American Coin-Op - April 2018

2017-2018 OF THE

I N S I D E : J UI LN YS I 2D 0E 0: 5A P R I L 2 0 1 8 KISMET IN KISSIMMEE: WEAVING FATE, FORTUNE & FUZZ

INDUSTRY MISCONCEPTIONS: SEPARATING MYTH FROM REALITY

COIN-OP 101: IF I HAD IT TO DO ALL OVER AGAIN...

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CONTENTS APRIL 2018 VOLUME 59 ISSUE 4

COVER STORY

2017-18 STATE OF THE INDUSTRY If you’ve been curious about what business conditions, sales and utilities costs were like for vended laundry owners across the country in 2017, wonder no longer. Our annual State of the Industry survey reveals much.

Did your store’s performance measure up favorably to that of your peers?

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(Cover image: ©iStockphoto/CatLane)

INSIDE 18 GOIN’ WITH COHEN: KISMET IN KISSIMMEE

Take two Chicago siblings, hit the restart button in Florida, introduce an iconic laundry operator from back home, then toss in some dryer lint and a check for a hundred grand and you’ll begin to understand where Bob and Donna Wallner have been.

28 SEPARATING MYTH FROM REALITY

New investors who have a lot at stake may pin their plans for success on statements they believe to be industry maxims when they could actually be a bunch of malarkey. How can you make sure the info you’re using in making your self-service laundry business decisions is based in fact?

COLUMNS 36 CREATE A FEW INTERESTING TOUCHES Just as you hope your home is comfortable and welcoming, so you want your Laundromat to be people-friendly. Howard Scott offers some suggestions for adding an intriguing touch that might make passersby take notice.

DEPARTMENTS 4 31 34 35

VIEWPOINT DISTRIBUTOR EVENTS PRODUCT NEWS WEB UPDATE

38 CLASSIFIEDS 39 AD INDEX 40 NEWSMAKERS

32 COIN-OP 101: IF I HAD IT TO DO

ALL OVER AGAIN...

Veteran laundry owner Tim Wuethrich looks back at his 15 years in the industry and shares what he would have changed about his stores if given the chance.

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18 A CLOSER LOOK Donna Wallner shows off the flagship storeinspired lint art that earned her and brother Bob top prize in an industry competition.

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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

CHOCK-FULL OF DATA

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

MAKE THE MOST OF MEATY METRICS I doubt you’ll be surprised to learn that I believe every issue of American Coin-Op brings you information that proves essential to running and growing your self-service laundry business.

But among the dozen issues we are publishing this year, I think this one may be the most valuable. Why? you ask.

Because it contains our annual State of the Industry Survey report, chock-full of 2017 data and 2018 forecasts you can use to measure the performance of your business against others.

Analyzing survey results received from qualified respondents based around the country, we take a look at 2017-18 business conditions, equipment purchases, vend prices, turns per day, and much more.

Using these meaty metrics, it’s easy to see how you stack up against your peers. Now, after taking a hard look at the statistics, you might not like parts of the picture that our numbers paint, but that’s better than being in the dark about your business performance, isn’t it?

The State of the Industry Survey report opens on page 8.

THE AMERICAN COIN-OP PODCAST: EPISODE TWO Our podcast is getting some good buzz from the industry, so I hope you’re ready for Episode 2, which is posted now for your listening pleasure. In it, longtime tax writer Mark E. Battersby and I review some of the key points of the Tax Cuts & Jobs Act and discuss how your business might be able to take advantage of its benefits.

Our podcast is available on our website—https://american coinop.com—or you can subscribe at Apple iTunes or Google Play.

Give it a listen!

Bruce Beggs Editorial Director

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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 4. 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.

www.americancoinop.com

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2017-2018 STATE OF THE INDUSTRY

Arrow Points Up for Vended Laundry, Annual Analysis Shows MORE THAN 77% OF STORE OWNERS REPORT BOOST IN 2017 SELF-SERVICE BUSINESS

By Bruce Beggs, Editorial Director

I

’m sure you chart the course of your self-service laundry business month by month, but wouldn’t you like to know how your store measures up to others in the industry? Did you have a “good” year or a “bad” year in 2017, comparatively speaking? Is your pricing strategy in line with others?

The answers to questions like these and more can be found in American Coin-Op’s annual State of the Industry survey, which offers store owners and operators a valuable opportunity to compare their operation to others in the industry.

This year’s survey focused on 2017-18 business conditions, pricing, equipment, common challenges, turns per day, and utilities cost.

When asked about their 2017 business results, respondents were given the opportunity to state whether their results were up, down or unchanged. This is a departure from surveys compiled in 2011 and earlier, when respondents were asked only if their business was up or down. Keep this in mind as you’re making comparisons to previous years’ results.

The survey was an unscientific, online poll of American Coin-Op readers who operate stores. Some percentages may not equal 100% due to rounding or other factors.

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(Photo: © iStockphoto/CatLane)

AUDIENCE BREAKDOWN Before getting into the dollars and cents, let’s examine the characteristics of those polled and their operations.

Roughly 54% of respondents own just one self-service laundry, while 45.9% are multi-store owners (30.6% of total respondents own two or three stores, 15.3% own four or more stores).

Approximately 47% of respondents own their store space, 40.3% rent their store space, and the remaining 12.5% say the arrangement varies by property.

Fully attended stores among the audience account for 30.6%. Roughly 31% are par-

 Survey Snapshot

■ Average business increase, 2017:

9.4%

tially attended, and 26.4% are unattended.

Among the remaining 12.5%, the arrangement varies by store.

More than 83% of laundry owners employ either full- or part-time workers in their stores. Roughly 58% of those respondents have four or more employees, while 21.7% employ two or three. The remaining 20% have only one employee.

On average, responding store owners have 1.7 full-time employees and 4.3 parttime employees (this calculation reflects averages by respondent, not by store).

Roughly 65% of respondents operate coin-only stores, 6.9% operate card-only stores, and 27.8% offer both, according to the survey results. The shares of card-only stores and so-called “hybrid” stores both increased from last year’s survey.

2017 BUSINESS VS. 2016 For 2017, 77.5% of operators say their overall vended laundry business increased from that of 2016. Specifically, these operators reported an increase in business (gross dollar volume) last year compared to 2016.

In our 2016-2017 survey, 61.1% reported an increase, while 71.4% reported seeing sales growth in the survey prior.

The average 2017 business increase was 9.4%, down from 11.2% in 2016. Other past average business increases were 9.6% (2015), 8.9% (2014), 9.6% (2013), 11.7% (2012), 11.5% (2011), 10.8% (2010), www.americancoinop.com

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 Survey Snapshot

■ 68.2% experienced higher drop-off service business (in gross dollar volume) in 2017

was down by a couple of percentage points, the share of store owners who enjoyed a better gross dollar volume than the prior year was more than 16 percentage points higher.

And the share of responding operators who saw 2017 business decline was 12 points less than 2016’s accounting, plus the average business decrease in 2017 of 6.7% was less than the 9.1% reported for 2016.

DROP-OFF DIRECTION

7.9% (2009) and 14% (2008).

Following is a breakdown of 2017 business increases (the figures relate to those reporting increases, not all respondents): • Operators with a business increase of less than 10%: 51.0% • Operators with a business increase of 10-14%: 29.1% • Operators with a business increase of 15% or more: 20.0% Just shy of 10% of operators faced a decrease in business (in gross dollar volume) in 2017, down from 22% in 2016.

The percentage was 17% in 2015, 29% in 2014, 25% in 2013, 30% in 2012, 35% in 2011, 58% in 2010 and 59.8% in 2009.

The average business decrease in 2017 was 6.7%, down slightly from the 9.1% decline reported for 2016. Prior average decreases were 16.3% in 2015, 6.6% in 2014, 8.7% in 2013, 9.5% in 2012, 10.2% in 2011, 11.2% in 2010, 13.7% in 2009 and 14.3% in 2008.

Here’s a closer look at 2017 business decreases (again, the figures relate to those reporting decreases, not to all respondents): • Operators with a reduction of less than 10%: 66.7% • Operators with a reduction of 10-14%: 33.3% • Operators with a reduction of 15% or more: 0% About 13% of respondents say 2017 business was unchanged compared to 2016 business.

Based on these figures, the self-service laundry industry remains strong, on average. While the average business increase 10

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Drop-off service—taking advantage of society’s desire for convenience—ticked upward again in 2017. Roughly 68% of operators reported that drop-off service business (in gross dollar volume) increased for them in 2017, compared to 61% in 2016, 52% in 2015 and 18% in 2014.

The average increase in drop-off service business last year was 26.1%, up from 2016’s 18%, 2015’s 13.7% and 2014’s 12.3%.

Roughly 16% of respondents saw a decrease in drop-off business, which is about 10 percentage points more than 2016’s 6.5%. The percentage was 15% in 2015 and 27% in 2014.

The average decline in drop-off service business in 2017 was 7.8%, compared to 15% in 2016 and 16% in 2015. Previous average declines were 11.3% in 2014, 9.0% in 2013, 18.1% in 2012 and again in 2011, 18.8% in 2010, and 24.2% in 2009.

Roughly 16% of respondents say their 2017 drop-off business was unchanged from the previous year. That’s compared to 35% for 2016, 36% for 2015 and approximately 55% for 2014.

DROP-OFF PRICING Current drop-off pricing (in dollars per pound) ranges from 75 cents to $2.45, based on the survey responses.

Following is a breakdown of the most popular drop-off service prices (per pound), followed by the percentage of operators who use them: 1. $1.25 (25.6%) 2. $1 (20.5%) 3. $1.50 (7.7%) Overall prices for drop-off service remain consistent with previous years’ figures. In total, 14 different drop-off prices were reported in this year’s survey (which matches last year’s poll).

Roughly 54% of operators who took the annual survey offer drop-off service, compared to the 55% who responded to

last year’s poll.

COMMERCIAL VENTURES Among store owners who offer commercial laundry services, 41.9% reported that business (in gross dollar volume) increased for them in 2017. The average increase was 22.7%.

About 10% of respondents saw a decrease in this category. The average drop in business was 6.0%.

Roughly 55% of respondents say their 2017 commercial laundry business was unchanged from the previous year.

VENDING VIABILITY Vending sales business (in gross dollar volume) for 2017 ticked upward when compared to 2016 reporting. Roughly 60% of respondents reported their sales increased in 2017, a sizable increase from the 38% of respondents in this group for 2016. Approximately 12% reported a decline in vending sales, compared to 19% for 2016. Operators reporting no change in vending sales for 2017 accounted for 28.1%, compared to 44.8% in the prior year’s survey.

The average vending sales increase was 12.7%, up slightly from 2016 (11.9%).

The average decrease in 2017 was 12.3%, compared to 10.3% reported for 2016.

HOW MUCH FOR A WASH? Respondents were also asked to report how much they charge for a variety of washes.

 Survey Snapshot

■ Most popular 30-pound front loader prices, current: 1. $4 or $4.25 (tie) 3.$3.25 or $4.50 (tie)

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 Survey Snapshot

■ 44.4% have raised washer prices, or intend to by end of year

Approximately 61% of operators offer top loaders at their store(s). The price range for a top-load wash is $1.25 to $3.75.

Here are the most popular top-load prices, followed by the percentage of respondents using them: 1. $2 (25%) 2. $2.50 (15.9%) 3. $2.75 (13.6%) 2018 prices for a top loader mirror the most popular prices of last year, as the $2 price is once again the most popular for a top-load wash. The $2.50 and $2.75 prices also finished two-three in 2017.

The most popular prices for some of the small front loaders are: • 18 pounds: $2.50 • 20 pounds: $2.75 • 25 pounds: $3 or $3.50 (tie) The lowest price reported in this group is $1.75 (18-pound washer) while the highest price is $4.25 (recorded for both 20 pounds and 25 pounds).

The price range for a 30-pound wash is $2.75 to $5. Following are the most popular 30-pound prices, along with the percentages of operators who use them: 1. $4 or $4.25 (tie, 17.9% each) 3. $3.25 or $4.50 (tie, 12.8% each) The price range for a 35-pound wash is $4 to $5.50. Following are the most popular 35-pound prices, along with the percentages of operators who use them: 1. $4 or $4.50 (tie, 27.2% each) 3. $4.75 (18.1%) The price range for a 40-pound wash is $3.75 to $7. Following are the most popular 40-pound prices, along with the percentages of operators who use them: 1. $4.50 (23.1%) 2. $4.75 (13.5%) 12

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3. $5 (9.6%) The price range for a 50-pound wash is $5 to $7.50. Following are the most popular 50-pound prices, along with the percentages of operators who use them: 1. $6 (28.6%) 2. $5.50 (23.8%) 3. $5.75 (19.0%) Prices for a 55-pound wash currently range from $5 to $9.

Of all the washer capacities, the 60-pounder has the broadest pricing, with 15 different base prices listed by respondents (by comparison, in last year’s survey, it was the 40-pounder).

The price range is $5 to $9.50. The most popular price for a 60-pound wash is $6.50 (charged by 25.0%), so there’s been no change there in the last three years. Second is $7 (13.6%), and there is a tie for third between $6.75 or $8 (11.4% each).

Prices charged by operators for a 75-pound wash today range from as low as $7.75 to as high as $12. There is no clear No. 1 choice among this year’s respondents.

The most popular price for an 80-pound wash is $8.50 (26.1%), followed by $8 (17.4%), then a tie between $8.75 or $10 (8.7% each). Prices charged by operators today range from as low as $6.25 to as high as $11.

Prices charged by operators for a 100pound wash today range from as low as $7.75 to as high as $12.75, not all that different from those reported in the 80-pound category. There is no clear No. 1 choice among this year’s respondents.

Operators who respond to our survey vary year to year, which may reflect upon the variety of prices reported.

Respondents were asked to provide prices for front-loaders of 14 different capacities. However, no prices were logged for 125- or 150-pound washes.

DRYER PRICES Operators were asked to provide their current prices for their dryers as “25 cents for X minutes.” As in previous years, a variety of responses was reported.

Most popular among this year’s respondents—at 28.4%—is 25 cents for 6 minutes (also the top choice in last year’s survey).

Second is 25-for-5 (20.9%), and third is 25-for-7 (19.4%).

if they have already raised washer and/or dryer prices in 2018, or if they plan to do so before the end of the year.

Regarding washer prices, the majority of respondents (44.4%) say they have already raised prices, or intend to do so, by the end of the year. Nearly 39% say they have no such plans, and 16.7% are undecided.

Supporting their decision to raise washer prices, many operators say they implemented (or will implement) the increase to cope with higher costs, among them utilities, rent and labor. Others say it was done after they had upgraded equipment.

Regarding dryer prices, 73.6% of respondents say they have not raised prices, nor do they plan to do so by the end of the year.

Roughly 17% say they have such plans, and 9.7% are undecided.

PURCHASED IN 2017 Fifty percent of respondents purchased at least one piece of equipment (washer, dryer, water heater, vending machine or other) in 2017, down from 63% in 2016.

Following is a breakdown of 2017 purchases. (Editor’s note: Percentages do not total 100% because some buyers purchased equipment in multiple equipment categories.): • 6.9% of respondents purchased at least one top loader. The average purchase was 16.8 machines.

(Editor’s note: This calculation does (continued on page 16)

 Survey Snapshot

■ 50% purchased at least one piece of equipment (washer, dryer, water heater, vending machine or other) in 2017

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 Survey Snapshot

■ Average turns per day, current: Top loaders: 3.2 Front loaders: 3.9

(continued from page 12) not include a 460-machine purchase by a multi-store owner).

• 38.9% of respondents purchased at least one front loader. The average purchase was 11.1 machines.

• 22.2% of respondents purchased at least one dryer (regular or stack).

The average purchase was 14.1 machines.

• 18.1% of respondents purchased a water heater.

• 13.9% of respondents purchased a vending machine.

Coin/bill changers, seats, folding tables, security cameras and an HVAC system were also listed as having been purchased.

2018 SHOPPING LIST Operators were asked if they purchased, or plan to purchase, new equipment this year.

Roughly 38% of respondents plan to add

 Survey Snapshot

■ Average utilities cost (% of gross), 2017: 20.3%

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some type of equipment (washer, dryer, water heater, vending machine or other) to their mix, or have already done so, in 2018.

By comparison, in last year’s survey, a similar share had added equipment during the year or planned to do so.

Following is a breakdown of purchases operators have already made in 2018, or plan to make by the end of the year.

(Editor’s note: Percentages do not total 100% because some buyers purchased/plan to purchase equipment in multiple equipment categories.): • 11.1% of respondents have purchased, or plan to purchase, a new top loader this year. The average purchase is (or will be) 6.1 machines.

• 25% of respondents have purchased, or plan to purchase, a new front loader this year. The average purchase is (or will be) 4.2 machines.

• 18.1% of respondents have purchased, or plan to purchase, a new dryer this year. The average purchase is (or will be) 10.8 machines.

BIGGEST CHALLENGES What do you think are the biggest challenges facing your self-service laundry?

American Coin-Op provided a list of eight, plus the opportunity to write in “other” choices, and asked operators to select all that they thought applied.

Here are the results (remember, respondents could pick any or all from the list): 1. High cost of utilities (55.7%) 2. Maintenance costs (41.4%) 3. Finding/keeping good employees (32.9%) 4. Labor costs (28.6%) 5. Equipment abuse/vandalism, or rental costs (tie, 24.3%) 7. Too much competition (22.9%) 8. Other (18.6%) 9. Poor industry image (8.6%)

TURNS PER DAY Turns per day refers to the number of cycles (turns) that each of a store’s machines completes daily. For each machine class (top loader or front loader), you can calculate it using total cycles for a one-week period divided by total number of machines in the class, then dividing by seven.

Currently, the average turns per day for top loaders amongst respondents is 3.2, down slightly from last year’s survey (3.6).

For front loaders, the number is 3.9, up from last year’s survey (3.8).

UTILITIES COST Operators were asked about their 2017 utilities cost (as a percentage of gross).

The responses ranged from 5% to 40%.

Collectively, respondents paid an average of 20.3% for utilities (as a percentage of gross), down slightly from 21.7% last year.

The most common individual response was 25%. Whereas 38.4% of respondents reported a utilities cost of 20% or less last year, 51.7% reported the same this year.

For many operators, utilities account for their largest store expense; 83.9% of respondents place it either first or second on their list of five common expenses (rent, utilities, payroll, insurance, and loan payment on new equipment). Meanwhile, insurance is the smallest store expense, numbered four or five on the list by 70.1% of those polled.

FORECAST FOR 2018 Roughly 60% of respondents are optimistic that their 2018 total business will be better than 2017’s. About 33% expect business to be about the same, while roughly 7% say it will not perform as well in 2018 as it did in 2017.

ACO

 Survey Snapshot

■ Operator outlook: 2018

59.7%

expect business to increase in 2018

33.3%

expect business to be about the same as 2017

6.9%

expect business to decrease in 2018

www.americancoinop.com

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GOIN’ WITH

COHEN

Kismet in Kissimmee

Wallner siblings’ odyssey weaves fate, fortune and fuzz

T

by Laurance Cohen

ake two Chicago siblings, hit the restart button in Florida, introduce an iconic laundry operator from back home, then toss in some dryer lint and a check for a hundred grand and you’ll begin to understand where Bob and Donna Wallner have been. Call it kismet in Kissimmee.

This brother-sister duo teamed up in this city best known as a gateway to Disney and home to the largest rodeo east of the Mississippi. Mickey might have the Magic Kingdom around these parts, but the Wallners have Coin-a-Magic Laundromat.

Here, inside a rejuvenated vintage-era store, hangs a portrait symbolizing both the tapestry of a tightly woven coin-op community and the pair’s own odyssey — artwork that captured the $100,000 top prize last year in a Speed Queensponsored contest.

The pillowy storefront rendering —

right down to the Pepsi machine’s redwhite-and-blue logo — is made entirely of colorful dryer lint that Donna pieced together as a labor of love, cheered on by family and friends. Gaze at the fuzzy art and the picture of how she and her older brother found success in the industry comes into focus.

‘MY PARENTS THOUGHT I WAS NUTS’ For Bob Wallner, coin-ops held a special place ever since high school when he and a close pal would take time off from tinkering with race cars to stop in stores operated by his friend’s grandfather on Chicago’s North Side. There, he’d lend a hand fixing broken machines, take on a bearing job or two, and

ride shotgun on collection days.

By age 25, he took his friendship to a partnership: “When I saw my buddy taking all the quarters out of the machines, all I kept thinking was, ‘I’m getting into this business.’ My parents thought I was nuts,” Bob, now 62, recalls.

Donna stayed close to the family’s commercial printing firm, working alongside their dad and becoming adept at business accounting and customer relations — skill

Second installment of a two-part series on unique family ventures

This colorful, fluffy portrait came to life when lint from the dryer bins at Coin-a-Magic Laundromat was set aside and methodically glued into place on canvas in Donna Wallner’s dining room. (Photos: Laurance Cohen) 18

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Donna Wallner shows off her flagship store-inspired lint art while brother Bob holds up some remnants from the project that earned the Florida operators top prize in an industry competition. www.americancoinop.com

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sets that would play an even bigger role later.

With laundry pulling in some coin, Bob branched out to start a glass business.

The glazier work offered a new discipline where he developed a critical eye for space planning and restoration.

Both embraced an entrepreneurial spirit growing up. As kids, Donna set up lemonade stands while her brother hawked sweets.

“At grammar school, I’d save my money and go out at lunch to buy candy at the store and sell it for double at school,” Bob remembers.

The two eventually got together when Bob’s coin-op family and his real one transitioned. By 2001, the aging patriarch of the joint laundry ventures was selling off stores. Over at the printing house, two generations were preparing to pull up stakes and begin a new life in Florida.

Still in his prime, the elder sibling was convinced that greener pastures laid ahead for he and his own wife amid palm trees.

Bob scoured local newspaper business opportunity ads and spotted a coin-op listing in the Sunshine State. When he phoned, the person on the other end of the line was none other than the wife of George Fancher, the originator of the World’s Largest Laundromat in the Chicago suburb of Berwyn.

The couple, who had themselves cashed

out and headed south, were putting out feelers back home for interested parties to purchase some laundry holdings they had acquired during semi-retirement. Bob came to know the renowned mega-store operator early on through his partners and the two quickly reconnected after a long hiatus.

Fancher had the perfect starting point: the 2,500-square-foot Coin-a-Magic in the heart of the state. But there was a wrinkle.

Bob had loose ends to tie up in Chi-town and had Florida’s Gulf Coast — not its interior — on his radar. So he did what any big brother would do and asked his sister, who was packing up with their parents bound for Kissimmee, to be a partner.

SPLITTING THE HEAVY LIFTING Coin-a-Magic had undergone a rejuvenation and required minor tweaking to give it the Wallner touch. Donna admits running a coin-op as a novice in an unfamiliar market had a bit of a learning curve. The biggest challenge: handling over the counter bundles, a deviation from Chicago’s once-dominant self-service-only model.

With both settled down in different parts of the state and the lone Kissimmee coin-op building trade, the duo closed on a second of Fancher’s stores, this time on the western Gulf Coast.

Coin-a-Magic’s classic storefront in Kissimmee came to symbolize the siblings’ path to the American Dream. www.americancoinop.com

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Two other outposts — not under the Fancher franchise and located further down the Gulf in North Fort Myers — were brought online, spreading holdings over a 200-mile stretch. “He wanted something to do closer to his house,” Donna chuckles, tracing the chain’s westward migration. “Once he drove home, it was me over here.”

They each assumed daily oversight for two stores and split the heavy lifting for all four, with Donna handling the paperwork and Bob carrying a toolbox. Strong kinship supported the long-distance clothesline.

“You know each other and can trust them. We can rely on each other and know how the other person works. We grew up together,” Donna stresses, before adding with a grin, “I know when he’s serious and when he’s goofing around.”

SHINING EXAMPLE OF SUCCESS The immaculate Coin-a-Magic is a shining example of the Wallners’ success.

The 50-foot-by-50-foot freestanding building enjoys both front and rear access, meaning fewer footsteps to the 47 washers and 46 tumbler pockets — (continued on page 22)

Coin-a-Magic’s blue-and-gold macaw mascot Peanut came as part of the store package and has a bird’s-eye view of customers laundering.

APRIL 2018 AMERICAN COIN-OP 19

3/13/18 11:43 AM

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.

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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

ACO StandardSpread.indd 1 Amer Coin-Op Oct 2017 2pg ESD ad.indd 1

9/15/17 9:40 AM

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.

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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

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ACO StandardSpread.indd 2

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

GOIN’ WITH

COHEN

New flooring, inspired by rustic wood planks above the dryers, was installed at the Kissimmee venue last year. perch, Peanut peers out as the wash day crowd maneuvers among gold-tiled bulkhead risers and dryer banks showcasing laundry memorabilia accented by mirrors and rustic wood planks. Even the building exterior is dressed up with hand-painted murals of Kissimmee life during simpler times.

Preserving the store’s kitschy side while updating equipment was the Wallners’ way of showing respect for the man who cobbled together storefronts to assemble the world’s biggest wash-and-dry up North, and later brought local flavor to a Southern rodeo-town laundry. The siblings say keeping the ornaments intact was looked upon favorably by Fancher

and helped cement their relationship. “We want to keep his legacy,” Donna emphasizes. “Some of those things will never change.”

When Fancher died, his widow Beverly was left saddled with a rented-out laundry in nearby Orlando that was spiraling out of control. She reached out to the Wallners, who stepped in, consulted with their longtime sales rep Rusty Parks, and set out to revitalize the 3,600-square-foot venue.

Like Kissimmee, the laundry bore Fancher’s signature motif, but this time around housed a pair of macaws, siblings Jack ’n’ Jill. While the birds may have been in fine feather, the washer lineup ▲

(continued from page 19) all upgraded under their stewardship.

A line of four 60-pounders and a single 80-pound washer stand just inside the back door and within close proximity to three back-to-back bulkheads containing rows of 20- and 30-pound front loaders along with a half-dozen top loaders. The store’s 1,300 pounds of combined wash volume is backed by nearly 1,500 pounds of stacked, multi-load tumbler capacity.

While Bob admits Fancher had a penchant for packing in equipment, traffic flows remarkably well. Venders and changers are recessed into perimeter walls, half-moon-shaped trash cans hug the underbelly of rounded folding tables, and a compact hand sink is shoehorned between twin, well-appointed washrooms.

The front call station serves as a hub for over-the-counter transactions, as well as a vantage point for both staff and the laundry’s blue-and-gold macaw mascot, Peanut. Having a feathered friend inhouse is just part of Coin-a-Magic’s magic, where homespun meets high-extract spin.

The iron on the floor might be stateof-the-art, but the décor is peppered with throwbacks to a bygone era. From his

The 2,500-square-foot Kissimmee flagship has been updated with new machinery and color-coordinated surfaces over the years while still retaining elements of its original design.

22

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GOIN’ WITH

COHEN wasn’t. To lure back patrons, new equipment and sprucing up the dual-storefront coin-op was job one.

With Crystal Clean Coin Laundry’s refurbishment complete, customers are now welcomed in by a wide, sliding power entryway leading to a modern array of 33 washers and 38 dryer pockets neatly trimmed with a golden perimeter and mirrors galore. Particularly eye-catching is the spacious folding area in the south half, where carpet softens both the floor and the bases of the custom-built islands.

It was this most recent project that would draw the Wallners into last year’s art contest, walking away with top honors and washing away a six-figure equipment financing note.

LEFTOVER LINT BECOMES TREASURE TROVE Donna held a fascination for lint art, but never pursued it due to time constraints. With the prospect of clearing the Orlando store’s debt with dryer debris, she put tumbler trash on the front burner and instructed staff to put aside colorful wads of fuzz when clearing machine trays.

“I pretty much had lint everywhere for weeks,” the artisan recalls, adding that pinned notes to her desk would announce

Coin-a-Magic’s décor is peppered with throwbacks to a bygone era, a signature design of previous owner and industry icon George Fancher, whose legacy lives on under the Wallners’ watch. finds. In two months’ time, she had a treasure trove of fluffy material to work with and approached her brother on the next move. Bob turned the talk to Kissimmee.

“This is what started us. We bought this store and built off of it,” he says.

Timing was critical as the two were toying with the idea to replace the classic facia sign with garden-variety channel letters. The plan was scrapped and the four panels refaced. Coin-a-Magic’s storefront — with its crown-shaped calling card and patriotic flags — would be replicated in lint and bring the siblings’ path to the American dream full circle.

An attractive, carpeted dryer area at Crystal Clean Coin Laundry boasts custom-designed folding island stations.

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Guided by an enlarged photo, Donna laid a blank canvas on her dining room table, drew out a rendering, and toiled nightly for weeks, piecing together the tiny clumps with a helping hand from family members and close friends.

Her tools of choice: tweezers, glue and a nail file. “You’d be surprised what you find in lint,” Donna says of the surgical removal of “the things you didn’t want.”

To fill color voids, attendants ran dryer loads of freshly washed items. “It’s not dyed. I bought a lot of towels,” Donna informs me, a comment that brings a smile to her brother’s face.

As the art piece took shape, her once skeptical partner was stunned. “It was unbelievable,” Bob recalls of seeing the work in progress.

Donna had trepidations to enter the competition and maintains she doesn’t consider herself artistic. One thing is for sure, they’ll never see lint the same.

“We look at it differently. It has a lot of value,” she says. Her brother nods in agreement and quickly interjects, “The lint drawers have always been worth money.

We always used to take lint out and find money. It kind of came around and this time it really was worth a lot.”

ACO Laurance Cohen crisscrosses the country seeking out the most unique vended laundries. He served as American Coin-Op editor in the early 1990s and currently operates Laundry Marketing Concepts based in Hallandale Beach, Fla. He can be reached at goinwithcohen@outlook.com. www.americancoinop.com

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“

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

ACO StandardSpread.indd 2

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How t

o asse

ss the

validit

y of c

ommo

nly sh

ared i

ndustr

y theo

ries (Image licensed by Ingram Publishing)

by Bruce Beggs, Editorial Director

E

very industry has its own set of “theories,” although not everyone is in agreement on them. Try operating your store a certain way and your distributor or even a fellow operator might chide you about your business plan, exclaiming, “You can’t do that!”

New investors who have a lot at stake may pin their plans for success on statements they believe to be maxims when they could actually be a bunch of malarkey, generally speaking.

There’s more information available to potential laundry investors and new store owners today than ever before, but how can you make certain the info you’re using to make your self-service laundry business decisions is based in fact? How do you separate the industry myth from reality?

American Coin-Op interviewed representatives from several equipment manufacturers about this issue.

“The good news is that there’s a ton of information out there, and the bad news is there’s a ton of information out there,” says Kathryn Rowen, North American sales manager for Huebsch. “One of the fantastic things about this industry is that there’s 28

AMERICAN COIN-OP APRIL 2018

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a general broad willingness of store owners, distributors, etc., for sharing best practices, lessons learned, etc.

“People like certain manufacturers, distributors, marketing techniques for different reasons — there isn’t one right answer to a question, it just depends on what each individual store owner wants and needs.”

“Do your homework. Store owners should vet the market, too,” advises Nick Koukourakis, senior product development manager for Whirlpool Corp.

Commercial Laundry, which also owns Maytag Commercial Laundry and ADC. “Do you know your audience? Are you fulfilling a need? How many stores will you be competing with? It doesn’t hurt to reach out to the community and put feelers out there—is the neighborhood open to a new store? Look to industry associations and trade media for additional information and research. In addition, local chambers of commerce are good resources for community information.”

“Check and double-check,” suggests Mark Schram, North American sales manager for Primus. “Looking at this question from an equipment company angle, verify what your distributor is telling you. If they are making ease of use, efficiency and ROI

(return on investment) claims, verify them with others in the industry. This means digging deeper. I liken this to the current news climate. Don’t feel that if you read a headline, you have the correct information about a news story. Same holds true for our industry. Dig deeper to understand who is putting the ‘news’ together—is there a bias?

Does it even make sense on its surface?”

“For potential investors, I would say rely on hard facts in the form of demographics reports, firsthand walk-throughs of stores in the market: their condition, pricing, how far away they are,” advises Tom Weisheipl, Midwest senior regional sales manager for Speed Queen. “New store owners should lean on the technology in their store for the details necessary to improve operations and spot trends. The goal is utilizing management/payment systems to make fact-based decisions.”

COMMON MISCONCEPTIONS What are some common misconceptions about owning or running a self-service laundry—such as “Running a successful laundry takes little to no work each week”—that you have heard during your career? “‘Absentee ownership’ is one,” says www.americancoinop.com

3/13/18 4:01 PM

Joel Jorgensen, vice president of sales for Continental Girbau. “‘All you have to do to own a laundry is open and close the doors, clean and collect the money’ is another.”

“I definitely hear that (little to no work) myth more than any other,” Weisheipl says. “The truth is, running any business successfully is work. Owners doing it the right way are the face of the business, setting high standards for staff and ensuring processes are followed to create a great customer experience.”

“Perhaps one of the more common misconceptions is that a new owner doesn’t need a lot of start-up money to get started,” says Koukourakis. “Start-up costs depend on whether you are building a new laundry or taking over an existing laundry. These costs may include: construction, renovation, hook-up fees, licenses, permits and equipment. In addition to basic start-up costs, there will be ongoing items, including utilities, insurance, employee payroll, lease or rental costs and miscellaneous supplies.

It is good practice to research financial options and make a plan that allows you to meet start-up and extended ongoing costs.

Many owners will create a pro forma to

project costs and income estimates.”

“Hard to beat that (‘little to no work’) one. You can be successful with minimal time in, but there are so many added rewards for creating a business that commands your time and takes on your own personality,” says Rowen. “Owning your own business is never easy, especially since you now need to be adept at operations, marketing, service, human resources, payroll, etc. The good thing is that there are numerous resources to learn best practices from, including a long-standing industry trade association, highly experienced distributors, quality media publications/websites and a network of willing store-owner peers.” “‘Just open the door and the money will roll in.’ Any seasoned owner or reputable distributor will tell you to prepare for a ramp-up period. This is why our finance packages often contain interestonly payments and similar tools to allow for the business to build,” Schram says.

“There’s always the myth that ‘customers will always go to the laundry with the lowest prices.’ We all know that’s not the truth.

Another myth is that ‘customers want only

basic wash selections and will not pay more for additional wash options.’ Again, the reality is that a high percentage of customers will choose extra washes and rinses.”

BELIEVE IT’S MYTH OR REALITY? American Coin-Op presented the manufacturer reps interviewed with a list of statements commonly heard in this industry and asked them why they believed them to be “myth” or “reality.” Here are just a few, along with their responses: • The self-service laundry industry is recession-resistant.

“Reality,” Weisheipl asserts. “Clean clothes are a necessity, though there are many areas where a downturn will reduce customer frequency. However, I have also seen examples where the renter population grows during a recession and store traffic goes up.”

“Reality,” Jorgensen says. “Everyone needs clean clothes. When a recession hits, fewer people can afford to own washers and dryers. These individuals do laundry at a vended laundry.”

“Reality, with a caveat that your business will still have its ebbs and flows,”

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“...the opinions of others may be subjective, with personal experience and emotion weighing in.”

says Rowen. “Everyone needs clean clothes. So, from a customer standpoint, needing to clean clothes won’t go out of style anytime soon.

However, the number of investors who are looking to enter the industry, the level of retool and new-store activity in your area, (and) pricing wars with your store neighbors will all impact the number of customers that come through your door and how much they will spend in your ’mat.”

• Customers don’t usually comment/ complain about vend price increases as long as you operate a nice store and give them what they want.

“Myth,” says Schram. “Comments and complaints are part of this business ... throw a price increase in and you are bound to get commentary.”

“Vend prices are indeed important,” says Koukourakis, commenting on the statement but not whether it is myth or reality.

“The quality of equipment and the types of services provided affect a customer’s experience. And a clean, well-lit environment are important difference-makers, but the effect to the customer’s wallet will still be a large determining factor. In other words, customers may go elsewhere if nearby

“This is similar to the way convenience stores have developed. A number of years ago, they were mostly small mom-and-pop operations with a few pumps. Today, they are significantly larger operations with great selection. The same will hold for our industry. Larger stores catering to the customer experience will take over the industry.”

“Myth,” according to Schram. “While some customers will travel distances to reach a vended laundry, many rely on the neighborhood store. So while I do think we will see store size continue to grow, I don’t anticipate a significant drop in the overall number of laundries.”

As you explore today’s widely held operational trends and beliefs, it’s important to recognize the factors that may influence them.

“When weighing industry myth vs. industry reality, it is best to keep in mind that the opinions of others may be subjective, with personal experience and emotion weighing in,” Koukourakis says. “It is always best for a prospective owner to do his or her research on the location, the market and other key facets to owning a laundry.”

ACO

—Nick Koukourakis, Whirlpool Corp. stores, even ‘lesser’ ones, have cheaper vend prices—within reason.”

“Reality,” says Jorgensen. “It’s true that laundries with great services and equipment tend to stand apart from the competition.

Thus, customers understand they are paying a bit extra for that. If they are going to complain, it’s typically about the vend prices on dryers, not washers.”

• There will be fewer, but larger, selfservice laundries in the next decade.

“It seems to be the trend in the market,” says Rowen. “Of course, this varies by region and what type of store can best support a population, but the numbers certainly do verify, in general, that it is a true statement.”

“Myth,” Jorgensen asserts. “There will be more and larger vended laundries.”

“Absolutely,” says Weisheipl of there being fewer but larger stores in the future.

Survey: Few Agree with Belief that Owning Laundromat is ‘Easy Way to Make a Living’ Anyone who says that owning a Laundromat is “an easy way to make a living” believes in an industry “myth,” according to three-quarters of the store owners taking the most recent American Coin-Op Your Views survey.

Twenty percent of respondents called the statement a “reality,” and the remaining 4.7% were unsure.

In terms of operational “myths vs. realities,” it’s clear that most store owners find certain commonly held beliefs to be myths.

But the myth vs. reality debate is not always sharply defined.

For example, roughly 39% of store owners polled do not believe in the notion that the self-service laundry industry is “recessionresistant.” While a small portion (7.1%) is not sure, 54.1% consider the idea a “reality.”

Respondents were split on the idea of an owner being able to run up to four stores successfully without having to hire a manager or assistant. Roughly 37% call it a myth, 37.9% say it’s a reality, and the remaining 25.3% are uncertain.

Some other statements put to the myth/ reality test: • “A well-kept laundry reduces your chances of being vandalized.” — 30

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22.1% myth, 68.6% reality, 9.3% unsure.

• “Word of mouth is the best form of laundry advertising.” — 17.6% myth, 77.7% reality, 4.7% unsure.

• “Customers don’t usually comment/ complain about vend price increases as long as you operate a nice store and give them what they want.” — 22.1% myth, 68.6% reality, 9.3% unsure.

• “It it beneficial to develop a cordial relationship with competing store owners from the same area.” — 11.6% myth, 62.8% reality, 25.6% unsure.

• “Top loaders will be phased out of the self-service laundry industry in the next few years.” — 34.9% myth, 51.2% reality, 14.0% unsure.

• “There will be fewer, but larger, selfservice laundries in the next decade.”

— 23.0% myth, 54.0% reality, 23.0% unsure.

• “The dollar coin will have a major impact on our industry in the next five years.” — 44.2% myth, 25.6% reality, 30.2% unsure.

Finally, store owners taking the unscientific poll were asked if they had a favorite “myth” or “reality” about the industry. Here

are some of the responses: • “‘Utilities are your biggest concern.’

False. If they are an issue, then either vend prices (are) too low or (you’re) running old equipment.”

• “‘All Laundromat customers are typical.’ I have found that they are not.

Your store’s condition and your attitude attract your type of customers, for the most part.”

• “‘More big machines’ will be a reality.”

• “Myth: ‘All I ever do is show up a few minutes a day to collect the cash.’”

• “‘A full parking lot means you’re rolling in it.’ Revenue/car can be as low as $5/hour. Any donut shop will do $5/ car in 30 seconds!”

• “‘Obtaining honest, dependable employees will become your most difficult job facing the industry.’ — Reality.”

• “‘I’m giving back to the community.’ A myth that actually means, ‘I am desperate for more customers and I’ll try just about anything.”

While American Coin-Op’s Your Views survey presents a snapshot of the audience’s viewpoints at a particular moment, it should ACO not be considered scientific.

www.americancoinop.com

3/13/18 4:01 PM

Equipment Distributors Schedule Spring Open Houses

W

ith the arrival of spring comes a calendar full of opportunities to attend distributor open houses, service schools and other special events.

Here is a brief rundown of events from the American Coin-Op calendar through mid-May. Call, or visit the website listed for registration information. In many cases, space is limited.

Expo & Seminar, Chicago; 773-538-7892; lauren@midwestlaundries.com.

April 24 — Coin Laundry Association New York Metro Laundromat Industry Meet-Up, Melville, N.Y.; 800-570-5629; www.coinlaundry.org/events/calendar.

April 25 — HK Laundry Equipment 11th Annual Spring Sales Extravaganza, Danbury, Ct.; 914-273-5757 (local) or 800229-4572; donna@hklaundry.com.

April 5-7 — 2018 Cleaners Showcase, Shreveport, La.; www.sda-dryclean.com.

April 7 — Continental Girbau West Conference of Champions Profit Symposium, Santa Fe Springs, Calif.; 866950-2449; www.cg-west.com/symposium.

April 14 — LES Laundry Equipment 2018 Mid-Atlantic Commercial Laundry Trade Show, Hagerstown, Md.; 800-8666905, https://leslaundry.com/2018-tradeshow-registration-form/.

April 17 — Midwest Laundries Product

May 1 — KeeWes Equipment Co. Spring Show, Earth City, Mo.; 800-383-9274; www.keewes.com.

May 3 — Equipment Marketers 25th Annual Trade Show and Service Seminar, Cherry Hill, N.J.; 800-223-1376; info@ eqpmark.com; www.laundrytradeshow. com.

May 3 — KeeWes Equipment Co. Spring Show, North Kansas City, Mo.; 800-3839274; www.keewes.com.

May 8 — Commercial & Coin Laundry

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May 8 — Star Distributing Open House & Service School, Knoxville, Tenn.; 800897-7570; www.stardistributing.com.

May 10 — Star Distributing Open House & Service School, Nashville, Tenn.; 800897-7570; www.stardistributing.com.

May 12 — Coin-O-Matic Service School: Speed Queen Front-Load Washer-Extractor, Alsip, Ill.; http://coinomatic.com.

May 16-17 — Coin Laundry Association Excellence in Laundry Conference, Naples, Fla.; 800-570-5629; http://www. coinlaundry.org/events/excellence-2018.

May 19 — Alco Washer Center Open House, New Castle, Pa.; 724-658-8808; alco.washer@verizon.net.

Check the AmericanCoinOp.com calendar periodically for updates/additions.

Distributors, e-mail Editor Bruce Beggs (bbeggs@atmags.com) to have your comACO pany events added to our calendar.

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COIN-OP 101

IF I HAD IT TO DO ALL OVER AGAIN...

Tim Wuethrich

The rearview mirror is a key component to safe driving, but what about for your business? Often, we are too busy and wrapped up in the day-to-day elements of running our laundries to take a peek at where we have come from. It’s no wonder, our days are packed: employee management, accounting and reporting, machine maintenance, customer relations and marketing, the list goes on. Plus, for some, there’s a full-time job in addition to the store activities.

However, as business owners, we have to evolve or face being left behind — that is, if we are truly building a business and adding locations.

I’m sure we all know owners who have been content to run their only store the same way since the “Open” light was switched on during the Jimmy Carter administration — same equipment, same management style, same way of addressing problems. The rest of us evolve. We learn from mistakes. Each of us, I am certain, could point to mistakes we have made along the way and just shake our heads. I know I have.

So, the rearview mirror not only gives us a chance to see how far we have come in this business as vended laundry owners, it also reminds us to be flexible and grow. This column is my list of changes I might make if I had those early stores to do over again.

MORE EQUIPMENT AUDITIONS Why didn’t I talk to more equipment distributors?

Starting with store No. 1, I spoke with one distributor and decided the equipment would work for my store. I had seen it installed in other stores.

If I had it to do over again, first, I would have looked at more equipment brands and, second, talked to more owners about their experiences with specific brands. It took me way too long to finally arrive at the brand of washers and dryers I have today. That meant suffering through too many silly repairs.

Don’t get me wrong, I had a solid distributor and decent service, but with that first store, I assumed that the frequency of repairs was normal. I see now how wrong I was in that thinking. I also know that the brand turning in my stores right now offers advanced controls and management systems, is reliable, and services and supports its products.

Staying on the equipment theme, I would never have put myself (and customers) through the headache of buying a first-generation model. It’s easy to want to install the latest and greatest … until you realize they aren’t so great. In the past, I had my distributor remove washerextractors as well as tumble dryers. Let another laundry test-drive those early first-generation models and work out the bugs. Better to wait for the second generation.

Image licensed by Ingram Publishing

STICK WITH THE BIG STUFF If I had it to do over again, I also would invest in more of the larger-capacity equipment early on.

As my business has grown, the number of largecapacity models has grown with it. I would eliminate top-load washers and focus on 20-, 40- and 60-pound models. In fact, with my latest store in Michigan City, Ind., I doubled the number of 60-pounders compared to the locations before it.

The benefits of these pieces are many and include better efficiency, higher revenue and profit potential, and higher g-force extraction (faster dry times, lower gas consumption).

Now, I’m sure some owners might be asking why not more 80s or even 100s. My stores are in smaller markets, and I’ve found the 60-pound units to be adequate to meet the needs of customers in my area.

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Powering those pieces, I would have opted for an on-demand water heating system vs. a large boiler system. They are a third of the cost and far easier for owners to work on.

On the drying side, the store would have been converted to all 45-pound stacks, no singles. I would also ensure I had adequate makeup air for the tumble dryers.

STREAMLINE MARKETING AND OPERATIONS Now it may seem counter to what many owners might say, but if I had it to do over again, I’d invest more into really good signage and be selective with marketing campaigns.

All my stores are in prime locations with high visibility. A prime location is the best marketing tool. Good signage is the main tool for drawing customers in, and signage that “pops” for those driving by is my main marketing thrust.

In terms of management, I would have locked in on my processes earlier. While arguably this is really the natural flow of things, as we develop stores and expand our businesses, I would love to have had my operations manual crafted for employees at that first store.

The document takes a page from the McDonald’s empire, in providing step-by-step instruction on every activity an employee may be asked to perform at the store. It has simplified training greatly and ensures all employees are operating the same way.

And then there’s technology. If I had it to do over again, I would have embraced technology sooner to streamline management.

Management technology is worth every dime I spent on it. My stores are within a 50-mile radius, which means tons of traveling

to keep track of operations. However, the reporting capabilities of today’s systems make management far easier and are a catalyst to expand further outside that range. Remote monitoring opens up greater expansion distances, and the addition of cashless payment systems will only make it simpler to manage from afar.

FINAL THOUGHTS Our industry is filled with great people willing to share with those just starting out. This can help save store owners from making any big mistakes that could truly jeopardize their investment.

While there are few absolutes — a location has to have the right demographics, ample parking and visibility, and a footprint that makes sense for equipment layout — many other variables can shift by market.

I believe the key to my success over the last 15 years has been to build on the things that worked and learn from those that didn’t.

If you are doing things the right way and providing great service, demand a higher price for your services than that store down the street. And don’t forget to embrace technology to simplify store management. Having data on store operations will make your decision-making that much easier, in addition to saving management time over the long haul.

ACO Tim Wuethrich is a 15-year veteran of the coin laundry industry and, along with his wife, Sally, co-owns Lady Bug Cleaners (www.ladybugcleaners.com). They have eight locations throughout northern Indiana.

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APRIL 2018

AMERICAN COIN-OP 9:54 33 AM 2/20/18

3/13/18 11:10 AM

PRODUCT NEWS

«

IMONEX CLEARTOKEN DEBUTS HYBRID PHONE PAY COIN DROP

Imonex ClearToken reports it has introduced the industry’s only hybrid multi-coin smartphone pay coin drop to enhance the customer experience in vended and multi-housing laundry operations.

In addition to quarters, dollar coins

and tokens, the smartphone’s builtin Bluetooth technology can now be employed to speed customers through vended transactions while providing operators a cost-efficient gateway to build and track revenue, the company says.

Designed to accommodate new machines and retrofits, the hybrid model combines multiple payment formats in the simplicity of a coin drop while avoiding burdensome external devices and network infrastructure.

ClearToken’s Apple and Android app functions as a secure electronic payment system where self-pre-loaded or attendant-loaded virtual credits are redeemable at the machines. The proprietary, over-the-counter, cash-to-

virtual credits and credit/debit card-tovirtual credits transaction format gives operators flexibility to eliminate or control merchant fees while offering bonus incentives to cash-based smartphone customers, Imonex ClearToken notes.

At the heart of the integrated coindrop model is the new EM3 controller boasting multi-coin and smartphone pay capabilities along with optional coin plus phone telemetry to audit all machine revenue activity in real time.

The hybrid model is designed with built-in redundancy to operate with multi-coin and phone pay functioning either in tandem or independently — providing added peace of mind with a backup format in place, Imonex ClearToken says.

www.imonexcleartoken.com |

800-446-2719

«

CONTINENTAL UNVEILS FREESTANDING 80-POUND WASHER

Continental Girbau Inc. has added the 80-pound-capacity ExpressWash® Washer to its comprehensive line of freestanding, high-performance washers, the company says. The ExpressWash line now touts 20-, 30-, 40-, 60-, 80and 90-pound models, all equipped with the advanced ProfitPlus® Control.

The new 80-pound model not only fills a capacity gap in the ExpressWash line, according to Joel Jorgensen, vice president of sales, it generates up to 400-g-force extract speeds and features a compact footprint.

“Vended laundries that can’t accommodate the larger 90-pound-capacity machine should be able to accommodate the 80,” he says.

All ExpressWash Washers ensure self-service customers wash, dry and fold laundry in 60 minutes or less.

Meanwhile, vended laundry owners benefit from the washer’s durability, efficiency, programmability and profit potential, according to Jorgensen.

The washers boast a unique suspen34

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sion system and freestanding design that combine for zero-impact installation on a standard floor. The superspeed extract removes more water from each load, which reduces dry time by up to 50% when compared with most traditional hard-mount washers.

Simultaneously, owners cut utility overhead costs, improve customer turnover and bolster profits, Continental says.

The ProfitPlus® Control offers “hot,” for whites; “warm” for colorfast and permanent press items; and “cold” for colors. It also allows the customer to add an “extra wash,” “extra rinse,” “extra spin” or “superwash.”

Four individually modifiable programs allow programmability of g-force extract, mechanical action, wash temperature (by degree), water levels, and wash/rinse/extract time in each phase.

This flexibility allows multi-level vend pricing on the same machine depending on the wash program selected, time of day, or day of the week.

ProfitPlus® integrates networking

and remote programming when installed with popular payment-system interfaces.

From a smartphone or computer, owners can configure pricing and specials, run reports, schedule routine maintenance flushes, and monitor system and equipment status in real time.

www.cgilaundry.com |

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www.americancoinop.com

3/14/18 9:20 AM

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

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APRIL 2018

AMERICAN COIN-OP 35 2:04 PM 3/1/18

3/13/18 11:08 AM

AN OUTSIDER’S VIEW

CREATE A FEW INTERESTING TOUCHES

Howard Scott

True, a Laundromat is where a mundane chore— cleaning clothes—occurs. But that doesn’t mean your premises can’t be intriguing, vivid, even memorable.

Or at minimum, there’s something there that makes the customer smile. Unfortunately, only a few operators realize this and most establishments are dull at best and downright dumpy at worst.

Yes, a small percentage of Laundromats are brandspanking-new and up-to-date, and this is certainly acceptable. But even these modern establishments can add some unique touches.

Why would I spend money for nothing? you ask. Isn’t the rule of business to refrain from spending, unless a gun is aimed at your head? you ponder. Yes, but your facility needs to be welcoming. That is part of the contract of getting a person to spend two hours there, week after week. Brightening up the place is part and parcel of the offering.

Just as you hope your home is comfortable and welcoming, so you want your Laundromat to be people-friendly.

Think of it this way. Unlike almost all other businesses, your plant is a temporary home for your customer. He or she resides there, if briefly, on a regular basis. Just as you hope your home is comfortable and welcoming, so you want your Laundromat to be people-friendly. You want to make for a more satisfying laundry experience. That includes both inside and outside.

You don’t have to spend a fortune. I’m not sug-

To read more Howard Scott columns, visit www.AmericanCoinOp.com 36

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gesting a makeover with new equipment, replacing the floor, and a new drop ceiling with LED lighting, which might run $150,000. I’m suggesting gathering any spare money you have and add some intriguing touches. Something that might make passersby notice.

A feature that will make customers nod approvingly.

An effect that will create buzz around town. Something that will make your store unique.

Here are a few ideas. My eyes swerved to a colorful green scene as I drove by. Underneath I saw the word “Laundry.” I stopped to investigate. Above the company sign was a swath of green leaves, the width of the sign, maybe 15 feet, and it was visually arresting. It is enlargements of photographs of leaves. What does that have to do with laundry? Nothing. It provides a feeling of outdoors. Which is not a bad aura for an indoor Laundromat experience.

A newcomer riding by would discover that a Laundromat was there just by the sheer vibrancy of the sign. That might bring new patrons. A customer coming into the store to do his laundry would have a calmer attitude and be more apt to cope when matters go wrong. A passerby would be grabbed by the visual ingenuity of the scene, and perhaps be encouraged to switch his Laundromat of choice. Someone giving directions would mention the photography, which makes it an easy landmark to spot. Some customers waiting for their laundry to finish might be inspired to go outside, look at the montage and feel soothed.

It is funny that the green-leaf theme doesn’t really relate to laundry. A more appropriate motif might be running water. Perhaps a river scene of sparking blue water roaring over rocks on the banks would be more appropriate. In fact, this is how clothes used to be cleaned. Women bent down by the riverbed, scrubbing their clothes in the cold, clear, rushing water. So consider that effect, if the photography montage appeals to you.

How about painting an interior wall aqua blue? It would look cool and feel calming. It exudes “clean,” perfect to tie in with the theme of cleaning clothes.

What difference will an attractive wall mean? you www.americancoinop.com

3/13/18 11:05 AM

ask. Say I was a customer doing his laundry. And let’s say a washer didn’t accept a quarter. In a dingy place, I might have gotten mad, kicked the machine and concluded this is nothing but a shoddy operation. But in a calming environment, I might have looked at the wall, shrugged, and tried another quarter. Hopefully, the machine works the second time around. See the difference. Scenery matters. Colors can alter your mood.

A variation of this is to face one interior wall with knotty pine.

Wood is soft, comforting. A customer in your store is comforted by the youthful memory of a family room. Such a response has the same effect as the aqua blue wall.

Create a modernistic wood design in the front of your shop with a scrim of out-jutting wooden edgings. Superimposed on the front is a perpendicular intercrossing of 2-by-6 boards painted black in a box-like pattern, with solid blocks of wood in some of the boxes. It makes for an interesting artistic effect. Such artistry gives the Laundromat a modern touch. If you don’t have the skill, hire an art student to create the effect.

Hang paintings in your Laundromat. They don’t have to be professional art or masterpieces; use student drawings or a neighbor’s art. They could have mat frames, which wouldn’t cost very much. Of course, the Laundromat has an attendant to minimize the chance of theft. A customer might take a few minutes to walk around looking at the paintings. In the process, he might meet another customer and begin a chat. Such good vibes usually don’t emanate from such silenced spaces, so it is good when it does. It

kind of changes the atmosphere of performing a boring task into making a connection with another human being.

Another possibility is to create an outdoor mural along the side of your building. Hire talented high school students to paint the mural. How about painting the block of stores on your side of the street, which would include your shop? A row of people of different stripes and color, all joining hands, perhaps. A third possibility is a fantastical scene of mermaids and sea devils capering about at the edge of the sea. Of course, the artwork depends on the artist’s skills and proclivities. Everyone notes a mural, and its existence can’t help but bring attention to your store.

How about two-color cross tiles as a floor design? Each tile is perpendicular to each other in a pattern of interconnected pieces.

The dual-color effect is different, visually absorbing, and the eye tends to run along the cracks of its zig-zag pattern.

How about a trompe l’oeil window? Paint a window on the wall showing a beautiful, undulating field with flowers and bushes. Only, it is a painting—there is no such scene outside. The French “trompe l’oeil” translates to “a trick of the eye.” Such a field could not exist in this urban setting, so trompe l’oeil invariably bring smiles to viewers’ faces.

Do something to your store—one thing, at least—to bring some liveliness to your place.

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

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HHC Electronic Service ........................... 39

American Switch ......................................38

ELECTRONIC SERVICE

Advertiser

AC Power ................................................ 35

Metro Laundry Tech Corp. ......................38 Mountain Electronics ...............................38 NIE Insurance ..........................................13 Progressive Insurance ...............................29 PWS-The Laundry Co. ........................14-15 R&B Wire Products ..................................1 Setomatic Systems ................................. IFC

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

Speed Queen ............................................6-7

Gold Coin Laundry Equipment ................17

Summit Measurement ...............................38

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

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

Huebsch ..............................................26-27

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3/13/18 11:01 AM

NEWSMAKERS

CLEC ACQUIRES FELLOW DISTRIBUTOR TEXAS LAUNDRY SERVICE CO. Distributor Commercial and Coin Laundry Equipment Co. (CLEC), Gulf Breeze, Fla., reports that it has purchased fellow distributor Texas Laundry Service Co., its second acquisition since November. Terms were not disclosed.

“Texas Laundry was a perfect fit for our company as we expand throughout the Gulf Coast,” says Craig Dakauskas, president of CLEC. “This acquisition is part of the ‘CLEC Effect,’ where we seize opportunities to increase our coverage footprint and then use our combined talents and synergies to grow the business.”

Texas Laundry Service Co. distributes Speed Queen coin and on-premises laundry equipment throughout south Texas, and has offices in Pasadena, Corpus Christi, San Antonio and La Feria.

Plans call for CLEC to maintain two offices: CLEC East, in Gulf Breeze, and CLEC West, in the Houston area.

Texas Laundry Service Co. President Linda Moore will stay on in the interim to assist with the transition, CLEC says.

Late last year, CLEC purchased Greenwood, Miss.-based Delta Laundry Equipment, which distributes Speed Queen coin laundry equipment throughout the state of Mississippi, plus has a route business. CLEC purchased Lafayette, La.-based Ebner Equipment in 2008.

“As a company, we could not be happier about expanding our territory and representing Speed Queen in the south Texas market,” Dakauskas says. “We expect to focus on growing coin and OPL sales in the market.”

CLEC now boasts a staff of more than 50 employees, as well as expansive equipment and parts inventories.

DISTRIBUTOR CONTINENTAL GIRBAU WEST UNVEILS NEW WEBSITE Commercial laundry equipment distributor Continental Girbau West (CG West) recently launched a new responsive website—www.cg-west.com—complete with simple navigation and high-quality content, according to Tod Sorensen, CG West vice president.

“CG West serves Southern California with much more than high-performance laundry equipment and quality customer care,” he says. “Our new website reflects our commitment to providing detailed information for vended, on-premise, multi-housing and industrial laundry operators looking to develop, finance, improve or expand their operations.”

Site visitors are able to quickly locate product specifications and warranty information, Regional Training Center events, online parts requests and service ordering, news and events, career opportunities, and staff directory, among other content.

Additionally, a front-and-center “Industries Served” navigation tab wisks visitors to specific industry information, including vended laundries, athletic laundries, hotels, healthcare facilities, vet clinics, fire departments, and more.

A subsidiary of Wisconsin-based manufacturer Continental Girbau Inc., CG West serves the Southern California vended, on40

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premise and industrial laundry markets by providing equipment, parts, financing, service, warranty and training.

WASHLAVA EXPANDS TECH OFFERING TO SPEED QUEEN EQUIPMENT Washlava, a startup offering a patent-pending, machine-integrated technology platform and corresponding mobile application, reports it has expanded its technology onto Speed Queen Quantum small-chassis laundry equipment.

The company is creating a network of connected laundry equipment across the United States that lets customers use the Washlava app to reserve and pay for laundry in Laundromats, dorms, apartments and hotels.

“Speed Queen has a long history of being a leader in vended, multi-family laundry equipment,” says Todd Belveal, Washlava founder and CEO. “As Washlava expands its technology offering within campus and apartment laundry, we are integrating our technology on reliable brands that users want.”

Speed Queen is the second Alliance Laundry Systems brand that Washlava has engineered on. The company released its product for Laundromats on Huebsch laundry equipment last summer when it opened the world’s first exclusively app-enabled Laundromat in Tampa, Fla. In addition to authorizing mobile payments, the technology allows customers to find Washlava-enabled locations, see machine availability, reserve machines, and more.

In coming months, Washlava-enabled locations are scheduled to launch in New York, Atlanta, San Francisco and Miami.

LAUNDRYONE TO DISTRIBUTE DEXTER LAUNDRY EQUIPMENT IN MIDWEST Commercial laundry equipment distributor LaundryOne has joined the Dexter Laundry partner program as a Midwest distributor, according to a company press release. Through the partnership, LaundryOne will expand the Dexter brand’s reach throughout the region.

“We are grateful for the partnership extended by Dexter Laundry, Yamamoto, and many other manufacturers,” says Thomas Duckworth, CEO of LaundryOne. “We look forward to serving our new customers and providing the highest-quality and best-valued customer solutions.

“Customers want to use equipment that requires minimal service, offers the best ROI, and is user-friendly. We are partnering with manufacturers that provide these qualities.”

Duckworth brings decades of experience to the wholesale distribution arena and has built a reputation of building strong service organizations along with large, dominant distributorships.

In addition to Duckworth, a management team of several industry veterans have joined the LaundryOne team to serve coin laundry, on-premises laundry and multi-housing business customers.

LaundryOne will operate from a wholly owned 60,000-squarefoot business unit and warehouse based in central Ohio, and has just launched its new website, www.laundryone.com.

ACO www.americancoinop.com

3/13/18 11:04 AM

“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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