How To Increase Laundromat Revenue Without Raising Prices
When times are tight, you can make small or substantial changes to increase revenue and make your laundromat more profitable without raising prices. High inflation rates and rising costs have businesses and customers feeling the need to stretch their income and reduce expenses to stay afloat. While laundromat owners may be tempted to raise vended prices to help offset their own increased expenses, even a minor price hike could drive loyal but budget-conscious customers to your competitors, ultimately harming your bottom line. If you’re looking to maximize your profitability, these ideas can help you diversify your business offerings and find new revenue streams without increasing prices.
Add Premium Vended 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, you can offer custom cycles including prewash, extended wash, extra rinse, and other premium options in real-time, increasing your average sale amount. Compatible with the DexterLive system, the DexterPay mobile app makes it easy for the customer to choose exactly which cycles and upsells work best for their loads. 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
To expand your customer base—thus increasing revenues—consider offering additional services that can help your laundromat stand out, such as 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 with a minimal monetary investment and without raising prices for core services.
Add Vending Machines For Alternate Revenue Streams
In a high-traffic laundromat, vending machines provide an opportunity to increase your profits by offering your customers something they want or need beyond your standard services. Lease or purchase vending equipment to have laundry supplies readily available for clientele: Stock single-load soaps, dryer sheet packs, or stain removers to have on hand for customers in a bind. Food and beverage vending machines provide another easy revenue stream that increases customer satisfaction. You can price these items for the best possible margin knowing that the convenience of having snacks and drinks available is a fair trade-off to most customers. Vending machines can bring in additional revenue to help offset laundromat operation costs, so you don’t have to increase prices elsewhere.
Minimize Washer & Dryer Downtime
A laundromat that isn’t running at 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. Start by following a preventative maintenance schedule so equipment stays operational and running like new. We also recommend keeping common parts on hand to avoid delays when a belt or band wears out, so you can get your equipment up and running quickly. When it’s time to upgrade your equipment, look for manufacturer warranties that will help you save money on repair costs, further increasing profits.
Reduce Utility Costs With Updated Laundry Equipment
If your laundromat relies on old, outdated washers and dryers, you’re probably 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. Rather than raising your wash and dry pricing to offset decreased profits, upgrade your machines to new, technology-savvy and efficient vended washers and dryers. Consider the high-efficiency Express Washers from Dexter, which feature high extraction speeds to remove more water, cutting dry times in half. Faster laundry cycles also keep customers satisfied, so improving your profitability with new, efficient equipment is a win-win.
Improve Customer Loyalty With Laundromat Reward Programs
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 the DexterPay digital loyalty program, where customers can earn points toward rewards right from their phones.
Prioritize Ambience to Encourage Repeat Customers
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 and entertainment to suit your customer demographics, such as premium television channels, free wi-fi, a study nook, or a dedicated children’s area. 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.
