Not just Competition...

[chslaundry]

JPM didn't lose its own funds, and none of its traders are personally liable for the losses, because it was using depositor funds to trade (as opposed to making loans), which the Volcker Rule is supposed to prevent.

[Howard]

Originally Posted by chslaundry

JPM didn't lose its own funds, and none of its traders are personally liable for the losses, because it was using depositor funds to trade (as opposed to making loans), which the Volcker Rule is supposed to prevent.

The Volcker rule is pure BS. This was a trade using the companies own funds also. Further the company made money - there was no NET loss. The government is the one that needs JPM not the other way around. These major banks are what lets the government play with interest rates. I am sure if allowed JPM would rather walk away from the government and provide depositors deposit insurance on its own and have nothing to do with the government.

Watch out what you ask for in government regulation because next thing you will find is they will start telling you how much you can charge for a wash and how many gallons of water you must provide per wash.

[JamesD]

Howard,

Once again you are right on. The one thing you don't want to hear, "I'm from the government and I'm here to help!".

As a former JPM employee with intimate knowledge of these things, I can tell you for sure that the public and our government should have no part of this issue. This was proprietary trading (i.e., using company funds) that went awry. The company is still VERY profitable and no one in the press mentions the billions that they make each quarter. This was not a rogue trader or some deep-seeded conspiracy. It affects only the company's shareholders who are mostly aware of the risks that are taken by a multinational trading company.

Unfortunately for the trading head, it happened at a bad time for the company. The government, the media and the "99%ers" are looking for any excuse to call for increased regulations of the banking industry.

It goes back a ways, but if it wasn't for J.P. Morgan (the man and the company), the Fed would not exist and the country would not be as prosperous as it has been for the last 100 years or so.

[DaveLevenson]

"It's not a sin to gamble and win... it's only a sin if you gamble and lose"

--Sky Masterson in Guys & Dolls

[Sudds]

Originally Posted by MrMachine

Chad and Larry,

I agree 100%. It's a different ballgame now.
We need to trim our expenses so we can offer both an exceptional laundromat as well as great prices to the few customers that are still around.
This means we will be working harder and making less which is pretty much what every businessperson in America must do now to survive.
We will be fixing our equipment much more often due to the greater turns per day due to the lower vend prices, and we will be working on thinner margins so we damn well better know how to keep our costs down as well.

We will also be spending more time and money on upkeep because I know from experience that when a mat does a lot of volume, it can get "ratty looking" real fast.

In this current market, our competitors who cannot give the public BOTH a beautiful well-run Laundromat AND great prices will eventually go under.

This thread has totally digressed. Getting back to the convo, some of you owners have benefited making good money on the backs of the people that need our stores and equipment, with little reinvestment or give back to those customers or the stores.

Paul is right, time has to be spent repairing, maintaining, cleaning, sprucing up the business, along with taking advantage of utilitiy savings whenever possible. These are all things that I've been doing at my mat and tell the guy that is doing my maintenance while I continue to work in the PNW.

In the 3 years that I've owned my little mat, I've built up my customer base while creating some loyalty. We pride ourselves in keeping the place clean with no or very few machines out of order. The goal is to keep everything running and we've done that.

I upgraded ALL of my lighting interior and exterior to T-8, getting rid of the energy hogging lighting and replaced the small window unit A/C to an energy efficient A/C unit resultng in a more consistent electric bill.

We make it a point to check all of our drains on a regular basis and go after and repair any leaks in an effort to control the water usages.

The regular customers that know me now help the new customers in how to use the machines and are quick to tell them that I will not burn anyone and stand by my little busines.

In the interim, my maintenance guy has begun to perform repairs at other mats. A few days ago we were talking about how some of the local owners do such a poor job or running their mat due to a variety of reasons ranging from distractions, time constraint issues, inability or unwillingness to know the business, communication barriers, or just plane ignorance.

The store he was at had 7 machines out of order, dirty moldy soap dispensers, crusty gaskets, dirty smelly machines, stains on the floor, locks missing on about 4 dryer lint trap drawers. My guy tried to tell the owner to replace the locks thus be able to seal lint trap area. The guy said no. He offered to clean the drain valves and explain how it could benefit his utiliteis, the guy said no. The list and the story goes on but I surmise you guys get the point.

As mat owners, if we want to remain competitive and survive we have to spend the time in our mats or have the right people in place to do it for you. We have to give back to the customers, treat them with dignity and respect, repair and maintain our machines etc.....

My .02 and is what works for me. It's all up to us as owners if we want to make it. because you know nobody else will.

[silver56]

Originally Posted by Sudds

In the interim, my maintenance guy has begun to perform repairs at other mats. A few days ago we were talking about how some of the local owners do such a poor job or running their mat due to a variety of reasons ranging from distractions, time constraint issues, inability or unwillingness to know the business, communication barriers, or just plane ignorance.

As mat owners, if we want to remain competitive and survive we have to spend the time in our mats or have the right people in place to do it for you.

Great observations. I was just doing some wash in a nearby 'mat as I scout out all of them in my potential ownership area and what I saw I think is typical of what has been going on in the industry.

This particular 'mat was built on spec by a distributor (of course) in 2008 and sold to the current owner. Nice 'mat, about 4000 sq ft, Huebsch equipment, and a card system. I believe this 'mat ended up putting at least one and maybe two other nearby run-down 'mats out of business.

Flash forward four years later to today and what do we find? Still a nice, big, busy 'mat but the signs of deterioration abound. Machines out of order, place was messy with trash all over the floor. The one attendant working was busy with WDF business and pretty much ignoring everything else. Tables and some chairs broken and the place was cluttered with every type of vending device you could imagine.

I think a lot of people who get into the business quickly realize that you have to physically be there often to keep the thing running well. Most people don't want to do that so after a couple of years they get bored and start to ignore the basics.

So it really is being disciplined with taking care of your 'mat that is the winning strategy.

[jh]

Originally Posted by silver56

I think a lot of people who get into the business quickly realize that you have to physically be there often to keep the thing running well. Most people don't want to do that so after a couple of years they get bored and start to ignore the basics.

How can one get bored?! There's something new happening every day. Just now I removed the circulator pump of the water heater system because there was loud noise inside the pipes. My attendant screamed at me, "John, there are problems with machines. Customers say there's no water!" "What customers? there was none when I came downstairs." "A lot of people came in when you turned off the hot water." "Great.." Wednesday is the slowest day but just not today!

[MrMachine]

Originally Posted by jh

How can one get bored?! There's something new happening every day. Just now I removed the circulator pump of the water heater system because there was loud noise inside the pipes. My attendant screamed at me, "John, there are problems with machines. Customers say there's no water!" "What customers? there was none when I came downstairs." "A lot of people came in when you turned off the hot water." "Great.." Wednesday is the slowest day but just not today!

John,

That's the Murphy's law of the laundromat. Whenever we start a project, it'll get busy as hell.
Works better than advertising!

[Sudds]

Originally Posted by jh

How can one get bored?! There's something new happening every day. Just now I removed the circulator pump of the water heater system because there was loud noise inside the pipes. My attendant screamed at me, "John, there are problems with machines. Customers say there's no water!" "What customers? there was none when I came downstairs." "A lot of people came in when you turned off the hot water." "Great.." Wednesday is the slowest day but just not today!

I don't think that I would call it being bored. Probably more disillusioned over the fact it is more work and trouble than the either thought, bargained for, or were led to incorrectly believe by whoever sold them the dream.

[Adamski]

Originally Posted by Sudds

I don't think that I would call it being bored. Probably more disillusioned over the fact it is more work and trouble than the either thought, bargained for, or were led to incorrectly believe by whoever sold them the dream.

Sudds,

I agree. Newbies buy their first laundromat with a head full of big plans. "This is just my first one ... I'll have 7 built in the next 7 years." They think they've found the perfect business because there is little inventory to control, not too many employees and they can do it while maintaining their day job too. However, as the weeks and months roll by, they become overwhelmed, under-rewarded and totally disillusioned. Once that happens, the place has no where to go but down.