Previously Published Nov 21, 2013
Two years prior to opening Beverly’s Laundromat in Los Angeles, I visited more than 400 laundries throughout the U.S. and Canada to assess how I could exceed customer expectations in a very competitive market.
With pen and survey in hand, I made notes on each location: cleanliness, pricing, equipment, attendants, etc. My notes became the backdrop for my business plan and strongly affected the areas in which I knew I needed to excel. And, with more than 50 stores within just a mile and a half of my location, I really needed to tweak my laundry services and determine what my unique selling positions would include.
When I shared with other local owners that I’d be offering a quality wash-dry-fold service at premium pricing, one operator responded, “You’ll never be successful around here. I tried it, and it didn’t work.”
My response: “You have no idea who I am and what I can do!” Then I thanked her and walked away.
When I opened my 3,000-square-foot laundry in May 2001, I knew my wash-dry-fold services would exceed customer expectations because the “competition” offered what I considered, at best, a very mediocre product. By contrast, my goal has always been to create raving fans who would be so pleased with the production and the exceptional customer service that they would share and promote the service to their friends, thus increasing our customer base.
Never for a moment did I embrace the low-pricing concept to garner more customers. Quantity over quality may work for some, but I’ve never recommended this strategy.
If I charge $2 per pound – with a 15-pound minimum – and my competitor charges only $1 per pound, he or she will need two customer orders (including additional labor, products, utilities and equipment usage) to receive the same $30 in revenue.
What’s more, if I were to charge the same as my competition, what would prompt a customer to utilize my services, if the quality of both is the same? In other words, if price is all that matters to a customer, when a new lower-priced competitor opens up, my “loyal customer” likely will be lured away.
Legendary retailer J.C. Penney may have summed it up best when he stated, “A merchant who approaches business with the idea of serving the public well has nothing to fear from the competition.”
Do Your Homework
As a part of any wash-dry-fold due diligence effort, I always recommend checking out the competition’s service. However, it amazes me how many owners will offer wash-dry-fold services while being completely clueless as to the quality of their competitors’ products.
First, I call the store to inquire about its services. Is the attendant pleasant, helpful and knowledgeable? Or does she just want to get off the phone as quickly as possible?
Next, I bring in a 12-pound load with a mixture of colors, textures and different items to be completed. I make a mental note of how everything is handled and how thorough and helpful the attendant is.
When I bring the finished product back to my store, I look at every aspect of the job and jot down notes on my “comparison chart” – the good, the bad and the really ugly. And I’ve seen some very poor excuses for drop-off laundry services – torn towels, items left in pockets, mystery ink stains, wet garments, disorganized packaging, sloppy folding, excessive wrinkles, mysterious odors, someone else’s underwear and on and on.
I’ve discovered that many laundry owners offer wash-dry-fold services; however, very few spend the time necessary to create an outstanding, unique laundry experience that will result in “raving fans.”
Does Your Market Have Enough Drop-Off Customers?
Customers are everywhere, but not everyone is an ideal drop-off laundry customer. Yes, all of your wash-dry-fold customers are potential self-service customers, but not vice versa.
For example, a working mother of four may really appreciate having someone do her family’s laundry for her, but realistically it may not be in the budget. Fixed-income seniors with 10 pounds of dirty clothes may have the spare time to do their own laundry; plus, they may not be able to afford the “luxury” of a drop-off service. Young singles just entering the job market would probably prefer to do their own laundry and splurge in other areas, such as entertainment.
The majority of apartment dwellers do their laundry in their buildings – regardless of laundry room conditions – simply because it’s more convenient. In addition, homeowners typically use their own laundry equipment most of the time, venturing out to the laundromat only when larger machines are needed or when their own washers and dryers are not working.
So, what customer base should you target with your new wash-dry-fold service?
Personally, because we’re located in a heavily populated, urban neighborhood, our customer base draws from a huge melting pot – everything from low-income, unskilled workers to upscale millennials in the entertainment industry. Over the last 12 years, our wash-dry-fold customer base has been as follows: blue-collar single males, college students, tourists, hotel guests, convention-related vendors, small hotels, restaurants, other small businesses, and working couples with no children and disposable incomes.
The majority of these people live within five miles of the store. However, because we also offer delivery services, our customer base has been expanded to a 12-mile radius, resulting in a greater customer base.
Let’s Get Physical
Completing your due diligence and having qualified your ideal customer base, it’s now time to assess the physical parameters required to handle a professional wash-dry-fold service.
Despite what you may have heard, a 3,000-square-foot store is not required. I’ve visited laundries with a designated drop-off space as small as 200 square feet, with hundreds of pounds processed daily.
Most owners look to their self-service customer revenue as their “bread and butter” – and, accommodate these customers, the staff will often refrain from monopolizing the equipment and counter space so that the walk-in customers aren’t inconvenienced.
Some owners have the attendants come in an hour before the store opens, so they can wash the orders; this way, when customers begin to arrive, they can use the washers while the wash-dry-fold orders are in the dryers. Other operators, who have a lot of walk-in traffic, prefer to have the drop-off orders processed in the evening.
I recently visited a small laundromat that addressed its space challenge by placing a small storage trailer in the parking lot, adjacent to the store.
We require full payment when laundry is dropped off – and this is partially because most people, if they have already paid, will pick up their orders when they’re finished, rather than waiting until payday. When an order is completed, we call or email the customer to encourage a prompt pickup.
Now that we’ve explored the three main research areas regarding starting a wash-dry-fold service within a laundromat – due diligence, customer base and physical requirements – the decision is yours.
Is a wash-dry-fold service a viable option for you and your store?
