COINMACH SERVICES CORPORATION PROPOSAL FOR LAUNDRY SERVICES€¦ · · 2013-12-11Proposal 3a ! COINMACH SERVICES CORPORATION PROPOSAL FOR LAUNDRY SERVICES OVERVIEW CoinmachServices!Corporationis!please!tosubmit!this!proposal!in!support!of!Property!Management’s!

Proposal 3a

COINMACH SERVICES CORPORATION

PROPOSAL FOR LAUNDRY SERVICES

OVERVIEW Coinmach Services Corporation is please to submit this proposal in support of Property Management’s goal of improving tenant satisfaction levels with your laundry center at Key West apartments. We understand that to meet your tenant’s needs, the laundry center must not only be problem free, it must exceed their expectations. To achieve this, the laundry center at Key West apartments needs to provide tenants with a state of art experience that makes the routine of completing their laundry enjoyable. The good news is that Coinmach is uniquely qualified with the resources to make that happen.

The Objective

Need #1: Provide a state of the art laundry experience to your tenants while providing sufficient commission checks to cover the cost associated with operating the laundry center.

Need #2: Install state of the art laundry equipment that: receives quarters with minimal jamming of coin slots; provides accurate meter readings that cannot be changed; ensures the security of the coin boxes by installing metal guards.

Need #3: Improve the overall management of the laundry center by responding to service issues within 24 hours, ensuring the accuracy of coin collections and by handling refunds in an expedient manner.

The Opportunity

We have an opportunity to meet all your needs while improving the laundry experience of your tenants. Laundry center system technology has improved in ways that make the routine of doing laundry efficient and enjoyable.

Proposal 3a

• Frontload LG washing machines are more energy efficient and require less water than any other washing machine on the market. This allows us to keep our recommended vend rates low while still providing enough revenue for our property owners to cover the cost of utilities, laundry center maintenance and Coinmach’s laundry services.

• Imagine your tenants accessing information on their computer or smart phone that lets them know when machines are available. Consider that technology today can also provide information on the status of their loads including alerts that let them know for example, that their dryer load will be completed in 10 minutes.

• It is also true that laundry rooms today do not require quarters because payments can be made utilizing a credit card or smart phone app. This same app, through the use of a QR Code, can be utilized to submit service request directly to a certified technician that will respond within 24 hours.

When you combine the benefits of energy efficient LG laundry machines that are water and energy efficient, with a Heartland card system and Wave Rider smart apps, you will have a state of art laundry room that will exceed your tenant’s expectations.

The Solution

Recommendation #1: Install 10 LG Front-‐Loader washing machines and 10 LG gas dryers. This combination will minimize the cost of utilities per load allowing you to keep your vend prices at reasonable levels.

Recommendation #2: Utilize Heartland card system technology to make it easier for your tenants to pay for their use of your laundry room. We can install machines that accept coin and card payments, however we recommend making your laundry room cash free to eliminate the need for quarters and security guard equipment.

Recommendation #3: Trust your laundry center service needs to Coinmach certified technicians that will ensure your laundry room is properly serviced and maintained. Their expertise and ease of access through our call center, web site and smart phone app ensure service issues are quickly addressed.

OUR PROPOSAL Coinmach has been providing laundry services to property managers and their residents for over 65 years. During this time Coinmach has been fortunate to grow and become the leading national laundry equipment services provider. We could not have become the company we are today without the support of our customers, many of whom are families that have partnered with Coinmach for multiple generations. Through these relationships and over the years, Coinmach has learned and developed the expertise to provide the nation’s leading laundry equipment service solutions.

Proposal 3a

Our Qualifications

The knowledge and resources we have acquired over the years enable us to help our property owners provide the best laundry center solutions for their tenants. Our expertise helps property owners provide laundry services that are better than those they would be able to offer on their own. Consider that we purchase thousands of machines every year enabling us to get the very best pricing on laundry equipment. We have developed a system to manage laundry centers over the years that ensures every machine is right for the location, every installation is done right the first time, every technician is certified and every collector is reliable and trustworthy with a security team to ensure they and your money is safe.

Owner Operator Option

One option you are considering is purchasing your own equipment and setting up an owner-‐operated laundry center. There are some key things you should consider as you decide whether or not you want to get into the laundry business.

Equipment: Which machines should we purchase? There are always questions about which machines are best.

Collections & Bank Deposits: Who will collect the quarters and get them to the bank? There are security issues to consider and banks usually charge a fee for large coin deposits.

Maintenance & Repairs: Who will maintain and repair the machines? Warranties may cover parts but generally do not cover labor, coin boxes or card slides. Vandalized or out of balance machines will require service as well.

Resident Requests: Who will handle refund requests, damaged clothing claims, service requests and change requests? How these issues are handled can affect resident satisfaction levels and can happen at any time.

Other Considerations: Who will handle vend increases, pay laundry room damage costs due to improperly used and/or leaking machines?

If you decide to become an owner operator, Coinmach can help. We have the commercial equipment available at great prices including washing machines, dryers and card systems. We have knowledgeable staff that can help you select the right equipment for your laundry center. We also have service and collection services available for an affordable flat monthly fee.

Partnership with Coinmach

Proposal 3a

A better alternative and the one we are proposing, is to partner with Coinmach. Coinmach will lease the laundry room space from you for a period of 10 years in exchange for 45% of the revenue generated by the machines.

Our proposed lease agreement will also include the following:

1. Coinmach will pay for and install 10 new high efficiency LG front-‐load washing machines and 10 new LG dryers.

2. Coinmach will also pay for and install a Heartland card system. 3. Coinmach will also pay for and install security guard equipment, if necessary. 4. Coinmach will provide all of the related laundry services (installation, collections &

repair/maintenance) for your Key West laundry center at no cost. a. Coinmach will install the laundry room equipment on an agreed upon date within 30-‐45

days of a signed agreement. b. Coinmach will schedule sufficient collections, make deposits and change vends. Vends

will initially be set at $1.50 for a wash and $1.50 for a 45 minute dry. Vend rates will be adjusted annually to reflect changes in the Consumer Price Index.

c. Coinmach will monitor collections and ensure that any theft or vandalism issues are identified and addressed through monthly security checks.

d. Coinmach will maintain and service the machines through our team of certified technicians with repairs completed within 24 hours.

e. Coinmach will clean vents and update signs in the laundry center as needed. 5. Coinmach will return 55% of all monies collected each month to Property Management via a

check or through electronic deposits. 6. Coinmach will carry $12,000,000 of liability insurance on the laundry center at Key West. 7. Coinmach will provide web tools and smart phone apps that enable residents to monitor

machine availability and their laundry loads. 8. Coinmach will handle resident requests for refunds, service and payment for damaged clothing.

When you consider what Coinmach is offering and our long-‐standing reputation as a leading service provider in the industry; we think you will agree that partnering with Coinmach as your laundry service provider is the better choice.

Timeline

Once we have your approval to move forward based on this proposal, we will write up the lease and provide it to you for your review and signature. Once we have received a signed copy of the lease, we will order the new equipment for your laundry center.

• The LG machines are shipped to us from South Korea and will arrive at our warehouse within 3 weeks from the date ordered.

• The Heartland card reader equipment is shipped to us from Tennessee and will arrive at our warehouse within 2 weeks from the date ordered.

Proposal 3a

Once the equipment arrives at our warehouse, we will contact you to set up an install date. Depending upon your schedule, installation should be completed within 30 – 45 days from the date of signing.

KEY CONSIDERATIONS LG ENERGY EFFICIENT MACHINES As an exclusive provider of LG washers, Coinmach is leading the way towards the future of green laundry. LG frontload washers have the best water and energy consumption ratings. LG frontload washing machines utilize 64% less water than commercial top load washers (12.9 gallons versus 36.7 gallons), which reduces water costs. They spin clothes faster at over 1,000 RPMs for maximum water extraction, reducing water content in clothes and drying time, which lowers your utility costs. These best in class machines utilize the first belt free direct drive technology, which makes them whisper quiet and more dependable. They have the industry’s largest tub capacity at 4.06 cubic feet and largest door opening at 15.7 inches so there isn’t any need for your residents to go to the Laundromat for blankets and rugs. In addition to being designed to be the best commercial laundry equipment, LG washers and dryers are also attractive with a high-‐end stylish design that will appeal to your residents.

UTILITY COST CALCULATOR One of your requirements is that the revenue sharing check provides you with the money you need to cover the cost of the laundry center utilities, keeping the laundry center clean and still make a profit.

Utilizing the Laundry Cost Calculator from the Mr. Electric web site, we estimate that the utility cost per load, for one wash and one dry combined, will be approximately 50 cents. We have set the vend rates at $1.50 for a wash and $1.50 for a dry or $3.00 per load. Your share of this revenue will be 55% or per load, approximately $1.65. After utilities and janitorial services, you should expect to clear $1.00 per load. With 108 apartments completing an average of 8 loads every other week, your profit on the laundry center is expected to be $1,728 per month (108 X 16 X $1).

Laundry Costs Calculator (excluding Soap) Washer Type Top-‐Loader Front-‐Loader Top-‐Loader Front-‐Loader % Hot/Warm/Cold? 33% each 33% each 33% each 33% each "Cold" wash temp? (not heated) (not heated) (not heated) (not heated) Incoming water temperature 57oF (14oC) 57oF (14oC) 57oF (14oC) 57oF (14oC) Water Heater type Gas Gas Gas Gas Dryer Type Electric Electric Gas Gas Cost of electricity (per kWh) 25¢ 25¢ 25¢ 25¢ Cost of gas ($/therm) $1.264 $1.264 $1.264 $1.264 Cost of water ($/1000 gallons) $4.68 $4.68 $4.68 $4.68

Proposal 3a

Loads per week 8 8 8 8 Cost per load, washer 0.34 0.19 0.34 0.20 Cost per load, dryer 0.83 0.77 0.33 0.30 Total cost per load 1.16 0.95 $0.66 $0.50

WAVE RIDER LAUNDRY SYSTEMS

Coinmach installs WIRELESS Wave Rider laundry systems for our credit/debit card operated laundry amenities. There is no need for the property to set up an Internet connection in the room as we use a wireless controller that communicates via cellular signal. Wave Rider also includes a smart phone app that is provided at no additional cost to residents. If they download the app on their smart phone they can set up an account, load funds, monitor machine availability, and pay for their laundry. In addition, they will be able to check the status of their wash and dry loads how much time is left and even add additional drying time remotely, if needed. This system also provides text message notification when a machine finishes its cycle.

GUARANTEED SERVICE LEVEL

Property Management wants to ensure that service issues are in a timely manner to ensure the continued satisfaction of their residents.

Coinmach makes it easy for your residents to submit a service request. In addition to our call center that is available 7-‐days a week and our web site, Coinmach also has a Service Request App. The service request app enables your property managers and residents to quickly submit instant service requests to Coinmach via their Smartphone.

Once a service request is submitted to Coinmach utilizing the Service Request App, on our website or via our 7-‐day a week Call Center, they are dispatched immediately to a local Certified Technician. Our Certified Technician have an average of 10 years experience and are ready once they receive the service request via their Blackberry. They will respond to your service requests within 24-‐hours!

Proposal 3a

SUMMARY

Coinmach is ready to partner with you to ensure your residents at Key West have a state of the art laundry center they look forward to utilizing. The laundry service solutions we have developed over the past 65 years make us uniquely qualified to meet your needs. They include state of art energy efficient machines that will generate enough revenue to cover the cost of utilities. Our service package includes a well-‐trained installation team, certified technicians that provide excellent service, 24-‐hour response times, qualified collectors and security personnel. Our team will handle the laundry center so you don’t have to and we will exceed your expectations. Please call us so we can begin the process of making that happen for you today!

Proposal 3a

References

Services Proposal (Business Blue design) – Templates – Office.com. (n.d.). Retrieved from http://office.microsoft.com/en-‐us/templates/services-‐proposal-‐business-‐blue-‐design-‐TC102911896.aspx

Robertson, K., (2012, July). 7 Killer Steps to Creating a Kick-‐Ass Sales Proposal. Retrieved from http://www.eyesonsales.com/content/article/7_killer_steps_to_creating_a_kick-‐ass_sales_proposal/

Bluejay, M. (2013, April). How much does it cost to run a washing machine? Retrieved from http://michaelbluejay.com/electricity/laundry.html-‐washing machine cost per load–ask Mr. Electricity

20 Reasons to Consider Leasing Laundry Equipment with Revenue Sharing vs Owning your own. (2012, Sept.). Retrieved from http://aaxonblog.com/2012/09/13/20-‐reasons-‐to-‐consider-‐leasing-‐laundry-‐equipment-‐with-‐revenue-‐sharing-‐vs-‐owning-‐your-‐own/

Proposal 3a

Marc Jalbert Regional Vice President Coinmach Services Corporation 9 Weatherly Dr. Clayton, CA 94517 December 10, 2013 Bob Moore General Manager Property Management 10405 Granite St. Suite H San Francisco, CA 94508 Dear Bob, Thank you for meeting with us at the Key West apartment complex to review the laundry center and discuss your laundry service needs and expectations. Based our conversation and with your specific goals and objectives in mind, we have developed the attached proposal. The proposal provides Property Management with a state of the art Coinmach laundry services solution. We would like to lease the laundry room from you for 10 years and will provide all services required to run the laundry center including 24-hour response times. We will collect the revenue and pay Property Management 55% of the proceeds, which will cover the cost of the utilities required to run the laundry center. As part of this proposal, we will pay for and install new LG washing machines and dryers that are water and energy efficient. They will be supported with a Heartland card system that includes web and smart phone app technology. This technology will make it easy for residents to pay for and monitor their laundry. This new state of art laundry center will exceed the expectations of your residents and lead to greater satisfaction with the Key West apartment complex.

Proposal 3a

We look forward to meeting with your next week on Monday, December 16th to review the proposal with you. If you have questions that we can address prior to our meeting, please call me at (415) 544-6578. Thank you again for allowing us this opportunity. Sincerely, Marc Jalbert (415) 544-6578

Proposal 3b

Tuesday, December 11, 2013 Sample Student Profit Factor 855 Market Street San Francisco, 94112 Mr. Andres Rosario Pampa Tech 331 El Camino Real San Mateo, CA 94402 Ref: Factors contributing to low job satisfaction and team building.

Dear Mr. Andres Rosario:

I enjoyed talking and learning about Pampa Tech. Enclosed is a consultation proposal which describes our services called Management and Organization Behavior. Management and Organization Behavior proposals are well suited to organizations, like Pampa Tech, to address issues such as low job satisfaction and poor team building among employees. It is also ideal for organizations to motivate managers and employees, and a well-structured proposal is a great place to start.

I look forward to working with you on this valuable project. I will contact you in a couple days to answer any questions you may have. In the meantime, please do not hesitate to call me if I can be of further assistance. I can be reached at 123-456-7890.

Sincerely,

Sample Student Consultant Profit Factor [email protected]

Pampa Tech Management and Organization Behavior Dec. 10, 13

Page 2 of 9 Proposal 3b

Pampa Tech Consultant Project

By

Profit Factor

855 Market Street San Francisco, CA 94112

December 10, 2013





Table of Contents

Executive Summary ..................................................................................................................................... 5

Pampa Tech Background ......................................................................................................................... 5

Symptoms ................................................................................................................................................ 5

Goals of the Consultation ............................................................................................................................ 5

Phase One – Diagnostic ............................................................................................................................... 5

Fridays Meeting ....................................................................................................................................... 5

Phase Two: Data collection & Analysis ........................................................................................................ 6

Method .................................................................................................................................................... 6

Phase Three: Feedback ................................................................................................................................ 6

Method: ................................................................................................................................................... 6

Cost of the Project ....................................................................................................................................... 7

Phase 1: Diagnostic .............................................................................................................................. 7

Phase 2: Data Collection & Analysis ..................................................................................................... 7

Phase 3: Feedback ............................................................................................................................... 7

Term and Conditions .................................................................................................................................... 7

Appendix ...................................................................................................................................................... 9

Employee Survey ..................................................................................................................................... 9



Executive Summary

Pampa Tech Background

At the end of 2005, Andres Rosario started his own business MegaKey in Singapore, with only two engineers. In January 2008 he moved his business to America and named it Pampa Tech. Pampa Tech engineers design software that focus on improving industrial automation for manufacturing plants. Today, Pampa Tech has grown to twelve employees. There are seven software engineers, one mechanical engineer, a secretary, and two contractors.

Pampa Tech generates most of its revenue from consulting services and a small portion from software products. Since 2008, Pampa Tech has serviced contracts with brand name companies such as Chevron, Toyota, Western Digital, and Tesla. Mr. Rosario’s motto has always been, “mouth to mouth; a good job done sells better that a marketing plan”. Pampa Techs’ success relies on its engineer’s performance by going to the customer sites to develop new software and improve their current manufacturing software applications and machines.

Symptoms

Mr. Rosario began to feel uncomfortable with his business and the way in which he was managing it. He was always been proud of the fact that employees seemed to enjoy their jobs and took pride in their work. But, that seemed to change. People were careless, and there were lack of team work. He is concerned about poor team building and individual performance because it affects the productivity, profit, and growth of the company.

Goals of the Consultation 1. Validate and specify the primary indications and root causes of potential issues that may

affect low job satisfaction and team building within the company. 2. Recommend and propose to Mr. Rosario clear and feasible solutions.

Phase One – Diagnostic

Fridays Meeting Profit Factor, visited Pampa Tech on Fridays, when the firm has its weekly meetings in

order to identify potential issues. Mr. Rosario told us that when he started the Friday meetings four weeks ago, his objective was to get each employee engaged in goal setting. Unfortunately, discussions and conflicts have been back and forward and any goal was set in place. Profit Factor



will meet with the owner of Pampa Tech and its employees during their weekly meeting to do the following:

1. Observe the dynamic of the group, how they communicate and work each other. 2. Observe no verbal communication and body language. 3. Identify task roles during these team meetings. For instance, recognize who member of

the team is the initiator, the elaborator and the encourager.

Phase Two: Data collection & Analysis During this instance Profit Factor will distribute surveys over surveymonkey.com. The

purpose of the surveys is to identify job satisfaction levels, measure employee perceptions of the work environment, detect areas of strength, and recognize opportunities for improvement. In addition, tentative schedule for interviews with each employee will be proposed.

Method

1. Each employee will receive a survey with eight questions. (Appendix I). Surveys will take no more than ten minutes to answer.

2. After analyzing survey’s result, Profit Factor consultants will tailor interview questions according potential issues detected

3. Each employee will be interviewed by one of our consultants. Interviews will be scheduled during two days, one hour each, and three per day.

4. Rank five high-priority issues and identify its symptoms, causes and how these are linked to the data collected.

5. Prepare report for Phase 3.

Phase Three: Feedback In this instance, our consultants will have identified, detected and studied symptoms and

root causes of problems that are affecting low job satisfaction and team building thus, they will be ready to recommend and present clear and step by step solutions, its strength and weakness.

Method: 1. Prepare for feedback meeting with Mr. Rosario. This session may be in private or Skype

with the participation of our four consultants. 2. Results of data collected will be presented to support of the issues founded. 3. A list of five problems derived from surveys and interviews will be described precisely. 4. Recommendations for corrective and preventive actions will be developed. 5. Proposals or commitments for "next steps" will be suggested. 6. Tentative time line may be elaborated.



Cost of the Project

Phase 1: Diagnostic

Description hours Observation during two Friday meetings. 4

Report: Analysis and preparation next phase 4 Total 8

Phase 2: Data Collection & Analysis

Description hours Surveys 4

Six interview per day – one hour each 12 Report Analysis and preparation next phase 16 Total 3 2

Phase 3: Feedback

Description hours Report Preparation 16

Feedback meeting 4 Total 2 0

Cost Total in hours: 60 hours.

Valor Hour: $120.00

Cost Total Consultation: $ 7200.00

Term and Conditions 1. Expenses are not included in the cost. 2. The proposal is confidential and only valid for 30 days. 3. Payment due n/30 days.





Appendix

Employee Survey 1. How challenging is your job?

o Very challenging o Moderately challenging o Slightly challenging o Not at all challenging

2. In a typical week, how often do you feel stressed at work? o Very often o Moderately often o Slightly often o Not at all often

3. How well are you paid for the work you do? o Very well o Moderately well o Slightly well o Not at all well

4. How much do your opinions about work matter to your coworkers? o A lot o A moderate amount o A little o None at all

5. How often do the tasks assigned to you by your supervisor help you grow Professionally? o Very often o Moderately often o Slightly often o Not at all often

6. How do you identify with Pampa Tech brand? (Choose one and explain)

o I am hard working and strongly identify my work with Pampa o I am here to perform but I don’t identify my work with Pampa o Explain__________________________________________

7. What keeps you working for Pampa Tech? o Culture o Benefits o I like the boss and company o All above

8. How much do the managers encourage participation and suggestions from employees?

o Require participation and suggestions o Encourages participation and suggestions in decision making o Does not encourage or discourage participation and suggestions in decision making o Does not allow for participation and suggestions in decision making.

Documents

COINMACH SERVICES CORPORATION PROPOSAL FOR LAUNDRY SERVICES€¦ · · 2013-12-11Proposal 3a ! COINMACH SERVICES CORPORATION PROPOSAL FOR LAUNDRY SERVICES OVERVIEW CoinmachServices!Corporationis!please!tosubmit!this!proposal!in!support!of!Property!Management’s!