Building Your New Laundry- On Time, On Budget, On Target

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workwithoutahitchandforcustomersto findthemeasytouse.ThenewCompass Controlwashersfitthatbillexactly. dNoel showedthemhowtheycouldnotonly customizetheirwashprograms,buthow theycouldincreasestorerevenuewiththe HeavySoilandExtraRinsebuttons 3 somethingnotavailableincompetitors 9 machines.Thewashersalsodisplaytwo languagesatthesametime,whichisa greatbenefittotheirclientbase. Withahuge,brightlylitsignontopofthe building,Rock-A-Washofficiallyopenedon Monday,March17,2008.Open24/7,this big,beautifulstorehasgroundtoceiling windowsacrosstheentirefrontlettinginlots ofnaturallight.ThebrightblueLCDdisplays onthestainlesssteelCompassControl washersareeasytoread,evenindirect sunlight.Theyalsohaveacardsystem installedand,eventhoughmanycustomers hadneverusedalaundrypaymentcard before,ithasbeenverysuccessful. JoshandHershymadesurethatthepeople livinginthesurroundingareasknewthey wereopeningalaundromatandthatthey wouldbeofferinggrandopeningspecials. cOurcustomersappreciatethatweletthem knowabouteachstageofconstructionand thatwecareaboutthecommunity, dstates Hershy. cTheyalsolovethenewequipment, especiallytheCompassControlwashers. Theyareeasytouseandthehigh-speed extractionsavesthemtimeandmoneyin thedryers.Theyalsoappreciatethefull timeattendants,cleanlinessandsafetyof thefacility.It 9samuchneededandgreat additiontotheneighborhood. d Withmorethan100yearsofexperience behinditsproducts,Wascomatdelivers state-of-the-artcommerciallaundryand wetcleaningequipment,aswellasfinancing solutionsandbusinessplanningsupport. Wascomatisrenownedforexceptional serviceanditsproductsareengineeredfor quality,durability,andwaterandenergy efficiency . Lefttoright:HershyMayer, co-ownerofRock-A-Wash,and WascomatdealerMarcCooperfrom GardenStateLaundrySystems. cWascomatisthesuperior,most reliableproductonthemarket! d cWeowealottoour Wascomatdistributor, dshares HershyMayer. cTheywerewith useverystepoftheway,even now.Thesegentlemenhavea keeninsightintothisbusiness andtheyknowhowtobuilda successfulstore. Welearnedalotfromthem andI 9msurewe 9llbeworking togetheragaininthefuture. d coinlaundry.org September2008 4 SEPTEMBER2008 VOL.19NO.9 FEATURES ASSOCIATIONUPDATE 16 SecondCityHostsFirst-RateCLAConference Self-ServiceLaundryIndustryConvenesinChicagtoforThreeDays ofEducationalSessionsandWorkshops BYMICHELLECOMER,M.B.A. COVERSTORY 22 BuildingYourNewLaundry 3OnTime,On Budget,OnTarget Thismonth,weexamineseveralofthekeystoconstructinga brandnewself-servicelaundry,includingoptionstoconsider andpitfallstoavoid.Openyournewlaundryondeadline 3 andwithoutbreakingthebank. UPCLOSE 38 QuittingWasNeveranOption AnInterviewwithMinnesotaLaundryOwnerJimFingerman LAUNDRYPROFILE 32 GoingAgainsttheGrain FromBigDryerstoWall-to-Wall CarpetingtoEnergy-Efficient Innovations,KansasStoreOwner RunsHisLaundryHisWay 1-800-524-2954 " www.dexterlaundry.com Made in the U.S.A. " Since 1894 " Employee Owned R E T X E D ® Dexter 9s 30lb Express stack dryer is 21% faster than our previous model and uses 6% less gas 3 that 9s BETTER! Our new BIG STACK - 50lb Express stack dryer offers the same great performance and efficiency, with 66% more capacity 3 that 9s BIGGER & BETTER! When in comes to making customers happy, size and performance matter. Having your store equipped with top-performing Dexter dryers will allow your customers to get done faster. Dexter 9s new BIG STACK is the perfect way to add drying capacity to match-up with your existing large- capacity washers, or to allow you to add even more big washers. If you 9re looking to make your laundry BIGGER & BETTER, call your Dexter Authorized Distributor today for more details on how Dexter stack dryers can improve your business. Dexter T-30x2 30 Pound Capacity Dexter T-50x2 50 Pound Capacity Bigger & Better 1-800-524-2954 " www.dexterlaundry.com Made in the U.S.A. " Since 1894 " Employee Owned R E T X E D ® Dexter 9s 30lb Express stack dryer is 21% faster than our previous model and uses 6% less gas 3 that 9s BETTER! Our new BIG STACK - 50lb Express stack dryer offers the same great performance and efficiency, with 66% more capacity 3 that 9s BIGGER & BETTER! When in comes to making customers happy, size and performance matter. Having your store equipped with top-performing Dexter dryers will allow your customers to get done faster. Dexter 9s new BIG STACK is the perfect way to add drying capacity to match-up with your existing large- capacity washers, or to allow you to add even more big washers. If you 9re looking to make your laundry BIGGER & BETTER, call your Dexter Authorized Distributor today for more details on how Dexter stack dryers can improve your business. Dexter T-30x2 30 Pound Capacity Dexter T-50x2 50 Pound Capacity Bigger & Better " $0 Down Payment " 0% Interest for First 90 Days " 0 Payments for First 180 Days cTriple Zero d Financing Dexter is making it easier than ever to update your laundry with great-looking, long-lasting, energy-saving Dexter washers & dryers! Dexter Financial is proud to offer a new laundry equipment financing promotion offering: 0% interest for first 90 days, 0 Payments for first 180 days and $0 down payment for qualified buyers!* * Triple Zero Program features no monthly payments for six months. Full principle and interest payments begin in month seven, with interest calculated at the prevailing interest rate which the borrower qualifies for under Dexter Financial Services fixed-rate Promissory note program 3 currently as low as 8.0% for qualified applicants. For complete details visit www.dexterfinancial.com/promotions. For finance applications recieved 7/1/08 to 9/30/08. Installation must be complete by 11/30/08. To take advantage of this exciting offer, and to learn more about important limited-time tax incentives for investing in new equipment in 2008, contact your local Dexter Authorized Distributor or visit us online at www.dexterfinancial.com/promotions. Get New Dexter Equipment & Pay Nothing!* CONTENTS continued coinlaundry.org September2008 6 PUBLISHER COINLAUNDRYASSOCIATION EDITOR BobNieman journal@coinlaundry.org GRAPHICDESIGNER JenniferGabris jennifer@coinlaundry.org EDITORIAL&ADVERTISINGOFFICE 1315ButterfieldRd.,Suite212 DownersGrove,IL60515-5602 Tel:(630)963-5547 Fax:(630)963-5864 www.coinlaundry.org TheJournal(ISSN:1062-8088)ispublished monthlybytheCoinLaundryAssociation, at1315ButterfieldRd.,Suite212,Downers Grove,IL60515.Phone(630)963-5547. PeriodicalpostagepaidatDownersGrove, ILandadditionalmailingoffices. POSTMASTER: Sendaddresschangesto TheJournal , 1315ButterfieldRd.,Suite212, DownersGrove,IL60515. EDITORIALOFFICES: 1315ButterfieldRd.,Suite212,Downers Grove,IL60515.Phone(630)963-5547. TheJournal (ISSN:1062-8088)ispublished monthlybytheCoinLaundryAssociation, at1315ButterfieldRd.,Suite212,Downers Grove,IL60515.Phone(630)963-5547. Subscriptionsareavailablewithoutcharge toqualifiedpersonnelinthecoinlaundry anddrycleaningindustry.Subscriptionrates: UnitedStates:Singlecopy,$3;oneyear,$36 Canada/Mexico:$40/year. Thearticlesappearingin TheJournal are submittedandwrittenbyauthorsandare notnecessarilytheofficialviewsofCLA. Thesearticlesareintendedasinformation anditemsofinteresttoourreaders.For assistanceinanybusinesscategory,please consultaqualifiedserviceprofessional.The publisherhastherighttorejectoreditany manuscriptsreceivedforpublication,andto rejectanyadvertisingdeemedunsuitable for TheJournal .Acceptanceofadvertising by TheJournal doesnotconstitute endorsementoftheadvertiserorits productsorservices;nordoes TheJournal makeanyclaimsorguaranteesastothe accuracyorvalidityofanyadvertiser 9s claims,statementsoroffers. Forchangeofaddress,tosubscribeorto advertise,contact TheJournal attheaddress listedabove. Copyright©2008CoinLaundryAssociation SEPTEMBER2008 VOL.19NO.9 Departments 8 CLABoardMemberSpotlight 10 LaundryBusiness 18 TheBuzz 42 IndustryCalendar 43 PartsDepartment 48 AffiliateUpdate 50 ProductNews 52 CLAManufacturerListing 53 CLADistributorListing 56 JournalMarketplace 63 AdvertiserIndex COLUMNS FROMTHECHAIRMAN 2FacetoFacewiththeLaundryBusiness BYJEFFHOOPER WASHWITHWALLY 64 TheJournal 9s IndustryExpertAnswers Wash-Dry-Fold,CommercialLaundry Questions BYWALLYMAKOWSKY PleaseCircleReaderReplyCardNo.108 CLABOARDMEMBERSPOTLIGHT September2008 8 RICHARDLAMAINA EquipmentMarketers CherryHill,N.J. WhatisyourroleontheCLABoardofDirectors? IserveontheCleanShowCommitteeandtheDistributor Committee.Ialsowasonapanelforthedistributor seminarattheCLAConferenceinChicagoinJuly.Itryto bringthedistributor'spointofviewtotheBoardandhope thathelpstoinformtheBoardandprovide informationthatCLAmemberscanuse. Whatisyourlaundryexperience? Ibeganrunningacommerciallaundry equipmentdistributorship,Equipment Marketers,inJanuary1973.Ihaveexperi- encewithseveraltypesofself-service laundryowners,sinceourdistributorship transcendsurban,suburbanandruralareas;wehave suppliedthousandsoftypesofwashersanddryerstothe coinlaundryindustry.Wehavehelpedmanylaundry ownersstartandmaintaintheirbusinesses.What 9smore, Ipersonallyhaveownedseverallaundriesovertheyears 3 andcontinuetoownandoperatelaundriesinaroute setting.Inaddition,wehaveprovidedOPLequipmentto thousandsoflocations. Whatisyourbusinessphilosophy? Myphilosophyforbusinessisthesameasforlife 3a relationshiplastsaslongasitismutuallybene(cialto bothparties.Ourcustomerswillremainwithusaslong asweareprovidingsomebene(ttothem 3byproviding waystomakethemmoney,providinggreatequipment, excellentservice,partsatafairprice,andsoundinforma- tionandadvice.I(nditisthatwayinlifeaswell.Ihave friendsthatI'veknownalmostallofmylife,andIhave hadthesamewifefor45yearsby,Ithink,beingfairand equallyreciprocalinmypersonalrelationshipsaswellas mybusinessrelationships. WhatareyourgoalsfortheCLA? Iwouldliketoseethatwecontinuallystrengthenthe bene(tsthatmembersreceive,whichhopefullywill continuetoincreaseourmembership.Afterall,themore thatweincreasemembership,themoreeveryonewillbe abletoshareandlearnfromoneanotherandbetterallof ourbusinesses. Whatmusicalartists 9CDsarecurrentlyinyourcar 9s CDplayer? Itendtolistentothenewswhiledriving. Whatisthelastthingyou 9veread? Ireadthe WallStreetJournal ,the NewYorkTimes andthe PhiladelphiaInquirer onadailybasis. Whatisyournextvacationspot? Mynext 3andfavorite 3vacationspotisFlorida,where Ihaveasecondhome. Howdoyouspendyourfreetime? Ispendthemajorityofmyfreetimewithmyfamilyand friends,aswellasexercising. Whatadvicedoyouhavefortoday 9slaundryowners? Myadvicetoalllaundryownersistobuythemostef(- cientwashersanddryersavailabletoprotecttheirpro(t margins,sinceutilitiesarewhattheyarereallyselling, Whatwouldyoubedoingifyouweren 9tinthelaundry industry? IfIwerenotinthelaundrybusiness,Iwouldstillbein banking,whereIspent13yearsbeforegettingintothis industrymorethan30yearsago. coinlaundry.org NeedAnswers? Visit www.coinlaundry.org/store for "archivedarticlesfrom TheJournal "books "audioCDs "businessmanagementtools SouthernCaliforniaCustomerscanReduceEnergy,Water andSewerCostsupto50%withHighEfficiencyWashers Rebatescanhelp easethecostof upgradingequipment 210-710REBATE $ AVAILABLEPERWASHER Ifyourlaundromatorcommerciallaundry room'swashingmachinesaremorethan 5yearsold,youarepayingtoomuchon yourutilitybills.Byinstallingnew,High EfficiencyWashers(HEWs),youcan reduceyourenergy,waterandsewer costsupto50%. Thesestate-of-the-artcommercial washershelpminimizedryingtime byextractingmorewaterfromthe clothesduringthespincycleandare moreefficientthantraditionalmachines. HEWswithawaterfactorof7.5*orless qualifyforthisprogram.Checkforavailable modelsbyvisitingwww.bewaterwise.comand clickontheSaveABucklogo,orcall. RebatesareavailabletocommercialcustomersservedbytheMetropolitan WaterDistrict'sFamilyofSouthernCaliforniaWaterAgencies It'seasytoparticipate.Callnow. 1-877-728-2282 Formoreinformationandalistofqualifyingwashers,goto www.bewaterwise.com andclickontheSaveABucklogo. * * Toqualifyforrebates,youmustbeacommercialwatercustomerofoneof MetropolitanWaterDistrict'sFamilyofSouthernCaliforniaWaterAgencies. Customersarestronglyadvisedtoverifyeligibilitypriortopurchase. Rebatesvarybywateragencyandaresubjecttochange.Newlimitofwater factor7.5asofJanuary1,2007.Newminimumrebateamountof$210effective asofJuly1,2007.Rebatesrangefrom$210to$710dependingonlocation. RebatesareONLYavailableforreplacementequipmentthathave NEVERRECEIVEDANYREBATEinthepast. $ SAVE Upto 50% onyour WATER,ENERGY &SEWER COSTS PleaseCircleReaderReplyCardNo.207 LAUNDRYBUSINESS coinlaundry.org September2008 10 Clean 909Hotel ReservationsNowOpen HotelreservationsopenedAugust8 fortheClean 909tradeshowinNew Orleans,June18-21,2009.Special ratestomeeteverybudgetareavail- ableat18NewOrleanshotels.All areaccessibletotheFrenchQuarter, thecasino,andwithin1.5milesof MorialConventionCenter. Complimentaryshuttlebuseswill transportattendeesbetweenof(cial hotelsandtheconventioncenterin themorningandafternoon.Shuttle stopswillbelocatedashortwalking distanceofeachhotel. TheCoinLaundry Association 9sheadquarters hotelfortheeventwillbe theAstorCrownePlaza. Theshow 9s(veotherco- sponsoringassociations havechosentheOmni RoyalOrleans,theHotel Monteleone,theHilton Riverside,theNew OrleansSheratonandthe NewOrleansMarriottastheirhead- quartershotels. Inadditiontothosesixhotels,12 otherpropertieswillprovide cgeneralhousing daccommodations forCleanShowattendees.Theyare theCountryInn&Suites,the EmbassySuites,theHamptonInn ConventionCenter,theHoliday InnFrenchQuarter,theIberville SuitesatRitz-Carlton,the InternationalHouse,theLoews,the ResidenceInn,theRitz-Carlton,the RoyalSonesta,theSt.Christopher BestWesternandtheWHotel. cNewOrleanshotelsarerefur- bished,freshandbetterthanever, d saidJohnRiddle,presidentof Riddle&Associates,theshow 9s managementcompany. cIthink peoplewillbeverypleasantly surprisedathowbeautifulthecity looks,particularlyintheFrench Quarter,theCentralBusiness DistrictandtheArts/Warehouse Districtadjacenttotheconvention center. d Detailedinformationabouteach hotelisavailableontheClean 909 Websiteatcleanshow.com.Rates forsingle/doubleroomsrangefrom $99to$189.Toreceivediscounts, reservationsmustbemadethrough theHousingBureauontheWeb site,byphoneat(800)424-5250or (847)940-2153,byfaxat(800) 521-6017or(847)940-2386,orby mailtoClean 909HousingBureau, c/oExperient,568AtriumDrive, VernonHills,Ill.60061-1731.An exceptionistheHotelMonteleone forwhichreservations shouldbemadedirectly withthehotel,(800) 535-9595or(504)523- 3341.Whenmakingany reservation,identifythe hotelandsponsorblock inwhichyouwishtobe included. Thedeadlineforhotel reservationsisMay15, 2009.A$150depositperroomis requiredtocon(rmareservation, anddepositsarenotrefundablefor cancellationsmadeafterMay15, 2009. Airfareandcarrentalspecialsare availablethroughtheshow 9sof(cial travelservice:GlobetrotterTravel, (888)447-7432or(301)570-0800, press c1 d;fax:(301)570-9514; online:globetrotter- mgmt.com/cleanshow. ForinformationaboutClean 909, visitcleanshow.com,orcontact Riddle&Associates,1874 PiedmontRd.,Suite460-C, Atlanta,Ga.30324,phone(404) 876-1988,fax(404)876-5121,or e-mail:info@cleanshow.com. Maytag,WhirlpoolOpen TestingLab;ServiceTeam Expanded MaytagandWhirlpoolhaveopened anew28,000-square-footfacilityin St.Joseph,Mich.,featuringastate- of-the-artcommerciallaundry testinglab. cConciseandaccuratetestingis animportantstepinensuringthe performanceandreliabilityofprod- ucts, dsaidCraigKirchner,director ofglobalcommerciallaundryat WhirlpoolCorp. cWiththisnew, interactivelab,wecanprovidein- depthdevelopment,aswellas reliabilitytesting,forbothsingle- andmulti-loadcommerciallaundry equipment. d Featuring35teststations,thenew 3,250-square-footlabiscapableof testingbothsingle-andmulti-load productstothepowerrequirements ofmostcountriesaroundtheworld. Twentyoftheteststationsareauto- matic,computer-monitoredlifetest stations,andtheother15are manualanddevelopmentaltest stations. Theregimenoftestsatthelabfor newcommerciallaundryequipment willincludelifetesting,energytest- ing,developmenttesting,early warninganalysisandsomeaspects ofproductapproval.Thelabfacility caneasilyaccommodatelarge, multi-loadequipment,withitshigh bayceilingsand1,200-pound- capacity*oorscaleformulti-load energytesting.Addingtoitsversatil- ity,thelabhastheabilitytotest bothgasandelectricdryersandhas domestichotandcoldwater supplies,withsoftwatercapability. Havingthelabandallofthat otherMaytagandWhirlpool CommercialLaundrydepartment of(cesnowunderoneroofisa signi(cantadvantage,Kirchner added. cOurnewCommercialLaundry facilityputsthelabunderthesame PleaseCircleReaderReplyCardNo.138 TheJournal September2008 11 LAUNDRYBUSINESS roofasourengineering,sales, marketingandservicedepartments, resultinginbettercommunication andfasterdecisions, dhesaid. Inarelateditem,Whirlpoolhas namedRobertSmallthenew managerofglobalproductservice forMaytagandWhirlpool CommercialLaundry.Smalljoins theserviceteamtofurtheradvance dependableserviceandsupportas thecompany 9scommerciallaundry operationsgrow. Asserviceteammanagerofglobal productservice,Smallwillfocuson productserviceandpartsmanage- ment.WorkingatWhirlpoolsince 1990,hehasservedinengineering, procurementandproductapproval roles,mostrecentlyas(eldquality managerintheKenmorebrand laundryproductdepartment. cMaytagandWhirlpool CommercialLaundryhavegreatly expandedthisyear,withalarger facilityandstate-of-the-artlab, severalnewproducts,andagrowing salesteam, dKirchnersaid. cAnd now,withtheadditionofRobert Small,we 9reensuringastronger servicedepartmentreadytomeet customerdemandforfuturegrowth. d InadditiontoSmall,theservice departmentincludesthefollowing members: RichardTrama,technicalcommu- nicationsmanager,hasbeenwith theCommercialLaundryteamfor (veyears,andcametotheteam withmorethan25yearsof(eld serviceexperienceintheappliance industry.Tramahasbeenwith WhirlpoolCorp.since1991. BobbyDrummond,commercial servicemanagerfortheeastern UnitedStates,Mexico,Europeand SouthAmerica,joinedMaytag Corp.in1996.Drummondwas RobertSmallRichardTramaBobbyDrummondWarrenLong SteveParks LAUNDRYBUSINESS coinlaundry.org September2008 12 previouslywithUniMac,wherehe workedinproductionassembly, computerassembly,productionelec- tricaltroubleshootingand(eld servicesince1979. WarrenLong,commercialservice managerforthewesternUnited States,westernCanada,Africa, AustraliaandNewZealand,has beenontheservicesideofappli- ancessincejoiningMaytagCorp. in1977.Longhasbeenpartofthe CommercialLaundryteamsince 1992. SteveParks,commercialservice managerforthecentralUnitedStates, easternCanadaandtheAsian markets,joinedMaytagCorp.in 1984.Parkshasbeenapartofthe CommercialLaundryteamsince 2004. TexasLaundrytoHost OctoberExpo TexasLaundryServiceCo.,aSpeed QueendistributorforsouthTexas, willcelebrate25yearsinbusiness thisyearwithitsLaundryExpo,to beheldOctober8-9.Thetwo-day eventwillbehostedatthe company 9scorporateheadquartersin Pasadena,Texas,anditwillfeature serviceschoolsbothcoin-operated andon-premiselaundryequipment. Inaddition,severalindustry vendorswillbeonhandtodisplay theirproductsandservices,and special canniversarypricing dwillbe available.Attendeeswillhavethe chancetowinprizes,whilethekids willbeentertainedbyShawn, cMan of1,000Voices, dfromIncredible Events.Afreelunchwillbeserved, plusattendeescansnackonpopcorn andsnowcones. TexasLaundryServicehasloca- tionsinPasadena,CorpusChristi, SanAntonioandtheRioGrande Valley. Attendanceforthisfalleventis free,butspaceislimited.Formore informationortoregister,callTexas LaundryServiceCompanyat(800) 888-0074. Wascomat Names NewVice President Wascomat Laundry Equipmenthas hiredStefan Meirasitsvice presidentof OPLand nationalaccounts.Hisroleisto developastructuredOPLsalesand marketingprogramtoincrease Wascomatdealers 9OPLsalesand overallnationalaccountpresence. Forthelastsevenyears,Meirhas workedinsalesfortwolaundry equipmentdistributors. Meir,basedinWascomat 9sNew Yorkof(ce,seesanexcitingfuture withhugepotentialforgrowth. cI 9vealwaysbelievedinthe Wascomatproduct, dhestated. cEveryoneintheindustryknowsthe equipmentissuperior.Iamequally thrilledwithWascomat 9snew managementdirectionandvision,as wellasthecompany 9sdealer support,marketingandnewtech- nologies.Wehaveagreat opportunitytomakearealimpact intheOPLmarketandtoposition Wascomatastheprofessionallaun- dryindustryleader. d WascomatNationalSales ManagerDanGoldmansaidMeir (tsrightintothe cnew dWascomat withhissharporganizationalskills andenormouscapacityforwork. cHebringsagreatdealtothe table, dGoldmansaid. cHisexperi- enceinworkingonboththe manufacturinganddistribution endsofourbusinessisagreatbene- (ttoWascomatandourOPL dealers. d WascomatPresidentHoward Hermanagreed: cHisenthusiasmis commendable.Combinethatwith honestyandsincerity,yearsofexpe- rience,solidskills,andagreatwork ethic 3andyouhaveacomplete pictureofwhoStefanMeiris.We 9re veryhappytohavehimbackat Wascomat.Heisalreadymaking greatstrides,andourdealersand customersareexcitedtobeworking withhim. d WadeJohnsonSchedules ServiceSchool,Open House WadeJohnsonCorp.,aDexter- authorizeddistributor,willhosta fallopenhouseatitsheadquartersin Greensboro,N.C.Scheduledfor September25,from10a.m.to3 p.m.,thiseventwillfeatureproduct displays,serviceandindustrysemi- nars,specialone-daypricingand more.Inaddition,allattendeescan registertowinanewDexter50- poundBigStackExpressstacked dryer. WadeJohnsonstaffwillbeon handtodemonstratehowDexter Laundryequipmentcanhelpstore ownerscutenergycostsbyasmuch as60percent.Also,severalmanufac- turers 9representativeswillbehand toanswerquestions,andDexter Laundryfactorytechnicianswill hostserviceseminarsonDexter washers,dryersandEasyCard systems.Ofcourse,attendeesalso cantakeadvantageofspecialshow pricingonpartsandnewequip- ment,aswellastalkwithDexter Financialspecialistsaboutspecial, low-rate(nancing. Attendanceisfree;however,space islimited.Formoreinformationor toregister,callWadeJohnsonCorp. at(800)833-1946. WadeJohnsonCorp.hasbeen servingthecommercialandon- premiselaundryindustriesin VirginiaandNorthCarolinasince 1965. !"$%&'"()*+,!+,-(./0"- 1234,,3&00 *(&5*.$167(.%8+3"%9!"+3"%4, "))&'&"5':&,*(&5*-(851;(3!"<+3!1 !"#! !"$! !"%! !"&! !"'! ("!! ("(! (")! ("*! +'&+''+!!+!(+!)+!*+!,+!#+!$+!%+!& !"$%&!''%()*% +&*%''(,+-!./"0 $%&(1!*,(23,!*,(4 5/6,*%.!--785 9: =9>>>9?@9AB C? DBEFD G AB 2?ABEC?HIJD 2?A 1 C?H KKK 1 AB 2?ABEC?HIJD 2?A 1 C?H 8;,(!0, %66,(./!-7!*:<!=>(/.,>,(53,(6:? *Source:U.S.GovernmentEnergyInforma- tionAdministration.Projectionsofincreases basedonAugustfuturesnumbers.See: http://tonto.eia.doe.gov/dnav/ng/ ng_pri_sum_dcu_nus_m.htm PleaseCircleReaderReplyCardNo.135 TheJournal September2008 13 LAUNDRYBUSINESS RecentMarketStudy EnhancesADCLean ManufacturingProgram AmericanDryerCorp.recently announcedthatithassucceededin reachinganotherstageofitsLean Manufacturingprogram.Aspartof the$235,000grantawardedbythe CommonwealthofMassachusetts, ADCrecentlyconductedin-depth marketsurveystoobtainkeyinfor- mationforqualityimprovementin itsend-to-endsystems.Thein- depthresearchwillaugment ongoingprocessestoimplement newsystemsthatenhanceproduc- tivity,improvequalityandlower costs. Thecompanyisnowlaunchingits SixSigmaqualitywave.SixSigmais amethodologyusedtoimprove qualityandenhanceLean Manufacturingefforts.Initsstate- of-the-artfacilitylocatedinFall River,Mass.,ADCmaintainstwo separateassemblylinesforitsAD andSolarislines.Itsemployeesare currentlywrappingupthe(rstSix Sigmagreenbeltprojectlaunch, whichcoversbothproductlines. TheSixSigmagreenbeltproject resultedinatotalannualsavingsof morethan$150,000inmanufactur- ingcosts. Additionally,thecompanyhas announcedthe(rstSixSigmaaward toitsemployeeteamfororchestrat- inga50percentreductioninlead timeswhilequadruplinglargedryer production. cItiswithgreatprideandenthusi- asmthatweannouncethe(rstof whatIhopewillbemanyof AmericanDryerCorporation 9sSix Sigmaemployeeawards, dsaid JosephBazzinotti,whoheadsthe LeanManufacturingTeamandis vicepresidentofoperationsatADC. cOurteamshaveworkedextremely hardoverthelasteightweekslearn- ingnewanalysistoolsand techniquestohelpthemintheir everydayjobshereatADC.The marketresearchweconductedvia telephoneinterviewswithdistribu- torsandendusersacrossallmarket segmentshashelpedourteamstake ourLeanManufacturinginitiative tothenextlevel. d Theteamshavelearnedtoolssuch asFMEAs(FailureModeand EffectsAnalyses),FishBone Diagrams,ValueStreamMapping andProcessMapping.Theseare toolsthattheteamswilluseonan ongoingbasistoimprovequality andreducecosts,integratingthem intoeveryaspectofthecompany fromordertakingthroughshipping LAUNDRYBUSINESS coinlaundry.org September2008 14 oftheproductbytakinginto accountthevaluablecustomerfeed- backthecompanyhasgathered. TheLeanManufacturing Initiativewasimplementedatthe endof2006. IPSOHonorsAutomated LaundrySystems AutomatedLaundrySystems recentlywashonoredastheIPSO DistributoroftheYear.Locatedin Burbank,Calif.,Automatedisactive inhelpinginvestorsdevelopvended laundries,whilealsoofferingsales andserviceintheon-premise, multi-housingandindustriallaun- drymarkets. cAutomatedhaslongbeenrecog- nizedforitsexcellentcustomer service, dsaidDanBowe,IPSO nationalsalesmanager. cThey 9ve certainlybeenasolidperformerfor IPSOand,overthepastyear, Automatedagainraisedthebarin sales. d IPSO 9sDistributoroftheYear honorisawardedtothebrand 9stop NorthAmericandistributor.It recognizestheleaderintermsof outstandingdedicationtotheongo- ingdevelopmentandsupportofthe IPSObrand,includingequipment sales,marketingprograms,service supportandoverallcustomersatis- faction. cAutomatedcontinuallyexcelsin theseareas,whichactsasthecatalyst forexceedingtheirsalesexpectations yearafteryear, dBoweadded. cThis awardismeasuredbothbythe tangiblenumbers,suchaspercent- ageofincreasedsalesversusprior year,aswellastheintangiblessuch astheprofessionalismanddedica- tiontheybringtotheirmarketevery day. d AlcoWasherCenterHosts OpenHouse AlcoWasherCenter,aDexter- authorizeddistributor,recentlyheld itsannualspringequipmentshowat theFourPointsSheratonin CranberryTownship,Pa.,toeducate storeownersandpotentialinvestors aboutthelaundryindustry. Attractingcustomersfrom Pennsylvania,WestVirginia,Ohio andothersurroundingareas,this year 9seventsspotlightedthenew Dexter50-poundBigStack Expressstackeddryerand othergreatraf*eprizes.The winneroftheBigStackdryer wasSteveVairo,ownerof FluffandPuffLaundryin Pittsburgh. Excitedaboutthe announcementofhiswinning, Vairosaidthenewdryerwill de(nitelybeabigdrawforhis customers. Throughouttheday, customersattendingtheevent wereprovidedwithlunch, dinnerandsnackswhile inspectingthenewestenergy- ef(cientequipmentinthe industry. Also,makingitsdebutat theeventwasAlco 9snew Design&BuildDepartment. Thisnewserviceofferingwas createdtohelpexistinglaun- dryownersremodelexistingstores ortoassistinvestorswithnewstore planning. AlcoWasherCenterisafull- servicedistributorservingboth commercialandon-premiselaun- dries,representingsuchindustry manufacturersasDexterLaundry, GeneralElectric,NATCO,ESD, StandardChange-MakersandVend- RiteManufacturing.Allofthese companieshadtheirnationalsales representativesonhandattheevent toansweranyquestionsandtotalk toattendeesaboutnewofferings andfeaturesontheirrespective products.Additionalshows,service schoolsandseminarsareplannedfor 2008,withdatesandtimestobe announced. AlcoWasherCenterhasbeen servingPennsylvania,Ohioand WestVirginiaformorethan40 years.LocatedinNewCastle,Pa., Alcosellsnewandrebuiltequip- mentforself-servicelaundries,as wellason-premiselaundriesand apartmentbuildings. cTheVisionvendersproduce moresalesthananyvender I 9vehadinallthestoresI 9ve owned.Thedeliverysystem attractscustomers;theglass displayofsnacks,drinksand laundryproductsiscrispand bright.Mycustomerslove usingthesevendersandmy profitsproveit. d 4VanMerrill SparkleanLaundrySystems www.vendrite.com 1-800-777-1802 info@vendrite.com Vend-Rite 9sVisionVenders Acompletesolutionforallyourvendingneeds& PleaseCircleReaderReplyCardNo.145 TheJournal September2008 15 LAUNDRYBUSINESS TheJournal 1315ButterfieldRd.#212 DownersGrove,IL60515 T:(630)963-5547 F:(630)963-5864 journal@coinlaundry.org Ifyouwould likeyour company 9spress releasetoappear inthissection, senditto: LaundryProofFloridato HostContinentalKickOff LaundryProofFloridawillhostits 3rdannualContinentalKickOff andServiceSchoolonOctober23 atthecompany 9sheadquartersin Lakeland,Fla.Theevent,whichwill runfrom9a.m.to3p.m.,will featureContinental 9snewE-Series high-ef(ciency,soft-mountwasher- extractor,aswellasnew30-and 45-poundstackdryers. Inaddition,therewillbespecial one-daypricing 3 cBuy5Getthe 6thFree d 3onallsizesof Continentallaundryequipment, alongwithspecialsoapandvendor pricing. ThiseventisamustforFlorida laundryownerslookingtodecrease utilitycostswhileincreasingpro(ts. Anenergy-savingsandservicesemi- naralsowillbeheld,withfactory representativesonhandtoshow (rst-handtheactualsavingsthat thenewE-Serieswasher-extractor canachieve. What 9smore,attendeeswillhave anopportunitytowinoneoftwo 20-poundE-Seriessoft-mount washer-extractorsthatwillbegiven away,aswellasotherprizes.Anda tailgatelunchhotoffthegrillwill beserved. Formoreinformationortoregister fortheevent,callLaundryPro ofFloridaat(800)232-5736. ASSOCIATIONUPDATE coinlaundry.org September2008 16 L aundryownersandpotential investorsfromacrossthecountry joinedtheCoinLaundry AssociationinChicagoforthreedays ofnewideas,educationandnetworking. The2008CLAConferencewas heldatthehistoric,recentlyreno- vatedMillenniumKnickerbocker HotelonJuly21-23.Thelocation wasideal,asthehotelissituated directlyoffthecity 9sfamed Magni(centMile,givingattendeesan idealopportunitytotackonafamily vacationandtakeinthesightsand soundsoftheWindyCity. The(rstdayoftheconference offeredworkshopsfortwovery distinctlevelsofbusinessinterest.The Multi-StoreSeminar, whichwasbeingheldfor onlythesecondtimein CLAhistory,wasstrongly attendedbyassociation memberswithstoresrang- ingfromtwoto20.This seminarcoveredevery- thingfrommulti-store collectionstoemployee management. The cGettingStarted d workshopalsowasoffered onJuly21,theshow 9s(rst day.Topicsherewere chosenespeciallyforthosecurrently consideringgettingintotheself- servicelaundrybusiness,alongwith laundryownerswhorecently purchasedtheirstores.Topicsathis full-daysessionfeaturedsiteselection, leaseconsiderations,storedesignand anend-of-daypaneldiscussion. The(naltwodaysoftheconfer- enceweregearedtowardhelping currentlaundryownersgrowtheir businesses.Topicsrangedfrom cAttractingApartmentLaundry Customers dand cPreparingtoSell YourStore dto cTheTotalImpact ofMarketing dand cGoingGreen: ACaseStudy. d Theconference 9sspeakersincluded amixofnewerpresenters 3suchas JasonWentworthofEnviromat,LLC 3alongwithsomewell-known industryleadersandassociation contributorslikeMikeFloydof ContinentalGirbau,Inc.andJournal columnistJeffreyBarmanofWonder WashLaundry. CLAAnnualMeeting Theconferencealsoprovideda convenientlocationfortheassocia- tion 9sannualmeeting,whichtook placethemorningofJuly22.Atthis meeting,fournewof(cerswere electedtheCLABoardofDirectors. Thenomineesincludedthreestore owners:BeverlyKayBlankof Beverly'sLaundromat,JeffreyBarman ofWonderWashCoinLaundry,and JimWhitmoreofSunshineLaundry. Inaddition,DionMarcionetti,who ownsCardConcepts,Inc.inAddison, Ill,waselectedtotheBoardinthe ManufacturerCategory. Re-electedBoarddirectorsinclude RalphDaniels,DanielsEquipment Co.,Inc.,Auburn,N.H.;Craig Kirchner,MaytagCommercial Laundry,St.Joseph,Mich.;and RichardL.LaMaina,Equipment Marketers,CherryHill,N.J. NotAllWork... Ofcourse,manyoftheattendeesalso SecondCity HostsFirst-Rate CLAConference Self-ServiceLaundryIndustryConvenesinChicagoforThreeDaysof EducationalSessionsandWorkshops BYMICHELLECOMER,M.B.A. TheJournal September2008 17 tookadvantageofChicago 9sexciting sitesandsounds 3includingcatching ashowingofthepopular cJersey Boys dproduction,hittingsomeofthe city 9smanybluesclubsorcruising alongtheChicagoRiveronitsfamous architecturalboattours. Thosewhoregisteredforthetwo-day cGrowingtheBusiness dsegmentofthe conferencealsoenjoyeddinneratop oneofthecity 9stallestbuildings 3the JohnHancockCenter.TheSignature Room,arestaurantonthebuilding 9s95th*oor,offers spectacularviewsofthecity.Dinnerbeganatsunsetand continuedastheeveninglightsbegantoshine. And,aslaundryownersdiscussedtheday 9seventswith otherattendeesaswellasconferencespeakersandsponsors, theyalsohadthechancetohaveacharacterportraitof themselvesdrawnasamementooftheirvisittoChicago. UpNext:Clean 909HeadstoNewOrleans Plansarealreadyunderwayfortheassociation 9snextbig event 3theCleanShow.TheCLAanditspartnerswill hostthelaundryindustry 9slargestexpositioninthealways vibrantcityofNewOrleans.MarkyourcalendarsforJune 18-21,2009.TomakehotelreservationsattheCLA 9s headquartershotel,theAstorCrownePlaza,call(800) 424-5250,andbesuretomentiontheCLA. MichelleComer,M.B.A.,isthedirectorofmarketingand communicationsfortheCoinLaundryAssociation. ASSOCIATIONUPDATE ASpecialThankYou TheCoinLaundryAssociationwouldliketorecognize thegenerosityofits2008CLAConferencesponsors: DiamondSponsors "AllianceLaundrySystems "AmericanDryerCorp.(ADC) "DexterLaundry,Inc. "TheJournalofCoinLaundryandDrycleaning "MaytagCommercialLaundry PlatinumSponsor "MillerLaundrySystems: Coin-O-MaticEquipment,Inc. GoldSponsors "BDSLaundrySystems "Debitek,Inc "EquipmentMarketers "GreatLakesCommercialSales,Inc. "HamiltonEngineering,Inc. "JustinLaundrySystems,Inc. "WascomatLaundryEquipment PleaseCircleReaderReplyCardNo.232 coinlaundry.org September2008 18 THEBUZZ NewDataRevealsHowSmall BusinessesCopeinBadTimes AccordingtothelatestSmall BusinessEconomicTrendsReport fromtheNationalFederationof IndependentBusiness,theIndex ofSmallBusinessOptimismisnow atrecession-levelreadings.Small businessowners 9expectationsfor realsalesgainsandimprovementsin businessconditionsareasbadasin 1980-82,theworstrecessionperiod inrecentyears. Howareentrepreneurscoping withthesebadtimes?Anew NationalSmallBusinessPoll, EconomicDownturn,hasanswers showing: "Twentypercentofsmallemployers havereduced,postponedorcancelled aplannedinvestmentorreinvestment inthelastsixmonths;theslowing economyistheprimaryreasonin morethanhalfofthesecases. "Increasedmarketingandsales activityisacommonstrategyto combataneconomicdownturn. However,thisisoneoftheleast frequentapproachesasmall-business owneruses. "Forty-fourpercentofsmall-busi- nessownersarespendingmoretime attheirbusinessestodaythansix monthsago. "Overthepastsixmonths,small- businessownersarehighlylikelyto havebecomemoreattentivetotheir cash*owandinventorystatus. Acompletecopyofthispollcan befoundat 411sbfacts.com . Tired?StayOutofChicago Laundromats Thecityof Chicagorecently sentawake-up calltonappers lookingtocatcha fewZsinneighbor- hoodlaundromatsoronthelocal mass-transitlines:Therearespeci(c rulesagainstsuchdozinginboth placeswithinthecitylimits,according tothe ChicagoTribune . OnChicagoTransitAuthority busesandcommutertrains,passengers canbecitediftheysleep cinsucha wayastoimpedeorposeahazardto othercustomersortointerferewith theoperationofthebusortrain, d CTAspokespersonWandaTaylor explained.Infact,violatorscanbe (nedbetween$100and$300. What 9smore,nooneispermitted tosleepinaChicagolaundromat, accordingtolaw.However,unlike withthebusesandtrains,ifaperson isfoundsnoozinginalaundromat, thelaundryowneristheonewho facesaviolation. Noself-servicelaundryhasyet beenticketedunderthatlaw, accordingtoEfratStein,spokes- personforthecity 9sDepartmentof BusinessAffairsandLicensing. Census:NewOrleansFastest- GrowingCityinU.S. NewOrleans,whichwillhost Clean 909inlessthanayear,was thefastest-growinglargecityinthe nationlastyear,butitspopulationis stillabouthalfwhatitwasbefore HurricaneKatrina,theU.S.Census Bureaurecentlyreported. BetweenJuly1,2006,andJuly1, 2007,thecity 9spopulationjumped 13.8percentto239,124, accordingtothebureau 9s lateststatisticsoncities withpopulationsofat least100,000. TheCensusBureau estimatedNewOrleans 9 populationbylooking atitsavailablehousing units,alongwithbuild- ingpermits, constructionwithout buildingpermitsand mobilehomeshipments. DemographerGreg Rigamersaidhebelieves thecitycurrentlyhas 315,000to320,000residents, estimatedbyutilityandwater hookups,maildeliveryandother publicserviceaccounts. Becauseofayear 9sdelayonthe (gures,thepopulationeffectsof currenteconomictrends 3likethe realestateslowdownandhighgas prices 3aren 9tyetknown,said WilliamFrey,ademographerat theBrookingsInstitution. cThefast-growingpartsofthe countryarestillfast-growing,but it 9sslowingdown, dFreysaid. cIt 9s evidentalloverFlorida.Miami, OrlandoandTampahaveshown signi(cantslowdownsinthegrowth. PhoenixandseveralTexascitieshave shownaslowdown. d Atthesametime,thecredit crunch 3makingitmoredif(cult tobuyhomesinthesuburbs 3may beresponsibleforyear-to-year populationgainsinsuchcitiesas Chicago,BostonandLosAngeles, Freysaid. TheCensusreportalsofound: "Texascitiesshowedrapidgrowth: Houstonaddedthemostpeople, with38,932newresidents;San Antonio,FortWorthandAustin wereamongthetop10innumerical increases;andMcKinney,Denton andKilleenwereamongthetop10 inpercentageincreases. ContactUsTodayforaFREE ProfessionalStoreAnalyis! TollFree: 1-866-330-0020 info@plslaundry.com www.plslaundry.com 2007DexterAuthorizedDistributoroftheYear www.dexterlaundry.com ProfessionalLaundrySystems Authorized DistributorFor: "Dexter "Lochinvar "Weben-Jarco "Solomatic "Greenwald "R&BWire "Vend-Rite "ESD "Rowe&Hamilton Changers Wednesday,Sept.10th JohnsonCity,NY 10:00AMto8:00PM TraditionsattheGlenResort &ConferenceCenter 4101WatsonBoulevard PleaseRSVPto:607-434-4536 Wednesday,Sept.24th, Feasterville,PA 10:00AMto8:00PM ProfessionalLaundrySystems 15HenryAvenue Feasterville,PA PleaseRSVPto:866-330-0020 Wednesday,Oct.8th MonroeTownship,NJ 11:00AMto8:00PM CrownePlazaMonroe 390ForesgateDrive MonroeTownship,NJ PleaseRSVPto:908-672-5919 Upcoming DexterService Schools.Please ComeJoinUs! "Equipment "Parts "Service "Financing "Brokerage "Laundry Planning &Analysis "Newstore design& existingstore rennovation PleaseCircleReaderReplyCardNo.206 coinlaundry.org September2008 20 THEBUZZ "Theconsolidatedmetropolitan areaofNashville-DavidsonCounty, Tenn.,becamethe25thlargestcity with590,807residents. Washington,D.C.,felloutofthe top25. "Clevelandhadthelargestnumerical declineinpopulationoverthelatest year,losing5,067residents,followed byColumbus,Ga.;BatonRouge, La.;PhiladelphiaandBaltimore. Clevelandalsohadthesecondgreatest rateoflossoversevenyears,losing 8.3percentofitspopulationto standat438,042. "In2007,NewYorkremained thelargestcitywith8.3million residents,followedbyLosAngeles with3.8millionandChicagowith 2.8million. NewYorkLaundry OwnerWins Lawsuit AWestbury,N.Y., laundryowner, unabletooperate hisbusiness formore thana year because ofan imbroglio withthetownofNorthHempstead, recentlywonastateSupremeCourt caseagainstthetown,accordingtoa reportinNewsday. cIt 9snoteasyformewhenIdon 9t makeanymoney, dsaidowner FerminNunez,35,ofFreeport. cThetownmadethemistake. d Nunez 9sWestburyLaundromat wasdestroyedbya(rein2005, accordingtocourtdocuments.After rebuilding,Nunezreceivedapermit fromthetowninJanuary2007 authorizingthefacilitytoagainbe usedasalaundromat. ButunknowntoNunez 3and apparentlythebuildinginspector, DanielLoMonte,whoissuedthe permit 3thetownboardhaddays earlierchangedthezoningcode toprohibitlaundromatsfrom operatinginthatlocation. Nunezwasn 9tinformedofthe changeandspentabout$350,000 onequipmentforthelaundry, whichwasreadytoopeninApril 2007,saidhislawyer,LawrenceJ. Goldstein. Afterrepeatedrequeststothe buildingdepartmentfora(nal inspection,Goldsteinsaidhee-mailed then-buildingcommissionerJames O 9Connor.O 9Connor 9sreply, Goldsteinsaid,wasthe(rstheheard ofthezoningchange. ThetownsentNunezanoticeof disapprovalandGoldsteintookthe casetothetown 9sBoardofZoning Appeals,whichdeniedtherequest toopenthelaundromat.Goldstein then(ledpaperswithstateSupreme CourtinNassau. Thedecision,byJusticeR.Bruce CozzensJr.,saidthepermitrevoca- tionwas canunconstitutional deprivationofthepetitioner 9s propertyrights. d Goldsteinsaidhebelievedthe mix-upwascausedbyascandalin thetownbuildingdepartment, whichculminatedlastyearwith thearrestsof(veemployees. cTheywereintotaldisarray, d Goldsteinsaid. cYou 9dthinkifthey amendedtheordinance,theywould havetoldtheinspectors. d UnileverSellsDetergent Brands Unilever,theAnglo-Dutchconsumer giant,hasagreedtosellitsNorth Americanlaundrydetergentsbusiness, includingtheAll,Snuggle,Wisk andSurfbrands,toaprivateequity investorfor$1.45billion,according toanAssociatedPressreport. Thebuyer,VestarCapitalPartners, planstocombinethebusinesses withitsHuishDetergentsbusiness thatincludestheSunandWhite Rainbrandsandcallthenew companyTheSunProductsCorp. Huishalsomakesdetergents, fabricsofteners,dishcareand personalcareproductsunderprivate labelnamesformajorretailers. VestarsaidthenewSunProducts companywillhaveannualsalesof morethan$2billion. Thesalepriceincludes$1.08 billionincash,andUnileverwill getsharesinSunwortharound $375million. Vestarsaidithasbeeninvesting inconsumerproductscompanies formorethantwodecades.Its investmentshaveincludedcompanies suchasRemington,Prestone, GoldToe,BirdsEyeFoodsand MichaelFoods. Unilever,makerofDovesoaps, LiptonteasandBen&Jerry 9sice cream,explainedthatthesaleisin linewithitsstrategytodisposeof non-corebrandsandfocusonafew largerones. Unileveristhelargestmakerof laundryproductsinBritainand manydevelopingmarkets,including IndiaandBrazil,butisdwarfedby rivalProcter&Gambleinthe UnitedStates. Theoperationsbeingsoldhad salesofaround$1billionin2007, comparedwithsalesofmorethan $7.8billionforitslaundryproducts globallyinthesameperiod, Unileversaid. cThechoicethatwehavemadeis wehavebetterinvestmentopportu- nitieselsewhereintheworld, dsaid divisionmanagerKeithWeedina videostatementonthecompany 9s Website. Hesaidlaundryis cthelifeblood ofUnilever dbut ctheremovalofthe NorthAmericanbusiness...actually removesthedrag. d Mac-Grayhasbeenaleadingprovideroflaundryequipmentandaccessoriessince1927. LEARNHOWMAC-GRAYCANHELPYOURBUSINESSWITH: May-Gray 9sinvolvementwithCommonwealthCoinLaundrybeganbeforetheirleasewassigned-providing athoroughdemographicanalysistohelpensurethelocationwouldmeettheirexpectations.Tokeep operatingcostsaslowaspossible,Mac-Gray 9sdesignforthespaceincorporatedenergy-savingMaytag equipment.Facedwiththeowner 9stight30-daycompletiondeadline,Mac-Grayfinishedtheworkontime. CommonwealthCoinLaundryisnowopenforbusinessandtheownersarethrilledwiththeirnewenterprise. Servicemaynotbeavailableineverycountyofstatesdenotedabove Servingthesestates: WithoutMac-Gray,noneof thiscouldhavebeenpossible. c 3 JoeDanReed ,Owner CommonwealthCoinLaundry,Lexington,KY NewFront-loadWashers SalesStation NewDryers ThankYouMac-Gray! " Energy 3efficientequipment " Cardsystems " Coinchangers " Newstorelocationanalysis " On-siteCADdesignservice " Increasingyourrevenuepotential " Waterheaters " Securitysystems d Call 866-203-0665 orVisit www.laundromatequip.com PleaseCircleReaderReplyCardNo.161 COVERSTORY coinlaundry.org September2008 22 W henyou%rstconsideredgettingintothe coinlaundrybusiness,%ndingthe cright d locationwastheonlygoal&densepopu- lation,apartmentcomplexesaplenty,high-traf%c thoroughfare,urbansetting,aWal-Martonthe corner,andonandon. Youstudieddemographicreportafterdemographicreportuntilyouwereseeingdouble. Andyoubecameanexpertinwhattypesoflocationsmakewinningcoinlaundries 3and wherewithinyourtownsuchsitesexisted. Butholdon.Yourcoinlaundryeducationisonlyhalfwaycomplete.You 9reontothenext phase 3buildingyourlaundry.Andwhenitcomestobreakinggroundandswinging hammers,you 9vegotanentirelynewsetofquestionsandoptions. WhatAreYourOptions? cYou 9vegottheoptionofstartingtotallyfromscratch,versusbuyinganexistingstoreand guttingit, dsaidGaryGray,whoowns16laundriesinArkansasandalsooperatesasuccessful distributorship. cOfcourse,therealsoistheoptionofbuildingabrandnewstoreinthesame spacewhereanexistingstoreusedtobe;tome,thatisthenumber-onechoice.You 9vegotsome formofcustomerbase.You 9vegotpeopleintheareawhoareaccustomedtocomingtheretodo theirlaundry.Thosebusinessesalwaysrampupquicker. d Suchprojectsalsotendtosavemoneyonutilityinfrastructure,becausetheoldstoresnormally hadplentyofwaterandsewercapacity,asthoselaundriesusedmorewaterthantoday 9sstores. Moreover,buildingonthesiteofaformerlaundryofferslessinthewayofbureaucratic headachesduetothefactthattheformerlaundryownersalreadytookcareofatleastmostofthe requiredlicensing,permitting,zoningandothernecessarypaperwork. cThenextbestthingisto%ndtheperfectsiteandgofromthegroundup, dGraystated. cThe advantagesherearethatyou 9renotaffectedbyhowsomeonehaspreviouslylaidoutastore.You candesigntheperfect'oorplan,andthenyoubuilditthatway.It 9snormallymoreexpensivethis way,butyou 9regoingtohavetheperfectlayout. d Withanewstore,it 9sinsomewayseasierbecauseyou 9renotmodifyinganexistingfacility. You 9restartingfromthegroundup,andthereforeyoucankindofbuildaroundyourneeds,rather thanhavingtochangethebuilding 9sstructuretomeetyourneeds. cWhenyougofromthegroundup,you 9regoingtohavealloftheconstructiontheredesigned forthelaundry, dconcurredDickLaMainaofEquipmentMarketersinNewJersey. cYou 9renot BuildingYourNewLaundry 3 OnTime,OnBudget,OnTarget HereAreSomeOptionstoChooseandTipstoFollowWhen ConstructingYourNextSelf-ServiceLaundry BYBOBNIEMAN TheJournal September2008 23 COVERSTORY goingtohavetoripupaparkinglot tobringinwater,sewerandgaslines, whichareusuallyneeded.Itcanallbe broughtinbeforeconstructionandas theprojectgoesalong.Youcanreally designthelaundrybetter. d Ontheotherhand,withabuildout ofanolder,existingspace,themain challengetheownerfacesismodify- ingtheutilitiesforacoinlaundry, includingmakingsurethestorehas suf%cientwaterandgaslines,ample drainage,properelectricitycapacity andsoon. cNinety-%vepercentofthetime,all ofthoseutilitieshavetobeupgraded, d saidDougGriseofTeetersProducts inOhio. cYoumayhavehadashoe storeorapetshopintherebefore. Whoknowswhatcouldhavebeenin thatstripcenter?Therefore,theyjust donothavetheutilitiesnecessaryfor runningacoinlaundry. cGenerally,it 9samajorupgradeof theutilities,cuttingthe'oorsand puttingindrains.Also,buildingout asuf%cientairexchangeforthedryers isgenerallythelargestobstacleto overcome. d cCertainly,newisthewaytogo, d saidDonTomasianofD&M EquipmentinChicago. cButwehave builtmanystoresinexistingbuild- ings.Unfortunately,onceinawhile, yourunintoonethathasabasement andthenyouhavetheconsiderationof concretepads,supportsandcolumns. d Time-wise,buildingfromthe grounduptypicallytakesabout60 dayslongerthanconductingabuild- outofanexistingspace,accordingto Grise.Mostbuildoutsrequire90to 120days. cButitseemslikethatprocessis nowtakinglongerduetopermitsand allkindsofthingsthatthegovern- mentisaddingtoslowtheprocess, d Grisesaid. cTobuildfromtheground uptakessixtoninemonths. d Grayestimatedthat,inhisexperi- ence, cit 9srunning50/50between buyinganexistingstoreandguttingit andbuildingtotallyfromscratch. d cAbouthalfthestoresIbought wereexistinglaundriesthatI retooled, dsaidmulti-storeowner KeithGrif%nofArkansas. cForthe otherhalf,Iwentintoashellbuilding oractuallybuiltthebuilding. Grif%nadmittedthathe 9senjoyed greatersuccessrevampingolder, rundownstores. cItseemsasifpeoplearecreatures ofhabit, dhesaid. cTheykeepcoming tothesamestore.And,onceyouretool it,you 9regettingmoreef%ciency. d VanMerrillofSparkleanin Californiaisseeing cvirtuallynolaun- driesbeingbuiltoutoftheground d thesedays. cWithpetrochemicaldollarsbeing soexpensiveandthatripplingintoall PleaseCircleReaderReplyCardNo.142 COVERSTORY coinlaundry.org September2008 24 oftherawmaterialsandthetransportingofthoseraw materials 3especiallywithChinaandsomeoftheother developingcountriestakingsomuchoftherawmaterials likecopperandconcrete 3priceshavegonethroughthe roof, dMerrillexplained. Allofthatexpensetranslatestoaper-dollarper-square- footconstructioncost,makingpullinganewlaundryout ofthegroundextremelydif%cultincertainmarketsthese days,accordingtoMerrill. cWelookrealhardforpotentialtotalrehabcandidates, andwebuyanyofthosethatwecan%ndandbuyreason- ably, dGraysaid. cWematchthemupwithanowneror,in somecases,wekeepthemourselves. d BuildingYourStore:FromDoingItYourselfto 8Turnkey 9Operations KeithGrif%nlikestogothedo-it-yourselfroutewhen buildinghisstores,actingashisowngeneralcontractor andlininguptheplumbers,electriciansandcarpenters himself. cIhavesomepriorconstructionexperience, dGrif%n explained. cTypically,dependingonthesizeoftheproject, you 9regettinganywherefrom5percentto12percentfora contractor 9sfee.Andwhenyoubuildagood-sizedstorein the$600,000to$700,000range,thosecostscanaddup. I 9mtryingtosavethat. cIuselaundrydistributorsjustfortheirportion, dhe added. cTheyboltdownthebasesandsetupthe machines.Alltheplumbingandelectricalisalready therewaitingforthem. d Somelaundryowners,likeGrif%n,willlooktosave moneybyconstructingtheirstoresthemselves.Ofcourse, withoutconstructionexperience(andspeci%callycoin laundryconstructionexperience),suchadecisioncould causeproblemsdowntheroad. cWehavecustomerswhomightsay, 8Mybrother-in-law isagoodcarpenter,andmyfriendisaplumber, 9 d Tomasianexplained. cThat 9s%ne.Iftheyhavesome connectionsorresourcesinthetrades,inmanycasesthey cansavesomemoneythatway. cI 9mopentootherpeopledoingthework,providedthey doitwithasetofplansthatweapprove,andtheprojectis doneaccordingtoallspeci%cations,tomakesurethe machinesaregoingtoworkproperly.However,inmany cases,thecustomers 9friendsmaybecontractors,but, unfortunately,theymayhaveneverdonealaundromat before 3thenwegetintoproblems. d Self-servicelaundriesrequiredanextremeamountof detail,fromtheelectricalwiringondowntotheplumbing considerations. Mostdistributorshaveworkedwithcontractors,electri- ciansandplumberswhospecializeinlaundromatworkor atleasthavealotofexperiencewithself-servicelaun- dries.Asaresult,theseworkerscandothejobmuch morequickly.It 9snotaguessinggametothem.On the'ipside,ifyouusesomeonewhohasnever workedonalaundromat,therewillbequiteabit ofworktothatproject. Inaddition,withdo-it-yourselfers,theques- tionofresponsibilitycanarise. cIftheownerhireshisownpeopleandthe jobisn 9tdonecorrectly,thereisthegameof whodidwhatwrong, dTomasianexplained. cWhosefaultisit 3thedistributor 9sorthe contractor 9s?But,whenthedistributor takesresponsibilityfortheentire project,andhedoesthewholejob withhisplumberandhiselectri- cian,thereisabitmoreofa comfortzone. d cIwouldsaythemajority ofmycustomersarehiring ageneralcontractor,and thentheyworkdirectly withthat contractor, d Grisesaid. cAsa result,ifthey don 9tknowthe answertoa question,the generalcontractor callsme. cIknowacoupleof guyswhoarelaundry Withabuildoutofan older,existingspace,themain challengetheownerfacesis modifyingtheutilitiesfora coinlaundry,including makingsurethestorehas sufficientwaterandgaslines, ampledrainage,proper electricitycapacityandsoon. TheJournal September2008 25 COVERSTORY ownerswhousedtobegeneral contractors, dheadded. cTheyleft thatprofessionandgotintothelaun- drybusiness.But,becauseoftheir pasthistory,theywillelecttodo projectsthemselves.However,forthe mostpart,weworkwithageneral contractoreverytime. d cWe 9rebestoffworkinghand-in- handwithpotentialinvestors,where wedon 9tevertakeownershipor controlofthepropertyorthedevel- opmentoftheproperty, dLaMaina explained. cWewillbringcontractors inwherenecessary,orworkwiththe storeowner 9scontractors. Ofcourse,EquipmentMarketers givesitscustomersalotofinputasto thedemographicsofthemarketplace andwhattypeofequipmentwould bestservethecustomerslikelyto patronizethenewstore. cWemakethoserecommendations andalterthemtotheowner 9srequest andlayoutalaundry, dLaMainasaid. cThenweprovidethemaproposalas farashowmuchtheprojectisgoing tocostthem. d cWe 9vedoneafewturnkeystores, d Graysaid. cButI 9veelectedtostop doingthembecausepeopleweren 9t willingtopaymethepriceforthe effortittook. d Beyondtheprice,the majordisadvantagetoa completedlaundryisthe factthatthebuyerisnot asinvolvedinasmany (orany)ofthedeci- sionsaboutthe business,becausethe persondoingthe constructionis makingthose calls. cThen again,the peopleI knowwhoare doingturnkey storesknowhow tobuildastore, d Grayadded. cSothere 9snotlikelyto beanymistakesmade. d Anotheroptionistobuya cspec store dthatadistributorhasbuiltand runforayearorso. cTheadvantagetothebuyeristhat thestorehasalreadyprovenits numbers. dGrayexplained. cHowever, thedisadvantageisthattheybuyer mighthavetopayalittlebitmorefor it;afterall,thepersonwhotookthe riskshouldberewardedforit.With theeconomylikeitisrightnow, Ihearmorediscussionofspecstores amongdistributorsthanIhaveina while. d Potentiallaundryownerscan purchase cspecstores datalldifferent phases 3anywherefromwhileit 9sstill underconstructiontoafterithas openedforbusinessandprovenits abilitytoattractcustomers. aker d Formoreinformation, pleasecall:Tollfree(800)741-9840 orvisitwww.americanchanger.com Adda cBillBre toyourLaundromat! "Changelargerbills intosmallerbills withanautomated attendant "Improvecustomer service&reduce laborcosts "Reduceemployee theft "Choosefrom8 differentfront& rearloadmodels Dispenses regular cstreet-grade d bills PleaseCircleReaderReplyCardNo.218 coinlaundry.org September2008 26 COVERSTORY OnTime,OnBudget,OnTarget Onceyourlaundryconstructionprojectisunderway, thetrickistokeepisondeadlinewhilealsonotbreaking thebank. cIdoa%nancialbudgetfortheproject, dGraysaid. cAnd onewaytokeeptheprojectontargetistoprovidea contingencyforunexpecteditems.Itypicallycangetby witha5percentcontingency,butintheearlydays,Iused touse10percentofthetotalprojectcost.Forexample,if youthinkyou 9regoingtospend$500,000,yououghtto haveacontingencylineof$50,000fortheunexpected.To me,thathasbeenthekeytomeetingmy%nancialgoals. d Grayaddedthathetriestousethesamecontractorsstore afterstore,whichhelpsinthebudgetingprocess. cIcansay, 8Doyourememberwhenwebuiltsuchand suchstoreoverhere? 9 dheexplained. cIfI 9mgoingtobuild astore 80percentofthatsizewiththesamecontractor,Icanuse thathistorytocreateanewsetofbudgetnumbers. d Onceamonthduringtheconstructionprocess,Gray willreexaminebudgetestimates. cAtleastonceamonth,Irevisemybudgettoseewhere I 9mgoingtoendup, dhesaid. Asfaras%nishingyourprojectontime,it 9scrucialto prepareadetailedconstructionschedule. cCoordinationwithallofthetradesisimportant, d Tomasiansaid. cCertainthingshavetohappenatcertain times.Theplumbershavetogoin%rstanddotheirunder- groundworkandsoon.Aslongassomebodyis communicatingwellwitheverybody,you 9reOK.That 9s whatdistributorsarefor,schedulingequipmentdeliveries andinstallations,andknowingwhateverybodyisdoing. d cWeputonourscheduleswhichcontractorisgoingto dowhatonwhichdayfortheentireproject, dsaidGrayof hisproductionschedules. cWealsothenhaveapagethat liststhename,addressandcontactinformationofevery- oneinvolved. cAndwhenIpresentthistothecontractors,Itellpeople, 8Ifyou 9renotgoingtobereadyontime,don 9tcallme.Call thenextguyonthelistthatyou 9regoingtoscrewup. 9 d Amajorroadblocktoopeningyournewstorecanbe waitingforgasconnections,electricalservicesandother utilities.Therefore,it 9simportanttocontacttheutility companiesthatwillbeprovidingservicetoyourcoin laundryimmediately. cWe 9vehadmoredelayswithutilitycompaniesthan contractors, dTomasiannoted. cI 9vehadtotakefouror monthstogetgasconnectionsandpermits. cThe%rstthingyoudoisacknowledgewhotheutility suppliersare, dheadded. cYouhavetocorrespondwith them.Idoitinwritingtoletthemknowhowmuchgas loadandelectricloadI 9mgoingtoneed.AndIdoitin writingsothatit 9sdocumented. d CommonPitfallstoAvoid Thenumberofthingsthatcanback%reduringyournew construction,storebuildoutorretoolingprojectisstagger- ing.Hereisjustashortlistofthemorecommonmistakes thatlaundryownerscanmake: " Notmatchingthestoretothelocation. cSometimes thelocationwon 9tsupportalaundryaslargeastheowner wantstobuild,orthelaundryiswaytoosmallforthe location, dGraysaid. " Failingtosecuretherequiredpermits. Foryour businesstooperate,aCerti%cateofOccupancymaybe requiredbyyourcityortown.Sobesuretocheck.The permitsthatyouandyourcontractorinitially%lewithyour localauthoritiesarethedocumentswhich,when%nal inspectionsarecompleted,willfacilitateyourstore 9sbeing grantedtheCerti%cateofOccupancy.Makesureyou receiveandmaintaincopiesofthesepermits.Contractors sometimesfailto%leforsuchpermits,eventhoughthey havecollectedtheappropri-atefeesfromyoupriorto beginningwork. TheJournal September2008 27 COVERSTORY " Improperequipmentmix. It takessomeexperiencetolayouta laundrycorrectly 3therightamount andcapacityofmachines,alongwith ampleaislespace,customerservice areas,etc. " Notmakingsureyouhave adequateutilitiesavailable. Ifyou don 9thaveutilitiescloseby,itcanbe almostimpossibletoopenyourlaun- dry. Yourstore 9sutilitiesarethe lifebloodofyourbusinessinmany ways.Afterall,water,gasandelectricity are,inessence,whatyouaretruly providingyourlaundrycustomers. Therefore,whetheryouarebuildinga storefromthegrounduporconverting anexistingbuildingintoaself-service laundry,you'llneedtoknowwhether youcangetenoughofeachofthese utilitiestomeetyourbusiness 9needs. Typically,alettertotheutility companiesthatsupplytheseessentials willbeansweredwithinafourtosix weeksandwillprovideyouwith informationonavailability,procedure andestimatedcosts. " Aninsuf&cientsetofarchitec- turaldrawings. cThosedrawings needtoshowisometricsofplumbing, plumbingsizes,electricalserviceand ventilations, dTomasiansaid. cIt shouldn 9tbejustacoupleofpiecesof paperscratchedoutshowingsome machineshereandthere.There shouldbesomedetail. d " Nothavingenoughmoneyleft overforyourgrandopening. You can 9tspendyourentirebudgetonjust theconstructionphasealone. cMoneyisnotgoingtocomein thatfastwhenyou%rstopenup, d LaMainaexplained. cYou 9vegotto haveextracash.Somepeoplemisjudge howmuchitreallytakes togetintoalaundry.It 9s verycapital-intensive, evenwithoutowning thebuilding 3justthe leaseholdimprove- mentsareabigfactor. Andit 9snotthateasyto %nanceleasehold improvements.Infact, aboutone-thirdofthe totalcostofalaundry isthoseimprovements youputintomakeita laundry. d It 9snotwisetoattempt togetintothisbusiness onashoestring. cWhenyoubuilda newstore,itneedsto looklikeanewstore, d Grif%nsaid. cYoudon 9t wanttoputinallnew equipmentandthen haveanunsightlyor dimlighting.Isee peoplegointobusiness andeitherdon 9thaveenoughcapital ortheyspenditsomewhereelse.They get90percentcompletedandthey 9re outofmoney.Thenthey 9vegota storethatdoesn 9tappearasifit isnew. d " Creatingbulkheadsthataretoo narrow. Althoughyoudesignthe storemainlywiththecustomerin mind,don'tforgetabouttheperson whomustmaintainyourwashers. Whendesigningastore,it 9salways inthebackofyourmindthatyou 9re makingdollarspersquarefoot,soyou wanttoputasmuchmoney-making equipmentintotheavailablesquare footageaspossiblewithoutcompro- misingthework'ow.However,in doingso,somelaundryownersend upcompromisingthesizeoftheir bulkheads. Onpaper,athree-footbulkhead lookslikeitwouldbeeasytogetinto torepairamachine.Buttheplumbing comesupthroughthere,andpretty PleaseCircleReaderReplyCardNo.259 Lowcostlaundryequip.com Lowcostlaundryequip.comsellshighquality parts,soap,accessories,andusedequi

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