free drying - smart or not??

[ajay]

In the days of when gas prices are killing us, we can't possibly think about offering free drying right?

Assuming on the average your drying revenue is approximately 25% to 35% of your gross income!!!

What if you raised your wash prices by that percentage?

What if, you had purchased machine that were at 200g force versus the 80g force(standard), squeezing more water out of the washers.

This thought was seeded by most recent article in the Journal magazine.

I'm curious to know if you'd think that the idea is still dumb?

ajay

[DuboisLaundry]

I think free dry is stupid and would never offer it myself

[TotoMongo]

In the days of when gas prices are killing us, we can't possibly think about offering free drying right?

How much have your gas prices risen in the past few quarters?

Toto

[Walter]

Ajay,

In my opinion, the problem with free dry is a long-term one. In the short-term, it can be a good marketing idea, but once customers get used to free-dry, it's very hard putting the toothpaste back in the tube. There are "free-dry" zones in several large metropolitan cities, and many of the mat owners involved feel that they're locked into something they can't get out of. Some owners who have attempted to start charging for drying again have been cut off at the knees when competitors don't go along. As a consequence, all the mat owners are trapped into continuing to offer a service for free that really isn't free, and there's only so much you can raise washer vend prices to compensate.

Obviously, if your mat is attended, you can always offer 50% off drying specials for a limited time - i.e., "back-to-school", etc.

Walter

[Kitty]

Price all equipment to be profitable.... PERIOD!

In this business like all business you will have certain types of equipment or services that will yeild more profit than others, you can reduce your margin during a promotional period and pass this savings to your customers in hopes of acheiving more quanitity of patrons in the long term, but free dry is not a good thing and industry wide is proving to be a very dangerous marketing program. The Journal should be reporting ways to avoid this type of program versus ways of intriguing the reader into this type of strategy.

[Glenn]

Natural Gas futures are historicly high prices. Retail gas price this winter are projected to be 60% higher than last winter. No brainer!

[Mungo Spike]

I'm curious to know if you'd think that the idea is still dumb?

ajay

Yup, it's dumb all right.

[ajay]

here's a new pricing model - that actually is 10% more than the money that is currently being made off of dryers:

old price 30% new price Actual increase(%)
55lb 4.25 1.275 6 41%
35lb 3.5 1.05 5 43%
25lb 2.75 0.825 4 45%
18lb 1.75 0.525 2 14%
9lb 1.5 0.45 2 33%

[Buddy_Amoroso]

I have customers who only use the dryers. They have washers but do not have dryers.

If you have a business paln based on "free drying" do you exclued those customers who only dry? or do you give away the drying?

buddy amoroso
baton rouge, LA

[ajay]

according to the article, there weren't too many abusers of free drying....but overall you just let it ride.

[pete f]

I never understood Free dry or the concept, and am glad owners around my market did not pick up that idea, maybe partly becuase most mats are unattended. I can think of a few ways to get out of that marketing if I was stuck in it, it won't be easy.