Former ’Nole Strikes Paydirt

By Dave McMahon | Nov 12, 2010

Dan Campbell came to Tallahassee to play football at Florida State University and never left. Thanks to his four laundromats – three of them are Wash Around the Clock stores in Tallahassee itself – Campbell has even more reason to hunker down in Seminole country for the long haul with his wife and three children. He’s also expanded his small business portfolio to include rental properties.

Combined with a fourth store, Erin’s Superlaundry in Quincy, northwest of Tallahassee, Campbell has virtually seen it all in his nearly seven years in the coin laundry industry.

How did you get involved in the coin laundry industry?

I was looking for a business that I could operate and leverage some of my time. I had been in the car wash and mini-storage business, but I didn’t really care for either of those industries. I got into the coin laundry business not really knowing what I was doing. Frankly, I got connected with a good distributor and it kind of took off from there.

Who is your distributor?

Ron Jansen and Carlos Noriega, from Laundry Pro of Florida. Without them, I’d be doing something, I just wouldn’t be doing what I’m doing now. They’ve been invaluable to me and my business.

I’ve been down that road before in the car wash business. I learned that some distributors were not necessarily everything they thought they were. I had a bit of a negative experience when I first got into the coin laundry business with a different distributor. I just wasn’t able to connect and it wasn’t a good match.

What was it that made you feel like you had found a distributor with whom you could work in conjunction?

I had muddled around for about a year after I got into the business, but after I was in it about a year, the Clean Show happened to be in Orlando, so the timing was good. I didn’t have any loyalties to anybody. I talked to all the guys and then I talked to Ron and Carlos from Laundry Pro of Florida and they said they’d be up the following week to talk to me. That’s a four-hour drive for them. They started working with me that day. At that point, I only had one store.

When did your stores open?

The first was in 2004. I opened two in 2006 and another in 2008.

What attracted you to this business?

I really don’t know initially. I’m an opportunity seeker. I’ve been through a few different business models and didn’t enjoy them. Shortly after I got into this business, I liked it. I enjoy the interaction with people, getting to know folks on a personal level. It’s a captive audience, and I enjoy being there in the store and getting to know people. And providing them with a service they need.

What are the keys to a successful self-service laundry business?

Location, location, location. And equally important, in my opinion, is a strong relationship with your distributor. I think it’s important to find a distributor with experience in the laundromat business. Chances are they’ll give you the direction you need. If you can find a distributor that’s willing to tell you not to buy because it doesn’t make sense, that’s the guy you want.

And finally you need a willingness to know that you don’t know everything and a willingness to provide people with what they want. I’m far from knowing everything there is to know about owning coin laundry stores. But you can never learn too much.

What are some of the hot-button issues for laundry operators in your area?

Utilities, utilities and utilities. We’re on a municipality’s utilities, so we don’t get the benefits of competition. We’re at the mercy of the municipality, and traditionally it’s one of the highest counties in the state of Florida in terms of utility rates.

Anybody who gets into this business and doesn’t expect utilities to be front and center as an expense is in for something. All we are is a utility provider. That’s what we basically are. I try to offer a superior product and better service. But you’ve got to balance your vend price with your customer service to the point that, at the end of the month, you hope you have enough to make it.

We operate with such a high demand for utilities. We’ve had a 30 percent increase in the natural gas rate. For most businesses, that’s not a big deal because they’re not using much. For us, it’s a big deal. Money that would otherwise be going to debt reduction or employee bonuses now goes to the utility bills. In a town like this, you’re at the mercy of the municipalities. Don’t get me wrong, they do a good job with their services. I can worry about it or try to grow my business. I choose to do the second one.

What major trends are you noticing in this industry, particularly in your marketplace?

I don’t see any particular trend. Everybody is doing their best to compete with the economy. People don’t have as much discretionary income. The trend you could say right now is survival.

What is the biggest concern you hear from the customers in your area?

The fact that a lot of them are in the process of learning why the bigger equipment is better to use. Our failure to educate customers properly leads to that. The more we educate them, the less they complain about it. We work hard to make them feel at home doing something that they hate doing.

What’s the greatest technological advancement you’ve seen since you’ve been in business?

The remote-view camera system. It’s a great tool that allows someone with multiple stores or other businesses to keep tabs on the business while you’re away. I have it in all four stores.

Do you have a business philosophy that guides your decisions?

Treat every customer as you want to be treated. It’s as simple as that. If you came here to do laundry, how would you want the place to look, the machines to work, the attendants to treat you? It’s the golden rule.

Specific to your market and region of the country, what are your thoughts on vend pricing?

I’d like to have a higher vend price, and probably could because our facilities are pretty nice. I really connect with my customers and I know that they’re struggling, too. But I’m comfortable with the vend prices. I don’t think I’d feel comfortable raising prices and driving away our lower-income customers. People are struggling, pinching pennies. I want them to look at my business and know that we provide a good service at a fair price. If I keep my customers happy, it’s a win-win.

How do you view attendants and their training?

It’s vital. How can you expect them to do what you want them to do if they don’t know how to do it? That’s an area where we are always looking to work on our methodology – how do we get attendants at the stores all doing the same thing. It’s an important thing that’s probably overlooked industry-wide in a lot of cases.

Do you believe in advertising and marketing for coin laundries?

We do believe in advertising. Most stores in this area do some form of advertising. I’ll try different things. I can’t say I’ve found the perfect marketing tool yet, and when I do I’m not going to let you know! Exposure is important.

In your experience, when a coin laundry fails, what is the most common reason?

Poor management and unrealistic expectations. A lot of people get into this business – and I’ve seen it in the car wash business, vending machines – and think all they have to do is buy it and collect the dough. That’s a tough lesson to learn in this business.

With the stores that fail, management fails to recognize the business they’re in. They spend all this money to get in the business, then they don’t spend any money to promote it or keep it going. I hate to see any small business fail. I’m a small-business advocate. Us small guys, we’re fighting. You’ve got to have that attitude.

Personally, what’s the biggest mistake you’ve ever made in this business?

There are too many to list. Probably buying two stores in the same month and trying to implement my style into both of them. Secondarily, going over-budget on my newest store was a lesson learned. But we survived and are stronger for it. You make mistakes and learn what not to do. That’s how you get better.

What was your experience with the store you opened in 2008?

It was the first time we ever did a store from the ground up. It was a fascinating education. By that I mean I learned a lot, and it was expensive. We built a beautiful store, about 6,200 square feet with 60 washers.

From a business standpoint, what goals are you looking to accomplish in the next 12 months?

The most important thing I’m doing now is streamlining my processes. Instead of running around, I’m being more efficient in my daily schedule – getting the attendant training better, getting the systems in place, working on growing the business.

What advice would you give a new store owner just getting into this business?

Really, really look at the numbers before you buy a store blindly on a pro forma. Any pro forma can say anything you want it to say. Owners get caught up in seeing numbers and saying, “This store can do eight or 10 times more than it’s doing when I buy it.” Six months later, they’re out of business. It’s not cheap to put in a new store. You’ve really got to look at the numbers. I like to believe that all distributors have your success at heart. You need to feel confident and comfortable with them. If all they’re trying to do is sell you equipment, you need move on. I’ve seen so many guys not pay attention to the numbers and what it’s going to take.

Also, look for markets where there are opportunities. I go into areas sometimes where it seems like there are 37 laundromats in a six-block area. There’s enough out there for everybody, but you’ve got to be smart. Find areas where you can serve a base of customers.

How have you done that in Tallahassee?

We form a triangle around the Florida State and Florida A&M University campuses. It’s a fairly densely populated student area, but we get a good mix of customers. We’re not solely dependent on students. They’re a great part of our business and we love our students. But our demographic is similar to everyone else’s – good, hard-working people who don’t have washers and dryers or are smart enough to realize the time and utility savings of a laundromat.

Your website, tallahasseelaundry.com, seems to be an effective avenue for letting customers know everything about your stores. How has your Facebook page taken off?

We’ve had it for probably a year, but I just started doing more with it a month or two ago. It takes time. I think our customers enjoy the posts. It’s too early to see what it’s meant to business, but it’s free and it’s not very time consuming. There’s no opportunity cost involved with doing it. The price is right and, theoretically, the potential is unlimited.

One post I put on there was about a guy who came in with 23 trash bags full of laundry. He did all of it in two hours.

In your market, is the coin laundry business still a good business to get into?

In this market right now, I don’t know. This would not be a great market to get into for a new store, especially with the utility rates. I think this town is getting to capacity. Now there are some markets nearby, and I’m eyeballing opportunities. None of them are in Tallahassee.

From 2007 to 2009, the utility rates kept increasing to the point where now it’s like, “Holy cow!” As a percentage of gross, it’s a killer – not because of inefficiencies but because of the rates.

But I love the city, and I love living here. It’s hotter than blazes at times, but it’s a great place to raise a family, and that’s what motivates me.