Washing Machine Fundamentals

WASHING MACHINE FUNDAMENTALS: The water saving potential of a “front-loading” washing machine is best demonstrated by the following example: Consider a cup full of water and you have an example of a “top-loader” (vertical axis washing-machine). Consider a cup that is one-half full, visualize it on its side with a lid on it and you have an example of a “front-loader” (horizontal axis washing-machine). “Front-loaders” offer two advantages over “top-loaders”: as per the preceding cup analogy, they use less water (especially hot-water) and they offer washing action that is superior to the "agitation" of “top-loaders”. In a properly loaded “front-loader” laundry is carried to the top of the tub, from which it falls and thuds to the bottom of the tub. The greater the tub diameter, the further the fall, the harder the thud, the better the washing action. The traditional advantage of “top-loaders” over "front loaders" is that "top loaders" spin more water from the clothes. This, as it requires considerably less effort to spin a load on the vertical axis than on the horizontal. The average “top-loader” will get up to 600 RPM on spin-out. As “top-loaders” generally develop ten to twenty percent more spin-out speed than “frontloaders”*, they develop more centrifugal force, thus forcing more water from the clothes. *A new technology permitting electronic manipulation of drive motor speeds has recently placed this differentiation in flux. I greet this issue in my "Vital Info Pack", Because all of the tub weight (including the water and the laundry) is supported solely by bearings at the rear of the tub, “front-loaders” are three or four times more expensive to manufacture (and therefore to purchase) than “top-loaders”. DRYING FUNDAMENTALS: Due to the cost of fuel, drying is the less profitable side of a coin-laundry operation. Depending on variables such as the types of washing machines, as discussed above, and the presence of extractors, as discussed below, revenue from dryers will normally total about 30% to 40% of coin revenue. Laundry-mat dryers are configured to utilize one of three different heat sources: steam, electric, or gas (natural gas or propane). Gas is by far the most common configuration. As to gas dryers, there are two basically different configurations. The distinction is based upon the flow of hot air to the laundry (vertical vs. horizontal). In a vertical airflow dryer, the stove (where the flame burns) is located above the tumbler. Hot air is then forced down over the laundry (absorbing moisture from the laundry) and is expelled.

In a horizontal or “axial” airflow configuration (frequently associated with “stack” or one on top of the other dryers) the stove is located below the tumbler and the hot air is forced across the axis of the tumbler (usually back to front). Compared to an equivalent capacity vertical unit, “axial” airflow dryers are more energy efficient*. However, as the rate of airflow to the clothes is usually reduced by some 20% (when compared to an equivalent capacity vertical unit), the “axial” units take longer to dry *This because two sources of inefficiency associated with vertical configuration dryers are mitigated in the “axial” configuration: Firstly, although vertical units are designed to labor against heated airs' natural tendency to rise, the above the tumbler placement of the stove does permit some heat to escape through the top of the unit. Secondly, due to cross-flow against the tumbler (rather than with it – as in “axial” units), some heated air blows-by the tumbler, rather than passing through it (and the laundry). Stay away from dryers that re-circulate warm air. They save fuel, but dry slowly and will be a source of dissatisfaction to your coin-laundry customers. EXTRACTORS: A coin-laundry extractor is a free-standing centrifuge that can squeeze water from laundry by spinning it at great speeds. Some models can attain speeds of over 1500 RPM. If heavy items such as towels or dungarees are squeezed in an extractor before being placed into a dryer, drying time can be cut by one-half. As reduced drying time translates to a need for fewer dryers, extractors are a common sight in laundromats located in New York City, where real estate (and therefore rental space for dryers) is very expensive. Here follow some points on extractors: They must be loaded properly (otherwise, items can spin out of the basket). Accordingly, their introduction requires a commitment to doing customer orientation and training in their use. There are two basic types of extractor: direct-drive and indirect-drive. Indirect drive units have a transmission and friction resistance braking system; they are considerably more maintenance intensive than direct-drive models, which have a three-phase electric motor directly driving the basket and by reversing electrical polarity, direct-drive models brake using electrical energy rather than friction resistance. Extractors are inherently dangerous (a heavy steel basket spinning at tremendous speeds). Although recent models incorporate several safety features (directed mostly at insuring that the lid properly closes and remains closed during operation), extractors have, at least in the past, been a source of serious injury and considerable litigation. LEASE: If you lose your lease, it is very expensive to set-up in a new location: machine pad construction (far more expensive if there is a basement);

sufficient gas supply for dryers; lawful waste-water egress; plumbing (including sufficient water supply); three-phase and single-phase electrical layouts; dryer venting system; flooring, ceiling, and counter space. Accordingly, laundermats need to have a long and easily assignable lease. What makes one laundromat succeed and another fail? A key factor is location, location, location. Our carefully trained site-selection experts will look at the demographics of an area to assist entrepreneurs in finding the best possible location for a laundromat. A demographic study determines the number of people moving in and out of an area, the size and spending patterns of households, and the ratio of homeowners to renters. Traffic patterns in the area will help to determine how successful a store might be and parking availability is also important to future success. Appearance is another key factor in a laundromat's success. The design and maintenance of your facility can keep your customers satisfied or cause you to lose business to the competition. At Mac-Gray our consultants have extensive expertise in designing and renovating various types of laundry facilities. Our technicians are experts in the mechanical infrastructure of coin laundries and will work closely with you - from site design to completion of the facility. We specialize in laundry room renovations such as decor, venting, plumbing, gas, wiring and equipment layout for optimal efficiency.

What are the advantages of owning a coin laundry over other types of businesses?

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Relatively minimal capital investment.

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No franchise fees.

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Minimal labor commitment (customers do most of the work).

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No accounts receivable with minimal inventory (no spoilage factors).

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Cash business.

How much time would I have to devote to the business?

Usually 10 to 15 hours per week.

If I decide to invest in a coin laundry, how much capital and reserve should I expect to have?

Approximately 25% of the total store costs are the minimum required down payment. Total store costs vary depending on the size, location, type of building and utilities in the building. Your net worth should be at least two times (2x) the total loan amount if applicable.

How much will it cost to equip a store with washers and dryers?

Investors who are thinking about opening a laundry store often ask this question and the answer is very difficult to determine. Location, demographics of the area, layout of the site, size of the equipment, water heaters, water storage tanks, plumbing, exhaust venting, etc., will all contribute to the total cost of the store. Mac-Gray provides a feasibility study that will address a specific location and provide a more accurate equipment package cost.

What is "Drop Off" service? (This applies to fully attended stores only.)

This is a service offered to laundry store customers where the customer drops off their laundry for the store attendant to wash, dry, and fold. Normally there is a ten-pound limit and the charge for this service will range from 65 cents to 95 cents per pound. If you have any additional questions, please call Mac-Gray at 1-800-MAC-GRAY (1-800-622-4729) for more information. You can also send us an email and one of our experienced consultants will contact you. What kind of return can I expect from my investment? Are there tax benefits?

Capital invested is usually recovered in less than three years, but remember the success rate of your business depends on how well you manage it. Tax benefits are commensurate to your personal yearly income. If you are in the 30% personal income tax bracket or higher, the tax benefits are extremely good. The rewards for an entrepreneur are income and tax benefits.

What are impact fees and how do I find out if they will affect my new laundromat?

Impact fees are imposed by the City as a condition of, or in connection with, approval of a development project that requires connecting to the City's water, sewer or irrigation system. Not all cities impose impact fees. To find out if your city has established impact fees call your city council or go to your city's Web site.