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The CoinLaundry Insider
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1
The term coin laundry is defined as commercial-
grade, self-service laundry equipment placed
into service in a retail space. Coin laundries
generally occupy the retail space on long-term
leases (10-25 years) and generate steady cash
flow over the life of the lease. Coin laundries
are unique small businesses in that they have
no inventory or receivables.
The coin laundry industry is approximately
70 years old and is primarily composed of
individual owner/operators. No significant
franchises are in operation at this time. Currently,
there are about 35,000 coin laundries in the
United States, generating nearly $5 billion in
gross revenue annually. Clean clothes, like food
and shelter, are considered a necessity of life
and coin laundries provide a basic health service
for millions of Americans. While laundries are
found in virtually all neighborhoods across the
country, stores seem to perform exceptionally
well in predominately renter-occupied, densely
populated areas. These areas are increasing in
number with each year throughout the country.
The intense population growth, coupled with
the expansion of rental housing, has increased
the customer base for coin laundries.
Today’s coin laundry industry is a strong and
vibrant one. Even more appealing is the fact
that this dependable public service industry
continues to grow and thrive. The demographic
trends toward an even greater apartment
dwelling segment of the population predict
continued prosperity.
Before investing in the industry, successful
laundry owners take the time to adequately
research each phase of ownership. This guide
provides great insight on the first steps of
evaluation. For a more comprehensive view,
we invite you to join the industry’s only not-for-
profit trade association, the Coin Laundry
Association. As a member, you will have full
access to archived articles, best practices and
other members who can share what’s worked for
them – and what hasn’t. Once you’ve reviewed
the full list of benefits on page 20, you can join
online at www.coinlaundry.org or by calling
800-570-5629.
Brian Wallace
The CoinLaundryIndustry
coinlaundry.org • (800) 570-56292
Renters vs. Owners
Clearly, you need to look for a decent
percentage of apartment dwellers and home
renters in your market area. Often, these
folks may not have access to washers and
dryers in their households, and may not have
adequate laundry facilities in their buildings.
Renters will always be prime self-service
laundry customers.
Population Density(Number of Households)
The denser the local population, the better
the market for a coin laundry. Dense, urban
areas tend to feature a lot of the character-
istics consistent with coin laundry success
and profitability.
Persons Per Household(Number of Children Per Family)
This is a no-brainer. More families mean
more laundry. By the same token, families
with two or more children create lots and lots
of dirty clothes, thus making them first-class
coin laundry customers. In addition, this
particular stat can help you determine the
types of machines you have.
Average Income
As a rule, coin laundry customers tend to have
household incomes in the low-to-moderate
range, which is consistent with the fact that
they are also typically renters who don’t own
washers and dryers.
However, don’t completely ignore the
rest of your market. Several laundries in
middle-to upper-middle-class areas can do
a large amount of wash-dry-fold business.
Population Age
Typically, the younger the population, the
more coin laundry customers you’re likely
to attract.
Ethnic Mix
The design of your store, the décor, the
equipment mix and the language used in your
coin laundry (as well as your promotional
literature) will be greatly influenced by the
ethnic background of the local population.
Knowing the ethnicity of the majority of
your customers also can influence seemingly
minor things, such as the kind of soap you
carry or the brand of soda and snacks in your
vending machines. These are little things
than can go a long way toward customer
satisfaction and loyalty.
Employment Profile
What is the ratio of blue-collar workers to
white-collar workers in the market area?
After all, blue-collar workers tend to be good
coin laundry customers. On the other hand,
knowing that your marketplace has a strong
percentage of white-collar workers can help
you plan to possibly offer additional amenities,
such as wash-dry-fold and drycleaning –
services that may not typically appeal to
blue-collar workers, but would no doubt be
of value to many white-collar types.
When studying the demographics for your marketplace, you need to look for some basic characteristicsamong the population there that are common to solid coin laundry customer prospects. Here’s a basiclist of characteristics to look for in your area to determine whether or not it is a good market for a self-service laundry:
Market Demographics: Winning the Numbers Game
DemographicReportsBefore you buy or build, a
demographic report is a must.
Laundry Research Members
receive 5 FREE demographic
reports.
................................................Join at coinlaundry.org/membership
Demographics
coinlaundry.org • (800) 570-56294
Traffic Patterns/Frequency
When evaluating your laundry site, the volume of traffic
that goes past your store (or prospective store) is paramount.
The more traffic the better. Also, consider the posted speed
limits; difficulty of ingress and egress; visibility of the store
from the road and time-of-day traffic patterns.
Gender(Heads of Households)
Although the long-standing pattern has shifted somewhat
dramatically in recent years, there are still more women
patronizing coin laundries than men. Furthermore, families
with female heads of households have proven to be excellent
coin laundry customers.
Clearly, the stronger locations for coin laundries will have
populations that boast many of the characteristics just
mentioned, especially in combination. For example, you may find
a market area with a large percentage of apartment dwellers
with children, whose income is in the low-to-moderate range.
But be careful, as with most things, there are exceptions
to the rule. And there are certainly exceptions to the types
of “good coin laundry neighborhoods” just described. For
example, areas that feature colleges and universities are
typically great coin laundry markets. The same can be said
for “resort” areas, mobile and trailer home parks, and
campground areas.
Any coin laundry veteran will tell you that the final decision
is based on “a feel” for the area and the particular customers
in that neighborhood. But they will also explain the
importance of reviewing all of the information available
to you.
Once you’ve been in the business long enough, you will
get that “feeling,” too. However, never stray too far from
the basics: study demographic data, talk with other coin
laundry owners in your area – and communicate with your
customers as much as possible.
Those customers are the lifeblood of your laundry business.
Demographics
STATS THAT DRIVEYOUR BUSINESSCLA’S INDUSTRY SURVEY
�Average Rent per Square Foot
�Vend Prices
�Drop-off per Pound Charge
�Gross Revenue Spent on Utilities
Answers to these topics are included in the 2012 Industry Survey.The survey is FREE for CLA members.
Not a member? Order a survey for $99 at coinlaundry.org today.
Get Unbiased ResearchWhat is the average monthly rent? Per
square foot? As a percentage of gross
revenue? Laundry Research
Members can find the answers to
these questions and more in the annual
Industry Survey.
..............................................................Join at coinlaundry.org/membership
ExpressWash Washer-Extractors – 20- to 90-pound capacities ExpressDry Drying Tumblers – 30-, 55- & 75-pound single pocket capacities; 30- & 45-pound dual pocket capacities
Not Your Typical Laundry…
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The Express Laundry Center™ package is a complete store solution for new self-service laundries or full-store rehabs. Available only through
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unique store services, marketing support, store training and a factory warranty to deliver a turnkey solution like no other!
By choosing a Continental Girbau
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Not Your Typical Laundry…
Not Your Typical Laundry…
Not Your Typical Laundry…
By choosing a Continental Girbau
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By choosing a Continental Girbau
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Continental Girbau, the Expr
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package is a complete stor™ess Laundry Center
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e solution for new self-service laundries or full-stor package is a complete stor
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ash and ExpressWess Laundry Center package brings together Continental High-Speed Expr
vailable only threhabs. Ae re solution for new self-service laundries or full-stor
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10-4-3YEARPARPARTS & LABOR WARRANTY*WARRANTY*
ExpressW
asher-Extractors – 20- to 90-pound capacitiesash W Washer-Extractors – 20- to 90-pound capacitiesExpressW
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arraails on our w warranttails on our wor de. fal Girbau, Incttal Girbau, Inctinenact Conttact Con* Please con
tyy.arran
coinlaundry.org • (800) 570-56296
Types of Leases
There are a few different types of leases. Gross leases include
all of your costs, such as taxes and common area mainte-
nance. However, the majority of today’s coin laundry leases
are net leases or triple net leases.
That latter simply means that you’re going to pay a base
rent, plus common area maintenance, insurance, real estate
taxes and all of the other associated costs. In many cases,
this can include things such as resurfacing the parking lot.
So be clear where you stand on this issue.
Rent Escalations and Other Costs
The next thing you want to do is develop a clear under
standing of how your rent is going to escalate. There are
several ways this can occur. One way is through a simple
fixed amount formula. For example, this year you would
pay $1,000. Next year, you would pay $1,500. And the year
after that you would pay $2,000. And so it would go, down
the line. In this scenario, the rent is written out, and you
know what the amount will be year after year.
Another way landlords can escalate your rent is on a
percentage basis. They’ll write down an amount to start with
and jump it annually based on an agreed-upon percentage.
However, be wary of the dangers of compounding with
this type of rent escalation.
Other Key Clauses
Exclusivity and ancillary services. One of the things you need
to negotiate is an “exclusive” in that center to do your type
of business, as well as the ability to offer the ancillary services
you’d like to provide. You’ll want to have those OK’ed ahead
of time in writing so that the landlord can’t come back to
you and say, “I just gave you permission to run a laundromat,
not drop-off drycleaning and vending.” That must be clearly
defined in your lease.
Losing a major tenant. Another thing to protect yourself
from in a shopping center is if, for any reason, the major
draw of that center leaves. In such cases, you should have
the right to get out of the lease or at least be entitled to
some sort of a rent abatement or credit.
Visibility. Perhaps you have a nice location in your center.
Then, a few years down the road, the landlord erects a
building right in front of your coin laundry – and now no
one can see you from the street. You should be able to
protect yourself from that, either with rent abatement or
the ability to get out of the lease completely.
First right of refusal. If your laundry becomes successful,
you may want to expand. Therefore, you should try to get
the first right of refusal on the space on either side of you.
This way, if that space ever does become vacant, at least the
landlord has to come to you first and offer you the space.
Roof maintenance. Historically, the business owner has
been responsible for the interior of the building, and the
landlord has been responsible for the exterior of the building,
including the roof. However, in the case of coin laundries,
where there is a lot of roof penetration from dryer and
plumbing vents, there can be an issue as to who is responsible
for the roof. This needs to be clarified in your lease.
When it comes right down to what your actual lease is
going to look like, you may or may not get these concessions
from your landlord. But at least you know ahead of time
what you’re getting yourself into.
The main thing to focus on when negotiating your lease is the time factor. You’ve got to give yourselfenough time on the lease to make it worth your while. If you’re going in with a new store, it’s highly recom-mend that you get 15 to 20 years as an absolute bare minimum – with 25 years being the ideal situation.Of course, this duration can take different forms. For instance, it can be an initial lease term of five years,
with five-year options thereafter, totaling 25 years. That’s all negotiable with the landlord.The next most important thing is the assignability of your lease. If you’ve got a lease and you can’t assign
it to somebody else when you sell, then it’s going to affect the value of the store.
Leasing Your Laundry: Tips, Traps and Strategies
Lease
Every little hinge, hose and housing is engineered with long-lasting energy savings in mind.
The closer you look at Maytag® equipment, the more resourceful thinking you’ll see. Take the innovative TurboWash™ System, for instance, which allows our MFR30 washer to deliver impressive cleaning power—along with the potential to cut your water use by over 60%.* Add to that extra-large capacity that helps you turn more profits per load, plus our 5-year warranty** on every single part. Visit mclaundry.com for digital brochures, or for more information, visit our website at maytagcommerciallaundry.com or call 800-662-3587.
*Average savings by using super cycle, compared to previous Maytag MFR washers; actual savings varies by model. **Visit maytagcommerciallaundry.com for warranty details.® /™ ©2013 Maytag. All rights reserved.
**
FINANCING as low as 0%†† Limited time offer. Low fixed financing rates. Terms to 96 months. Subject to credit approval and individual’s credit worthiness. Contact your distributor for details.
coinlaundry.org • (800) 570-56298
Proceeding before checking the zoning restrictionsThere have been many would-be laundromat
owners who have found what they thought
were great locations and just plowed ahead,
renting the buildings or buying the parcels of
land without first checking the zoning. Before
you pick up that pen to sign the lease – and
certainly before you dig that first shovel of
dirt – understand the zoning regulations.
Failing to secure the required permitsFor you business to operate, a Certificate of
Occupancy may be required by your city or
town. So be sure to check. The permits that
you and your contractor initially file with your
local authorities are the documents which,
when final inspections are completed, will
facilitate your store’s being granted the
Certificate of Occupancy. Make sure you
receive and maintain copies of these permits.
Failing to create a realistic budgetWe’ve all heard it before: The single biggest
reason that any new business fails in any
industry is due to a lack of capital. You must
not only have the capital to go into the coin
laundry business correctly and not over-
leverage yourself, but you also need some
startup capital. After all, you’re not going to
be at positive cash flow on Day One.
Also, it’s crucial to have a contingency
budget, especially if you are building your
first store. For first-timers, experts suggest
planning for a budget overrun as high as 20
percent or more.
Overlooking demolition expenses. If you’re building your new store in an existing
space, demolition is a key issue to consider.
Just the cost of dumpsters and trash removal
can get expensive rather quickly.
And if it’s an older space, you also may
encounter hazardous waste, such as asbestos
tile or even fluorescent lighting. You have to
be careful to lawfully dispose of such items.
Neglecting to create a written work scheduleOnce construction starts, timing becomes
imperative. Obviously, different contractors
representing several different trades are
expected to complete their phases of the
project at certain times, and if one runs behind
schedule, it can throw off everyone else.
Of course, you will almost assuredly have
some delays. As with your budget, be sure to
build a little “padding” into your construction
schedule. If not, you may run into other costly
issues, such as coming up with overtime pay
for your contractors to get your project back
on schedule to hit your required deadlines.
Underestimating the importance of the distributorChoosing a distributor is possibly the most
important decision you can make – after
picking your location. The distributor’s
expertise and advice will save you a great
deal of time and effort. Most likely, no one
knows the local marketplace, as well as the
contacts you will need, better than a good,
local distributor.
When building your dream laundry business, there are a n mber of ways in which you can sabotageyour aspirations. To keep you from doing so, here are some common miscues of which to steer clear.
Pitfalls to Avoid When Building Your Laundry
Outside PerspectiveWant to talk over an idea with
someone in the business – or get
input on how to fix one that has
gone wrong? Laundry
Research Members are
invited to contact the association’s
on-staff professionals. One-to-one
phone consultation is just one of
the many benefits of membership.
....................................................Learn more atcoinlaundry.org/membership
Avoid Mistakes
coinlaundry.org • (800) 570-5629
The bottom line is that the distributor wants you to be
successful so that you return to buy more equipment for
your present and perhaps future stores.
Underestimating the importance of the architect Laws vary from place to place, but in some areas, only a
licensed architect can design and affix his seal to the plans
for your self-service laundry. Your distributor can probably
recommend an architect who has previously designed coin
laundries and would understand the particular requirements
of laying out your specific store.
Some distributors also have the ability to create suitable plans.
Underestimating the importance of hiring proper contractorsAgain, your distributor can recommend contractors who
specialize in this area and who most likely could take you
to a number of stores they have already completed. Be sure
to talk to these former clients and ask them how the
construction process went for them. You should get a
decent idea as to their proficiency.
In addition, perhaps ask the contractor to bring in the
crew that generally works with him – plumber, electrician,
carpenter and so on – or you might negotiate to do some
of the work yourself or subcontract part of the work to
people you know.
Always negotiate contracts that itemize every detail of
the work to be done – how it will proceed, when it will be
completed, and for how much money. Any deviation from
the contract should be by mutual consent; if not, you – the
employer – have a strong case that should hold up in court,
if necessary. Insist on contracts before the work begins.
Unless you’ve built a laundry before, it’s not advisable to
try to serve as your own general contractor. However, if you
choose to go this route, at least hire someone who specializes
in this area of construction to act as your consultant. Perhaps
he can also do part of the work or at least outline the steps
you need to take.
Failing to secure builders’ risk insuranceEvery contractor you hire should be insured. But be sure
that you have builders’ risk insurance to safeguard you
during this period as well. Once your store is open, you
can convert it over to your regular insurance policy.
Opening a coin laundry with inadequate supplies ofwater, gas or electricityYour store’s utilities are the lifeblood of your business in
many ways. After all, water, gas and electricity are, in essence,
what you are truly providing your laundry customers.
Therefore, whether you are building a store from the ground
up or converting an existing building into a self-service
laundry, you’ll need to know whether you can get enough
of each of these utilities to meet your business’ needs.
Typically, a letter to the utility companies that supply
these essentials will be answered within four to six weeks
and will provide you with information on availability,
procedure and estimated costs.
With gas, the key is having the right pressure – and not
having to spend a fortune going all the way to the street
to pick up that utility.
Skimping on the water heater and water meterNo doubt, the trend in the industry is toward larger washers.
Thus, it logically follows that larger water heaters and water
Avoid Mistakes
10
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When Phillip Viccinelli chose to invest in Speed Queen laundry, it was to bank on the proven performance of an industry leader.
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*According to the Coin Laundry Association.
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Renowned for f inancing over
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coinlaundry.org • (800) 570-562912
Avoid Mistakes
meters are also in order. However, some laundry operators
don’t see it that way.
Undersized water heaters have a tendency to break down
sooner than they should. What’s more, customers expecting
hot water may quickly become former customers.
The situation is the same with water meters. Some laundry
owners who don’t want to pay the price for an appropriately
sized water meter will try to get by with a smaller one and
not have enough pressure to run their machines.
Installing too much equipment for the available interior spaceDon’t give your customers a closed-in feeling. Aisles should
not be so narrow that two customers using machines on
opposing walls bump into each other as they load or unload
their respective machines.
It’s not a contest to see who can fill every square inch of
their store with equipment. You have to have a workflow.
Instead of taking a car through an assembly line, you’re
taking a customer through an assembly line. That means
getting a parking spot, getting a debit card or coins, getting
a washer, getting a dryer, getting folding space and leaving
in an efficient, comfortable manner.
Your goal is to create a flow that feels natural. After all,
your customers are coming to your laundry to work, not
shop. Your business is unlike any other retail enterprise.
Creating bulkheads that are too narrowAlthough you design the store mainly with the customer
in mind, don’t forget about the person who must maintain
your washers.
When designing a store, it’s always in the back of your
mind that you’re making dollars per square foot, so you want
to put as much money-making equipment into the available
square footage as possible without compromising the
workflow. However, in doing so, some laundry owners end
up compromising the size of their bulkheads.
On paper, a three-foot bulkhead looks like it would be
easy to get into to repair a machine. But the plumbing comes
up through there, and pretty soon three feet doesn’t seem
like all that much.
Leaving insufficient space behind the dryers The same line of thinking that leads to narrow bulkheads
often causes insufficient space behind the dryers as well.
Therefore, always be sure that your layout calls for an area of
16 to 36 inches from the rear of the dryers to the wall behind
them. Creating easy access for you and your repairman is
good planning.
Providing insufficient makeup air for your dryers. You
must provide sufficient makeup air for your dryers. Consult
your dryer manufacturer’s installation or operating manual
for proper specifications. Providing too little makeup air will
reduce the efficiency of the dryer and cause other problems.
Overlooking the importance of adequate floor drainageFloor drains are something that a lot of people skimp on,
and it’s something you need to have. You’re in a place that
invariably is going to have water on the floor – sometimes
an inch or two – and you’ve got to have somewhere for it
to go. In addition, your floor drains should be on a separate
line than those that hook into all of the washers.
Clearly, there are many more mistakes, mishaps and miscues
when it comes to opening a self-service laundry. These are
just a few of the most common – and most damaging.
coinlaundry.org • (800) 570-562914 coinlaundry.org • (800) 570-5629
Generally, if the demographics point to larger families or a
large percentage of ethnic groups, it is wise to lean toward
the larger machines as the bulk of the laundromat.
By contrast, if there are a lot of retired people and seniors
in the area, you should generally purchase more smaller
washers. Or if your self-service laundry is located close to
a college campus or to where there are a lot of singles,
again perhaps lean toward smaller frontload machines.
As for dryers, many store owners and distributors alike
suggest figuring out what is needed based on the washer
poundage. Basically, determine the total poundage of your
washers and then back that into the dryers. If you’re using
30-pound dryers, only figure about 25 to 27 pounds per
dryer, because customers always tend to overload the washers
and under load the dryers.
Several experts prefer slightly higher than a one-to-one
ratio on dryers to washers.
As a rule of thumb when determining the mix, include
at least three sizes of machines, which give customers three
options and three price points.
But before purchasing a store full of washers and dryers
based strictly on what the demographic numbers tell you,
take a look around your market- place. Spend some time
at your competitors’ locations, particularly on Saturdays.
See what machines are getting the heaviest usage – and
which are being ignored by the customers. After spending
a couple of Saturday afternoons this way, you can pretty
accurately determine what equipment people in your
market typically like to use.
Avoid These MistakesSeveral factors go into determining your store’s equipment
mix. Therefore, there are several mistakes that can be made
during this exercise. One of the biggest is letting the
pocketbook rule, rather than taking a long-term view of
the business.
If you have the wrong equipment or the wrong equipment
mix in a store, you’re never going to reach your potential
fast enough. A lot of people see dollar signs at the beginning
and don’t buy the 50-pounders and the 80-pounders,
thinking they can get by with 18-, 25- and 35-pounders.
But if the area really requires the larger machines, these
operators aren’t going to get all of the business they could
be getting.
When figuring out your store’s equipment mix, there are two main sources – demographics and thecompeting laundries in your marketplace.
The Right ResourcesGetting the right mix also means getting the right information. Laundry Research Members have access to archived
articles from the laundry industry’s leading publication, PlanetLaundry. Cover stories, store profiles, business management
and legal topics are just a few of the topics available online – day and night.
....................................................................................................................................................................................................Learn more at coinlaundry.org/membership
Striking a Balance: Formulating an Equipment Mix
Equipment Mix
planetlaundry.com 15
You can only get so many turns per day. So, whether you’re going to
get three or four or five turns on a smaller washer at about $2 per wash,
wouldn’t you rather get that same number of turns on a larger capacity
machine that will take up almost the same amount of floor space yet
bring $5 or more a turn? If your store is underequipped for your
specific market, you are surely leaving money on the table.
The same thinking explains the success of todays stack dryers. They
enable the operator to earn two dryer incomes from the same space
that used to handle only one unit.
Obviously, the key is to get your customers in and out of your store
in a timely fashion. And to do that, you must have enough equipment
to do the job for them – when they want to wash.
Another mistake related to equipment mix can be made when
determining how those large and small washers are to be dispersed
throughout the store.
For example, many experts suggest spreading the machines equally
throughout the store so that not all of the largest washers are in one
area. They could be divided at least into two areas – each with a full
complement of machines. Too many operators put all of the largest in
one row, all of the mid-size in another and all of the smaller frontloaders
in another. That way, people who want to use a large and a smaller
machine have to run back and forth.
Several laundry owners locate the biggest washers upfront. For some
stores, organizing the mix with the bigger washers in front makes sense
for two reasons: (1) it’s a better impulse-purchase location, and (2) it
rewards the customers who spend the most money in the store.
Another mistake is loading a store with larger washers, but continuing
to put in only one size of dryers.
Despite the bigger-is-better mantra being spouted by many industry
experts, self-service laundry owners need to exercise good judgment.
There is a balancing act to laying out a store. It is possible to get carried
away with too many machines and end up putting more money into
the laundry than it demands – or can do. That could be the difference
between failure and success.
CLA’s Laundry Advertising Solution
www.planetlaundry.com
The Coin LaundryAssociation has manygreat resources to helpyou achieve success.
If you have the wrong equipment orthe wrong equipment mix in a store,you’re never going to reach yourpotential fast enough.
Laundry Web Networkwww.findalaundry.org
DIY Directwww.coinlaundry.org/membership/direct-marketing-for-your-laundry/
Planet Laundrywww.planetlaundry.com
Coin Laundry Association Insurance(800) 346-8424www.coinlaundryinsurance.com
Coin Laundry Association(630)-953-7920www.coinlaundry.org
16
What is the distributor’s reputation, personally and
professionally?
What is their record of success? Do they have any
customers who have built more than one store with them?
Or any who have purchased from them more than once?
If you have a distributor who sells once and then never
again, there could be a reason for that.
What is the distributor’s financial reputation?
How long have they represented their main product line?
Do they offer site selection and evaluation?
Do they back sales with parts and service?
Do they offer reasonable, open financing?
How long has the company been in business?
Do they provide a list of references?
Does the distributor have a sufficient stock of equipment?
Do they have a reputation of developing friendships
with customers, not just business relationships?
Are their prices competitive?
Do they invite you to visit their facilities and meet the
personnel? In addition to these specific areas, the distributor
you choose should be able to offer you:
• Experienced installation crews.
• Superior knowledge of the industry and the products they represent.
• Demographic knowledge and interpretation.
• Provide some cash flow analysis.
• Provide store layout and design services.
• Excellent service that is prompt and professional.
• Give service schools in-house to train you on the product.Manufacturers’ reps work alongside distributor sales people and service technicians to teach store owners trouble-shooting and maintenance techniques.
• A well-stocked parts department with quick shipping. This is one area that sets certain distributors apart from their competition.
There are some questions to be sure to ask when looking for an equipment distributor, which can beanswered through research and company references. They are:
Finding One That’s Right for You
Distributors
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Strong PartnershipsSomeone who fully understands your business is a direct asset. An insurance agent
who knows how to best protect your facility, employees and your personal liability
is one of those assets. For more than 25 years, CLA Insurance has had focused on
laundries, providing CLA members with thorough coverage at competitive rates. In
2011 CLA Insurance introduced lines of insurance to cover all your insurance needs
including business, employer and individual coverage.
..............................................................................................................................Learn more at www.coinlaundryinsurance.com coinlaundry.org
(800) 570-5629
planetlaundry.com 17
Online ToolsFor ideas on how to design a business plan for the laundry industry, Laundry Research Members have access to
an online sample – along with a sample pro forma. The Educational Library section of the site also contains sample print
ads, a sample employee manual and Spanish translations of common laundry terms.
............................................................................................................................................................................................Learn more at coinlaundry.org/membership
Examine your specific needs and be professional enough
to recommend the right products to achieve your goals.
Recommend the right manufacturer for your needs.
Check in on new construction regularly, making sure that
all stages of the buildout are going as planned.
Check installation parameters. For example, does the
equipment fit through the door? Do you have the right
flooring to support the equipment? Do you have the right
utilities? Does the equipment fit into the space properly?
Check delivery times from the manufacturer.
Answer all of your questions about the product you are
purchasing – why they recommend them and how they
compare with the competition.
Once you have placed an order with a distributor that
you have chosen, now is when they should really start to
go to work for you. A list of their responsibilities includes:
• Ordering the proper equipment from the manufacturerwith the right voltage and specifications.
• Coordinating your sale with a finance company, if you require financing.
• Tracking the order with the manufacturer.
• Accepting the product either at their warehouse or at your job site; meeting the truck and taking the product off the truck and rigging it into the store and setting it in place.
• If contracted, they will bring the proper utilities to themachine, bolt it down if necessary and perform a startup test.
• Training you on the use of the product and any preventivemaintenance procedures that you might have to perform.In addition, they should provide you with a maintenanceschedule. What’s more, every good distributor is goingto train you in not just the product but help you hire and train your attendants, as well as run service schools.
• Providing service when needed, including warranty service as negotiated when you purchased the product. Thedifference between a good store and a great store is in thedetails. And a good distributor can provide those detailsto take a store from four turns per day to five turns per day.
When it comes to building a new store or replacingolder equipment, the distributor’s role is mainly that ofbusiness advisor, to recommend what kind of equipmentyou need and why.
Great Expectations.Let’s examine what a distributor needs to do for you before a purchase is even made:
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When it comes to building a new store orreplacing older equipment, the distributor’srole is mainly that of business advisor, torecommend what kind of equipment you needand why.
What business are you getting into? Yes, you wantto open a self-service laundry. But you need to educateyour potential investor about today’s stores, as well asthe industry in general. Most banks and other financiallenders likely aren’t as familiar with the coin laundrybusiness as you have become. Photographs of modernself-service laundries and some general industry figuresshould bring everyone up to speed.
Who and where are your prospective customers?Basically, this is the demographic analysis of your market-place. In this part of the plan, it’s important to be extremelyspecific about where you gleaned this information. Anotherkey to this section of the plan is to not overreach how largeof a market area you think you’re going to be able to serve.
Why is your marketplace underserved?Who areyour competitors? Who’s already out there doing thesame kind of business you’re doing? Go into your potentialcompetitors’ stores, check visibility from the street, checkparking, check the age and condition of equipment,check pricing. And take notes.
This exercise, along with your demographic analysis,should give you the tools to take your qualitative informationand transform it into quantitative numbers.
Why will you be successful in filling the void in yourmarketplace? In writing your business plan, you shouldtry to figure out – and convey – why your self-service laundrybusiness will be unique. What makes you different? Whyare people going to come to you – other than the factthat you just happen to be the new kid in town?
How are you going to tell your customers about yourlaundry business?What’s your marketing strategy? Howmuch do you plan to spend on advertising? What types ofpromotions do you have in mind? Your lender will certainlyhave a number of questions regarding how you plan toget the news out about your business to the people youhave targeted as customers. Be prepared for these inquiries.
How are you going to operate your business? Thissection deals with your specific coin laundry facility. Do
you own the property or will you be a tenant? How bigis your store going to be? What equipment do you needto put into this store?
What are you going to do about personnel? If yourstore is going to be fully or semi-attended, what’s yourplan? How much are you going to pay them? How manyhours are they going to work?
What revenues, expenses and net profits are youexpecting during your first few years of operation?This is the financial pro forma, and it’s obviously a crucialsection of your plan.
Revenues can be tough to determine. However, youshould already know what kind of equipment your storewill feature from answering Question No. 6. And from yourcompetitive market analysis (Question No. 3), you alsohave a handle on what your vend pricing needs to be.
Hopefully, because of the demographic analysis (QuestionNo. 2), you have figured out approximately what share of themarket you’re going to be able to capture. From this, youought to be able to project approximately how many poundsof clothing your store will be washing and drying per week.
Therefore, from all of this information, you should bein the ballpark in regard to your revenue.
Operating expenses are a bit easier to figure out, andyour distributor can help you by determining yourapproximate utility costs.
How much capital will you require? How much moneyare you putting up? How much do you expect to borrow?Also, what are you going to do with that capital? How muchmoney is going toward equipment? How much is goingtoward outfitting the interior of the building?
Who are you?What’s your background? What’s yourbusiness experience? What can you say about yourselfthat would indicate you will be successful?
No matter how good the rest of your business plan looks,banks will dwell heavily on your personal and businesscredit history. They want to see whether or not you’ve paidyour bills on time and what kind of personal net worthyou have.
coinlaundry.org • (800) 570-562918
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The properly written business plan answers 10 crucial questions:
A Blueprint for Success
Business Plan
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coinlaundry.org • (800) 570-562920
Coin Laundry Association:(630)-953-7920www.coinlaundry.org
Coin Laundry AssociationInsurance:(800) 346-8424www.coinlaundryinsurance.com
Planet Laundry:www.planetlaundry.com
Laundry Web Network:www.findalaundry.org
Coin Laundry Association Contact Information
Social NetworkingFollow us, download us... take us with you! You will never have to be without your CLA updates, business management news,
marketing trends, expert advice... and industry connections. Here’s how and where to find us:
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Did you know that the best time to be become a member of the Coin
Laundry Association (CLA) is when you are researching the industry?
That’s because CLA will save you countless hours of gathering
data, statistics, and relevant information about getting started in
the coin laundry industry.
Membership with CLA opens the door to resources of information
by providing you with insight into all aspects of the business. The
new Laundry Researcher Membership was created to provide
potential investors like YOU the tools they need to adequately research
each phase of store ownership.
Highlights of the Laundry ResearcherMembership include:
� Demographic Reports: 5 FREE� Consultations: One-on-one with the CEO and the
VP, and a Grand Opening Consultation� Laundry Library of books: Today’s Coin Laundry Road to Financial Independence How to Find, Evaluate and Buy a Laundromat Secrets to Buying & Owning a Laundromat The Gold Book – A CLA exclusive Exclusive CLA Insurance access Plus much more!!
Your Success in the Laundry Industry Begins Here!
Join the Coin Laundry Association as
Laundry Researcher today, visit www.coinlaundry.org/ member-ship/join-now/laundry-researcher/ or call the Member Services Team
at (800) 570-5629 toget started now.
Membershipin Coin Laundry Association
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