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SALISBURY, Md. — By successfully serving small commercial accounts from one of his two coin-operated laundries, Mitch Wyatt nurtured a reputation that today has him handling the laundry needs of major hospitality, healthcare and food and beverage clients. Recently, to meet increasing production needs, Wyatt moved his commercial business into a newly constructed industrial laundry facility here.

The Quality Linen Services building turns out 1,700 laundry pounds per hour, using minimal labor, water and energy — giving Wyatt the opportunity to draw new clients and boost profits.

PROGRAMMABLE BY CUSTOMER

Each of the Girbau Industrial TBS-50 Eco-Tunnel’s seven modules is programmable for duration of the wash cycle, water temperature and levels, bath partitions, rapid draining, chemical injection, mechanical action, closing parameters and more.

“We’ve preprogrammed the computer by customer and all of the items they use,” says Wyatt. “This is vital with customer-owned goods because we can separate each customer’s linens by color code in the system and track them throughout. They don’t want to lose their linens.”

One of Wyatt’s hospital clients, for example, has 20 items, including bed pads, sheets, gowns, scrubs, blankets and towels. “Each item, one through 20, is programmed differently,” he says. Similarly, hotel items—sheets, pillowcases, towels and mats—are each programmed differently. At any time, the Quality Linen staff can see where items are in the cleaning process: the Eco-Tunnel, conveyor, press or dryer.

HOW IT WORKS

From a touch-screen station, one employee runs the Continuous Washing System. He or she selects a customer number and program on the Eco-Tunnel’s central computer screen and loads the tunnel conveyor, which automatically weighs each 110-pound load. The conveyor moves the goods up an incline, where they are automatically loaded into the first module of the tunnel washer. Every 110-pound load travels through seven modules, and each module is programmed to perform a function for four to six minutes, such as pre-wash, wash, rinse, etc. After the programmed time duration, the load is automatically transferred to the next module.

The Eco-Tunnel uses less than a gallon of water per laundry pound and completes even the dirtiest 110-pound load in 42 minutes, according to Wyatt.

“I like everything about it,” he says. “It operates off of steam, has a drain-water heat reclaim system, filters, and then reuses 60 to 70% of the water.” As the central component of the Continuous Washing System, the tunnel reuses rinse and extracted water for pre-wash. Because water is recycled, less water is used and heated, lowering associated costs.

Once a load travels through every tunnel module, it enters the press, where it’s pressed—and water is extracted—until linens resemble a condensed “cake.” Via another conveyor system, each cake is loaded into an open dryer. Sheets are quickly separated in the dryer and run through the ironing line still damp, while towels are completely dried and subsequently run through the laundry’s automated folding and sorting systems.

IRONING LINE

Once the cakes—sheets, pillowcases, tablecloths and napkins—are separated in the dryers, they are run through an ironing line while damp. Two attendants feed the ironer, processing 80 feet of linen per minute. Ninety percent efficient, the gas ironer is also programmable to meet specific needs, according to Wyatt, and automatically adapts cylinder speed according to linen type and moisture content. This eliminates the need to dry linens before running them through the ironing line, which saves natural gas and production time.

“We can finish 400 sheets per hour using this ironer,” he says. “To have a piece of equipment finish so many different item types is amazing.” Once ironed, the various napkins, tablecloths, sheets and pillowcases are automatically folded.

FOLDING DRY GOODS

Meanwhile, dry goods, such as towels, gowns, robes and bath mats, are fully dried and put through an automatic folder, which processes 1,200 items per hour. A variety of items are fed into the folder one after another, where they are automatically folded according to pre-programmed fold specifications, sorted and stacked. “The folder allows us to wash and dry different items, like hospital gowns, towels and bath mats, in one load,” says Wyatt. “It eliminates the need for up to two operators.”

PRODUCTIVITY, EFFICIENCY, SERVICE

Thus far, Quality Linen is processing 100 pounds of laundry per operator hour (PPOH), but Wyatt hopes to improve that number by 20%. “Quality and productivity are so much greater,” he says. “We were getting good quality before from our Continental washer, but from the Eco-Tunnel, we are getting superior quality.”

The facility is capable of processing 95,000 pounds of laundry per week using one shift, or, using two, processing 190,000 pounds. Simultaneously, Wyatt maintains he’s able to properly serve a variety of customers.

“We have clients with customer-owned goods who rely on us to provide superior service,” he says. “Because of our advanced technologies and equipment, we can clean, finish, and track virtually any item, according to our clients’ specific needs.” And that, Wyatt says, is what sets Quality Linen apart.

SALISBURY, Md. — By successfully serving small commercial accounts from one of his two coin-operated laundries, Mitch Wyatt nurtured a reputation that today has him handling the laundry needs of major hospitality, healthcare and food and beverage clients. Recently, to meet increasing production needs, Wyatt moved his commercial business into a newly constructed industrial laundry facility here.

The Quality Linen Services building turns out 1,700 laundry pounds per hour, using minimal labor, water and energy — giving Wyatt the opportunity to draw new clients and boost profits.

DEVELOPING COMMERCIAL ACCOUNTS FROM COIN LAUNDRY

“I serviced five hotels, two assisted-living facilities, one university, and two restaurants out of one washer at my coin laundry,” says Wyatt. “We used a 55-pound-capacity Continental E-Series Washer that would maintain a temperature of 140 degrees and stay at that temp. I was getting stuff so clean, my clients were amazed.”

Once cleaned, tablecloths, linens and napkins were pressed and finished using a Continental Flatwork Ironer. Wyatt’s staff then folded, stacked and delivered the items to clients.

PRODUCTION NEEDS SURGE

All went smoothly until Wyatt secured a five-year contract with a local hospital. “I knew I needed significant industrial equipment to fulfill growing production requirements,” he says.

So, he sought help from Operations Manager Doug Colonna, who holds 15 years of industrial laundry experience; Deke Sheller of Fowler Equipment, a laundry equipment distributor in Baltimore; and Joel Jorgensen, vice president of laundry equipment manufacturer Continental Girbau.

The 10,000-square-foot industrial facility required careful planning, a partnership of experts, and a mix of highly efficient industrial laundry equipment engineered for bolstered productivity, according to Wyatt.

DEVELOPING AN INDUSTRIAL LAUNDRY FROM SCRATCH

“We worked with the engineer constructing Quality Linen’s building and all elements of laundry design, construction and utilities,” says Jorgensen of the project. “We went on to define specific laundry production needs, the equipment mix, and solidified financing over an eight-month period.”

In the end, the new building featured a Girbau Industrial Continuous Batch Washing system capable of processing 13,600 pounds in an eight-hour shift.

The facility’s powerhouse is its seven-module Girbau Industrial TBS-50 Eco-Tunnel with four-stage water reclamation, water filtration and drain-water heat recovery. Complementing equipment includes a Girbau Industrial ICP3 Incline Loading Conveyor, SPR-50 Press, Dual-cake Delivery Shuttle, three ST-100 Dryers, a PSN 80 single-roll gas thermal ironer, FT-LITE Folder, AP LITE Stacker and an FT-MAXI triple-sort dry goods folder.

Two Continental Girbau CG-120 Dryers, and two Continental E-Series washer-extractors (55 pounds and 90 pounds, respectively) round out the lineup.

CONTINUOUS BATCH WASHING

The system not only boosts laundry productivity to 95,200 pounds per week using a single shift, according to Wyatt, it takes just one employee to operate and manage, is stingy on water, and produces high-quality results.

Key to Wyatt’s equipment decision was his need to properly manage and process laundry for a variety of accounts. “Unlike most of our competitors, we provide rental service, as well as service for clients with customer-owned goods,” he says. “We required equipment programmable by customer, so items would be properly cleaned according to each client’s unique needs.”

Check back Thursday for the conclusion!

WILLISTON, N.D. — A four-hour drive northwest from Bismarck, N.D., will lead motorists to the city of Williston, where a modern-day gold rush has incited oil miners to flock to the area to mine for natural gas trapped beneath the state’s water table in the Williston Basin.

While the oil business has brought a financial boom to the Williston area, a new necessity has emerged, roused by the influx of workers and their families: “greaser” laundry facilities.

In the past year, The Minnesota Chemical Co.’s Terry Anderson has had a hand in answering the area’s laundry needs by designing and building two laundries: one in neighboring Watford City (population 1,759) and the other in Tioga (population 1,230), each about an hour’s drive from Williston.

DESIGNATED MACHINES

For greaser laundries, it’s important that certain machines are designated specifically for greaser use, according to Anderson. “You can’t have somebody do their greaser laundry, and then somebody comes [after them] and puts their white sheets, towels and regular clothes in, because greaser laundry machines can never get all of [the grease cleaned].”

At his Suds Laundry in Watford City, N.D., Robert Trupe has designated two machines for his attendants to process commercial accounts, and six for self-service, specifically for greaser laundry.

“In the wash/dry/fold area, we just have two of them that we put big, yellow labels marked ‘Greasers’ so the attendants know which machines to use for greasers,” says Trupe. “And then we put the same type of signs out on the self-service side for the customers.”

Considering the blend of mud, oil and grease that covers workers’ uniforms and garments, what cleaning procedures are needed? Many of the garments face a variety of washes, Anderson explains, that are adjusted at different settings than traditional laundry loads.

“What you need to have [is] a pre-wash and a wash where you can inject detergents,” says Anderson. “Normal clothes can have a wash-dry-spin in about 24 to 30 minutes. These, you might set the water levels a little higher, and then extend that wash cycle longer.”

“The greaser machines are programmed for longer wash cycles [or] additional rinses, so they all have two washes and two rinses,” says Trupe of his store, adding that those machines use water at 140 F.

Despite all this, there are times when garments have to be re-washed because of the condition they are in, he adds. “Once in a while, if you get a really heavy load, some of the oil is pretty tough to get out because it’s thoroughly saturated with this heavy grease that they use in the oil fields.”

Employees at Charles Barton’s Clean Jean’s Express Laundry in Tioga, N.D., have had to re-wash garments as well, despite the pre-soak and different washes that they use to process garments. “We do our best to run several types of cycles through them, depending upon what the grease is. Sometimes we have to extend the wash cycle, sometimes we have to soften the water. Sometimes we have to use more soap than what you ordinarily would use, sometimes we use a different mixture than what we’d ordinarily use.”

Barton’s chemistry background as a consultant for pharmaceutical companies comes in handy at times, but he also learns from his employees which combinations of industrial detergents work best. “We’re refining the process,” he says.

Trupe has also used trial and error in finding which detergents to use at his store. “Finding the right mix of chemicals [is] a little bit of trial and error until you get all of your machines [and] cycles set up. It’s taken us a few months to get it down [but] we have help from Minnesota Chemical and some other vendors that were able to help us get the right mix of chemicals.”

As a safety precaution, Trupe requires his employees to wear rubber gloves and face shields while handling the strong detergents.

EQUIPMENT MAINTENANCE

Equipment in greaser laundries endures a heavy toll, what with the concoction of grease and industrial-strength detergents on top of hot temperature settings and numerous cycles run daily.

“If you don’t clean them, it’s not good on the equipment [and] certainly it won’t last as long,” says Barton. “We take quite a bit of pride in regards to our equipment, so we clean it on a routine basis.”

In addition to wiping and cleaning machines multiple times throughout the day, Barton also practices running a no-load cycle to ensure that washers are thoroughly cleaned. “Oftentimes we’ll have to run a special concoction […] through the washers to make sure that they’re all clean. And we also clean the [dryer] filters on an everyday basis.”

For its part, Minnesota Chemical sends out technicians to service machines on a regular basis, Anderson says. And to ensure that store owners know how to properly take care of their machines, the company hosts educational sessions on maintenance standards.

“We have these service schools [where] we talk about the things [owners] need to do [for] preventative maintenance to make sure [the machines] are cleaned out and make sure everything is working,” says Anderson.

Besides the maintenance requirements, greaser laundries face another challenge: the lingering odor of grease in dryers.

Trupe says that using certain chemicals helps reduce the smell. “There are a couple of different chemicals that we use depending on the application. There are deodorizers, but then there are other chemicals that we can add that [are] additional cleaning agents that have a nicer smell.”

INVESTMENT AND EXPANSION

Regardless of the special needs that their facilities present each day, Trupe and Barton both say it was worth moving into the area.

“We’ve been hearing a lot of good things,” says Barton. “We certainly wouldn’t be at the level that we are in, particularly with our wash-and-fold business, if we didn’t provide high-quality service.”

In addition to growing Clean Jean’s wash/dry/fold service, Barton is in the process of opening an Internet cafe and gourmet coffee shop at the front end of his facility.

Trupe says opening Suds Laundry has “definitely been a good investment.” Though he’s considered looking at neighboring towns for other business opportunities, he says he would first like to establish his Laundromat before pursuing other ventures.

“We don’t want to expand until we get our systems and processes nailed down in this facility,” he says. “Once we make sure that this thing can run completely smooth, then we can take the systems and processes [and] plug them into the next business.”

RALEIGH, N.C. — The yellows, blues, greens and shades of red at Calvary Laundromat in Raleigh are decorator-designed to create an inviting atmosphere, says owner David Makepeace. But the intangible atmosphere, the one that customers find welcoming, is created by his staff.

Makepeace says he’s “extremely” happy with sales at the 3,000-square-foot laundry, located in a small shopping center in the midst of large apartment complexes. “The success of it depends on the people you hire,” he says. “I have wonderful attendants.”

He names several other contributing factors, including the technological sophistication of its 30 front loaders and 28 dryers.

STARTING ON GOOD FOOTING

Makepeace is a former commercial banker in Charlotte and Raleigh who decided 13 years ago that “I wanted to go out on my own, to find a business and learn it and eventually buy it.” He was drawn to a cleaner/laundry because “It’s not going to go out of fashion like the buggy whip. Everybody’s going to need to get their clothes cleaned.”

He approached the then-owner of Medlin-Davis Cleaners and proposed, “You train me, and I’ll buy it from you.” Over the years, he rose to president, supervising three cleaning plants, three pickup and delivery routes and nine stores in Raleigh and neighboring towns, plus one small coin-op in the long-established Cameron Village shopping center in Raleigh.

Four years ago, unsure about the owner’s intentions of selling, he determined to start his own laundry while continuing to supervise Medlin-Davis. His wife Lee offered her full support.

It was at the beginning of the recession, but some businesses, including laundries, do well in that environment, he believes.

To financially strapped customers who need to clean their clothes, “This is a very affordable way to do that, rather than going to Lowe’s or Home Depot to purchase a washer and dryer.”

He’d worked with Medlin-Davis’ 1,500-square-foot laundry so he “had a general feel of how they operate.” Plus, T & L Equipment Sales gave him the specific knowledge he needed.

Makepeace discovered the Coin Laundry Association and joined immediately. “They had an absolute wealth of information they could give me.”

Co-owner Lee worked as full-time attendant the first six months, and David gives her credit for starting the laundry off on a good footing. “She did a wonderful job of establishing relationships.”

In 2010, he bought the part of Medlin-Davis that operated in Raleigh and the nearby town of Wake Forest: two cleaning plants, four dry cleaning stores, three pickup and delivery routes for cleaning and wash/dry/fold, and the Cameron Village coin-op.

His wife became head of accounting and administration, while he functions as head of operations. They have 60 employees.

Wash/dry/fold work for the routes is done at one of the cleaning plants. Wash/dry/fold work for the Cameron Village coin-op, which is unattended, is processed at Calvary along with its work.

Makepeace is a firm believer in keeping up not only equipment but appearances. Four-year-old Calvary has already been repainted once, and the checkerboard of floor tiles there is stripped and waxed every quarter, he says. Recently, some floor tiles were replaced, and a chair rail was added. “It’s very important that we keep up with wear and tear.”

At the 1,500-square-foot Cameron Village coin-op, Makepeace renovated everything: floor, walls, ceiling. He replaced all the machines with new ones after he found, “Stuff was always breaking down. I was losing business.”

Once again, he turned to his wife’s decorator friend for a color scheme. This one is more subdued—lots of pale blues and browns—in keeping with the supposed preferences of the retirees and North Carolina State University students who are its customers.

He added a large-screen TV, Wi-Fi, and new furniture.

He’s now enlisted the help of a marketing firm in designing not only a marketing plan but a logo, revamped storefronts for the cleaners, and even “the lettering on our vans.” And he says he wouldn’t mind having another coin-op.

After a 10-year apprenticeship and now four years of ownership, Makepeace believes he knows “what it takes to be successful.”

ADDISON, Ill. — Super-size it. Would you like peppers? Would you like to add cheese?

This is a common concept adopted by restaurants nationwide. Although the phrasing may differ, “upselling” is a familiar concept to American consumers. Most restaurants offer a good product without the extras, but eateries and other businesses have found that consumers like being given the option to make their own choices about the type of product or service they want. This in no way means the original product or service is inadequate without the add-ons.

What does this mean for our industry? Let’s take a look.

Although there have been many Laundromat innovations in recent years, the two most valuable, in my opinion, were:

1. The ability to offer additional service options on vended washers and dryers.
2. The ability to offer an alternative payment method such as card systems and its effect on the industry.

I would like to focus on these and explain how they tie together.

UPSELLING IN THE LAUNDROMAT

Several years ago, washer manufacturers introduced the ability to offer additional services to customers for additional vend price. Long before that, they offered the ability to sell hot and cold washes for a different cost. Competitors that did not have these sophisticated machines kept their prices low, ultimately reversing customers’ perceptions of the new pricing structure. Today, we have the ability to offer a quality wash, and customers who feel they will benefit from an extra wash or extra rinse will pay more for what they perceive is a superior wash result. This is upselling with no pressure on the customer to pay more money unless he or she chooses to add services.

This is a powerful tool to increase volume. For many years, we in the industry have been trying to figure out how to increase our revenue by giving customers choices they want, which increases revenue without the perception of increased pricing. I will show what this means in dollars and cents when we talk about the card systems.

Most manufacturers have an ability to offer these options, but each does it in a slightly different way. Additional service options have to be made easy to understand and easy to use, but this doesn’t mean you provide less service and make it up in add-ons. We have to learn from industries that are successful in marketing upselling options. We need to offer good results at a fair price, plus the ability to let our customers decide if they want to spend more. It’s their choice.

CYCLE OPTIONS + CARD SYSTEMS = MORE REVENUE

Another way to add choices into the Laundromat is by utilizing a card system. These systems, which began as an alternative to accepting coins, have been available for many years. They have come a long way. Card systems are used today by owners who want to operate their businesses with all the advantages that most retail businesses offer. I’m going to touch on a few of these advantages, but this is really just a small representation of the benefits of managing a card-operated laundry.

First, card systems build loyalty. Once a customer uses a card and leaves a balance on it, they will more often than not come back to your Laundromat. The ability to accept credit cards and to use penny incremental pricing helps keep your vend prices in line with your utility costs. There are a variety of marketing programs available to help increase your volume. Coupon programs give laundry owners the ability to offer rewards directly to the customer without an attendant and without fear of coupon fraud.

Card systems can also provide the ability to account for revenue and employee hours. Reports are available that reflect business revenue totals, individual usage, customer information, income by the hour, equipment usage, and average money spent per visit. This is just a small sample of the information that is available.

I have been able to gather reporting to solidify the value of the extra-wash and extra-rinse options. My family owns and operates three laundries with equipment that has these add-ons available. The stores are located in different geographic areas and have differing ethnic demographics. A report from one of our stores shows equipment usage over a five-month period.

The numbers focus on extra-wash/extra-rinse usage and what it means in terms of additional revenue.

• The 80-pound washers processed 4,112 loads, of which 1,498—or about 36% of the total number of loads—used an “extra” button. At a 50-cent upcharge per load, an additional $749 was collected from the six machines.
• The 30-pound washers processed 13,180 loads, of which 2,908—or about 22% of the total number of loads—used an “extra” button. At a 35-cent upcharge per load, an additional $1,017 was collected from the 16 washers.
• The 40-pound washers processed 10,999 loads, of which 2,859—or about 25% of the total number of loads—used an “extra” button. At a 40-cent upcharge per load, an additional $1,143 was collected from the 14 machines.
• The 20-pound washers processed 11,877 loads, of which 2,662—or about 22% of the total number of loads—used an “extra” button. At a 30-cent upcharge per load, an additional $798 was collected from the 12 washers.

That adds up to $3,707 in additional revenue for this store in five months. Extrapolate that to a year and the added revenue comes to $8,899. The numbers speak for themselves, and that’s on top of the normal vend prices! Keep in mind that these were customer choices; they made them of their own free will. That’s upselling.

In my experience, that kind of additional revenue (80%) goes to the bottom line. Without a card system, our stores would not have the tools to properly evaluate those numbers and help make any future equipment purchases.

Talk to your distributor about the options that are available. Evaluate this information to see if these innovations will work within your budget. In today’s business climate, any advantage that will help a business grow must be seriously considered.

I have heard many excuses for not moving forward with new innovations. The list would be so long, it would take another article to cover them all. The reality is, without these advantages, your business may struggle. Your choice.

WASHINGTON — Winter snows are sometimes followed by floods. Severe storms—sometimes in the form of deadly tornadoes or massive rainfall—can wreak havoc across the United States during spring.

There are many low-cost, efficient steps that a coin laundry owner can take now to make sure their business, customers and employees are safe in the months to come. At 2 p.m. EDT Tuesday, the U.S. Small Business Administration and Agility Recovery will present a free webinar on best practices for mitigating spring weather risks, based on real-life recovery experiences from business owners.

Space is limited, and interested parties can register here.

Additionally, the SBA has partnered with Agility to offer business continuity strategies through its “PrepareMyBusiness” website. Visit preparemybusiness.org to access previous webinars and for additional preparedness tips.

MILWAUKEE — Alliance Laundry Systems, manufacturers of commercial laundry equipment under the Huebsch, IPSO and Speed Queen brands, last week received a special award for “Market Leadership” as part of the Wisconsin Manufacturer of the Year program recognizing outstanding achievements in manufacturing in 2012.

Alliance was one of eight companies honored out of 58 nominated in the statewide awards program, now in its 25th year. Bruce Rounds, chief financial officer, and Jay McDonald, vice president of business development, accepted the award for Alliance during a black-tie ceremony at the Pfister Hotel.

“Alliance’s story started more than 100 years ago when two Ripon hardware store owners figured out how to mechanize hand-powered washing machines,” notes Alliance CEO and President Mike Schoeb. “Now, we are the largest manufacturer of commercial laundry equipment in the world. Our continued success is driven by that same spirit of innovation, the dedication and work ethic we find in the local labor force, our world-class distribution network, and the competitive advantages and positive business climate of Wisconsin.”

In addition to the “Market Leadership” award, the Wisconsin Manufacturer of the Year program handed out four grand awards to companies categorized by the number of employees – small, medium, large and mega. Alliance, nominated for the first time in 2012, competed in but did not win the Mega category.

Nominees were judged in such areas as financial growth or consistency, technological advances, product development, environmental solutions and sustainability, operational excellence/continuous improvement, commitment to employees, and effective research and development.

The awards program is co-sponsored by Baker Tilly, one of America’s largest accounting and advisory firms; Michael Best & Friedrich LLP, a leading Midwest-based law firm; and Wisconsin Manufacturers & Commerce, Wisconsin’s largest business association.

CHICAGO — Ralph Wagner, who owns Wash ’n Dry Laundry Services in Morris, Ill., has been working in the coin laundry business for 14 years. His store an hour southwest of Chicago occupies 2,000 square feet and features Maytag equipment totaling 33 washers and 26 dryers.

Up until last June, his business was strictly a self-service laundry. But since then, his sales have risen 25%. Why? Wagner attributes it to an extra service he started last summer, one that many laundries may already offer: wash/dry/fold.

Getting into wash/dry/fold was something he and his wife had always wanted to try. Wash ’n Dry competes with a couple other Laundromats in the market of about 25,000 residents, but the economy and the lack of actual wash/dry/fold service in the vicinity pushed Wagner to pursue it.

“We feel right now, with the economy coming back, that [it was] a good time to start it,” he says. “In our area, we only had one other Laundromat that offered the service.”

Wagner reached out to Kevin Meyer, president of distributor Dolphin Laundry Service, Bensenville, Ill., to help him get started. “It’s a tough thing to get going, but it’s gone pretty well,” Wagner says. “A 25% increase in our revenue is pretty good.”

Chris Brick, regional sales manager for equipment manufacturer American Dryer Corp., explains that up to 80% of attended coin laundries in the United States offer some form of wash/dry/fold service. “Wash/dry/fold brings a different customer base to a lot of laundries.”

“Household washers [or] small equipment within apartment buildings can have trouble handling comforters,” says Meyer, “so it solves a need for prospective customers.”

Considering the convenience such an added service offers to customers, it’s no wonder that many coin laundries have decided to cash in.

Dick Ruel, national sales manager at equipment manufacturer Maytag Commercial Laundry, attests to the profit potential. “If it were not for wash/dry/fold services, some laundries would not turn a profit.”

How much does such a service contribute to a store’s total gross revenue? Gary Gauthier, national sales manager for equipment manufacturer Milnor Laundry Systems, says it varies from store to store, while Meyer cites a range of less than 5% to up to 30%.

Considering how many laundries offer this service, what considerations must one take to truly profit from wash/dry/fold? Brick says the key to mastering the service starts with organization.

HIRING AND INSURANCE

With policies in place and any equipment issues resolved, the next consideration is employing an attendant.

Hiring an attendant should ultimately pay for itself, according to Brick.

“To me, the better way to look at it is you would want a minimum of 50% of whatever their labor cost is to attend [their] laundry, they should try to generate in wash/dry/fold,” he says. “If you look at a guy that’s spending $60,000 a year in labor, to me he needs to generate at least 50% in wash/dry/fold revenue [or] $30,000.”

To keep labor costs down, Wagner, his wife, and, on occasions, his son and daughter pitch in to process the store’s wash/dry/fold service. While his store only has one part-time employee that helps with the service, he plans on hiring a full-time attendant.

“We’d like to have one full-time employee hired by the end of the year,” he says. “Hopefully we have enough accounts established [so] that we can maintain [it] and make it profitable.”

What qualities should a store owner look for in a candidate? Brick suggests seeking the right combination of experience and personality. Look for a person who has “a good personality, and someone that is going to communicate positively with your customer base [and] make them feel welcome [but] doesn’t mind washing, drying and folding clothes.”

Protecting your business against damage claims is another important issue to address, and that’s where insurance coverage comes into play. “With residential laundry, the standard insurance policy should suffice,” Meyer explains. But if a store wants to get into commercial accounts, “Owners should consult their broker to ensure the proper amount of liability insurance is in place.”

Besides the possibility of lost or damaged garments, there is another potential liability: “left items,” or items that customers forget they had brought in for laundering. Preventing these occurrences all goes back to an owner’s policies and procedures, and establishing a reliable tagging system, Brick says.

“When [a] customer comes in and they sign that ticket, some [stores] will take that ticket with a magnet and when that load goes into the wash, that magnet is stuck with that ticket on the wash,” Brick says. “When the load moves to the dry … the ticket never leaves the load.”

PRICING AND TURNAROUND

Charging by the pound is “the way to go now,” says Brick.

In his experience, Ruel has seen pricing range between 65 cents to $1.50 per pound. Brick says that some stores have a $5-10 minimum.

Meyer and Gauthier agree on the per-pound trend, but add that some laundries charge separately for bulky items such as comforters.

“Our recommendation is always determine your costs to process, and what the desired profit and price [is] accordingly,” says Meyer.

For Gauthier, transparency is key when it comes to pricing. “It’s important to make sure that a store’s rates and policies are clearly published and easy to understand.”

As for turnaround time, Brick explains that most fully attended laundries offer same-day service for garments brought in before noon. If a load is received later than that, many stores will have it done the next day.

But as with any business, rewarding loyalty is a top priority. If a regular customer brings something in and requests same-day service, “absolutely you provide that service for the regular customer,” he says.

“You try to go above and beyond to keep that business.”

Check back Wednesday for Part 3!

CHICAGO — How would your customers describe your coin laundry? Would they say it’s dependable? Clean? Secure? Comfortable? How about customer-friendly?

It stands to reason that customer-friendly stores—those that are welcoming, bright and offer a sense of security, for example—have a better chance of drawing business than the store down the block that’s dark, dirty and run-down.

But there are many levels of customer service, and thus customer friendliness. American Coin-Op reached out to some store owners, manufacturers and distributors this month and asked them for their analysis of the elements of being customer-friendly.

Q: SO, WHAT DOES BEING “CUSTOMER-FRIENDLY” MEAN IN THE CONTEXT OF RUNNING A COIN LAUNDRY?

Karl Hinrichs, president, HK Laundry Equipment: The basics of a “Customer-Friendly Laundromat” are clean, bright and safe, and are equipped with reliable, high-quality machines. These are the basic minimum requirements. However, in today’s world, owners should go above and beyond. Many Laundromats have added attractive décor that caters to their customers, like earth-toned colored walls with trendy art and clocks, comfortable seating with tables, entertainment that includes free Wi-Fi, high-definition flat-screen TVs, magazines and even children’s lounges that offer video games and computers.

Dave Phillips, national sales manager, IPSO: A customer-friendly store is one that is owned by someone who lives and breathes good customer service. And because of this, people want to come to their Laundromat and do laundry. The owner will monitor and be aware of and adapt concepts and ideas that customers want in a Laundromat to make sure the customers’ experiences are positive. Additionally, the Laundromat’s employees will embrace and be committed to the same customer-friendly principles.

Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry: Customers and especially families are looking for a clean, well-lit environment where they feel safe for themselves and their children. They look for ample parking and sliding doors that make it easy to enter and exit with big baskets of laundry and plenty of equipment that’s available when they need it.

Dan Bowe, national sales manager, Speed Queen: The most customer-friendly stores are attended. When owners make the investment in good employees, they help elevate the customer experience. Attendants should be properly trained, friendly and helpful, but also feel confident in their position and enjoy what they do. Since attendants represent the store, they should be well-groomed, and greet customers, thank them for their business, help carry laundry out to cars if customers need assistance, and be there to answer general questions when they arise.

Ken Hebert, Deep South Laundry Systems: Being customer-friendly is defined by understanding your customer base and providing them with the environment/equipment they need to simplify their laundry time.

Q: WHAT RESPONSIBILITY DOES AN OWNER HAVE FOR MAKING HIS OR HER COIN LAUNDRY CUSTOMER-FRIENDLY? WHAT RESPONSIBILITY DOES A MANAGER AND/OR ATTENDANT HAVE?

Bowe: Customer friendliness starts with the management. If you don’t position your business to cater to your customers, you won’t be as successful as you hoped. Employees follow the examples management sets, so it’s essential that good customer service is an integral part in the business’ philosophy. For example, if a customer requests a refund, provide one without question. Offer to assist customers who are first-time visitors, and strike up a conversation to make them feel like they made the right decision in choosing the store.

Steve Koumaras, owner of four coin stores in Pennsylvania: Customers need to understand that although my stores aren’t staffed, the lines of communication are open. I have a way for customers to leave comments and suggestions, and I provide a phone number where I can be reached. If I miss a customer, I call them back and talk through the comment or problem with them. As an owner, I have to be customer-focused to really succeed in this business.

Hinrichs: Good customer service starts with management. If they want the store to be successful and generate revenue that will make them profitable, owners have to be customer-friendly. Otherwise, customers will go to another store that will provide them with the amenities they desire.

From an operations point of view, attendants should be welcoming, friendly and helpful. They represent the Laundromat and, indirectly, the owner. Attendants should greet all customers, ask if they need help, and if a problem arises they should help resolve it as soon as possible – whether it be soda spill clean-up or refunding money; if there’s a problem, they should do all they can to correct the problem and create a happy customer.

Jose Fernandez, owner, Mily’s Place Laundromat, Coral Gables, Fla.: It is imperative managers and attendants keep the store clean at all times. My attendants know it is a fundamental part of their jobs to pick up trash, clean up any detergent spills, etc. Also, it is our responsibility to maintain the equipment, check lint trays and ensure the washer and dryer drums are clean for the next customer.

Hebert: Owners are responsible for choosing the right location and equipment mix. They are also responsible for regularly updating/replacing paint, equipment, signage and furniture. The customer’s first impression of the Laundromat will determine whether they will use it in the future. The manager is responsible for keeping the equipment running and (for) handling customer suggestions/complaints. The attendant is responsible for keeping the Laundromat clean and inviting.

David Cabral, vice president, New England Coin Laundry: An owner should always want the customers that visit his/her laundry to feel welcome and comfortable. You can’t simply assume your customer feels safe and welcome. You need to make sure first-hand.

Kirchner: Managers and staff play an important role in attracting and maintaining a customer-friendly laundry. They need to work regularly to keep stores clean and attractive, handle maintenance issues or down machines immediately, and keep the store a pleasant place to do business and for customers to visit.

Check back Tuesday for more on The Elements of Being Customer-Friendly!

FAIRFIELD, Iowa — To help those affected by Hurricane Sandy, the employee-owners of Dexter Laundry and Dexter Financial are available to laundry owners who have seen their equipment damaged by flooding.

Dexter has posted flood-damage repair tips on its website, and is offering equipment damage analysis, priority technical support, and expedited replacement orders with special financing to those impacted by the storm.

Qualifying laundry owners in the Hurricane Sandy-affected areas of New York and New Jersey are eligible for up to six months of no payments, with no origination or documentation fees, along with a special allowance for installation and start-up costs. Customers wishing to pay off their loan after recovery from their insurer or other agency will face no prepayment penalties.

“The employee-owners at Dexter and Dexter Financial are very familiar with the long recovery period from such devastating damage,” says Kevin Hietpas, director of sales for Dexter Laundry. “During the summer of 2008, many areas of Iowa were damaged by historic flooding, so we are sensitive to owners who are rebuilding in the affected areas, and we are on hand for assistance as customers need us.”

Owners needing assistance who call Dexter Financial (800-926-8230) or Dexter Laundry (800-524-2954) will be connected to the authorized distributors for their area for free equipment analysis and expedited assistance.

CHICAGO — Self-service laundry owners polled in our latest American Coin-Op Wire survey projected a largely positive tone about business-related conditions, based on the results.

With Thanksgiving coming up shortly, we asked our audience if they agreed with the following: “I’m thankful, because our operation is performing well.” A little more than 92% said they agreed, while 7.7% said they weren’t sure. No one who took the survey disagreed with the statement.

Another statement: “Our processing equipment works well and isn’t a concern.” The level of agreement was less concentrated, yet the feeling was still overwhelmingly positive. Equal shares of 42.3% “completely agree” or “somewhat agree” with the statement about equipment. The remaining 15.4% “neither agree nor disagree.” No one who took the survey disagreed with the statement.

Next: “Our (end-users or clients) appreciate our service.” Another shake-up, yet still extremely positive. Fifty percent of respondents “completely agree” with the statement, while another 38.5% “somewhat agree.” Approximately 8% “somewhat disagree,” and the remaining 3.8% “neither agree nor disagree.” No one who took the survey “completely” disagreed with the statement.

The final statement: “I’m confident that next year will be better for everyone.” This garnered the widest range of responses. The biggest share (32%) “somewhat agree,” followed by 28% who “completely agree,” 24% who “somewhat disagree,” and 16% who “neither agree nor disagree.” No one “completely” disagreed with the statement.

Who or what is your biggest “turkey”—headache-causer—in your laundry? The top picks among respondents were equipment (32%), end-users or clients (32%), and “other” (12%).

We also asked respondents to name one aspect of their business for which they are most thankful. The most popular responses related to loyal customers, good employees, and the need for coin laundry services.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take the industry survey anonymously online each month. All self-service laundry owners and operators are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

MILWAUKEE — From the mid-’80s until 2000, Sean O’Byrne’s family operated a successful chain of Laundromats. For nearly 10 of those years, he helped manage the business, repairing machines and running day-to-day operations.

The O’Byrnes’ first store opened in 1984 after a distributor suggested the family turn their out-of-business gas station into a Laundromat. That store was so successful that the family opened six more stores across Milwaukee, a city of roughly 600,000 people known for its brewing and manufacturing.

In 2000, Byrne and his mother, Rosemary, sold their shares of the company to a relative and left the laundry business.

“At that time, I was interested in pursuing other career opportunities, and my uncle was able to give his growing family a larger piece of the laundry business,” O’Byrne says. “We came to an agreement, which allowed all of us to pursue our own goals.”

He went on to establish two successful executive search firms while Rosemary spent a lot of time with her grandchildren and became a full-time resident of Florida. It wasn’t until more than a decade later, when deciding what to do with inactive car-wash property that Rosemary’s late father had owned, that the mother-son team took another look at the laundry business.

Relying on their industry experience and taking advantage of advancements in machine and control technology, the pair opened SUDS Your DUDS Coin Laundry on Sherman Boulevard in north Milwaukee.

THE RIGHT EQUIPMENT MIX

The former car wash property was already equipped for the water and drainage demands of a Laundromat, and the rehab took just three months to complete.

Today, the 2,400-square-foot store features 54 stainless steel Speed Queen machines, including washer-extractors ranging in capacities from 20 to 60 pounds, and a mix of 30-pound and 45-pound stack tumble dryers.

The O’Byrnes’ distributor sales representative, Dan Baker, vice president of sales for Minnesota Chemical Co., says the mix of larger equipment will help the store generate a greater profit while making efficient use of utilities.

“Customers want larger machines so they can get more loads done at one time,” Baker says. “Newer machines are also more efficient, especially front loaders, because they use less water, electricity and (natural) gas than top-load machines.”

Customer Shakenn Allen was able to wash three weeks’ worth of clothing for her family within two hours at the O’Byrnes’ store.

“These machines are bigger than the ones at the Laundromat I used to go to,” Allen says. “That store only had machines like the ones we would use at home, and it took a lot longer to get my laundry done. This store is nice because I can get in and out quickly.”

The O’Byrnes chose to purchase Speed Queen equipment because they had used it in their former Laundromats. “We know Speed Queen is reliable because some of the machines we bought 30 years ago are still operating in our former Laundromats,” Sean O’Byrne says.

Each machine in SUDS Your DUDS is equipped with Speed Queen’s advanced Quantum™ Gold control system. It features revolutionary technology that unites equipment control, programming and store management. The full-feature control gives the O’Byrnes total command over their store by seamlessly integrating store operation data, equipment monitoring and performance with the option to network the store for remote access using a computer with Internet access.

It’s easier to operate a Laundromat this time around, says Rosemary.

“We used to have to be in our stores all day long in case something broke,” she says. “Today, we just pull out the iPads and check our software. With me living part-time in Florida and Sean working full-time at his company, there is no other way we would be able to have this business if it weren’t for the improvements in technology.”

One afternoon, while Sean was watching a golf tournament, he received a call from a customer who was having problems operating a machine after she paid to use it. From his couch, O’Byrne opened his laptop, logged onto the Quantum program and was able to start a new machine for her to use within five minutes.

“The customer was amazed that not only could I start a new machine for her, but she also didn’t have to wait for a refund,” he says. “The control system is phenomenal. That day, I’m positive, I got a customer for life.”

SERVING THE COMMUNITY

The neighborhood has responded positively to SUDS Your DUDS. The store is the one of a few Laundromats available to residents within a two-mile radius.

“The demographics in the area are definitely in Sean and Rosemary’s favor,” Baker says. “There are lots of renters, and the homeowners will use the big machines to wash larger items like comforters and curtains.”

Prior to the store opening, Allen took public transportation more than six miles to the nearest Laundromat. “This is a much better location for me and is way more convenient.”

WHAT'S NEXT

With the store’s ongoing success, Sean says they plan to open more locations in the Milwaukee area.

“We want to open at least three to four stores total,” he says. “We’re already seeing high return on investment – these stores pay for themselves and are so profitable.”

Many investors like the O’Byrnes aren’t aware of how lucrative the laundry business can be, says Dan Bowe, North American sales manager of Speed Queen’s commercial division. He and the Speed Queen team have been actively recruiting investors to the industry; Bowe is on target to open 100 new Speed Queen-equipped Laundromats within the year.

“Laundromats offer a high return on investment with little to no employee overhead, making it an excellent business investment for any entrepreneur,” he says. “Today’s Laundromats are bright and inviting, state-of-the-art and family-friendly—making the business a destination within any area or shopping center.”

“This is a great business that my family knows and respects,” Sean O’Byrne says. “We’re committed and have full confidence that we’ll be even more successful this time around.”