How To Maximize Laundromat Profits Without Raising Prices
With inflation rates the highest we’ve seen in decades, rising costs have businesses and customers feeling the need to stretch their income and reduce expenses to keep afloat. Many laundromat owners may be tempted to jump directly to increasing vended prices in order to help offset their own increased expenses, but with customers already struggling to make ends meet, even a minor increase could be enough to drive loyal customers to your competitors, ultimately harming your bottom line. If you’re looking to increase your profitability, consider these ideas to diversify your business offerings and find new revenue streams without increasing prices.
Add Premium Laundry Options
Upselling to your customers is a great way to increase your revenue without changing your base prices. With the DexterLive digital laundry management system, it’s easy to offer custom cycles including prewash, extended wash, extra rinse, and other premium options in real-time, increasing your average sale amount. Not only does this give the user a customized experience, but choosing the upsell is essentially your customers opting in to a higher price—with no negativity toward your business.
Expand Laundromat Services & Offerings
Offer additional services to expand your customer base and increase revenues. Some value-added services that can help your laundromat stand out include fluff-and-fold service, laundry pickup/dropoff, or garment repair. Because these services utilize existing equipment or have a low startup cost, you’ll be able to provide extra value, attract a wider customer base, and increase your laundromat revenue.
Increase Vending Sales
In a high-traffic laundromat, vending machines provide an opportunity to turn a profit while offering your customers something they want or need. Lease or purchase vending equipment to provide clientele with laundry supplies, like single-load soaps, dryer sheet packs, or even stain removers. Not only does this help customers in a bind, but you’ll also increase your sales. Food and beverages vending machines are also another easy revenue stream that increases customer satisfaction; price these items for your best possible margin knowing that the convenience of having snacks and drinks available is a fair trade-off to most customers. Vending for snacks and drinks brings in additional revenue to help offset laundromat operation costs without increasing prices for core services.
Reduce Washer & Dryer Downtime
A laundromat that isn’t running at its full capacity isn’t as profitable as it could be, so look for ways to reduce machine downtime in order to boost your bottom line. One of the main ways to keep all your equipment operational is to keep up with preventative maintenance to keep equipment running like new. We also recommend keeping common parts on hand to avoid delays when a belt or band wears out and get your equipment up and running quickly. If you’re upgrading your equipment, always look for manufacturer warranties that will help you save money on repair costs, further increasing profits.
Reduce Utility Costs
If your laundromat relies on old, outdated washers and dryers, you’re spending too much on utilities. Modern coin-op laundry equipment is more energy efficient, using less water and electricity per wash and less gas or electricity per dry. Consider the high-efficiency Express Washers from Dexter, which feature high extraction speeds to remove more water, cutting dry times in half. Rather than increasing your wash and dry pricing, upgrading your machines to new, technology-savvy and efficient vended washers and dryers can make the difference in your profitability. Faster laundry cycles also keep customers satisfied, so improving your profitability with new, efficient equipment is a win-win.
Improve Customer Loyalty
Repeat business means your machines are constantly in use, increasing your revenue. Reward programs are one way to increase loyalty and foster a positive relationship with your customer base. Implement a traditional punch card system or go high-tech with DexterPay, which features a digital loyalty program where customers can earn points toward rewards right from their phones.
Don’t Skimp on Ambience
Most people don’t enjoy doing their laundry at a laundromat. Make laundry day something to look forward to by enhancing the ambience with clean, comfortable facilities, premium television channels, free wi-fi, a study nook, a dedicated children’s area, or whatever other entertainment best suits your customer demographics. Whether people are frequenting your laundromat solo or with kids in tow, a welcoming, comfortable atmosphere can turn casual customers into loyal ones, improving your profitability.
If you’re unsure which option to start with, let the laundromat experts at Western State Design help. We have years of experience analyzing markets, determining value-added services, and discovering ways to make your laundromat more profitable—that’s the advantage of choosing WSD as your commercial laundry distributor.
