CHICAGO — As business owners, there are many challenges coin laundry store owners and operators face on a day-to-day basis.
When problems arise, many store owners and operators should have a plan of attack in place—from effectively handling customer concerns or complaints, to having a protocol to follow for when a key piece of equipment goes out of commission.
But what is a store owner to do when a new competitor sets up shop across town?
What are the ways in which that established store can size up this new player, and what strategies should they have in their battle plan for when it comes time to face their new competitor?
American Coin-Op reached out to various industry experts for tips on how to effectively answer the competition, and to provide strategies for store owners to ensure they don’t lose their footing when they become involved in a proverbial tug of war with a new competitor.
DO’S AND DON’TS
So, is there anything an established store owner can do to keep the current client base from trying out the new coin laundry?
“No, the bottom line is you can’t,” says Michael Finkelstein, president of Associated Services Corp., a distributor and chain of Laundromats in the mid-South marketplace. “It’s up to the consumer, that Laundromat customer, to weigh, themselves, to say, ‘Is it worth it for me to drive the extra two miles to that store?’ All you need to do is give your customers reason not to go to that new store.”
“[Make] sure you’re offering the customers everything that you believe that they want and doing it the best you know how. If you do that, your customers will not necessarily try [the new store],” adds Finkelstein.
“Follow your business plan and keep providing a great customer experience,” says Kathryn Q. Rowen, North American sales manager, Huebsch. “Avoid making disparaging remarks about [the competitor] or their business in public. It’s very unprofessional.”
Joel Jorgensen, vice president of sales and customer services, Continental Girbau, agrees, saying, “Avoid negative interactions, confrontations or advertising. Don’t speak negatively about the competition. Simply point out your laundry’s positives and how those positives benefit the customer.”
In addition to immediately reducing wash prices, another strategy to avoid is cutting staff to reduce overall costs, according to Chris Brick, regional sales manager, Maytag Commercial Laundry.
“A quality staff may be the main reason many of your customers are actually choosing your location,” he says. “Also, avoid immediately [trying] to lower your utility costs by eliminating wash or rinse steps that your customers have come to rely on.”
BENEFITS OF COMPETITION
A new competitor in the market isn’t necessarily a bad thing, and can be healthy and ultimately benefit the end-customer, according to Rowen.
Finkelstein agrees, saying, “Competition is good, in general. It makes you a better operator. … You can learn from your competition [and] it allows you to reflect on what is it that you want your laundry to be. And then, you [can] look in the mirror and [ask] am I executing against the measures that I want my laundry to be? Am I serving my consumers the way they want to be served? It allows [for] some kind of reflection. And if you’re honest about it … it gives you an opportunity to re-examine how to get there.”
Missed the earlier parts of this story? Read them now: Part 1, Part 2, Part 3
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].