THE ECO LAUNDRY ROOM ENERGY-EFFICIENT PRODUCTS & CONTINENTAL LAUNDRY EQUIPMENT DELIVER SOLID PROFITS FEBRUARY 2009 • by Haley Jorgensen
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THE ECO LAUNDRY ROOM ENERGY-EFFICIENT PRODUCTS & CONTINENTAL LAUNDRY EQUIPMENT DELIVER SOLID PROFITS FEBRUARY 2009 • By Haley Jorgensen A ‘green’ coin laundry in Canada is turning heads. At 900 square feet, the highly profitable, postcard-sized laundry is not only environmentally friendly; it’s the source of much hoopla across Canada. Owned by partners Brant Kelso, his wife, Web site. The Dragons’ Den is a televi- “I’ve developed businesses before and Natasha Bick-Kelso, and Paul Bichler, The sion show that airs in Canada. During the was looking for a ‘green’ business,” he Eco Laundry Room recently debuted on program, an entrepreneur puts up a busi- said. Bichler’s partners, who own YouTube and may soon be aired as part of ness for sale by pitching it to five venture rentals with vended laundries, knew BBC’s The Dragons’ Den television show. capitalists, who might decide to invest. from experience their profit potential. “We were accepted for the show and Thus, the partners developed a unique Energy-efficiency Unparalleled taped in July,” said Bichler. “On air, you eco-niche. Anchored by eco-friendly, A year-old coin laundry in Peterborough, describe your business and try to sell it energy-conserving products and Ontario, The Eco Laundry Room is a to them by justifying its worth.” Bichler, equipment to lower utilities and improve uniquely ‘green’ self-service laundry com- who is interested in franchising The Eco profits, The Eco Laundry Room success- plete with solar tubing to heat the store’s Laundry Room concept, offered the ven- fully draws customers. water; environmentally friendly ture capitalists a 30 percent stake in the From the onset, the business met rev- insulation made with recycled pop bottles; company … enue goals.“We’ve been profitable every T8 florescent lighting; a recycled rubber It is still not definite whether or not that month since we opened,” Bichler said of floor that mimics hardwood; and energy- taped sales pitch will be broadcast. But, The Eco Laundry Room. “I expected to efficient Continental E-Series Washer-Ex- Bichler does know the result —whether be profitable, but not to this extent. We’re tractors and Drying Tumblers. The entire or not the venture capitalists accept his showing a profit of 10 percent and cash package is wrapped up in a 100-year old offer. Bichler, however, must keep that flow of between 42 and 50 percent.” building—completely refurbished—with a information secret until he knows if it will second-floor apartment occupied by one be broadcasted. The Eco Recipe for Success of the owners. Critical to profitability are the laundry’s Why A Laundry? low utility bills—making up just 12 to 13 The Dragons’ Den Why An Eco Laundry? percent of its revenue. Those numbers The Eco Laundry Room’s quick success The development of The Eco Laundry are well below the average 20-25 percent spurred its owners to publicly share the Room was driven by a desire to invest in utility costs, according to the Coin Laundry concept in hopes of franchising the busi- an industry that performs well despite a Association. “We performed better than ness and attracting investors. Bichler, the slumping economy, according to Bichler. anticipated,” said Bichler. All told, accord- partner who occupies the second-floor ing to Bichler, gas makes up three to four apartment, developed a YouTube video sales pitch about the new laundry. That video was posted on The Dragons’ Den 2500 State Road 44 • Oshkosh, WI 54904 920-231-8222 • Fax 920-231-4666 800-256-1073 • www.continentalgirbau.com percent, water/sewer makes up five to six The Equipment complete their laundry in less than an percent and electric makes up three per- But equally critical to the store’s bottom- hour—a welcome convenience. cent of the laundry’s utility bill. By paying line are its energy-efficient washers and A Broad Base of Customers less in utilities, The Eco dryers. Ray Helwig of Sparkle Solu- By delivering a quicker and ‘greener’ Laundry Room enjoys more profit. tions, a laundry equipment distributor in wash, The Eco Laundry Room suc- Concord, Ontario, worked closely with cessfully caters to couples, students, Bichler, Kelso and Bick-Kelso to select retirees and families. “We are hitting “I expected to be profitable, the laundry’s equipment mix: 10 20-pound every demographic because of how the capacity E-Series Washers, 2 40-pound but not to this extent. We’re laundry is designed.” The business offers capacity E-Series Washers and eight craved conveniences including wireless showing a profit of 10 percent dual-pocket, 30-pound capacity stack Internet, a kids’ play area, café tables, and cash flow of between 42 ExpressDry Dryers. magazines and snack machines. It’s also Rather than install top-load washers, and 50 percent,” says Bichler. heavily monitored by the owners thanks which use from 30-40 gallons of water to a security system that allows them to per load, the laundry features 20-pound view the laundry from remote locations capacity E-Series front-load washers, Developing a ‘Green’ Laundry via the Internet. The laundry unlocks at which use around 13.4 gallons of water The process of developing an environ- 6 a.m. daily, automatically. per load. ENERGYSTAR qualified, the ma- mentally friendly business involved And despite a gas rate hike of 30 chines use single-phase power reworking a historic building, according to percent, The Eco Laundry Room hasn’t and plug into a regular appliance outlet. Bichler. “We ripped the building down to raised vend prices. Some customers are The Continental washers are also the brick, reframed it and sprayed in foam convinced that doing laundry there is less freestanding, making them easier to insulation made of recycled soda bottle expensive than doing it at home. “I have install and service than hard-mount plastics and soya-oil extract rated at R30. an accountant customer who priced out washers. They offer high-speed extract It’s just like regular spray insulation but the cost of a washer and dryer and figured of up to 354 G-force and superior energy- environmentally friendly,” he said. “Our it was easier and less expensive to do efficiency. Most traditional hard-mount solar tubes provide all the hot water and laundry here,” said Bichler. “They decided washers extract at between 70 and 150 have turned out to be more efficient than not to buy a washer and dryer for their G-force, according to Helwig. “These we first thought. The flooring looks like house.” washers remove significantly more water wood, but is partially recycled rubber. It’s An entrepreneur at heart, Bichler by comparison, and in turn, cut resulting durable and holds a warranty of 15 years. maintains he got into the laundry busi- time dry-time by as much 50 percent,” All the lighting is T8 lighting for special- ness for its potential. If The Eco Laundry said Helwig. ized energy-efficiency. Some lights are on Room continues its performance, he said By shortening the time it takes to dry motion sensors so they aren’t running all that he and his partners will realize a full a load, customers complete laundry more the time. The washroom lights are also on return on investment in less than five quickly and the store uses less gas—a a motion control and we put a brick in the years. The partners plan to open more win-win, said Bichler. “Most of our cus- toilet tank. It uses half the water that way laundries across Canada, all mirroring tomers can wash in 26 minutes and dry and is cheaper than purchasing a low- their flagship eco-store. in 24 minutes.” That way, customers water use toilet.” The Eco Laundry Room is a uniquely ‘green’ laundry complete with solar tubing to heat the store’s water; environmentally friendly insulation; T8 florescent lighting; a recycled rubber floor that mimics hardwood; and energy-efficient E-Series Washer-Extractors and Drying Tumblers..