CHICAGO — It’s one thing to handle drop-off work but taking on commercial accounts may require a different approach entirely.
What must you consider? How do you identify potential accounts? How does taking on such work impact equipment, space and staff? How do you balance doing commercial work with serving walk-in customers?
American Coin-Op reached out to some manufacturer reps and distributor reps this month, as well as some store owners, to ask them for their analysis of what it takes for the average self-service laundry to “go commercial.”
Q: In what way(s) can a vended laundry business track, protect and store goods owned by its commercial accounts?
John Antene, president of Coin Laundry Sales and Marketing, Coin-O-Matic: A vended laundry business can track, protect and store goods owned by its commercial accounts. Assuming the laundry operation currently provides a drop-off service for their walk-in customers, the process for which the commercial accounts would be processed is similar.
Christopher Brick, regional sales manager, Maytag Commercial Laundry: Accountability is key for commercial accounts. Appropriate processes and procedures will make commercial accounts successful. One such process includes tagging the linens immediately as they are received and maintaining the tagging system from washing to drying and folding and back to the storage area until the linens are picked up or delivered.
Tony Regan, senior vice president Global Sales, American Dryer Corp.: Bar-coding is helpful, and some commercial accounts are using RFID, which once tagged is an effective, efficient process. The best way to protect and store goods is behind a locked door!
Q: Can a laundry use traditional detergent and related products when processing commercial work, or is it necessary to utilize more advanced products and formulas? If advanced products are necessary, from whom can a vended laundry obtain them?
Brick: Most vended laundries employ commercial-grade detergents and stain-treating options for commercial accounts. A well-crafted policies and procedures manual will state a store’s policy on spot treating, washing with like colors, delicates, etc. A local chemical distributor can assist a store with which chemicals are appropriate for the types of commercial linens being processed.
Regan: This all depends on what is being processed.
Antene: A laundry can use traditional detergent and related products when processing commercial work. It is only necessary to utilize more advanced products and formulas with work that requires a definite process, such as the medical field or food industry. If advanced products are necessary, a vended laundry can obtain them from most of the same sources they purchase from now; their local soap and supply dealer would be able to advise on the particular processes or products available for a given problem stain, etc.
Q: What new managerial challenges might present themselves to a vended laundry taking on commercial work for the first time?
Regan: Employees need to be trained in all aspects of the commercial account, so it may be more involved than typical attendant responsibilities.
Antene: New managerial challenges that might present themselves to a vended laundry taking on commercial work for the first time may focus on the possible challenges of attempting to introduce a new process or program to attendants set in their work habits. This is not always the case in point, but the change in schedules and priorities may affect productivity, with both commercial and vended, until a definite way of doing things produces itself.
Brick: Challenges for a first-time store owner taking on commercial accounts could include: educating staff on processes, as well as time management, staff accountability, securing additional commercial business without much of a reputation to build on, and—depending on the customer—continually meeting and exceeding expectations.
Q: Do you have any other comments to add regarding a vended laundry taking on commercial accounts?
John Olsen, vice president, Vended Laundry Products, Laundrylux: The largest expenses for a Laundromat are rent, equipment note and utilities. The rent and equipment note remain the same when taking on new accounts, but higher utility bills will be offset by the additional revenue generated. The increase in sales and utilizing existing equipment and space make adding commercial accounts a profitable addition to a vended Laundromat.
Brick: Building a commercial account business can be a great secondary revenue stream for a store owner. That being said, prior to taking on commercial accounts, evaluating the current store and its capabilities is the most important first step.
If you missed the earlier parts of this story, read them now: Part 1, Part 2 and Part 3
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].