What should be the length of the agreement we can expect to enter into with Hercules?
The majority of agreements entered into today are between five and ten years, with the average being seven. The longer the agreement, the more generous the terms of remuneration and other amenities.

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How many machines should be installed in our building?
The number of washers and dryers will depend upon the family composition of the occupants, the number of apartments to be served, the presence or absence of children and the number of laundry rooms in the building.

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What about accepting "used washers and dryers" rather than brand new?
While the selection of brand new equipment might appear obvious, there are many scenarios where other than brand new will better serve the residents. As an example, in buildings with low "load factors" or multiple laundry rooms, the costs of installing new equipment could result in very low monthly rents received or even no rental at all. Often, it will result in less washers and dryers to serve the residents, which, in the final analysis, is not in the best interests of both residents and management.

Also bear in mind that all "used equipment" are not created or installed equal. Hercules completely remanufactures all the used equipment it installs. There is a significant difference performance wise and also aesthetically, between machines that are simply "wiped down" than those that are remanufactured.

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How about increasing the vend rates to receive more rental?
Nothing impacts more on the rental you will receive then charges for the use of the equipment, "vend rates". Don't assume however, increasing the vend rates will automatically translate into an increase in laundry room income. If there is a laundromat close to the building, or you do not police the use of private machines in the apartments, you have every reason to maintain moderate pricing. Usually as the vend rates increase, demand falls.

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How about accepting a percentage rate, what about accountability?
If your rental income depends on percentage of the money collected, you will either have to trust Hercules figures as fair and accurate, or oversee the collections made by Hercules collection personnel. If you have a smart card system installed, accountability is automatically built into the electronics and accurate reports can be easily rendered.

In addition, utilizing a hand-held control unit, Maytag computerized washer and dryer models offer advanced two-way data communication. This state-of-the-art system provides complete accountability throughout an entire laundry operation.

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How about Up Front Money and Bonuses?
Although "up front money" or "bonus money" might sound like a windfall, neither is what it seems. Both are discounted money paid at the beginning of the agreement that otherwise be paid over the life of the agreement. Thus, the larger the "bonus" payment, the smaller the rental or share of the collections paid throughout the term of the agreement.

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What is meant by the term "load factor"?
This is the key element in determining income potential in any given building or location. If a resident uses the equipment one time per week with one white clothing load and one dark clothing load using two typical top-loading washers and two matching dryers in the process, they do two loads per week or approximately eight and one-half loads per month.

A building with young families with children will do substantially more loads per month than a building with "empty nesters" or seniors.

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