Does the price matter?

[Ken]

I just drove pass a new laundromat,it is not in my market ,nice 4000 sqft store,A/C,large TV,everything stainless steel.....it has a large sign ".99 wash".I know the owner have other store in different market offer .49 wash from midnight to 6 am.I am glad he is not in my market.
When I talked to distributors,they always told me ,it is enough for everybody,price is overrate,buy new machines will get your customers back.....but I see new store or store in overbuilt market charge much lower price or just give away the service.
I have a store in a overbuilt market,I don't want to owe anymore money until I pay it off in 2 years,I keep the machines running,place clean,cut attendant hours, charge lower price to deal with all the super stores,make some money.Some washer is $1 cheaper than my other store's washer.
Does the price really matter?

[DuboisLaundry]

When I talked to distributors,they always told me ,it is enough for everybody,price is overrate,buy new machines will get your customers back.....

maybe those distributors should give you that brand new shiny equipment for half price

suggest that and see if they still think price is over rated

[sdl]

Well said!

[Ken]

I don't want to sound like I dislike distributors,I talked to them,read different laundry megs,talked to customers,owners.
Laundry owners and most customers told me "price matter".
Dealers told me "new machines,nice store is more important"
I have been doing this for 16 years,just wonder what everybody feel about this .

[pete f]

I know you have seen the numbers reported by CLA
CLA is for the national association,
I truley believe people will do laundry at the nearest place that meets thier needs. Now, what are those needs?
Durring the summer here one would be a/c

Capacity may be a need for power washers.
layout of the mat
parking
cleanlieness
machine condition
price is an issue, people do laundry everyweek, 2 weeks, once a month, whatever thier habit. Like buying gas, they hate to spend the money and most these folks are at the lower tier of finanicial freedom. Will they drive very far for a better deal? Depends on what is offered and what is needed.
I have 2 mat within 1.1 mile of each other. When I aquired one recently, it had old Milnors, couple of newer SQ 50's. I remember being there, a car drove up with a load of laundry, like the back of the car full of crap. He looked around, and left. At that time the sq's were in use, 1 Milnor broke, 1 out of the 2 in use. The car left. I jumped in my car and followed it. It ended up going to my other mat. There I had 3 40's and 1 55#, so enough capacity for that customer. The price is a big difference between these mats, the second one much cheaper, at least to wash, dry is much more, bt he came to the more expensive place first. I know some customers come to my mats pass 2,3 others. People go where they feel comfortable and close to thier home. I try to keep price reasonable, but not cheap, except at one location, but that is a special story. Some locations I lead on price if I have alot to offer.. a/c. newer machines, etc All have good parking and access.

[Silent Roo]

maybe those distributors should give you that brand new shiny equipment for half price

suggest that and see if they still think price is over rated

Actually most are at least 30% off retail.... but to the point of the question.

Clean and working is as important as shinny and new.

I am in many stores a week and the ones turning have two to three things in common.

1. Clean
2. No Out of Order
3. If staffed Long term staff.

I never mentioned price. Cheapest stores generally do not do well long term. In any business including coin laundries. The people that make money understand their customers needs, rather than compete on price.

I recently Bid a large commercial laundry I was the highest of 4 bids. I got the job because I took the time to understand a couple of unique things about my customer. He is paying about 5% more because I took the time to explain some benifits rather then Dropping the price to win. Does it always work? No But long term most of my loses to price come back when some one can't Deliver what they promised.

Shiny and new is fun. However clean and running is better.

I was in a 2 month old store about a week ago.(Remodel) They saved money by not redoing the bathroom, floors and not touching the bulkheads. this brand new store still stinks and looks bad. They spent 200,000 and saved 20,000 by not doing floor and heads. It will always look crapy even with new and shiny.

[kbc747]

Here is some food for thought, if price were the only consideration then we would all drive the same car, the cheapest one, you would never shop in a 7-11, only Wal-mart. Price is always an issue but seldom is it the deciding issue. All people will pay for and here is the big word value, you have to offer it and most important allow it to set your price. The distributors are right, new machines will get you some customers, but so will clean machines, floors and dryers. The idea here is to add value, look at what things you can do to get the bigest bang for your buck and this will help you making the spending decisions. I can tell you when I replaced washers and added TV to the laundry, people noticed the TV first infact it was only later when I replaced a second row that they started to comment on the washers.

[Kitty]

Here is some food for thought, if price were the only consideration then we wouldll drive the same car, the cheapest one, you would never shop in a 7-11, only Wal-mart. Price is always an issue but seldom is it the deciding issue. All people will pay for and here is the big word value, you have to offer it and most important allow it to set your price. The distributors are right, new machines will get you some customers, but so will clean machines, floors and dryers. The idea here is to add value, look at what things you can do to get the bigest bang for your buck and this will help you making the spending decisions. I can tell you when I replaced washers and added TV to the laundry, people noticed the TV first infact it was only later when I replaced a second row that they started to comment on the washers.


Price has to quit being an issue and value should be the defining element that is "sold" to your customers in order to retain them as your customer or that of which will take your competitors customers as well.

Many times I hear cutting the attendant hours as a way to reduce expenses, and although it may be a short term way to net you more profit dollars it in turn may cut your margins more. Consumers today have many choices and when your competitors are depending on the price issue you must combat this issue with superior value in other areas of where the consumers needs are. You must offer other alternatives to taking price out of the equation. You as an owner/manager should be proving to your clientelle or future clientelle that it is your laundromat that will not only consistently provide the better wash but will provide the superior service that consumers seem to be missing and be sure you provide it as close to 100% as possible. Either hiring attendants to be you when you are not at the business or be there your self. When you acheive this you can premium price your services and you will take price out of the equation.