Building and Promoting Your Laundromat’s Pickup-and-Delivery Business
Waleed Cope believes that we’ve only just scratched the surface of what residential laundry pickup and delivery can be.
“As more and more people incorporate more service-based businesses into their lifestyles – such as house cleaning, lawn care, dog walking, grocery shopping, meal prep, and others – the market for such personalized home laundry services also will continue to expand,” said the owner of The Soap Box, located in Brooklyn, N.Y. “We haven’t gotten anywhere close to market saturation for the residential PUD service.”
Paul Hansen, the owner of Hanco Enterprises, headquartered in Chicago, agreed.
“Just think about how many people now use services for their meals and food preparation – and many of those people probably actually enjoy cooking,” he noted. “Now, consider providing consumers with a way to eliminate a chore that very few people would ever say they actually enjoy, which is laundry.
“The future is bright for this segment of the industry, as more and more people look for ways to make their lives easier. Given that, I believe there will be some consolidation in this portion of the business, as more well-funded operations begin to enter this space.”
“I see endless possibilities for the growth of residential pickup and delivery, due to the COVID pandemic and the new stay-at-home work/life scenario that has resulted from it,” added Matt Clark of Happy Life Laundromat in Rockford, Ill. “In recent years, we’ve all learned that we can order almost any product or service from our mobile devices and have them delivered to our doorsteps. Today, people are looking for any type of service that can save them some personal time, especially at a reasonable price.”
Getting the Word Out
When it comes to getting out the word about your new pickup-and-delivery services for residential laundry, Cope warned against overlooking many of the tried-and-true marketing methods that have helped to successfully promote laundromats for years.
“Several old-school methods have been overlooked due to the highly digital world we live in,” he explained, “such methods as sending quality mailers to homes and businesses, placing flyers on cars and in mailboxes, setting up a table at high foot-traffic locations, and simply handing out literature about your new service. Of course, with your printed materials, be sure to include a way to track their effectiveness.”
Cope also strongly suggested that laundromat owners looking to build their PUD businesses be sure to take full advantage of their Google Business Profile.
“Definitely be sure it’s complete and full of all the information about your business and services,” he said. “Correctly include every single means by which a client can contact you and make certain to have a good rating from Google on your profile strength. Then, use your Google Business Profile to post information, photos, and events related to your store and delivery business.”
The Soap Box also incorporates the following into its PUD promotional plan, accord to Cope:
- Signage: post interior and exterior signs at your facility to inform customers that residential pickup and delivery is an option.
- Cross-promotions: ask other local businesses if you can leave flyers about your service in their businesses, and in turn agree to place their promotional materials in your laundry.
- Word-of-mouth advertising: get people to talk about the good experience they’ve had with your business.
- Referral programs: create a program where existing clients receive rewards for referring your service friends, family members, and coworkers.
- Google ads: although they aren’t as cheap as they used to be, they are still quite effective if utilized correctly.
“Our most effective promotional method has been word of mouth through user-generated content,” Cope said. “However, we’ve seen all of these methods work for us for numerous reasons – the main one I would point to is consistency, with the marketing and our service quality. When people see our name in different places, it sticks with them. For instance, think of Coca-Cola; it has about 48 percent market share, but you don’t see that brand taking its foot off the gas of consistently putting the brand in front of people. We try to stay consistent with the things that are working steadily for us – and, of course, the quality of our product and services has to match what they see in our marketing. Otherwise, they’ll only try us once.”
Sharon Brinks, who operates Laundry Express in Wichita, Kan., advised laundry owners to explore different avenues of marketing to their local customers to see what works best for their specific operations and markets.
“Make it trackable,” Brinks noted. “For example, offer a different promo code for each type of offer, and then see what works. Above all, always ‘WOW!’ your customers with quality and service.”
For her PUD business, Brinks said that Google Ads, optimized SEO for Laundry Express, and good old-fashioned word of mouth have worked best.
“We are in a market where people don’t realize PUD is even a ‘thing,’ so getting the word out has been a bit of a challenge,” she explained. “However, our consistent quality gets people talking and recommending us to their friends.”
After trying out several different marketing strategies and campaigns throughout the years, Joe Dan Reed has discovered that the internet and digital marketing provide the strongest results for his PUD service at Splash ’Em Out Laundromats, based in Lexington, Ky.
“We have hired a company that truly understands pickup and delivery and wash-dry-fold,” Reed said. “We set aside $4,500 a month to market to this select group of laundry customers. We’ve discovered that it’s most successful to market to those looking for our service, rather than marketing to those who aren’t necessarily looking for the service.
“We’ve found it most effective to promote our services through Google – while, for us, postcards, radio spots and television advertising just didn’t work as well.
Reed also suggests spending some time in the online laundromat forums, and simply asking other operators what they’re doing to promote their PUD businesses.
“See if any of these ideas might be beneficial in your area, to your business,” he said. “Of course, not all marketing ideas will work in all areas, so know your customers and your particular customer base.”
For Clark, SEO targeting of keywords for pickup and delivery in one’s local market is the way to go to promote PUD. He also suggested the use of in-store signage, brochures, and coupons attached to completed wash-dry-fold orders. In addition, store owners should maximize their usage of Facebook, Google Business Profiles and Google Ads, he advised.
Hansen agreed with Clark and many other PUD operators that Google Ads is one of the best ways to promote his business.
“The one caveat is that you really need an expert in order to get the most out of it,” he explained. “With some digital marketing expertise, you can hyper-target your ideal customers using AdWords. I’ve also used Facebook with some success.
Another way to promote and advertise your PUD business, Hansen stated, is make sure that your vehicles are professionally and attractively wrapped so that you essentially have created a fleet of “rolling billboards” traveling throughout your marketplace.
Don’t Do This!
Unfortunately, mistakes are going to happen when launching and building a new service like residential pickup and delivery. The key is to try to sidestep any clear pitfalls to your business.
Brinks warned laundromat owners to perfect their wash-dry-fold business before incorporating pickup and delivery into the mix.
“Not having your in-store WDF process nailed down first – with consistently high quality and accuracy – is a huge mistake,” she said. “Only when you are really good at processing laundry in-store should you begin to attempt to add the logistics of a PUD service.”
In addition, Clark cautioned against using an old, outdated POS system and/or a paper tickets.
“Simply put, this will prevent your growth, and it will greatly increase the chance of committing errors,” he said.
According to Reed, there are two common pitfalls that will sink your PUD service before you ever get started: (1) not having a solid processing game plan, and (2) neglecting to purchase route software.
“Looking professional is very important,” Reed noted. “So, it’s crucial to have everything neat and folded the same way each time and packaged professionally. Also, efficiency is critical, because you are running a route now.”
“The biggest mistake I have seen is to mistakenly believe that pickup and delivery is merely an easy extension of your existing drop-off service,” Hansen concurred. “Pickup and delivery is really a different animal, and it requires a lot of planning and management.”
For Cope, one of the most critical mistakes is to grow too big too quickly, with regard to the size of the pickup-and-delivery area.
“It’s much better to focus on a smaller geographic area and to dominate it before expanding out,” he said. “Also, it’s a mistake to think that you need to have a bunch of fancy equipment and vans to get started. You can start with whatever type of vehicle you have now, and as your business grows, simply buy additional equipment and vehicles. Perhaps to start with hiring drivers who use their own personal vehicles – leverage the gig economy to handle some of the deliveries while you grow the PUD portion of your business. But, no doubt, be sure you have the proper insurance to cover them while they’re working for you.”
Another clear miscue is not providing an easy way for clients to contact your laundromat when they want to schedule a pickup or delivery. Be sure to purchase PUD software or create a simple scheduling form on your website that clients can easily fill out in order to take advantage of your service.
As far as pricing your service, Cope warned other operators to steer clear of two specific methods for setting their prices.
“Don’t try to offer the lowest price in your area and then think that, just because you’re lower, PUD customers will leave their current providers and flock to you,” he said. “Also, basing your price solely on what your competitors are charging is another mistake. Yes, you should be aware of what the current rates are in your area, but your prices should be based on what it costs you to run your business and your profit margins.”
Meeting the Challenges
You’ll definitely face some obstacles as you market and start to grow your residential pickup-and-delivery business, especially when compared to a self-service operation or even a drop-off laundry model.
Cope points for four clear operational challenges many store owners will face when first beginning to process residential PUD laundry at their laundromats:
1. The layout and flow of a standard laundromat. Laundromats are designed for self-service customers to wash, dry, and fold their clothing and linens – which can cause logistical challenges as a WDF pickup-and-delivery business grows.
2. Self-service customers come first. Your wash-dry-fold team has to wait to use the washers and dryers, or work around your walk-in customers. Otherwise, if your self-service patrons see you filling up half of the machines in your store with WDF loads, they might get a little upset – and they may even decide to go somewhere else to do their laundry in the future.
3. Storage can be an issue. As your pickup-and-delivery business grows, you will need enough space to store clean and dirty garments as they work their way through the various phases of your PUD process.
4. Growing PUD demand can overcome your business’ capacity.
“When we built the laundromat, we planned to offer wash-dry-fold, but we didn’t expect to do pickup and delivery – or else we would have laid out the storage areas differently,” Brinks explained. “We are a bit cramped for space at the moment, but we have plans to alleviate the problem later this year.
“We also have branded the PUD service separately from the laundromat – which is called The Laundry Station – so running advertising for both segments of the business has been a challenge for me, personally, to stay on top of.”
For Hansen, the biggest challenge was to develop a solid process for assuring that the orders move smoothly through the facility.
“Keeping track of items and making sure not to lose or mix up customers’ laundry requires a well-thought-out system,” he said. “Also, as you grow, a big challenge is to not step on your retail customers by using many of the machines and getting in their way. At my business, we process all of our orders during the overnight hours, when there are few, if any, customers here. This enables the staff to focus on processing orders, rather than having to deal with customer service issues.”
Some common pain points for those starting a PUD business, Clark noted, are learning to use a new software system, which may take a few weeks, and occasionally not having enough available washers and dryers for self-service customers and all of your wash-dry-folder orders.
Reed suggested that many of the operational challenges the simply come with territory of launching a fledgling pickup-and-delivery service can be alleviated through good PUD software, which will enable operators to more successfully scale their companies.
“For example, the software we use features all of the tools needed to take in an order, package it, and then deliver it. And, once the order gets to our driver, the software will download the quickest and most efficient route to take.”
Keys to Success
As you get started, here’s a collection of no-nonsense tips, strategies and simple hacks for successfully processing WDF loads for pickup and delivery:
- Track everything.
- Choose one method of processing your wash-dry-fold laundry, and stick with it.
- Set standards and guidelines for the entire process. Letting your attendants do it “their way” is a recipe for disaster, especially as your business grows.
- Install cameras at key areas in order to track and monitor the WDF process. I can’t even remember how many times going back and reviewing that footage has saved us.
- Train your attendants to document everything – weight, color of bags, date, time, machine numbers… everything!
- Label everything. Anything an order touches or is placed in should be labeled with that order’s information.
- Take photos of damaged garments, and notify the client before washing.
- Use good judgment. It’s best not to wash or dry something if you’re unsure whether or not will survive the WDF process without being damaged. Clients will be happy you contacted them to ask about their garments. It’s just another way of showing that you care.
Waleed Cope, The Soap Box, Brooklyn, N.Y.
- I can’t imagine keeping track of orders without a software system built for pickup and delivery. As with in-store wash-dry-fold, never ever mix up orders – and, when delivering, make sure you have all of the customer’s order in the van. You don’t want to have to make a second trip because you forgot something.
Sharon Brinks, Laundry Express, Wichita, Kan.
- Carefully organize your customers’ orders ahead of time. Also, we shrink-wrap our orders to keep them dry and folded neatly – and we place a coupon inside for a special offer to sign up for our recurring online service.
Matt Clark, Happy Life Laundromat, Rockford, Ill.
- With residential wash-dry-fold, it’s important to make the orders look professional. In all of our orders, we have a nice laundry bag that we give to all of our WDF customers. The orders are processed and placed in clear plastic and then put back into that bag with the name of the specific customer on the outside. We don’t allow any handwritten notes on anything, which contributes to a more professional appearance overall. Another tip is to offer customers same-day service for your drop-off laundry business, and next-day service for your pickup-and-delivery segment. Also, always have your team in uniform and dressed nicely for your customers, who want to be greeted with a smile and a nice, clean store. Presentation is everything. After all, would you drop off your clothes at a dirty store, or with someone who doesn’t present his or her company well?
Joe Dan Reed, Splash ’Em Out Laundromat, Lexington, Ky.
- One of the main factors to profitability is providing a consistent, professionally finished product. Keep in mind how your packaging of orders is presented. Also, you need to have a quality software product running your pickup-and-delivery operations. No doubt, there are quite a few systems on the market, and all of them have their advantages and disadvantages. So, make a list of all the “must-haves” you think you want, and then find a system that best meets your needs.
Paul Hansen, Hanco Enterprises, Chicago
‘This is the Future’
For those still on the fence with regard to pickup and delivery, Cope shared this story:
“A colleague of mine had nine friends over to his house over the holidays, and he mentioned how he was planning to launch a laundry pickup-and-delivery business. All nine of them asked if this was something new he was bringing to the market. When he stated that it wasn’t, each person admitted that they’d never heard of a laundry service that would come to their homes to pick up their laundry. So, if nine professional men have no idea what laundry pickup and delivery is, we have a whole lot of room for growth – and success.”
Brinks believes that PUD services will continue to grow as people’s lives continue to get busier and busier.
“Consumers realize that this is a great way to get back some of that lost time,” she said.
“This is where the future is headed,” Reed added. “I believe people are time-poor, and doing laundry is one task that they don’t have to worry about any longer.
“Our wash-dry-fold and pickup-and-delivery business is growing daily and weekly. People still come in and marvel, ‘I can’t believe we can drop off our clothes and not worry about it.’ This is the future.”
