Norman;

Why do hookups cost so much in some places? I have talked with water district representatives in many parts of the country and have a few answers. It comes down to water availability. This is more than just a matter of if there is enough water in the reservoir. There have to be systems to get the water to the point of use, and other systems to carry the waste away. Many of these people point out that their districts covers a lot of ground. Some of the areas they serve are older parts of a city, while other areas may be new installations with new utilities serving the area. Some areas have small older mains that cannot sustain heavy flow or high pressure. Other areas are served by larger newer pipes. Some areas have low water demand, while others are straining to keep up with current usage.

A few have taken the time to explain to me that what they do is develop maps that outline zones that define the challenges there. So that an installation in an underdeveloped zone has hookups based on one fee while those in a more challenged zone will have higher hookup fees. Some maps have as many as five zones. Some districts are so strapped overall that they just have one fee, based on potential water usage, that applies to any commercial user, throughout their district. The one thing that all of these folks have been concerned with is water usage.

The one essential to life at all levels is water. Worldwide, 90% of all drinking water is from ground water. In the US, more than 50% of the population relies on ground water for its potable water. Water is used for drinking & cooking, for irrigation, for industrial and commercial processes, for washing, for making toilets flush, and many other applications. The preservation and protection of the water table are essential issues. It is much more economical and practical in the long run to prevent contamination than it would be to try and remove contaminants from the water after it is polluted. The demand on this valuable resource is depleting the water levels in some aquifers dramatically. Indiscriminate waste of water accelerates the depletion.

It takes a lot of people and equipment to make certain that when you turn the tap, something useful comes out of it. Most of us no longer go to the well to draw water as we did a hundred years ago. We expect it to be piped to our homes, ready to use, and completely safe. This involves a large complex system of pumps, treatment plants with labs to assure quality, and a distribution network that reaches every corner of every community. And the waste water requires even more in the way of a collection network, treatment plants with more labs to check the effluent, and complex regulations as to what can be discharged where and how and under what circumstances.

Metering water usage is no longer a matter of just generating revenue. Controls for showers, or other water uses will help to limit how much is used, and how often it is used. Those who were ever in the military recognize the saying, “Get in. Get done. Get out!” as applicable. Aside from the conservation of the amount of water used, it also reduces the amount that is put down the drain. Metering is only one step. But that is what it will take to make an impact, a lot of little steps that will add up to major water savings. No single thing is creating the demand, so each step that can reduce water usage is an important one.
The need to conserve water in no longer an issue for the ecological extremist, but one with which everyone must be concerned. Hurricane Katrina has demonstrated how fragile our cities are. And the outlying areas of the Gulf coast also suffered severe damage to their infrastructure as well. Now many areas of the country are facing severe water shortage because of drought. These catastrophic disasters, combined with the extra demand that a growing population in the Sunbelt and other areas, have stretched resources to the breaking point. There are some areas that have banned watering lawns, washing cars, or even offering a glass water at a restaurant. Water conservation is a serious issue for most of us, and the need is growing rapidly everywhere.

For example, the State of Florida, in the ten years from 1990 to 2000 increased population by 25%. This is state where almost all of the water is drawn from ground water. The added demand of the population growth is putting a severe strain on their water sources. And the growth continues, with Florida adding half a million people each year. Such growth cannot be sustained and the quality of life will suffer unless water management policies and practices reflect the need to conserve and protect the water sources. And this starts with the end users recognizing that water is valuable, and each individual must be aware of how precious it is.

Other states, which are already straining for water, such as Nevada, Arizona, Idaho, Utah, Texas, and Oregon, are seeing 3% to 4% annual growth in population. Figures for growth and water usage could be cited for state after state. The point remains, where will the water come from to support and sustain this growth? 

Today we stand on the pinnacle of a precarious pyramid of technology. Some are barely aware how delicate and tenuous our situation may be. Others have no awareness at all, living as if there were no concerns, as if things will always be as they have been. They take for granted that when they flip the switch, the light will always come on. When they turn the tap, the water will flow. When they turn up the heat, the furnace will kick on. Any disruption to these services is considered a personal assault on their world and someone had better do something about it and do it NOW! But they do not wish to know how it all works. Or what it takes to make it all work. Just so it works.

Historians and archeologist have found the remains of civilizations all over the world that ceased to exist when all the local resources were exhausted, or when changing weather patterns caused drought. We have gone from a world population of three billion people to more than six billion people in less than fifty years. The amount of all resources on the planet is the same. Except that we now demand twice as much from those resources. Or even more, as the population today demands more of everything than ever before.

We are regaled with tales of the glories of Rome, the city that ruled the known world for nearly a thousand years. The city that led armies of conquest all over the Mediterranean world and left its stamp on the modern world in language, civics, architecture, and many other areas of life. But without the aqueducts, none of this could have happened. The water carried into the city on these magnificent structures made life in the city of Rome possible. Without that water, the city dried up – literally! It went from more than a million inhabitants to less than fifty thousand in only a few years. It took another thousand years for civilization to once again implement public water works.

If we continue to ignore the issue of water conservation, we too can dry up and blow away. Our quality of life has left us spoiled. We have developed certain expectations. We have had a century of unparalleled progress in services. The nation has been wired. The cities have made major investments in water systems. But they are constantly looking to find more resources to satisfy the demand of the citizens, reaching further and at greater expense to find the water our people need. But to continue and to maintain our quality of life requires that everyone do what they can to minimize usage and reduce waste. What have you done to help the situation? Remember, If you are not a part of the solution, then you are a part of the problem!
For a better idea of how serious the problem is, try typing into your search engine “how to conserve water” and examine a few of the over two million pages that pop up!

 Norman; 

This is a really sore point with me. Whoever came up with this term was a P. T. Barnum type of low life snake oil salesman. Let us look at this a bit. To get milk from a cow, you have to put quality feed in one end, and then clean up the mess that comes out of the other. You have to milk them regularly and routinely. They have to be kept healthy to be productive. They need to have shelter, water, and some serious care. In other words, the cow is a lot of work!! 

So where do so many people come off saying that a laundromat is a “cash cow”? As if all you had to do was go in and rake in the money once in awhile. Perhaps that is the problem with the perception of the industry by those on the outside. Those who are hard working and conscientious, about running a clean, smooth operation, that serves a community need, and make a bit in the process are being short changed by so many who dash in, thinking they can invest a bit of loose change, ( and of course always wanting to do it with someone else’s capital! Heaven forbid they put any of their own assets at risk!), make a lot of money and then get out. Leaving the wreckage behind them. 

A famous Sci-Fi writer, Robert Heinlein, had a common theme recurring in many of his works. At one point, a character had a banner displayed over his castle with the following:

TANSTAAFL

There Ain’t No Such Thing As A Free Lunch!!

Truly words for the wise to live by. Nothing is free. You get what you pay for. There is more to the value of a transaction than the sale price. Oh, you may get a bit of a break now and again, but nothing you can count on to happen when you need it. If you want a good deal on machines, expect to pay for it. Put too much pressure on your supplier for “freebies” and you know the cost will show up somewhere down the line. Either in hidden costs, or a lack of service & attention when you need it, or just in the lack of quality. But be sure that somewhere, somehow, there will be an accounting. 
This is true of any endeavor, but it seems that laundromats get a lot undue bad press because of this. There really are those who think that they can open a laundromat, that it will run itself and they can just drop by now and again. There are way too many like that already!!

I know I am preaching to the choir here, after all, the fact that you do participate in coinwash.com already indicates that you are taking a pro-active stance in the operation of your business. But you have no idea how frustrating it is to deal with the daily calls of those who do not treat their laundry as a serious business. For those of you who do, take a bow!! You have worked for it, and deserve one!! And I applaud each of you!

Norman;

 We have all seen the prices of fuel jumping about daily. This is out there where we all see it and live with it as we go about town, and very much uppermost in our awareness. But did you know that you are paying, or soon will be paying much more for other items. How much did you last washer or dryer cost you? When you go for new ones, count on substantial increases. How much do parts cost you? And how much have they gone up recently? Count on seeing the prices go up even more. It is easy to say it is greed. But the actual fact is the cost of materials has skyrocketed way past what gasoline has done.

The manufacturers are just like you. They are in business to make a buck. But consider, how much of an investment have you made in your facility to support your operation? Now consider what kind of investment had to be made to build a major fabrication and assembly building, staffed with machinists, assembly people, and design staff to support it? Most of these are higher priced specialized trades requiring years of experience that also command high salaries. Along with high salaries come the attendant costs of Worker’s Comp, health insurance, paid non-productive time (Vacations, Holiday pay, and so forth), Payroll taxes, etc. I once worked with the Human Resources department at a manufacturer to determine the full cost of an employee. At that time (20 years ago!) a department manager made $35,000 a year. However, when all the other factors were considered, that manager’s total cost to the company was over $52,000 per year.

Now, manufacturers have recently seen other costs escalate as well. Costs which you may not see directly, but they do have a major impact on you and the future of your operation. The global demand for raw materials has put amazing intense pressure on the finite resources that are available. There is only so much copper, iron, nickel, chromium, and other materials that can be mined in any one year. And of course, fuel, and other oil based products have seen similar market demand.

Brass or any other alloy with copper in it has gone up four times what is was in December of 2005. In eighteen months, raw brass strip has gone from less than $1.35 pound to over $4.32 and is rising at about 10 cents per pound per week. In production there are always what are called “clips”, which is the material left when you stamp out a part. We now get twice as much per pound for our clips as we paid for brass 18 months ago. Die cast components have almost tripled. And that, with the cost of brass has caused the cost of locks such as used in service door locks and coin boxes to triple. We do not use a lot of stainless steel, but you know your machine makers do. That material has tripled in the same time frame. Plain old cold rolled steel had more than doubled. And so one with just about any other material you wish to name.

All of this means that machines that cost you $800 two years ago now go for about $1100 or more. And most of this is in the materials. The same goes for parts. Motors are mostly copper wiring. So quadruple that cost. A $100 motor will now run closer to $350 or more. Switches, wiring, plumbing supplies, all have seen increases. And this has caused a cascade effect into other materials. When copper plumbing components go up, it creates a demand for alternatives, such as PVC or PEX, and these are petroleum based products, subject to crude oil pricing and now have extra demand made on them. So guess what, they go way up too!

What does this have to do with you? It means that any monies you budget for capital improvements and maintenance must be increased to cover the added costs. Where does this money come from? From all the quarters that go into your machines.

And you already are stretched pretty thin. So all you can do is bump your vend prices along with the change in times. ( I will pause now for the usual screams to the effect that you CAN”T raise prices!!) But you must if you wish to survive. Do some basic math. If you now do 100 turns at $1.00, and change prices to $1.25, and do only 80 turns. You WIN! The gross revenue will be the same. The wear and tear on your machines, and the usage of utilities will be 20% less, so your bottom line actually increases. And if the turns do not drop, then you have added funds for the capital/maintenance accounts.

If you raise your prices and it allows you stay in business, while the fellow down the street does not raise his prices, and goes broke when he cannot afford to keep the machines in shape, any losses will come back. And maybe more! I know that this is traumatic step. One that is hard on you, hard on your customers. But look around you. What do you see when you go the grocery? What do you see when you gas your car up? What do you see when you set down to pay your water, gas, and electric bills? And even more importantly, what do you see when you shop for new machines or replacement parts.

Brace yourself. It isn’t even close to be over!! So get yourself prepared to cover your future needs now!