Podcast Episode 61 Discussion Post

[Jordan Berry]

Hey guys! Thanks for checking out the Laundromat Resource Podcast show 61. My hope is that it prompts some healthy discussion that helps propel our industry forward. With that said, I would love to hear your take on the industry, your opinions on the topics I brought up, and your thoughts on how we move forward from here. Let’s chat about it here!

[Jamie Jensen]

I think a big issue with the distributor model is that the manufacturers give too much leverage to the distributors. If you don’t get good service, response, or communication from a particular distributor, we can’t go to one outside our area. The manufacturer won’t let us purchase from a distributor outside our area. The manufacturer is more interested in taking care of the distributor than us, the customer.

I agree with you that organizations like CLA can be beneficial, but they could improve advocacy regarding distributor protections. As a result, I’m not renewing my membership with the CLA.

Forums like the Laundromat Resource and Facebook groups are bringing more laundromat owners together so hopefully, this will improve as we form more of a cohesive community.

Everyone came out of nowhere at some point in their career. You’re asking questions that many want to but are not. You’re an organizer and a doer. We need more voices like yours. Keep shaking up the establishment.
If they don’t like what you’re doing, that means they know that their model is outmoded and needs change but don’t want change because it means more work or loss of power/influence/money for themselves.

[Stephen Dougherty]

Jordan,

Another great podcast with tons of interesting points raised. Thanks for potentially putting yourself in the hot seat to get discussions on these issues started.

RE Hidden equipment prices:
It will be interesting to hear how the manufacturers and distributors rationalize the fact that they keep new equipment pricing so well hidden. Distributors might be able to argue that they are forbidden from publishing prices by the manufacturers,, but it’s hard to imagine what excuse the manufacturers can come up with.

I don’t think we can expect the manufacturers to publish prices unless they are forced to. It literally took an act of Congress to get car manufacturers to post their sticker prices.

The CLA publishes surveys of all sorts of industry data. Where are the surveys of what owners are paying for new equipment in different parts of the country?

Perhaps there should be a forum where laundromat owners can post the prices they are paying for new equipment. It would be very educational to see both “list prices” and more importantly, what sort of discount off of list price distributors are offering to laundromat owners.

Stephen

.

[Jordan Berry]

Yeah, you’re right about that. The point about manufacturers forbidding prices from being posted is troubling. I fear it’s going to take drastic measures to advocate for individual operators….

[Jamie Jensen]

Stephen, it would certainly be interesting to see what happens if owners were collaborating on pricing. I’m sure there is a wide range of what people are paying prices relative to the whim of distributors.

One difficulty is the limited manufacturer choices for equipment. Consolidation has given them too much market share and too much control through their sales channels. We as owners have too little real choice and therefore purchasing power to go elsewhere.

I do think it would be great to share prices. It could be one way we get more control.

We could also learn who the good distributors are. Though that doesn’t give much leverage since the manufacturers protect their distributors.

JJ

[Jordan Berry]

Yeah, Jamie, I think that’s a good point about the manufacturers doing owners a disservice with the current distributorship model. I think there are a few players that have the ability to change things in order to benefit owners and no one has stepped up to do it. It’s what prompts me to ask the question, “Who’s looking out for owners?”

I appreciate your input and encouragement! Love hearing your voice on the topic.

[Jamie Jensen]

Jordan, the answer to your question is you and others like you. Giving people a forum to voice their concerns and frustrations is a huge part. It should be the CLA, but many organizations lose their way. It’s helpful when people like you shake the tree of complacency.

[Robert Anderson]

Fantastic episode. Agree 100% with everything you said. You were also fair to the CLA in mentioning the good that they do. Hope there is no retaliation by CLA as you are doing them a favor by offering honest feedback.

As much as I’ve bad mouthed the CLA, I was extremely appreciative of their work last year getting mats classified as essential. That said, you hit the nail on the head, the CLA is controlled by vendors. Which is fine, as long as everyone understands that. It is why they do the odd things that they do (banning discussions of machine problems, etc.) There was one guy that had a disaster with a vendor (not even a machine vendor) and all his posts got deleted. Another thing that is obvious is the slant in “reporting” in their magazine. It is almost always geared toward promoting the replacement of equipment, rather than a balanced approach.

Even warts and all, the CLA had a great forum up until they wrecked it by adding a fee to it. Result has been massive growth in the facebook groups. Duh.

Have really been enjoying your podcasts. Please keep up the great work.

[Jordan Berry]

I agree Robert, the CLA has its good and bad. But glad the Facebook groups and this and other forums are available to be able to discuss stuff a little more openly and honestly (although I did get blocked from the unofficial CLA FB group…again…). Hoping more good comes out of that episode for individual owners and operators…

[Ryan Foster]

Great episode Jordan

Information is power.

The more you/we push this topic and grow the demand for the information the CLA, Manufactures and distributors will have to change there position. They will have no choice.

Jordan keep doing what your doing. I can see Laundromat Resource becoming the go to place for everything laundromats.

If the CLA sends there goons after you let me know I have your back…haha

Laundry Con in Tampa 2022!

[Jordan Berry]

Ha! Thanks for having my back. I can roll with a Tampa LaundryCon 2022! I like that idea!

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