Thursday, February 11, 2016

News: Xeros secures $1m deal

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Innovative Rotherham company, Xeros has signed a deal with New York City-based eLaundry.com worth in excess of a $1m for its award-winning laundry system.

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. Raising £70m by listing on the AIM stock exchange, Xeros is commercialising the system which uses at least 70% less water, up to 50% less energy and approximately 50% less detergent.

eLaundry.com provides on-demand laundry service to consumers and commercial customers in New York City such as hotels, spas, salons, colleges and universities, health clubs, and restaurant and is one of the largest laundries in Manhattan. The company offers free pickup and delivery in Manhattan that can easily be scheduled online or by text message. The company aims to make doing laundry accessible, affordable, and easy with superior cleaning results. eLaundry.com processess over 3.6 Million lbs of laundry per year.

To promote the new Xeros laundry services, eLaundry.com will introduce Xeros as an ingredient brand in their storefront, on delivery vehicles and throughout the business.

Charles Sakkal, owner of eLaundry.com, said: "Xeros has been a great investment for our business. Xeros' green and sustainable laundry system enables us to dramatically reduce our water, energy and detergent usage while delivering exceptional cleaning results for our customers. The feedback from our customers has been great and we are excited to promote Xeros as part of our overall brand promise."

Jonathan Benjamin, global president of laundry at Xeros, added: "On-demand laundry services are disrupting laundry industry. Consumers and businesses can use a smart phone, text, phone call or go online to easily schedule pick-up and delivery of their laundry.

"Xeros polymer bead cleaning is also disrupting the industry enabling on-demand laundries to provide their customers a higher quality, superior and more gentle clean as well as being more operationally and ecologically efficient than traditional aqueous machines."

The 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 programme, to hotels, commercial and industrial laundries, dry cleaners, fitness clubs and spas.

To meet the need of commercial customers, Xeros has introduced a new pricing strategy, to enable buyers to own the machines outright instead of leasing them. For Xeros, while the lower entry purchase price point for the machine results in an initial up-front loss on the cost of the machine, a greater monthly service fee will generate increased service margins for the group and an improvement in gross margin overall over the course of a five year contract.

The latest agreement is expected to be worth approximately $1m in revenue to Xeros over the course of the eight year contract.

Mark Nichols, chief executive of Xeros, said: "This is a substantial long term contract and further evidence that customer momentum is continuing to build in our Commercial Laundry business. Our Sbeadycare service agreements provide customers with the security of long term support and planned preventative maintenance. They also provide us with visibility of forward turnover and contribution.

"This deal further demonstrates the growing demand for our innovative cleaning system which provides material reductions in energy, chemistry and water whilst simultaneously improving wash performance and fabric care."

Xeros website

Images: Xeros

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