Pricing strategies

[DirtyLaundry]

I notice that some operators will discount their largerer washers. I don't understand the reasoning, as I vend mine according to the washer capacity. For example, if I'm vending my 25# washers for $2.50, then my 35# washers are at $3.50, and 50# washers are vended at $5.00, and so on. It doen't make sense to vend a 25# at $2.50, and charge $4 something for a 50#. I don't get a discount from my distributer or utilities for a buying 50#, rather than 2 - 25#. It is my opinion, that if you are not charging for the capacity of the machine, you are definitly leaving money on the table. When you go to the gas station you get charged by the gallon - when you vend washers you should charge by the pound.

[pete f]

I agree 100%. My pricing is fairly even across the board in terms of wash capacity to vend price. Discounting a big machine never made any sense. I think owners think it uses less water per load, so a 4 load washer can be priced cheaper than a single load on a per load basis.
So many with comforters and large items will pay whatever it is, they have no choice. So might as well price them to make money.
People will still see value and savings. If a top load is 1.50 and a 35# is 3.50, and we call the 35# a triple load, then the customer can save $1 by using the triple load, 3.50 vs 3 tops at 1.50 ( $4.50 )

[Anonymous]

If you price that way your tops hold 10# so they should cost 1.00?

[anonymous]

I charge a premium for the smallest machines.

[kbc747]

I notice that some operators will discount their largerer washers. I don't understand the reasoning, as I vend mine according to the washer capacity. For example, if I'm vending my 25# washers for $2.50, then my 35# washers are at $3.50, and 50# washers are vended at $5.00, and so on. It doen't make sense to vend a 25# at $2.50, and charge $4 something for a 50#. I don't get a discount from my distributer or utilities for a buying 50#, rather than 2 - 25#. It is my opinion, that if you are not charging for the capacity of the machine, you are definitly leaving money on the table. When you go to the gas station you get charged by the gallon - when you vend washers you should charge by the pound.

You are partly right but you must compare and price to similar machines. ie tops to tops and front to fronts otherwise your fronts are going to be way to high or tops way to low. And even then you will have issues. Like a Neptune would vend for 2.10 and a small front for only a 1.80(using your example) and you will get a lot more for the front than a Neptune or at least you should. For my store tops are tops and I include Neptunes in with tops and fronts are fronts. My W74 are 3.00 and 2.50 on special and my e640su is $5.00 and $6.00 for heavy soil. My e640 is at $5.00 only because my competition is at $4.00 on his Dexters and I told him outright raise your price to $5.00 and I will raise mine to $6.00. His double Dexters are at $2.50(has one) and mine are at $3.00. My criteria for pricing is a little different. I will have the highest price, the best service, the cleanest mat, no questions asked, only a polite thank-you, credit policy, the newest machines and the most technology money can buy and the widest variety of washers possible. I presently charge the most for tops, doubles, triples and quads. I am 20% higher on the dryers and .25 higher on soap. I have never lost market share and there have been 7 guys take a run in 20 years of business. I have 2 in town now and they are also long timers with old equipment but we have a market share of 70%. Just on soap I have made $25,000. extra over the last 10 years. Low prices, no way, no time, no how, made only for poor business people. That's right if all you can do is discount you suck as a business person period.