CHICAGO — In the competitive landscape of laundromats, pricing services is a critical art that goes beyond setting a simple rate per load. For laundromat owners, each pricing decision—from wash-and-fold services to premium detergent options—can have a ripple effect on operations and financial health.
It’s about mastering the balance between cost, convenience, and customer satisfaction, and how it can elevate a laundry business to new heights.
To get a sense of how today’s self-service owners approach the task, American Coin-Op interviewed 10 of them from around the country and serving differing customer bases. Here’s more of what they had to say.
DIFFERENCES IN WASH-DRY-FOLD PRICING STRATEGY? (CONTINUED)
James (Clark) Sowers, who co-owns four laundromats and two drycleaning plants in South Dakota, says his businesses charge considerably more for WDF because it’s about paying for labor: “As I preach, there is always a better value somewhere. However, customers who come for WDF rarely complain about prices.”
“Our wash-dry-fold services are customized and we give customers many choices for detergents, stain fighters, fabric protectors, and added scent,” describes Todd Ofsink, whose New York-based Todd Layne Cleaners & Laundromat offers WDF pickup and delivery service throughout Manhattan. “We offer something that is a greater competitive advantage vs. customers doing their own laundry, and charge a larger premium.”
The significant amount of WDF business that James Radovic’s Jupiter (Fla.) Laundry does keeps his employees and equipment busy: “We have dedicated a few washers and dryers for attendant use only, but we have enough equipment to handle the walk-in customers. We also have different charges for pickup/delivery customers and for commercial customers.”
Travis Unema, who owns Brio Laundry in Bellingham, Washington, conducts time studies with his team to ensure profitability and quality controls, and to set up its procedures.
“Once you have your data points, you will be able to price WDF to maintain its profitability,” he says. “Main things to focus on (are) employee wages, time spent on orders, cost of goods sold per order, and utilities used per order.”
“Although I no longer provide a wash and fold service, when I did, I charged by the pound for most items and by the piece for items like comforters and rugs,” says Sharon Sager of her Sierra Madre (Calif.) Laundry. “In hindsight, I should have charged significantly more than I did. This is a premium service with high costs.
“I encourage owners who offer, or plan to offer, wash and fold services to take the time to determine what it costs them per pound to process a wash and fold order (including the labor, supplies, equipment costs, insurance, utilities, delivery vehicle costs, etc.). From there, it is much easier to determine a realistic price for this service.”
IN CLOSING
To conclude their interview, we asked the laundry owners if they cared to add anything else about laundromat pricing strategies.
“Simply put, you have to have a business plan for profitability,” says Radovic. “And you set your various prices to ensure long-term health of your enterprise. You might even have to reduce your prices in specific cases for increased customer support. Stay flexible, but keep in mind the long term.”
“Always try to find ways to add value to the customer experience,” advises Sager. “When you offer something above and beyond the competition, customers may appreciate the extra effort and accept the price increases more readily.”
“More so talking about WDF, offering unique and differentiated services allow you to compete on much more than price, allowing for larger profit margins,” Ofsink suggests.
“I don’t believe in raising prices to offset poor management,” Sowers states. “We need to have our management and expenses in order before we dump that burden on customers.
“I believe the customer deserves the quality we are charging them for. The store needs to be clean. The equipment needs to work. The customer needs to be safe. The product of wash-dry-fold needs to be excellent. If you want to … remain in business, you have a greater chance by providing the highest quality of service and to stand behind it and back it up.”
“Customers would rather pay more for a clean and safe place to do their laundry,” Unema says. “Price for the customer you want in your store. Then maintain that customer’s expectations by having clean, working equipment and they will be willing to pay for the experience they want.”
“I still believe as an industry, we are drastically underpricing our services and this negatively affects owners’ ability to reinvest as needed,” says Dave Menz, who owns and operates the Queen City Laundry chain of four full-service centers in the Cincinnati area. “The majority of the industry is still struggling [in my opinion] and that makes me sad.
“Raising our prices is essential to a healthy business and its ability to properly serve our community. Raise those prices, reinvest as needed, and serve your community at a high level. That’s the key to success in this industry!”
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
