Electrolux Professional Equipped Vended Laundry · Exclusive profit building features — only from...

Electrolux Professional Equipped Vended LaundryInvestor Opportunity Guide

Is a vended laundry business right for you? This guide will introduce you to the exciting aspects of owning a self-service laundry store, and provide reasons why partnering with Electrolux and BDS Laundry Systems can be a smart investment. We are experienced at helping entrepreneurs establish successful laundries with the right mix of equipment, the right design, at the right location. Our team knows what it takes to attract customers and keep them coming back — week after week, and year after year. It all adds up to a compelling opportunity for a profitable future.

Electrolux Professional Equipped Laundry 2

The opportunity is now. Your future starts here.

Searching for success? Let us introduce you to the lucrative world of vended laundry.

A niche industry, serving an expanding marketAccording to the Coin Laundry Association (CLA), there are currently around 35,000 self-service vended laundries operating in the United States. These stores generate an estimated $5 billion in gross revenue annually. Like food and shelter, clean clothes are considered a necessity of life and vended laundries provide a basic health service for millions of Americans.

The laundry business is far more recession-proof than virtually any other business — the recent challenging economy has tested and proven this fact. In good times and bad, people must clean their clothing. Laundries provide a valuable service to communities and families everywhere.

During periods of recession, when home ownership decreases, the market expands as more people are unable to afford to repair, replace or purchase in-home washers and dryers, or as they move to apartment and rental housing with inadequate or nonexistent laundry facilities.

Flexible solutionsVended laundries are found in virtually all types of areas, from big cities and small towns to more remote rural settings. The size and type

of Electrolux Equipped Laundry best suited for a particular area varies depending on a number of factors. Electrolux products offer total flexibility to meet the needs of any local market, while maximizing the return for the investor.

Whether an investor is looking to build a new store from the ground up, or to refurbish an existing vended laundry business, Electrolux offers smart solutions designed to appeal to consumers from all walks of life. Many people find it easier and faster to use their local laundromat which provides larger capacity, faster and more efficient washers and dryers than found in the home or multi-family building laundry rooms.

Industry data and background information courtesy of the Coin Laundry Association.


Achieve your dreamsUnlike other opportunities such as franchised quick-service and fast-casual restaurants, specialty retail stores and other service oriented businesses, a vended laundry requires significantly less up-front capital, labor and overhead costs to operate and manage. Why? Customers do most of the work! When it comes to a financial and time commitment, a vended laundry offers tremendous advantages over most other types of businesses.

Experience the benefits of owning a vended laundry No franchise fees

Potential for strong return on investment

Can be a part-time addition to an existing career and family obligations

Low labor costs

Easy to manage

Special technical skills are not required

No accounts receivables; most revenue generated each day can be collected/deposited the very same day

Low fixed costs

Minimal inventory costs

Zero inventory spoilage factors

Virtually recession resistant

No complex accounting systems

Minimal employee and customer concerns

Various tax advantages for business owners

Chart your course to total financial freedom with a vended laundry business.


Owning a vended laundry business can be a part-time addition to your existing career


An Electrolux Professional Equipped Laundry offers benefits no other manufacturer can match.

Unrivaled laundry expertiseA self-service laundry equipped with Electrolux Professional washers and dryers is a unique business and smart investment for the savvy entrepreneur. By considering the needs of both store owners and consumers, Electrolux incorporates intelligent, field-tested features into its products which in turn makes doing laundry more convenient and more efficient for end users. And it creates greater profit opportunity for store owners.

Electrolux Professional is the global leaderin developing long-lasting energy and waterefficient products. It’s a company you can rely on for the very best profit-generating products. With more than 100 years of experience in developing rugged industrial equipment, Electrolux understands the laundry business better than any other manufacturer. The company is dedicated to providing the industry with technologically advanced, reliable washers and dryers that will stand up to the rigors of commercial operation.

Refreshing store design ideasThe Electrolux Equipped Laundry “Full Store Program” provides new owners with flexible guidelines and specifications to create a modern, attractive and consumer friendly environment. In addition to professional equipment mix and store layout plans, your Electrolux distributor can provide you with consumer-tested design ideas for the “look and feel” of your store, including paint color recommendations for walls and trim, as well as matching floor material options and other complementary finishes that will set your laundry apart from the competition. A

comprehensive interior sign package is also included at no additional cost. Professionally designed and fabricated exterior signs are available for purchase.

A new era in commercial laundryTechnological advancements are rapidly changing the landscape of the commercial laundry industry. While other manufacturers have been slow to incorporate new features into their products, Electrolux is setting the standard for quality and innovation. Ongoing commitment to research and development, as well as stringent quality control, ensure owners receive the very best products available.

Electrolux high-speed washers and energy efficient dryers deliver the ultimate laundry experience. Easy to use machines with advanced built-in technologies like Compass Pro® and optional text messaging help capture customers for life — and increase your profits. All products include an industry-leading warranty backed by exceptional service.

Commitment to sustainabilityElectrolux has a strong commitment and long-term approach to environmental responsibility and product development. Its criteria for products include low electricity, water, and gas consumption — all without compromising functionality and performance. With new programming mechanisms, innovative designs and adaptations for 98% recycling, its “green” range of products are the ideal response to the requirements of sustainable development.


Exclusive profit building features — only from ElectroluxAutomatic Water SavingsSave a fortune on water—as much as 30% on small wash loads. AWS automatically calculates the actual weight of the load—then adds precisely the right amount of water for best results. It significantly

reduces water consumption and energy costs. AWS is only available from Electrolux, the technology leader.

Compass ProRevolutionary microprocessor features a large display and a robust knob for easy program selection. Offers up to 18 languages, easy access to USB, and superior wash performance. Easily

adjust parameters such as water levels, temperatures, and drum action to lower costs and meet customer demand. Real time clock for time of day pricing.

EcoPowerSave up to 15% in gas. This unique technology determines when garments are dry and then automatically lowers the dryer temperature. Your customers are satisfied because the dryer keeps

turning, resulting in less wrinkling and wear on garments. With reversing dryer cylinders (standard) your efficiency and savings are even greater.

High Spin 450GFaster drying time and lower gas consumption with Electrolux High Spin washers– now at 450 G-force extraction. Soft-mount technology for easy installation on wood floors, upper floors, and over

basements. Laundries benefit from faster throughput which translates to greater customer turns and profits. You’ll create customers for life with short laundering times and outstanding wash results.

Reversing Dryer CylindersWith standard Electrolux reversing cylinder technology, garments don’t tangle so they dry more quickly using less energy. Dry more uniformly for superior results without “wet spots”. Electrolux

dryers are precision-engineered for efficiency, ease of use, and superior drying results.

Pronto Combo Washer/DryerWash and dry in one machine. Your customers will enjoy their laundry experience like never before! You’ll distinguish your laundry and create life-long customers. Uses less than half the space of a

separate washer and dryer. Pronto can be installed on wood floors, upper floors, and over basements. This unique 350 G-force soft-mount combo washer-dryer does not require a concrete foundation or steel base.

Super Balance / Power BalanceElectrolux Super Balance and Power Balance extend the lifetime of your machine. These unique features precisely and automatically calculate the amount of unbalanced load in the washer drum,

then adjusts distribution and extraction speeds to maximize water extraction. Lower maintenance costs, less vibration, maximum water extraction, and lower energy costs.

Optional Text MessagingThis feature generates customer loyalty and is a valuable marketing tool. Customers receive a text from the washer telling them when washers are available, when their laundry will soon be done,

and more. Owners can have washers send text messages for service, access price programming menu, check coin count in money boxes, and more.

Sanitizing RinseAnother unique Electrolux feature. Customers appreciate having the choice of sanitizing the drum prior to washing their personal laundry. You have the ability to charge for the rinse, generating additional income.

Not all features shown are available on all models. Ask for details.

AwsAuto Weighing

CcCompass Control

EpEcoPower

HiHigh Spin

RdReverse Dryer

PrPronto

PbPower Balance

TmText Messaging

SrSanitizing Rinse

Electrolux Compass Pro® ensures the best utility cost optimization and program flexibility in combination with the market’s most user-friendly interface.


Electrolux provides comprehensive store design services and professional signage


Location matters above all elseSelecting the right location and negotiating favorable lease or purchase terms are extremely important aspects that can ultimately determine the success or failure of any vended laundry. Your authorized Electrolux Professional Laundry distributor, BDS Laundry Systems, is a terrific resource as they are well experienced in helping to identify potential locations and conducting in-depth demographic studies of the surrounding area.

Vended laundries are found in virtually all types of areas, from big cities and small towns to more remote rural settings. The size and type of Electrolux Equipped Laundry best suited for a particular area varies depending on a number of factors. Electrolux products offer total flexibility to meet the needs of any local market, while maximizing the return for the investor.

Equipment mix and layoutPerfect balance. It starts with exactly the right mix of washers and dryers based on location and demographics to ensure maximum profitability per square foot. The national trend is to larger machines with higher vend prices, but different demographics and building layouts require different equipment solutions. The talented team of development experts at BDS Laundry Systems have the laundry business experience you need to make sure that when you open your doors, you’re ready to maximize income potential.

A powerful brand name, backed by a worldwide leaderThrough thoughtful, well-funded and creative advertising and marketing support, Electrolux is fast becoming one of the most respected and trusted names in commercial laundry. The Electrolux appliance brand is instantly recognized by consumers as representing the pinnacle of quality, design and innovation.

When you partner with Electrolux, you gain the momentum of a brand that is changing the core of the appliance industry in North America and throughout the world. Opening an Electrolux Equipped Laundry allows you to take advantage of this powerful image and share in the success of our combined efforts. You can capitalize by featuring the official Electrolux brand logo on your interior/exterior signs as well as in local advertising and marketing at no additional cost. This opportunity provides the main advantage associated with franchising, without paying expensive franchise or royalty fees.

The keys to success: the right location, smart store design and a consumer trusted brand.


Exceptional self-service laundries appeal to a wide array of consumers.

Traditional users of vended laundries are just one segment of the potential marketVended laundries serve a growing and diverse segment of the population. A majority of users are considered “traditional” laundry customers, identified as those who lack access to their own home equipment or facilities, such as students, multi-housing residents and other renters. However, many laundry users actually have a washer and dryer available where they live, but prefer the convenience and efficiency offered by self-service laundries.

Other potential customers include businesses that require clean laundry such as healthcare facilities, salons/spas, lodging facilities, restaurants and other businesses that lack on-premise washers and dryers.

There are many reasons why users choose Electrolux Equipped Vended Laundry stores Giant capacity equipment makes it easy to wash and dry oversized household items such as bedspreads, comforters, rugs, sleeping bags, camping gear and more.

Users can quickly wash and dry large amounts of laundry all at once.

Electrolux Equipped Laundry stores offer the latest quality, innovative machines that offer convenience and time-saving benefits.

A warm and inviting store design with extra amenities make doing laundry a more pleasant experience.

Source: Coin Laundry Association survey.

What does it take to keep customers coming back?According to a recent survey of laundry customers conducted by the Coin Laundry Association, the Top 5 needs identified by users of vended laundries are:

Enough machines available

Store cleanliness

Safe and secure facility

Large capacity machines

Close to home


Competitive financing solutions can help get your business off the ground.

Financing is designed to meet your cash flow needsFor many aspiring owners, investing in a vended laundry business requires access to start-up funding for construction/build-out costs, equipment outlays and initial working capital. Overall start-up costs vary depending on the location, store size, equipment mix, lease and any necessary improvements. This may include such things as plumbing, electrical work, gas line installation, carpentry, etc. These costs can vary greatly depending on whether you are buying an existing store or building from the ground up. Generally, potential owners with a minimum $75,000 liquid cash and a favorable credit score are best suited for this opportunity.

Regardless of your endeavour, working with an experienced team of professionals is critical to your success. Your authorized Electrolux Professional distributor, BDS Laundry Systems, can help you develop relationships with key financial institutions and lenders that offer unique financing programs with attractive terms and competitive rates to give you the runway you require to achieve your dreams.

Laundrylux® Financial Services is the preferred lending partner of BDS Laundry Systems. More than 20,000 self-service, institutional and on-premises laundries and wetcleaners have financed or leased equipment with Laundrylux® Financial Services.

Financing is subject to credit approval and applicant’s individual and business profile. Additional restrictions may apply.

Why partner with Laundrylux® Financial Services? Low monthly payments

A fixed payment that insulates you from interest rate fluctuations

Buy equipment without tying up working capital

Protect your other valuable lines of credit

Maintain a competitive advantage

Potential tax advantages

Simplify accounting processes

We can also cooperate with your local business banker

Terms up to 10 years available; other special programs available


An experienced partner who keeps your needs and objectives in focus.

A partner you can trustAs the exclusive authorized Electrolux Professional Laundry distributor serving the region, St. Paul, Minn.-based BDS Laundry Systems has over 52 years of experience in the commercial laundry industry. Since 1961, BDS has helped entrepreneurs establish more than 843 successful vended laundry stores across the upper Midwest. As one of the longest-standing commercial laundry distributors in North America, BDS has received a multitude of prestigious awards over the years from leading manufacturers and industry organizations.

When you partner with BDS Laundry Systems, you maintain complete control over your business. You can own and operate as many stores as you like without paying expensive franchise fees or royalties, and BDS will be there to help you every step of the way.

A rich family historyIn 1961, Bert DeMarsh ventured out on his own to start a business that specialized in the rapidly expanding commercial laundry industry. This was a bold move, but Bert had a vision of helping like-minded entrepreneurs build and profit from self-service laundromats. When Bert’s son, David, joined the business in 1970, the company grew into a diverse supplier spanning many different markets. Once David took the reins in 1979, BDS was the “go to” place to buy commercial equipment. With the recent additions of Erica DeMarsh-Ginkel and Danielle DeMarsh, BDS Laundry Systems is now a three-generation family company — one of only a few commercial laundry distributors to reach this level of longevity.

Look to BDS for: Site location assistance

Existing property evaluation

Site pre-qualification

Demographic study

Competitive analysis

CAD layout

Technical specifications

Estimated revenue projections

Financing assistance

Lease negotiations

Construction assistance

Store decor ideas

Installation, set-up and training

Skilled service technicians

Periodic service schools

Promotional support

Extensive parts inventory


BDS Laundry Systems can help you identify potential locations for your business venture.

Learn about the local marketOnce a potential location is identified, a detailed demographic study can help you determine if a vended laundry is right for the area. This includes identifying the surrounding population’s ethnic makeup, income levels, rental percentage, household size and median age. All of these factors will influence your store’s revenue potential. It is also important to study traffic patterns, research the availability of utilities, assess store visibility and signage, and ensure there is ample parking available.

General site criteria Free standing building or a lot to build adjacent to a strong shopping area.

Strip centers anchored by a supermarket, drug store, convenience store, or family discount store. Other desirable tenants are check cashing, dollar stores, drycleaners, auto parts, and similar businesses.

Minimum footprint of 1,500 square feet. The size can vary depending on market.

Plenty of free parking, especially on weekends, is critical.

Maximum front glass exposure and prominent signage visible from the street.

Minimum 10-year lease with two 5-year options is preferred.

Why conduct a competitive analysis?Knowing the strengths and weaknesses of existing self-service laundries in the area is an invaluable tool when evaluating potential locations. BDS Laundry Systems can help conduct a competitive analysis as part of the initial planning process. This may include: Identifying key competitors within a set radius surrounding the site

Assessing the age and condition of competitors’ equipment

Evaluating competitors’ vend pricing structure on all washers and dryer

Providing additional information, such as amenities offered, local marketing efforts, parking and access issues, and other key factors.


Estimated revenue projections* can give you added confidence to get started.

Plan for successBased on the results of the demographic and competitive analysis, BDS Laundry Systems can provide a general, estimated revenue projection report* calculated uniquely for a potential location before you make any investment in the business. The report will provide you with a summary of estimated sales, utility costs and overhead. It is important to note that these projections are only estimates, and can vary based on a number of factors. Your potential profitability will be influenced by:

Visibility of exterior sign

Size and make-up of the target market

Ample parking

Customer retention rates

Utility costs and overhead

Employing friendly, helpful attendants

Store cleanliness and safety

Hours of operation

Reliability and performance of the equipment

Favorable lease terms

Equipment mix

Ancillary services

Strength and changes in competition

Effective, on-going promotions

Management ability

* The figures that will be provided will be estimates only, and there is no assurance you will do as well. You must accept the risk of not doing as well. The figures provided are not a representation, warranty or guaranty by BDS Laundry Systems that you will be profitable. You must rely upon your own ability and your own professional advisors to evaluate the suitability of the location, costs, and associated risks.


BDS Laundry Systems is the single-source provider for everything you need.

Consider a card systemResearch conducted by Experian reveals that a growing number of U.S. consumers favor the convenience and flexibility of paying products and services using a credit/debit card. Third-party card payment systems from BDS Laundry Systems allow acceptance of both coins and credit/debit cards on all Electrolux brand washers and dryers when retrofitted with card readers.

Maximize return on investmentThe correct mix of washers and dryers based on location and demographics ensures maximum profitability per square foot. The current trend is to install larger machines with greater capacity and higher vend prices, but different demographics and building layouts require different equipment solutions.

Generally speaking, larger capacity washers are significantly more efficient per pound of laundry washed. Therefore, profit margins are higher on multi-load equipment compared to traditional single-load washers. Areas with large families usually benefit by having a higher proportion of larger capacity washers.

Ample dryer capacity is also an important consideration. To maximize revenue on busy days — especially weekends — you need to move customers through the store as quickly as possible. With the right mix of smaller and larger capacity washers, the general rule is there should be one dryer pocket per washer. BDS Laundry Systems can help you optimize your equipment mix to meet the needs of customers in your particular area.

Additional equipmentIn addition to washers and dryers, it is essential that you provide other equipment in your store. BDS Laundry Systems is your single-source resource for everything you need to get up and running. Bill changers

Soap and plastic bag vending machines

Snack and beverage vending machines

Highly efficient water heating and San-O3-tyzer systems

Utility bulkheads

Folding tables and seating units

Laundry carts

Other market-specific equipment


Consider adding complementary products and services to your offerings.

Earn more by offering moreMany successful store owners recognize the power of offering additional services to add value to their business. Here are several ways other vended laundries have incorporated complementary products and services into their operation: Wash/Dry/Fold drop-off service

Tanning booths

Car wash

Pet wash

Mailbox rentals

Convenience/grocery store

Video games

ATMs

Lottery tickets/pulltabs

Children’s play area

Concessions

Coffee bar

Fitness center

Drycleaning

Internet access

Commercial accountsFor many locations, a significant opportunity exists in serving commercial accounts — such as restaurants, catering services, health clubs, salons, spas, grocery stores, healthcare facilities and more. Many store owners provide pickup and delivery services for larger commercial accounts.


Get access to professional marketing support from Laundrylux Creative Services (LCS).

Build your brandLaundrylux Creative Services (LCS) was formed to better serve Electrolux distributors and individual store owners. The LCS team of professionals have years of expertise, both in the laundry industry and creatively. They know what works and what doesn’t — and they’re ready to help you grow your business.

For owners of a full Electrolux EquippedLaundry, LCS provides invaluable industry experience and top-notch design skills — all at a fraction of the cost of what a traditional advertising agency would charge. LCS is positioned to help your business get off to a successful start. They can handle it all, from a small ad to a large multi-faceted, integrated marketing campaign.

LCS is the preferred choice for: Advertising

Articles and testimonials

Banners and signs

Branding

Brochures and other print

Corporate identity

Direct mail

Store signage


Learn more about this profitable opportunity.

When you’re ready to discuss the many advantages of owning and operating an Electrolux Professional Equipped Laundry, contact us for a no-obligation consultation.

BDS Laundry Systems 2430 Enterprise Drive St. Paul, MN 55120 Phone: 651-688-8000 Toll-Free: 800-688-0020 bdslaundry.com

IOWA

MINNESOTAWISCONSIN

NORTH DAKOTA

SOUTH DAKOTA

ILLINOIS

UPPER MICHIGAN

BDS Laundry Systems is the exclusive authorized Electrolux Professional Laundry distributor serving the counties highlighted in blue from corporate headquarters in St. Paul, Minnesota.

NEBRASKA


From equipment and store design to expert consultation, no one does it better than Electrolux and BDS Laundry Systems


IMPORTANT INFORMATIONYou should conduct your own independent research and consult with your own professional advisors before making a decision about starting an Electrolux vended laundry operation. In making such a decision, you must rely on your own independent examination of the business opportunity, including the risks involved.

There is no guaranty of success. Whether your vended laundry operation succeeds will be largely dependent on your ability as a business person. Like any business opportunity, a vended laundry operation is subject to significant risks, including the possible loss of the principal amount invested and additional amounts. Results of vended laundry operations can vary significantly from location to location and from operator to operator.

An investment in a vended laundry is not insured by any federal government agency. The business opportunity discussed in this document is not regulated, and has not been recommended by or registered with any federal or state securities commission or other regulatory authority. No federal or state securities commission or other regulatory authority has confirmed the accuracy or determined the adequacy of the information in this document. BDS Laundry Systems is not a registered or licensed investment advisor or broker/dealer.

NOTHING CONTAINED IN THIS DOCUMENT AND NO STATEMENT MADE BY ANY REPRESENTATIVE OF BDS LAUNDRY SYSTEMS SHALL BE DEEMED TO BE A REPRESENTATION, WARRANTY OR GUARANTY OF ANY KIND, EXPRESSED OR IMPLIED, BY BDS LAUNDRY SYSTEMS. BDS LAUNDRY SYSTEMS EXPRESSLY DISCLAIMS THE MAKING OF, AND YOU ACKNOWLEDGE THAT YOU HAVE NOT RECEIVED, ANY REPRESENTATION, WARRANTY OR GUARANTY, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY REPRESENTATION, WARRANTY OR GUARANTY AS TO THE POTENTIAL VOLUME, PROFITS, OR SUCCESS OF THE BUSINESS OPPORTUNITY DISCUSSED IN THIS DOCUMENT.

BDS Laundry Systems • 2430 Enterprise Drive • St. Paul, Minnesota 55120 • Phone: 651.688.8000 • Toll-Free: 800.688.0020 • bdslaundry.com© Copyright 2014. All rights reserved. Printed in the U.S.A. 4/14 FCI

Exclusively by Electrolux —Industry’s #1 Premium Parts Warranty*

Lifetime Guarantee on washer frames.

10-Year Warranty on the entire mechanical structure of washer, including frame, tub, cylinder, shaft, seals, bearings, bearing housing, and inner and outer tubs.

5-Year Warranty on all other parts.

*Warranty honored only on equipment installed by BDS Laundry Systems. Warranty extended to original purchaser only. Ask for details.

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