any of the surrounding businesses are vacant. Can the public see that you run a “Coin Laundry” or a “Laundromat”?

Those terms must stand out.

If you have a freestanding store, you can maximize the use of signage in your windows.

You may be tempted to use tempera paint and a do-it-yourself approach, but invest in having the signage done professionally.

Is the area around your store landscaped? Is it at least well-maintained? Virtually any exterior can benefit from a fresh coat of paint every so often.

What is your store’s parking availability? Do you have ample spots? Is the lot brightly lit? Are there cracks or potholes in the parking lot surface? How accessible is your store to the average person? Does it have a ramp for the disabled?

Are your windows clean and free of chips and cracks?

If your store doesn’t look great on the outside, why would someone want to come inside and do their laundry there? n INTERIOR Often, an owner can improve their store’s image simply by wiping down their machines and keeping the floor clean, so give your store a good cleaning.

When was the last time you painted inside? Painting is one of the easiest and least expensive ways for a business to update its décor.

Neutral colors will expand your decorating options over time, but taking the plunge and bathing your walls in bright hues like fire engine red or kelly green will bring excitement.

Whatever color you choose, make certain the kind of paint used will be easy to clean.

Select a paint that’s washable and doesn’t show dirt easily.

A well-lit store showcases

the equipment and improves security. If your store is dim, it might be time to invest in new lighting. Good lighting with new ceiling tiles can make a huge difference.

People don’t want to drop their clothes on a dirty floor, so keep it clean. Virtually any type of flooring can work in a laundry as long as it’s maintained.

Cement floors are easy to put in, and sealing it will make it easier to clean.

Vinyl tile is a bit more expensive but can last for years if cared for. Ceramic tile wears well and doesn’t require the same level of upkeep but it will cost you more up front.

From top to bottom, there are opportunities for you to create a gathering place that’s functional and comfortable.

And you don’t have to break the bank to do it.

ACO

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Tax Proposals

and

Consequences

by Mark E. Battersby

Trump campaign highlighted several goals of tax reform

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THE PROPOSALS President-elect Trump’s campaign promise to work with Congress to introduce broader legislative measures within the first 100 days of his administration included the following:

Middle Class Tax Relief and Simplification Act An economic plan designed to grow the economy 4% per year and create at least 25 million new jobs through massive tax reduction and simplification, in combination with trade reform, regulatory relief, and lifting the restrictions on American energy.

The largest tax reductions would be for the middle class. A middle-class family with two children would get a 35% tax cut under the proposal. The current number of brackets would be reduced from seven to three, and tax forms will likewise be greatly simplified. The business rate would be

▲

ny change in Washington brings the possibility, indeed the likelihood, of tax law changes. The election of Donald Trump as the 45th president of the United States is no exception. In his campaign, the president-elect highlighted several goals of tax reform that included reducing the official corporate tax rate to 15% from its present 35%.

In addition, the president-elect would like to see the top individual tax rate at 33%, down from 39.6%. And, it is not just Trump who would like to see the Affordable Care Act (also known as Obamacare) repealed. As an essential part of any Congressional repeal efforts, the 3.8% Medicare tax on investment income would also be repealed.

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lowered from 35% to 15%, and the trillions of dollars of American corporate money overseas could be brought back at a 10% rate.

End The Offshoring Act Establishes tariffs to discourage companies from laying off their workers in order to relocate in other countries and ship their products back to the U.S. tax-free.

American Energy & Infrastructure Act This would leverage public-private partnerships, and private investments using tax incentives, to spur $1 trillion in infrastructure investment over 10 years. It is revenue-neutral.

But, what would this mean for a selfservice laundry business or its operator?

PERSONAL BUSINESS Of interest to the owners of many small coin-operated laundry businesses — and their heirs — the estate tax would be repealed if the president-elect’s proposals bear fruit. However, capital gains on property held until death and valued over $10 million would be subject to tax — with an exemption for small businesses and family farms. To prevent abuse, contributions of appreciated assets into a private charity established by the decedent or the decedent’s relatives would be disallowed.

CORPORATE TAX RATE REDUCTION Both president-elect Trump and House Republicans would like to see the corporate tax rate cut from its current top rate of 35% (the highest worldwide) to 15% and 20%, respectively. The Trump plan “would be a bold step that leapfrogs the United States all the way to having one of the lowest rates in the developed world,” according to the campaign’s website.

Trump specifically proposed a reduction in the top corporate tax rate to 15% while extending the same 15% top rate to the income of pass-through entities and sole proprietorships. The current top corporate tax rate is 35%, and the current top rate on business income from pass-through entities and sole proprietorships is the top ordinary, personal income tax rate of 39.6%.

The plan from House Republicans, on the other hand, is more moderate.

The House GOP plan also includes “base broadeners” to counter the revenue lost from the rate drop. Trump’s plan doesn’t have those. As a result, under Trump’s pro26

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posal, the corporate income tax raises less revenue than the House GOP’s plan does.

Trump has proposed that some sort of tax, like the tax on corporate dividends, would be applied to distributions of business income from these other entities. The Trump campaign has stated that it hopes to include provisions that would prevent the conversion of ordinary income into business income, although there are no details at this point.

With congressional concerns about deficit projections from the Trump proposals,

these proposed rates may have to come up somewhat. Congress may also be concerned about extending the corporate tax rate to other business income due in part to the deficit.

PASS-THROUGH BUSINESSES Most incorporated businesses, so-called “C” corporations, are taxed twice — once at the entity level and again when shareholders pay taxes on dividends and capital gains. In other words, pass-through businesses such as LLCs, partnerships and

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.

S corporations don’t pay taxes at the entity level since their profits are passed to the owners and taxed at the individual income tax rate.

That’s long been a stumbling block for would-be tax reformers. There’s general agreement that the marginal tax rate on C corporations is too high, but if that’s cut, pass-throughs wouldn’t get a reduction and may even face a tax increase. Some proposals consider cutting the ordinary income tax rate but, according to many experts, that could be expensive.

One alternative is to give pass-throughs a reduced rate compared to wage income, which has been proposed by Trump (a 15% rate cap) and the House GOP (a 25% rate cap). Both plans have a top ordinary rate of 33%, according to published reports.

However, creating a special rate for passthroughs can encourage gaming, according to the Tax Foundation, the Washingtonbased think tank, because business owners would have an incentive to recategorize their wage income as business income.

The president-elect’s campaign materials

seemed to include rules that would prevent pass-through owners from converting their compensation income taxed at higher rates into profits taxed at the proposed 15% rate.

The most likely scenario appears to tax pass-through entities at 15% but again on distributions. That’s good news for coinoperated laundry businesses that retain a substantial share of their income. It would also increase the tax differential between corporate investment and pass-through investment.

CORPORATE TAX EXPENDITURES ELIMINATED Most corporate tax expenditures, except for the research and development (R&D) tax credit, could be eliminated in exchange for a lower corporate tax rate. That’s right: in order to pay for lower business tax rates, Trump proposes the elimination of certain unspecified “corporate tax expenditures.”

Congressional Republicans have run into trouble with lobbyists whenever they get too specific about what tax breaks they would eliminate in return for lower corporate rates. In all likelihood, this will continue to be a difficult hurdle to overcome, especially without specifics.

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Of interest to many small businesses, Trump has proposed a doubling of the Code Sec. 179 small business expensing election from $500,000 to $1 million. That would mean that up to $1 million for new equipment and other business property could be written-off as an “expense” in the first year. Presumably, the ceiling for all capital expenditures after which the firstyear expensing is lowered dollar-for-dollar would also be raised.

AS CONGRESS PROPOSES

▲

As the new Congress is seated, it’s more than likely that Trump’s proposals will be incorporated into a host of other changes.

Where this will end up is hard to predict since on the Congressional drawing board are a number of tax proposals that might emerge in the lame-duck session. More likely, when Congress undertakes the 2018 budget this spring, the process will include: • Creating a new business rate for small businesses that are organized as sole proprietorships or pass-through entities instead of taxing them at individual rates;

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• Reducing the corporate tax rate to 20%; • Providing for immediate expensing of the cost of business investments; • Allowing interest expense to be deducted only against interest income, with any net interest expense carried forward and allowed as a deduction against net interest income in future years (with special rules that will apply for financial services companies); • Allowing net operating losses (NOLs) to be carried forward indefinitely and increased by an interest factor, and eliminating NOL carry-backs; • Generally eliminating certain (but unspecified) special interest deductions and credits; • Shifting to a territorial tax system; and • Moving “toward a consumption-based tax approach.”

PAYING FOR THE CUTS Any tax cuts, real or proposed, must be paid for in some way. Some estimates put the 10-year deficit increase at $9 trillion for the proposals of President-elect Trump.

Obviously, there is some sleight of hand

In the long run, the overall tax bills of most taxpayers — included many coin-operated laundries — are almost sure to be lower ... that can be used to ignore at least part of the problem currently, but it’ll show up quickly.

Obviously, the economy will have to grow faster than it has in some time to solve the problem. If not, tax rates could creep higher after the initial cuts. That also has happened in the past. It might be avoided with significant spending cuts, but that approach has proved elusive in the past.

In the long run, the overall tax bills of most taxpayers — including many coinoperated laundries — are almost sure to be lower, while deductions for individuals are almost certain to be scarcer. There could

be cutbacks in certain tax credits and other deductions for particular industries. In other words, some taxpayers may benefit less than others, making it more important than ever to keep an eye on lawmakers.

ACO Information in this article is provided for educational and reference purposes only. It is not intended to provide specific advice or individual recommendations. Consult an attorney or tax adviser for advice regarding your particular situation.

Mark E. Battersby is a freelance writer specializing in finance and tax topics. He is based in Ardmore, Pa.

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*The XPRESS-APP program offered by Eastern Funding LLC requires a completed and signed credit application and valid state-issued photo identification prior to any credit decisions being rendered. Financing is available to qualified applicants only, and all transactions are subject to the Eastern Funding LLC credit policies, rules and regulations, as well as any and all applicable federal, state and local laws. In the event that an applicant does not qualify under the standard terms of the XPRESS-APP program, Eastern Funding LLC reserves the right to request and receive additional information necessary to complete the application process.

JANUARY 2017

AMERICAN COIN-OP 29

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PRODUCT SHOWCASE

FRONT LOADERS MAYTAG COMMERCIAL LAUNDRY

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or vended laundry owners who demand reliable performance and dependability, Maytag® Commercial Laundry says its High-Efficiency Front-Load Washer is the optimal choice.

Equipped with Advanced Spin Technology, the machine offers the strength to deliver excellent wash performance, Maytag says. And, when combined with the unit’s six-point suspension, accelerometer, progressive spin logic and pump routine, it delivers consistent cycle times and exceptional unbalanced performance for a variety of load types, the company adds.

The advanced design of the DuraCore Drive System helps increase machine longevity and can power through tough loads. To keep moisture away from the shaft and protect its premium bearings, a watertight, flexible, triple-lip seal with garter spring is included.

And, there’s no need to worry about deterioration, Maytag says, because the durable shaft sleeve is designed to help eliminate shaft abrasion. These improvements, along with a die-cast trunnion, result in many turns over the life of the washer.

Offering Intelligent Controls with M-Series Technology, the washer also delivers powerful profits for owners and wash-cycle flexibility for end-users, says Maytag. The enhanced controls allow customized setup, meaning each cycle and option can be priced individually, while customers have the ability to select a preferred cycle option based on individual needs.

The machine is backed by a five-year limited warranty, inclusive of all parts. www.maytagcommerciallaundry.com 800-662-3587

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DEXTER LAUNDRY

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exter Laundry has been helping people and customers around the world process laundry faster and more efficiently for well over a century, the company says, by building high-quality, commercial-grade washers and dryers in the heart of America.

The success of Dexter’s employee owners depends on the success of store owners who invest in the company’s equipment, therefore the company provides every service to make laundry owners successful and users satisfied.

At 90 pounds in capacity and supplying 200-G-force extraction, Dexter’s T-1450 Express Washer gives users the ability to wash large loads quickly. Dexter Express Washers remove more water, cutting utility costs and reducing dry times, the company says. In fact, the Dexter Express line has a one-hour dry-todry time to get customers in and out quickly, increasing turnover and creating satisfied customers.

Every washer also comes with free access to DexterLive.com.

Store owners can utilize the online programming function to customize cycles, create promotional pricing, and set up PLUS cycle options such as temperature-based pricing. This allows operators to maximize revenue and balance customer load, Dexter says.

Whether a new owner looking for a good investment or a seasoned owner looking to expand business, Dexter Laundry says it is prepared to help them achieve their dreams. The manufacturer says it offers warranties, lifetime technical support, and competitive financing options. www.dexter.com 800-524-2954

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PRODUCT SHOWCASE

WHIRLPOOL COMMERCIAL LAUNDRY

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hirlpool® Commercial Laundry says its High-Efficiency Washer delivers exceptional value for vended laundry owners. The ENERGY STAR®-qualified and CEE Tier II-rated washer is equipped with a variable-speed motor to deliver excellent wash performance, while the highspeed spin helps remove more water in the washer, thus reducing drying time, Whirlpool says.

Standard are user-friendly microprocessor controls that display cost, cycle option and time remaining. The large-capacity meter case is compatible with a range of payment options, including card, coin slide and coin drop, the company says.

The quality-built cabinet with porcelain finish helps to reduce chipping and scratching, according to Whirlpool.

In addition, it features a removable front service panel and

180-degree door opening with heavyduty die-cast hinges.

The washer is easy to install, and the inlet hoses with brass couplings provide the strength needed to sustain the industry’s stringent demands, the company says.

The unit is also ADA-compliant with the optional pedestal, and is covered by a three-year limited parts warranty. www.whirlpoolcommercial laundry.com 800-662-3587

MILNOR

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ilnor says its MCR-Series is ideal for any vended laundry. The front-loading machine series features four models—MCR12E5 (20-25 lb./911 kg.), MCR16E5 (35 lb./16kg.), MCR18E4 (45 lb./20 kg.), and MCR27E5 (60 lb./27 kg.)— designed to deliver high profits and simple operation.

Each model comes equipped with simple, easyto-follow controls that count down when coins are deposited, display minutes left in the total cycle and identify certain error codes, Milnor says.

The MCR-Series also delivers two sets of seven wash formulas with programmable vended prices, set by the store owner. The first set features standard formulas ranging from “Quick Wash” to “Heavy Soil” options, whereas the second set uses GreenTurn™ programming decisions, featuring fewer rinses, less hot water use, and faster processing times, the company says.

The MCR-Series is also designed to wash without tangling or knotting through the reversing washing action. The proven single-motor inverter drive delivers a wash speed (reversing), load distribution speed, and final extraction, Milnor says. The overflow pipe at the rear of the machine sends excess water and suds to the drain, preventing suds overflow and promoting dry floors. www.milnor.com 504-712-7656 32

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ELECTROLUX PROFESSIONAL

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lectrolux Professional offers a full range of solid- and soft-mount washers designed with the latest technology and unique money-, water- and energy-saving features, says distributor Laundrylux. The washers are precision-engineered to increase store profits and generate customer loyalty.

They come standard with these features: • AS (Automatic Savings), which saves as much as 50% on water usage; • Compass Pro, offering customizable wash programs, including water levels, temperatures and drum action. The control displays two languages simultaneously; • Real-time clock for time-of-day/“happy hour” pricing; • Sanitizing Rinse for generating additional store revenue; and • Voice Guidance and Text Messaging Systems, generating customer loyalty and providing unique marketing opportunities.

Electrolux Professional washers are available in capacities ranging from 18 to 135 pounds. Its soft-mount washers spin out at 450 G-force extraction, which results in savings in time and gas in the dryer.

Electrolux store owners report utilities at 9-11% and lower construction costs, Laundrylux says. www.laundrylux.com 800-381-7222 www.americancoinop.com

12/12/16 4:02 PM

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Our Parts Department has thousands of products on over an acre lot.

If we don’t have what you want, ask us, and we’ll find it for you.

FACILITY DESIGN From initial site inspections and recommendations to equipment purchase and installation, we are here to help with every aspect of your project.

WASCO 185’s 220/1 & 220/3 WASCO 184’s 220/1 & 220/3 WASCO 125’s 220/1 & 220/3 WASCO 124’s 220/1 & 220/3 WASCO 74’s 110 v & 220/3 WASCO 75’s 110 v & 220/3 WASCO 620’s 110V

$3,500 $2,700 $2,400 $1,850 $ 975 $1,200 $1,600

**6 MONTH PARTS WARRANTY** INCLUDES FREE COIN BOX & EPHOTOS OF MACHINE WILL BE SENT PRIOR TO SHIPMENT

We can help you with specifications, dimensions, illustrations of commercial and on-premise laundry equipment.

FINANCING We are able to offer competitive rates and low, affordable monthly payments for financing coin laundry and laundromat facilities.

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

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

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

VISIT OUR WEBSITE TO SEE MONTHLY SPECIALS

PRODUCT SHOWCASE

WASCOMAT

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does it all, the company says: program selection, diagnostics, and custom programming. Store owners will appreciate the real-time clock for time-of-day pricing and promotions.

Whether an owner needs a wash program for sleeping bags, horse blankets or rugs, Compass Pro makes it simple to create one to meet specific market needs.

It also displays two languages at one time. www.laundrylux.com 800-645-2204

ascomat says it has a long heritage of reliability, value and solid performance, with 40-year-old Wascomats still working in laundries today.

The company believes its Gen 7 line of front loaders, distributed by Laundrylux, maintains its reputation as the “workhorse” of the industry while delivering new features designed to save money and increase profits.

Wascomat washers range in size from 20 pounds to 135 pounds in capacity.

All come standard with the Compass Pro microprocessor. Simple to use, one knob

ADC

T

he ADC EcoWash 60-pound Rigid-Mount Washer with 200-G-force extraction is engineered with real-world innovation, the company says. Designed with vended owners in mind, the programmable microprocessor is easy to use while customizable cycle-based pricing creates revenueboosting opportunities.

Engineer-driven, the hard-working washer delivers consistent performance and provides owners with versatile solutions to meet the stringent needs of the vended laundry market, ADC says.

The EcoWash’s imbalance detection system and channel-iron A-frame design provides optimal stability, the company says, while the robust stainless-steel cabinet resists corrosion and adds to machine longevity.

Equipment maintenance is simplified. With access points on the console, front panel and toe panel, servicing the machine is convenient, according to ADC. The ergonomic door handle and quick disconnect for immediate power shutoff option enhance the machine’s safety features, and offer store owners peace of mind.

The ADC EcoWash Washer is backed by a fiveyear limited-parts warranty. www.adclaundry.com 508-678-9000 34

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SPEED QUEEN

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oday’s Laundromat customers expect a premium retail experience that offers a clean and comfortable environment, the latest amenities and state-of-theart equipment. Replacing outdated equipment with the revolutionary Speed Queen® front-load washer with Quantum® controls will provide a laundry experience that helps meet those expectations, the company says.

Speed Queen says its latest equipment is highly efficient and designed to drive both customer satisfaction and store profitability. The front-load washer’s cuttingedge balancing technology automatically redistributes unbalanced loads for an uninterrupted cycle, minimizing vibration and creating a quieter environment. The 440-G-force extraction speed and larger washtub provide superior washability for cleaner clothes and faster drying times for customers, Speed Queen says, plus the rugged suspension system and stainless steel washtub ensure reliable, long-lasting and worry-free performance.

With Quantum controls, store owners can program, monitor and audit machines from any Internet-connected device, anytime and anywhere, says Speed Queen. The technology helps owners adjust cost structure, reduce utility costs and increase revenue through cycle modifiers, as well as time-of-day and multi-level pricing, to deliver profitability. www.speedqueencommercial.com 800-590-8872 www.americancoinop.com

12/12/16 4:02 PM

It’s not just print anymore.

Improving the Industry

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

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American Coin-Op can now be viewed on tablets and other mobile devices – great ways to stay on top of the latest industry news and updates. www.americancoinop.com

The independent voice of the self-service laundry industry

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12/7/16 11:29 AM

PRODUCT SHOWCASE

CONTINENTAL GIRBAU

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ontinental Girbau Inc.’s 70-pound G-Flex Washer is engineered to significantly increase vended laundry revenue, according to Joel Jorgensen, vice president of sales and customer services.

This is because the G-Flex 70 garners a higher vend price than smaller-capacity machines, delivers flexible-speed extract up to 200 G-force, offers a compact design for tight spaces and equipment replacement, and is available at a highly competitive price point through Continental distributors, Jorgensen explains.

The G-Flex hard-mount washer line – featuring models with capacities of 40, 55 and 70 pounds – also features the ProfitPlus® Control, serial communication, superior efficiency, and programmable extract speeds up to 200 G-force. G-Flex’s flexible G-force is critical when installation variables are not ideal and concrete foundations are sub-standard, according to Jorgensen.

“A vended laundry with 30 washers will potentially boost store revenue by $19,000 per year just by replacing four 55-pound-capacity washers with four G-Flex 70-poundcapacity washers,” he says. “By working the G-Flex 70 into your equipment mix, you can keep the same number of machines, but significantly increase capacity and resulting sales.”

The G-Flex 70 offers 21% greater capacity than the 55-pound model and fits through a standard 34.5-inch door opening.

“It matches up perfectly with Continental’s ExpressDry® 75-pound-capacity drying tumbler,” says Jorgensen.

Continental laundry products are backed by ContinentalCare warranties. www.cgilaundry.com 800-256-1073

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12/12/16 4:02 PM

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Come together with over 400 exhibitors and 10,000+ people to view live demonstrations of the latest equipment and technology.

Network with manufacturers, suppliers and industry peers. Learn from over 30 hours of educational seminars. It’s all here.

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www.AmericanCoinOp.com 38 AMERICAN COIN-OP JANUARY 2017

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SERVICES AND SUPPLIES

SERVICES AND SUPPLIES

SERVICES AND SUPPLIES

WASHERS and DRYERS COMPUTER BOARD REPAIR Dexter VFD Inverter (Delta Motor Control) All Models (9375-xxx-xxx). . . . . . . $245.00 VFD-A & VFD-B (9732-237-001) . . . . . . . . call Stack Dryer (9875-xxx-xxx) . . . . . . . . . $65.00 Coin Accumulator . . . . . . . . . . . . . . . . $55.00 Wascomat / Electrolux Inverters (MotorControl) All. . . . . . $245.00 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 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

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

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ADVERTISERS’ INDEX Advertiser

Page

Advertiser

Page

AC Power ........................................ 28

Laundry Concepts ............................31

Card Concepts ....................................3

Laundry Owners Warehouse ......13, 39

Clean Show .......................................37

Metro Laundry Tech Corp. ..............39

Continental Girbau .........................IBC CryptoPay .........................................15 D&M Equipment .............................11 Eastern Funding ................................29 ESD Inc. .............................. 20-21, BC FrontecStore.com ..............................38 Gold Coin Laundry Equipment ........25 Great Lakes Commercial Sales ........ 38

Mountain Electronics ........................38 New York Laundry Equipment ........33 NIE Insurance ...................................23 Progressive Insurance ..........................9 PWS Laundry ....................................17 R&B Wire Products ...........................1 SESLaundry.com ...............................19

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

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

Huebsch ................................FC, 26-27

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

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

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

www.americancoinop.com

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2017 RATES: One- to five-time rate: $2.65 per word, boldface $2.75 per word. Minimum charge: $25.00 per ad. Call or write for our three- and 12-time rates. If box number is used, add cost of 5 words. Display classified rates are available on request. All major credit cards are accepted.

DEADLINE: Ads must be received by the 1st of the preceding month. For example, for a June ad, the closing date is May 1st.

PAYMENT FOR CLASSIFIED ADS: Must accompany order.

JANUARY 2017 AMERICAN COIN-OP 39

12/12/16 3:45 PM

NEWSMAKERS

LAUNDRY OWNERS WAREHOUSE OPEN HOUSE TURNS INTO ‘CEO SUMMIT’ Equipment/parts distributor Laundry Owners Warehouse hosted its inaugural open house at its Ft. Lauderdale, Fla., headquarters in mid-October, drawing multi-store owners from several states and four countries, the company reports.

“Unexpectedly, the event turned into a CEO summit as top multi-store owners from across the country and around the world enlightened the event, making it a brilliant success,” the distributor says in a press release.

Dexter’s line of products was a hot topic, according to the company, as owners discussed in details how to achieve greater performance, efficiency and financial success. Industry message board regular Paul Russo presented Tricks of the Trade, sharing solutions to common issues faced by all laundry owners.

tive store layout and design, costs associated with opening a Laundromat, an industry history and an industry forecast.

The seminars held in October and November drew 40 attendees from across the Sunshine State, Statewide reports.

These Dexter Authorized Distributor sales representatives comprise the fall 2016 graduating class of Dexter University – Sales Academy, the equipment manufacturer’s training program. (Photo: Dexter)

Store owners attending the inaugural Laundry Owners Warehouse Open House at the distributor’s Ft. Lauderdale, Fla., headquarters listen to a speaker. (Photo: Laundry Owners Warehouse) PRIMUS ADDS COMPANY TO DISTRIBUTOR NETWORK Commercial laundry equipment manufacturer Primus® has entered into a partnership with Laundry Systems of Tennessee, Sevierville, Tenn., under which the distributor will offer Primus equipment to vended Laundromats and on-premises laundry (OPL) facilities in Kentucky and Tennessee.

“We are thrilled to welcome Laundry Systems of Tennessee into the Primus distributor network,” says Mark Schram, North American sales manager for Primus. “Through our expansion into these new markets, we will be able to provide more customers with commercial-grade Primus equipment, as well as unparalleled customer service and support.”

STATEWIDE LAUNDRY EQUIPMENT WRAPS INVESTMENT SEMINARS Distributor Statewide Laundry Equipment recently wrapped its 2016 schedule of Laundromat Investment Seminars staged this fall in Tampa, Orlando and Hialeah, Fla., the company reports.

The seminars covered various topics about getting started in the laundry industry, including the benefits of owning a Laundromat, the importance of working with a trustworthy distributor, effec40

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DEXTER GRADUATES FALL CLASS OF SALES ACADEMY The fall 2016 class of Dexter University – Sales Academy graduated recently, says equipment manufacturer Dexter Laundry.

The class was comprised of Dexter Authorized Distributors from around the globe, representing five countries and totaling more than 350 years of experience in the commercial laundry industry, Dexter says.

The professional salesmen and saleswomen dedicated a week to learn how to be the best laundry representative in their territory.

The class had the opportunity to spend time in Dexter’s test lab and factory in Fairfield, Iowa, where the company’s high-quality commercial washers and dryers are built.

EXPRESS LAUNDRY CENTER CONTRIBUTES TO LOCAL COMMUNITY Oshkosh (Wis.) Express Laundry Center has been active in support of its local community through charitable giving and donation of its services in recent months, the store reports.

It presented a $1,860 check to Aurora Health Care Foundation’s Oshkosh Pink Possible Breast Health Fund. The Pink Possible campaign, held throughout October each year, engages local businesses to raise money for Aurora Cancer Care breast cancer patients and their families.

Meanwhile, Neenah (Wis.) Police Department’s Stuffed Hugs program allows officers to give gently used, donated stuffed animals to area children, according to Stuart Zuehls, community liaison officer. Oshkosh Express Laundry Center laundered hundreds of stuffed animals in double-load, high-speed washers with ozone injection to ensure they were properly cleaned and disinfected.

Oshkosh Express Laundry Center is owned by Continental Girbau Inc., a provider of vended, on-premise and industrial laundry equipment throughout North America. Continental is also based in Oshkosh.

ACO www.americancoinop.com

12/12/16 3:49 PM

IT’S SIMPLE.

AT CONTINENTAL, WE ARE INNOVATORS. Continental has installed commercial-grade high-speed, softmounts in laundromats for over 20 years. We lead the industry in marketunique, creative innovations that positively impact vended laundries. NO WONDER THE OTHERS FOLLOW OUR LEAD! For years, we’ve proven the huge store advantages garnered from washers that produce greater than 200 Gs. Laundries with plus 200 G-force enjoy lower utilities costs and overhead, increased customer turnover and boosted profits.

When installing washers with over 200 Gs, a 3,500-square-foot laundry can save as much as $70,000* per year in utility expenses!

Watch and learn at www.continentalgirbau.com/expresscomparison.

Call (800) 256-1073 to make your laundry more attractive, flexible, profitable, convenient and unique! www.continentalgirbau.com

GIRBAU INC.

*Contact CGI for specifics

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