Increase in Utility rates

[Kitty]

What are your immediate plans to do about the increase in your gas rates?

I suspect you guys are panicking? What are you doing to offset these increases?

Kitty

[amartlock]

The logical answer is to drop a couple minutes off dry time and perhaps even raise washers $.25. However, I'm in a large market with many mats in the area. I know my customers are loyal as everyone I talk to seems to have been coming to my mat for years (24 years is the longest I've heard so far). Should I be worried about losing customers if I raise prices in response to this crisis? Particularly if I start messing with the 10 min dry time (that is what all the area mats go for).

[ajay]

I recently did a quarter increase for warm and .50 increase for hot on 25lb/40lb/50lb. But in talking with customers, they understand of the hike. My nearest competition owns the building, has old but working equipment, is also 5 houses down from me. he hasn't changed his prices or has done anything to improve his equipment.

I'll have better idea in another month or so if the change in price has made a difference. So far numbers are up, but also were down in light of summer. Unfortunately I don't have history at this location, since I changed all the equipment within the past 12 months.

In the meantime, I'm thinking about going to 6 minutes instead of 8 in drying. I'm wondering if anyone has done that already and if so, did the overall revenue increase?

I'm reluctant to decrease temperature!

ajay

[Laundry_king]

How is the industry going to handle the energy crisis?
What can we see in the future?
Could washers have a higher spin cycle?
How more efficient can dryers become?
This is a wake up call and we better heed the call.

Before you know it we will be beating our clothes with stones.

If the industry goes the way Detroit car manufacturer's went, we are doomed.

There is a lot to think about now.

[ajay]

....and if we knew we will live forever........You decide your future by making decisions today. Don't sweat over the things you have no control over.

In our downtown area recently, we had a brand new 4000sqft store opened. That store put almost all local mom/pop place to shut down, to sell at a loss, or simply change to something else. This is what I think will happen as mat owner don't take care of their places inviting competition. (BTW - I missed on that location by two weeks.)

There will always be dirty clothes! We will survive. We certainly can't make the same money as we used to.

So now is a good time to strategies, make decisions today for better tomorrow.

ajay

ajay

[Laundry_king]

....and if we knew we will live forever........You decide your future by making decisions today. Don't sweat over the things you have no control over. Please excuse me but we do have control over what I'm talking about.


Could washers have a higher spin cycle?
How more efficient can dryers become?
This is a wake up call and we better heed the call.
We are the buyers of equipment.

This is why gas is out of site because we sat back and said there is nothing we can do.
This is the wrong attitude don't you think.

So now is a good time to strategies, make decisions today for better tomorrow.

You are so right I respect your opinion but we have to make such that the suppliers and distributors get it too.

[pete f]

at my card store I raised everything 5 cents. 2 washers I went up 10 cents. The dryers up to 35 cent from 30 cent ( 10 min) So far only a couple people said anything. If anything they only notice the dryer price. I have had people come to dry only even though they have a dryer at home becuase thry don't want a higher gas bill. I am pricing dryers to make money based on my cost of operation. With over $3 gas pricess at the pump the nickel increase looks tame to most. The extra kick is people will have to go to the closet mat to them becuase they will n ot be able afford to drive 5,10 mile one way to a "cheaper" mat.. I figure the increase will just barley cover my new gas bill increase. At the coin store dryer times will be comming down this week.

I figure the average family now will have to spend an extra $100 a month more than they did becuase of higher energy costs, maybe even more. What will they NOT spend on to be able to do this? Electronics? Vacation? Going out to eat? I think the mats are safe, just a litle less profitable for now.