Telecoin
Copilot:
In the 1940s, Telecoin Corporation made quite a splash in the laundry industry. Let’s delve into its fascinating story:
Telecoin’s Beginnings:
Telecoin Corporation was primarily responsible for the boom in self-service laundries during the late 1940s. These laundries, known as “Launderettes,” allowed people to wash their clothes themselves using coin-operated washing machines.
The company was founded by two enterprising individuals: Eugene Farny, a handsome Harvard graduate who had previously sold jukeboxes, and Arthur Percival, an ex-piano salesman.
Their journey began in 1938 when they started installing Bendix washing machines in New York apartment buildings. These machines ran for 30 minutes on just a dime, making laundry more accessible and convenient for residents.
Exclusive Rights and Expansion:
Telecoin secured exclusive rights from Bendix to operate its coin-operated washers. They took on a massive project: providing washers for the 12,272 tenants in the Parkchester apartments in The Bronx.
To make the machines available to outsiders during slack times, Telecoin installed ten quarter-operated machines in an empty nearby store. This innovative approach worked so well that they soon expanded to 35 such stores.
Recognizing the potential for growth, Telecoin established a franchise system. Eager entrepreneurs could purchase machines and start their own Launderette businesses. Telecoin handled accounting, advertising, and even granted the use of the “Launderette” name for two years.
Quick Profits and Challenges:
Launderette proprietors saw quick profits. For instance, Bert S. Good, who owned four stores in Manhattan, was netting $800 a week. Good even opened a Launderette in Switzerland, marking the first foreign expansion.
However, running a small business required dedication. Percival emphasized that it wasn’t enough to hire someone to manage a store and watch the quarters roll in. Success required a tight grip on operations.
Antitrust Concerns and Competition:
Telecoin’s success caught the attention of the antitrust division of the Department of Justice. In a civil suit, they accused Telecoin and Bendix of monopolizing the field.
Meanwhile, Telecoin faced competition from Chicago’s “Laundromat,” which held national distribution rights to Westinghouse washers.
In summary, Telecoin Corporation revolutionized the laundry industry by introducing self-service laundries and coin-operated washing machines. Their Launderettes became a common sight across the United States, making laundry more convenient for millions of people
Nobody has made such a good thing out of washing dirty linen in public as Manhattan's Telecoin Corp. It is chiefly responsible for the boom in wash-it-yourself laundries, which have all the...
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