GARDEN GROVE, Calif. — Red Mountain Group, which specializes in retail redevelopment, recently developed its first high-speed vended laundry—Boulder Express Laundry Services—here in Garden Grove. Anchored by a Walmart store, the 3,800-square-foot laundry has garnered 10% month-over-month growth since startup, according to ownership.
In May 2020, Red Mountain expanded the Express Laundry brand—and business plan—to Las Vegas. Sales at that 4,600-square-foot location grew even more quickly.
Part 1 of this article explored Red Mountain’s entry into the laundry industry with the help of equipment distributors Continental Girbau West and Reliable Commercial Equipment, and its attempt to position and equip its two stores to stand apart from the competition. Let’s conclude:
CUSTOMIZED WASH, AND SANITIZATION
Customers in the two stores enjoy greater control over how their laundry is washed, thanks to the ProfitPlus® Control, which is standard on all Continental washers. The control brings a variety of washing options and cycle features to the customer, with four primary cycle options, including “Hot,” “Warm,” “Superwash,” and “Cold,” and optional extra cycles, including “Extra Wash,” “Extra Rinse,” and/or “Extra Spin.”
Each time a customer selects an “extra,” it adds to total vend price, helping build store revenue. Overall, customers choose an “extra” 25% of the time, according to Tony Mendoza, Boulder Express director of sales and operations, “and after they do it once, they choose that extra every time.”
Perhaps even more powerful—especially in light of the recent COVID-19 pandemic—is that every laundry load is sanitized. A San-O3-wash ozone system automatically injects ozone gas into each washer in order to effectively eradicate 99.9% of viruses, bacteria and molds in laundry. The result is customer safety and peace of mind. That investment has greatly impacted revenue.
“While other businesses in our shopping centers shut down, we excelled,” says Mendoza. “We noticed a significant increase in sales over the first few months of COVID-19 because people were enamored by ozone sanitizing. A massive influx of people washed household items, bedding and clothes. We’ve since become a mecca for sanitization.”
WDF WITH PICKUP AND DELIVERY
Sanitization also positively impacts full-service offerings, according to Red Mountain. Residential and commercial wash/dry/fold (WDF) already makes up 15-18 % of gross revenue. While the Las Vegas location enjoys partnerships with a number of hotels to provide concierge laundry service for transplant construction workers and plumbers, the Garden Grove store serves the gamut, from restaurants and vacation rentals to small hotels.
“Next year, we expect wash/dry/fold sales to jump to 25-35%,” says Mendoza.
At both laundries, a cloud-based POS system from Curbside Laundries automatically tracks the entire wash-and-fold process, as well as over-the-counter sales. It’s easy for attendants to use and allows customers to schedule orders online — making the process as efficient as possible.
With about 5,000 total customers, and a customer retention rate of 98%, the Boulder Express Laundry model is working, officials say; it’s sure to be applied at other Red Mountain Group properties into the future.
Miss Part 1? You can read it HERE
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].