Grow Your Laundry Business by Offering Today’s Homeowners What They Want
For years, the general consensus had been that competing self-service laundries shared a finite customer base within a given marketplace. Following this line of reasoning, a new store in the neighborhood simply sliced the “pieces of the pie” smaller for all competitors.
However, recent thinking has redirected the focus toward making that “pie” bigger for everyone. As an industry, it’s crucial to keep trying to grow the market for vended laundries, rather than obsessing over the cannibalization of existing business from one another.
Forget about the billions of dollars that go through apartment laundry rooms alone – facilities that provide essentially the same service that your laundry offers. What about the homeowners? All of these individuals, despite access to their own washers and dryers, remain potential targets for your laundry business.
If the industry could capture just a small percentage of those households currently doing their wash at home, the increase in sales volume would be through the roof.
Who Are These Customers?
So, who are these “non-traditional” customers? It’s the husband and wife with three kids. Perhaps they both work outside the home and, on Saturday, they have a huge pile of laundry with one washer and one dryer in the basement. Basically, they’re looking at an entire day’s job, especially considering that a home dryer can take 60 minutes just to dry a load of towels.
This family will go to the local laundromat – if it’s clean and relatively convenient – and fill anywhere from five to 10 washers. And they’ll do the whole weeks’ worth of laundry in about two hours. In such cases, time is more important to these customers than money.
“They come in because no one has washers big enough for down comforters and featherbeds – as well as dog beds, car mats, rugs, drapes, all that big stuff,” said Colleen Unema of Brio Laundry in Bellingham, Wash. “The other reason they come here is because they can do all of their laundry at once. And many of my customers also use our drop-and-dash service, when time is really tight or perhaps after coming home from a vacation.”
“The homeowners who come to my laundries come for a few different reasons,” explained Rick Johnson of Northside Laundry in Springdale, Ark. “Their homes may use well water, and that water isn’t clean enough to wash clothes. Or perhaps their washer or dryer is broken. Maybe they’re moving, and they’re in between houses or haven’t hooked up their washer and dryer yet. Another common reason is that their items are too large or too numerous for their home equipment.”
“The homeowners in my area patronize my laundry for a number of reasons,” agreed Tyesha Offiong of A&Q Laundry Room in Piscataway, N.J. “First, it simplifies the process of doing large loads of laundry, since it’s quicker and easier to use multiple machines simultaneously and dry everything at once. Washing one load at a time is time-consuming. Also, my delivery service is a pleasant surprise to the majority of my homeowner customers, and the concept of drop-off services often proves to be more useful for those with large loads of laundry.”
“There is always someone who has a broken washer and dryer at home,” added Bob Frandsen, who operates multiple Maytag Laundry locations and is based in Rush City, Minn. “We have eight stores, so we’ll probably get someone like that in at least one of our stores every week.”
What Do Homeowners Want?
Homeowners have choices. They can do some, most or all of their laundry at home. So, at the bare minimum, your store must be clean, with all of its washers and dryers operable, and preferably attended.
You need to give these potential customers a facility that they’re not embarrassed or afraid to go into.
First and foremost, your equipment mix is critical to attracting homeowners to your facility. Obviously, if you build a store with only small washers, all you can attract are customers who are forced to use a laundromat. However, when you install 30-, 40-, 50-, 75- and even 125-pound frontloading washers, you begin to be able to target a new demographic – as well as increasing your revenue per square foot.
“Bigger is better when it comes to non-regular customers doing their large items,” said Jeff Hooper of Salem Laundry Co. in Salem, Mass., who noted that homeowner customers represent anywhere between 5 percent to 40 percent of his overall business, depending on the particular store and location. “They tend to use the biggest washers and dryers, regardless of loading instructions or cost. In general, their logic is: ‘Better safe than sorry – I’ll use the big machine.'”
“We have five sizes of washers – from 20- to 80-pound capacity – that can handle just about anything the customer brings in,” said Ed Ellis of 1 Clean Laundry in St. Cloud, Fla. “And we’ve got three sizes of dryers to get homeowners in and out quickly.”
“Big machines are a real plus,” Unema concurred. “I would bet my homeowner crowd has never used any washer less than a 45-pounder. And I have large dryers that temperature-down when the moisture content goes down, so there are no browned whites or melted shoes.”
“Having large machines helps me attract homeowners, simply for the two main reasons they come here – big items and big families,” Johnson observed. “Obviously, larger items can’t be washed in home-style washers, and people with large families can knock out all of their laundry in a few hours at my store. I’ve seen customers roll up to our doors with 150 to 200 pounds of laundry in the back of their pickups.”
“Our mix of equipment was specifically chosen to anticipate the needs of homeowners who have smaller machines at home,” Offiong noted. “We looked at our demographics and competition to help us determine the best equipment ratio for our location. Also, with a smaller store of 1,600 square feet, it was important that we get the machine ratio correct to meet the needs of our community.”
Beyond large washers and dryers, homeowners are looking for an environment in which they’ll feel comfortable. They are very concerned with the experience at your store.
“The experience is important,” said Cathy Neilley of Spin Doctor Laundromat in Hamilton, N.J., who noted that about 15 percent of her overall business comes from homeowners who have their own washers and dryers. “So many people are working two or three jobs, taking care of children or perhaps sick relatives – and all they want to do at the end of the day is go home and collapse. Today’s laundromat owner is challenged to make washing clothes less of a chore and more of experience, to compete for that little down time the homeowner has available.”
“This is my book-reading, knitting, Yelping, iPad crowd,” said Unema, who estimated that homeowners account for just over 30 percent of her total business. “We have a beautiful space with great music, WiFi and plug-ins to recharge devices. This also is my machine texting crowd – they love that they can leave, run errands and know when to come back.”
“The comfort level must be high to attract the homeowner,” explained Ellis, who estimated that homeowners represent about 10 percent of his self-service business and a whopping 90 percent of his wash-dry-fold business. “It needs to be an easy and pleasant experience to get them to leave their homes. With that said, we have automatic doors, plenty of seating, cold air conditioning, friendly attendants, large machines right by front door and a lot of laundry carts.”
“This customer base is going to expect a clean, professional facility,” said Ken Barrett of Washin Golden Springs Coin Laundry in Anniston, Ala. “They probably haven’t been to a laundry for years, and it may not be a good memory. The parking lot and storefront are their first impressions – to get them in the door, keep those areas clean and inviting.”
“We placed a lot of emphasis on the décor and interior,” Offiong said. “During the renovation, we approached our color palette from our customers’ point of view. The wall colors are soothing, and the store is well lit with LED lights. This allows customers to clearly see stains on their clothing in order to properly pretreat them. We designed the store with straight lines of sight to minimize any blind spots within the laundromat. We also ensure that there is sufficient, comfortable seating throughout the store. In addition, we negotiated extra parking for our customers who drive to us.”
“My store is bright and cheery,” said Jock Jouvenat of Value Clean Laundromat in Roseburg, Ore. “Oregon is known for its gray skies, so we put in some skylights – everything is white or what we call ‘Value Clean yellow.’ It brightens up the place and has a very professional look to it.
“The fact that the store shows so well is one of the reasons I like to advertise on television. A picture is worth a thousand words, and seeing the store on TV is great for attracting homeowners who may not have been in a laundromat in a while.”
Value Clean also features water vending in conjunction with the self-service laundry.
“Although water shouldn’t be a problem in western Oregon, a lot of people’s wells run dry around this time of the year,” Jouvenat said. “So, we’ll get customers who will come in just for water, but I’ll give them a card for a free wash. And the laundry business grows from there.”
First-rate customer service and knowledgeable attendants can be another key to creating a customer experience that will get homeowners into their stores again and again.
“I try to answer the laundry phone as much as possible, as homeowners like to speak to a live person, and customer service is an important attribute to them,” said Rita Ferrero of Sierra Laundry in El Dorado Hills, Calif., where 15 percent of her customers are homeowners. “I think a knowledgeable staff is a key for all customers, but especially homeowners who don’t regularly use laundromats and may need some education.”
Unema explained that Brio Laundry has become known locally as the “go-to place for odd laundry” – such as small boat covers, nylon canopies, tents, wetsuits, drysuits, dog beds, etc. – and how to wash it.
“Even if we can’t wash these items, we usually know what to recommend,” she said.
“Homeowners don’t frequent laundromats, so they need some extra handholding from our attendants,” Ellis added, “to show them how to work the machines, how much soap to use and where to put the pods.”
“Many homeowners will be confused as to what machine to use, where to put the soap and how long it will take,” Barrett stated. “Having a staff that recognizes the apprehensions they may have and takes the time to step them through the process simply is the key to a pleasant experience.”
Several laundry operators also indicated that offering alternative payment options can be critical to attracting homeowners to your laundry business.
“Unlike our competition, we accept coins and cards on all of our machines, as well as cash and card payments for our wash-dry-fold service,” Ellis explained, pointing out that 70 percent of his drop-off customers pay via credit or debit card.
“Homeowners are our debit/credit crowd,” Unema said. “Also, about half of this group pays with a wash card – and they’ll often reload those cards online before they come, to save time.”
Spreading the Word
Studies have shown time and again that every five to six years, the equivalent of your entire marketplace will have moved from the area. Those business owners who claim that they have been at the same location for 20 years and, therefore, don’t need to advertise because everyone knows about them are, quite simply, misinformed.
In addition, promoting services such as wash-dry-fold (which can be a key to getting a foothold into the homeowner market) is important because your traditional laundry customers are not the same people who are likely to take advantage of your drop-off laundry service.
To truly grow your market, you have to let the people outside of your store know what you have on the inside. If you want to get homeowners out of the house, you need to mention that your laundry is an ideal facility to handle large items like blankets. Also, another tactic is to promote the time-saving convenience you offer: “Why spend your day in the house doing laundry?”
Consistency and repetition are the keys to successful advertising, as well as backing up your advertised claims. Word-of-mouth advertising will be positive only if you deliver what you have promised. If you advertise “The Biggest Washers in Town!” be sure you have plenty of your largest frontloaders in service and available when those homeowners show up with a week’s worth of laundry.
When you ask potential customers to try your laundry or wash-dry-fold service, you are asking them to change the way they’ve always handled their laundering. To break such an ingrained habit, you have to give them a good reason to do so.
“Marketing to homeowners needs to be focused differently than what you use for a traditional laundromat customer,” Barrett explained. “What problem are you trying to solve? Is their home equipment broken? Is the article too big for their home washer? Are they too busy and just don’t want to do laundry?
“One of the best methods I’ve used is placing a sign in front of the store for a couple of months a year that simply says: ‘Comforter Cleaning – You Know It’s Time.’ Comforters are an easy target and a great introduction of your services to someone with their own laundry equipment at home.
“As a member of the local Chamber of Commerce, I also provide gift cards as door prizes at meetings. This is another method to get new homeowner customers through the door and to show what we can do.”
Ellis markets his laundry through Facebook, as well as with a regular ad in the local church bulletin and a sponsorship of his area’s youth baseball program.
“We also advertise on the menu at a local diner, which is directly across from a competing laundry,” he explained. “And, because our big machines can handle horse blankets, we sponsor the bucking chute at two rodeo venues.”
Like Ellis, Unema uses Facebook – as well as Twitter and a twice-monthly email special – to reach homeowners.
“Every month, we sponsor a large community event, where we get mentioned on the radio,” she added. “We also do the usual – auctions, local sports teams, youth events and so on.”
“By far, our great word of mouth and our automated referral program has been the best marketing channel for us,” admitted Chris Moreno of Laundry Locker in San Francisco. “We also test and roll out marketing programs through YouTube, Google AdWords, mailers and online retargeting ads that have had solid ROI for us.”
Jouvenat explained that he’s been paying close attention to his Yelp reviews.
“We’ve only got a few reviews, but they’re all five stars,” he said.
And, whenever I ask someone how he or she found out about us, the response is often the fact that we’ve got five stars on Yelp.”
Beyond that, Jouvenat is currently gearing up for a massive radio, television and newspaper blitz to help introduce his new 90-pound washers to the homeowner market.
Of course, traditional coupon promotions are always effective, as well as advertising a special feature of your store or a particular service, such as same-day delivery. Direct-mail pieces, flyers and local newspaper inserts are all cost-effective vehicles to get the word out about your laundry.
Every spring and fall, Frandsen will mail “token notes” worth $5 off laundry services to his customer list – which includes everyone who has attended one of his grand opening events in the past, along with anybody who has ever filled out a refund card at one of his laundries. In addition, from time to time, through the bulletin boards at his unattended stores, he’ll ask customers for their contact information to help build his mailing list.
“We recently mailed out 3,300 of those to our customer base, and roughly 65 percent of those will come back to us,” Frandsen said.
Doing the Work for Them
One of the primary advantages of a wash-dry-fold service is that it attracts a broader customer base, such as the homeowner with a washer and dryer in the basement. Of course, more customers mean more profits. By embracing the concept of “one-stop shopping,” you can convert your laundry into more of a full-service operation.
“There are a lot of working couples making good money, but they’re busy traveling for work, or they’re going from soccer practice to music lessons,” said one store operator. “To outsource a time-consuming thing like laundry seems like a no-brainer. They outsource everything else. They have a maid to clean their house. They pick up food on the way home from work. It’s not inexpensive to get your laundry done, but eating out isn’t very cost-effective – and people do it all the time.”
Low start-up costs associated with a wash-dry-fold service is a major advantage. You’ve already made the major investments in your store’s location and equipment. Your additional costs will be in the training of your attendants, along with some general cleaning, packaging and processing supplies.
And, if you’re already running an attended operation, another advantage of offering wash-dry-fold is that you will upgrade your employees’ productivity.
“Wash-dry-fold is a growing part of our business,” Jouvenat explained. “In the next couple of months, we’ll also be offering an ironing and pressing service. I’m bringing in a retired cleaner to teach my employees how to do everything correctly. In addition, we’re looking at adding a pickup and delivery service.”
Tod Drescher of Laundro Magic in Boston thinks Jouvenat and others are on the right track when considering pickup and delivery.
“The homeowner is going to be a tough nut to crack, as far as trying to convince him or her to use the self-service side of the laundry business,” Drescher theorized. “A well-run laundry service, offering drycleaning pickup and delivery, probably has the best chance of penetrating the homeowner marketplace.”
Of course, there’s been a lot of buzz surround residential pickup and delivery lately. The burgeoning “app economy” has generated dozens of new service businesses, making help for just about any mundane chore available to consumers at their fingertips. As part of this app-driven, time-saving movement, several laundry apps have come online, promising on-demand pickup and delivery for wash-dry-fold services.
In addition to these on-demand home delivery businesses, locker-based services are another “next generation” laundry business that seems to be accelerating in popularity and sophistication. These services enable customers to drop off and pick up their laundry or drycleaning at secured lockers in convenient locations, such as their own apartment buildings.
“Pickup and delivery is a convenience, just like a house cleaner, a landscaper or a food delivery service,” said Rick Rome of WashClub, an app-based online laundry service with branches in 15 states. “After all, we all have vacuum cleaners in our houses, but who uses them? We all have coffeemakers sitting on our kitchen counters, but we often go to Starbucks for our morning cup. And there’s probably a lawn mower in your garage, too.
“However, people’s time is worth more than the cost of doing those tasks themselves. Honestly, there are many days where homeowners just don’t have the time or the energy to tackle mundane chores like washing clothes. As a result, offering an alternative solution can enable operator to garner a lot more business.”
Laundry Locker’s Moreno confirmed that residential pickup and delivery has been a huge advantage for Laundry Locker.
“Our home delivery routes and 24-hour lockers in apartment buildings account for a majority of our wash-dry-fold income at our laundry center,” he said. “But we still do a large amount of business from our commercial accounts.”
In all, Moreno estimated that about 40 percent of his wash-dry-fold delivery business comes from homeowners who have washers and dryers in their homes or apartment buildings – and roughly half of his walk-in business comes from individuals with laundry equipment on their properties.
A&Q Laundry Room, which gets nearly 10 percent of its business from the homeowner demographic, offers residential pickup and delivery.
“We understand that time is valuable, and we want to provide a convenient option to help make the homeowner’s life easier,” Offiong explained.
Whether or not you offer a home delivery service, one of the keys to running a smooth, cost-controlled, profitable wash-dry-fold operation is your employee-training program. Not only do you need to establish strict procedural guidelines, but you must instruct your attendants on how you want them to treat your customers.
Wash-dry-fold is labor-intensive. It’s the one thing that requires a little extra time selecting the personnel who are going to responsible for it.
Your wash-dry-fold service is just like any other retail business. If an employee mishandles a customer in any way, it is likely that customer will take his future business down the street.
To present a truly professional look to your service, develop a list of procedures that every attendant should follow with every load – from the proper amounts of soap, bleach and softener to be used to methods for spotting and pre-treating stains to how to fold towels. Train for uniformity.
However, while uniformity is essential, don’t go overboard. Allow your attendants some wiggle room to allow for special customer instructions. Remember that customers, especially homeowners, are not long for your service if they feel they can do a better job themselves.
Growing Your Homeowner Business
To summarize, here’s what today’s time-crunched homeowners are looking for in a self-service laundry:
• An equipment mix with an array of washers and dryers (especially larger machines) that are operable and available when they’re ready to use them.
• A comfortable, welcoming environment that offers an easy, non-threatening laundry experience.
• First-rate customer service and attendants with strong garment care and laundry equipment knowledge.
• Alternative payment options, which go beyond just the quarter.
Also, laundry owners serious about attracting regular, steady homeowner business will offer a professional wash-dry-fold program – and may even want to consider implementing a pickup and delivery service.
“Our industry is not growing organically with just renters,” said one laundry owner. “All of today’s newer apartments are built with in-unit washer and dryer hookups. The base for our core customer is not growing.
“To grow the business, we must reach out to separate demographic, and that’s where the homeowner comes in. They have more money, and they’re willing to spend it. But you have to offer them what they want and create a facility that doesn’t insult their intelligence.”
The fact of the matter is that many homeowners simply don’t consider self-service laundries an option. They still take their comforters to a drycleaner and pay $30 to get them cleaned.
Homeowners need to know all of the services you can provide them, and they need to understand that today’s local laundromat is not just for certain segments of the population – it’s for the entire community. It’s where they can play catch-up with their laundry chore and buy themselves more time to do what they really want to do.
If you can pull just a small percentage of those people out of their houses and into your store, the ramifications for your business are huge.
“Getting customers who have their own machines into your laundry is a short-term goal,” Barrett summed up. “But providing a pleasant experience so that they will want to return and also tell their friends and family members is the key to a successful long-term business relationship with this critical market segment.”
