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.
MARKETING BOOST
For many of the experts, stepping up marketing efforts is crucial for established store owners in answering the competition, making sure to highlight aspects such as amenities, services offered and even cleanliness of a store.
“They should promote whatever makes them unique and appealing in the eyes of the customer,” says Joel Jorgensen, vice president of sales and customer services, Continental Girbau, who suggests marketing consistently to customers according to a yearly budget and plan.
Marketing becomes even more crucial, according to Chris Brick, regional sales manager, Maytag Commercial Laundry, particularly when a competitor is in close proximity to an established store.
“Location in reference to your customer base is critical to any business’ long-term success, coin stores included,” he says. “If the majority of your patrons have to drive by the new store to get to yours, for example, you’re going to need to increase your marketing efforts and push your store’s amenities over the competition.”
“New competition should recommit you and your employees to providing a clean, effective and safe environment for your customers, and delivering excellent service with every touch point,” advises Kathryn Q. Rowen, North American sales manager, Huebsch. “You should promote something your store does well and always make sure your customers know their business matters to you.”
Michael Finkelstein, president of Associated Services Corp., a distributor and chain of Laundromats in the mid-South marketplace, also stressed the importance of maintaining a store’s cleanliness and appearance, both inside and outside.
“Make sure that the outside of your building is enticing to your customers because obviously if it’s not well-lit, or the sign is faded or it’s dirty or in need of paint, that impression goes to any potential consumer that is looking to do their wash,” he says. “That is a reflection on the inside before they even take a step in the door. If it’s dirty on the outside or run-down on the outside, they feel that it might be that way on the inside.”
THE ESTABLISHED ADVANTAGE
Though a bright and shiny new store in the area may seem intimidating, established store owners have a leg up on their competition in the form of familiarity, according to Finkelstein.
“The customer’s familiar with your store. They’re familiar with the personnel, and they’re familiar with the equipment, your hours and just the environment,” he says. “What you need to do is play up on all of those things. Make sure all of your equipment is working properly [and] your attendants are bright and cheerful and pleasant, and helping [customers], and your store’s appearance is as good as it can be so customers will not want to go somewhere else.”
Rowen also highlighted the advantage of an established customer base, and the importance for store owners in retaining them.
“It’s imperative that you have a clear understanding as to why your customers use your Laundromat, and consistently gain feedback on what additional things they may want to have,” she says. “Your service level and customer satisfaction should be one of the most important indicators of your business’ current and future health.”
Rowen adds, “Every touch point counts—you may do 20 things right, but it’s that one issue you may have not handled properly that can spark a mercenary. With the advent of social media, these people are potentially toxic to your business. If you have happy customers who know their satisfaction is important to you, there’s a much higher likelihood they will remain loyal to your establishment.”
Brick agrees, in that providing consistent service and a clean environment is key in retaining an established customer base.
“People are creatures of habit. If you can provide a clean store with a safe, friendly atmosphere, quality equipment that is clean and in good working order, as well as fair pricing, most customers will remain loyal to your store,” says Brick.
Check back Wednesday for the conclusion!
If you missed the earlier parts of this story, read them now: Part 1, Part 2
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].