Although employed as an electrical sales engineer when \nthe Great Recession hit, Adrian Najera knew that the best long-term \nstrategy for job and income security was to invest in a business that he\n could own, build and profit from. He originally thought about pursuing \nreal estate, but in looking at other business plans and learning more \nabout the vended laundry business, he discovered that opening a \nlaundromat with the right equipment distributor was the ideal option. \nSince Adrian had no prior experience owning a business, he liked the \nfact that he could lean on a team to partner with that would guide him \nthrough the process of opening and running a laundromat \u2013 which is what \nled him to Speed Queen\u00ae.<\/p>\n\n\n\n
In May of 2009, at the height of the recession, Adrian opened Mi \nLavanderia \u2013 which had previously been a different laundromat business \u2013\n in Elgin, Illinois. He recalls that he couldn\u2019t have done it without \nthe support of his equipment manufacturer and distributor. Adrian knew \nthat launching his own business would take a great leap of faith. Not \nonly was the general economy in shambles, but the laundromat he acquired\n was in foreclosure and equipped with outdated machines, many of which \ndidn\u2019t work at all. Additionally, Adrian had no prior laundry \nexperience, no existing customer base and he was competing with the \nthree largest laundromats in Elgin \u2013 all of which were within a \nhalf-mile radius of his store. It seemed like an impossible combination;\n however, he discovered that it was possible with the support of the \nright distribution partner; the most efficient, reliable and advanced \nequipment; an opened-minded and creative approach to driving revenue; \nand a whole lot of hard work. He watched as his laundromat overcame all \nof these obstacles to become a successful, profitable business.<\/p>\n\n\n\n
Because he was a newcomer to the coin laundry business, Adrian needed\n a distributor who would do more than just sell him equipment. He needed\n an industry partner who could provide expert advice, guide him through \nfinancing, recommend the right equipment mix and provide post-sale \nservice and support. He found that partner in Speed Queen distributor \nCoin-O-Matic.<\/p>\n\n\n\n
Given the economic conditions in 2009, it was unrealistic to gut the \nstore and completely refurbish it before reopening for business. In \nfact, it took Adrian five years to totally reoutfit his store with 32 \nnew Speed Queen washers and 40 Speed Queen dryers. He worked with \nCoin-O-Matic to strategically stagger his investment in a mix of \nmachines, ranging from standard top-loaders all the way to 100-pound \nmodels.<\/p>\n\n\n\n
Coin-O-Matic also partnered Adrian with Speed Queen Financial \nServices (SQFS), the company\u2019s in-house finance operation, to provide \nhim the specific loan terms and conditions that would work for his \nparticular store.<\/p>\n\n\n\n
\u201cWith SQFS, there is much less paperwork and hassle than working with a bank,\u201d Adrian says.<\/p>\n\n\n\n
Perhaps even more importantly, SQFS specialists understand the \nlaundry industry, the life cycle of a store, and the process and \ntimeline for building a laundry business, which was invaluable to a \nnewcomer to the laundry industry.<\/p>\n\n\n\n
The new equipment not only generates more revenue for the business, \nit also saves money. Since upgrading to efficient Speed Queen washers, \nAdrian\u2019s water bill is approximately $200 less per month than it was \nwhen he started. He uses the Speed Queen Quantum\u2122 Gold advanced control \nsystem to tailor selections, such as pre-wash, and apply automatic \ndiscounts. For example, the first 13 minutes of dry times are free, and \nhe offers early bird specials for morning customers and additional \ndiscounts on Wednesdays and Thursdays to drive store traffic on his \nslower days.<\/p>\n\n\n\n
During the five years he spent renovating the laundromat, Adrian \nneeded to continuously increase his daily cash flow in order to \nsuccessfully operate his store and build his customer base. Finding a \nway to generate sales outside of machine operation was critical to \nkeeping his store viable during those early years. He started by selling\n drinks and snacks, detergents and softeners, but that wasn\u2019t enough. It\n was Adrian\u2019s grandfather who suggested he also sell frozen popsicles, \nas they were popular among Adrian\u2019s friends and family, many of whom \nvisited his laundromat. Adrian checked with the City of Elgin, as every \nmunicipality has its own regulations, and he found that as long as the \ntreats were non-dairy, he could sell them without a food license. They \nare extremely popular and sell well all year round.<\/p>\n\n\n\n
\u201cI have to maximize profits on every square foot of space available \nin my store,\u201d Adrian says. \u201cThe chest freezer where I store the \npopsicles is only three-feet by two-feet, and it generates more income \nthan the arcade games.\u201d<\/p>\n\n\n\n
About a year after the store opened, Adrian noticed an Avon catalog \nsomeone had left behind on a folding table and thought, \u201cmany of my \ncustomers are women, maybe we can also sell cosmetics.\u201d Soon Adrian\u2019s \nmom, who is also his business partner, became an Avon representative, \nand Adrian became a Mary Kay and Jafra representative. Three months \nlater, the store was selling an average of $1,000 per month in \ncosmetics, and Adrian had earned the nickname \u201cPrince of Jafra.\u201d<\/p>\n\n\n\n
It was a customer who suggested yet another very profitable revenue \nstream \u2013 international calling cards. She commented that with Elgin\u2019s \nlarge Latino population, there was undoubtedly a demand for those who \nwanted to call their family members who weren\u2019t in the U.S. Adrian began\n offering the cards and, within a few months, the store was selling \n$2,300 worth of calling cards per month. When card sales began to \ndecline in 2013, Adrian became an authorized cell phone dealer. His \ncarrier offers international calling and now his store customers can \npurchase a phone, a plan and make their monthly payments all through the\n store.<\/p>\n\n\n\n
Offering these extra services to his customer base added value to \nAdrian\u2019s laundry operation, gave him extra streams of revenue and kept \nhis clientele coming back.<\/p>\n\n\n\n
Adrian saw a return on his investment in three years and had \ncompletely overhauled his store by year five. He has a growing customer \nbase and is attracting new clientele through social media and marketing \nto local businesses and community groups. He acknowledges that he was a \nrookie when he started and knows that Coin-O-Matic and Speed Queen are \ntrue partners in his accomplishment.<\/p>\n\n\n\n
\u201cThey were with me every step of the way,\u201d Adrian says.<\/p>\n\n\n\n
He is looking forward to continuing his successful relationship with \nCoin-O-Matic and Speed Queen as he looks for the right property to open \nhis next store.<\/p>\n\n\n\n
Global Public Relations Manager, Alliance Laundry Systems<\/p>\n\n\n\n