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.
PRICING ALERT?
Do you alert your customers to price changes? If so, how?
“We alert customers to price changes on our website and with signage in our storefronts,” says Todd Ofsink, of New York City-based Todd Layne Cleaners & Laundromat.
“For retail, no notice is given,” says Travis Unema, who owns Brio Laundry in Bellingham, Washington. “Some customers will ask why, some will be frustrated, but most understand! If a customer is set up with a business account or a business agreement, then I will inform them ahead of time.”
“We let our customers know via email (if we have their email address) and with signage,” says Kristyn Van Ostern, who co-owns Manchester, New Hampshire’s Wash Street laundromat. “If the promotion is available via [our payment system], we advertise it in-app as well.”
“I say nothing when I raise prices,” states Patrick Dreis, who owns three Southern California laundromats and a commercial plant.
“Our pricing announcement strategies are as follows: For any service that is prepay, they are notified before their next service,” describes Dave Menz, who owns and operates the Queen City Laundry chain of four full-service centers in the Cincinnati area. “For us, that’s self-serve, drop-off service, vending and really anything but pickup and delivery. For pickup and delivery, we notify customers of price increases both two weeks out, and again one week out.”
“I don’t alert clients,” says Jan Barlow, whose Jan’s Professional Dry Cleaners in Clio, Michigan, includes an on-site laundromat. “Typically, we may have a promotion to help cushion the increase. The present economy and the overall media has been explaining costs, so we really don’t have much to add to the discussion.”
“Our pricing is noted on our machines, and we really don’t change them often at all,” says James (Clark) Sowers, who co-owns four laundromats and two drycleaning plants in South Dakota.
“Generally no. I don’t mention it, and the customers seldom comment on the change,” says Sharon Sager of her Sierra Madre (Calif.) Laundry. “I did, however, feel it was important to explain why I raised dryer prices during the gas utility price crisis in 2022-23.”
“The last price increase we had (about a year ago), we posted a general notice on our major cost increases (natural gas, electric and water/sewer utilities), showing the rate of increase we were experiencing,” explains James Radovic, who owns Jupiter (Fla.) Laundry. “I felt our customers were seeing the same thing personally and could relate to the reasons. We had very little customer pushback on this, once we shared our rationale.”
MOST PALATABLE PROMOTION?
What type of pricing promotion do you think customers favor most?
“Customers love free wash days where all washers are free for a limited time,” Menz says. “This could be a customer appreciation day, or a grand opening. For card system and loyalty app stores, they also love ‘double your money’ promotions.
“We also recently installed [a] direct injection system for self-serve customers. After install, we offered the service with free detergent and softener for the first 60 days and that was a huge hit! We attracted many new customers that stayed after the promo and were able to accelerate adoption of these new cycle modifiers as well.”
“What I like to do is to buy customers a wash when I am in the store,” Sowers offers. “It’s personal and an opportunity to have a face-to-face relationship with them.”
Wash Street’s customers tend to favor promotions that provide immediate savings or added value, according to Van Ostern.
“This includes discounts during off-peak hours, loyalty programs that offer free washes after a certain number of visits, and bundled services such as discounts on wash-and-fold services when combined with self-service washes,” she describes. “Promotions that are easy to understand and use are also highly favored.”
“We have had to navigate the delicate balance of a booming commercial and WDF business with the needs of our self-service customers,” says Kelly Castillo. With a partner, she operates Bubbles Laundry Service in Anaheim, California. “We do not offer promotions on our slow self-service days simply because we prefer to utilize those slow times to process our contract orders, ensuring we have machines available for our self-service customers during our busy times.”
“For drop/fold customers, we have a customer loyalty program built around the frequency of [the] customer’s drop-off,” Radovic says. “For walk-in customers, we offer free soap on Tuesdays, Wednesdays and Thursdays. For commercial customers, we generally offer a reduced rate. We are researching additional items, like discounts for customers who bring in new customers, and offering email discount coupons.”
“Of all the pricing promotions that we have offered for self-serve laundry, offering free detergent and a discount for washers on Fridays have been our most successful,” Ofsink says.
“Setting your pricing schedule to be consistent and calculated,” says Unema. “Consistency calms customers! Don’t feel bad about raising prices; put it on your calendar and just do it.”
“I like having the ability on modern machines to have time-of-day pricing,” Dreis says. “I’ve heard positive feedback from customers about this.”
“We promote additional services and stay out of cost discussions,” Barlow states. “Our philosophy is service, quality and price. You get two of these three choices. Our focus is service and quality. We don’t discuss price.”
“I used to offer promotions when I had a fluff-and-fold service,” recalls Sager. “A favorite was comforter discounts in the fall and the spring. On the self-service side, my payment system offers ways to promote customer loyalty that customers can easily track themselves. Although it is not an official promotion, I’m always eager to spot someone soap/laundry products if they are new or have forgotten theirs. This really means a lot to them.”
Coming up Tuesday in Part 3: Some successful pricing decisions, and how WDF pricing strategies can differ from self-service
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
