That Loud Sucking Sound

[Adamski]

Guys,

I just got home from a 10 day vacation and I want to tell you about it.

We went on a 7 day cruise on the Oasis of the Seas which, along with the Allure of the Seas, are the largest cruise ships in the world. I am convinced that these 220,000 gross ton mega ships indicate the direction cruising is going. In time, all the lines will have ships like these or even larger ones.

These ships are very efficient. They cruise at slow speeds and spend a lot of time at sea rather than in ports. This cuts down on fuel consumption and dockage costs while allowing the casino to be open for business more hours as well. These ships have a half dozen specialty restaurants that provide a high quality meal at an additional charge producing more income for the cruise line. These ships carry 6100 guests who shop in exclusive stores, play $100 slot machines, play $30 bingo, buy $4 ice cream treats, get $120 massages, buy $80 shore excursions, drink $10 drinks and eat $25 meals ... all onboard.

That brings me to that loud sucking sound. I estimate that passangers spend over 3 million dollars onboard during the week long cruise. This is in addition to the cost of buying the cruise tickets, airline tickets, pre-cruise package, post-cruise package, etc. Truly, these new ships have an invisible vaccum machine that is aimed directly at each passanger's pocket and the cruise lines are certainly not shy about setting that machine on HIGH SPEED.

Every time I go on vacation, I see other industries raising prices, inventing up-charges and requesting double tips (Florida is famous for including the restaurant tip on the tab and then the waitress always asks, "Do you need change?" Oh no, keep the change and here, why don't you take my credit card and buy your husband a little something too.)

It's during times like these, while on vacation, that I become more and more convinced that our quarters have too little value to use in a coin operated laundromat. If a cruise ship can go from charging $20 one year to $30 the next year to play bingo, there is no logical reason we cannot raise wash prices in dollar increments. It's time this industry started making our own LOUD SUCKING SOUNDS.

[CanCanCase]

Larry-

Just out of curiosity, how many on your cruise were spending "worthless quarters" or dollar coins? That's a rhetorical question that I'll answer with a resounding NONE.

My last cruise is actually where I became convinced of the merits of a card system. Just like in Vegas where it's rare to see actual cash placed as a bet anymore, the cruise lines have learned that it's MUCH easier to vacuum your money away when you never really see your money. Everything on board is just a "cruise card" tied to your bill (which is conveniently tied to your credit card!)

As for the laundromat industry not raising prices in proportion with the cruise industry, remember that a cruise is a luxury, whereas laundry is a basic human need. In our bar business, we decided long ago that we would be a "price leader"... But we did have to give an enhanced product. You could still get a $3 drink at the dumpy bar down the street, but my low-end was $5 or $6 for a premium name brand drink. I guess an owner has to decide whether they want to run what people expect of a laundromat (to me, that expectation is dumpy, dirty, top-loaders that run on quarters) or whether they want to build a premium, high-end store with a variety of ancillary profit centers and up-charges.

- Case

[ldm]

Beyond the Dollar and Quarter argument...I think the industry is under priced, and I do what I can to help that each year or two in our community and help keep the customers coming back with the condition of the Store, upgrading and maintaining machines, etc. A lot of what you can do with your pricing also depends on your location. There is simply too much competition in some markets, and raising rates to where they logically should be is a death sentence for the business. Other operators have a mini monopoly and despite this advantage provides an excellent service at a fair price for all concerned. Larry and Case are clearly players in the industry with successful business plans that apparently respectively include dollar coins and cards. I still use quarters to my customers delight, but if my area changes, or my customers demand it, I will adjust my strategy to keep my market share.

More importantly, no matter your chosen market or operating method...know your every cost and price your product for a fair profit. If your market does not allow this, then change jobs...it is better than going broke in a controlled manner.

[jh]

Larry,

I hope you had a wonderful trip and stop counting quarters for awhile. :D Some people have saved a few bucks here and there (including laundry quarters) just to get on a cruise once in a life time...while they come to our mats once every week. There is competition out there for cruises as well but their customer base is international while ours is from a few blocks to a few miles. If you could convince people to visit your mats from other states or countries, I'm damn sure you could raise your price to a whole new level.

John

[Adamski]

Case,

While the cruise card account is a plastic card, the reality of the spending is abundantly clear when one checks his account on the interactive stateroom TV or, if avoiding that venue, the paper statement that arrives at the stateroom the night before the cruise ends. In the end, money spent is money spent regardless of its format.

With its customers held captive for a week, the cruise industry can do pretty much anything it desires including requiring the use of a cruise card for multiple issues which are unique to that industry. Laundromats do not hold customers captive and must therefore be more in tune with customer wishes and expectations.

[STOUT]

With all that said Larry and Case; The laundry machines on the ship, for the passengers to use, is a coin operated machine not a card machine!!! Another startling fact is they require TOKENS for the washers and dryers and soap machines!!!

It was interesting when I went on NCL that I had to go get tokens to use. Occasional I will get one of them in my machines. They are the same size as a quarter.

The laundry was a small room with 6 to 8 machines in a roll. The machines were the Maytag front loader Neptune series. You could also use the tokens to iron your clothes.

So the cruise lines also make $ off from unused and never returned tokens. Smart very smart.

[mellofelow]

Welcome back Larry... glad you had a great time. I once worked for Crystal Cruises (ultra high-end line) as an I/T specialist and got to see much of the world.

Although I agree with your viewpoint for the most part, however, don't lose the fact that YOU, unlike most of your customers, probably will never see the feast what you just enjoyed in their lifetime.

Besides my full time job, I also put in almost the same amt of hours at the mat and often mingle with my customers. I'd say I know almost all the regulars by first name basis. You know, as I lend my ears to hear their livelihood, as much as I struggle in the mat and hours of dedication, I thank my lucky stars and go home tired to hug my kids and wife.

Some stories are just heart breaking, many of them are struggling to survive. As much as I would like to match or lead vending prices, if so, I know many customers will suffer. It may not be much, but it could be a few meals a month or joys for their children.

Sure, I'd love to turn up the volume on the 'LOUD SUCKING SOUND', but that noise will probably keep me awake at night.

[thinkclean]

Guys,

I just got home from a 10 day vacation and I want to tell you about it.

We went on a 7 day cruise on the Oasis of the Seas which, along with the Allure of the Seas, are the largest cruise ships in the world. I am convinced that these 220,000 gross ton mega ships indicate the direction cruising is going. In time, all the lines will have ships like these or even larger ones.

These ships are very efficient. They cruise at slow speeds and spend a lot of time at sea rather than in ports. This cuts down on fuel consumption and dockage costs while allowing the casino to be open for business more hours as well. These ships have a half dozen specialty restaurants that provide a high quality meal at an additional charge producing more income for the cruise line. These ships carry 6100 guests who shop in exclusive stores, play $100 slot machines, play $30 bingo, buy $4 ice cream treats, get $120 massages, buy $80 shore excursions, drink $10 drinks and eat $25 meals ... all onboard.

That brings me to that loud sucking sound. I estimate that passangers spend over 3 million dollars onboard during the week long cruise. This is in addition to the cost of buying the cruise tickets, airline tickets, pre-cruise package, post-cruise package, etc. Truly, these new ships have an invisible vaccum machine that is aimed directly at each passanger's pocket and the cruise lines are certainly not shy about setting that machine on HIGH SPEED.

Every time I go on vacation, I see other industries raising prices, inventing up-charges and requesting double tips (Florida is famous for including the restaurant tip on the tab and then the waitress always asks, "Do you need change?" Oh no, keep the change and here, why don't you take my credit card and buy your husband a little something too.)

It's during times like these, while on vacation, that I become more and more convinced that our quarters have too little value to use in a coin operated laundromat. If a cruise ship can go from charging $20 one year to $30 the next year to play bingo, there is no logical reason we cannot raise wash prices in dollar increments. It's time this industry started making our own LOUD SUCKING SOUNDS.

don't fight the tape, laundry is a weekly to biweekly necessity - a commodity if you will. Vacations, destinations, jewels, watches, chocolate, wedding-plans are event-driven. If you can convince a customer that he/she absolutely has without a doubt the need to get his/her laundry done in the next hour at your store, one that is floating on the ocean or tucked in a scenic valley, you can charge whatever you want. You can skip dollar coins and go straight for twenty bills. Or if you have only one washer and one dryer and 10 people that feel that way at the same time, go for hundreds.

[Adamski]

Guys,

The main thrust of my initial post for this thread was that the cost of things you and I buy throughout the year have been and continue to be on the increase. Things we need like food and cars or things we want like vacations and beer; they're all increasing in cost. We must get more out of our laundromats to keep up with these rising personal costs.

As we raise prices to maintain our current profit level and standard of living; we need to establish a payment system that is efficient and customer-friendly. The vast majority of our laundromats are and will continue to be coin-operated. We all have looked at card systems time and time again and most of us have decided to remain coin-operated for a variety of reasons that don't need restating here. So, having determined that we want to remain coin-operated, the only question remaining is what kind of coin or bi-coin system do we want to use.

I don't think anyone wants to go back to using dimes or nickels even though these coins would allow greater flexibility when raising vend prices. The cost of that increased pricing flexibility is customer frustration and unrelenting technical issues. That means we have to choose among using quarters, dollar coins or a combination of both coins.

The quarter still works okay for our smallest washers but inserting 12 - 40 quarters to start a larger washer is ridiculous. In addition, these low-value quarters tend to prematurely fill the coin boxes on our large washers. Bill changer capacity is also limited by the amount of quarters that can be loaded into the hoppers. Many of us are at the point where a quarter buys just a few minutes of dryer time. All things considered, the quarter is no longer a practical coin to use in a Five Star coin-operated laundromat.

The bi-coin (quarter and dollar coin) system is confusing to customers. They will consistently go to the wrong changer and get the wrong coins as I learned during the 5 year period when my place was partially on dollar coins and partially on quarters. Although regular customers will know which washers need dollar coins and which are still on quarters, new customers and those that visit on rare occasions will need an attendant's help when they make mistakes and end up with a handful of the wrong coins. In addition, vending with both quarters and dollar coins fails to resolve coin box and hopper capacity issues.

The Dollar Coin Only system totally elliminates any customer confusion. They will get the correct coins out of the changer regardless of which changer they use because all changers dispense only dollar coins. They will insert the correct coins into the washers and dryers because all washers and dryers only accept the dollar coin. Any quarter dragged from a customer's purse and inserted in a coin slot will be immediately rejected back to the customer. Only a few coins are required to start even the largest washer. Customers purchase a short (1 coin), medium (2 coins) or long (3 coins) dry cycle depending on the type load they have. The long cycle will dry a king-size quilt. The Dollar Coin Only system is user-friendly for our customers and resolves the technical issues that now plague owners who are currently on quarters.

I began converting my machines with Dollar Coin Only seven years ago and completed my conversion over two years ago. My laundromat is the highest priced laundromat in my market. Many of my competitors are Charity laundromats. Although it's the only Dollar Coin Only laundromat in my market, it's the busiest laundromat. Obviously, Dollar Coin Only has not driven my customers to any of the quarter only Charity laundromats. I've been proving that Dollar Coin Only works day after day, month after month, year after year. I continue to recommend Dollar Coin Only for fully attended, high price leader laundromats with an established customer base.

[mjwalsh]

Welcome back Larry... glad you had a great time. I once worked for Crystal Cruises (ultra high-end line) as an I/T specialist and got to see much of the world.

Although I agree with your viewpoint for the most part, however, don't lose the fact that YOU, unlike most of your customers, probably will never see the feast what you just enjoyed in their lifetime.

Besides my full time job, I also put in almost the same amt of hours at the mat and often mingle with my customers. I'd say I know almost all the regulars by first name basis. You know, as I lend my ears to hear their livelihood, as much as I struggle in the mat and hours of dedication, I thank my lucky stars and go home tired to hug my kids and wife.

Some stories are just heart breaking, many of them are struggling to survive. As much as I would like to match or lead vending prices, if so, I know many customers will suffer. It may not be much, but it could be a few meals a month or joys for their children.

Sure, I'd love to turn up the volume on the 'LOUD SUCKING SOUND', but that noise will probably keep me awake at night.

Bruce,

You make some good points that will also be consistent & help if you ever have to face down with journalists present at a tax committee at your state legislature offsetting some of their forceful arguments' of " what do you care --- you don't pay the extra tax --- your customers have to pay it!"

Another noise at night that might keep me (us) awake at night is a potential overwhelming number of slugs in my coin boxes from inferior coin mechs! Sometimes truth & reality is hurtful but still needs to be eventually addressed! We know first hand what can happen based on inferior coin mechs that we used to use at one time in our attached 42+ year old 6 bay self service car wash.

MJ

[Adamski]

...Another noise at night that might keep me (us) awake at night is a potential overwhelming number of slugs in my coin boxes from inferior coin mechs! Sometimes truth & reality is hurtful but still needs to be eventually addressed! We know first hand what can happen based on inferior coin mechs that we used to use at one time in our attached 42+ year old 6 bay self service car wash.

Mike,

I suppose everyone comes to the table with different experiences. When I had a 3 bay car wash, it was not unusual for customers to shoot high pressure water into the coin drop in an attempt to short out the coin switch and activate the bay for free. This problem was solved by replacing the coin switch with a coin sensor but these wet dream attempts still continued from time to time anyway.

Fortunately, laundromats don't have high pressure water available near each coin drop so this is not an issue for us. I've owned 5 laundromats over the last 40+ years and slugging has never been more than a very minor inconvenience on very rare occasions over those years. Since we got off the dime, coin drop dependability dramatically improved. Still, there was the occasional coin drop that would stop working due to lint accumulation or dirty tracks. These issues virtually disappeared with the conversion to dollar coins though. The heavier dollar coin works extremely well in any quarter coin drop that I've converted to dollar coins.

In my experience, I really don't see a need for high priced, multi-coin drops in today's or tomorrow's laundromats. A simple drop that takes the dollar coins and rejects everything else is sufficient.