Increase Your Coin Store’s Internet Presence - “Welcome to the new phone book”

In the coin laundry business, it is important to always keep one step ahead of the pack.  It is not only necessary to keep your existing customers but, perhaps even more importantly, you must obtain new customers to gain market share.  At the very least, you need to replace customers who have moved or otherwise stopped patronizing your laundry.

In the past, the telephone directory was an optimum source for the consumer to find local businesses who offer the services that they need.  In this digital age, a more effective tool for consumers to find your business is the almighty Internet.  How can you ensure that your customers find you?  Building and maintaining your Internet presence is the key!

I’m going to share ideas for building a web presence without creating a custom website.  There are many websites where you can “fill in the blanks” on large established networks like Google, Yelp, and Facebook.  The best part is that basic listings on these sites are completely free—all it takes is time!

I’m listing a few specific options below which I feel are most suited to a coin laundry business (in order of priority):

Google

The most obvious place to start is with the leader in Internet searching—Google.  Since most people use Google as their preferred method to search the web, it makes sense to make sure that Google has complete information about your business.  Start by visiting Google Places at www.google.com/places.  If you don’t have a Google account, you’ll need to start by signing up for one.  After you sign in, click the List Your Business link and follow the instructions.  Include as much information about your business as you can provide.  This will help Google to list your business in the results when someone searches for your business type and/or location.  You can also explore business listings on the other popular search engines like Yahoo, Bing, Ask, and AOL (Ask and AOL get data on their business listings from infoUSA).

Yelp

Yelp is a website that allows consumers to review their experiences with businesses they have visited.  If your business is not currently on the site, a customer can add your business if they want to write a review.  You may already be on Yelp!

To get started, visit www.yelp.com and search for your business (you can do this without signing up).  If you find your business, you can click the red Claim This Business button to start refining your business listing (you’ll have to sign up first—it’s very simple).  If your business is not listed, you’ll definitely want to sign up and get yourself “on the map.”

Make your listing as relevant as possible by adding store hours, photos and even special offers.  Also, by taking an active role in your business listing on Yelp, you can respond to any review or comment with your “own side of the story,” either publicly or privately.

Yelp also has applications which can run on most of the new cell phones and mobile devices.  Running these “apps” is a wonderful way for customers to find businesses close to them, especially when traveling in an unfamiliar city.  Make sure you capture these customers by ensuring that your laundry is listed!

YouTube

YouTube allows users to post videos of virtually anything.  What better way to show off your store, equipment and amenities than with a video?  A quick video tour of your store with simple voiceover explaining what is being seen is both easy and informative.  Don’t have a video camera?  Ask your friends or family if they have one you can borrow.  You can even buy a simple video camera that is made to shoot videos and post them to YouTube for just over $100 (click here).  Make sure to keep you overall video short (about 3 minutes).  The attention span of the typical Internet user is short!

Once your video is ready, log on to www.youtube.com and sign up for an account.  Click on the Upload link on the top of the screen and upload your video.  Make sure to fill in the information associated with your video while uploading to get the maximum exposure.  In the tags section, list words that you think people would commonly use to search your business (laundry, Laundromat, your city name, your neighborhood, etc.).

Facebook

No article on increasing your web presence would be complete without listing the king of social networking sites, www.facebook.com.  However, you’ll notice that I’m not listing this site as the top priority.  Having a Facebook page for your business is probably a good idea and it can be used to promote your business.  However, I don’t think that people are using Facebook like a phone book to find local businesses (although that could change in the future).

To create a Facebook listing for your business, you first need to sign up for an account (for you personally) and then you can create a page for your business with the following link: https://www.facebook.com/pages/create.php  Once your business page is created, you need to get people to connect to your page, generally by clicking the Like button on the page.  By doing this, you will create a network of people who you can connect with.

One important note regarding Facebook: it is best to create new posts frequently.  These can be announcements of special offers, new services, relevant news articles, videos, or anything else.  The most important way to benefit from Facebook is with consistent and fresh listings on your page.

Twitter

Twitter allows users to post short messages (under 140 characters) and share them with the world.  There has been a lot of talk about www.twitter.com being the next best thing on the Internet and it does have some specific uses.  As far as its relevance to a coin store owner, I’m still not convinced.

If you want to experiment with Twitter, it’s very easy to sign up and start “tweeting” (this is what’s called when you post a message on the site).  If you are using this exclusively for your business, make sure your username contains your business name (i.e. tomslaundry).  In order to use Twitter effectively, you must tweet often and consistently.  In the land of Twitter, anything older than a week is not relevant.

FourSquare

FourSquare is a newer website which is similar to Yelp (listed above) but with more of a social networking style.  With this site, people can locate friends in their social networks and arrange to meet up at featured locations.  They can also leave short, twitter-like comments on the sites that they are visiting.  Although enhancing a location listing on www.foursquare.com couldn’t hurt, this site might be more suited to a restaurant or bar or other social gathering point.  I list it here because it’s an interesting blend of the above sites and it may be something to look out for in the future.

By following these simple guidelines, you can easily create a web presence for your business without spending any money or creating a custom-built website.  I think you’ll be surprised how many people find your coin store by searching the web!

Open the Door to Increased Profits - The Distributor Open House

Most commercial laundry equipment distributors host an Open House at least once per year and it’s a good idea to make plans to attend!  The coin laundry store owner who takes advantage of these events will surely benefit and help better their business.

I’m sure that you’ve heard it before, but it’s worth repeating here.  The business that is ignored and stagnant is the business that will be surpassed by the rivals.  This is especially true with coin laundries.  In order to keep your business competitive, thriving, and alive, you must nurture and attend to it.  One of the simplest ways to do so is to attend your distributor’s Open House.  Besides taking a fresh look at your business, you will receive tangible benefits from actively attending these events.  Do yourself a favor and take advantage of them!

Service Maintenance and Troubleshooting

Typically, a distributor’s Open House is centered around service seminars taught by industry experts.  These representatives are well-versed in their field of service and preventative maintenance of laundry equipment, and any time spent in these seminars is worthwhile.  Even if you are not planning on servicing your own equipment, it is still a good idea for you (or a representative from your store) to attend this seminar to learn about preventative maintenance.

Network with Other Owners

In this industry, it is rare to get an opportunity to rub shoulders with other people in the same business as you and potentially speak to them and see what’s working (or not working) in their specific businesses.  Many Open Houses facilitate networking sessions where owners can come together and share ideas and thoughts about their industry.  Surrounding yourself with other people in your business inevitably leads to learning about ways to improve your own business.  Why not take advantage of these rare opportunities whenever possible?

New Product Demonstrations

New products are being developed every day and it’s a good idea to be aware of these industry innovations, even if you are not ready to buy new equipment now. At an Open House, you can see, touch, and examine new products that can help your business make (and save) more money in your day-to-day operations. In the last several years, great strides have been made by commercial laundry equipment manufacturers to reduce the energy consumption of laundry equipment. When the coin laundry business is “selling utilities,” that alone is a good reason to attend the event.

Sales Prices

During an Open House event, you can be sure to be offered the best deals on everything the distributor has to offer.  This will include items like financing specials, one-day-only coupons and sales, and excellent pricing on replacement parts.  Make sure you take the opportunity to stock up on commonly used parts since the best pricing is available during these events.

Seminars and Self-Improvement

A good Open House event will most likely include various seminars and informational sessions designed to improve your knowledge of industry topics.  There are very few opportunities for this type of instructional learning and it’s a good idea to attend as many of these events as possible.  A well-done seminar will not only teach you something about the topic at hand, but will also generate questions (and answers) regarding your business.

Industry Vendors and Guests

Many Open Houses bring in industry representatives and other related guests to be available for customer questions and information.  Speaking to these representatives may spark something that benefits your business or answer a question you’ve always had regarding their products.

Solve Specific Problems

Are there challenges that you face with your equipment or daily operation that you can’t seem to resolve?  Making a list of these issues and attending an Open House with clear goals is a great step to getting them resolved.  At these events, you can typically speak to nearly every employee at the distributorship and with several manufacturer representatives as well.  If it’s a service issue, there are generally technicians available to speak to.  If it’s an equipment feature that is not working, you can speak to the manufacturers themselves.  If it’s a sales problem, many times this is an opportunity to speak to the Sales Manager or even the President of the company.

Free Food & Prizes

Open Houses are typically fun-filled events with plenty of food and the opportunity to win prizes all day long.  Take advantage of the free food and drink throughout the day!  In addition to door prizes, many distributors give out incentives and grand prizes as large as a free piece of laundry equipment.  That definitely makes it worth a little of your time!

Don’t miss out on a distributor’s Open House as a business-building experience for yourself.  These events are a valuable resource for the coin laundry store owner and a good opportunity for you to breathe some life into your business.  “One of the most valuable things you have to offer is your personal time,” according to Richard LaMaina of Equipment Marketers. “The Open House is an opportunity to spend that time investing in yourself!”  See what’s out there, learn about the industry, solve a problem that’s been nagging you, and invest some valuable time into your future!  At the very least, I’ll bet you’ll walk away with a full belly, some new knowledge, and a few free samples!

Untangling Card Systems for Coin Laundry Stores

Currently there are several different card systems for coin laundry stores.  Smart card, Mag card, radio frequency ID (RFID), credit card, online, offline…  The more choices there are, the more confusing it can be.  In this article, I’m going to attempt to cut through this tangled web and simplify the choices for the coin laundry store owner.

Offline System (typically Smart Cards)

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We’ll start with the Offline System.  This is one of the most inexpensive and simplest card systems.  This system typically uses a Smart Card which has a small embedded chip.  A smart card makes it possible to read and write values directly on the card.  This is one of the most important differentiating features of this system.  The money is stored on the card.  Since the money information is stored directly on the card, if the customer loses the card, the money is lost with it.

The advantages of this system are the relatively low hardware cost and simplicity of the system.  The Card Transfer Machine doesn’t need to be wired into a master system and the card readers which are in the laundry equipment do not need to be wired to a main computer.  After the money is stored on the card, it is removed by the equipment card readers as the cycles are activated.

One disadvantage of this system is the cost of the smart cards themselves.  With a cost of several dollars each, providing the cards at no cost to the customer can be a challenge.  Also there is no tracking of your customers or the specific usage of the machines.

Online System (typically Magnetic Stripe Cards or RFID Cards)

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Another laundry card system is the Online System.  This system typically uses Magnetic Stripe Cards or RFID Cards which contain an account number for a particular customer.  In this system, the card identifies the user’s account but the account information (the money) is stored in a central computer in the store.  When a customer swipes their card in the Card Transfer Machine, the account number is transmitted back to the central computer, along with any cash value that has been processed by the Station.  The central computer stores this information.  When the corresponding card is swiped in the card reader on the laundry equipment, the account number is again transferred to the central computer.  The computer then verifies the money in the account and removes the appropriate amount for the cycle.  The card reader then activates the laundry equipment.  The important factor of this system is that the money is stored in the central computer.  Because the card only contains an account number, if a customer loses their card, it is possible to provide the customer with a new card which links to their same main account.

One of the main advantages of the Online System is that you can gather more information about your customer base.  Since there is now an account for each customer, you can encourage them to provide their personal information.  Having your customer’s name, address and especially email is a very valuable marketing advantage.  This will allow you to directly market to and retain your customer base.  You can also offer incentives such as “10^th wash free”, a free cycle on their birthday or other marketing “freebies”.  By tracking customer’s usage and creating an intensive direct marketing campaign, you can ensure that you are doing the best to keep your valuable customer.

The Magnetic Stripe Cards are less expensive.  This allows you to provide them at little or no cost.  Some Online Systems use an RFID (Radio Frequency Identification) Card for account number identification.  This allows the user to activate their card by tapping it on a small receiver.  As RFID technology continues to mature, the cost on these cards will surely decrease.

Another advantage to an Online System is that you can have complete remote access to customer account information, machine usage, and auditing of cycles.  With the proper machine compatibility, you can also adjust store pricing without even stepping foot into the coin store! Also, with this system you are no longer locked into $0.25 (quarter) increment pricing.  You can adjust prices down to the penny.

The Online System requires the installation of complete wiring throughout the store (since the Card Transfer Machines and laundry equipment must be hard wired to the central computer).  In most cases, the card readers in this system replace the coin drops, therefore eliminating the ability to accept coins.  These systems generally include at least two Card Transfer Machines so that if one machine fails, another is available to still allow customers to add money to their cards.

Direct Credit Card System

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One of the newest developments is the Direct Credit Card System.  In my opinion, this is one of the most exciting developments in the coin laundry industry in many years.  With this system, credit card readers are placed on the laundry equipment, without replacing the coin drops (customers can still use coins to activate the equipment).  A customer then uses the credit card that they already have (and use in every other consumer business) to swipe on the laundry equipment and activate the machine.  In most cases, the credit card readers are connected to the main computer in the store via an encrypted wireless system.  This makes the system much easier to install.

Other advantages of this system include:  (1) it is very comfortable for the customer to use and understand because it’s just like using a credit card at a gas pump; (2) the customer does not have to purchase a separate card and put funds on that card; (3) customers can use credit instead of having to use their cash; (4) remote access and monitoring of the system in any Internet browser; and (5) the money is automatically deposited in your bank account each night, reducing collection costs!

Some of these systems even provide for an Online System optional add-on which allows the use of magnetic stripe cards as outlined above.  This allows you to add the marketing features that the Online System provides.

The Direct Credit Card System is not inexpensive.  As with most leading edge technology, the cost of entry is high for early adopters.  However, you don’t have to do your entire store at once—you can add readers over time.  I would suggest doing a few machines in your store to see how the system works for you.

If you’ve read my previous articles, you know that I am a firm believer in researching and comparing the ongoing costs associated with any operation.  This is no different.  There are methods to combine the individual cycles into a single (larger) transaction to keep these costs to a minimum.  Also, this system works in conjunction with credit card processors.  Make sure that you understand and compare all of the ongoing fees.

Laundry card systems are an exciting new add-on to your laundry store that, when set up and used properly, can provide a great convenience for your customers.  In addition, the marketing advantages will allow you to gain new customers and maintain your existing customers.

Speaking on Laundry Equipment Efficiency

Last month, I wrote about the concept of Price versus Cost when choosing laundry equipment and how it’s important to research all aspects of potential equipment to determine what it costs in the long run.  This month, I’m going to dig in deeper on what defines one important factor of laundry equipment:  efficiency.

These days, there is a lot of “green” marketing which speaks of conservation, eco-innovation, sustainability and efficiency.  In other industries, many of the products and services that are marketed as green products sometimes cost more and don’t quite work as well.  Purely as a business owner, if the green revolution costs you more for a lower quality product, what’s the incentive to move towards a green initiative?

As a laundry owner, what does going green mean to you?  More importantly, are there tangible benefits that you can obtain from the green revolution which don’t cost you more money but instead make you more money?  I’m happy to report that, in the laundry business, going green with more efficient products can make you money!

The main reason that a more efficient product makes the laundry owner more money boils down to one simple principle:  The coin laundry business is, in a large respect, selling utilities.  Customers come to your store and use your equipment which in turn uses large amounts of water, natural gas, sewer, and electricity.  These combined utility costs are one of the largest expenses for a coin laundry owner.

The coin laundry business is selling utilities, so one of the most basic and effective ways to cut costs is to lower your utility costs.  The most basic way to do this is to choose equipment that is the most energy efficient in the industry.

Let’s start with the washers.  The most obvious (and costly) utility used in a washing machine is water.  If you still have top loading washing machines in your store, these are the most obvious water guzzlers.  The newer front-loading washers can reduce water consumption by as much as 30% from top-loading washers.  However, even the newer front-loading multi-load washers have a much lower water usage than their older counterparts.  Great strides have been made in recent years to lower the water consumption of all washers and this efficiency can directly transfer to bottom line savings to you, the laundry owner.

Of course, the next obvious utility saving factor is sewer costs.  Lower water usage in your equipment translates to less waste water produced and less impact on the sewer system.  In many cases, the sewer fees are calculated by measuring the direct water usage in a facility.  Sewer costs and impact is a factor that is more and more important these days.

If the washer uses less water, it most likely will use less hot water.  This is important because that hot water doesn’t heat itself; it costs money to make that water hot!  So, when a washer uses less hot water, there is a lower associated charge (in the form of natural gas, in most cases) to heat that water.

In addition to all of the water-associated efficiencies that the modern washing machines have, there is a factor which saves on another important utility cost:  electricity.  Most modern washing machines have inverter-driven motor systems.  These inverter motors allow motors to ramp up to speed, maximizing efficiency and lowering start-up amp draws.  Not only does this save on electricity costs, but it maximizes the life of the motor and associated sheaves, belts, couplings, and other system components.

The final utility saving factor in the washing machine is the remaining moisture content (RMC) within the laundered items after the washer is complete.  Front-loading washers, especially soft-mount washers, spin at very high speeds and the resulting increased G-force squeezes extra moisture from the laundered items.  The savings from this lowered RMC is realized as the clothing is dried (for a shorter period of time).  Let’s move on to the dryers and discuss this further.

As for the dryers, the utility saving equation is much simpler.  Most all of the utility usage in a clothes dryer is in the form of natural gas.  The more time that a dryer is burning gas (heating), the more gas is consumed.  A direct measure of the gas used by a dryer as it is operating is the BTU rating.  Simply put, the higher the BTU rating, the more gas that a dryer uses.

When we remove the clothes from the washer that has spun them out with a very high g-force to reduce moisture content, it takes less time (and BTU energy) to get the clothes to the same level of dryness.  Now, there are those that say that less time in the dryer means less income for the dryers but I disagree.  Everything is relative in this world, including dry time.  I would suggest that you raise your dryer vend prices to achieve the same income for a lower dry time.  The key is that your customers will spend less time in your coin laundry.  Your customers will appreciate this fact.  With soft-mount washers paired with efficient dryers, you can market your laundry as a Quick Wash and Dry store, a marketing advantage which would surely appeal to your customers in this fast-paced world!

The most important point about dryer efficiency is that the BTU rating of the dryer relates directly to the gas usage.  There are some dryers on the market which are built to be very efficient in their gas usage and the conservation of heat within the dryer.  These dryers are built with better insulation, improved air circulation, and more efficient ignition systems.  When evaluating a dryer, look carefully at the BTU rating.  A dryer that can dry items in the same time as an older dryer with a lower BTU rating is worth its weight in gold!

Washers and dryers have come a long way in the last several years in terms of efficiency.  The good news for you, as the coin laundry owner, is that you can directly translate these energy savings to money in your pocket.  With the energy efficiencies built into the latest and greatest equipment, you owe it to yourself to examine the savings that this more efficient equipment can provide.  With careful planning and careful vend price analysis/adjustment, newer equipment can help to pay for itself!

Selling Price Versus Cost of Ownership

Okay, you’ve made up your mind that you need to buy some commercial laundry equipment, either as an initial purchase for a new coin store or as replacement for some older equipment.  Now what?  How do you determine which brand of equipment to buy and from what source?

You may start by comparing laundry equipment from all of the various manufacturers, comparing spec-to-spec to make sure that they match up.  Once you’ve determined the comparable equipment from each manufacturer, you just compare the prices and make your decision, right?

I suggest there are many additional pieces to the puzzle aside from the selling price.  When you purchase something that lasts 10-15 years, the process of buying that item changes from a simple purchase to an investment.  When making an investment in something, you look at things a little differently.  If the equipment isn’t reliable or has other operational costs which you didn’t anticipate, 10-15 years is a long time to deal with that problem and can end up costing you much more than you bargained for.

There is one thing to keep in mind, no matter what or where you choose.  Don’t forget about the cost of ownership for the equipment!

There are many other products that you may be familiar with which have a low selling price but a high cost of ownership.  There was a time in the recent past when the Hummer SUV vehicles were selling at very low comparative prices.  The reason for this price drop was based mostly on the price of gas at that time.  The Hummers used such a large amount of gasoline that the cost of ownership was prohibitively expensive.

Another example is certain inkjet printers.  These days, you can open the Sunday paper on any given week and find inkjet printers at a very low selling price.  However, the ink cartridges which are quickly used up by this machine are very expensive.  The cost of using this product on a daily basis, again, the cost of ownership, is very expensive.

Listed below are some very important factors that should be considered when choosing commercial laundry equipment:

Washer Efficiency

In recent years, great strides have been made in washer efficiency, mostly with the use of front loading washers and inverter-driven (ramp-up) motors.  What is the water usage of the washers?  How much residual moisture is left in the clothes after spinning out? (High speed spin out can effectively pre-dry the clothes.)  How much electricity and torque is required when the motor rotates the basket?

Dryer Efficiency

There have also been advancements in dryer technology which help dryers to be more efficient.  Does one dryer have a lower BTU rating with the same dry results as equipment with higher BTU ratings?  (The BTU measurement corresponds to the amount of gas that a dryer uses; lower BTU = less gas.)  Does the dryer have insulating features which help to contain the heat within the dryer (increasing efficiency and keeping the laundry cooler and quieter)?  Are there moisture sensors to help limit gas usage after the clothes have dried?

Labor and Parts Warranty

Most distributors provide a labor warranty and support the manufacturer’s parts warranty program.  How long is the labor warranty?  How long is the parts warranty?  Which parts in the machine have limited warranty coverage and which are fully covered?  Does the warranty cover the original owner only?  Read the fine print here!

Distributor

As you initially invest in the equipment and throughout its life cycle, it is important that you have a reputable distributor to help you expertly install and support the equipment purchase.  How long has the distributor been in business?  How knowledgeable is the salesperson?  What quality of service can be expected?  Is there a fully stocked Parts Department and service technicians to support the product?

Durability of Equipment

Admittedly the most difficult aspect to gauge is the “lasting power” of the machine after continued use, since most times you are buying the newest model.  Do you have any experience with this brand of equipment?  Can you speak to someone who already owns the brand that you are considering?  Can you go to a showroom and put your hands on the machine in question, perhaps even taking off the covers to examine the inner workings?

There are many factors which you must consider when making an investment in laundry equipment.  It is not a simple purchase, based on the selling price alone.  Instead, it’s an equation which needs to be considered carefully in order to maximize the money that you’re spending, both now, and 10-15 years down the road.  Doing your homework now can save you a lot of stress, time, and money in the long run.