Speed Queen Vended Laundry Opportunity Guide - There's no business like the vended laundry business - BDS Laundry
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There’s no business like the vended laundry business. Speed Queen® Vended Laundry Opportunity Guide
UNCOMMON
FLEXIBILITY WITH
HIGH RETURN
ON INVESTMENT
POTENTIAL.
BDS Laundry Systems and Speed Queen
are the perfect partners for profitability.
2
A solid investment for the future
When researching a small business investment opportunity, the first question you
want to ask is: “Is it profitable?” When it comes to the vended laundry business, the
answer to that question is a resounding “yes.” In fact, according to the national
Coin Laundry Association, vended laundries see an average return on investment
of 20-35%* — much higher than most alternative investment opportunities. Add
additional benefits such as no franchise fees, independence, flexibility, modest
start-up costs and recession resistance, and you’ll soon see that there is no
business like the vended laundry business.
Achieve your dreams
Every business opportunity presents both advantages
and disadvantages depending on your own
personal goals. The vended laundry business is no
different. But with a unique combination of stability,
flexibility and profit potential, vended laundry
business investments are in a class all by themselves.
A stable foundation for success
Currently there are around 29,500 vended laundries in the United States, and they
generate approximately $5 billion in gross revenue annually*. Clean clothes, like
food and shelter, are considered a necessity of life and vended laundries provide
a basic health service for millions of Americans. Laundries thrive in periods of both
growth and recession. During recessions, when home ownership decreases, the
laundry market expands as more people are unable to afford to repair, replace
or purchase new washers and dryers, or as they move to apartment housing with
inadequate or nonexistent laundry facilities. The market size grows proportionately
to the increase in population. Laundering large items for personal and business use
creates a need for a vended laundry for virtually everyone. The public will always
need this basic health service — people always need to wash clothes!
*Industry figures courtesy of the Coin Laundry Association, www.coinlaundry.org
Compared to most traditional investments like stocks,
bonds and real estate, a laundry business offers many
unique benefits and the potential for high ROI.
3
WHY INVEST IN
A SPEED QUEEN
VENDED LAUNDRY?
There are loads of reasons — and
profitability is at the top of the list.
4
A business unlike any other
When it comes to both a financial and time commitment, a vended laundry has
many advantages over most other types of businesses. The flexibility enjoyed by
vended laundry investors allows them to customize their business around their
personal lives. In fact, a recent survey reveals that one-third of current laundry
owners run their stores on a part-time basis while maintaining a full-time career.
Explore the advantages
• No franchise fees
• Potential for a comparatively high rate of return on investment
• Can be a part-time addition to your existing career
• Labor costs are minimal because customers do most of the work
• Relatively easy to run compared to other service businesses
• No special technical skills are needed
• Minimal accounts receivable — most of the revenue generated
each day can be collected the same day
• Fixed costs are minimal
• Virtually no inventory costs
• No inventory spoilage factors
• More resistant to recession and
economic downturns
• No complicated bookkeeping
or accounting systems
• Minimal employee concerns
• Potential tax advantages due to fast
depreciation for business owners
• A business that is likely to appreciate
in value over time
The flexibility enjoyed by laundry owners
allows them to customize their business around
their personal and professional lives.
5
SPEED QUEEN
DELIVERS SUPERB
OWNER BENEFITS.
Your choice of equipment brand
can increase the likelihood of success.
6
Worldwide leader in commercial laundry
Every day, every cycle, Speed Queen equipment performs. Without a focus on
quality, Speed Queen would never have become the largest commercial laundry
brand in the world. Investing in Speed Queen products means you’ll get premium
performance and reliability that is second to none. Speed Queen washers and
dryers are constructed to last longer in commercial environments, and they’re
tested to ensure rugged durability and long-term dependability. Speed Queen
washers and dryers are proudly made in Ripon, Wisconsin.
Revolutionary technology
Speed Queen’s revolutionary Quantum ® system gives owners complete control
over their laundry business. Featuring networked, customizable options — including
the ability to manage many aspects remotely — Speed Queen Quantum ®
equipment delivers powerful benefits to make life easier and more productive.
Built to a higher standard
Speed Queen products are a different class of laundry. No other commercial
laundry manufacturer demands more from their machines than Speed Queen’s
parent company, Alliance Laundry Systems. Every product must meet their rigorous
5-stage product development process before production ever starts.
Some competing brands may believe that a residential
washer wrapped in a rugged exterior passes for
commercial grade. But many of these “home
appliance style” machines won’t stand the test of time.
That’s why every Speed Queen machine is designed,
tested and built to withstand the rigors of commercial
use. Simply put, Speed Queen equipment will last
longer and need fewer repairs compared to other
competing brands.
For more than a century, Speed Queen has built a
legacy by manufacturing equipment that withstands
the daily challenges of the commercial environment.
7
A SPEED QUEEN
VENDED LAUNDRY
OFFERS TOTAL
FLEXIBILITY.
Speed Queen’s full-line of washers and
dryers provides opportunity in every market.
8
Quality products made for today’s consumers
The type and size of Speed Queen equipped vended laundry an investor
should build varies from market to market — and even from neighborhood to
neighborhood. Speed Queen’s full-line of top-load washers, front-load washers
and tumble dryers allow store designs that match the needs of the surrounding
community. Whether your market is located in a rural area, suburb or a large
metropolitan city, you can trust Speed Queen to deliver a total store package
designed for profits. BDS Laundry Systems, the authorized Speed Queen distributor
serving the region, can help you design a vended laundry store that fits just right.
Speed Queen products are built in the company’s own Wisconsin factories to
ensure the best quality control.
Whether you’re opening a new laundry or upgrading an
existing location, Speed Queen and BDS Laundry Systems
have the equipment and expertise you need for success.
9
MAJOR FACTORS
FOR SUCCESS:
LOCATION AND
EXTERIOR SIGNS.
Generate higher traffic with the right
location and professional signage.
10Location directly impacts success
The real estate adage “location, location, location” applies to the vended laundry
industry. A vended laundry business can be well-equipped, well-built and well-
managed, but if the location isn’t right, the business may not reach its full income
potential. Here are key guidelines to follow when selecting a site:
• Locate near other retail businesses
• Provide adequate parking
• Be aware of your competition
• Know the demographics of the surrounding area
(population, owners vs. renters, income level, etc.)
Project a professional image
Attracting a steady stream of customers to your Speed Queen equipped laundry is
highly dependent on installing professional signage. It’s important to make certain
that exterior signs are as visible as possible — both day and night. After all, exterior
signs are proven to be the #1 traffic builder for vended laundry stores. In fact,
nearly half of laundry customers surveyed said they found out about the store by
seeing the exterior sign, not through traditional advertising or online search.
Two major factors that influence the long-term
success of a vended laundry store are location
and having professional exterior signs.
11WHERE
WILL YOUR
CUSTOMERS
COME FROM?
The vended laundry market is fairly predictable,
which makes for a sound investment.
12Laundries serve an expanding market
One of the most exciting aspects of owning a vended laundry business is the
potential market. It consists of many more people than just those who lack
access to in-home laundry machines, such as apartment dwellers, home renters,
college students and transient workers. In fact, a recent survey of vended laundry
customers reveals that just slightly more than 50% fall into that category.
Approximately one-third of today’s vended laundry customers have access to a
home laundry facility, yet prefer to use the equipment available at a self-service
vended laundry. The reasons include:
• Large-capacity machines make it easy to wash and dry oversized household
items such as comforters, bath towels, rugs, sleeping bags and other items
• Ability to do laundry faster because of multiple machines and larger capacity
• Commercial-grade equipment provides better results for heavily soiled loads
• Home laundry appliances are too small to handle bulky items
More potential customers
• Business and leisure travelers visiting the area on a short-term basis
• Other businesses that require clean laundry, such as salons, spas, health care
facilities and restaurants, but have no on-site laundry equipment
• People whose home laundry equipment is temporarily not in working order
Meeting the demand
Today’s vended laundry customers want immediate access to machines in a
clean, comfortable and safe environment. It’s important to equip your store with
enough washers and dryers to handle peak traffic during evening hours and
weekends.
Vended laundry customers want to experience
time savings and convenience in a clean and
safe environment that is close to home.
13INVEST IN THE
BEST FOR YOUR
NEW BUSINESS
VENTURE.
Put your trust in the world’s most
experienced equipment manufacturer.
14Humble beginnings
Alliance Laundry Systems, the parent company of Speed
Queen brand commercial laundry equipment, traces its
roots back more than a century ago. In 1908, Joe Barlow
and John Seelig, two industrious hardware store owners
in Ripon, Wisconsin, purchased several hand-powered
washing machines from a company in Kansas City. After
experimenting with the washing machines, the inventors
devised a way to increase the machine’s efficiency
through high-speed gearing. The partners purchased the
manufacturing rights from the company in Kansas City
and Barlow & Seelig Manufacturing was born. Barlow &
Seelig produced a limited amount of washers sold under
the name “White Cloud” until 1928 when the brand
became Speed Queen — and a legend was born.
Leading the way
Fast forward to today. Alliance Laundry Systems and its regional distributor
partners remain dedicated to delivering the best washers and dryers backed
by the industry’s finest service and support. Refined for more than a century,
Speed Queen’s innovative technology and proven performance deliver the
reliable operation you’ve come to expect from the most profitable brand to
own in commercial laundry. Speed Queen
products are proudly made in the USA.
Alliance Laundry Systems is based in Ripon,
Wis., and its corporate headquarters
campus occupies five buildings on more
than 58 acres. Its facilities include two
manufacturing plants, an engineering
center and test lab, and distribution
facilities. The company provides more
than 2,700 jobs.
Depend on Speed Queen equipment from
BDS Laundry Systems to help you meet your
goals and maximize your return on investment.
15PROFESSIONAL
FINANCING
OPTIONS ARE
AVAILABLE.
Lease and financing terms are flexible
to match your needs and business goals.
16Our independent financing specialists
can tailor a plan to meet your needs
When you invest your hard-earned money into a new business venture, you
want to take every step possible to ensure the success of that investment. And
nothing increases a vended laundry investment’s chances like the support of our
independent financing specialists.
Personalized Relationship Management
A finance professional will personally manage your account from the beginning
to the end of your coin laundry business loan — but it doesn’t stop there. Your
contact will continue to tailor specific programs for future financing situations,
such as updating your equipment or expanding your portfolio, to ensure ongoing
success after your store opens.
Tailored to Your Needs
Commercial laundry financing programs can be specially formatted to put you
in the best position for success, such as structuring your front-end payments to
coincide with the projected ramp-up of your store. Whether you have one store
or seven, there are several options to make sure your financial plan is flexible and
supports future growth.
Business Benefits
Many funding packages will provide up to 95% equipment financing for immediate
ordering of equipment. With your good credit standing, minimal down payment
requirements will help reduce big cash outlays. In addition, equipment financing
may offer tax advantages as an operating expense.
Flexibility
BDS Laundry Systems can provide assistance in applying for a Small Business
Administration (SBA) loan. Our experts are also seasoned in working with local
banks and other lenders to help you secure the financing you need.
Our independent financing specialists
can provide a variety of vended laundry
equipment funding options for new investors.
17WHAT’S THE
NEXT STEP?
The experts at BDS Laundry Systems can
help you get started in this profitable business.
18An experienced partner you can trust
As the authorized Speed Queen distributor serving the region, BDS Laundry Systems
has more than 54 years of experience in the commercial laundry industry. Since
1961, BDS has helped entrepreneurs establish more
than 852 successful vended laundry stores across
the upper Midwest. When you partner with BDS, you
will work closely with our business consultants who will
guide you through the entire process. Unlike other
business opportunities, access to this level of expertise
is provided at no additional cost.
Why choose BDS Laundry Systems?
EXPERIENCE. On top of the products and services we offer, BDS Laundry Systems
brings something far more valuable to the table — experience. Our vended
laundry sales consultants are the best in the industry, and they know the laundry
business and local markets better than anyone else. It’s experience you can
depend on.
FOCUS. Unlike some of our competitors, commercial laundry equipment sales and
service is our company’s exclusive focus. That’s how you become an expert — do
one thing and do it very well.
FAMILY OWNERSHIP. BDS is a third generation, family owned company. You deal
directly with our top management team and you can rely on us for a commitment
to your 100% satisfaction.
REPUTATION. BDS Laundry Systems has consistently been honored with numerous
sales and service excellence awards from leading manufacturers and industry
organizations. These awards are a reflection of the pride we take in our work.
CUSTOMER SERVICE. The experts at BDS are available long after the sale to answer
questions and provide ongoing consultation. You’ll enjoy a refreshing commitment
to personal service. We are truly dedicated to your long-term success.
Depend on the experienced team at
BDS Laundry Systems. We know what it takes
to succeed in the vended laundry business.
19MAKE
INFORMED
DECISIONS.
BDS Laundry Systems can assist you in
identifying the optimal location for your store.
20Discover market opportunities
When it comes to success in the vended laundry
business, it’s important to work with a distributor that
has more than a half century of experience in making
certain your store is located in an area where you have
the best opportunity to thrive. A detailed demographic
study is the place to start. 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.
BDS Laundry Systems will also provide a competitive analysis for a potential site.
This includes identifying area competitors, and assessing their strengths and
weaknesses in such areas as equipment mix and condition, amenities offered,
pricing and other important factors.
Selecting your location
• The site should be near other businesses
• You must have adequate parking facilities available for your customers
• Make certain the site is in a highly visible area
• Locating on a corner where two streets intersect usually makes for
an ideal location
• Be aware of the competition in your area
• Conduct a detailed demographic analysis
• Determine the best location(s) for exterior signage and research sign ordinances
• Look into local advertising and promotional opportunities available in the area
Your BDS Laundry Sales Consultant can help you scout
potential locations and perform detailed research to
find the ideal location for your new business.
21DETERMINE
YOUR STORE’S
ESTIMATED
PROFIT
POTENTIAL.
BDS Laundry Systems can provide revenue
projections before you ever invest a penny.
22The bottom line is your profitability
Based on the results of the demographic and competitive
analysis, BDS Laundry Systems will provide a detailed,
estimated revenue projection report* calculated uniquely
for your location before you make any investment in the
business. This report will provide you with a snap-shot 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.
Maximize your profit potential
Your profitability will be influenced by:
• Exterior signage • Reliability and performance
of the equipment
• The size of the target market
• Favorable lease terms
• Ample parking
• Equipment mix
• Customer retention rates
• Ancillary services
• Utility costs and overhead
• Strength and changes in competition
• Employing friendly laundry
attendants • Effective, on-going promotions
• Store cleanliness and safety • Management ability
• Hours of operation
* 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.
Clean clothes, like food and shelter, are a basic
human need. That’s why many consider vended
laundries to be recession resistant.
23THE RIGHT MIX
OF EQUIPMENT
IS THE RECIPE
FOR SUCCESS.
The type, size and amount of equipment
you choose can make all the difference.
24Maximize ROI with right mix of equipment
Choosing the proper mix of equipment for your Speed Queen equipped laundry
is important. By being in tune with market preferences, you can match the
equipment to the particular needs of users. For example, college students typically
want smaller, single-load equipment, while families demand a mix of larger, multi-
load machines so they can complete the laundry chore quickly and efficiently.
Generally speaking, larger washers are more efficient per pound of laundry
washed. Therefore, profit margins are higher on multi-load equipment compared
to traditional top-load washers. Areas with large families require having a higher
proportion of large washers.
It is also important to have ample dryer capacity. To maximize
revenue on busy days, such as weekends, you need to move
customers through the store as quickly as possible. With the right
combination of single- and multi-load washers, the general
rule is there should be one dryer pocket per washer. Carefully
selecting the optimal mix of equipment will draw customers to
your store, maximize turns per day and minimize utility costs.
Additional equipment needs
In addition to washers and dryers, it is essential that you provide other equipment
in your vended laundry store:
• Bill changers • Highly efficient water heating systems
• Credit card acceptance • Utility bulkheads for washers
• Money management system • Folding tables and seating units
• Ozone water sanitizing system • Laundry carts
• Soap and plastic bag vending machines • Other market-specific equipment
• Snack and beverage vending machines
The experts at BDS Laundry Systems know which
types of equipment will work best for your operation.
25PLAN THE
STORE LAYOUT
FOR CUSTOMER
CONVENIENCE.
The goal is to maximize profit per square foot
by providing a convenient store layout.
26In-house store layout and design are critical
factors in the marketability of a vended laundry
Second only to location, the most important factor contributing to the ultimate
success of any vended laundry is the layout and design of the store’s interior. If
your store is designed for convenience, it will meet the needs of your customers,
and encourage them to come back time after time.
Before breaking ground on new construction, or extensively remodeling an existing
building, the experts at BDS Laundry Systems can provide you with a thorough and
detailed plan that will make the best and most profitable use of floor space for a
particular location.
The store layout plan will include:
• Equipment mix specifically designed • Optimal placement of bill changers
for your demographics and attendant station
• Mechanical requirements such as • Efficiency and performance
adequate water pressure, supply of enhancements
hot water, venting, the size of gas
lines, location of sewer lines and
utility planning
• Wide aisles and plenty of windows
for ambiance and security reasons
• Smooth workflow for employees,
particularly if you offer ancillary
services
• Wide doorways to make it easy for
customers to enter and exit
• Attractive interior design, including
color schemes, flooring options, Example of a 2,000-sq.-ft. store layout
ceiling fans, television monitors, etc.
BDS knows how to maximize your profit
potential by designing a laundry with the
proper equipment mix, services and layout.
27WELL-DESIGNED
MECHANICALS
PAY BIG
DIVIDENDS.
A well-planned and efficient back room
will save you money year after year.
28The right mechanical systems
increase energy efficiency
A self-service vended laundry store requires the use of
significant amounts of natural resources including water,
natural gas and electricity. The experts at BDS Laundry
Systems have the real-world experience to design
systems that maximize the use of these resources.
HIGHLY-EFFICIENT WATER HEATING SYSTEM. The water heating system in your
equipment room may not be the most glamorous part of your operation, but it is
the heart of it. BDS will engineer a water heating system specifically for your store
to meet your hot water requirements. The right water heating system can provide
efficiency levels as high as 99.8% efficient to make your operation more profitable.
DRYER MAKEUP AIR SYSTEM. The experts at BDS Laundry Systems will work with your
building contractor to engineer an efficient dryer makeup air system specifically
tailored to your location. Properly vented dryers will provide better results for your
customers and reduce your operation costs by maximizing efficiency.
MONITORING SYSTEM. It is important to keep an eye on your investment,
even when you’re not able to make a store visit. New security and monitoring
technology allows you to view video surveillance via the Internet, monitor bill
changers and more. You can even remotely lock and unlock doors and control
lighting from the comfort of your home or office.
The nuts and bolts of managing utility costs
and protecting your investment is where your
real competitive advantage exists.
29OFFER EXTRAS
TO EARN EVEN
MORE.
Maximize your profits by offering
complementary products and services.
30There’s more to today’s vended laundry
stores than just washers and dryers
Let’s face it. Not many people like doing laundry. That’s why it’s important to make
the experience as enjoyable and efficient as possible. Here are several ways other
store owners have cashed in on this captive audience.
• Wash/Dry/Fold service • ATMs
• Tanning booths • Kids zone
• Car wash • Concessions
• Pet wash • Coffee bar
• Mailbox rentals • Fitness center
• Convenience/grocery store • Drycleaning
• Video games • Internet access
Commercial accounts
A significant opportunity exists in serving commercial
accounts — such as restaurants, catering services, health
clubs, salons, spas, grocery stores, health care facilities
and more. Many store owners provide pickup and delivery
services for larger commercial accounts.
When designing your Speed Queen equipped
vended laundry, consider including amenities
to attract a variety of customers.
31COIN OR CARD?
LET CUSTOMERS
DECIDE AT
THE POINT OF
PURCHASE.
Give your customers the power to swipe
their credit or debit card right at the machine.
32BDS Laundry Systems offers advanced
solutions for total payment flexibility
Nearly 75% of U.S. consumers carry at least one credit card in their wallet or purse,
and studies show that customers spend more money when using credit cards
versus cash. Customers who use credit cards will often seek out businesses that
offer card-based payment options. New FasCard technology from Card Concepts
Inc. (CCI) allows vended laundry owners to accept credit cards on washers, dryers
and other vending equipment, while still offering customers the option to use coins
for payment. This revolutionary system uses wireless technology for easy installation
and offers powerful web-based management tools to put owners in complete
control of their business.
PAYMENT CONVENIENCE
Machines equipped with the FasCard System have the ability to accept major
credit cards and “offline” debit cards while still having the ability to accept
quarters as usual. Coins or card? Let your customer make the choice!
BIGGER PROFITS
Customers that pay using a credit card will buy more wash cycles, upgrade to
higher priced machines and buy more dry time. Customers no longer have to
insert quarter after quarter into the coin drops, and you’ll deal with fewer hassles
from having to count, roll and transport quarters to the bank.
100% WIRELESS
The FasCard System uses wireless
communication for cable-free installation.
The system is easy to install and integrates
seamlessly with Speed Queen controls.
Credit card acceptance allows customers to
choose the payment option that best fits their needs.
33READY TO CLEAN
UP? CONTACT US
TO LEARN MORE.
For the right investor, a vended laundry can
produce a steady, predictable income stream.
34Success is within your reach
When you’re ready to discuss the advantages of owning and operating a
Speed Queen equipped vended laundry, contact us for a no-obligation
consultation.
BDS Laundry Systems
2430 Enterprise Drive
St. Paul, Minnesota 55120
Toll-Free: 800-688-0020
bdslaundry.com
BDS Laundry Systems is the authorized Speed Queen Commercial
Laundry Distributor serving the areas highlighted in purple.
Our team of laundry professionals will introduce you
to the exciting benefits of owning and operating a
self-serve vended laundry in your local market.
35IMPORTANT INFORMATION You should conduct your own independent research and consult with your own professional advisors before making a decision about starting a 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. Copyright © 2015 BDS Laundry Systems. All rights reserved. Speed Queen® and Quantum® are trademarks of Alliance Laundry Systems LLC.
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