Originally posted – Dec 21, 2012
Looking for a great way to increase your revenue? Have your store open when it’s convenient for your customers.
Let’s assume you’re doing everything else right to please your customers. You have the right equipment mix. You provide great customer service. Your laundry is immaculate. Your machines are never out of order. And your vend prices are competitive.
Yet, for some reason, your revenue is flat or even declining. Perhaps this has to do with your business hours. One of the worst miscues of many small businesses is not being open when they’re needed.
“A number of factors should be taken into consideration prior to setting a store’s hours,” said Dick Ruel, national sales manager for Maytag Commercial Laundry. “Some of these factors include demographics, competing store hours, safety for store patrons and staffing. But the first thing a store owner needs to do is understand the customers’ needs.
“For some stores, the flow of customers after ‘typical business hours’ doesn’t make up for the additional utility and/or staffing costs needed to keep a store running 24 hours a day,” he continued. “For other stores, the situation is the exact opposite, and the additional hours yield an even larger return on the store owner’s original investment.”
Also, when choosing your business hours, consider whether or not your store will be attended.
If you’re attended, you’ll need to make sure you hire enough employees to cover each shift,” said IPSO distributor Todd Santoro, president of CleanWash Laundry Systems. “If your store will be unattended, you will need to make sure that the proper security measures are in place to protect your store and customers.”
Beyond that, there are, in essence, five major factors to consider when setting your store’s hours:
Staffing and Utility Costs: The additional increase in labor and utility expenses can often be offset by an increase in business, which typically occurs with extended hours.
“Owners can utilize late-night attendants to do heavy-duty cleaning, such as cleaning dryer lint screens and sewer lint traps, dusting ceiling fans, and cleaning bathrooms and floors, without disturbing customers during peak times,” explained Larry Vladimir, regional sales manager for Metropolitan Machinery Co., Inc. “This also gives the earlier shifts more time to concentrate on processing wash-and-fold orders, since their cleaning duties will be reduced.”
Safety Considerations: The more secure a store is perceived to be by customers, the better chance owners have to increase their business late at night. Security is critical to make customers comfortable.
In high-traffic areas, like downtowns, unattended stores can experience loitering problems, such as people coming in to watch TV or – in the winter months – to keep warm. This can create a safety concern for paying customers and cause them to take their business elsewhere, according to Santoro.
“A well-lit store and parking lot are crucial,” Vladimir said. “The customers need to be aware that the store is monitored with security cameras throughout. It’s also helpful if the store is card-operated or cashless, versus cash; this will give customers and attendants peace of mind knowing they will not be as vulnerable to criminals.”
Lifestyle Considerations: Twenty-four hour stores provide customers with many benefits, and in many instances, can actually be easier to manage, clean and keep secure, according to Vladimir.
For example, flexible store hours offer customers the convenience of doing their laundry when the store is not crowded, and a time when they may not have to bring their children with them.
“Some stores near colleges offer flexible hours, especially during exam times,” Santoro pointed out. “This way, students can come in, do their laundry and use the WiFi to study for exams.”
“Customers prefer going to stores that are open late, even if they normally go earlier in the evening,” Vladimir added. “They feel less pressure to get their laundry done faster because there is no attendant anxious to close. And, of course, those early risers who wish to do their laundry before going to work will appreciate the convenience.”
“In some municipalities, they reduce utility prices during off hours,” noted Mike Hurrell of Golden State Laundry Systems. “This might make it worthwhile to be open 24 hours. And, if you’re open 24 hours, you also get to pick up business from the shift workers who cannot make it in during regular hours.”
If a 24-hour store doesn’t fit your business plan, perhaps stay open 24 hours only on the weekends, which is typically the busiest time anyway.
Varying Vend Prices: If your laundry has equipment controls that allow you to offer time-of-day pricing, this gives you the ability to build your late-night business by discounting washes and dries.
“Laundry owners should increase their vend prices during the busiest times of day or busiest days of the week,” Hurrell said. “This will help spread out the customers on the busy days.”
“By adjusting your rates during times when your store has the fewest customers, you can draw in new customers and, hopefully, keep them coming back,” added Craig Kirchner, vice president of sales, marketing and customer service for Dexter Laundry. “It’s a great way to reduce downtime and increase the number of turns for your location. Your utility rates can also play a role in when you change pricing.”
Marketing Your Hours: Marketing your store hours is essential. The hours you’ve selected are to better serve your customers and to provide them with another reason to come to your store. Therefore, the hours of operation should be prominently displayed in the front of your store in very large lettering or on your exterior signage. Store hours also should be visible on your website, any social media pages, all e-mail marketing campaigns and any printed advertising.
“If you want customers to come, you have to let them know when you’re open,” Kirchner stated.
On the Front Lines
Every marketplace is slightly different, just like every laundry business varies just a bit from its competitors. So, we asked a number of store owners from across the country to explain (in their own words) their philosophies for setting profitable business hours:
Ron Kelley
EZ Coin Op
San Jose, Calif.
Hours: Vary, Based on Location
I have three locations. One is open 6 a.m. to 11 p.m.; another is open 5:30 a.m. to 11 p.m.; and the third is open 8 a.m. to 10 p.m. on Monday through Friday, and 7 a.m. to 10 p.m. on Saturday and Sunday.
The first two stores are on auto-time locks. The attendants arrive at 8 a.m. and cover the store for the balance of the day.
The third laundry is located in not as “safe” an area as the other two, so my attendants open when they arrive, and that store is attended the whole day. My main issue is safety.
Dan Marrazzo
Laundry Depot
Morrisville, Pa.
Hours: 24 Hours
All but one of our six stores are open 24 hours. However, our attendants provide change only until 11 p.m., to enhance security. Many shift workers like to come in at the end of their work day.
We used to close at 11 p.m., until we realized that a competitor who had longer hours was capturing the late-night crowd. When we adopted a 24-hour format, our revenues increased more than enough to justify the added cost. Our busiest hours are late mornings, but the 24-hour program brings in many shift workers, busy moms and other night owls. And, during the summer, several customers will come late at night to beat the heat.
If you’re confused about what hours your laundry should be open, try a 24-hour schedule on Friday and Saturday nights, and see how your customers respond. You might be pleasantly surprised. After all, you can sometimes make hay even when the sun isn’t shining.
Myron Krupa
Willmar Coin Laundry
Willmar, Minn.
Hours: 5 a.m. – 10 p.m.
My doors are on auto timers. And I set my hours based largely on the shifts of a large turkey plant in my marketplace. Some of the workers will put their laundry in their cars the night before and then come in before they go home.
I personally attend the laundry during the day.
John M. Brown
Self Suds Laundromat
Glenville, W.V.
Hours: 24 Hours
We’re open 24 hours, but we’re attended from noon to 8 p.m. We offer full-service drop-off laundry, and most customers come in after work to drop off or pick up their wash. Having an attendant on duty to accept and return laundry during times that are convenient for our customers is our primary concern.
We have changed our hours several times, trying to strike a good balance between meeting full-service customer needs and keeping the laundry clean during peak operating hours. Our current hours have been in place for just over a year, and our customers appreciate the late-hour counter service.
Joe Dan Reed
Splash ‘Em Out Coin Laundry
Lexington, Ken.
Hours: 7 a.m. – 11 p.m.
I believe that being consistent is the most important thing about setting business hours. Customers want to know when you are open, and they want to know they can count on you being open when you say you will. There is no excuse for a laundry not being open on time.
I offer a “happy hour” promotion from 7 a.m. to 4 p.m. on certain days of the week. Also, with Wednesday as our slowest day, I will discount some of my 20-pound frontloaders to $1.50 on that day to attract more customers; however, at the same time, I’ll raise the vend price on some of the other washers to compensate for this change.
Louise Mann
Wash Day Laundry
Austin, Texas
Hours: Vary, Based on Location
Our two South Austin locations are open 7 a.m. to 9 p.m., and our more rural store (in Wimberley, Texas) is open 8 a.m. to 9 p.m. Also, we close four days each year: Christmas, New Year’s Day, Thanksgiving and July 4 – and we usually close early on Christmas Eve.
We wanted our hours to be consistent and easy for customers to remember. We also didn’t want our employees to be working too late, due to safety considerations.
We started out opening our rural store at 7 a.m. too, but soon realized that the market is mainly retirees, so hardly anyone came in before 8 a.m. This change has helped our payroll costs.
We offer a Monday wash-and-fold special. We tried self-service specials in the past, but found that they did little to drive business.
We market our business hours on our website, Facebook, a local print ad, Foursquare, Yelp and on more than 50 other social media listings. And we will occasionally tweet our hours, when we run out of other content.
Nancy LaTona
Top Shelf Laundromat
Clarence Center, N.Y.
Hours: 24 Hours
We are in a high-income area. We chose our hours so that we wouldn’t have to worry about relying on staff to open and close the facility. Overall, our additional utility usage consists of only the added lighting, which is all energy-efficient. We lower our heating and/or air conditioning from 10 p.m. through 7 a.m. And we have 24-hour recorded security inside and out to make our patrons feel safe.
We used to offer lower prices and free dry after midnight, but we discontinued that because we were losing money. After eliminating the free dry and discounts, we didn’t experience any reduction in business
Robert E. Maes
Express Laundry Center
Houston, Texas
Hours: 7 a.m. – 10 p.m.
We are open every day, except Christmas. We also close early – at 6 p.m. – on Thanksgiving, Christmas Eve and New Year’s Eve.
Although we have a limited amount of business from 7 a.m. to 9 a.m., we still choose to open at 7 a.m. because our attendants have more time in the early morning to complete drop-off orders. Our last wash is not a problem because we automatically disable the washers at 9 p.m. with our laundry card system.
The latest version of our card system allows us to track sales by the hour. During the weekends, our busiest time is 11 a.m. to 3 p.m., and the single busiest hour is 12 p.m. to 1 p.m. During weekdays, our busiest time is 5 p.m. to 8 p.m., and the single busiest hour is 6 p.m. to 7 p.m.
Our card system allows us to provide time-of-day pricing. Currently, we offer discounts on some washers from 7 a.m. to 4 p.m., Tuesday through Thursday.
Roy Miller
Dry Dock Laundromat
Ingleside, Ill.
Hours: 7 a.m. – 10 p.m., Monday through Friday; and 7 a.m. – 8 p.m., Saturday and Sunday
We choose to close at 8 p.m. on the weekends so that our employees will have time for other things on those evenings. We don’t believe our market has a need for later hours.
John Henderson
Liberty Laundry
Broken Arrow, Okla.
Hours: 7 a.m. – 9 p.m., Monday through Saturday; and 11 a.m. – 9 p.m., Sunday
Our two stores are attended, and we maintain the same hours at both locations.
Yes, I know some people probably think I’m nuts for opening late on Sundays, and it’s not a decision we made lightly. However, going to church is important to me and my family, so from the very beginning, we have allowed time for ourselves and our employees to do that. In fact, I actually considered not opening at all on Sundays, but I guess I’m not as brave as the folks at Chick-fil-A. Despite the late opening time, Sunday is our biggest day of the week, so it really hasn’t hurt the bottom line.
We’ve made an effort to drive traffic to our slower times. My son and operations manager, Brian Henderson, recently printed a sign with two graphs showing our busiest times of the day and week, placing it in the window near a customer seating area – and, as a result, some customers have told us they actually changed their wash times.
Deb Piccirillo
Pottstown Laundromat
Pottstown, Pa.
Hours: 24 Hours
There are no templates out there for setting business hours in self-service laundries. The times are as different as the stores. There are, however, a number of factors that could help determine what might work best in certain situations. For me, flexibility is key in making any decision for my small, unattended store.
When I first opened in 2008, I checked around the area to see what the hours were for other laundromats and stores. No one was open all night. I asked other business owners what they thought about a 24-hour laundry, and the response was split: some thought it was crazy and some thought it was a great idea. Eventually, I decided to try staying open all weekend only – from 6 a.m. Friday until 11 p.m. on Monday, then stay open from 6 a.m. until 11 p.m. during the week.
As the word got out that my store was the only one in the area open 24 hours on the weekends, business during that time increased exponentially. Eventually, some customers – mostly second-shift and hotel workers – were asking me to stay open through the night during the week, too. Since my store is so small – just over 1,000 square feet – it made sense from a revenue standpoint to try it; being open longer had dollar potential, without even altering vend prices.
I didn’t advertise the hours shift last year, and I still don’t promote the fact that my store never closes because I’m afraid it might attract the wrong kind of customer.
My busiest times are still 7 a.m. to 10 a.m., and then 5 p.m. to 11 p.m. However, I get more than enough overnight customers to confirm that becoming a 24/7 laundry was the right move for me.
As the saying goes, “timing is everything.” Allowing Pottstown Laundromat to evolve on its own and show me its own best hours has contributed to my success.
Duane King
LMARIES Laundromat
Bowling Green, Ohio
Hours: 24 Hours
I run unattended most of the time, with attendants in the evening to do the heavy cleaning so that extra staffing isn’t needed. There are added utility costs, as the HVAC and hot water systems need to maintain their temperatures. The biggest expense is the lighting, but I still keep most of the lights on for security.
Being open 24/7 is easy for me because I don’t have to open or close. But it isn’t about what I want; it’s about what the customers want. And I have found that many customers work the third shift, and on their days off, they are still awake during those late night hours and they like to do their laundry on that schedule. Other customers like to get up very early before work and get their laundry done.
I don’t want to turn business away. I couldn’t imagine telling a customer that we are about to close, so they can’t start their laundry. What would they do? They’d probably go to a competitor, as they have everything loaded in their car and ready to do laundry.
Steve Koumaras
Suds Your Duds
Bernville, Pa.
Hours: Vary, Based on Location
I own four stores and my hours, depending on the store, are 6 a.m. – either 10 p.m. or 11 p.m.
Demographics certainly played a role in the final store-hours decision. Originally, when looking into being open 24 hours, I contacted my insurance company to inquire about rates, and the result would be higher rates due to possible equipment damage during the overnight hours.
I am contemplating looking into a card-swipe system for some of my facilities. Along with the cameras, we would have additional information as to who is using or damaging the equipment. This also helps to ensure a safer establishment for our customers, because the system allows only those with the swipe card to enter the building after our normal hours of operation.
Jason Dodge
Milwaukee Laundry
Milwaukee, Wis.
Hours: 7 a.m. – 10 p.m.
I’ve always considered going 24 hours. The main reasons I haven’t moved forward is safety, staffing and sleep. Let me explain. My laundromat is set off the road a bit, and I am concerned about some of the late-night trouble ending up in my store. I just don’t want to put my people in that situation.
The next reason is the added cost of having a 24-hour staff. Can I develop enough revenue to offset the additional employee expense? I don’t know. I do know that after 9 p.m. it can be a ghost town.
Thirdly, I really enjoy my sleep at night. I can imagine the phone ringing at 2 a.m. with an irate customer complaining about gum in their clothes. Odds are, I wouldn’t be thinking clearly at 2 a.m., and I may not have the best solution. Did I mention I like my sleep?
Also, I would have an additional nine hours of natural gas and electricity expenses to cover.
That’s the long way of saying that my current hours help me keep my expenses low… and my personal sanity intact.
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