SUN CITY WEST, Ariz. — I’m sharing five success factors in my column this month, and if you adhere to most or all of them, you should do very well with your laundromat business.
But where there is success, there is also failure. I also have five reasons for failure to share, and if you have experienced even just one of them, your mat may be headed for trouble.
Now, let’s focus on creating success.
1. LOCATION
The ideal location would:
Have great visibility — You want as many people as possible to see your mat every day as they drive by. Having good foot traffic is another factor.
Have great parking — Parking is more important for laundromats than for other retail stores, due to the fact that customers have to lug heavy loads of laundry. In both directions, I might add.
Offer convenience — You want to make it easy for people to use your mat. For instance, it’s nice if there’s a left-turn lane to access your mat from the opposite side of the street so people don’t have to make a U-turn to access your mat or the strip center it’s part of.
Speaking of convenience, I’m a big believer in automatic doors to make it easy for customers to enter and exit while carrying those loads of laundry. They are pricey, yes, but you’ll get your money back and more for many years.
Another plus is to locate on the sunny side of the street so your storefront is naturally illuminated. A lot more people will see it, and there’s also a reassuring psychological element. Who wants to be on the dark side of the street?
Customers are often pressed for time, so consider locating near other stores that enable customers to run errands while their machines are operating. Being near a supermarket is a big plus.
Appeal to the proper demographics — Study the demographics. How many people actually research the neighborhood? You should. Look for a market comprised of low- to middle-class-income renters who don’t have their own laundry machines.
One way you can determine if your target area really needs another mat is to visit all the mats in the immediate area. If they are run-down yet still busy, with at least 50% of machines in use on average when you visit, you just may have a good location. That’s as long as the rent/sale price is reasonable and most of the other success factors are there.
2. MAKE IT BEAUTIFUL
Early on in my career, I realized the mats that did very well were brand-new. People like to experience new things, like a new automobile! Proof of this is the fact that most run-down mats are not profitable. However, one could argue that they are the best mats to purchase since they can usually be bought cheap.
Therefore, your basic business principle should be to keep your mat looking like new. It’s that simple!
Many people will go out of their way to visit if your mat is clearly more beautiful, clean, convenient, well-lit and, once again, clean, with well-functioning machines that are either new or at least look it.
Regular maintenance is a must. If you keep your equipment looking new and clean, you’ll build a loyal customer base. It’s a huge plus, and it allows you to raise your prices, which keeps you in the black.
Notice I said “looking” new. There are ways you can rebuild your equipment to look new, such as replacing old decals, damaged buttons or front panels. Adding new folding tables and seating, doing creative decorating, even a simple paint job can help.
Put in some big wall mirrors to make the store beautiful and look bigger. I liked putting them on walls where there are folding tables, because people can “check themselves out.” Mirrors also boost safety since customers can see who’s approaching them from behind.
3. HIRE GREAT EMPLOYEES
Your employees are the face of your business. A bad employee can destroy morale and push customers away. Conversely, if you have honest, friendly people who like to smile, people will come to your mat to enjoy their friendly demeanor.
I know it’s hard to find great help, but they are out there. If you treat your crew well, and pay them more than your competitors, word gets around. You’ll attract and retain great workers.
I rarely had to advertise for help for two reasons: 1) My employees stayed with me for years, and 2) when I did have an opening, my employees always seemed to know someone suited for the job.
4. PROMOTE YOUR STORE
To not have an online presence in this day and age is just dumb. Most customers will look you up online before they decide which laundromat they want to use. You need to engage the public because your online presence is just as important as your storefront.
Even if you don’t have a website (which you should), you can claim your page on sites such as Google, Yelp and Facebook, so you have some control over what is said about your place. It’s not hard to market your place on those sites with promotions, great photos, etc.
Speaking of promotions, create some excitement by offering some genuine deals here and there. But change them up from time to time so they don’t get stale.
5. REINVEST IN NEW EQUIPMENT
The successful laundromat veterans I know aren’t afraid to reinvest in new equipment.
Yes, you can and should continually make your mat beautiful all along by making small improvements on a regular basis. However, eventually, you’ll need to install new equipment, because there’s only so much that decals and new rubber can do for you.
New equipment can really dazzle customers and, if done right, your machines can pay for themselves with utility savings and a surge in customers. You also raise your store’s resale value.
Plus, you have the opportunity to change your equipment mix, such as installing more large-capacity washers and dryers. Wouldn’t it be great to install a few 80- or 100-pound washers? If you have the only 100-pounders in your market, they’re a big draw for customers and easy to promote.
Coin is still king but you’ll want to invest in payment options that will take both coin and card.
Coming in Tuesday’s conclusion: the negative zone
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
