Dont Let Dreams of a Vend Price Increase Become Your Nightmare

The laundry owner found out quickly how many problems one cranky and unreasonable customer can cause. He had purchased some new washers and felt that he needed to raise his washer vend price to pay for them. Although the laundry was not attended, he spent about twenty hours each week making repairs and cleaning the laundry. When he brought in the new washers, he raised the vend price on that very same day. This customer was a fiftyish woman who decided that the increase was too much, it wasn''t fair, and she decided to raise hell about it. She came to the laundry nearly every day, even when she was not doing wash, and talked with those doing laundry. Soon there were dozens of ladies who were giving the owner grief over the increase in the washer vend prices. The owner kept pointing out the superior benefits of the new washers he had installed and explained that they had to be paid for. He tried reasoning and charm, but nothing worked. This operator finally had it with these women, who knew nothing about his business and high costs for better equipment. But, what to do about it? His decision was to confront the ladies he saw as the ring leaders and made them an offer. He''d pay them the difference between what they would be paying at one of his three competitors, but only if they would take their wash there, not do it here. One by one, they all accepted the offer and after a week or two, one by one they all soon returned. ''The washers and dryers there were terrible. The place was dirty and unkempt.'' Now he told them, ''You see why there is a difference in the prices between our laundry and theirs. We are cleaner and better equipped.'' For today''s laundry operator, this story can still ring true, even though the operator above was going through a reaction to a price hike he made to take his washer vend prices to fifty cents. It was in the early 1960s and people didn''t just accept things. Two quarters represented almost a forty percent jump over his then existing price of thirty five cents. Resistance to increases is a given. Any time a laundry owner raises prices he or she will face resistance from some of their laundry''s clientele. The story above is to point out to our readers that it''s not a new reaction. It''s been going on since forever. And it is a quite natural reaction, even though the same people who complain will cheerfully accept a six dollar cup of latte coffee, or a $3 gallon of gas and won''t bat an eye. Perhaps the single biggest reasons that the vend prices have been so low in the laundry industry is a reluctance on the part of most owners to face their clientele after prices have risen. It''s as if they dread the criticism and the threat of loss of business they know they will receive from some of their regulars. We should always respect those who bring their business to us, but should we fear them? Will they leave us in droves and go to our competitors? The answer is NO! All things being equal, they already come to this particular laundry for reasons of location access and convenience. They won''t leave for an increase, unless it truly is excessive. OK, we need to think about an increase. How long has it been since you felt you needed to, or wanted to raise washer or dryer vend prices? Do we really need one or are things going so well just the way things are? Here''s one way to figure out whether or not you should consider doing it again. Just answer the following questions. 1. Has the landlord graciously lowered the rents and common area maintenance fees, or are they now higher than they used to be? 2. Has the local gas company reduced your laundry''s natural gas bill recently, or have you noticed increases? 3. Did the power company complain that you have been paying too much and, if so, do they plan to lower your bill? 4. Does it now cost more than it did for you to drive back and forth to your laundry and to do the various chores needed to do laundry business, or have prices for gasoline fallen in your area? 5. Have your attendants, janitors, repair people and others been telling you that they are being paid too much and want lower pay? 6. Has your vending supply source announced that their prices are going down, or do they too tell you they are rising as well? 7. Has your insurance carrier announced a rebate because they thought they had been asking too much premium? If the answer to any of the questions above is YES, then you are one lucky operator. If, however, you answer NO to any or all of the questions above, then just maybe you should consider raising your laundry washer and dryer vend prices. Not to make more money, but just to keep up. Is there an easy, effective way to raise? While there will always be those few folks who will grumble about increase, most will go along if they are satisfied that it''s necessary for survival of the business. What most people don''t go along with is a BANG-we just raised prices effective this morning. The first rule in raising prices is to give the customer advanced warning. That can be done by printing a few notices of the future increase and posting them in the customer space. That notice should have a simple and believable reason for the increase. Put them up on the bulletin board, change machine and anywhere else your laundry''s users are likely to see and read them. Here is an example. CUSTOMER NOTICE Effective December 1st, we have been forced to raise prices by one quarter for the top load washers. On that date, it will be $1.75 per wash. We are reluctant to go up but gas prices for hot water have already exploded and are predicted to double and maybe redouble within the next year. Thank you for understanding. Since they have notice of the increase in advance, they have time to get used to the idea. It has been explained, and it is done reluctantly. It will seem to be required by circumstances you cannot control. It''s not greed, it''s necessity. To make the increase seem as righteous as possible to customers, spend some time with them explaining the need. If you have employees, give them a story to tell the customers. In the warning period, between you and your employees, you''ll have time to get to almost all of the customers with an explanation. You''ll be surprised with how many of them that will say that they were expecting an increase. Let''s face it, for your customers, the biggest negative reaction to raising prices comes when that increase comes as a total shock and surprise. The amount of money isn''t going to make a big -difference in their lives. So once they get used to the idea of an increase, the great majority of them will accept it. Card operated laundry owners have a real advantage in that any increases can be made in increments of a penny or two. Coin operators need to do their jumps in quarter increments. But, the psychology remains the same. Explain an increase the best way you can and give your clientele plenty of warning before you put the increase into effect.