RIPON, Wis. — A national essay contest sponsored by Speed Queen® last spring invited store owners to share their success stories and tout tried-and-true marketing strategies.
From California to Connecticut, more than 50 store owners from across the country submitted their stories. In this month’s Coin-Op 101 column, three entrants share their insights on edging out the competition exclusively with American Coin-Op readers.
Q: Describe your background and store(s) demographics.
David Harbour, Harbour Laundry Systems, North Carolina: My wife and I own and manage three stores in the heart of North Carolina. Two stores are located in adjoining affluent towns surrounded by resorts and golf courses. The third store—our largest—is located about 25 miles from the others in a blue-collar town. I am the third generation in my family to work in the laundry business and am proud to say I have laundry soap in my blood.
Mark Raukar, Little Valley Tub, Michigan: Little Valley Tub is located in southern Farmington Hills—a suburb of Detroit—and serves primarily working-class families. Although the store has been in my family since the 1960s, I had little involvement in the day-to-day management until 2011. While also juggling the responsibilities that come with being president of a factory-built housing company, I quickly learned the importance of being hands-on in the laundry business to be successful.
Rick Thompson, All-In-One Laundromat, Connecticut: Previously, I was a commercial fisherman in Alaska for 28 years. When my wife and I moved to Connecticut 10 years ago, I searched for a smart investment to support our small family. Successful friends, and my own personal research, pointed me to the laundry industry. I leased a 4,500-square-foot empty furniture store in a shopping center.
We serve lower- to middle-class customers, as well as University of New Haven students. Customers from surrounding towns frequently use our wash-and-fold service. Since the beginning, it’s been my goal to keep the store in top condition.
Q: What is the competition like?
Raukar: There are six other Laundromats within four miles of Little Valley Tub. These stores are much larger than our 1,800-square-foot store. We are fortunate to own the building, which cuts down on some overhead costs.
Thanks to this savings, we can offer more competitive pricing. However, that doesn’t negate the importance of providing a clean, pleasant and friendly atmosphere to keep customers coming back.
Thompson: Our main competition is a multi-store Laundromat chain (nearly 20 stores) that has two locations within a two-mile radius of us. These stores have a much healthier marketing budget than we do. We’ve done advertising of our own through the years, yet the strongest marketing remains word of mouth. Inside the store, we’ve posted signage that explains why customers get a better-quality wash and experience here than at competitors’ stores.
Harbour: There is little competition surrounding the Pinehurst and Southern Pines stores. In Raeford, two competitors entered our market simultaneously about five years ago. This was at the start of the recession, so times were already tough.
When the local turkey factory shut down, workers left town, and we lost 30% off our bottom line. We were still turning a profit and didn’t lose nearly as much as we anticipated, but we lost the “gravy off the top.” Having multiple stores helped us survive those years.
Check back Tuesday for the conclusion!
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].