CCI Drive Time
CCI Drive Time is a practical, no-fluff podcast you can listen to between sales calls—real conversations about CCI products, the laundromat business, and how to sell smarter while you’re on the road.
CCI Drive Time
Service Builds Sales: Russ Arbuckle on Trust, Technology, and Industry Consolidation
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After more than 40 years in the commercial laundry industry, Russ Arbuckle knows that lasting success is built on more than equipment and price—it is built on service, trust, and doing what you say you are going to do.
In this episode of CCI Drive Time, Steve sits down with Russ, president of Wholesale Commercial Laundry Equipment, to discuss his journey from an inexperienced service technician in Philadelphia to leading a successful distributorship in Alabama. Russ shares how his technical background shaped his approach to sales, why reputation remains one of a distributor’s most valuable assets, and how great service can create opportunities that last for decades.
They also explore the unique challenges of serving rural and urban markets across the Southeast, changing customer expectations, the growing demand for payment technology and remote management, and the pressure distributors face from aggressive pricing and industry consolidation.
Russ also reflects on his decision to sell the business to EVI Industries, what has changed since the acquisition, and how the company has preserved its local relationships and customer-first culture while becoming part of a larger organization.
Whether you are an experienced distributor or just entering the commercial laundry industry, this conversation offers practical insight into earning customer trust, competing on value, and building a business designed for long-term success.
Welcome to CTI Drivetime, the podcast for vended launder distributors. I'm Steve with CTI. Using your drivetime to cover laundromat trends, payment systems, and practical topics that you can use in the field. Today I sat down with Russ Arbuckle. He is the president of wholesale commercial laundry equipment, serving the Alabama and Southern States market. Had a great conversation. I've known Russ for many years. He's a very service-focused individual. Has a very interesting backstory. It started in Philadelphia for years and then ultimately finding his way down to Alabama. We discussed the differences between those markets. He also sold his company a couple years ago to EVI Industries. And so we chatted a little bit about what that looked like and kind of how that has impacted his way of doing business. So interesting to learn about that. So with no further uh introduction needed, here is Russ Arbuckle. Ross, how are you today? I'm well. Steve, how are you? I am fantastic. Thank you again for uh joining me here today and participating in this uh kind of sharing of uh experiences, I guess is how we talked before I hit start, you know, just kind of sharing my desire to help distribution get stronger and better and learn from the best practices of the best distributors. And I've always considered you to be one of those. And so again, thanks, thanks for joining me today. Um, you know, I I I you and I have known each other a long time. Uh you know, we've worked together through CCI, we served together on the CLA board about the same time. So uh, you know, we've had the opportunity to uh to kind of uh be um uh together in many different situations. But I'd love to start by just going back in time a little bit and uh tell me, you know, if tell all of us kind of how you got in the industry, because I know you're in Alabama now, but you weren't always in Alabama.
SPEAKER_01No, no, I was in the in Philadelphia and it's it's it's it's actually a pretty funny story in in retrospect. But uh so I'd I had always worked in um blue-collar type job, you know, production mechanic, and I got hurt in an industrial accident and um couldn't go back to work. Um and so I didn't go to college out of high school. So I said, well, you know what? Let's, you know, I I I'm a mechanical kind of guy. Um and I see engineers do things that make no sense because they're not on the street hands-on. So I decided I was gonna major in engineering. So I um started that and I was young, married with a new baby, so quickly ran out of the Capitol to continue that education. Um and I was working part-time for a friend of mine, and he introduced me to one of his customers who was a um multi-store owner um who had just purchased a um Speak Queen domestic parts and service company. And his goal was to move that into the commercial side. Um, and so he hired me as a service tech. Um, and you know, I had zero experience, obviously. Uh I had never fixed a washer or dryer before, but I figured my mechanical background would would work and help me get through it. So uh, but it was funny. He was the kind of guy, he was a genius, he was really um way ahead of his time. And just a quick backstory, he came up with a remote payment system that he had in 19, the clean show, I think, was New Orleans in 1985.
SPEAKER_00No kidding.
SPEAKER_01Yeah, he had a spiral vending machine keypad, bolted into a standard change maker cabinet, and then he used drain motors because everything was coin slide. He was drained motors to activate it.
SPEAKER_00No kidding.
SPEAKER_01Yeah, yeah. He was way ahead of his time. Um but anyway, one of the things that um when I went to work for him, I never got a salary or an hourly wage. I got paid a percentage of what I billed.
unknownOh.
SPEAKER_01So um, you know, and you couldn't find anybody to do that today. I was gonna say, well, yeah. Now, that being said, you know, the the percentage that I got uh for the billable stuff was pretty good. I could make a good living. Of course, in the beginning, not knowing what I was doing, a lot of recalls that I didn't get paid for. Um so when you're not getting paid, you tend to learn that stuff pretty quick. I was gonna say, you know, it worked out. I became fairly proficient as a technician. Um so he progressed me into uh replacement equipment installations. I've got some stories there, but I'm not gonna get into that now. Um new store construction and installations, and then eventually into sales. And um, you know, I probably eight years in with this guy, he gave me some ownership, an ownership position. So, you know, the hard work, the dedication, and and all of that paid off. So yeah, it was uh it was I got some stories, but uh again, I'm not gonna get into all those. So that's that's kind of how I got into the business.
SPEAKER_00Wow, and and you know, then and got you know I hear so often this idea of people being so generous with their time. You know, you talk about this kind of I'll call him a mentor. I don't know if he was a mentor or if he was just a how you how you how you frame him. It's like, but then not just being a mentor, but then helping you launch your own thing a little bit at the same time, giving you some ownership, giving you this opportunity, and that's something that uh we just can't ignore. That that's we continue to pass it on, you know, and keep pass on this, and that's part of what we're doing here is passing on what we learned and helping helping kind of the next generation. So then how did you then end up leaving Philadelphia for Alabama? How did that all transpire?
SPEAKER_01So had an opportunity with Continental um to take over some distribution down here. Um you know, they basically, hey, are you interested? And I was like, yeah, it's kind of the Northeast was getting harder and harder to do business between competitors, regulations, costs for lease, you know, square foot leases, and so and and everything that I'm looking at is saying, all right, the growth is in the southeast. I mean, there's no question that's where it's gonna go. So uh that's what I did. I said, okay, you know, let me um let me give it a little thought. Um I sold the distribution up there. Um and it was funny I talked to probably a half a dozen different industry folks uh that uh that I knew, um, and they all told me, not all, but most of them told me I was crazy. You know, you're you're a Yankee from Philadelphia, and you're gonna move to the the heart of the deep south. Um so you know, but I I obviously had confidence in myself, and of course I'm the eternal optimist. Um, but I also knew that you know you put in the work, um, you persevere with what you do, and you deliver on what you say you're gonna deliver on. Um so that's what I did. And it's you know, fortunately, here we are, shoot 24 years later. Um, yeah, we've we've done pretty well. Yeah, the Yankees from Philly did okay.
SPEAKER_00That's awesome. You know, and I'd be I I'd love to hear your perspective on what what was what's really different about Philly versus the market. You know, you're more than just Alabama. You've got you've got a pretty big area that you cover, but you know, the South versus this kind of very urban uh environment. What did you notice right away that was different, whether it's about the demographics or the build-outs or the what was what stood out?
SPEAKER_01A combination of all of it, actually. And then, you know, when I first came down here, a lot of mom and pop war uh stores, uh predominantly top load, you know, they might have two or three thirties and maybe a giant 50. Um and you know, convincing them that you know that was you know from 20 years ago, 20 years ago, right? Um so and then the demographics obviously are different. You know, when we would run them up north, it would be you know, half mile, mile and a half when we are in an urban setting. I I mean here I have locations I'm running out, and I do everything drivetime now, by the way. I think it's a better indication of where that core customer base is coming from. Because radius is don't account for railroads and rivers and bridges.
SPEAKER_00Yeah, right.
SPEAKER_01So drive times. Yeah, yeah. And and and the drive time map shows you, you know, it's not just a circle now, right? It's this jagged thing depending on speed limits and lights and all of that. So so I've always done drive times. So now, I mean, I've got locations that we run a demographic and we're going out 30 minutes.
SPEAKER_0030 minutes? Yeah, the closest. Okay.
SPEAKER_01Well, and and uh those folks are driving 30 minutes to get to whether it's the bank or the supermarket or whatever.
SPEAKER_00They're making that drive anyway. So you want to be where they're going, whether it's to get their supplies and and everything else they got to do to do business. So there's obviously some real rural areas that don't have anything anyway, so they're used to the the road time.
SPEAKER_01Yes, exactly right. So um, you know, so that was that was one of the big differences, um, you know, the demographics. Um the people are um and and I've said this since I've been here, you know, uh the they obviously know I'm not from around here. Um but you know, they give you the opportunity to present yourself and then either you perform or you hang yourself. So yeah. Um so that's that's been kind of neat. Um the the Southern hospitality is a real thing. Um you know, my brother actually just moved down yesterday. Um kidding. Yeah, yeah. He he actually I've got some property outside of Montgomery that I've got 46 acres, and he bought a place, it's a dirt road right down the road, and that's my little getaway decompressed spot. Um and he just he's just amazed, you know, you you say, and he's that guy anyway, to say, hey, how you doing and here they're gonna stop and tell you how you how they're doing. You know, you're gonna hear it.
SPEAKER_00Yeah, it's just uh casual passing, yeah.
SPEAKER_01Yeah, exactly right. So um yeah, so that's that those those are some of the main differences. Uh I think uh I know with my employees, um different from up there. Uh, you know, they're dedicated to what they do, they care about what they do, um and it makes a difference, right? Sounds a little refreshing, in fact. Oh yeah, big time refreshing. Yeah, yeah. I know Deborah, my my bookkeeper and carry my GM, they're both 15 plus years a little better. Wow. So yeah, it's that's so that's a big difference still, right? The labor pool in my mind anyway is better here than all that. Yeah. So that's fantastic. And then the regulations are less. Are they? It's noticeable. If I go into well, I'll just give you an example, like that property that I have. I'm on what they call county land. So I put up a 40 by 50 metal building that I'm doing a barn dominion in, and no permits for nothing.
SPEAKER_00No permits at all. You just build what you want.
SPEAKER_01When you're in the county, when you're in the county, it doesn't matter. Um, in fact, I built a store for a Vietnamese couple locally here in in Rainbow City, which is a fair-sized town. But this lot that they were on was county. It wasn't Rainbow City and it wasn't Gadston. It was literally, they're in Rainbow City, but it's county land. So, and uh one of the competitors um saw what we were doing and called the city inspector. And the city inspector comes out, where's your permits? And he's phrasing out. I said, Need to go back to your office and look at the flat map. This is county land. I don't need a permit. He never came back. Oh wow. Yeah, he got it done. So wow that that's a big difference. Um, I mean, normally, and so you go to the city, the town, whatever, you let them know what you're doing, uh, and they're happy. They're happy to see some progress and you know, some additional services for their residents, and possibly some jobs are gonna get created. So, and certainly for the plumbers and the electricians and things like that. So big difference. Yeah, big difference.
SPEAKER_00And so when you do have to work within regulations, so you are in there, do you feel like there is a difference in uh maybe some of the scrutinization and maybe some of the things that we fight with uh in some of the more urban markets versus these more southern areas?
SPEAKER_01Yeah, so you know, like the cities Birmingham, Montgomery, Huntsville, you know, architectural, mechanical drawings, seal drawings, all that. Yeah, yeah, inspections and all that. But um the inspectors are reasonable. Uh they're not looking to give you a hard time. They, you know, they it's again that southern hospitality, right? As long as you're doing the rest of the thing. Yes, yep. Um, so uh, you know, that part of it is is makes it even better when we're dealing with that. And you know, most of the cities now are on uh national building code, so we all understand what that entails. Um the architects mechanical engineering is uh much less expensive. Um so that you know that helps too when you're looking at that total project cost.
SPEAKER_00Sure, sure. But it sounds like heaven, but I'm sure you have challenges too. What what are you facing as challenges? What are you seeing right now when it comes to I know you do a lot of new stores and I'm sure you do everything, but what are the challenges right now?
SPEAKER_01Um well, predominantly I mean interest rates for commercial markets rates is is is is tough. Um and you know, we we do a fair amount of new stores, but you know, when we talked about how I'm doing a 30 30-minute drive time, that means there's not a lot of people. So that means there's not a big demand for a lot of stores. Now in the in the urban areas, yeah, and and I've done them in Birmingham, I've done them in Montgomery, I've done them in Huntsville. Um but uh so that that is a challenge from a growth standpoint. Um and you know, because there's not as many stores and we have more competitors, uh it tends to be a little uh a little more fierce competition. But you know, I've always been the guy that's um I'm not going in there with the low G, you know, cheapest machine you can get like everybody else. You know, I'm leading with our GS because it's the best one out there, premium product.
SPEAKER_02Yeah.
SPEAKER_01Yeah, and and if you're gonna if you're gonna build a new store, you're not creating any new business, all you're doing is shifting it from where it's being done to right? So what are you gonna do to change that customer's habit? Because it is a habit. You know yourself, you got customers you can set your watch to. Joe's coming in seven o'clock Saturday morning every Saturday. So how do we change that uh that attitude, that habit, and get them to come to us? And and you know, pr low price isn't the way to do it because that's just stupid. Um, so you got to set yourself apart. So that's what we try to do.
SPEAKER_00Yeah. You're uh you're reading from the same playbook that I that I use too. The habit thing is huge when it comes to this chore that we we do, and what do you do to redirect the the business because we're not making anything, like you said, so we we just got to get them to do it in a better place. Um so how are you finding business? What's your where are your best channels for finding new opportunities?
SPEAKER_01Um it's it's a mix, and and you know, it's it's kind of been that way um you know since I've been into business. Of course, you know, way back then we didn't have internet, so marketing was basically you know direct mail and banging on doors. Um so now it's obviously websites. Um a lot of word of mouth. I've got you know mobile mobile store owners that are happy with the products that we provide and the service that we provide, and they're you know, they're talking to people, oh well, who'd you deal with? So um, you know, word of mouth is a good one. Uh, and then leads from the manufacturer. Um so that's it that's kind of a mix. Um I haven't done a lot of um direct mail stuff in the last few years.
SPEAKER_00We don't know too many people that have. That's a tough one to it's a that's a tough one to commit to. Yeah. Well, what we're doing is returns are so small, yeah.
SPEAKER_01Yeah, they are. But then so I have I do have one going on right now, but I'm targeting uh this is through our sports laundry uh uh brand name. So we're targeting equipment managers, and most of them I know anyway because I do these shows. Uh, but this just gets my name out there and it's not terribly expensive. Um and would I probably get it anyway? Yeah, maybe, but let's do a little something to just remind them of who we are.
SPEAKER_00So yeah, maybe make make sure that uh your name stays top of uh of mind when that project's ready to go. Um I I know in again, just knowing you for years, I know service, and you kind of started with kind of in service. I know service is a big part of what you're kind of committed to, and you know, you you really think hard about providing service. And you kind of m alluded to it as well, but I have to imagine that there's an opportunity in the service side to uncover opportunities too. Are you finding that still to be the case? You know, are you servicing outside of your own builds to and allowing you to have interactions with store owners that maybe you didn't build for, but that gives you kind of an a step in the door when maybe they're ready to do something more?
SPEAKER_01Oh yeah, uh absolutely. I mean, uh I believe this, and the the guy that got me into this industry, he always he always said that. He said, service builds sales. When you have the service customer and they trust you, they like you, you're giving them what they need. When they're looking for equipment, they're gonna you're gonna be the first guy they're gonna talk to. Um and then to me, having a service background, I can get into the techno aspects of that machine. The controls, what are the limitations? You know, what works great on the machine, what's a weak point. Um you know, so that that service side is definitely important to you know when it comes to sales.
SPEAKER_00Yeah, and I know it's always been uh a big part of how you've I think just separated yourself. And you know, whenever we've met and we've seen each other at distributor events and everything, you've always been deep into the technical conversations and trying to understand, you know, why changes are there or what changes need to be made, you know, we're having those discussions. Uh and I just assumed it had to just carry into your business as well. And having, you know, it's kind of like you know, when someone's buying a car, they want to ask their mechanic, like, what kind of car should I buy? You see all the m you see all the cars, which one's not gonna break down. I it's the same mentality here, too, right? It's like what machine should I buy? And uh, you know, you talked about leading with a high-end machine, and so you know, you you you gotta you want to promote what you know is gonna work for the customer.
SPEAKER_01Yeah. And I think that sets you apart too, not just the you know, using that, selling that soft mouth perspective um and the service side of it, whereas a lot of the other ones competitors are salespeople. Um and you know, they're they're they're good salespeople, but they may not have that technical background. And I think that that you elicit a little bit more trust when with the customer when you have that technical background.
SPEAKER_00Yeah, and you know, I don't know, are you seeing aggressive pricing in the market? Is that how they're selling or what how you can are you competing with with pricing? Because we're seeing a lot of different lines that we haven't ever seen before kind of sneak into somebody's market. And I don't we're not seeing a ton of it, but we're seeing it, and it's putting pressure on the price, you know. And I uh are you are you seeing any of that?
SPEAKER_01Yeah, so uh it and in in two ways, not just uh from a distribution standpoint, some some new uh manufacturers that have gotten into the industry. Um and then also manufacturers that are uh buying up the distributors, and obviously they you know they've they've got uh an advantage from a price standpoint. Um and you know, I've had some deals that uh did not get because of that, and that's okay. I I don't think that at the end of the day that customer's gonna get the kind of support that we're gonna provide. But that's but you understand this, right? You lose the deal, and it's like, okay, he'll find out later. You've still lost the deal. Um so you know, anyway.
SPEAKER_00Hopefully it doesn't spoil them so badly that they don't want to do another store a different way the next time around. I mean, right? I mean it's like yeah, there it's one of those things where you can say how important the service is, but until they've experienced not having it, does it then become the top of mind purchase decision factor that when they go into it? So but the pricing is important, you know, to people, it's hard to overcome that. So uh I'm assuming you use your service uh background and your sewers capabilities and technical knowledge to try to add more weight to that, maybe. Than just price alone?
SPEAKER_01Yeah, try to give them, you know, the value proposition. You're not just buying equipment. You know, you're getting our our technical background, my 43 years of experience. And, you know, to me, that just it's an added bonus that they're not necessarily getting somewhere else. Um, so that's what I try to do. It doesn't always work, not really, but you know, certainly give them my best shot.
SPEAKER_00Yeah. And do you think rep reputation is still important? You think, I mean, is that is that is that is that thing? Are you finding some of the reputation changing as maybe some of the service is lacking in some of these areas? Are you are you hearing anything in your market that that's maybe gonna the people that are willing to stick it out and continue to do the right things, is it gonna come back in their favor?
SPEAKER_01Yeah, I I I think so. I mean, I've already heard that you know, one of the manufacturers doesn't allow you to call that the store owner to call into the tech support. Um, you know, and so that they want you to go through the distributor, you know. So uh I think that that yeah, that certainly is is one. And look, 40 years ago, Steve, reputation was basically word of mouth, unless you did something stupid and we're in the newspaper. Right. Um now reputation's out on the internet, right? Yeah.
SPEAKER_00Um tell me about it. Yeah.
SPEAKER_01And and and I could tell you, especially when I'm dealing with uh new new um store owners, new um uh possible store owners, investors, you know, they're doing their homework and they're reaching out to the CLA and to other you know um manufacturers, changers, water heaters, and and they're asking that question, what do you think of this guy? Right? So um and you know, fortunately, uh, you know, we've we've done a pretty good job of building a good reputation and and I'm not gonna jeopardize that for the sake of a sale, just not gonna do that, you know.
SPEAKER_00Right. Well, I think that was actually one of the Yeah, and I think that was kind of one of the questions I was leading you towards was like, are you willing to sacrifice anything? And I think the answer is in the long if you want to be in the long term, you don't sacrifice what you know works.
SPEAKER_01No, I and and you know, I I I don't remember who said it, but uh you know, when you are willing to um violate your principles, then you don't have principles anymore.
SPEAKER_02Right.
SPEAKER_01You know, once once you compromise the principle, then you really don't have it. So yeah, I'm I'm uh and you know, whether right, wrong, or indifferent, it's the way I do it.
SPEAKER_00So yeah. Well, we've talked a lot about service, and I wanted to dig into it a little bit more, you know, and so tell me what what does good service really mean to you?
SPEAKER_01Well, you know, part of the problem that we run into today, too, that we didn't have a long time ago, you know, back in I'm not gonna go all the way back, but you know, we had mechanical timer, contactor-driven motors, and inlet valves, and that was pretty much it. So talking to the customer, you could pretty much diagnose what you're gonna need when you get on that job. And in today's world, inverters and microprocessors and all of the things that go with that, you know, uh communication cables, everything, it's really hard to keep everything that you need. Well, you can't keep everything you need on service truck. You just can't. So what we try to do is get really solid information as to what the issues are, and you know, ideally we're gonna be able to fix it first time first time out. I mean, that's the goal. That's what I consider good service, where I can get out there and get it fixed that first time. Does it always happen? No, unfortunately it does not. But and especially when you're dealing with different brands, because we service all the different brands.
SPEAKER_02Right.
SPEAKER_01So that makes it even harder from a part having a parts on hand perspective.
SPEAKER_00So then it's yeah, got it up to you. Considering considering the you know the how complicated and the machines have gotten, and you know, certainly with card systems, we haven't made it any easier with with all the all the tech that we throw on top of the already technically uh you know advanced equipment out there. But do you have you have you changed anything in the way you set expectations for store owners when it comes to service? Because you know, everybody likes to think that, oh yeah, that service guy's gonna come and it's gonna be fixed by the time he leaves. And it just maybe doesn't always work out that way. If you had to because that you mentioned something early on about your early years, is that when your new callbacks are on me, you know, I kind of got to do it. Is that still the case or are there new expectations about where service fits because of the complicated nature of all of this stuff that we're now doing?
SPEAKER_01Well, I I think you know, we we we try to set the expectations uh, you know, relative to response time and relative to being able to get the problem solved the first time. But you know, we also let them know look, I you know, this is that's what we strive to do. And we don't it's not like we're coming out there and not fixing it because we want to come back again. You know, we've got other service that we need to do. Um so when I don't get you right the first time, that means I'm not getting to the other guy than you know the next time I come out to see you. Right. So yeah, I it if we try to set the expectation. One of the things that I I do like about the new technology is the test mode functions, and I teach all of my store owners, most of them don't retain it, but I I teach all of them how to put that thing into test mode because if you got an issue, you can check every single component and pinpoint where the component problem is, and if you do that, when we come out, nine times out of ten, we're gonna be able to fix it.
SPEAKER_00You're that much closer to likely having a solution when you can finally get there with the parts and the mechanic that can knows how to change them. Yeah.
SPEAKER_01Yeah, yeah.
SPEAKER_00Um, so here's here's I mean, it's the million-dollar question. I think it comes up every time there's a distributor meeting and a gathering of minds, whether it's at the bar or at breakfast or whatever, but how how do you find good service people? That uh, yeah.
SPEAKER_01Um, I don't I don't know the answer to that question. Um you know, we we've been fairly lucky. We've got four right now, five right now. Um and we've been lucky in that uh they're all pretty they're reliable, uh they're they're pretty smart. Um got a couple of them from the computer tech savvy side that are really good. Um ideally, I mean, like HVAC guys, if you find an ex H VAC guy, uh to what we do. Um but yeah, it's it's really hard and and not getting any easier um with you know these the younger kids just you know they want an air conditioned office and make a hundred grand a year and and uh you know by the way I'm going on vacation next week, right? Yeah. Uh it's it's difficult. I don't I if I knew the answer to that, I could probably retire from this.
SPEAKER_00Yeah, right. Yeah. You're you're still involved uh because it's so hard to find uh the good people. So yeah, so you don't have the silver bullet on that yet, or you're not ready to you're not ready to share it with us, but it has always been a challenge.
SPEAKER_01Well, and look, I I mean I uh up until just a few months ago, I would go out with the guys, or if it was an issue that they couldn't get figured out, then I then I'd have to go out and and figure it out, uh, but then be able to train them and teach them as you know uh what happened and and what they should have looked for. But you still it's you know what, Steve, it's the mechanical as long as I got a little mechanical ability. Um but it it's it's the give a crap quotient that matters and and that's the hardest part finding somebody that actually cares about what they're doing and has um um what's the term I'm looking for? Not respect, but you know, wants to do it right and and wants to feel good about doing it right. Um and and that's hard harder to find.
SPEAKER_00Yeah, and I I was I was gonna ask you whether or not you would put more weight into a candidate that is has maybe doesn't have the experience in the areas that you'd want them to have, but has a willingness they gotta have a mechanic, they gotta know how to hold the right end of a hammer.
unknownRight, exactly.
SPEAKER_00But but has it more of a willingness and a concern for the customer. Is that a or uh versus maybe somebody that has got some experience, maybe even fixing laundry equipment, but just doesn't seem to really care about anything other than clocking in and clocking out at the end of a shift? I don't know, which I mean you want the guy with the experience, you want this guy to have everything, but you know, in a in the perfect world, they're they they're hard to find. So, you know, is having somebody with a lot of willingness a good candidate for you?
SPEAKER_01Yeah, and actually uh all of my guys um had no experience before at all. So they started fresh, yeah, with you.
SPEAKER_00Yeah, yeah.
SPEAKER_01And and some of them had I mean had some mechanical ability, but never really worked a mechanical job. Um you know, but yeah, they they they uh understood that you know you've got to take care of the customer, and the customer wants to feel like you're treating him right, um, you know, and and having that good attitude. So I'd rather have that guy. Yeah. I mean I I I I know mechanics and and you know, with one of our sister companies. Uh I built a store for a guy in Myrtle Beach and uh beautiful GS store and and um so I'm using some of their service guys from one of our sister companies, and the one guy he's a really good technician, but he is a prima donna. And it's like right, I can't get in into the bulkhead. He had 380s down water valves for some reason. I don't know if they got junk in them or what, um, but he he he didn't fix them because well, I can't get into the bulkhead in the I don't know if you're familiar with the Freedom bulkheads that uh Paul Petifer. Yeah, so that's what this guy has. So you could walk right down the middle. Uh so okay.
SPEAKER_00For some reason he didn't want to get a little dirty that day.
SPEAKER_01You know, if he's in the front of the machine, okay. But if he's got to get into the back, eh, maybe.
SPEAKER_00Uh how am I feeling? Yeah, yeah, and that doesn't help you. It doesn't matter how smart you are or how mechanically capable you are, but if you're not willing to do the work or you don't care enough to get the job done on that one visit versus having someone else to come out there, you really haven't gained a whole lot from that experienced technician on your team. Yeah, that's a that's a tough one. And so I I mean, now that you got you have four to five techs, I think you mentioned, it's a little easier to get a new guy up to speed if you need it, because you can kind of have him ride along with the other ones, I'm assuming. It's tough if you're a small shop and you don't have a service team. Like, how do you get those people trained? It's not easy.
SPEAKER_01Yeah, I mean, uh, you know, unless you're taking them out and doing it yourself, which is how I started. Yeah, you know, my GM Carrie, um, you know, when he started with me, that's the way it works. It's you know, with him and I and one other guy. So and then, you know, but fortunately he's obviously got a bunch of experience now, so he does a little training with him, but now we've got enough qualified guys that we can send a new guy out with the other guy.
SPEAKER_00They've got somebody they can follow and and start to pick up, pick up. That's great. Yep. Um, I'd love to shift gears just a little bit. We talked um talked about distributors getting kind of bought by manufacturers, and that's been going on for a number of years now, and we're certainly all observing kind of the industry kind of change a little bit. Um but there's other other consolidation going on, and you've been a little bit a part of that as well. And you know, curious, you know, what was um, you know, you you joined EVI. When did you join EVI? Is it been two years? 2022, okay. So you all right, so you're four years into this. Um I'm curious what you know, again, long-term successful distributor. Kind of what what kind of led you towards uh you know deciding to go with uh with the the consolidated group?
SPEAKER_01Um they had well they had approached me uh and actually so November one of this year will be four years. Uh four years, okay. So they had approached me three years prior to that. And you know, I wasn't interested. I mean, at that time I was 65 and you know, still you know, I had no desire. Uh when they came back at me three years later, um, you know, 68 years old, and and I've got um 62 when they first approached me, 65 when I sold, so I'm 68 now. Yeah. So I didn't have family, you know, you've been fortunate, obviously your dad, and then you, and now your son, which is great. I love seeing that by the way. Um and and I'm sure you're bringing them up from ground up, right? Right.
SPEAKER_02Not putting them in that good. I figured.
SPEAKER_01You grinding. Yeah. Well, that's how you learn. So um, so anyway, so when they approached me um coming on up on four years, um, I was just like, you know what, I don't have anybody else to take it over. Um and the consolidation, all the things that are going on in the industry, you know, I don't have a crystal ball, so I don't know where it's going to be two years, three years, five years from now. Um, so uh I said, well, okay, the you know, the numbers were okay. Um, so I'll pull the trigger on it.
SPEAKER_00Yeah, yeah. Anything that surprised you about the experience? Anything, you know, again, you know, not looking for any any anything specific here, but was anything that was surprised that you've joined a group that was a little bit larger than your own? I know they tend to allow the I think the distributors to kind of run somewhat the independently, but yeah, but you also there's a bigger group there too. Have you have you experienced anything related to that? Any anything that surprised you?
SPEAKER_01Yeah, so well, I mean, for the most part, they let and they call them their business units, right? And and for the most part, they let the uh business unit presidents, who in most cases were former owners, um, they let them operate it relatively the same way they operated before. Biggest difference is on the bookkeeping side because publicly traded, so that's a whole different ball.
SPEAKER_00It's a whole different thing, huh?
SPEAKER_01Yeah, yeah. Um, yeah, my my my bookkeeper Deborah, she's uh she's really borne the brunt of it, but um, you know, and then and then on the service side, um, you know, everything's done with tablets and um you know dispatching and so it's a lot tighter.
SPEAKER_00I think so they've elevated some of that operational technology there. Okay, yeah, gotcha.
SPEAKER_01Um and and one of the things that they did, they were all on um it's a Microsoft program, uh BC, I guess it's uh business something or other. And we all hate it. Um it's it's still a struggle. Uh I mean we'll get used to it. It's like anything else. You think you're doing one thing one way for a really long time and something comes along with it?
SPEAKER_00Change is hard, yeah.
SPEAKER_01Yeah, yeah. So, you know, because it's always like I used to be able to do this in the other program, but I can't do it in here. So it's it's uh that's that's been one of the struggles, but for the most part, they they they don't as long as we're performing, they leave us alone.
SPEAKER_00You let you do your thing. Have you found there be any um have you noticed the customers notice that I think sometimes as we're insiders, you know, we're we're uh you and I and all the distributors that we've known we're hyper-focused on every little nuance that changes, whether it's an acquisition or you know a machine coming out, but the the investors, the store owners, do you think that they are as sensitive to these types of transactions as maybe we feel as we are because we're so connected to it? Does it make a difference that your your Rust Arbuckle as part of you know your wholesale with commercial uh commercial equipment with EVI versus when you weren't? Do you notice any changes?
SPEAKER_01That's a good question. I uh you know, I've got several uh multiple store owners um that I had done prior to before, yeah. And uh and then during the acquisition. Um and I don't I don't think it's an issue for them. I think that um uh I'm not really sure how to answer that, Steve. They they I don't know. Honestly, they're not sure. I don't think it matters. I mean, at the end of the day, and you know this as well as anybody, when you're in in the in sales, um, you're selling yourself first, then your brand, then your company, right? Right. Or your company, then your brand. So uh I'm still selling me, uh, and I'm still selling to my company. It's just owned by somebody else. Yeah. But they as long as I can do what I tell the if I do what I tell them I'm doing what I'm gonna do, then I don't think at that point.
SPEAKER_00Yeah.
SPEAKER_01No.
SPEAKER_00The idea that you still care doesn't change just because, you know, you know, there's a there's another layer to the organization now.
SPEAKER_01Yeah. Yeah, exactly. And I think that's a good way to put it. You know, because we we still care. Um so uh and that's not going to change because of the corporate uh oversight.
SPEAKER_00Structure, yeah, yeah, right. Oh good. Well, that's good. That's it's uh that's good to hear. Um yeah, again, shifting gears a little bit again. I'd I'd love to hear a little bit more about your you know technology experiences so far. I know you've done some CCI products in the past, you know, uh, you know, you had a couple you have a couple of customers I think that are you know good nice fans of ours and they've done a good job with it. And you know, how what is your opinion of the tech? I mean, I know it adds another layer of complexity sometimes that is not always desired, and I'm fully a facing of that. But um I'm curious, do you think it's been a positive thing? And do you think it's uh been worth the extra effort and maybe even some of the extra heartache?
SPEAKER_01Yeah, no, I I absolutely I do. I mean, I think that for the store owner, it certainly makes their job easier. And and to be honest, and especially with uh, you know, not to just out CCI, but the ability to be able to program through your software saves us from doing 25, 30, 40 machines, right? So that's that that's a plus. You know, the installation side of it, yeah, that's a little bit harder, but um gotten better. We're not doing daisy chaining readers together anymore and all of that. So the the technology side of it, um yeah, if there was a downside, maybe, you know, where we customers having an issue and we're trying to figure out what it is, and we don't know if it's on the payment system side or on our side. You know, so yeah, that that adds a layer.
SPEAKER_00Um yeah, the the lines are blurring because there's we've got all these computers talking to each other now, and it's it's not like you said in the old days where there was a mechanical layer. You can see the broken part right there. He's gonna pull that out and pop that. We can't see these things quite as clearly as we as we used to in the old days. But um uh hopefully as uh all of us start, you know, all of us doing these things get a little smarter, we'll make them easier to understand and easier to troubleshoot. Um yeah, I I I I think that um you know I think that the investors are asking for these things. Are you seeing that as well? I mean, it's kind of like at this point you gotta do it. I mean, because people aren't always looking. I mean, are people still asking for coin stores? I I mean, like I maybe in your market they are, maybe they're not. I don't know. I'm curious, it feels like there's less of that, but you tell me.
SPEAKER_01A lot less asking for the coin market. Um you know, maybe some of the smaller stores um in the smaller markets, uh where where it's hard to justify that added expense for the uh payment system. Um but the the the the guy that I did in Myrtle Beach, he um he wanted hybrid and he's got all his coin boxes locked off. Did he do that? Okay from the get-go. I say I don't know why you did this. Uh you could have saved the money on the CoinMax when the coin drops, but yeah, yeah. So yeah, it was it was most almost all of the investor types, that's what they want. They want some accountability, they want um to be able to look at that remotely, understand what's going on, see if a machine's down, you know, all of those things are tied into the those payment systems, and that's what they want. So, yeah, very few. I I don't I can't imagine that I've done a coin-only store. Well, I did one two years ago outside of Montgomery, but yeah, for the most part.
SPEAKER_00Yeah, that's a that's a that's a statement in itself. You had to think about it. I saw you staring in there like trying to remember, have I done one? We in Chicago have not done one in years. I mean, I don't even I'd have to really think hard uh when the last time Andy did one. Um it's been a while. So um I think it's it's the way we we gotta be we gotta be open to it. We gotta make sure that we're we're keeping our our eyes on what the investors want.
SPEAKER_01Um I ask everybody to go I wanted to make a point to that. So again, uh my mentor that got me into this and he always told me he said, Look, you try to sell 'em what they need. At the end of the day, you sell 'em what they want.
unknownOkay.
SPEAKER_01Go ahead, I'm sorry. I just needed to throw that in there.
SPEAKER_00No, I love that because actually that reminds me of many times in my 25 years of running CCI and trying to come up with the next best feature and trying to tell people what they should buy is that at the end of the day, you can do that, but you gotta but then you have to have the option to sell them what they want. And you know, for many years, um, you know, we had only card only. I mean, our laundry card product for many, many years was the only thing we sold. And it was you we asked you to replace all your quarters, get rid of all the quarters, go card only, and we've been doing that since you know 2000. Right. But we found out, you know, maybe six or seven years into it, that yeah, I mean, that was a hard sell back then still. And but and they kind of like, well, can I just have coins and the card? Can I do hybrid? And we're like, but we're like, no, you should get it rid of your coins. But it turns out that there was a market for that. And if if we were gonna continue to be in this business, we had to not just give them what we wanted, but we had to also offer what they wanted. Exactly, yes. So it it shaped it shape that exact statement that you know that your mentor sent has shaped our our business uh to having multiple products and being able to meet the needs of everybody, you know, depending on what what direction they're going into. That's awesome. Um all right, I'm gonna ask you to whip out your crystal ball for a minute here. I know yours is all shined up and ready to go. And you know, I'm what what do you think the industry is gonna look like in five years? Anything that you see change significantly?
SPEAKER_01You know, I I I think about that a lot. Just, you know, I'm uh I'm a laundry geek, so it's that's always on my mind. So I I don't know. I think about okay, so is the next step for these consolidations gonna be store ownership?
SPEAKER_02Does that make sense?
SPEAKER_01Um and and I think we both know that just store ownership is a whole different ball game, and it just doesn't work. You know, I was involved with um uh not with spincycle but with uh Laundra Max. And it's it's and it's similar on the distribution side when you don't have a vested interest in it, you don't care about it as much. Right? So I think that I'm hoping that that's not the way that's gonna go. I think the consolidations are gonna continue. I wonder about more manufacturers coming into the market. I don't know how many more we could fit. I mean, think about it. Back back in the day, so when I it was Speaker and it was Dexter, and it was Wascomat. That was it. Yeah, that was it. And what do we got? 10 or more now. So you know, alliance with three different brands, and yeah, so um, yeah, I I I look at that and I and I try to figure out where it's gonna go. You uh when you when I think back when I sold my distribution up north, um, you know, prior to that, 10 years, 15 years prior to that, there really wasn't any value due to a distributorship. None of the distribution agreements are worth the paper they're written on. Yeah, right. They can drop you whenever they feel like it, right? So um, and so that's obviously been a big change. And now I wonder is is the consolidation going to become the corporate types like EVI and the manufacturers, and then are they gonna start buying each other out? Geez, I don't know.
SPEAKER_00Yeah, that's that's certainly a possibility. Yeah, I I I kind of find that the I and it's something that I've observed within this the last maybe it's it's been there for a few years since all of this has been going on, but I've really started to become more cognizant of it is the the the business that we know of that was so support-oriented, and we've always been a hardcore support-focused group as well, just like you are. That I I don't like this idea that it feels like the business is starting to be run more by accountants than people that are in the business. And not that there's not a place to be able to really track that the numbers that's important, but it shouldn't be the first focus, it should be like the later focus, you know. And maybe it's me showing my age a little bit here. It's like, but I'm seeing a more numbers first focus approach in some of these things, and that's probably why we're seeing conglomerates buying up stores, or you know, I think we're seeing some of that, that they're looking just at the numbers, but remember that those numbers don't happen without having a focused on service, and whether that means delivering a good laundry product or as a distributor providing the service that we, you know, just spent all this time talking about. So I'd be really curious to see whether or not that trend continues if the service doesn't stay elevated, you know, to be able to deliver the numbers that the that the that the accountants want to see, that the bookkeepers want to see at the end of the day.
unknownYeah.
SPEAKER_01No, I I'm with you. And and I think that you know that's probably a little scary, uh a scary part about that because they get too far into this thing, and then the numbers are changing because they're not doing that customer first, and then what happens, right?
SPEAKER_00Um the word zombie mat actually starts to come to mind. If we want to we want to pull Brian Grell into this again, this idea that then less investment in the local businesses, they start to look terrible, they get operated on, and we end up with locations that start to put a kind of a tarnish on the industry again. So hopefully that doesn't happen, but uh you can see that progression kind of observing how things are kind of moving. But um I think as long as we have people like hopefully like you and I that uh still remember what service means to to to to the organization, hopefully it won't happen in our areas too soon.
SPEAKER_01Um I I'm with you. Uh you know, uh and and I agree with you. I had I had friends in the auto business and they've always told me, you know, when it's uh the the independent dealerships always, always, always outperformed.
SPEAKER_00Outperformed the the uh the the factory-owned dealerships, the corporate stores, yeah. Yeah, yeah. Interesting, yeah. Yeah. Well, I think we just described why that is. Oh yeah.
SPEAKER_01And and and I think that's why what EVI is doing um makes sense because they're letting the business units operate. Now, obviously the numbers got to be there, and you know, we can't just go spend a whole bunch of money, but um they're letting the business units um run it the way they did they do. And and that was one of my questions when Henry flew up here to meet with me when they were trying to uh get me to agree to the sale, and um, and I said, you know, what what am I looking at? What are my people looking at? You know, what's gonna change? Um, you know, I I see these I'm imagining these drastic changes, and and he said to me, he said, Look, I'm buying your business because you've been successful the way you run it. Why would I change that? Okay. Now they made some changes, which we all knew were coming anyway, but it wasn't that drastic change.
SPEAKER_00So yeah, yeah. Um that's good. You know, I think that's smart. I think that is, and that's a real differentiator about how we're seeing those EBI core uh companies run versus maybe some of the other things that we've seen happen in the business. And I guess time will continue to tell that story uh and we'll all be observing. Uh well, Russ, this is a uh great. I I really appreciate you kind of sharing the your experience and your your wisdom with us over the years. I've enjoyed um kind of learning a bit. I there's something about your history that I don't think I've heard all of the story, so I I learned it quite a bit here. Um I appreciate you. I appreciate what you're doing down there, and I look forward to seeing you soon. Thanks a lot, Russ. That was great. Thank you, Steve.