Coinmach raising prices

[William]

http://money.cnn.com/2005/08/24/news/economy/laundry_costs/index.htm

[Kitty]

Thank you William,

Way to stay on top of things!

I still can't beilieve stores are not progressing toward raising their vend pricing. I hope when I drive past the areas mats all the laudromats around me will have raised their vend prices accordingly and not been so foolish to hold out on there competitor to see what they do about these insane utility rates. Absorbinging these costs too long could be the kiss of death for some mats and that death comes sneakily and eerily quiet.

[Rondo]

Kitty, it's good to see people are finally recognizing a clear and present problem that is looming in our industry. You people out there with $1.00 top loaders and 10 - 12 min dryers have better wake up fast or face trying to sale your equipment in the back of a trade magazine.

By holding back and not keeping current with increasing utility cost your hurting the rest of us that want to survive this oil & gas crisis (yes it is a crisis).

[amartlock]

My mat is in a market that for some reason is still at $.25 for 10 min of dry time. 20 miles away in the next town, the market is $.25 for 8 min of dry time. Our wash prices are pretty competitive however I don't know how to proceed with reducing dry times for each quarter when the competition (it's a big area with tens of mats) seems to be staying at 10 minutes. Does anyone out there have any experience with this? Could I simply drop my dry time to 9 minutes and expect my customers will stay with me?

[laundryboy]

This is a perception issue with the customer. In many, many cases, if it took three quarters to dry at 10 minutes/.25 - then it will probably still take three quarters.

When you raise your dryer price, make sure the units are clean and running efficiently, your customers cost will stay the same and you will use less gas.

At some point, it will cost your customers an additional quarter. And yes, they will complain.

I'm moving to 6 min/.25 at three stores by the end of the month. One store done and only a couple customers noticed.

[Kitty]

I think the issue lies within the fear of most stores owners uncertainity with their competitors.

Most store owners do not/will not raise pricing for fear raising pricing will drive customers to their competitors doors or at least they do not want to be the first to raise the pricing in the market.

I walk into many many laundromats and I am surprised to see what type of vend pricing these guys have and wonder where they came up with them. I know the vend pricing in my own area befuddles me...from dry time to actual vend pricing per washer capacity I just do not understand why store owners do not want to generate and profit the most they can from their machines. I thought this was the name of the game. With the profit margins dwindling and utility rates climbing and costs of doing business increasing everday the business man that does not pay attention to this simple concept of pricing competively and profitably may actually find hes not vending himself profitably at all!

[srhaz]

Quote; "Coinmach last year logged revenue of $538.6 million, is cashflow positive but hasn't logged a profit in four years".


A cash business not making a profit in four years. Now where have I heard that before.

[Fred50]

If anyone has any hesitation about raising prices, it should go away after you read this.

Overnight trading on NYMEX Spot Nat Gas is now $11.71. This is not a typo, it is up almost 20% since Friday's close!!!

Note that overnight trading can be thin and it probably is a bit overblown (no pun intended!) due to the hurricane screaming up the gulf, but I don't think this bodes well for the future of gas prices. I think that "free dry" and .25 for 10 minutes on a dryer may go the way of the buggy whip.

What do you folks think now?

[Rondo]

Mark, you really know how the cheer a man up. Geez.

Today I was repairing my Utracade game machine at one of my stores and a young girl came over and asked me if there was another Laundromat near by and I said no. She said that $2.00 for a top loader is ridiculous and that where she is from their only .50. Then I asked her where are you from and she said NY City.

How in the Frigging Hell can anyone vend a top loader for 50 cents.

[DuboisLaundry]

...
She said that $2.00 for a top loader is ridiculous and that where she is from their only .50. Then I asked her where are you from and she said NY City.

How in the Frigging Hell can anyone vend a top loader for 50 cents.

in NYC her neighborhood mat may have a denser poulation base probably yielding more turns per day. did you tell her she should go back if its so much better?

I'm thinking of adding a sign ( I know - i have too many already )
something to the effect "We sincerely hope you find everything satisfactory, if not let us know and we can give you directions the next laundromat" I'm not too worried about losing customers because the nearest mat is 80 miles away.

[Anonymous]

In January, I moved the dry time from 8 minutes to 7. Just received my lastest gas bill and after a rate increse in Sept. (PUC Approved), we noticed a slight increase again.

Looks like I will be moving it to 6 minutes for the quarter.

My store is in Allentown, PA. Anyone else thinking about the same dry times?

[Monarch]

I don't where the young lady was from in New York, but we have lately been selling the behoozies out of Vertical Fifteens. I have customers in the Great Lakes areas, the West Coast and NY/NJ buying these to put on top loaders at $2.25 and $2.50. Only way to get a top loader over $2.00 as they have no accumulators. I expect to see this particular product have boom sales over the next few months. It is just so sad how many timid souls there are that do not realize that 10 turns at $1.00 do not make you the money that 8 turns at $1.50 would. I am active on another forum and one of the contributors there has a tagline in his signature that says it all.

"Be worth what you charge, and charge what you are worth."

Otherwise you are just taking up space.

Norman

[pete f]

In January, I moved the dry time from 8 minutes to 7. Just received my lastest gas bill and after a rate increse in Sept. (PUC Approved), we noticed a slight increase again.

Looks like I will be moving it to 6 minutes for the quarter.

My store is in Allentown, PA. Anyone else thinking about the same dry times?

I have most stores at 6 min now, one at 5.15 min, still this barley covers 1/2 the cost of the gas now compared to the 7 1/2-6 1/2 range I had them at.

[Anonymous]

.....
Overnight trading on NYMEX Spot Nat Gas is now $11.71. This is not a typo, it is up almost 20% since Friday's close!!!.....

Mark, that sounds like a big drop in price. I recall hearing on the radio a few days ago that the spot price had crossed the $14 barrier. If you could promise me that we would only see $11.71 this winter you would make me one happy camper!

The high gas prices are really a blessing wrapped as a problem. They are an opportunity for us to raise prices without much pushback and may further kill the stupid competition that continues to underprice their service.