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StatShot: June Sales Slump

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Paul Partyka |

CHICAGO — It was somewhat of a reversal in June for self-service laundry sales: Operators in three regions saw sales dip, according to the most recent AmericanCoinOp.com StatShot survey. In the May survey, operators in three regions reported a rise in sales.In the West, June sales (compared to 2009) were down 4%. About 70% of Western operators reported a dip in sales. Several saw sales drop 15-20%.“People are moving out,” says one Western operator. Several other operators commented about conducting business in a “stagnant” economy. One operator resorted to dropping vend prices in order to attract new customers.In the Northeast, sales inched up 0.9%. About 50% of respondents saw a sales increase. Forty percent saw a decline in sales, and 10% saw sales remain the same.“Customers are looking for value and consistency,” says one Northeast operator.“Although we seem busier, it seems business is down some. I think people are putting more into the machines and using fewer machines,” adds another Northeast operator.Sales were down 2.4% in the Midwest. Equal numbers (40%) saw sales increase or decrease. Sales remained the same for 20% of respondents. What’s somewhat unusual is the number of positive comments submitted by Midwest operators.“Business has been great, with vacationers coming home and washing everything,” one operator boasts.“Things look as though they are starting to improve,” another enthusiastically adds.“Expenses were down and profit was up,” one simply says.The Southern region saw the biggest drop (5%) in sales. Only 18% of Southern operators saw sales rise. Thirty-seven percent saw sales slide, and 45% saw sales stay the same.A host of Southern operators lamented the fact that more people were starting to utilize home equipment, or washing but not drying in order to cut down on costs.Survey respondents were also asked about second-quarter sales. In the West, second-quarter sales were down 5%, while Northeast operators saw a 3.6% dip. Midwest operators experienced a 2% sales drop, while Southern sales plummeted 6%.AmericanCoinOp.com’s StatShot includes information on sales, wages, costs or other financial data based on anonymous survey information provided by industry owners and operators.Subscribers to American Coin-Op’s Wire e-mails are invited to participate in these unscientific surveys, which are conducted online via a partner website, on a regular basis. Readers are encouraged to participate, as a greater number of responses will help to better define industry trends.Click here and follow the menu instructions to sign up for the free e-mail service. 

About the author

Paul Partyka

American Coin-Op

Paul Partyka was editor of American Coin-Op from 1997 through May 2011.

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