American Coin-Op - May 2020

LAUNDRIES PROVE ESSENTIAL Allowed to remain open during pandemic to help public stay clean of coronavirus

I N S I D E : J U L IYN S2 I0D0E5: M A Y 2 0 2 0 A LOOK AT ADVANCES IN EQUIPMENT TECHNOLOGY

COVID-19: A BUSINESS GUIDE TO VIRUS SURVIVAL

PAULIE’S POINTERS: GET THE BIGGEST BANG FOR YOUR RENOVATION BUCK

WWW.AMERICANCOINOP.COM

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“Tap and Go” (Contactless) payment has become the preferred way to pay in Europe, Canada, South Korea and Australia, and the US is finally catching up.

$ Pay with a variety of options including credit / debit, coin, loyalty card, or NFC / Mobile wallet.

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Customers can earn FREE washes with either a loyalty card or their credit/debit card automatically.

SpyderWash, customers simply hold/tap their credit card a few inches from the card reader, and the vend is satisfied.

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CONTENTS MAY 2020 VOLUME 61 ISSUE 5

COVER STORY

LAUNDRIES PROVE ESSENTIAL IN COMBATING CORONAVIRUS OUTBREAK With many Americans isolated in their homes and non-essential businesses closed, laundry services remain open during shutdown to help public stay clean of COVID-19.

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(Cover image: © justinkendra/Depositphotos.com)

INSIDE

COLUMNS

6 ADVANCES IN EQUIPMENT TECHNOLOGY As devices and systems used within the industry continue to evolve, customers gain greater service flexibility while store owners can more easily monitor and adjust their operations.

22 SOCIAL MEDIA EXTENDS CUSTOMER EXPERIENCE The customer experience is more than what happens inside your store. Alliance Laundry Systems’ Jennifer Butzlaff looks at the tool that can extend your reach and enable you to build strong customer connections.

25 TOP 5 FINANCING QUESTIONS TO ASK YOUR DISTRIBUTOR

12 A BUSINESS GUIDE TO VIRUS SURVIVAL Business writer Mark E. Battersby summarizes the many financial programs made available to help vended laundry owners weather the crunch created by the COVID-19 outbreak.

18 HOW’S YOUR INSURANCE IQ? Four providers with experience in insuring self-service laundries highlight the unique coverage needed to protect such a business (including the potential for relief from COVID-19’s impact) while staying cost-conscious.

DEPARTMENTS 4 VIEWPOINT 24 PRODUCT NEWS 30 CLASSIFIEDS 2

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31 AD INDEX 32 NEWSMAKERS

Distributors work closely with lending institutions to offer flexible financing programs. When thinking of financing a laundry project, have these questions ready, suggests Girbau North America’s Pam Kuffel.

26 GET THE BIGGEST BANG FOR YOUR RENOVATION BUCK This doesn’t necessarily mean the cheapest initial costs, but how much value your Laundromat gains over time for your money initially spent, says columnist Paul Russo.

DID YOU KNOW...

American Coin-Op releases a new podcast on a different topic of interest the last Wednesday of every month?

Give it a listen at AmericanCoinOp.com.

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Q U AN T UM T O U C H ®

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• Pair it with Speed Queen Insights to allow customers to pay from their phone and receive cycle complete notifications while they wait in their car To learn more about this cutting-edge control and the exceptional ROI it delivers, visit SpeedQueenCommercial.com/Touch.

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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

ESSENTIAL AT ANY TIME

Bruce Beggs

Laundry services are essential.

You’ve known it. Customers with no laundry equipment in their homes have known it. We self-service laundry supporters have known it.

And now the federal government officially knows it.

As I write this, almost a month has passed since President Trump declared the coronavirus pandemic a national emergency. Around that same time, individual states began issuing directives temporarily closing non-essential businesses and ordering (or at least encouraging) people to “socially distance” and work from home if their jobs allowed it.

States were relying on a document from an agency of the U.S. Department of Homeland Security to identify “essential” services that could remain open. Laundry businesses weren’t on the list.

But behind a lobbying effort (more on that in this issue’s main feature starting on page 10), laundry services was soon added to the official document. Today, it’s recognized in every state as “essential,” “critical” or even “life-sustaining.”

Indeed, with no COVID-19 vaccine, sustaining life by lowering the risk of infection means doing a better job of washing our hands and cleaning and sanitizing our homes and clothes. And who better to help laundry-poor individuals and families do the latter than their local Laundromat?

What does having one mean to a community? Just ask the Board of Commissioners in Taylorsville, N.C. That town’s only Laundromat closed a few months ago. In early April, the Board passed an emergency bill offering a $7,000 incentive to a responsible business that opens a coin-operated laundry there. Do you think they know having and using a laundry is essential?

Whether your store is unattended or attended, accepts coin or card, is open limited hours or 24/7, serves an urban or rural population, you ... are ... essential.

And if your customers aren’t saying it, allow me: Thank you for being there when you’re needed, for risking your own health in the service of others, and for helping our nation cope with and get through this pandemic.

Bruce Beggs Editorial Director

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

ADVISORY BOARD Jaimie Johnson Tony Regan Michael Schantz Andy Wray

Douglas Pratt Sharon Sager Luke Williford

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, 650 West Lake Street, Suite 320, 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 61, number 5. Editorial, executive and advertising offices are at 650 West Lake Street, Suite 320, 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, 2020. Printed in U.S.A. No part of this publication may be transmitted or reproduced in any form, electronic or mechanical, without written permission from the publisher or his representative. American Coin-Op does not endorse, recommend or guarantee any article, product, service or information found within. Opinions expressed are those of the writers and do not necessarily reflect the views of American Coin-Op or its staff. While precautions have been taken to ensure the accuracy of the magazine’s contents at time of publication, neither the editors, publishers nor its agents can accept responsibility for damages or injury which may arise therefrom.

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ADVANCES IN

EQUIPMENT TECHNOLOGY Customer convenience, ease of use, efficiency still driving improvement efforts

D

oing laundry is the third most time-consuming household activity for Americans, trailing only food preparation and cleanup, and interior cleaning, according to the U.S. Bureau of Labor Statistics’ American Time Use Survey.

Millions of Americans wash and dry their clothes at Laundromats every year. The self-service laundry industry has certainly come a long way since C.A. Tannahill opened the first one, called a Washateria, in April 1934 in Fort Worth, Texas. He purchased and installed four electric washing machines in the same building and charged people by the hour to clean their clothes.

Through the decades since, laundry equipment has leapt forward in its labor-saving capability. The commercial washers and dryers of today are engineered and built for high performance, durability and ease of use. The coin or token payment method necessary to operate them has been joined by card, contactless and mobile options. Available technology combines equipment controls and programming into full-store management systems.

As the devices and systems used within the laundry industry continue to evolve, customers gain greater service flexibility while store owners can more easily program, monitor and audit their operations.

Laundry is not a task that everyone loves doing, so it makes sense that a store offering the most seamless laundering experience stands to do very well. Customers who don’t have laundry equipment at home want access to reliable machines that will clean and dry their clothes well for an affordable vend price and in a reasonable amount of time.

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(Photo: iStock.com/spainter_vfx)

While washers and dryers in the 20- to 40-pound range still make up a significant share of equipment in Laundromats today, it’s not unusual to see a few machines twice that size or larger in the same equipment mix. Offering customers the ability to do big loads using large-capacity equipment helps decrease turnover and reduces the number of loads each has to do.

When time is at a premium, there’s something very attractive about having the ability to do one’s entire laundry in one big machine instead of a bunch of smaller ones.

Water and energy conservation is also important to costconscious store owners, and equipment manufacturers are doing their part to help. Without focusing on any one brand’s offerings, some of the features available in washers and/or dryers on the market include: • Automatic weighing within a washer determines the actual weight of a soiled load and adds precisely the right amount of water, thus lowering water consumption and energy costs.

• High-speed extraction removes more water from clothes, shortening dryer time and lowering gas consumption.

• Sump-less washer design reduces the amount of water used with each fill.

• Customizable wash programs that include water level, temperature and drum action.

• Stronger machine frames and leak detection reduce preventive maintenance and repairs as well as lower utility expenses.

• A dryer sensor determines when laundry is dry and lowers the operating temperature or stops the drum altogether.

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by Bruce Beggs, Editorial Director

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While many washer brands offer controls allowing for various levels of programmability, some laundry operators default to factory settings and miss out on opportunities to cut utility costs, generate additional revenue and fuel store profits, Continental Girbau’s Tod Sorensen wrote in an American Coin-Op column last year.

Most washer controls integrate networking, remote programming and payment system interface to make quick programming possible, he says. Owners can program washers directly from the keypad, or in combination with an alternative payment/management system using a computer, tablet or cellphone.

A highly flexible washer control will allow programmability at the smallest levels, according to Sorensen. For instance, a highquality control will allow owners to configure pricing and specials, run reports, monitor revenue and schedule routine maintenance flushes; adjust water levels, mechanical action, cycle times, extract speeds and water temperatures by degree; and add or delete baths, rinses and spins; among other things.

Where payment is concerned, the vast majority of self-service laundries accept coins (91.5% in American Coin-Op’s 2019-20 State of the Industry Survey). But while that continues to be the preferred method used, the share of cashless stores is growing larger by the year (42.4% currently offer card and 22% offer other non-coin systems, according to the survey; store owners were asked to identify all that apply to their operations).

Depending on the payment system, customers can transfer a dollar amount to a “store card” or “loyalty card” that is then used to start the vended washers/dryers in that store, or can use a credit, debit or EBT card to start a machine. Some systems enable stores to accept coin, credit card, store or loyalty card, or a combination.

Fast gaining traction in the industry are app-based payment platforms that allow customers to pay for laundry services using their mobile devices.

There are many benefits, whether a store owner chooses a hybrid coin/cashless system or goes fully cashless, Setomatic Systems President Michael Schantz commented for a 2018 American Coin-Op article on payment trends.

“The benefits of both type of systems are really too numerous to list, but a few major ones are cash control (accountability), loyalty programs, and to differentiate your laundry from your competitors,” he says.

“Most millennials never have any cash on them at all, so to limit to only coin acceptance is excluding a big potential customer base. Allowing every payment option allows you to market your Laundromat to every demographic.”

With customers increasingly using smartphones to pay for and utilize services, the mobile device’s influence on self-service laundries is only going to grow stronger.

“With a smartphone being a part of most everyone’s daily life,

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utilizing this important item for store management (by owners) and for machine operations (by users) will only become more common,” Kevin Hietpas, director of sales, Dexter Laundry, commented for a recent Improving the Industry Roundtable article in American Coin-Op. “The key to maximizing the value, to both owners and users, will be making the use and operation as intuitive as possible. The more intuitive, and “frictionless,” that manufacturers can make their use, the faster we will see greater use — by both owners and users.”

Computerized management systems available from select manufacturers give self-service laundry owners a variety of features and functionalities to make remotely operating their business easier and more efficient.

When a situation requires it, an owner can act quickly to remotely vend a machine, reset a control or take a machine out of service, from anywhere there is internet access.

Real-time reporting capabilities offer an in-depth look at business performance, cycle selections, machine usage and more, either in the moment or over a selected period.

“The best part about the advancements in today’s technology is that it can help an owner manage their store, even when they’re not there,” Whirlpool Corporation Commercial Laundry’s Nick Koukourakis wrote in an American Coin-Op column last year. “Machines with remote connectivity capabilities are now equipped to help laundry owners do things like adjusting pricing, rates, or cycle modifiers, and providing credits from a computer, tablet or smartphone. This technology can also deliver real-time data, so they’re aware of how their machines are running.”

So how can a laundry owner justify purchase of equipment or systems that are on the cutting edge?

“You’ve got two angles there, in my mind. First, you’ve got customer acquisition and customer retention,” explains Scott Chiavetta, chief information officer for Alliance Laundry Systems, during Making the Most of Vended Laundry Technology, an episode of the American Coin-Op Podcast. “So anything that you can do to make customers happy, or to bring new customers into the shop, is obviously paramount.

“The other side is on the operational side. That speaks much more to the larger-scale investors who will say, ‘Look, if I’m going to have three, four, five or more stores, that’s really where I’m going to get the biggest bang for my buck is building up my scale.’

And in order to do that, you have to have the technology.”

Where’s laundry technology headed in the future?

“If I had to sum it all up, the focus is … the service part of our industry, and the customer-centric part of our industry,” Chiavetta says. “That’s really what’s going to drive this and really any other major innovation in our industry. It’s all about how we keep that service component at a really high level and allow growth through that customer experience.”

ACO

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Laundries Prove ESSENTIAL

(Photo: iStock.com/Gilnature)

in Combating Coronavirus Outbreak ALLOWED TO REMAIN OPEN DURING SHUTDOWN TO HELP PUBLIC STAY CLEAN OF COVID-19

By Bruce Beggs, Editorial Director

A

t the time of this writing, a coronavirus outbreak has many Americans isolated in their homes and nonessential businesses closed. Half a million people have fallen ill and nearly 19,000 have died. Many jobs have been lost, and the U.S. “stay at home” economy has stalled. The true personal and financial toll the COVID-19 pandemic takes on our country won’t be known until well after the danger has passed.

To date, washing, cleaning and sanitizing—along with “social distancing”—have been fundamental in reducing the risk of getting sick and to ending the crisis.

And Laundromats and laundry services— plus the manufacturers and distributors they count on for equipment, parts and support—have proven essential in the day-byday fight against an unseen, invasive enemy.

ORIGIN OF AN OUTBREAK An outbreak of respiratory illness caused by a novel coronavirus was first reported in China in December. COVID-19 can spread 10

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from person to person through coughs or sneezes, and, as of April 10, there is no vaccine. Within a few weeks of the initial report, COVID-19 cases were identified at various sites internationally, including the U.S. The virus spreads easily, particularly where large numbers of people congregate.

Around 80% of confirmed cases are mild and don’t require hospitalization. Another 15% of those infected become severely ill, and the remainder are considered critical.

Most deaths in this outbreak have been in older people and those with underlying health issues.

With no cure in hand, the healthcare community’s response focused on prevention. We are reminded to wash our hands regularly and thoroughly, cover our coughs and sneezes, stay home when feeling ill, and to clean and sanitize hard surfaces and frequently touched objects, like light switches or doorknobs.

By March 11, the World Health Organization declared a pandemic. Two

days later, President Donald Trump declared a national emergency and his administration issued “social distancing” guidance to limit public gatherings.

California was the first state to issue a directive designed to keep people at home unless leaving for necessities. As this issue went to press, virtually every state had some sort of “shelter in place” or “safer at home” order or initiative. People were directed to work from home when possible, and nonessential businesses were ordered to close temporarily in many states.

LOBBYING TO SERVE As state and local authorities moved to close or restrict businesses, the Coin Laundry Association (CLA) launched a public relations campaign in an effort to keep Laundromats open during the outbreak.

Its statement circulated in mid-March targeted state governments and mainstream media by requesting that authorities designate all Laundromats as “essential services” www.americancoinop.com

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that provide a basic health service by serving millions of families with a safe place to wash and dry their clothes every week.

“Access to services is particularly important for Laundromat customers who are often low-income families with few alternatives to the neighborhood Laundromat for clothes washing,” the CLA statement read.

Initially, when governors began issuing business closure orders, laundries weren’t always listed as being exempt. Often, the state officials relied on an “Essential Critical Workforce Infrastructure” advisory list prepared by CISA, a division of the U.S. Department of Homeland Security. It was intended to help state and local governments ensure continuity of functions critical to public health and safety, as well as economic and national security—and laundry services didn’t make the cut.

But an ad hoc alliance that CLA President/CEO Brian Wallace described during an association webinar as “our industry manufacturers, a couple of store owners and CLA” advocated at the federal level and successfully petitioned to have laundries added to the types of businesses officially deemed “essential.”

American Coin-Op polled store owners about the pandemic in early April and many respondents reported they take great pride in their laundries being recognized in this way but also expressed concern about the added customer service and safety issues the pandemic raises and how to safely conduct business. A few owners said they had decided to close for the time being.

OPEN AND ADAPTIVE Adapting to government guidances on cleaning and social distancing has meant additional challenges for laundry owners.

Some of the special measures they’ve taken, based on the early April survey, have been cleaning/sanitizing laundry equipment and store fixtures more often; posting signage about personal hygiene and safe laundering guidelines; limiting the number of people in the store at any one time; promoting social distancing by blocking off areas/machines; increasing advertising or social media efforts; and emphasizing wash/dry/fold or pickup/delivery service.

Less than 5% of responding store owners said they were taking no special measures.

Neal Shapiro co-owns WashTime on Fullerton, a fully attended 6,000-squarefoot store in Chicago, with his wife Kate.

When restrictions designed to prevent gatherings took hold in his state, he knew his laundry “can’t just be business as usual,” he relates during a CLA webinar.

“So we began to figure out what we could do to minimize the density in our Laundromat and try to work around the ideas of social distancing at 6 feet, only so many people in the store at a time.”

Some stores are asking customers to wait in their cars or at home while their loads are being washed or dried. WashTime on Fullerton is among those that decided self-service customers could no longer fold there, thus shortening the time they remain inside. Shapiro’s store, previously open 24/7, also cut back its operating hours.

“It’s not great for our bottom line but it’s what we had to do to make sure that everybody that came in was safe,” he says.

Early on, Steve Lamiell, owner of the North Canton and Lake Cable Laundromats in Ohio, had his staff sanitizing high-touch areas and had posted flyers asking customers to wash their hands,

COVID-19 Resources Specific to Laundry Services American Coin-Op — https://tinyurl.com/americancoinop Coin Laundry Association — https://tinyurl.com/CoinLaundryAssn Dexter Laundry — https://www.dexter.com/coronavirus Huebsch — https://huebsch.com/covid-19 PWS The Laundry Company — https://tinyurl.com/PWSCovid-19 Speed Queen — https://tinyurl.com/SpeedQueenCOVID-19 Spynr — https://tinyurl.com/SpynrCOVID-19 (If your company has developed FREE COVID-19 resources for laundry owners, contact Bruce Beggs at bbeggs@atmags.com with details.)

American Coin-Op created an information sheet listing laundry care guidelines relative to COVID-19. It’s available in English or Spanish and can be downloaded at https://tinyurl.com/ACOproper. www.americancoinop.com

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cover coughs/sneezes and to not enter the premises if they felt ill. He also offered touch-free hand sanitizers.

“We realize that our efforts aren’t going to stop the (COVID-19) spread; however, we believe it will help prevent the spread and show our customers as well as our team that we care,” he said in the days immediately after social distancing guidelines took hold.

WORK TOGETHER WHILE WE WAIT Understanding the added stresses that the medical emergency and isolation safeguards have created, some businesses offered to do laundry free or at little cost for senior citizens, doctors and first responders. There were drives to collect masks, gloves and other supplies for first responders and healthcare workers.

There are no doubt many other examples throughout the industry of businesses and organizations doing what they can to serve their communities, whether it involves laundry services or not.

Manufacturers, distributors and other businesses linked to the laundry industry have shared information about the best ways to deal with a pandemic. Many have added or adjusted resources to better serve laundry owners, mindful that their own operations and staffs are subject to the same pandemic risks.

American Coin-Op created a flyer (below) that store owners can print and post to encourage customers to launder often and the proper way.

The healthcare community worldwide is working on a vaccine to control the coronavirus and bring this pandemic to an end but how long that will take to accomplish remains to be seen.

In early April, American Coin-Op asked store owners how long they thought COVID-19 would directly impact their business. Thirteen percent believed it would be less than 90 days, 50% said it would be longer than 90 days, and the remaining 37% said they didn’t know.

“Pray that it ends soon with minimal loss of life,” a survey respondent wrote of the pandemic. “We can rebuild our businesses and the economy. We cannot bring back our friends and family that have succumbed to this virus.”

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A BUSINESS GUIDE TO

VIRUS SURVIVAL Financial relief efforts aplenty in response to COVID-19

T

he Coronavirus Aid, Relief and Economic Security (CARES) Act dwarfs prior efforts by lawmakers to take on economic crises and natural disasters. While key elements of this bill are untested — and can be seen as controversial — it, along with the Family First Coronavirus Response Act (FFCR) passed earlier in March, and the actions of the Trump Administration, have created numerous programs to help vended laundry owners and operators weather the crunch created by the COVID-19 outbreak.

Of interest to most owners and operators, the bill will provide one-time direct payments of $1,200 per adult with income below a $75,000 ceiling, $2,400 per married couples, and $500 per child. Above the ceiling, payments will be gradually reduced, disappearing after an individual’s income reaches $100,000.

The newly passed legislation, while providing zero-interest loans, tax breaks and other subsidies, includes an increase in the 12

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deductions for interest paid by a business from the 39% level created by the Tax Cuts and Jobs Act to 50%.

THE UNEMPLOYMENT CRISES For those self-serve laundry operations concerned with labor issues, the new law allocates $250 billion to expand unemployment insurance to more workers and lengthen the duration to 39 weeks (up from the normal 26 weeks). An extra $600 each week would be provided for four months.

To help bring back workers already laid off, the eight weeks of unemployment assistance will be retroactive to Feb. 15. But, that’s not all. Already on the books are the following: • Until Dec. 31, many employers will be required to pay sick leave to their employees. Fortunately, there is a compensating, 100% tax credit.

• An employee retention tax credit that is estimated to provide $50 billion to businesses that retain employees on their payroll will cover 50% of workers’ paychecks up to $10,000.

Employers will also be able to defer payment of the 6.2% Social Security payroll tax for two years.

• The Pandemic Unemployment Assistance program is aimed at selfemployed and contract workers who are typically not eligible for unemployment payments.

• Also included are incentives for worksharing and a program to cover a portion of lost wages for workers whose hours have been reduced, designed to incentivize businesses to retain workers by employing them for less time.

PAYING FOR IT ALL The CARES Act contained a number of programs and funding to help every self-service laundry business weather the financial impact of the novel coronavirus pandemic, including: • Zero-interest loans for businesses with fewer than 500 employees, loans that could be forgiven under certain circumstances such as not firing workers.

• Although mostly for businesses with

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by Mark E. Battersby

(Photo: © Unimagic/Depositphotos)

www.americancoinop.com

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The FasCard system focuses on automating your laundromat by eliminating the need for coin, handling cash collections, employee management, store marketing and much more. This is the perfect hybrid solution, designed to accept any combination of coins, credit/debit cards, mobile payments and loyalty cards, giving store owners all the tools they need to succeed in one, integrated system.

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FasCard offers a variety of loyalty programs that you can market to both coin and card customers

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more than 500 employees, the latest stimulus bill provides $500 billion to back loans. Any business receiving one of these loans will be subject to a ban on stock buybacks and curtailment of executive bonuses.

• More notably, the CARES Act earmarks $349 billion for loans to small businesses — funds that are to be spent on rent, utilities and payroll — which will be treated as a grant that does not have to be repaid. That’s right, loans of up to $10 million will be made available through Small Business Administration (sba.gov) Preferred Lenders, such as banks and credit unions. The government will pay off the loan balance if the business either does not lay off workers or rehires already laid-off workers.

• The SBA now has the authority — and available funds — to make over $7 billion in loans to qualifying small businesses via Economic Injury Disaster Loans. Each Economic Injury Disaster Loan assistance declaration issued by the SBA makes loans available to small businesses in designated areas of a state or territory. These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% and, in order to keep repayments affordable, the loans have term repayment periods of up to 30 years.

ness owners and operators recover financially from the tax impact of the pandemic and other disasters, especially when the federal government declares their location to be in a major disaster area.

Both individuals and businesses in a federally declared disaster area can get a faster tax refund by claiming losses related to the disaster on the tax return for the previous year, usually by filing an amended tax return. Regular business losses must be deducted from this year’s income — if there is any.

A net operating loss (NOL) occurs when a business has more tax deductions than taxable income in a given year. NOL carrybacks formerly generated a refund of taxes paid in earlier years that provided an often badly needed infusion of cash.

Today, most NOLs arising in tax years after 2017 can only be carried forward.

What’s more, for losses arising in taxable years beginning after Dec. 31, 2017, the NOL deduction is limited to 80% of taxable income (determined without regard to the deduction).

And, don’t forget, while the coin-operated, self-service laundry can’t get this tax break if it is a pass-through entity (such as sole proprietorships, partnerships or S corporations), their owners can apply their NOL on their personal tax returns. Regular corporations are, of course, taxed at the corporate level and the NOL carryforward is applied on the corporate tax return.

CORRECTING THE RETAIL “GLITCH”

ALREADY HELPING

When Congress raised the bonus depreciation rate to 100%, it limited the write-off to business property with a useful life of 20 years or less. Unfortunately, the Tax Cuts and Jobs Act made all so-called “qualified improvement property” as 39-year property and thus not eligible for bonus depreciation.

Now, Congress has defined qualified improvement property as 15-year property, which means 100% of the cost of improvements made to so-called “retail” property can be deducted in the year incurred.

What’s more, the way this change has been worded, it applies to all property acquired and placed in service after Sept. 27, 2017.

Thanks to the FFCR Act passed early in March, employers providing paid family and medical leave to their employees may claim a tax credit, a direct reduction of their tax bill rather than a deduction, that has been extended through 2020. There are similar tax credits for self-employed individuals.

As mentioned, the provision requiring employers to pay sick and medical leave to workers has been extended to include the 2020 tax year. However, employers with fewer than 50 employees are eligible for an exemption from the requirement to provide leave to care for a child whose school is closed or child care is unavailable.

If paid leave exists, owners and operators can take immediate advantage of the tax credits. The business can retain and access funds that would otherwise be paid

LOSSES Keeping in mind that “lost income” is not a legitimate tax deduction, other provisions in the tax law may help coin laundry busi14

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to the IRS in payroll taxes. If those amounts are not sufficient to cover the cost of paid leave, employers can seek an expedited advance from the IRS using a streamlined claim form.

SELF-HELP CORONAVIRUS SURVIVAL Many vended laundry owners and operators busy attempting to fathom the steady stream of new government programs, plans and benefits may be overlooking remedies that already exist.

For example, a pre-established line of credit allows the self-service laundry business to borrow in increments as needed, repay it and borrow again as long as the credit line remains open. Typically, the operation is required to pay interest on any balance borrowed and a lesser amount for having ready access to the unexpended amount of the line of credit.

And don’t forget those extended deadlines for both filing tax returns and paying taxes. Although the tax filing deadlines for many businesses have already passed, individuals (including vended laundry owners, operators and their workers) now have until July 15 to file. Best of all, if money is owed the IRS, delayed payments will be interest- and penalty-free for 90 days.

The help provided in this new legislation supplements many of the benefits created

by The Family First Coronavirus Response Act that became law earlier in March, and the actions of the Administration are complex and can create confusion. However, these voluminous new laws and programs, along with the existing provisions and programs, can mean the survival of the coinoperated laundry.

As the fight against COVID-19 continues, attention must be paid to new developments, with more likely on the way. As always, the ever-changing response to the pandemic and the complexity of the rules when dealing with its economic impact make professional assistance advisable. 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, Pennsylvania. www.americancoinop.com

4/10/20 8:35 AM

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Here for our customers s The COVID-19 pandemic has forever changed all of our lives.

ESD® is honored to support an industry that provides a critical and necessary service to those who need clean laundry. We want to thank those Laundromat store owners who have remained open for business in these difficult times and let you know that ESD® continues to support your efforts.

To show our support, ESD® would like to provide every card operated store owner with 500 generic money cards, either Vanilla (plain white) or generic print, at no charge. Personalized and custom money cards are excluded from this proposal. This offer is valid for both magnetic stripe and embedded chip money cards and is limited to a maximum of 500 cards per store owner, regardless of the number of stores or licenses utilized.

All card orders redeemed from this ad must be received by ESD® no later than 45 the print date. ESD® will process and produce orders when time and resources are Please contact ESD® with your store and license information for processing by e-mailing sales@esdcard.com, faxing to 215-643-4623, or calling 800-523-1510.

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HOW’S YOUR

INSURANCE IQ? Highlighting the unique coverage needed to protect a laundry business while staying cost-conscious

A self-service laundry faces risk—fire, liability, a worker injury and more—every day. Without the proper insurance protection in place, an owner might have a tough time recovering from an incident. A worst-case scenario could close the doors for good.

American Coin-Op invited four insurance providers with laundry industry experience to answer some questions the average store owner might have about protecting their investment: Q: What types of coverage are typical of a small-business insurance policy, and what special coverages might the average vended laundry owner want to explore?

Ann Hawkins, vice president, NIE Insurance: The basic components of a small business insurance policy are commercial property (building and/or contents), commercial general liability, loss of business income and equipment breakdown. Separate policies may be purchased for commercial auto and workers’ compensation.

[These] are typical of small-business insurance policies but the average vended laundry owner might also want to purchase bailee (coverage) to cover the clothing since so many laundries now do wash/dry/fold, commercial laundry and drop-off drycleaning. They may also want to explore utility services coverage for loss of power to their machines due to a covered cause of loss that happens away from the premises, such as a lightning strike down the block.

Larry Larsen, California Laundromat insurance broker: In addition to the basic coverage of liability and property, some customers elect to ensure for extended theft, money from bill changers, loss of income and a variety of optional and site-specific risks. In balancing between sufficient coverage and being “insurance poor,” many owners elect the basic coverage and mediate any potential losses by selecting a higher deductible.

Some Laundromat owners “insure” against losses by good management practices, including protecting bill changers with guards, alarms, cameras and well-trained attendants.

Larry Trapani, president, Brooks-Waterburn Corp.: Laundromat owners have some unique coverage needs. Here are the main ones to consider: Tenant Improvements — When you bought the Laundromat, did you buy an existing one or build one from scratch? If you are a ten18

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(Photo: ©Jirsak/Depositphotos)

ant in the building and do renovations to the space or a “build-out,” you are responsible for those improvements you make. Imagine if you do a $100,000 build-out and have a fire that destroys your Laundromat. If you don’t have the Tenant Improvements coverage, it would be a major gap in your protection.

Bailee Coverage, aka Customer Property — You do a fair amount of wash-and-fold service. If something happens to those clothes, you are responsible for them. Most Laundromats we protect have a minimum of $10,000 Bailee Coverage.

Hired & Non-Owned Auto Coverage — Do you make deliveries, or make deposits at the bank? If you do, is it with your personal vehicle or perhaps one of your employees’ vehicles? What if there is an accident and the business gets sued? Hired & Non-Owned coverage will protect your business in the event of this type of claim.

Money & Securities — Most Laundromats deal in cash. Make sure your policy has sufficient “Money & Security” coverage for both inside the premises and outside.

Adam Weber, president, Irving Weber Associates: Some of the more common coverages to review in your business owner’s policy are: • Business Personal Property, or BPP, covers the furniture, machinery, equipment, stock and all personal property owned and used in the business, as well as the improvements and betterments that you may have made to the premises (such as dropped ceilings, lighting, flooring, etc.)

• Business Income is coverage for loss of income due to a slowdown or temporary suspension of normal operations which stem from damage to the business’ physical property.

• Extra Expense is coverage for the additional costs you incur to continue running your business.

• Employee Dishonesty coverage protects the business from financial loss due to fraudulent activities of employees. It can also be employee theft of money or property.

• Equipment Breakdown coverage protects against loss due to mechanical breakdown of nearly all equipment in the business.

It applies to cost to repair or replace the equipment, or property damage caused by equipment breakdown.

• Water Backup coverage addresses water that backs up

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through sewers and/or drains. This is vital coverage for the laundry industry.

Most business policies do not cover sewer and drain backups, so it’s important that coin laundry owners check to be sure this is included in their policies.

Q: Are there any small-business insurance “myths” that have mistakenly come to be accepted as fact?

Larsen: Lots of “myths” exist because people do not read the terms of their insurance policy, which is a contract, until they have experienced a loss. Two common myths include the belief that Americans with Disabilities Act claims are covered by a Laundromat policy. A second one is that the money inside bill changers and coin boxes is automatically covered in a

Laundromat insurance policy.

Trapani: One of the biggest “myths” that many Laundromat owners believe is that their workers can be classified as a contractor or “1099” status. By any standard, your employees are just that, employees. They do not fit the IRS definition of 1099 and therefore are subject to workers’ compensation benefits.

Weber: A common myth held by the majority of policyholders is believing that “everything is covered,” that their property, their liability, and perhaps even their customers’ property, are all covered by their business policy. Coverage can only be “triggered” by a covered cause of loss, and the included and excluded triggers are spelled out in the policy. Policyholders should carefully review their policies to ensure that

COVID-19: Will Insurance Help?

W

ith the COVID-19 pandemic having kept many Americans isolated in their homes for weeks, Laundromat owners are no doubt feeling the economic pressures of limited—or even no—business. They could turn to their insurers for financial relief only to find out their coverage may not extend to disease outbreaks.

of the Laundromat would be considered a covered risk in a loss of business claim.”

Ann Hawkins, vice president of NIE Insurance, says a commercial insurance policy does not cover COVID-19.

Same goes for a “civil authority” claim in which a business cannot operate because a government entity closes an area, he adds.

“Most, if not all, insurance companies have an endorsement on their policies called ‘Exclusion of Loss Due to Virus and Bacteria,’” she says.

Most traditional property policies exclude loss or damage resulting from a virus, disease, pathogen, or contamination, says Adam Weber, president of Irving Weber Associates.

“Policies will generally include a definition of what is to be contemplated within the scope of the exclusion,” he says.

“While it is far from standard in the property insurance marketplace, following similar virus outbreaks from the recent past (SARS, MERS, Ebola, etc.), a few insurance carriers have introduced an additional coverage for communicable disease.”

“It is unlikely that any standard or even expanded Laundromat insurance policy would have a named risk of a pandemic, including a viral pandemic,” says California Laundromat broker Larry Larsen.

“It is also unlikely that the voluntary closure

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“In order to trigger business interruption coverage, there must be direct physical damage to your premises (like a fire),” says Larry Trapani, president of BrooksWaterburn Corp. “Closing for the virus is not considered ‘direct physical damage’ and therefore no coverage is provided.”

Hawkins agrees: “This would only apply if there was direct physical loss or damage, caused by a covered cause of loss, that triggered the civil authority action. COVID-19 is not a covered cause of loss.”

If the COVID-19 outbreak has impacted your business, Weber says it’s important to proactively engage with your insurance broker and insurance carrier to discuss anticipated loss exposures and potentially relevant coverages.

“In the event there is a potential recoverable claim, it’s important to maintain detailed records and invoices of cleanup and response expenditures,” he says.

“Businesses should also closely monitor business interruption impacts and extra expenses that may be incurred.”

ACO This sidebar is for informational purposes only and should not be relied upon as legal advice. Contact your insurance broker and/or carrier with questions about your situation.

their exposures are adequately insured.

Another myth is that property limits remain adequate from year to year. These limits should be reviewed every year (at renewal or when adding/replacing property) to ensure they represent adequate values per the policy provisions. For example, if your policy includes a “replacement cost” provision, the property limits should represent the cost to replace the property in the event of a total loss. If the policy includes a 90% co-insurance clause, the property limits should represent a minimum of 90% of replacement cost value to satisfy the policy provision. Property limits deemed inadequate at the time of loss will likely affect how the loss will be settled, and penalties will be applied.

Hawkins: One small-business insurance myth is that all insurance companies give credits for burglar alarms and video surveillance. I find that not to be the case because when a loss occurs, often the surveillance and/or alarms were not on at that particular time. More recently, owners seem to be able to retrieve their video surveillance in more slip-and-fall claims. This is very helpful, especially if it shows the actual event.

Q: Where are the greatest areas of risk in and around the average vended laundry?

Trapani: In the Laundromat industry, there are two major types of claims: Dryer Fires — Almost every property claim we have is a result of dryer fires. They occur for two main reasons. The first is customers putting flammable items in the dryer.

For example, greasy towels or rags catch fire, especially in the heat of a dryer. The second reason is poor maintenance on the dryer ducts. With a buildup of lint over time, it doesn’t take much heat to cause a fire.

Slip-and-Fall Liability — Almost every Laundromat owner has had a customer slip and fall while in their store. These can be either a minor situation or they could be injured more severely. Either way, in most cases, it involves making a claim to the insurance company. Too many of these claims will result in a higher premium or, worse, a non-renewal of your policy.

Weber: When looking at the risks involved in operating a coin laundry, probably the biggest risk would come from liability, meaning someone getting hurt on the premises due to negligence, such as someone slipping on water on the floor, or mats causing tripping, etc.

Also, large storms can be a problem, www.americancoinop.com

4/10/20 8:39 AM

causing damage to the premises, glass and signs as well as causing the business to be closed for a time, with loss of income.

Hawkins: The greatest areas of risk in and around a vended laundry are, of course, slip-and-fall or trip-and-fall, and dryer fires. The former can be minimized by keeping all floors clean and free of water, debris, broken floor tiles and crinkled rugs or mats. Post “Wet Floor” signs when necessary, such as during a rain or after mopping. Keep machines in good working order so they do not leak. Also, keep the sidewalk and parking lots free of debris and potholes.

Dryer fires can be minimized by removing lint on a daily basis and cleaning vents and the area behind dryers weekly. Also, post warnings about not drying oily rags or uniforms, and cleaning pockets before drying.

Larsen: Poor management related to operations includes improperly done self repairs, improperly installed equipment, and leaking or non-functioning equipment, which can lead to water leaks and the most common liability claim in Laundromats, a slip-and-fall accident. Failing to properly

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remove lint can lead to dryer fires, with fires being the most common property loss claim for Laundromat policy holders.

Q: What is the single biggest mistake that vended laundry owners make when it comes to insurance?

Weber: Business owners should be reviewing their insurance policies on an annual basis to be sure they have adequate coverage. They should keep in mind any changes made in the recent past with regard to equipment values and over limits that may need adjustments, as well as review the policy for any possible changes the carrier may have made to its policy offerings.

Hawkins: The biggest mistake is not insuring to value. You must think of the value of your equipment in terms of replacing it all with new equipment. If you had a total loss, you would need to buy new equipment and pay for delivery, installation and tax, and all of that is covered under the business personal property limit. Don’t assume you can replace current equipment with used equipment. That often does not work due to the difference in the current equipment and what’s on the market now.

Larsen: They overinsure or underinsure and fail to read and understand the provisions of the policy they purchase. They read the policy when they encounter a loss, and often opine, “What did I buy insurance for,” when they discover they have experienced a non-covered loss. All Laundromat owners should read their policies each and every time they renew and ask their agent what each covered risk and exclusion would mean to them.

Trapani: The single biggest mistake Laundromat owners make when it comes to their protection is only carrying enough coverage to satisfy their loan. The lender may loan you $150,000 for the purchase of equipment. It wants to make sure you have enough coverage to pay it back in case of a fire. That’s all well and good, but what about the investment you made? Perhaps you put in another $100,000 of your own money. If you had a claim, you want enough coverage to be able to reopen the business, not just pay off the lender. ACO Keep an eye on AmericanCoinOp.com during the month of May for more content to boost your insurance IQ!

MAY 2020

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(Photo: © Depositphoto/maxxyustas)

SOCIAL MEDIA EXTENDS CUSTOMER EXPERIENCE

Jennifer Butzlaff

So much is made today about the need to provide an elevated customer experience. Owners are increasingly focused on providing greater amenities, offering more services and leveraging a high level of technology — both the customer-focused variety as well as the owner-focused.

However, the acme of the customer experience doesn’t begin and end when customers cycle through your store. If your laundry is ahead of all competitors by providing something truly unique and nobody but you and a handful of folks know about it, you’re not exactly going to own your market.

BEYOND SIGNAGE When you opened your store, location was of the utmost importance. You wanted exceptional visibility in a high-traffic area. You made eye-catching signage a priority to make sure passersby knew exactly what your business was and how to find it. Let’s face it, that’s now just the entry point — as basic a need as water and gas.

Invariably, the focus will extend into social media.

But before jumping into creating your market-shaking presence in social, make sure you don’t ignore the online essentials. Think about your web presence. Your vended laundry’s website doesn’t need to have hundreds of pages and maintain a complicated structure. You just need people to find your business when they search.

The site should look professional, offer images and detail your offerings, as well as what sets your Laundromat apart from the competition. Don’t forget, many studies show 70-80% of consumers research a company online before visiting it and making a purchase.

Next, don’t forget that Google behemoth. If you’re building your Facebook strategy before setting up a Google My Business account, you’re doing it wrong.

Google is your business’ virtual storefront. And by the way, it’s free. It’s also super easy to set up and you should include your Laundromat’s hours, phone, e-mail and website address. If you are having any trouble setting up your account … well, Google it, of course, to get tips, tricks and helpful guides. If you really want to go the extra mile, consider adding a Google Virtual Tour.

LET’S GET SOCIAL Let’s say your laundry has a solid website and is getting pulled up on Google searches. Now, it’s time to leverage social tools to build your audience of raving 22

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fans. Facebook is definitely the place to be. Proof, you say? As of January, Facebook had 1.66 billion active daily users. Use of the platform will, no doubt, streamline communicating and engaging with your customers.

It’s also a fantastic way for customers to post their online reviews, which are pulled into Google and will help bolster your rank on that search engine.

Once your customers begin frequenting your establishment, Facebook is likely where they will go for the most up-to-date information. Your website remains important, but Facebook is simple with updates appearing automatically in their feed.

In building your presence and momentum, consider using your store’s guest Wi-Fi and adding a splash page to promote your Facebook page. You’d be surprised what results a simple “Like us on Facebook” message can get. Make sure and add the same tag on all your marketing materials and website.

GIVE PEOPLE A REASON TO FOLLOW In the online marketing world, content is king. Think about the brands, companies and individuals you follow socially. You do so because there’s a payoff — you’re getting something out of the interaction.

So, as you enter into this social world, plan out a calendar of posts — at least a month’s worth. Regular updates help keep your audience engaged. Think about your clientele and focus content around them. As a provider of laundry services, think about: • Stain removal tips. You could poll your followers on their toughest stains or even their tips for dealing with such stains.

• Laundry processing, including how to sort loads and why. Walk customers through the temperatures and how they relate to geting the best results.

• Teach about technology. Does your equipment have cycle modifiers? Craft a few posts that looks at each one and why a customer would want to use it.

• Ask questions. Increasing your social presence and ultimately benefiting your business is about twoway communication.

• Cross-marketing. Work with nearby businesses to build followers for both entities. Sharing content and highlighting each other is a great way to gain followers. Think outside the box. How about offering laundry service for a local spa or nail salon in return for them promoting your Laundromat? www.americancoinop.com

4/10/20 8:44 AM

• Online-store connection. Something as simple as a kid’s coloring contest could build traffic both online and in your store. Use Facebook to promote the event. Have customers get the coloring sheets at your store and return them there. Then, post the winners on Facebook. Better yet, engage your audience to vote for winners.

• Promote specials. A key component to promoting your business through social is offering promotions. Let customers know that your followers learn of your specials first through Facebook.

• Service alerts. The COVID-19 crisis has showed us just how fluid things can be. Many store owners have used their Facebook pages to communicate they are open as “essential businesses” and what their new store usage guidelines are to protect customers and staff.

FOR THE ADVANCED Those adept at truly leveraging social’s value will unite their social presence with marketing efforts.

For instance, utilize the Facebook ad

platform to understand your customer demographics better by uploading a customer list obtained from your payment system or Wi-Fi splash page (you don’t have to run ads to use this tool).

Create custom audiences on Facebook (your wash-dry-fold clients, for example) and encourage them to come back or notify them of seasonal specials on washing quilts in spring or fall. You might also want to create “lookalike audiences” using your customer list to target new customers who share similar profiles with your best customers.

FINAL THOUGHTS The customer experience is more than just what happens inside your store. Social media is the tool that extends the reach of your business and enables you to build stronger connections with your customers.

We all want to do business with people we “know” and brands we feel a connection to. Social media practices and engagement give you the means. The goal is to create a natural two-way conversation with customers and prospective customers.

From there, it’s about leveraging advanced marketing tools to dial in content and messaging to specific customer types. This is where a robust Customer Relationship Management (CRM) system becomes even more important today.

You can’t afford not to know your customers and how they interact with your Laundromat. Understanding their habits, both in the laundry and online, will help you become a better marketer.

Finally, a better customer experience is the new norm in our business. Like it or not, it’s expected, and people will pay more for it. So, while that may be a new(er) trend, the foundational element is the same — it costs less to retain a good customer than to obtain a new customer. Making sure they are bonded to your brand is immensely important.

ACO Jennifer Butzlaff is marketing business partner for the North America Laundromat segment at Alliance Laundry Systems. She has several years of Laundromat and social media experience and can be reached at jennifer.butzlaff@alliancels.com.

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«

PRODUCT NEWS CONTINENTAL GIRBAU INTRODUCES AUTOMATIC INJECTION SYSTEM FOR VENDED LAUNDRIES

Continental Girbau’s Express Clean™ automatic injection system for vended laundries works by automatically dispensing specially formulated detergents, brighteners and softeners into compatible washers to produce excellent, consistent cleaning results in less time, the company says.

A new revenue generator for laun-

dry owners, Express Clean works seamlessly and automatically with any washers featuring automatic chemical injection capabilities, according to Continental. In doing so, it eliminates the hassles associated with manually lugging and loading detergents. In turn, customers enjoy high-quality wash results in less time with less hassle. Simultaneously, owners enjoy accelerated customer turnover.

“Laundry owners love Express Clean because it makes their stores unique within a competitive marketplace,” says Vice President of Sales Joel Jorgensen. “The system is easily connected to washers and requires very little maintenance. It’s especially convenient when used with large-capacity machines, adding customer convenience and store owner speed and profitability; a true win-win for all.”

Encased in a clear plexiglass box

with LED lighting signals that coordinate with product pump activation, Express Clean consists of a trio of eco-friendly cleaning chemicals— Express Suds™ detergent, Express Bright™ color-safe booster and Express Soft™ fabric softener—in easy-to-handle, gallon-sized containers. All three are safe to use on any fabric type, the company adds.

Offering simple installation, Express Clean is available as a singlewasher delivery system or optional dual-washer delivery system, accommodating machines installed backto-back on a bulkhead with a single Express Clean box.

Engineered for years of constant use, Express Clean offers a commercial-grade delivery box, patented nospill dispensing system, dependable Brightwell pumps, and long-lasting multi-colored LED lighting. Laundry attendants simply replace gallon containers as needed.

www.cgilaundry.com |

800-256-1073

«

R&B WIRE PRODUCTS LAUNCHES LINE OF ANTIMICROBIAL POLY TRUCKS

R&B Wire Products has launched a new line of antimicrobial poly trucks, adding to its extensive family of antimicrobial material-handling products. Infused with a proprietary broad-spectrum antimicrobial additive, the new poly trucks are designed to inhibit the growth of microbes on the poly surface, providing the cleanest surface and trucks possible.

This upgraded option is available on all sizes and models of R&B poly trucks, in blue, green and white.

The new line is being added to R&B’s already expansive line of antimicrobial products, including wire laundry carts, vinyl basket trucks, privacy screens, hampers, hamper bags, covers and liners.

“Incorporating the antimicrobial additive into the material of these products provides an unprecedented level of cleanliness, not just in the short term, but for the lives of the products themselves,” says Frank Rowe, vice president of sales.

“Another key advantage of our antimicrobial line of trucks, both the poly and the vinyl, is the optional Asset Protection air-cushion bumper feature. The bumpers on these trucks help protect walls, doors, doorframes and equipment from preventable damage, keeping facilities looking their best while minimizing repair and maintenance costs.”

“With the heightened focus on sterilization in the marketplace at

this time, we felt it was necessary to expand our offering of microbeinhibiting products,” says Chief Operating Officer Jeff Gervais.

www.rbwire.com | 24

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800-634-0555

www.americancoinop.com

4/10/20 8:46 AM

TOP FIVE FINANCING QUESTIONS TO ASK YOUR DISTRIBUTOR

Pam Kuffel

When you’re thinking of financing a laundry project, contact your distributor first! They work closely with lending institutions to offer flexible financing programs designed to meet different customer needs.

Moreover, the distributor is your local laundry expert.

Partner with them early on your laundry development or equipment replacement projects.

When it comes to financing, ask them the following: 1. What finance programs are out there for me?

Know that there are multiple finance programs available and your distributor will help you secure the plan that fits best with your project and background. Be forthcoming with your distributor about your expectations and needs.

2. How will my new investment work for me?

Here again, your distributor works with you to determine your project’s profit potential by developing a proforma that details your income estimates using the new equipment mix, expenses, cash flow and return on investment. The proforma is an essential part of your financing application.

3. What are the finance package requirements for my specific financing program?

Your distributor will provide everything that’s required for your financing application in the form of a checklist. Every item on that checklist matters and must be completed and submitted, or there will be delays in processing the financing request. Depending on your program, there can be from two to 15 required items.

4. When will my equipment be shipped?

Once again, this question can be answered by your distributor. Generally, a document is issued to the distributor from the lending company indicating all finance documentation has been signed. It’s typically after receipt of this document that equipment is shipped.

5. When is the first payment due?

Generally speaking, the first payment is due 30 days after funding.

ACO Pam Kuffel is director of strategic business efficiencies and solutions for commercial laundry equipment manufacturer Girbau North America.

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POINTERS FROM PAULIE B

GET THE BIGGEST BANG FOR YOUR RENOVATION BUCK

Paul Russo

FOLDING TABLES Let’s compare granite/quartz folding tables vs. laminate. A major home improvement store sells custom quartz countertops for $50 per square feet, custom laminates (think Formica) for around $27.

So if you upgrade to quartz or granite, customers will rave about your folding tables to their friends for many years. At somewhere around double the cost, they will last far longer than any laminate. Amortize that extra cost over the years and it becomes a small number for a longtime silent partner selling “luxury value.”

On the other hand, if you are really looking to shave initial costs, the same home improvement store sells pre-made 8-foot laminate countertops with integrated backsplashes that don’t look too bad.

REBUILT MACHINES A cost savings can be had by choosing rebuilt machines.

Take care to find reputable vendors and ensure that equipment marketed as rebuilts aren’t simply used machines that have been spruced up cosmetically.

Also, keep in mind what year and model the rebuilts are. There’s little cost savings to be had if the rebuilts are too old to allow you to change water levels or number of baths. Some rebuilt models are for sale because they caused trouble for previous owners. I also never found any warranty for a rebuilt machine that could match a new machine’s.

Then, there are the tax benefits of buying new equipment over used provided through Section 179 expensing and Section 168 depreciation.

RENEWED COSMETICS Washers can get new decals, buttons, knobs, etc.

You know what also spruces up a front loader? Install new door glass gaskets. It can make a nice difference.

So does changing the soap box lids, if they are rubber 26

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(but beware of cheap generics). If you want to go really cheap, remove the gaskets and soap lids and soak them in a 50-50 chlorine bleach/water solution overnight.

Even if your equipment has stainless steel front panels, consider that you may be able to buy new panels with color.

Years ago, some creative mat owners used to send their front panels out to an auto body shop to be cleaned and painted. I also did that but changed the panel color from tan to white. Guess what happened? Many of my customers thought I put in new equipment!

Wait a few years and you can put the stainless steel panels back on. Don’t forget to add new decals, buttons and knobs again to give the impression you upgraded to new equipment.

An old dryer rehab trick is to close your store for a day and have an appliance painter mask off the entire bank of dryer fronts and spray paint them. Keep in mind that the paint will not last as long as the machine’s original powder coatings.

I also called my dryer company and found out I could buy a kit of all-new powder-coated front panels and hardware. It was pricey but still much cheaper than new dryers, yet the panels and hardware made them look brand-new!

DON’T FORGET THE WALLS Walls can take a beating in Laundromats, especially the bottom 4 feet where carts get slammed into them. A popular solution is to install aluminum diamond plate panels. They look great, will last for years, and aren’t too expensive.

Another alternative is peel-and-stick vinyl tiles. They’re easy to install, are durable and somewhat flexible, and should last years if applied correctly (I would still apply good-quality, full-spread adhesive to the wall, depending on its material).

Think creatively. Perhaps install them diagonally.

Or you may want to put the new vinyl “stacked rock” panels on a non-contact wall.

I’ve seen a lot of New York City stores with fiberreinforced panels. They’re cheap, are easy to cut, and can be installed over different types of walls. The panels are durable, waterproof, easy to wipe down, and come in

▼

When you renovate your laundry, getting the biggest bang for your buck doesn’t necessarily mean the cheapest initial costs, but how much value your mat gains over time for your money initially spent.

Sometimes things that cost more in the beginning will save you lots of money over time.

www.americancoinop.com

4/10/20 8:50 AM

Every FREE monthly episode offers: • Topics of specific interest to self-service laundry owner/operators like you • Engaging industry-specific conversation with an expert • Business-building tips you won’t find anywhere else • Convenience of listening anytime, either online or downloading for later • Information and insight to get a leg up on competitors – give us a listen!

NEW!

Answering the Competition

Replacement Parts

Dave Menz, owner of four Queen City Laundry stores in Cincinnati, discusses how to respond when a new competitor enters the local market.

What should every self-service laundry keep on hand in the event a piece of equipment goes down?

Greg Reese of CLEC distribution talks hoses, valves, igniters and more in this episode.

Building Customer Loyalty

Attended vs. Unattended

Promotions and incentives are often used to draw customers to a laundry. Matt Miller, president of equipment distributor Coin-O-Matic, envisions a more comprehensive loyalty-building approach.

There’s no magic formula when it comes to choosing a coin laundry’s operational model but certain factors can affect the call.

Mike Enz from Dexter distributor Laundry One compares and contrasts the two.

Listen in at: americancoinop.com/podcasts

ACO Podcast Full Page 0520.indd 1

4/9/20 2:04 PM

POINTERS FROM PAULIE B various colors (white seems to be the best).

Try adding inexpensive unique designs such as murals or racing stripes around the store. Can’t afford ceramic tile walls? How about just doing ceramic tile accent areas such as vertical support beams, or tiling just one wall?

Hanging mirrors is another great bang for the buck, especially if you have a small mat. A couple of large mirrors can make your mat appear bigger and classier.

FLOORING Plain or polished concrete is probably your cheapest route for a durable floor, but it’s a plain look and, when polished, can be slippery when wet.

While vinyl composite tile (VCT) can look terrific these days, detergents and water can eventually loosen up the glue. Keep in mind that you will also want a waterproof subfloor.

Some store owners swear by carpet if they are high-quality tiles that can be replaced if stained. Make sure that what you put down is resistant to bleach or you’ll be wasting your money.

Ceramic or porcelain tiles cost more but come in many styles and colors. Make sure you choose a tile whose color and design go all the way through the full thickness of the tile. A high-traffic area can wear down the surface layer.

Also, some commercial tiles will come in three textures for the same tile: 1) polished and shiny (gorgeous but a slip hazard), 2) rough texture (hard to mop completely clean) and 3) slightly rough or flat, non-glossy texture. I always went with option 3.

Gym flooring was brought to my attention by a good friend who owns multiple mats in Florida. He says many newer gyms have highly durable floors made of rubber, so he tried it. He tells me they are slip-resistant, waterproof, take lots of abuse/traffic, come in many styles/colors, are great sound insulators, will help cushion the fall if someone slips, and will look like new for many years if properly installed.

STOREFRONT If you are taking over a “disaster” mat, I highly recommend you put in a brand-new storefront with signs, and automatic doors if you can afford them. If any business requires people to carry heavy loads when coming and going, it’s the Laundromat business, yet mats are woefully behind many other retailers in this regard.

A new storefront can cost you some bucks but the bang is terrific for a mat turnaround! This will tell everyone who passes that it’s no longer the same store but now has a new owner who obviously knows what they’re doing. Top it off with a big sign that reads, “Under New Management.”

If you are taking over a well-run mat that people are already happy with, redoing the storefront may not be needed. It could even disappoint some people by signaling there is new management. If it were me, I’d keep the new ownership quiet until the customer base trusts you, but it won’t hurt to clean things up a little.

If you’re renovating a store you’ve owned for a while, be sure to let customers know.

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(Photo: © Depositphoto/innovatedcaptures)

SEATING AND OTHER AMENITIES There is some great commercial furniture out there by sellers to our industry. Or, you may be able to find some decent-quality chairs and benches at one of the big-box home improvement stores.

I recommend buying benches that seat no more than three people. If they are longer, they should have armrests at the midpoint to separate people, and discourage individuals from sleeping on them.

A customer’s desire for Wi-Fi has already surpassed TV watching, so you’ve got to catch up on that one if you don’t offer the amenity. People spend at least an hour to 90 minutes in your mat— they want to go online.

And if you have some extra space, put in a safe, secure area where children can play. You want to attract big families, who spend a lot of money in Laundromats.

THE TECHNICAL STUFF If you’re redoing the plumbing, install quarter-turn ball valve bibs behind the washers rather than the old, screw-down gate valve hose bibs. Ball valves are much easier and quicker to open and close in case of emergency.

While you’re at it, if you’re planning to add more washers in the future, you will need more plumbing capacity. It costs much less to simply go up another size now than to have to redo things in five years; you’ll pay for the labor once instead of twice.

In the meantime, your washers will fill up a little faster, thereby speeding up customer throughput in your mat.

This planning also applies to gas lines, boilers and electrical service. And if you’re thinking of possibly adding air conditioning or supplemental heating, now is the time to at least install the extra infrastructure you’ll someday need.

It’s always been important to get the biggest bang for the buck.

Consider these suggestions when renovating and maybe one or more will boost your project’s value.

ACO Paul Russo owned and operated multiple Laundromats in New York City for more than 40 years before retiring in 2018. He’s a regular on the Coin Laundry Association’s online forum, posting under the pseudonym “Paulie B.” You’re welcome to direct any questions or comments for Russo to Editor Bruce Beggs at bbeggs@ atmags.com. www.americancoinop.com

4/10/20 8:50 AM

It’s not just print anymore.

S TIAL E I R D LAUNVE ESSEN PRO ic andem uring pnavirus d n e p main oclean of coro d to re Allowe public stay to help

Laundries Prove ESSENTIAL 0 202

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in Combating Coronavirus Outbreak

(Photo: iStock.com/Gilnature)

AY : M I0D0E5 TERS: IYN S2 S POIN PAULIE’ BIGGEST I THE S : ET 9 UR G N -1 I FOR YO COVID ESS BANG TION BUCK N K AT A BUSI RENOVA A LOO S IN TO E ID CE AL GU ADVAN ENT SURVIV VIRUS M EQUIP LOGY COM O OP. TECHN OIN ANC C 0 I 4/10/2 MER W.A WW JUL DE:

ALLOWED TO REMAIN OPEN DURING SHUTDOWN TO HELP PUBLIC STAY CLEAN OF COVID-19

By Bruce Beggs, Editorial Director PM

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10:32

t the time of this writing, a coronavirus outbreak has many Americans isolated in their homes and nonessential businesses closed. Half a million people have fallen ill and nearly 19,000 have died. Many jobs have been lost, and the U.S. “stay at home” economy has stalled. The true personal and financial toll the COVID-19 pandemic takes on our country won’t be known until well after the danger has passed.

To date, washing, cleaning and sanitizing—along with “social distancing”—have been fundamental in reducing the risk of getting sick and to ending the crisis.

And Laundromats and laundry services— plus the manufacturers and distributors they count on for equipment, parts and support—have proven essential in the day-byday fight against an unseen, invasive enemy.

ORIGIN OF AN OUTBREAK An outbreak of respiratory illness caused by a novel coronavirus was first reported in China in December. COVID-19 can spread 10 AMERICAN COIN-OP MAY 2020

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from person to person through coughs or sneezes, and, as of April 10, there is no vaccine. Within a few weeks of the initial report, COVID-19 cases were identified at various sites internationally, including the U.S. The virus spreads easily, particularly where large numbers of people congregate.

Around 80% of confirmed cases are mild and don’t require hospitalization. Another 15% of those infected become severely ill, and the remainder are considered critical.

Most deaths in this outbreak have been in older people and those with underlying health issues.

With no cure in hand, the healthcare community’s response focused on prevention. We are reminded to wash our hands regularly and thoroughly, cover our coughs and sneezes, stay home when feeling ill, and to clean and sanitize hard surfaces and frequently touched objects, like light switches or doorknobs.

By March 11, the World Health Organization declared a pandemic. Two

days later, President Donald Trump declared a national emergency and his administration issued “social distancing” guidance to limit public gatherings.

California was the first state to issue a directive designed to keep people at home unless leaving for necessities. As this issue went to press, virtually every state had some sort of “shelter in place” or “safer at home” order or initiative. People were directed to work from home when possible, and nonessential businesses were ordered to close temporarily in many states.

LOBBYING TO SERVE As state and local authorities moved to close or restrict businesses, the Coin Laundry Association (CLA) launched a public relations campaign in an effort to keep Laundromats open during the outbreak.

Its statement circulated in mid-March targeted state governments and mainstream media by requesting that authorities designate all Laundromats as “essential services” www.americancoinop.com

4/10/20 10:43 PM

that provide a basic health service by serving millions of families with a safe place to wash and dry their clothes every week.

“Access to services is particularly important for Laundromat customers who are often low-income families with few alternatives to the neighborhood Laundromat for clothes washing,” the CLA statement read.

Initially, when governors began issuing business closure orders, laundries weren’t always listed as being exempt. Often, the state officials relied on an “Essential Critical Workforce Infrastructure” advisory list prepared by CISA, a division of the U.S. Department of Homeland Security. It was intended to help state and local governments ensure continuity of functions critical to public health and safety, as well as economic and national security—and laundry services didn’t make the cut.

But an ad hoc alliance that CLA President/CEO Brian Wallace described during an association webinar as “our industry manufacturers, a couple of store owners and CLA” advocated at the federal level and successfully petitioned to have laundries added to the types of businesses officially deemed “essential.”

American Coin-Op polled store owners about the pandemic in early April and many respondents reported they take great pride in their laundries being recognized in this way but also expressed concern about the added customer service and safety issues the pandemic raises and how to safely conduct business. A few owners said they had decided to close for the time being.

OPEN AND ADAPTIVE Adapting to government guidances on cleaning and social distancing has meant additional challenges for laundry owners.

Some of the special measures they’ve taken, based on the early April survey, have been cleaning/sanitizing laundry equipment and store fixtures more often; posting signage about personal hygiene and safe laundering guidelines; limiting the number of people in the store at any one time; promoting social distancing by blocking off areas/machines; increasing advertising or social media efforts; and emphasizing wash/dry/fold or pickup/delivery service.

Less than 5% of responding store owners said they were taking no special measures.

Neal Shapiro co-owns WashTime on Fullerton, a fully attended 6,000-squarefoot store in Chicago, with his wife Kate.

When restrictions designed to prevent gatherings took hold in his state, he knew his laundry “can’t just be business as usual,” he relates during a CLA webinar.

“So we began to figure out what we could do to minimize the density in our Laundromat and try to work around the ideas of social distancing at 6 feet, only so many people in the store at a time.”

Some stores are asking customers to wait in their cars or at home while their loads are being washed or dried. WashTime on Fullerton is among those that decided self-service customers could no longer fold there, thus shortening the time they remain inside. Shapiro’s store, previously open 24/7, also cut back its operating hours.

“It’s not great for our bottom line but it’s what we had to do to make sure that everybody that came in was safe,” he says.

Early on, Steve Lamiell, owner of the North Canton and Lake Cable Laundromats in Ohio, had his staff sanitizing high-touch areas and had posted flyers asking customers to wash their hands,

COVID-19 Resources Specific to Laundry Services American Coin-Op — https://tinyurl.com/americancoinop Coin Laundry Association — https://tinyurl.com/CoinLaundryAssn Dexter Laundry — https://www.dexter.com/coronavirus Huebsch — https://huebsch.com/covid-19 PWS The Laundry Company — https://tinyurl.com/PWSCovid-19 Speed Queen — https://tinyurl.com/SpeedQueenCOVID-19 Spynr — https://tinyurl.com/SpynrCOVID-19 (If your company has developed FREE COVID-19 resources for laundry owners, contact Bruce Beggs at bbeggs@atmags.com with details.)

American Coin-Op created an information sheet listing laundry care guidelines relative to COVID-19. It’s available in English or Spanish and can be downloaded at https://tinyurl.com/ACOproper.

cover coughs/sneezes and to not enter the premises if they felt ill. He also offered touch-free hand sanitizers.

“We realize that our efforts aren’t going to stop the (COVID-19) spread; however, we believe it will help prevent the spread and show our customers as well as our team that we care,” he said in the days immediately after social distancing guidelines took hold.

WORK TOGETHER WHILE WE WAIT Understanding the added stresses that the medical emergency and isolation safeguards have created, some businesses offered to do laundry free or at little cost for senior citizens, doctors and first responders. There were drives to collect masks, gloves and other supplies for first responders and healthcare workers.

There are no doubt many other examples throughout the industry of businesses and organizations doing what they can to serve their communities, whether it involves laundry services or not.

Manufacturers, distributors and other businesses linked to the laundry industry have shared information about the best ways to deal with a pandemic. Many have added or adjusted resources to better serve laundry owners, mindful that their own operations and staffs are subject to the same pandemic risks.

American Coin-Op created a flyer (below) that store owners can print and post to encourage customers to launder often and the proper way.

The healthcare community worldwide is working on a vaccine to control the coronavirus and bring this pandemic to an end but how long that will take to accomplish remains to be seen.

In early April, American Coin-Op asked store owners how long they thought COVID-19 would directly impact their business. Thirteen percent believed it would be less than 90 days, 50% said it would be longer than 90 days, and the remaining 37% said they didn’t know.

“Pray that it ends soon with minimal loss of life,” a survey respondent wrote of the pandemic. “We can rebuild our businesses and the economy. We cannot bring back our friends and family that have succumbed to this virus.”

ACO

www.americancoinop.com

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MAY 2020 AMERICAN COIN-OP 11

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

The independent voice of the self-service laundry industry

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ADVERTISERS’ INDEX Advertiser

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AC Power ................................................ 23

Imonex Services ........................................30

ACE Commercial Laundry Equipment .........25

Laundry Concepts ....................................19

American Switch ......................................31

LG Electronics ........................................IBC

Card Concepts ..........................................13

Metro Laundry Tech Corp. ......................31

CleanCloud ................................................9

Monarch Coin & Security ........................21

Cleaner’s Supply .......................................31

Mountain Electronics ...............................30

Continental Girbau ....................................1

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

CryptoPay ................................................30

Speed Queen ...............................................3

ESD Inc. ...................................... 16-17, BC

Tjernlund Products ...................................30

Gold Coin Laundry Equipment ..................7

Vending Machine Sales .............................30

Gulf States Laundry Machinery Co. .........15

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

HHC Electronic Service ........................... 31

WASH Commercial Laundry ....................30

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www.AmericanCoinOp.com MAY 2020 AMERICAN COIN-OP 31

4/10/20 3:26 PM

NEWSMAKERS HERMES COMMERCIAL LAUNDRY EQUIPMENT HIRES MATTOCKS Distributor Hermes Commercial Laundry Equipment has named Robert Mattocks its vice president of sales. He will report directly to company owner Mark Wilkins.

Most recently the national channel sales manager for Card Concepts Inc. (CCI), Mattocks brings over 15 years of account management and sales experience to his new post.

“Robert carries the best-in-class attitude that Hermes is built on,” says Wilkins. “He has an excellent reputation in the industry and demonstrates how much he cares about customers’ needs. We are excited to have him help drive our sales efforts forward.”

Robert Mattocks “Continuing the rapid growth of Hermes will be a big challenge,” Mattocks says, “and I feel we have all the pieces in place to take our initiatives to the next level.”

Hermes—based in Bloomington, Illinois—distributes equipment for Speed Queen, Yamamoto, Sankosha, B&C Technologies and several other lines.

GIRBAU N.A. PROMOTES KUFFEL TO SENIOR MANAGEMENT Girbau North America (GNA) recently promoted Pamela Kuffel to director of strategic business efficiencies and solutions. In her new role, she is responsible for partnering with leadership to identify and execute solutions that drive business value and result in sustainable and more profitable performance.

Additionally, she leads initiatives to guide key business decisions and support strategic initiatives.

Since she joined GNA in 2004, Kuffel has managed both the finance department and international sales, as well as served as the administrator of Salesforce, GNA’s customer relationship management (CRM) platform.

“Pam has been key to the growth and development of GNA’s international sales market and an instrumental part of our sales and finance team,” says GNA President Mike Floyd. “Not only did she contribute to the development of CG Financing LLC — to provide finance solutions to our customers and end-users — she has been key to growth of GNA’s international sales market. We are excited to move her to the next level in her career, where we Pamela Kuffel are confident she will excel.”

Kuffel has a bachelor’s degree in finance from the University of Wisconsin Oshkosh.

LAUNCH OF CLEAN 2021 BOOTH SALES DELAYED In early April, Clean Show management informed previous exhibitors by email that the opening of booth sales for the June 2021 event in Atlanta was being delayed.

“Due to the COVID-19 pandemic and its economic effects, we feel it is in the best interest of our industry to delay the launch of Clean Show 2021 booth sales for the time being,” the message read. “We project sales will now open in June, but will continue to monitor the situation and respond accordingly.”

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Further, organizers said they understood that many companies were having to reassess their financial situation on a weekly basis and that Clean aims to “serve as a platform to reinvigorate the industry once this crisis has ended.”

The Exhibitor Prospectus is scheduled to be mailed this month and will be sent again via email prior to sales opening. There is no change to the booth assignment process used in previous Show editions.

CCI HIRES SOKOLOWSKI AS NATIONAL RETAIL ACCOUNT MANAGER Card Concepts Inc. (CCI), which provides payment, marketing and management solutions to the vended laundry industry, has hired Michael Sokolowski as its new national retail account manager.

He will be responsible for new business development in the Laundromat space, working with equipment distributors, store owners and new investors to find the right CCI solution for their application.

A 28-year veteran of the vended laundry industry, Sokolowski in 1992 opened the first of two Laundromats he would operate within the Chicago market; both were fully Michael Sokolowski attended, 24-hour, large-format operations, CCI says.

In 1999-2002, he served as treasurer of the Coin Laundry Association’s Board of Directors and presided over CLA’s Illinois affiliate. In 2002, Sokolowski joined the CLA full-time as its chief operating officer, a position he held until 2019.

“We are all very excited to have Michael join the CCI team,” says company President Steve Marcionetti. “His extensive experience in the vended Laundromat industry will be invaluable to our distributors and store owners.”

“As a former store owner myself, I’m very excited to be working with distributors and their customers to help them build and run successful Laundromats,” Sokolowski says. “The great products and strong support that Card Concepts offers to its customers is the best in the business, and I’m delighted to be joining the team.”

SPEED QUEEN EXPANDS STATEWIDE LAUNDRY’S COVERAGE AREA Speed Queen recently expanded the territory of Fort Lauderdale, Florida-based distributor Statewide Laundry Equipment (SLE) to include Southern Virginia. SLE will now cover parts of Georgia, North Carolina, South Carolina and Virginia for the Alliance Laundry Systems brand.

“We are thrilled to now be serving our incredible customers in Virginia,” says SLE Vice President Dave Chadsey. “Through these challenging times in our country, we want to ensure we are available to provide the best possible service and opportunities for our customers who need the best in laundry operations.”

SLE has offices in Florida (Miami, Orlando, Tampa and Jacksonville) and Georgia (Smyrna), with future plans to include the opening of a new office in the northern part of its territories.

Along with vended laundries, SLE continues to serve on-premises laundries, multi-housing properties, healthcare facilities, hotels, spas and other customers in the Southeast.

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4/10/20 8:51 AM

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WE’RE COMMITTED TO YOU

During these challenging times, LG’s commitment to providing you with unrivaled energy efficient, quality equipment stands stronger than ever. Our commercial laundry equipment offers advanced programmability of water temperatures, fill levels, cycle times, spin speed and vend prices. GCWL Series Washers feature an easy-touse tub cleaning system equipped with a heater. Unique to the market, this system can heat water up to a target temperature of 158°F — crucial now and into the future.

In times like these LG is here to support you. Always has been and always will be.

Contact us at 800.256.1073 or visit cgilaundry.com/lg

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ESD leads the industry in bringing a wide selection of time tested and proven slides, money boxes, locks, key shafts and cams for any laundry or vending application.

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