American Coin-Op - February 2018

Customer Service

WORTHY OF A Good Review

I N S I D EI :N SJ IUDL EY: 2F 0E B0 R5 U A R Y 2 0 1 8 WHAT DOES THE TAX CUTS AND JOBS ACT MEAN TO YOU?

GENTLE BEN: MULTI-STORE OWNER SHOWS HIS SOFT SIDE

REWARD ATTENDANTS WHO GO THE EXTRA MILE

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CONTENTS FEBRUARY 2018 VOLUME 59 ISSUE 2

COVER STORY

CUSTOMER SERVICE WORTHY OF A GOOD REVIEW When machine availability, vend price and convenience are comparable between stores, it’s customer service that often breaks the tie. Here’s how some store owners from around the country emphasize catering to clientele.

(Cover composite: ©iStockphoto/artisteer & adisa)

INSIDE 12 GOIN’ WITH COHEN: GENTLE BEN

Laurance Cohen visits Jacksonville, Fla., to see the soft side of gentle giant Ben Gottlieb, well-known in the local market for owning multiple stores, as well as to those who follow the industry online.

18 ESSENTIAL TAX TIPS: WHAT DOES THE TAX

CUTS AND JOBS ACT MEAN TO YOU?

Thanks to the recently passed TCJA, the tax rate for incorporated coin-operated laundries drops to 21%, plus it’s now possible to write off new equipment purchases more quickly.

34 COIN-OP 101: REWARD THOSE

6 COLUMNS 26 LEARNING WHY YOU OWE WHAT YOU OWE Tax preparer and columnist Howard Scott reviews several tax concepts through a hypothetical conversation between a Laundromat operator and his accountant.

30 JUMP INTO IRONING, EXPAND SERVICES Vended laundry owners who’ve mastered full-service wash-dry-fold are perfectly positioned for business growth by adding a flatwork ironer, says Continental Girbau’s Joel Jorgensen.

DEPARTMENTS 4 VIEWPOINT 32 WEB UPDATE 33 CALENDAR

37 NEWSMAKERS 38 CLASSIFIEDS 39 AD INDEX

WHO GO THE EXTRA MILE

You want your staff to be helpful, pleasant and attentive, says Speed Queen Commercial’s Tom Fleck. And we all want to be noticed, recognized and rewarded for going the extra mile and doing things the right way in serving customers, but how do we spur those around us to go just as far ... or farther?

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14 A CLOSER LOOK “There’s never going to be water out there,” boasts Ben Gottlieb, whose floor drain troughs run the length of each washer bulkhead.

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

Donald Feinstein, Associate Publisher/ National Sales Director E-mail: dfeinstein@ATMags.com Phone: 312-361-1682

SERVICEORIENTED

Bruce Beggs, Editorial Director E-mail: bbeggs@ATMags.com Phone: 312-361-1683 Roger Napiwocki, Production Manager Nathan Frerichs, Digital Media Director E-mail: nfrerichs@ATMags.com Phone: 312-361-1681

ADVISORY BOARD

Bruce Beggs

CUSTOMER SERVICE WORTHY OF A GOOD REVIEW Even if your store is unattended, your laundry still interacts with customers every day. And each interaction is an opportunity for a positive outcome that keeps the customer coming back, or a negative experience that could lead to the customer posting an online review that paints your business in a most unfavorable light.

For this issue’s cover feature, which begins on page 6, I interviewed several store owners from around the country to ask how they train to provide good customer service; how they treat customer reviews found on sites like Yelp, Google and Facebook; and what the way they respond to their “mistakes” says about them and their business.

It was clear after speaking with them that all place great importance on keeping customers happy, and you should, too. I think Alabama’s Ken Barrett illustrated it best when he told me he reminds his attendants during training that if “People don’t come here, you don’t have a job.”

Elsewhere in this issue, our Coin-Op 101 column also looks at customer service, but from the position of encouraging and rewarding your attendants for the quality service they provide. You can check it out beginning on page 34.

WHAT DOES THE TAX CUTS AND JOBS ACT MEAN TO YOU? With the Tax Cuts and Jobs Act now signed into law, it presents small businesses like yours with opportunities to lower their bill for the 2018 tax year and beyond. Beginning on page 18, veteran finance and tax writer Mark E. Battersby offers some essential tax tips by running down the various changes now in effect.

For example, regular C corporations will be taxed at a lower 21% rate, but the majority of small businesses operating as passthrough entities will face new personal tax rates higher than the corporate rate. Meanwhile, many businesses will be able to fully and immediately deduct the full cost of certain equipment.

Here’s hoping the tax changes are good for businesses like yours.

Kurt Archer Wayne Lewis

Ann Hawkins Kathryn Q. Rowen

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 59, number 2. 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, 2018. 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.

Bruce Beggs Editorial Director

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Customer Service

WORTHY OF A Good Review

When machine availability, vend price and convenience are comparable between stores, customer service often breaks the tie

(Photo Composite: © iStockphoto/artisteer & adisa)

by Bruce Beggs, Editorial Director

W

hy does someone choose to use a certain Laundromat?

Is it because it’s safe and secure, it’s clean, it has enough machines available? What about being close to home, with hours that fit their schedule, and offering sufficient parking?

Where does vend price, or the availability of large-capacity equipment, or having an attendant on duty figure into the equation?

Actually, all of these factors might play a role in helping a customer decide where to clean their clothes. But what if the factors they find most important—say, machine availability, vend price and convenience, for example—are virtually equal between Laundry A and Laundry B? How does a customer choose then?

In cases like these, the manner in which they are served at A and B often becomes 6

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the tiebreaker. That’s right—it comes down to customer service.

And popular online review platforms like Yelp, Google and Facebook have placed even greater pressure on store owners to keep patrons happy or risk having their reputation sullied by an angry or disgruntled customer—whether the criticism is deserved or not.

For this month’s cover story, American Coin-Op interviewed several store owners from around the country to learn how they go about providing customer service worthy of receiving a good review.

TRAINED TO SERVE Cathy Neilley, owner of the fully attended Spin Doctor Laundromat near Trenton, N.J., offers a depth of knowledge that few store owners can when it comes to training her eight employees about customer ser-

vice. Why? She teaches a for-credit course in customer behavior as part of the business degree program at Mercer County Community College.

“At least twice a year, I reserve a section of store staff meetings for learnings,” she says. “We have them do some of the same in-class exercises that I give the students, such as role-play and ‘what would you do?’ scenarios. The training, much like in the classroom, is supported with real-life customer examples of how good and bad customer service impacts the bottom line.”

The manager and eight part-time attendants who work at Marty and Lynn Mullican’s 4,800-square-foot Owasso (Okla.) Express Laundry Center are quite familiar with the store’s training manual. Whether faced with a malfunctioning machine, bedbugs, or someone who is loitering in the store, the manual conwww.americancoinop.com

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“Training starts with making people recognize the responsibility to make people feel welcome, respected, supported and comfortable.”

—Brian Holland, Laundry Café, Philadelphia tains a procedure for handling it, designed to ensure consistency in customer service.

“The rule of thumb for us is, whenever we have a customer engagement, it’s not about that issue, it’s about the next visit,” Marty Mullican says. “Everything we do with a customer is about their next visit.”

Bill Norteman and various partners own four card-operated Laundromats in the Chicago suburbs of Niles, Elgin, Addison and West Chicago, ranging in size from 2,600 to 5,800 square feet.

There are roughly 30 employees among the four stores.

Norteman uses an attendant training video produced by the Coin Laundry Association. From day one, there are technical aspects to training, especially in learning how the stores’ card systems work, he says, but he makes certain to emphasize the human element.

“I tell them we’re not in the laundry business, everybody’s in the customer service business,” he says. “There are plenty of laundries out there and if we’re not best at customer service, we won’t be in business. We build upon that, and try to show by example.”

Partners Brian Holland, Tyrone Akins and Ray Chamberlin co-own four Laundry Cafés in “deliberately underserved areas” of Philadelphia. All are fully attended, 24-hour stores that are in excess of 7,000 square feet. The men employ 34 people, many of whom work at multiple locations for them.

“We all come from senior positions in the pharmaceuticals industry. We’re proud of that heritage, and it also taught us some things about how people deserve to be treated,” Holland says. “Training starts with making people recognize the responsibility to make people feel welcome, respected, supported and comfortable.”

The men work hard to model the behavior they want their attendants to display and are known to be standing curbside waiting to carry a customer’s clothes inside for them, or are already inside welcoming the newcomers or mingling with others.

Akins says they’re planning to record 8

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best-practices video for handling dropoff service, customer care, etc., and Chamberlin adds that they’ll leverage digital media to make the training materials available on monitors in the store and even on an employee’s smart phone.

Glen Sheeley and his parents, Wayne and Addie, own and operate Wash Co., a new Laundromat and car wash in Middletown, N.Y., 15 minutes from the Pennsylvania/New Jersey/New York border. They employ a dozen people, including a store manager. All are cross-trained in both the laundry and car wash, plus Glen asks them to spend time being a customer themselves.

“I always request them to bring in their own laundry to do it themselves,” he says.

“The best training is doing it on your own. You’ll get the questions that people are normally going to ask you when they come in for the first time.”

Ken Barrett owns three Washin stores in eastern Alabama, with only one attended.

The weight of supplying customer service at his unattended stores falls on him, but he does train a handful of employees on best practices.

“When I first hire somebody, we have probably a half-hour conversation, with me explaining the business and their part in it,” Barrett says. “It really kind of explains, ‘People don’t come here, you don’t have a job.’ … You just need to be nice to people, (is) a lot of it.”

Engineering manager Boyd Woodard owns three stores in Southern California and is in the process of building a fourth; they range from 1,500 to 4,500 square feet. The first two he acquired—one fully attended, one partly attended—are close to one another in West Los Angeles, where he employs five people shared between them.

“I’m hands-on with my attendants,” Woodard says. “I try to reiterate messages of what I envision for customer service. I keep things positive with my attendants as much as possible, so they feel they’re in a good place with their job. They know where I’m coming from, and know what’s

expected of them. I believe that transfers into a sense of ownership into the store and the work that they do, so there’s a sense of pride and appreciation for what they do. There’s meaning to the work.”

CONNECT WITH CUSTOMERS To provide good customer service, it’s important to know what customers want.

And that requires communication … or at least a good ear.

“I’m actually criticized by my partners sometimes because I’ll go out and spend a day in the laundries, just be there, fix the occasional broken machine or deal with the occasional customer service issue,” says Norteman, who works as a pilot for United Airlines. “I basically schedule my duties on the busiest days because it’s the best time for people to complain.

“Sometimes, when you’re kneeling down unplugging a drain valve and you hear some customers chatting about this, that or the other thing they don’t like because they think you’re a regular technician, it’s really invaluable information.

They won’t tell you what you really want to hear if you’re the boss.”

Besides instructing attendants to actively engage customers in conversation, Woodard uses suggestion boxes. In the attendants’ room, he posts good comments from customers as a way to praise good performance and bad comments for management to use as teaching tools.

There are times that just walking the store and talking to customers can best inform your customer service efforts.

“We have a beautiful store,” Sheeley says. “Thought we had everything under the sun in it. And a lady says to my dad, ‘I love this place, but the only thing I don’t like is you don’t have coat hooks on the back of the bathroom doors.’ … So he gets them and puts them in. I’d really forgotten about it when this lady comes to the (office) door like a month later and says, ‘Omigod, you actually listened to me!”

“If you’re there and people are visiting, just kind of watch and see what kinds of concerns they have,” Barrett says. www.americancoinop.com

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“Always put yourself in the mind of the customer, building a reason for them to return.”

—Marty Mullican, Owasso (Okla.) Express Laundry Center “We learn what our customers want by exceeding their expectations,” says Mullican. “This is not rocket science, but yet it seems difficult for some people to grasp. Just put yourself in the mindset of a customer. What would make their day go better? What would make this process go easier?”

IN SEARCH OF FIVE-STAR REVIEWS It’s ever so easy for someone to post a review online these days, and the share of bad reviews frequently outnumber the number of good comments. Every store owner interviewed says he or she pays attention to customer feedback posted online.

“What people normally do on Yelp is that they’re inclined to find the time to complain about a bad service,” Akins says.

“We try to flip that around and give them an excellent service and remind them while they’re there … to take a moment and let everyone know about their experience at the Laundry Café.”

“We fully embrace the things we’ve done well but we also learn quickly from the things we haven’t done so well,” Holland adds.

“If somebody puts something … online, and we do get comments online that we try to handle the same as we would in person, I think it means more in person,” Sheeley says. “I think when people write things on the Internet, you can read it any way … you can take it many ways.”

“I do see a lot come in through Google reviews,” says Barrett. “I’ll respond to every review, as soon as I see the e-mail. I try not to put in canned answers. If I get a three-star review, I’ll reply right away and say, ‘Sorry about the concern. Please let us know if there’s anything that we can do better.’ … People reading it are going to see that you responded fairly quickly and left your e-mail address.”

Norteman and his partners pay to advertise on Yelp, Google and Facebook, so they’re adept at tracking the flow of information online. Like Barrett, as soon as a review is posted, they’re notified right 10

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away and have the opportunity to follow up with staff and then personally respond to the customer if they wish.

“I never ignore a review,” Norteman says, “at least not without looking into it and determining if there’s any validity to it.”

HANDLING ‘MISTAKES’ Machines sometimes malfunction. Cards are lost or stolen. Clothes don’t seem to be as clean as the last time they were washed in the store. During times like these, when a customer becomes dissatisfied, the way in which a store responds to its “mistakes”— whether real or imagined by the customer—can say a lot about the business.

“It’s huge,” Barrett says. “Whether the mistake is real or imaginary, it’s a mistake on your part in your business.”

“I think it says everything about a business,” Sheeley believes. “I had one today.”

He explains that a woman reported she lost her laundry card and her cell phone in the store. Sheeley easily assisted her with another card but she was still upset about the missing phone and asked if he could review his security camera footage.

“It was super busy that morning but I still took the time to sit down with her on the camera. … She was disappointed we didn’t find it but at least I won’t get a bad review. It has nothing to do with washing clothes, or the Laundromat business at all, really.” “(It says) that we’re fair, transparent and responsive,” Neilley says of her store’s response strategy. “We want to show that we really want them to have a consistently good experience. That’s the sign of a good brand, and we want to be that.”

“We try to craft responses that let people know that is not the way we run our business and we strive daily to avoid any issues like that,” Woodard says. “It’s really crafting a message around care for the customers and the fact that we are striving to be better.”

“Our customer service philosophy, I like to call it, is the customer never pays twice,” Norteman says. “I tell our people

on day one that if something goes wrong, … it doesn’t matter even if it’s the customer’s fault, they never have to pay twice for the same washer or same dryer.”

“All of our attendants are empowered to make it right,” Mullican says of a customer complaint. “Even if an attendant makes a mistake, we’re going to back that attendant, and then we’ll talk to the attendant later and say, ‘OK, if we had to do this over again, we wouldn’t do it that way.

“Every time we have a mistake, what we have in mind is the customer’s next visit.

How do we address this issue so that they come back? … It’s all about getting that customer to return and to have them tell their friends: ‘You know what, this didn’t work right, but they fixed it.’”

ONE LAST TIP...

And if the store owners interviewed were to offer an industry newcomer one tip about customer service, what would it be?

“It’s probably the most important thing to worry about, more so than (whether) every washer’s working,” Norteman says.

“It should be at the top of your list of things to worry about.”

“Be as generous as you can, and don’t ever skimp on a refund,” says Barrett, who’s been known to mail a refund check in the amount of 50 cents.

“I’m going to quote back to what my dad would say to me: ‘Treat people as you would want to be treated, and always run a store better than me,” Sheeley says.

“Always put yourself in the mind of the customer, building a reason for them to return,” says Mullican.

“I think that every customer wants to know that the people running the business care about them,” says Woodard. “You’ve got to have that attitude to be consistent in your customer service, and you’ve got to pass that on to your attendants.”

“I would say embrace the joy of serving,” says Akins. “If you want to be successful in this business, you’ve got to serve before you can lead.”

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GOIN’ WITH

COHEN

Gentle Ben Jacksonville multi-store owner shows he’s got heart

M

by Laurance Cohen

ing that while free soda pop or soap by others is a nice gesture, it’s not advertising.

“If you come home with a bike, everyone’s going to ask: ‘Where did you get it?’

If you got a new 40-inch TV at your house, you’re going to tell your mom, your sister, your stepson — everyone’s going to know.

Why? Because you’re happy; you’re happy to get something for free.”

The acts of kindness and generosity may draw wash trade to his eight Jacksonville and single St. Augustine outposts, but it still comes down to giving customers what they need on laundry day: plenty of machines in a clean and spacious environment to get the job done.

That’s very much in evidence at Gottlieb’s state-of-the-art facility occupying 4,000 of the 34,000 square feet of shopping plaza space he built from the ▲

y chat with Ben Gottlieb is on hold: Something’s up by the soap vender, where a 2-yearold is tugging at the shirt of the muscular operator after hearing quarters hit the collection bucket. The tot wants to play the crane novelty game and his mom is busy spending her hard-earned money on laundry. His plea is met with some free rounds and a stuffed toy.

The softer side of this gentle giant of the Jacksonville, Fla., coin laundry scene is playing out right before my eyes. Gottlieb is well-known in the local market, where he owns one of every 10 stores, as well as to those who follow the industry online.

His real-world persona — not the digital one peppered with an occasional rough-and-tumble forum posting — truly defines the man behind one of the Sunshine State’s biggest success stories.

“I took care of that kid for a couple of minutes while she could load her machine and I was the babysitter,” he tells me.

“It didn’t cost me anything. The crane machine money is going right back in my pocket.”

The freebie likely won over the mom’s patronage. She’s just one of thousands who’ve seen how big of a heart Gottlieb has and repay him by flocking to his chain of coin-ops. Just ask the 744 area residents who were handed Butterball turkeys at three of his nine locations during last Thanksgiving’s annual giveaway. The same for the kids riding new bikes, and parents toting home TVs, after winning December holiday raffles.

And that’s not all: As a climax to drawings in a handful of stores, he literally pulls out his checkbook.

“Whoever wins, I’ll go to their apartment complex or wherever and pay the rent,” he says of the promotion that he says costs him a few grand each year but is well worth the investment.

“I give away stuff,” Gottlieb says, add-

(Above) Florida’s Ben Gottlieb, well-known locally and in the online community, launched his version of a “five-star laundry” in Jacksonville last year.

(Right) Buddy, can you spare a quarter? A kind-hearted Gottlieb treats a tot to free play on a crane game.

(Photos: Laurance Cohen unless otherwise indicated) 12

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GOIN’ WITH

COHEN ground up and cut the ribbon at last June.

Monaco 24 Hour Coin Laundry’s bright red channel letter facia signs call attention to the anchor store’s 36 washers in five capacities configured in tandem T-shaped banks and set perpendicular to a row of 42 dryer pockets.

The stainless steel front-load washerextractors, vending from $2.50 to $10, offer patrons a scrolling menu of setting options. Two sets of three machines — an 80-pounder, flanked on each side by 60-pounders — stand front and center just inside the store’s dual entryways. As customers walk down the wash aisle, the balance of 60-, 40- and 20-pound-capacity machines, along with four top loaders, taper toward the dryers.

Sturdy aluminum diamond plate edging adds a decorative touch below washer cabinetry, just inches from troughs running the length of bulkheads.

“I would never build another store without floor drains in front of the washers. There’s never going to be water out there,” the owner says, gesturing toward

“There’s never going to be water out there,” boasts Gottlieb, whose floor drain troughs run the length of each washer bulkhead.

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the aisle. “It’s just not going to happen.”

Diamond plating is carried over to the dryer wall to give the twin Monaco 24 Hour Coin Laundry occupies a prominent end cap and serves as anchor 75-pound single pockets to a 34,000-square-foot plaza the operator constructed just west of Jacksonville’s and eight 30-pound and beltway. (Photo courtesy of Ben Gottlieb).

12 45-pound stacks a clean line at the floor.

Hanging beneath the exposed deck is cards, until they turned a profit.

“I’m not a quitter,” he stresses, going the main entertainment — a four-sided, scoreboard-style monitor with four jumbo on to say that those first operations were TV monitors — giving the place more the humbling. “I learn from mistakes all the air of a basketball arena than a place with time and make mistakes when I try new laundry baskets. Just as impressive are things. It’s an everlasting education — the dual overhead 16-foot-diameter fans you’re always going to learn.”

When Gottlieb reached store number keeping the air-conditioned laundry even more comfortable with a gentle circulat- four a decade ago at age 30, operations were running on autopilot and he vening breeze.

Natural light floods in on the north and tured into his own distributorship. The east sides through storefront glass that move forced him to hand over a set of keys extends along the perimeter. Weathered to a trusted employee and, with it, much wood planks, salvaged from a storm- of the day-to-day operations, including damaged warehouse, add a rich texture to collections and oversight.

He’s never looked back. the décor above the windows.

“It’s so easy once you get past that Gottlieb, whose other stores are rehabs, says he had to bring his A game to third- and fourth-store zone,” the owner Monaco. This time around, the veteran smiles, adding that for him, it all came wasn’t married to a layout and needed the down to not micromanaging staff.

These days, he relies on technology to flexibility to create a winner, especially when vying for wash customers down the keep tabs on his 24-hour operations.

“I’m able to log in to all my cameras road from what he notes is Jacksonville’s and see things remotely. I see that garbage highest-volume coin-op.

“I had to separate it from my competi- on the floor. If it’s still there in an hour, tor,” he explains. “It was a blank canvas then you need to correct it,” the veteran and nothing here but dirt. I could do shares.

He visits each of the nine stores in his whatever I wanted, so I felt it was time to see what a five-star laundry would portfolio once a week plus “pops in occalook like. I think I’ve come pretty close sionally” to check things out. Two collectors, a full-time and freelance maintenance to that.” tech, along with a team of dedicated attendants keep the 500-plus-machine opera‘AN EVERLASTING EDUCATION’ This latest and largest venture spear- tion bright, clean and humming along.

“If you want it done fast and right, headed by the 40-year-old entrepreneur is the culmination of nearly two decades you hire someone who can work on two in the industry, one that began in local machines at once. I don’t really tinker equipment sales for his father Marty, around much,” the owner admits, describwho distributed along the East Coast, ing his role as “head babysitter.”

I point to a sign prominently mounted including Jacksonville, where the younger Gottlieb relocated after graduating college above the new dryer bank reading “Be Nice or Get Out!” — the same message at age 22.

Early on, he picked up two coin-ops to gracing the walls in each of the chain’s retool and struggled, maxing out his credit venues. He credits local operator Dale www.americancoinop.com

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GOIN’ WITH

COHEN Bodziony with coining the phrase and says it’s the house rule.

“I demand that my customers be respectful; it’s not even an option,” Gottlieb states. “If you walk in the door, you respect the floor, the dirt on the floor — whatever, everything. You’ve got to be respectful.”

When things go awry and he or his staff can’t sort them out, he’ll summon police to handle the situation without blinking.

The sign doesn’t rub patrons the wrong way, the owner assures me.

“They laugh at it. They know I’m out for their best interests.”

CANDID STANCE NOT ALWAYS WELCOMED Wearing all three hats — store owner, sales rep and distributor — gave Gottlieb a unique insight into this industry’s inner workings, helping shape the relationships he has with fellow local laundry operators and those encountered on the web.

He admits often spending more time in other owners’ laundries than his own, acknowledging some in the tight-knit Jacksonville coin-op community lean on him for advice.

“People are appreciative of the fact that I’m not going to snowball them,” Gottlieb says. “You can do something different, but you’re asking me what I would do.”

His candid stance on all things coin laundry shared online aren’t always as welcomed.

“Some people, they’re not Ben fans,” he grins. “I’m going to tell you the truth. I’m

going to tell you like it is.”

Gottlieb goes on to explain that his intent is not to enflame but rather enlighten operators with a little straight talk.

“I don’t think I have multiple personalities. My online banter is strictly to help some guy out. I don’t want someone to lose money. I’ve seen so many people get hammered or killed making the wrong decision.”

Monday morning quarterbacks get under his skin and their commentary elicits responses, with him preferring to cut to the chase.

“It’s my opinion; if you like it, cool. If you don’t, cool. It doesn’t bother me either way.”

Gottlieb admits he took a breather from online forum postings during part of last year, but looks forward to contributing to the dialogue in the coming months.

The seasoned businessman is open to talk shop behind the keyboard, but prefers getting acquainted face-to-face. He longs to get back to the time when a small group of local operators would get together regularly to chew the fat and have a laugh.

Gottlieb makes only one demand of customers at his ninestore chain: r-e-s-p-e-c-t.

Dual overhead 16-foot-diameter fans create a gentle circulating breeze, making the air-conditioned laundry even more comfortable for patrons.

Weathered wood planks were salvaged from a stormdamaged warehouse and given new life above the interior storefront windows, adding rich texture to the store’s décor.

The metropolis straddling the St. Johns River may have the largest footprint in the country but to Gottlieb, it stands out because of the friendly rapport among store owners who don’t find themselves embroiled in cutthroat price wars.

“Jacksonville’s not that way. You’re best served if you know your competitor. Once you know them, you’re not their competitor, they’re your friend,” he smiles. “There’s just so much more to gain by being nice than not.”

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.

Monaco 24 Hour Coin Laundry’s 36 washers are laid out in twin T formations tapering down in load capacity toward the 42 tumbler pockets.

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ESSENTIAL TAX TIPS

WHAT DOES THE TAX CUTS AND JOBS ACT MEAN TO YOU? Tax rate for C corporations lowers to 21%; laundry equipment could be fully expensed

by Mark E. Battersby

A

re you ready for tax “reform?”

Thanks to the recently passed Tax Cuts and Jobs Act (TCJA), the tax rate for incorporated coin-operated laundries and businesses will be reduced from its current 35% to 21% -– for the 2018 tax year and thereafter. And, although the business tax cuts are, for the most part, permanent, the tax cuts for individuals are only temporary, expiring in 2026.

Unfortunately, while regular C corporations will be taxed at a flat 21% tax rate, the majority of small businesses operating as pass-through entities will face new personal tax rates higher than the corporate tax rate.

corporations, partnerships, LLCs and sole proprietorships.

All businesses under the income thresholds can take advantage of the 20% deduction. For pass-through income above this level, the TCJA places limits

on who can qualify for the pass-through deduction, with strong safeguards to ensure that so-called “wage income” does not receive the lower marginal tax rates for business income.

Thus, while providing a deduction for

PASS-THROUGH BUSINESSES

Pass-through businesses operating as partnerships, limited liability companies (LLCs), S corporations and sole proprietorships pass their income to their owners, who pay tax at the individual rate.

The TCJA created a 20% deduction that applies to the first $315,000 of income (half that for single taxpayers) earned by coin-operated laundries operating as S 18

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up to 20% of pass-through income, that 20% deduction applies only to passthrough business income that has been reduced by the amount of “reasonable compensation” paid the owner. This, in essence, ensures the owner’s top effective marginal tax rate will be no more than 29.6%. Lawmakers have yet to provide a definition of what is meant by “reasonable” compensation.

COST RECOVERY – INCREASED EXPENSING

Unlike in past years when vended laundry owners and operators were required to claim depreciation, spreading the recovery of their equipment costs over several years, many businesses will be able to fully and immediately deduct the full cost of certain equipment. Even more notable, this change is retroactive to Sept.

27, 2017.

This may involve recalculation of assets based on when they were placed into service. If, for instance, an asset was acquired prior to Sept. 28, 2017, and placed in service after Sept. 27, 2017, it would qualify for the old 50% expensing. Assets acquired and placed in service after Sept. www.americancoinop.com

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27, 2017, would, of course, qualify for the 100% write-off.

Unfortunately, the faster write-off of equipment costs is only temporary. It is at the 100% level for expenditures between Sept. 27, 2017, and Jan. 1, 2023.

After 2023 and before 2025, the amount deductible drops to 60%, with a further decrease to 40% after 2025 and to 20% after 2026. On Jan. 1, 2027, the equipment cost write-off disappears.

SECTION 179

Despite the narrowing of differences between so-called “bonus” depreciation and the tax law’s Section 179, firstyear expensing, with both offering 100% write-offs for new and used property, Section 179 remains a valuable option.

The immediate write-off, or “expensing” of capital assets, is appealing because, unlike so-called “bonus” depreciation, the use of equipment doesn’t have to begin with the coin-operated laundry business.

Prior to the TSJA, owners and operators were allowed to expense the cost of a business asset to the tune of $510,000 in 2017 ($500,000 adjusted for inflation),

with the maximum deduction reduced, dollar-for-dollar, as additional assets placed in service exceeded $2.08 million.

With the new law, businesses will be able to expense up to $1 million in 2018, with the new phase-out amount set at $2.5 million. Naturally, as with the earlier amounts, these amounts will be adjusted for inflation.

And now, improvements including roofs, heating, ventilation, air conditioning systems, fire prevention, alarms and security systems qualify under the new Section 179 rules, providing another opportunity for coin-operated laundries that actually need equipment.

QUALIFIED PROPERTY WRITE-OFFS GONE

The shorter depreciable lives that increased the annual write-off for leasehold improvements, retail and restaurant improvements has been eliminated.

Today, qualified improvement property is generally depreciable over a 15-year period, whether the improvements are property subject to a lease or are placed in service more than three years after (continued on page 22) FEBRUARY 2018

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WHY DID YOU CHOOSE AN ESD SYSTEM?

I chose ESD because of ESD’s commitment to product in cutting edge technology, customer care and technical sup provided me with the tools with MyLaundryLink softw my stores operations anywhere, and ESD provides my cu payment options: card, Credit/debit card, pin based debi EBT. They can also start their washers or dryers with a p and their phone will vibrate when their washer or dryer s system even allows the customer to view their account an from their PC when they are away from the store.

TM

WHAT IS YOUR EXPERIENCE IN THE LAUNDRY INDUS

I have been in the commercial laundry industry since 197 owned retail Laundromats since 1987. I have personally w ESD’s growth over the years to become the industries lea payment systems.

WHAT WERE THE UNKNOWN CHALLENGES THAT YOU WITH YOUR NEW STORE AND HOW HAS ESD’S SYST YOU OVERCOME THESE CHALLENGES?

Building a customer base, hiring and managing a manag staff of employees and security; ESD provided me with th systems to manage my employees, and provide me with a

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Larry Vladimir - Bakers Centre Laundry

o product innovation, echnical support. ESD Link software to oversee vides my customers with n based debit cards and yers with a phone app, er or dryer stops. The r account and add value tore.

my competitors do not have…I have a totally cashless store, which gives my employees and me peace of mind and security. In addition, many other marketing and pricing options that my competitors do not have.

TM

DRY INDUSTRY?

try since 1979 and have personally witnessed ndustries leader in

IS THERE ANYTHING THAT SURPRISED YOU ABOUT THE ESD SYSTEM? I was surprised at how many customers really love the ability to use their credit or debit cards right at the machines.

HAS THERE BEEN ANY DOWNSIDE TO THE ESD SYSTEM? Absolutely not. I do not believe my store would be as successful as it has been so far without the ESD CyberLaundry system and the company and the people that stand behind it.

TM

S THAT YOU FACED SD’S SYSTEM HELPED

ng a managing a good d me with the tools and de me with advantages

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www.esdcard.com Contact your local ESD distributor or ESD sales representative for more information.

9/15/17 9:40 AM 9/14/17 1:28 PM

(continued from page 19) the date the building was first placed in service.

INTEREST EXPENSES

In the past, with a few exceptions, interest was usually tax-deductible, protecting the ability of small businesses to write off the interest on loans so necessary to the operation’s growth -– or survival. In an attempt to “level the playing field” between businesses that capitalize through equity and those that borrow, the TCJA caps the interest deduction to 30% of the adjusted taxable income of a coin-operated, self-service laundry business.

A special rule applies to pass-through entities that requires the 30% determination to be made at the entity level rather than at the tax filer level. In other words, at the partnership level instead of the partner level.

Other exceptions exist for small businesses, generally those with gross receipts that have not exceeded a $25 million threshold for a three-year period.

LIKE-KIND EXCHANGES, SWAPS AND TRADE-INS

The tax law’s Section 1031 governing like-kind exchanges currently allow coinoperated laundries and other businesses to defer the tax bill on the built-in gains in property by exchanging it for similar property. Although more a strategy for deferring a tax bill when business assets are sold or otherwise disposed of, with multiple exchanges, gains can be deferred for decades and ultimately escape taxation entirely.

Under the TCJA, like-kind exchanges will be limited to so-called “real” property (but not for real property held primarily for sale). The provision redefines likekind exchanges and includes language that would limit Section 1031 exchanges to exchanges of like-kind “real” property.

This ensures real estate investors maintain the benefit of deferring capital gains realized on the sale of property.

SMALL-BUSINESS ACCOUNTING METHOD AND SIMPLIFICATION

Simplifying the rules governing the method of accounting that must be used for tax purposes is a welcome option. Businesses with average annual gross income of less than $25 million may now use the simple cash-basis accounting method.

Accrual-basis taxpayers include amounts in income when all of the events have occurred that fix the right to receive income can be determined with reason22

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able accuracy. Cash-basis taxpayers generally include amounts in income when actually or constructively received.

AUTO EXPENSES

New limits on the write-off for the cost of so-called luxury automobiles and personal use property were included in the TCJA. For passenger automobiles and light trucks placed in service after Dec. 31, 2017, where the additional first-year depreciation deduction is not claimed, the maximum amount of allowable depreciation is increased to $10,000 for the year in which the vehicle is first placed in service, $16,000 for the second year, $9,600 for the third year, and $5,760 for the fourth and later years in the recovery period.

For passenger automobiles placed in service after 2018, these dollar limits are indexed for inflation. And for those eligible for bonus or first-year depreciation, the maximum first-year depreciation allowance remains at $8,000.

Similar rules apply to not only passenger automobiles, but to any property used as a means of transportation or used for the purpose of entertainment, recreation, or amusement. Computers and peripheral equipment have been removed from the definition of listed property and are no longer subject to the increased substantiation requirements that have long applied to listed property.

LOSING NOL BENEFITS

One of the main benefits of Net Operating Losses (NOLs) was the fact they could be carried back to more prosperous years to create a refund of taxes paid in those earlier years, thus providing an immediate infusion of badly needed cash. Today, the NOL deduction has been severely limited.

The NOL deduction is now limited to 80% of taxable income and only in special cases will a NOL carryback be permitted. There is no limit on how far

forward NOLs may be carried.

ESTATE TAXES

The tax law applies a 40% levy on estates worth more than $5.49 million for individuals and $10.98 million for couples. The newly passed law provides immediate relief from the so-called “Death Tax” by doubling the exemption so it applies to fewer estates. The credit for estate, gift and generation skipping transfer taxes would be increased to $10 million for decedents dying and gifts made after Dec. 31, 2017. As with most good things, the higher thresholds would sunset in 2026.

MORE, OH, SO MUCH MORE

Obviously, there are many more changes contained in the massive Tax Cuts and Jobs Act. The corporate Alternative Minimum Tax has been eliminated; the tax credit for rehabilitation expenses has been repealed, as has the disabled access credit; S corporations attempting to convert to regular C corporations will face new rules; and partnerships will no longer terminate upon the death or exit of a partner.

All in all, however, the Tax Cuts and Jobs Act appears to favor businesses over individuals with longer-lived tax savings.

Unfortunately, with few exceptions, the potential savings won’t be seen by coinoperated, self-service laundries or their owner/operators until the tax bill for 2018 comes due.

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. www.americancoinop.com

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PEOPLE MATTER. RELATIONSHIPS MATTER. — Tyrone Akins and Brian Holland Huebsch Investors Co-owners, The Laundry Café Philadelphia, Pennsylvania

Pictured from left: Tyrone Akins and Brian Holland, Co-owners, The Laundry Café

YOUR SMART LAUNDRY PARTNER

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OUR NETWORK WORKS FOR YOU. While working together at a major pharmaceutical company, friends Tyrone Akins and Brian Holland discovered they had a dream job in common: owning and operating a laundromat that would serve Philadelphia neighborhoods, like the ones they grew up in.

Based in large part on a proven history of helping investors achieve 25%–35% return on investment, Tyrone and Brian decided to partner with Huebsch® —but it wasn’t just about money. They were passionate about giving their community a quality laundromat with outstanding service.

Their Huebsch distributor worked tirelessly to help them iron out the details, find the perfect location and create a business plan. Before they knew it, The Laundry Café was open for business, giving Tyrone and Brian an exciting and profitable new venture—and their customers an amazing laundry experience.

Thanks to the support and guidance they received from their Huebsch Financial team, Tyrone and Brian now own several Laundry Cafés throughout Philadelphia. They are eager to open more locations and introduce other communities to the superior quality of Huebsch.

Visit huebsch.com/investors to hear more of Tyrone and Brian’s story and learn how you too can become a Huebsch Investor.

HUEBSCH.COM/INVESTORS

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AN OUTSIDER’S VIEW

LEARNING WHY YOU OWE WHAT YOU OWE

Howard Scott

Every year, I write an annual tax column. This year, let’s review several tax concepts through a hypothetical conversation between a Laundromat operator and his accountant.

Often, in the rush of business, your accountant gives you the end-of-year results and you make out a check and that’s the end of it. The accountant doesn’t call you in to explain why you owe what you owe, or explain why this year’s results differ from last year’s.

If you’re one to basically go along with whatever the accountant says, this article might suggest ideas of what to ask him/her next year.

Q: WHY DIDN’T MY COMPANY MAKE MORE MONEY? A: You didn’t make more because labor costs are 20% of revenue and that is too high. You didn’t make more money because you draw too much money out of the business, both on the books and off, in order to minimize tax liability. You didn’t make more money because your capital payments are excessive. That is, between bank borrowing, remodeling, and buying new equipment, you’re overleveraged. As a result, finance notes are eating up profits. You didn’t make more money because your rents are greater than they should be. You need to get more business coming in, such as wash-dry-fold, or pickup/delivery or commercial.

Q: WHY CAN’T YOU CONCEAL MORE PROFITS? A: You made money, and you have to pay taxes on it.

If we were to put down that your sales were $40,000 less than they actually were, this would create several imbalances. First, last year’s sales wouldn’t tally to this year’s.

Second, what about next year? Do we increase the lie?

Third, the ratios of sales to utilities cost would be off. A tax auditor looking at this might suspect tampering with figures. The same with expenses. If I were to increase administrative costs by $15,000, the exaggeration would be a dead giveaway.

I would hate to be representing you in a tax auditor’s office when he asks why administrative costs are so out of line. But besides all that, what you are suggesting is fraud. I would be stripped of my license to practice. You don’t expect me to risk that, do you? Finally, by being honest and aboveboard, you can sleep soundly at night.

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Q: WHAT WAS NEW IN THE TAX CODE THIS YEAR THAT HELPED MY BOTTOM LINE? A: There are really no new provisions that apply to you. Mileage allowance dropped from 54 cents to 53.5 to reflect relatively low gas prices. Section 179 Depreciation deduction remains at $500,000. On the other hand, all indices of personal taxes—standard deduction, exemptions—have increased a bit to slightly reduce your personal taxes, but basically the same tax code exists that churned out last year’s taxes.

Q: WHAT ARE YOU DOING TO LOWER MY TAXES? A: I gave you a home office deduction, because you do some administrative work at home and have a designated space for it, even though you have an office at your place of business. (This is allowed if you have a space at home where you do some administrative work, and you use the space regularly and exclusively for business.) Because such deductions are so common these days, I thought it was reasonable. That resulted in a $4,000 expense.

I used Section 179 to take this year’s capital purchases of $12,000 off this year, which reduced profits much more than if I had depreciated it over the asset’s expected seven-year life. (Depreciation covers asset cost. Section 179 allows you to take the full amount of the purchases, up to $500,000 in the year of purchase.) I used Actual Costs of your vehicles—gas, repairs, insurance, truck payments—rather than the Standard Mileage rate (53.5 cents per mile)—because Actual came out higher.

In Travel, Meals and Entertainment, I included all your meal and entertainment expenses. (TME includes expenses such as taking out customers to dinner or treating employees to a company outing.) In Other Expenses, I included memberships to organizations, under the basis that you gained several new customers. (Other includes any miscellaneous expenses that help the owner do his work.) In total, all these provisions lowered your tax liability by $1,500.

Q: HOW EFFECTIVE AM I COMPARED TO YOUR OTHER LAUNDROMAT CUSTOMERS? A: It’s always hard to compare, since every business is unique. But you don’t do enough business out of your stores. Others do more, perhaps because they take in www.americancoinop.com

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AN OUTSIDER’S VIEW

commercial trade. You need to keep those machines moving. As a result, I don’t think attendants are kept busy enough.

Your per-dollar cost is up. Perhaps this is the time to raise prices.

Finally, you personally pull too much money out of the business.

It is more than most of your competitors. It affects your growth potential because there isn’t enough left over to provide for expansion strategies. Cash flow is always barely in the positive side.

You’re just getting by, year after year.

Q: WHAT IS THE RELATIONSHIP BETWEEN PAYING PERSONAL TAXES AND PAYING BUSINESS TAXES? A: You elected to be a corporation, so the tax division matters.

At your income level personally, you are in the 15% bracket on the margin. Plus, you had a $30,000 exemption. So, while you make $80,000, you only paid $6,500 federal plus $3,500 state plus $5,200 Social Security, for a total tax liability of $15,200. This is 19% of your income. Your corporate income of $10,000 paid 15% federal plus 5% state, for a total of 20%. So it really doesn’t make much difference. We’re dividing the burden as best we can. If you elected to be a Schedule C business, it wouldn’t matter either, because both the personal and company are combined.

Q: HOW DO I KNOW THAT MY FIGURES ARE ACCURATE ON THE PROFIT AND LOSS STATEMENTS? A: Check with your bookkeeper. But if something seems incorrect, do some research. For example, if it surprises you that utilities are 30%, add several months’ utilities bills and see if you average 30%. You should know your break-even point in each store, know when utility costs go up and when they go down. You should know what percentage of your business is walk-in, know how much additional volume would double profits. You should know your daily nut, what it costs to open your doors every day.

I’m glad we “had” this conversation. With a better understanding, you’ll better grasp this year’s taxes.

ACO This column is not intended to provide specific tax advice or individual recommendations. Consult your tax adviser for advice regarding your particular situation.

Howard Scott is a former business owner, longtime business writer, and consultant. A former H&R Block employee, he’s been preparing taxes since 1998. He can be reached at dancinghill@ gmail.com.

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Joel Jorgensen

If you own a vended laundry that’s mastered fullservice wash-dry-fold (WDF), then you are perfectly positioned for business growth via the addition of a flatwork ironer. By investing in an ironer, you’ll open the door to opportunities and commercial accounts you otherwise could not serve.

Your laundry will quickly and automatically iron sheets, pillowcases, napkins and tablecloths, making it more attractive to healthcare, food and beverage, and hospitality clients. You’ll get your foot in the door with clients you couldn’t service before, benefit from a new revenue stream, and strengthen WDF business – all while growing the value of your enterprise.

HOW THE IRONER WORKS There are certain features and capabilities that separate one flatwork ironer from another. For example, Mike “Stucky” Szczotka, of New Wave Laundromat in Sterling Heights, Mich., and the “Laundry Doctor” Jeff Gardner, owner of Sel-Dale Laundromat in St. Paul, Minn., chose their ironers because they are simple to use and offer solid programmability.

Additionally, their equipment automatically modifies cylinder speed based on the ironer’s heat maintenance and programmed temperature. This allows operators to feed damp items into the ironer directly from the washer – bypassing dryer conditioning.

“Because the ironer dries and irons in one pass, it greatly improved our production and eliminated dryer bottlenecks,” says Szczotka.

Gardner says his ability to iron sheets and pillowcases using a 10-year-old, 13-inch Continental flatwork Here at the Express Laundry Center in Houston, a new ironer doubled ironer directly grew wash/dry/fold business in less than a year, according to owner Rob sales.

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“That single piece of equipment allowed me to do work for massage therapists, spas and acupuncturists,” he says. “They started talking about my business to friends. Then business boomed.”

DEDICATE SPACE FOR IRONER, COMMERCIAL WORK Dedicating about 60 square feet of space is essential.

This keeps the ironer away from your self-service customers, while allowing for the machine itself, installation clearances and a work area.

Szczotka recommends keeping the ironer separate from, yet visible to, customers. It piques their interest, which drums up new business. He has owned a Continental flatwork ironer for 14 years. Shortly after it was installed, thanks to the ironer’s ability to iron bed and table linens, store profits improved by $800 a week, according to Szczotka.

SERVE BIGGER ACCOUNTS WITH HIGHER QUALITY A vended laundry with an ironer will gain new accounts, even when those accounts require little ironing. Gardner and Szczotka agree that their ironers brought new business, strengthened overall profits and differentiated their laundries from the competition.

“Since we installed the ironer, it has paid for itself 30 times over,” Gardner says. “That’s a great investment.”

Szczotka, an experienced dry cleaner and vended laundry owner, picked up accounts from cosmetic surgeons, massage therapists and party rental companies. He uses the ironer in combination with highly programmable washers to properly clean and finish spa and table linens.

RELY ON DISTRIBUTOR TO GAUGE VIABILITY Most distributors – in addition to offering expert advice, equipment installation and post-sale service – can analyze whether an ironer is justified based on your goals, demographics, available space and potential return on investment.

ACO Joel Jorgensen (jjorgensen@cgilaundry.com), vice president of sales at Continental Girbau Inc., has 23 years of laundry industry experience. He is a frequent contributor to a variety of industry publications on topics related to vended laundry development and operation. www.americancoinop.com

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CALENDAR

UPCOMING EVENTS FEBRUARY 13 Laundrylux Level I Service School 14 Laundrylux Level II Service School Inwood, N.Y. Info: https://laundrylux. com/events/service school/ 22 Laundry Owners Warehouse Open House Ft. Lauderdale, Fla. Info: 954-537-1643 28 Laundry Pro of Florida Open House Lakeland, Fla. Info: 800-232-5736

MARCH 10 Coin-O-Matic Service School: Speed Queen Top Load Washer & Small Dryers Alsip, Ill. Info: www.coinomatic. com 14 CSC Serviceworks + Super Laundry Equipment Expo Jamaica, N.Y. Info: 516-678-4404, jclyde@cscserviceworks. com 17- Yankee Equipment 18 40th St. Patrick’s Day Show Waltham, Mass.

Info: www.yankee equipment.com

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Statewide Laundry Equipment Spring Road Shows 14 Tampa, Fla. 15 Orlando, Fla. 21 Hialeah, Fla. Info: www.statewide laundry.com

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MAY 3 Equipment Marketers 25th Annual Trade Show & Service Seminar Cherry Hill, N.J. Info: www.equipment marketers.net/events/ 16-17 Coin Laundry Association Excellence in Laundry Conference Naples, Fla. Info: https://www.coin laundry.org/events/ excellence-2018 ACO Visit www.americancoinop. com and click “Calendar” for these and other event listings!

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COIN-OP 101

REWARD THOSE WHO GO THE EXTRA MILE You want your laundry’s staff to be helpful, pleasant and attentive

Tom Fleck

Years ago, our business was different. Unattended stores were prevalent and owners may have focused more on emptying coin boxes and less on the customer. But that was a long time ago.

Stores today are quite different. They are aesthetically more pleasing – warm colors, bright lighting, innovative flooring solutions, better seating, and the list goes on. The vended laundry has gone from a utilitarian store to a full-on laundry experience.

However, while floors and seating might contribute to an experience, they aren’t the hallmark of it. A good portion of that heavy lifting comes from staff and customer service. The “Starbucks experience” is framed by the service … that smiling, friendly face taking your order and the one calling your name at the end of the counter.

CREATING THE EXPERIENCE If you operate an attended store, are you delivering

a customer experience that matches the resources built into the laundry? The greatest equipment and décor likely aren’t enough to overcome a surly, unhelpful attendant.

Obviously, the goal is quite the opposite. We want staff to be helpful, pleasant and attentive. Creating that environment starts with good hiring. It extends into solid training, which is where some businesses miss the mark, and includes setting of expectations. This is foundational, the baseline to setting the stage for highquality customer service. However, it’s by no means where it stops. The great store owners strive for truly exceptional customer service.

RAISING THE BAR We all want to be noticed, recognized and rewarded for going that extra mile and doing things the right way. But how do we spur those around us to go just as far … or farther? Some will do it naturally – those are

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the ones who truly grasp the concept of customer service. There are also those who are good in dealing with clients, but pushing beyond the basic expectation is not something they will do on their own. Then there are those who just don’t get it; don’t want to be there; have one eye on their phone and the other out the door.

The latter group likely isn’t going to change, so it’s best to focus on the first two groups and hopefully identify that last group before they damage your business.

Owners early on should start by leading by example when they are in the store. Open doors for customers when you see someone coming in and offer to help them take their basket/bags to their car. These types of actions can go a long way toward inspiring the same behaviors in employees. But that’s not where it stops.

BUILDING IN INCENTIVES To be appreciated, we need to know we are being “seen.”

So rewarding staff for going the extra mile can be as simple as pulling them aside and letting them know you appreciated their action. The seemingly basic “thank you for coming in when Staffer XYZ called in sick” or “I saw that you helped that senior citizen to their car and I want you to know I appreciate it” is a no-cost reward that can have a nice impact on the attitude of the employee, as well as their willingness to continue the action. The name of the game is positive reinforcement.

Ed Ellis, who owns 1 Clean Laundry in St. Cloud, Fla., has built an incentive program around his successful wash-dry-fold (WDF) business. He sets a store goal and attendant goals for pounds of laundry processed. When employees reach their goals, they are awarded gift cards for the business of their choosing.

Staff is kept up to date with “thermometer” progress charts posted in the office on a bulletin board.

This incentive program has worked well in team building as well as the WDF end of the business, which was up 40% last year, he says.

This example shows that building a rewards program with incentives can deliver solid results. Best of all, with some of today’s robust laundry management systems, it only takes a few mouse clicks to pull WDF numbers and break them down by staff member. In the past, this may have been a manual process or one that involved multiple systems (payment and machine operations), which may have kept owners from building in rewards programs. Technology, however, is making it easier than ever by putting all the information in one place.

That same technology has enabled even more robust incentive programs, where employees could earn rewards points for not only WDF performance, but also for signing up customers for loyalty programs. All this information is easy to collect and monitor within such systems.

ADDITIONAL METRICS A good old-fashioned comment card box is another simple and easy way to gather feedback on employees when you can’t be onsite. But electronic communication has put comment card boxes at your fingertips.

Facebook page comments, Yelp, and Google reviews are also key spots to pull great employee stories and feedback to reward behaviors (or discover opportunities for additional training). ▲

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COIN-OP 101

FOCUS ON REWARDS While structured incentive programs with clear rewards are no doubt effective, don’t underestimate the unexpected, on-thespot rewards. Keep a stack of $10 gas, movie theater or other gift cards on hand to reward someone for going the extra mile.

Something as simple as a staff pizza party or catered lunch is inexpensive, but sends a nice message about how you value their service. Did somebody come in early to take care of some necessary tasks? Perhaps you can stop in with a cup of coffee from their favorite shop.

Some owners allow staff to do personal laundry at the store once a week. If that isn’t already a staff perk, use it as a reward for providing excellent service. A shirt/sweatshirt with the laundry logo on it, or anything you think the employee would appreciate can send a positive message to a valued employee.

FINAL THOUGHTS Customers normally have several options of places they can take their laundry. The owners we are working with are committed to building Laundromats that are a step above those of

competitors in their area. The days of needing to be the lowpriced leader are gone. We have seen that a large percentage of customers are willing to pay a little bit extra for a better laundry experience.

Delivering that experience has to be an all-in venture and include the equipment functionality and wash options, store design and décor, amenities and staff that reinforces a true commitment to customer service. Quality customer service starts with good hiring practices and training, leading by example and rewards/incentives for delivering above and beyond.

Utilizing the functionality of some of today’s advanced laundry management systems can help streamline structured employee incentive programs with easy access to WDF numbers and loyalty program signups. However, don’t forget the impact of those simple on-the-spot rewards. They can go a long way in perpetuating one employee’s great service and sparking the same commitment in other staff members around them.

ACO Tom Fleck is senior regional sales manager for Speed Queen Commercial. He can be reached at tom.fleck@alliancels.com.

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NEWSMAKERS

For more than 20 years, Aadvantage has been under the conENVIROSTAR TO ACQUIRE AADVANTAGE LAUNDRY SYSTEMS Miami-based laundry equipment distributor EnviroStar Inc. (EVI) tinuous ownership and leadership of Mike Zuffinetti, with the has executed a definitive asset purchase agreement to acquire addition of Ryan Smith in 2010. Under their direction, and with substantially all assets and certain liabilities of Zuf Acquisitions the dedication of Aadvantage’s 49 employees, Aadvantage is a I LLC, doing business as Aadvantage Laundry Systems and Sky- “strong base” under which EVI expects to generate future growth in the Southwest and beyond.

Rent LP (collectively “Aadvantage”).

Based in Dallas, Aadvantage is a prominent distributor of laundry products and a provider of installation and maintenance services to the new and replacement markets of the commercial and vended laundry industry.

Payment of the $17 million combined purchase price will be split evenly between cash and shares of EVI common stock. Publicly This logo with a cleaner, more modern design is one of several new changes that are part held EVI expects the addition of Aadvantage to be accretive to of Alliance Laundry Systems’ new brand position. (Image: Alliance Laundry Systems) its current fiscal year ending June 30, 2018. The transaction is expected to close within 60 days of the mid-December announce- ALLIANCE LAUNDRY SYSTEMS UNVEILS NEW BRAND POSITION Alliance Laundry Systems, a provider of commercial laundry ment, subject to customary due diligence and closing conditions. andEquipment solutions, has and unveiled a new mission statement, Consistent with EVI’s operating philosophy, Aadvantage will products Contact us today for new Parts. operate as a subsidiary of EVI from its present locations, under its logo and website, all designed to position the company’s preEnd of year equipment and financing deals. Lock in 2017 pricing. Call us for information. existing leadership, with all its employees, and conduct business as mium brands—Speed Queen®, UniMac®, Huebsch®, IPSO® and Call 800-362-1900 to Schedule Your Service Appointment (continued on page 40) it has historically.

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Vend-Rite ...................................................5 FEBRUARY 2018 AMERICAN COIN-OP 39

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NEWSMAKERS

(continued from page 37) Primus®—as global industry leaders.

CEO Michael Schoeb describes the brand direction as “refreshing our image to reflect the world-leading company we are.”

Alliance’s new mission statement reads, “We make the world cleaner as the premier provider of laundry solutions. We deliver leading performance through our exceptional team, unmatched quality and our commitment to innovation.”

The “leading performance” brand position provides a vision for the entire company moving forward, says Alliance, from product research and development to customer service, and affirms a commitment to delivering the best products and service to its partners, who will then do the same for their customers.

On the surface, the industry will notice an updated brand logo with a cleaner, more modern design. Alliance says the new look illustrates its place as an industry leader.

Finally, Alliance’s new website showcases a clean, user-friendly experience that is consistent with the design of its laundry products, the company says. The site features improved navigation enabling visitors to access information more easily, and is available in French, Spanish, Italian, Chinese, Czech, Brazilian Portuguese, and Arabic.

LAUNDRYLUX SHAKES UP EXECUTIVE SUITE WITH PROMOTIONS Laundrylux, the North American supplier of Electrolux and Wascomat commercial laundry equipment for Laundromats and on-premises laundries, made a series of important management changes effective Jan. 1.

CEO Neal Milch has assumed the role of executive chairman of the Laundrylux Board of Directors.

“The world is changing incredibly fast,” says Milch, “and my highest value to the business is to look past the horizon to understand Neal Milch what is coming, and working with our senior management team to develop sustainable growth strategies across all brands and channels.”

Under Milch’s tenure as CEO, Laundrylux says it developed an expanded portfolio of brands and products for more market segments than ever before in its history while multiplying revenues.

President John Sabino is now CEO. “He is smart, creative, dedicated, and exhibits the values and ethos we have always embraced as a company,” says Milch. “He is respected by everyone he does business with, and he will lead Laundrylux to even greater John Sabino success.”

“Neal initiated this change almost a year ago, and it is testament to his selflessness in always putting the needs of the business first,” says Sabino, who became president in 2014 after having served as 40

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chief operating officer and manager of vended laundry sales. “I look forward to the challenges of being CEO and am happy that Neal is continuing his full-time participation as an out-of-the-box innovator, mentor, and friend.”

Sabino’s first action as CEO was to announce the appointment of Cody Milch as president. Milch joined the company in 2013 and most recently had served as vice president of OPL sales and the PLUS program.

“It’s always a bit tough to come in as the son of the CEO and grandson of a legendary founder, but Cody has demonstrated remarkCody Milch able strength, insight, work ethic, and leadership over the past four years,” Sabino says. “He has fully earned this promotion and enjoys the complete confidence of our employees, partners and customers.”

“John has made being president of Laundrylux look easy,” says Milch, “but I have tremendous respect for the talent and hard work it takes to succeed. I appreciate the opportunity to build on this legacy and to lead digitization of our enterprise.”

Milch says Laundrylux is deploying integrated software platforms to support long-term growth initiatives, and professionalizing and scaling every aspect of its business.

In his first act as company president, Milch announced the appointments of Michael Martino as vice president of finance and James Fair as chief financial officer.

“We now have by far the strongest management team in our history,” says Julia Milch, a member of the Laundrylux Board of Directors. “This team can and will execute the strategic plan they have developed to leverage the tremendous products and technologies in our portfolio.”

LOOMIS BROS. EQUIPMENT APPOINTS LAMONS PRESIDENT/COO Laundry equipment distributor Loomis Bros. Equipment Co. has appointed Matthew Lamons its president and chief operating officer.

Lamons takes over for second-generation owner Dale Loomis, who has assumed the position of chairman and CEO. Since joining Loomis Bros. in 2007, Lamons has served as director of vended laundry sales, territory sales consultant and, most recently, sales and marketing manager.

“Matt has excelled in every position he’s Matt Lamons had, bringing in new business by growing our vended laundry sales and securing new local and regional OPL chain accounts,” says Dale Loomis. “Matt has shown a strong commitment to customer satisfaction and is committed to positioning our company as the service leader in our marketplace.”

Lamons has a bachelor of science degree in business administration from the University of Central Missouri and an MBA from Maryville University.

ACO www.americancoinop.com

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“THE IRONER PAID FOR ITSELF IN THE FIRST YEAR. NOW IT PAYS FOR ITSELF EVERY MONTH.” – Jeff Gardner, the “Laundry Doctor”, Sel-Dale Laundromat, St. Paul, Minn.

You outlay a lot of money in store development, permitting, construction and equipment. Make that investment as fruitful

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as possible by adding commercial laundry services to your store’s tagline. Become a retail laundry services enterprise …

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Launch Wash/Dry/Fold • Maximize usage of current equipment & employees during slow hours • Cater to young professionals & families

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Designate Space for Commercial Work • Add staff to process full-service work • Designate space to process & store commercial work • Establish pickup & delivery services • Cater to small commerical businesses

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Install On-Premise Washers & Dryers • Harness programmability of on-premise washers • Easily clean and process hard-to-clean oils & stains • Increase commercial accounts business

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Add a Flatwork Ironer • Add capability to finish sheets and table linens • Pursue new customers needing ironed bed & table linens • Take on larger accounts

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BOOST PROFITS. ADD COMMERCIAL LAUNDRY SERVICES. Call (800) 256-1073 to receive your FREE Vended to Commercial Laundry Guide.

INNOVATIVE LAUNDRY SOLUTIONS www.cgilaundry.com • (800) 256-1073

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