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How Tariffs affected the Washing Machine Market


As always, prices of appliances go up every year but find out how and why it affected the laundry industry. 

Last year, our government imposed tariffs starting at 20% on imported washers. The washer specific tariffs were meant to target foreign manufacturers like Samsung and LG who have been flooding the market with washing machines. This was done to support American Made products but also raised the price of imported steel which raised costs domestically. 

The companies affected by the tariffs are big box retailers but the ones affected the most are the manufacturers. Stock prices were in a decline for Whirlpool in 2018. Laundry appliances make up almost 30% of Whirlpools sales. After 5 years of steady growth we are starting to see a decline

How will this affect the consumers? Aside from the obvious price increase we can also expect a delay in the delivery times for new machines.

A couple of links with more information can be found below.
https://www.nytimes.com/2019/01/25/business/economy/how-tariffs-stained-the-washing-machine-market.html
https://www.marketwatch.com/story/buying-washing-machines-dishwashers-is-more-expensive-after-trump-tariffs-2018-11-14
https://www.wsj.com/articles/lg-to-raise-prices-on-washers-after-trump-imposes-steep-tariffs-1516819656

Grand Opening New Location

2019 New Location Opening

The past couple of weeks we have been busy as we continue to settle into our new building. We are having a ribbon cutting ceremony for our new location in February and would love to share our new showroom with our customers. 

We are excited to present our customers to our new location. In the meantime we have photos of our new location with a short description for those that cant make it out.

Be on the lookout, we will be posting about our Ribbon Cutting Ceremony for the new office. It will be sometime in February, we will keep you informed as we start to cement the date. 


Before

All of the items in the photo below were fromt he previous tenants. We had set to tear out the carpet and repaintBefore
During Construction

We started constructing the new offices about 3 weeks ago. This is the office expansion we did to house our Electrical Engineers. 

During Construction

During Construction2
After

These are the photos of our new building below. The first photo is our new warehouse section where we will store machines and supplies. 

Storage

Below is one of our Electrical Engineering Stations for repairs on circuit boards and electrical components. 

Engineering

This is the photo of our Service Technicians Station, this is used to test out and repair new and used appliances during repairs.

Service

Route vs Owning Machines

Why Own Your Own Laundry Equipment instead of Renting?


Most people would think that owning your own laundry equipment comes along with added problems. They would rather not deal with having to setup the machines, repair them, collect the coins, and spend time managing it all. All of these problems are becoming something of the past with new technologies. Managing the machines and collecting the money can be handled digitally, repairs and parts are easily accessible through the internet, and pricing is competitive among dealers.

When looking into owning the appliances, there are many benefits that people overlook. Here are a few.

 BENEFIT OF OWNERSHIP

 Pros

 Cons

 Purchasing the  Appliance

Can serve as a tax write off. 

 Requires capital or credit up front to acquire

 Property Value After  Purchase

 Owning the equipment adds value to the property

 

 Managing your Machines

Managing has never been easier, with cloud based systems that allow owners to monitor the machines from their mobile device.

Management of the laundry room takes some time and energy. 

 Profits

You can set the prices how you want and keep all of the profit. With ownership there is no revenue sharing. 

 

Equipment Maintenance 

Commercial laundry machines are designed to withstand many years of heavy use. Most come with generous warranties. Some dealers offer service plans for long term maintenance.

Out of warranty maintenance or unplanned machine service can become costly depending on the issue.

 Managing the Extra Money

 Since purchasing means no longer splitting revenues - you are guaranteed a solid ROI.

  

 Repairs / Parts

 Using a reputable equipment dealer means you get fast access to parts, warranty support, and certified technicians. 

 Labor is not covered under warranties.



When looking at the argument of leasing/renting versus buying, there are also significant drawbacks to leasing that should be considered.


  • Many clients report difficulties with large route operators who offer poor customer service. 
  • For the busy homeowner or property manager, now is a great time to change from route/rent/lease to buying. Technology and mobile apps have taken all the headache away from the laundry industry. 

    Maytag vs SpeedQueen

    Maytag Vs Speed Queen
    In the past couple of weeks I have had a few customers call in and ask why we recommend the Maytag Equipment instead of the popular Speed Queen Equipment? Why is the Speed Queen brand so strongly associated to the image of your local Laundromat?

    In part it has to do with financial decisions and timing. Maytag struggled in marketing its appliances and continued to struggle until it was bought out by Whirlpool in 2006. Speed Queen has been around for almost 100 years and was an easy choice for anyone looking for a reliable machine.

    Why we like Maytag?? Price, Support, Warranty. Maytag is in most cases a more affordable commercial machine. Since Maytag is a subsidiary of Whirlpool it offers customer support from a major brand and their replacement parts are easily accessible through one of their authorized distributors. The 5 year warranty is just the cherry on the top for us, if anything goes wrong with any parts their covered by their warranty.

    Why we like Speed Queen?? Speed Queen has almost 100 years in the appliance industry and makes reliable machines. If you're familiar with the laundry industry then you should be familiar with Speed Queen. Speed Queen cant be found at your local big box store, they are sold through independent mom and pop appliance stores which may be why some people aren't familiar with the brand. Below is an article on how Speed Queen has gained an almost cult like following for its simplicity and reliability.

    http://time.com/money/4688676/speed-queen-best-washing-machine-american-made/
    Below is an article that compares both brands technically. https://blog.yaleappliance.com/speed-queen-vs.-maytag-commercial-style-washers-for-the-home

    Let us know what you think, have you had a good or bad experience with either?

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