Thursday, March 19, 2015

News: Xeros expanding US network

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Rotherham high-tech firm, Xeros, has adopted a partnership model of resellers to expand its reach across the USA.

Based on the Advanced Manufacturing Park (AMP), Xeros is a Leeds University spin-out that has developed a patented system using a unique method of special polymer beads rather than the usual large amounts of fresh water to clean clothes.

The company, which raised £30m when it floated on the AIM stock exchange, is targeting the billion dollar US laundry market first, taking advantage of water scarcity and water cost issues, bouyed by the financial incentives on offer from major utility companies.

A new partner program has recently been launched in North America aimed at commercial laundry suppliers that will resell and service Xeros systems. Xeros' business model is more about the deployment and servicing of the patented polymer beads than the machines themselves. The company and resellers benefit from a monthly recurring revenue stream from services and sales of "Sbeadycare," the all-inclusive laundry management program to hotels, commercial and industrial laundries, dry cleaners, fitness clubs and spas.

The Xeros System for commercial cleaning uses up to 80% less water, 50% less energy and approximately 50% less detergent, and delivers superior cleaning results compared to conventional washing. The United States Patent Office recently issued the company with a Notice of Allowance on a patent application covering its core polymer bead cleaning process.

Since commercialisation, Xeros has been focused on industry partnerships and enterprise sales in the US but as awareness and referrals increased and Xeros "went viral", the model has moved into network sales. With a North American base in New Hampshire, sales on the East Coast created new channels as distributors also took on the responsibility for servicing the systems. The same phenomenon happened on the West Coast and now Xeros expects to see a network of partners across the whole country.

Jonathan Benjamin, president of Xeros in America, said: "This is a ground-floor opportunity for distributors and resellers. This is the first major innovation in laundry for more than 60 years and it comes at a time when energy costs are skyrocketing and water is becoming scarcer and as a result more expensive.

"Our partners are now able to offer customers a fully managed laundry solution that is ecologically sustainable and that has a compelling ROI never offered before in the industry."

Xeros website

Images: Xeros

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