Part I: The Recession & Its Impact on the Industry

Tax Internet Purchases - Not Laundromats

Laundromats provide a necessary service to those who have no laundry facilities at home. Generally, these are the poorer families in our society. They are often struggling to make ends meet and cannot afford to pay Sales Tax on washing their clothes. At the same time, middle to upper income families who have their own laundry equipment within their home would not be charged Sales Tax when they wash their family's clothes.

Washing clothes is an activity that promotes health and well-being. It is not an optional service like washing a car is. All families must be treated equally when they perform this necessary task. Taxing only the poor makes a Sales Tax on laundromats a regressive tax and that goes against everything America stands for.

Larry Adamski

sales tax on coin op laundry in PA

I've owned self serve car washes in PA for over 20 years and paid my share in sales tax with most other states exempting the tax. Our state wants to lower the overall sales tax, but repeal and include 75 other industries namely coin op laundry. From my prospective, sharing the burden of sales tax over more industries would help me if the state lowers the overall tax by 2%. We all have to pay our fair share one time or another. If I did not have to pay sales tax for the past 30 + years it would have been great. In our businesses, we are not able to add the tax to the purchases, we would have to take it on the chin for each dollar earned. That has been the car wash industries stance for years as it being an unfair tax. I do not see the tax for my industry ever "going" away. Eventually, I think most transactions will include some kind of sales tax in the future whether we like it or not.

Sales tax

I agree 100% on the sales tax. It forces small business owners to charge more to re coop. I own a carpet cleaning business and am forced to charge my customers 7% sales tax in Iowa. I'm not selling any product at all, just labor. I pay taxes on all of my equiptment and when I purchase chemicals, I pay sales tax on them as well. Then at the end of the year I pay income tax on top. Seems like double dipping to me from Iowa Uncle sam.

Terrance

I only take one exception

I totally agree with your article except for one point "You must have a large store." Our store is small (1100 square feet) but we are full of practical ammenities and services our competition doesn't offer. Even a small laundromat in a small town can be profitable if you listen closely to what your customers want AND then give it to them. I was amazed at the number of customers who thanked me for getting comfortable wood benches instead of the traditional fiberglas chairs. Not only are the benches more attractive, customers like the relaxed feel they give our laundromat.

By the way, I don't think of my store as the High Price Leader. I have always asked my employees to remember that we are the Value Leader. If a customer asks us about price we ask if they are happy with our equipment and service. 99% of the time the issue of price is forgotten.
www.selfsuds.com John M. Brown

Focus on the Positive

Our laundromat is just 3/4 mile from a college that offers resident students free laundry. Lure them away with the convenience of full service (at a college friendly price), give away free pizza one night a week (we do this for about $20 and the response is excellent). Promote the fact that students dont have to 'hang out in the basement' to do their laundry and not having to wait for a machine. Imagine 400 teens using 12 washers and 12 dryers. We provide full service WDF at a discount to the college athletic teams. It's a great way to highlight what you can do for the college, community and students. Think how many ads you could buy in the college paper (most college papers offer cheap ads) for the cost of a lawyer and protracted legal battle. www.selfsuds.com

John M. Brown