Promotions & Economical Operation Can Combat Rising Costs

Whether a coin or card operated laundry is -making or losing money, its costs will continue to rise. Recently the primary utility in California announced that its rates would be rising by approximately 30%. They are asking the state’s Public Utilities Commission for the extra money to build new power lines and help with the increased costs they pay for the natural gas they use to generate the power they sell. What does that do to the monthly power bill of a typical coin or card operated laundry business? Plenty.

Natural gas is going up and water is rising along with the -electrical power needed to run things. Everything else that is used to run a laundry is going up as well. When was the last time you heard of -supplies or the cost for insurance or rents -going down? Every expense seems to be going up and up.

Laundry operators have limited choices in the face of these increases. They can look at -raising their prices in turn or look for effective ways to cut expenses. Of course one should look for every reasonable way to cut expenses, but we prefer and recommend bringing in more -business income and raising income volume by promotions and sensible price increases.

There are always some small cost-savings that can be made, but it doesn’t look as though that really can be all that much. One can cut back on the temperature of the water coming from the heaters and cut back also on the wash and drying times in some equipment, but in the final analysis, more business, or higher prices is the better answer.

Many coin laundry owners are reluctant to raise vend prices because to do so might alienate their clientele. In other words, they’re afraid of customer reaction. Customers will react negatively whenever they are surprised by an increase, no matter how it is justified, for that reason you need to announce any increase weeks in advance of it taking place. That way, no one is surprised. They won’t like it, but they won’t rebel.

When you post the notice of a price increase out in the laundry, it should include a reason or two why it is happening. That way the customers get the chance to understand why your wash price is going up. When they understand, they accept it a lot better. You need not be afraid of a customer’s reaction if they have time to think about it and accept that everything else is going up too.

Let’s say an operator doing his taxes discovers that the laundry’s net taxable income for 2007 was $1,500 less for that year but the income was the same. Let us talk about raising prices to correct that situation. All this operator has to do is raise his income by less than five -dollars a day. Does that mean we raise all our prices, and if so, how can these vend charges go up without -alienating our laundry’s entire clientele base?

With ten front load washers doing five turns per day and if they are each raised a quarter it brings a coin laundry nearly $4,500 per year, more than enough to make up the loss. There is far less -resistance to a front load washer increase of a quarter than there is to raising top loaders by a quarter. That reluctance to accept higher washer and dryer vend prices is more imagined than real.

Now let’s assume this laundry owner raised everything by a quarter, including shortening drying time given per coin dropped through. In this imagined laundry, twenty tops and ten fronts, an increase of a quarter per machine will amount to more than $12,000 each year. That is enough to cover all the rising costs the laundry faces, at least for this period of time.

Every other type of business gets to raise their prices as they need them. Meat goes up and the restaurant raises the price of every steak on it’s menu. Why can that not also apply to a coin or card operated laundry business facing costs increased in the gas or electric bill?

The best way to increase the cash flow of a coin or card op laundry is bringing in more business and examining increases in vending prices to go with various advertising and -promotional events.

There may be as many ways to improve overall volume as there are laundries that need to improve, and there are variables on each method or system. The laundry owner’s imagination appears to be the only limit.

There are all kinds of promotions and -gimmicks that have worked, but the staff of the News is only going to recommend those ideas with which we have some experience and know work. We’ve seen them and have used many of these techniques and systems in the past ourselves and are able to assure our readers of their viability.

Each of the following promotions works in a coin laundry and has served to increase overall dollar volume. They appear to give the laundry customer something for nothing, but actually are giving them advantage for being a long term, steady customer.

Anxious to increase business in his unattended laundry, a new owner decided to set up a promotion system giving his customers chances to draw for prizes. Each month they could enter their name in a box. He spent about $100 per month for prizes. He broke even the first month then noticed that -business -volume was climbing. He kept the laundry clean and kept equipment in apple pie order. It all helped. Because his clientele got more and more interested as the weeks went by, they came in more often and brought some of their friends who were doing business elsewhere. In less than 6 months the laundry’s income was up by over a thousand a month.

To encourage customers to switch from top loads to front load washers, one operator re-invented the Wash Club. In this club, laundry users get single credit for top loads, double credit for double loads and triple credit for the triple load washers. Since they could see that they saved money going up the line in size, it got them thinking about the bargain offered by the front loads. That part of the program saved the owner on utilities as his front loads use far less water and electricity.

In a wash club they received the value for one regular wash for each wash done. It takes ten washes to win that free wash. By the way there were no cash prizes. The attendants simply start the washer for customers who won.

There were also drawing prizes quarterly for the club members. The customers felt they were getting something for FREE!

This program took more than six months to really develop, and the owner used the wash club for six years. When they quit the club it was with the announcement that the club was stopped to avoid having to raise vend prices. Over the six year run of the wash club the laundry’s volume had increased more than double. They had raised prices once and were seriously -debating about doing it again.

A Wash Club program is simple for laundry customers to grasp. They get excited about it, and it’s cheap to run. The expense is giving out a free wash every tenth wash and paying to print the cards. It really works well in a coin laundry that has attendants working. Sample cards are available through the News.

One owner/operator of a full service coin laundry that had drop off cleaning and fluff & fold tried an interesting variation of Wash Club. His idea was to build up the fluff & fold and the dry cleaning by using the prize drawings to introduce those services to his clientele.

His attendants paid the wash for those who won, but he offered many more prizes such as discounts on cleaning and free wash and dry for the winners as well. His variation was that the size of the free fluff and fold was smaller than typical orders his attendants took in. This was to encourage regular laundry machine users to use the laundry’s services to do their wash instead of doing it themselves. They would be bringing in more cash to the laundry business.

When they tried it they liked having it done for them, and he converted quite a few to continue to bring in fluff & fold orders. The discounts on cleaning were low enough that the business still made money, and it made his -regular customers aware of dry cleaning being available at the laundry. A surprising number were taking cleaning elsewhere.-

There are many ways to increase -dollar -volume in laundries and the addition of fluff and fold may be the most effective way of all.

It gives laundry employees that are there and can watch over the safety of the business. The attendants being there bring increases in laundry volume, plus they earn salary by doing the customer’s bundles.

It usually takes a few months to build up that part of the -business, but once it gets going, it’s a very profitable and stable part of your coin or card laundry business.

Date:-05/28/2011
By:-Admin


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	Promotions & Economical Operation Can Combat Rising Costs Whether a coin or card operated laundry is -making or losing money, its costs will continue to rise. Recently the primary utility in California announced that its rates would be rising by approximately 30%. They are asking the state’s Public Utilities Commission for the extra money to build new power lines and help with the increased costs they pay for the natural gas they use to generate the power they sell. What does that do to the monthly power bill of a typical coin or card operated laundry business? Plenty. Natural gas is going up and water is rising along with the -electrical power needed to run things. Everything else that is used to run a laundry is going up as well. When was the last time you heard of -supplies or the cost for insurance or rents -going down? Every expense seems to be going up and up. Laundry operators have limited choices in the face of these increases. They can look at -raising their prices in turn or look for effective ways to cut expenses. Of course one should look for every reasonable way to cut expenses, but we prefer and recommend bringing in more -business income and raising income volume by promotions and sensible price increases. There are always some small cost-savings that can be made, but it doesn’t look as though that really can be all that much. One can cut back on the temperature of the water coming from the heaters and cut back also on the wash and drying times in some equipment, but in the final analysis, more business, or higher prices is the better answer. Many coin laundry owners are reluctant to raise vend prices because to do so might alienate their clientele. In other words, they’re afraid of customer reaction. Customers will react negatively whenever they are surprised by an increase, no matter how it is justified, for that reason you need to announce any increase weeks in advance of it taking place. That way, no one is surprised. They won’t like it, but they won’t rebel. When you post the notice of a price increase out in the laundry, it should include a reason or two why it is happening. That way the customers get the chance to understand why your wash price is going up. When they understand, they accept it a lot better. You need not be afraid of a customer’s reaction if they have time to think about it and accept that everything else is going up too. Let’s say an operator doing his taxes discovers that the laundry’s net taxable income for 2007 was $1,500 less for that year but the income was the same. Let us talk about raising prices to correct that situation. All this operator has to do is raise his income by less than five -dollars a day. Does that mean we raise all our prices, and if so, how can these vend charges go up without -alienating our laundry’s entire clientele base? With ten front load washers doing five turns per day and if they are each raised a quarter it brings a coin laundry nearly $4,500 per year, more than enough to make up the loss. There is far less -resistance to a front load washer increase of a quarter than there is to raising top loaders by a quarter. That reluctance to accept higher washer and dryer vend prices is more imagined than real. Now let’s assume this laundry owner raised everything by a quarter, including shortening drying time given per coin dropped through. In this imagined laundry, twenty tops and ten fronts, an increase of a quarter per machine will amount to more than $12,000 each year. That is enough to cover all the rising costs the laundry faces, at least for this period of time. Every other type of business gets to raise their prices as they need them. Meat goes up and the restaurant raises the price of every steak on it’s menu. Why can that not also apply to a coin or card operated laundry business facing costs increased in the gas or electric bill? The best way to increase the cash flow of a coin or card op laundry is bringing in more business and examining increases in vending prices to go with various advertising and -promotional events. There may be as many ways to improve overall volume as there are laundries that need to improve, and there are variables on each method or system. The laundry owner’s imagination appears to be the only limit. There are all kinds of promotions and -gimmicks that have worked, but the staff of the News is only going to recommend those ideas with which we have some experience and know work. We’ve seen them and have used many of these techniques and systems in the past ourselves and are able to assure our readers of their viability. Each of the following promotions works in a coin laundry and has served to increase overall dollar volume. They appear to give the laundry customer something for nothing, but actually are giving them advantage for being a long term, steady customer. Anxious to increase business in his unattended laundry, a new owner decided to set up a promotion system giving his customers chances to draw for prizes. Each month they could enter their name in a box. He spent about $100 per month for prizes. He broke even the first month then noticed that -business -volume was climbing. He kept the laundry clean and kept equipment in apple pie order. It all helped. Because his clientele got more and more interested as the weeks went by, they came in more often and brought some of their friends who were doing business elsewhere. In less than 6 months the laundry’s income was up by over a thousand a month. To encourage customers to switch from top loads to front load washers, one operator re-invented the Wash Club. In this club, laundry users get single credit for top loads, double credit for double loads and triple credit for the triple load washers. Since they could see that they saved money going up the line in size, it got them thinking about the bargain offered by the front loads. That part of the program saved the owner on utilities as his front loads use far less water and electricity. In a wash club they received the value for one regular wash for each wash done. It takes ten washes to win that free wash. By the way there were no cash prizes. The attendants simply start the washer for customers who won. There were also drawing prizes quarterly for the club members. The customers felt they were getting something for FREE! This program took more than six months to really develop, and the owner used the wash club for six years. When they quit the club it was with the announcement that the club was stopped to avoid having to raise vend prices. Over the six year run of the wash club the laundry’s volume had increased more than double. They had raised prices once and were seriously -debating about doing it again. A Wash Club program is simple for laundry customers to grasp. They get excited about it, and it’s cheap to run. The expense is giving out a free wash every tenth wash and paying to print the cards. It really works well in a coin laundry that has attendants working. Sample cards are available through the News. One owner/operator of a full service coin laundry that had drop off cleaning and fluff & fold tried an interesting variation of Wash Club. His idea was to build up the fluff & fold and the dry cleaning by using the prize drawings to introduce those services to his clientele. His attendants paid the wash for those who won, but he offered many more prizes such as discounts on cleaning and free wash and dry for the winners as well. His variation was that the size of the free fluff and fold was smaller than typical orders his attendants took in. This was to encourage regular laundry machine users to use the laundry’s services to do their wash instead of doing it themselves. They would be bringing in more cash to the laundry business. When they tried it they liked having it done for them, and he converted quite a few to continue to bring in fluff & fold orders. The discounts on cleaning were low enough that the business still made money, and it made his -regular customers aware of dry cleaning being available at the laundry. A surprising number were taking cleaning elsewhere.- There are many ways to increase -dollar -volume in laundries and the addition of fluff and fold may be the most effective way of all. It gives laundry employees that are there and can watch over the safety of the business. The attendants being there bring increases in laundry volume, plus they earn salary by doing the customer’s bundles. It usually takes a few months to build up that part of the -business, but once it gets going, it’s a very profitable and stable part of your coin or card laundry business. Date:-05/28/2011 By:-Admin