Issue link: http://www.insightdigital.biz/i/125252
troubleshoot problems and provide immediate solutions. Schoeb spends a lot of time in the field traveling to make sure Alliance meets this goal. "We listen," he says. "If someone is going to take the time to tell us something, we need to make sure that we respond to that." The engineering staff, on the other hand, spends a lot of time trying to anticipate potential problems, and provide the solution before a new model leaves the plant. With Alliance rolling out new products at an escalating rate, the testing and troubleshooting required to anticipate those challenges has reached a frenetic pace. P r i d e i n d u r a b i l i t y, s e r v i c e trip to the company's testing lab shows the effort Alliance puts into improving the reliability and durability of its products. This is Baudhuin's arena, and the VP of engineering is determined to find as many ways as he can to break the washers and dryers his company builds so he and his team can improve the product and prevent such a failure from taking place when a customer takes delivery. Inside the lab, the technicians test everything, from how long you can open and close the door before the hinges wear out to the slime test – which tests how well the machines can handle water with Distributor financing: a competitive advantage Alliance Laundry Systems sells more than washing machines and dryers. Sure, they sell a lot of each, enough to make the company the world leader in commercial laundry equipment. But there is another component that contributes to its success: Alliance sells a proven business model, one it believes so much in that it even helps finance it. The company has privately financed more than 17,000 vended Laundromats, representing nearly $2 billion in loans to help owners purchase their equipment for their operations. Losses have been quite low, says Mike Schoeb, Alliance Laundry Systems president and CEO. "This is a cash business where the only variable is the operator. We can give confidence to investors and ourselves that the store will be successful." The company has not always provided financing, but Schoeb says that over the years, Alliance management determined the model could be more effective than traditional methods for financing. "Because we have confidence in the business model, we can approve a higher percentage," Schoeb says. For distributors such as Nick Luzecky of KeeWes Equipment Co. in Springfield, Mo., that's a competitive advantage that helps him sell more washers and dryers. "A lot of deals are won or lost on financing," Luzecky says. "They are selling a business model rather than just equipment. They make it easier for me, the distributor and the customer." w w w. i n s i g h t o n b u s i n e s s . c o m Listen to Alliance Laundry Systems President and CEO Mike Schoeb talk about the company's unique ownership and profitability. high levels of suspended solids – to intentionally running dryers until the lint starts a fire. Other sections of the lab test computer controls that regulate utility use, mix detergent solutions or communicate with other machines, or provide the owner with up-to-the minute details of how a machine is operating. Many of the new machines have more than 100,000 lines of code. In addition to providing important data on the longevity and reliability of the machines, the tests also highlight potential trouble spots for the engineering staff to work at correcting. "One of the things we strive for is to have an answer to your questions as soon as you call," Baudhuin says. "A customer does not have the time to wait for us to duplicate a problem. They need an answer now." Nick Luzecky appreciates that dedication. A former banker who bought an Alliance distributorship three years ago, Luzecky says his company has relied upon Alliance Laundry Systems' Speed Queen washers and dryers since 1988 to provide for vended and on-premise laundry operations in Missouri, Arkansas and Oklahoma, as well as selected counties in Kansas and Illinois. Luzecky, the owner of KeeWes Equipment Company in Springfield, Mo., describes the technical support provided by Alliance as "fantastic." He appreciates that Alliance tests to improve the lifetime of its machines, which means he can recommend them to customers knowing the machines are both reliable and efficient. More than that, he knows the machines will improve his customers' bottom line. "They are buying the most dependable and efficient machine out there," Luzecky says. "It controls the inputs that make the machines do what they do. Not only will it be reliable and efficient, but it will be profitable." M a y 2 013 • Insight | 27