An Interview with Bryan Maxwell of Western State Design

Bryan Maxwell is the senior laundry specialist for Western State Design, a major laundry equipment distributor, headquartered in Hayward, Calif.

Maxwell began with Western State in 1988 – selling industrial OPL laundry equipment. Then, in 2001, he and the company diversified into the vended laundry segment as well.

Over the years, Bryan has given back to the industry by serving on the Boards of Directors for both the Coin Laundry Association and the CLA’s former Northern California affiliate group.

Later this year, Maxwell will retire from WSD after more than 30 years.

How did you first get involved in the laundry industry, and what attracted you to it?

I think few people get into this business intentionally. As for me, I was involved with a Fortune 500 company as a college intern, and I decided to go into that world after school. I joined a high-tech Fortune 500 firm – working in its supposedly “up and coming” division.

I worked there for two years, and one day I showed up to work and there was an overnight package from corporate waiting for me. The division had been sold to a new company and, over the next two years, the company was sold two more times. I worked in the same location doing the same job for four different companies.

Eventually, I decided that the corporate world was not my friend.

At that point, I went to work for a small investment company, which was worse than my previous experiences. The owner of the company turned out to be a crook – and, one morning, I showed up to work, and there was a chain on the front door and I ended up being sued by a client.

It was a pretty dark time. Coming into the laundry business, I was penniless – literally stapling my kids’ shoes together, shopping at thrift stores, and taking the garbage to the dumpsters at the local pizza parlor at night, because we couldn’t pay the garbage bill. I was broke.

Fast forward, I get a lead for a company that sells washing machines the size of a Buick. When I first met with the ownership of Western State Design, I knew I wanted the job, and there were two huge reasons this industry attracted me.

One is that the business is simple. We sell equipment to people for two reasons – that equipment makes people money, or it saves them money. It’s not glamorous, but it’s a very simple need.

The second reason was that I would literally know the man who signed my paychecks. I was not going to get surprised with an overnight package at 7:30 in the morning from a corporate office thousands of miles away. If my world was going to change, I was going to hear about it directly from the owner.

I feel very fortunate to have found this industry. It has changed my life.

In the past, you’ve very humbly described yourself as “someone with a very limited skill set.” What exactly do you mean by that?

It’s a comment on two things. The first is the list of things I can’t do is much longer than the list of the things I can. Also, given my experience with corporate America, I know I don’t have the temperament to work in a large corporation

Secondly, my comment is really more about this industry. I came into this industry penniless, and now I’m retiring as a 61-year-old guy with a few nickels in his pocket. The industry was a good fit for me.

I’ve been able to make a good living helping others achieve their goals.

While the list of things I can’t do is long, I think I’m pretty decent at helping people grow their businesses and helping them save money. I’m extremely fortunate this business found me.

In more than 30 years, you’ve no doubt dealt with the ups and downs of business life and life in general. Can you speak to that, and maybe share some anecdotes or lessons learned from your career.

With the onset of gray hair and being at this for a long time, you see and experience a lot of adversity, and adversity can definitely make you stronger. The best example I can think of is the worst tragedy in our nation within my lifetime, which was 9/11. Prior to 9/11, our company was primarily an industrial, OPL equipment distributor. We dabbled in the vended market, but we didn’t really do it well.

Then, after 9/11, we had customers who refused to pay their bills – and some of these were big bills. I had a customer who owed us a half a million dollars. He said, “I’ll pay you, but I can’t do it today.”

We had some big industrial projects that just stopped. It was scary.

After 9/11, we knew we needed to diversify. We made a commitment to Dexter Laundry for the vended segment of the industry. We didn’t tell Dexter at the time, but the commitment to them was not that significant. It was more like, “OK, let’s get through the next 18 months, increase the bottom line, and then return back to the industrial, OPL business as usual.”

However, the Dexter vended business thrived and, by 2007, we were the largest Dexter distributor on the planet. It has become an integral part of our business.

For me, personally, the laundromat segment of the business fit my personality and my temperament. It’s been a lot of fun, and I hope I’ve helped contribute to the industry over the years.

Adversity did create opportunity, and it’s been amazing.

What are the biggest changes you’ve noticed in the laundromat business since you’ve been involved in it?

The biggest one is technology. The networking of laundromats is a game-changer. Networking provides store owners with personal freedoms unavailable with traditional coin laundries. Now owners can solve problems on the fly.

For example, if a customer has a problem with a machine, the store owner can get on their phone, review store video, identify a problem with a customer, and then start the machines remotely for free, if needed. This technology redefines customer service.

Technology offers the ability to manage the business in ways unimaginable in the past. New metrics are available in real time – store performance, machine performance, customer trends, collections by machine and even error messages. Technology has taken away the guesswork in running a laundry. It’s amazing.

The other part of technology that’s changed significantly is the ability to accept credit and debit cards. Whether it’s a payment app or a pay-at-the-pump system, the ability for customers to pay by simply hitting a button on their phones or swiping a credit card – rather than dropping in 40 quarters – is a game-changer.

The other aspect that’s changed over the years is the type of owners in the industry. We attract much more professional owners than we did decades ago.

In northern California, many people who are in high tech and working 80 hours a week are looking to buy laundromats to replace that income and improve their quality of life. They have a different paradigm. They understand, for example, that a laundry business could be making X – but, if they make the right investments, it will earn significantly more. They clearly understand the business side of things. They don’t have a small world paradigm. The quality of businessperson I deal with every day has changed a lot.

This is a non-glamorous, basic-need business. However, smart professionals are getting into this business, and they understand the opportunities.

How has your role within the industry changed?

I think we have more tools at our disposal – but how I do my business and how I approach my relationship with customers hasn’t changed.

My business model has remained fairly consistent. I attempt to stand on the same side of the table as my customers, so we can work together to help them achieve their goals. I believe most people would say I was more of a partner than a salesman.

How has this industry improved itself over the years?

As I mentioned, the quality of people our industry has attracted has resulted in a significant improvement in the quality of today’s laundromats. Most owners understand that – if they do things right and make the needed investments – the rewards will be there.

I believe we’re serving customers better than ever. More and more owners now understand the value of doing right by their customers. If you serve your community, your business will grow.

Yes, there are still some owners who are bottom-feeders who just don’t care, and their stores are unappealing. However, those owners who are doing it right will see their businesses grow.

You’re retiring from Western State Design later this year. However, thanks to your laundromat, you’re not leaving the industry anytime soon. How did you know it was time to cut back? And tell me a little bit about your “second act.”

I always imagined that my exit strategy would include a laundromat. I came into this industry with nothing, so I was a little late to the savings game. Being in a hole when I started, I knew I was going to have to own a laundromat someday.

It was always part of my plan – but also part of the plan was to do it toward the end of my career. I never wanted my customers to feel threatened. I never wanted them to feel like the information they were sharing with me would come back to bite them.

Once I made the decision to open a laundromat, I knew it was going to affect some people. Within days of closing on my laundry, I met with the store owner closest to me. He was my customer and a good man. I told him, “Somebody bought the laundromat down the street, and that somebody is me.” I wanted him to know and hear it from me firsthand.

So, a laundry was always part of the plan. But, ultimately, my decision to scale back was because I have three adult children – two of them are married and living 400 miles away in southern California. We had our first biological grandchild last September and our first fostered-to-adopt grandchild last August.

I want to see them more often and not work the way I have for 30 years. I want to see the kids and grandkids in person, not on FaceTime. The plan is to run the laundromat and spend more time with these new family members.

I plan to own the laundromat for at least 10 years, maybe longer.

You’ve done a lot of work on your store.

I’m really proud of it. I think we serve our community well. Basically, I’ve taken what I’ve learned in my 20 years on the vended laundry side. Here are a few highlights:

• Replaced all of the equipment with larger equipment to increase the return per square foot and serve our demographic better.
• Replaced dated laminate with granite folding tables.
• Replaced wood paneling with new sheet rock.
• New lighting – I’ve learned a lot about lighting over the years and the right lighting can make a good store great.

I’d like to give a little shout out to Brian Grell of Eastern Funding, who preaches the gospel of having a good restroom. Since I have an incredible full-time staff, we can have the luxury of having a great restroom. It sounds crazy, but my restroom is really nice. In fact, it’s used so often that every three months I was having to replace the doorknob. I ended up buying a $500 doorknob that won’t need to be replaced for a long time. If you have attendants and close your restroom to your customers, I think you’re making a big mistake.

So, thank you, Brian Grell.

What is your day-to-day going to look like in the coming months? Take me through a “typical” day as strictly a laundromat owner.

I’ve worked long hours for most of my career, so my new life is going to be nice. I like to play tennis, so I’ll do a lot of that. I also hope to play some golf.

I have an incredible, full-time staff at the laundromat, but I’ll still probably spend about 20 hours a week at the store, restocking the vending machines and those types of things.

As a matter of fact, all of the profit from the vending machines will go to my grandkids’ college education. As the kids get a little older, maybe 4 or 5, I hope they can come hang out with grandpa, and help stock the vending machines and learn the value of a dollar.

Ideally, I’ll spend one week a month in southern California, and my wife and I also will be able to do some traveling.

Over the years, you’ve met just about everyone in this business. What’s some of the best advice you’ve received from others?

When sales are going well, there may be many people in your circle saying nice things about your performance. Sometimes it can go to your head, and you can become overconfident. It’s easy to take credit for the success.

An executive for one of the companies we represent made a great comment to me. He said, “A rising tide raises all ships.”

In other words, when you think you’re special and sales are great, maybe it’s because the economy is doing well, you’re selling great products, you work for a great company, and you’ve got good people who support you.

If you take this view, it allows you to step back and become a bit more thankful. Knowing that you’re in a good situation with a good group of people can keep you grounded.

Another piece of advice, somewhat unrelated to the laundry business, came from a crusty, hard-driving, chain-smoking former crane salesman who came to work for WSD for a time. He once told me: “A lot of problems in life occur because people are comparing their insides to the outsides of others.”

For instance, in the social media world, everyone shows a perfect life. You only see what others want you to see. You only see their highlight reel. On the other hand, you know your insecurities, your fallibilities and your limitations. It’s a big mistake to compare our own frailties to the perceived success of everyone else.

I think that’s one of the most powerful things I’ve ever heard. When you’re feeling a little bit bad about yourself, remember that you may be comparing your insides to someone else’s outsides.

Have you developed your own personal philosophy that guides your decisions?

I don’t necessarily have a philosophy, but I do have a pet peeve. And that’s when people choose a public setting – a staff meeting, a team email, etc. – to let you know about a problem for the first time.

Years ago, a warehouseman at WSD literally lost a $15,000 washer off the loading dock. As it turned out, a trucker stole it. I helped get the machine back, and the trucker was fired. If I had said anything to WSD management, the person would have been disciplined for sure. Yet, the very next day, that same warehouseman lit me up in front of management for not turning in some paperwork correctly. I was extremely frustrated to say the least.

I can honestly say that no one in my career has ever been surprised by me in public, because I’ve always discussed any issues first in private. I think we’d all be better served if people learned how to confront privately before publicly.

What has been the biggest mistake you’ve made in this business?

I think I’ve done a poor job of maintaining a proper work/life balance. Since the day a car phone became a mobile phone and a desktop computer became a laptop, I’ve had devices with me all the time. I’ve taken phone calls and responded to texts virtually any time of the day or night. I can’t remember a vacation when I didn’t work. Generally, on vacations, I’d get up before my family and work for a few hours. I’ve closed sales at the beach, in the mountains, at Disneyland, and all over the world.

If I were to do it over again, I would establish boundaries and set different expectations with my clients.

What’s been the most gratifying aspect of your life in the laundry industry?

I’m really proud to have helped a lot of people in this business. I can honestly say that doing what we do has changed the lives of many of our customers and maybe the next generation or two. Going into a laundromat, working with the owners and helping them create wealth has been gratifying. I really enjoy the consulting part of the business and could probably do it forever.

When you have someone build their first, second and third stores and you see how it helped their kids go to college, that’s rewarding.

What does the future look like for the laundromat business?

It’s about as good as it’s ever been. There are some temporary threats with supply chain issues and lead times. It’s taking a little longer to get equipment, and it’s going to cost a bit more.

However, I don’t see how that’s going to change the dynamic – the trend toward higher quality stores that serve people better. I’ve spent a lot of time training my replacement for the next generation of WSD, and I’m excited for them. This industry will continue to grow and continue to change people’s lives. Of course, people will always need clean clothes.

What’s that song lyric? “The future’s so bright, I gotta wear shades.” I still feel that way about the laundromat business.