Increase Laundromat Revenue Without Raising Prices

Inflation and rising costs have laundry businesses and customers stretching their dollars and looking for ways to reduce expenses to stay afloat. While laundromat owners may be tempted to raise vended prices to help offset higher overhead costs, even a minor price hike could drive loyal but budget-conscious customers to your competitors.

Instead, look around your shop floor for profit-boosting add-ons or updates. If you don’t see any, let our experts help. Western State Design has been in the commercial laundry industry for decades, and we’ve developed a good eye for spotting business opportunities. Most owners can increase laundromat revenue without increasing prices by adding income sources, upgrading equipment, and driving business growth. Here are some improvements to consider for your store.

Add Alternative Revenue Streams

While coin-operated washers and dryers are a laundromat’s primary income source, these aren’t the only ways your business makes money. The most profitable add-ons are wash-and-fold services (a substantial commitment) and new vending machines (a relatively nominal venture, starting at $2,000 plus inventory), so you can stick to a comfortable investment and still bring in additional dollars.

Since alternative revenue streams aren’t mandatory offerings, you aren’t likely to face negativity from customers who opted in to increase their spend. Here are options to consider:

Premium Laundry Cycles

Upselling to your customers is a great way to increase your revenue without changing your base prices. With the DexterLive digital laundry management system, you can offer custom cycles including prewash, extended wash, extra rinse, and other premium options in real-time, increasing your average sale amount. It’s easy for the customer to choose exact cycle upgrades, and it provides a customized experience. When customers choose the upsell, they are agreeing to the higher cost without you having to adjust your base pricing.

Expanded Services & Offerings

To expand your customer base and increase revenue, consider offering additional laundromat services. A fluff-and-fold, laundry pickup/dropoff, or garment repair can provide new ways for your laundromat business to profit. People are used to paying a premium for convenience; you can increase rates for these services to offset extra labor or utilities, while maintaining the coin-operated prices that self-service customers expect.

Vending Machines

Snack and beverage machines are additional revenue sources that can offset overhead costs, preventing the need to increase prices. Vending is an easy opportunity to enhance the customer experience, too. Those who appreciate the convenience will be happy to pay, so you can price these items at the best possible margins to increase profits.

Consider these vending options to up your cash flow:

Single-load soaps, dryer sheet packs, or stain removers for customers in a bind
Food and beverage vending machines with enough variety to appease your customer base without introducing inventory headaches
Arcade-style and coin pusher games to bring in impressive monthly revenues, especially in family-friendly stores that still use coins.

Don’t want to manage or maintain vending? Consider leasing your floor space to a third party that will do inventory and stock your machines. With less risk comes fewer rewards, but you’ll still make some passive income and provide additional amenities that appeal to customers.

Consider Equipment Upgrades To Reduce Revenue Loss

Outdated or inefficient machines can quietly drain your laundromat business’s profits. Slow cycles and out-of-order coin machines irritate customers and cost you money from reduced turns and increased downtime. Investing in modern equipment can pay off by lowering operating costs and maximizing the revenue potential for each machine. Consider these upgrades:

Card-Operated Laundry Machines

Cashless and app-based payment systems are better than coin-operated because these streamline accounting, reduce hands-on management, and encourage higher sales, helping increase a laundromat’s profits. Customers who use card-operated laundry machines tend to be less frugal because they don’t need exact change for their next load, and they don’t have to worry about finding an ATM. They might separate smaller loads into more washers, select premium wash cycles, or choose high-capacity, high-dollar machines without thinking twice.

Efficient Laundry Equipment

If your laundromat revenue relies on old, outdated washers and dryers, utility costs may be cutting into your profits. Rather than raising your pricing to offset higher operational costs, retool your laundromat with new machines. Upgrading to modern coin-op laundry equipment can save a significant amount of money in the long run because these well-built, energy-efficient machines help to reduce repair costs, lower utility bills, and increase turns.

Dexter Laundry’s advanced coin-operated equipment offers several features that can improve your throughput and revenue:

Stack Washer-Dryer Units: Provide wash and dry in one vertical space to maintain throughput and maximize profits of each square foot.
G-Force Extraction: Removes more water, cutting dry times in half
Standard Temperature-Based Pricing: Helps recoup expenses from warm-water washes without increasing rates across the board
Sump-less Outer Tub: Eliminates wasted water in every cycle
Advanced Drying: Fully perforated cylinders enable optimal air recirculation and superior energy efficiency

Ozone Laundry Systems

If the energy and utility costs are eating away at your laundromat revenue, consider an ozone laundry system. This technology favors cold water cycles to lower energy costs, and it provides enhanced stain removal and improved cleanliness, two features customers are willing to pay a premium for. If your laundromat marketing explains the benefits of ozone, you’re likely to convince customers to make the switch to these revenue-driving wash cycles.

Improved Maintenance

A laundromat that isn’t running at full capacity isn’t as profitable as it could be. If your laundromat’s maintenance plan is lacking, take steps to improve it:

Upgrade your DIY repair plan to a professional maintenance contract to minimize downtime, extend equipment life, and stop losing profits due to out-of-order machines.
Adopt a maintenance schedule (and stick to it) to keep equipment operational and running efficiently.
Stock genuine parts to avoid repair delays when a belt or band wears out.
Learn to troubleshoot basic laundry issues to get your machines back in service quickly.
Opt into manufacturer warranties to save money on new equipment repairs.

Invest in Marketing To Boost Business

Increasing laundromat revenue isn’t just about improving your store. It’s also about building customer relationships to drive local traffic, increase repeat visits, and grow your bottom line. Businesses need customers to sustain pricing and services, and if yours is struggling, it’s time to consider investing in marketing. Here are a few tactics worth investing in:

Laundromat Website Optimization

The best tool for laundromat marketing is the business’s website. A well-optimized site is essential to attract new customers and increase your visibility in the market. These quick updates can improve traffic to your site and your store to grow your business:

Implementing keywords to attract local customers ("laundromats near Park City," or "coin laundry in Falcon Heights") can help your site show up for relevant searches.
Improve your site's technical performance so pages load quickly and are mobile-friendly.
Update the location, hours, services, and pricing — and keep them current — to help customers understand what your store offers.
Encourage customers to leave reviews, then respond to them promptly to build a positive business reputation.

Google Ads or Local Online Advertising

Get your laundromat listed on Google and begin using targeted online advertising to reach new customers looking for nearby businesses. Though paid advertising costs money upfront, the payoff when potential customers see your store at the top of the search results or in Google Maps is worth the investment. Social media ads can also promote your amenities and services to a local network of new and returning customers.

Upgrade the Environment To Encourage Repeat Customers

Most people don’t enjoy laundry day, but a clean, comfortable store can help make the chore more pleasant and encourage repeat visits. Add or improve amenities to better suit your customer base. Examples include:

Premium television channels
Free Wi-Fi
A study nook
A dedicated children's area
Clean restrooms
Comfortable seating
Ample folding tables and carts

Whether people frequent your laundromat weekly or once in a while, the atmosphere can turn casual customers into loyal ones, improving your profitability.

Provide Friendly, Helpful Customer Service

The guest experience is paramount to service industry businesses, including laundromats. Friendly, helpful customer service is an often-overlooked way to boost revenue. Attendants who assist with machines, provide advice, or even hold doors improve the customer’s overall experience, making them more likely to recommend your business to family or friends. Positive word-of-mouth laundromat marketing is invaluable, as it can lead to more foot traffic — and more sales.

Improve Customer Loyalty With Laundromat Reward Programs

Repeat business means your machines are constantly in use, which increases your revenue. Reward programs are one way to foster a positive relationship with your customer base. Implement a traditional punch-card system, or go high-tech with the DexterPay digital loyalty program that lets customers earn points toward rewards right from their phones.

If you’re unsure which improvements to start with, let the laundromat experts at Western State Design help. We have years of experience analyzing markets, determining value-added services, and recommending equipment upgrades to make laundromats more profitable — that’s the advantage of choosing WSD as your commercial laundry distributor. Contact us to discuss revenue-building options today.