Greater Control Leads to Greater Profit (Conclusion)

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(Image licensed by Ingram Publishing)

Jim Rosenthal |

Easier to maximize equipment efficiency, reduce operating costs

RIPON, Wis. — In today’s world, technology is constantly advancing and has greatly improved the way we communicate and do business. Whether traveling for work or relaxing at home, having access to e-mail and the capabilities to work remotely 24/7 provides a peace of mind for many people. And the same rings true for the laundry industry. In recent years, equipment has undergone major advancements, and today’s industry-leading controls allow store owners to completely program, monitor, audit and manage their business from any Internet-connected device.

This revolutionary technology combines equipment controls and programming into one central computer to wirelessly network a store. This platform provides an easy-to-use store management solution that will let you adjust your cost structure, reduce utility costs, maximize revenue and increase customer satisfaction.

Paul Spangenberg, owner of Speed Clean Laundry in Antioch, Calif., opened his first store in July 2015. He knows first-hand the benefits wirelessly networking his store provided, and shares how it helped set him up for success his first year of business.

REDUCING OPERATING COSTS

According to the Coin Laundry Association, 67% of Laundromat owners cite high utilities as one of the largest obstacles for their business. And with utility costs often rising, it’s important for store owners to take steps to conserve water and energy. With today’s leading controls, it is easier for owners to maximize equipment efficiency and reduce operating costs to boost their bottom line.

There are many money-saving features available, such as water-leak and slow-drain detection, which will immediately alert the store owner if an issue should arise. Not only does this help avoid high water and sewage bills, it also helps reduce equipment downtime.

Just as multi-level pricing for warm and hot water helps increase revenue, when customers select the less expensive cold-water option, it will help reduce utility expenses.

“Utility expenses were something I initially worried about, but ever since we opened for business, the costs have been less than I expected,” says Spangenberg. “I expected utility expenses to be 25 to 29% of my gross profit, but we typically run at 18 to 22%.”

Additionally, if your store is not open around the clock, technology that puts your equipment in a low power mode or automatically shuts it down during the preprogrammed time period will prevent you from paying high electric bills when your equipment is not in use.

“When I first opened my store, we were running into issues with people sneaking in a load right before we closed and financially it did not make sense to keep the entire store open for one customer,” says Spangenberg. “We set up our equipment to automatically switch to low power mode shortly before closing, and then shut down when the store closes.”

GREATER CONTROL LEADS TO GREATER SUCCESS

Whether you are a new store owner or seasoned Laundromat owner, advanced equipment with a state-of-the-art control system can have a significant impact on your business.

If a store owner is not using their equipment’s controls to the full potential, Spangenberg believes they are missing out on revenue.

“Having my store wirelessly networked has been vital and I can’t imagine running my business without it,” he says. “My distributor has also been a great resource and helped me with many aspects of my business, including providing equipment recommendations.”

Also, he worked with his equipment manufacturer’s in-house financing arm to get a rate on his equipment that met his specific needs.

The laundry industry is changing and customers are demanding efficient equipment, more cycle options and a better experience. In order to run a profitable business, the equipment needs to keep up to meet these demands.

Using today’s advanced equipment, store owners have the freedom to manage their business the way they want, to not only maximize revenue and reduce operating costs, but also make decisions that will provide a better customer experience.

Miss Part 1? You can read it HERE.

About the author

Jim Rosenthal

Speed Queen, Commercial division

North American Sales Manager

Jim Rosenthal is the North American sales manager of Speed Queen’s Commercial division. For more information, visit www.speedqueencommercial.com/CoinOp101 or call 800-590-8872.

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