Do We price toploaders wrong?

[Buddy_Amoroso]

People love toploaders. They love the ability to open the lid on a toploader and feel the steam hit their face and watch their cloths while they are washing.

BUT we as owners of laundries we should hate toploaders. In most cases they are the lowest vend of our equipment and the most expensive to run.

Should efficient softmont washers be priced lower than our toploaders. Example should I price my Neptune’s at $1.75 while my toploaders priced at $2.50.

This would drive business to our softmont and if a person wants the steam to hit them in the face they would have to pay more for that privilege.

I am very curious to hear what others think of this matter.

buddy amoroso

[fluffy]

While I would like to see that pricing structure, it would certainly be difficult to convince the public. Toploaders seem to be the standard price comparison between 'mats, and as long as I still make money on them I'll carry them to serve the diehards. If it is a concern to you, I think dropping tops entirely is the best option.

I try to vend on a price per pound capacity basis, and price tops the highest but still have them under the Neptune. For example, $1.5 vs. $1.75 (and bill tops as a single load and Neptunes as a double load).

[Ken]

The market in your area decide the price,as sample as that.
You don't really want to give your service away but don't want to price yourself out of market.
One of my store is in an overbuilt market,I have to charge lower in that market,some machines are $1 lower than my other stores,do I want to charge low price,no but the market force me to do that.

[Kitty]

In today's utility crisis laundry owners should not think twice by increasing the top loader price to $2.00 or more in some areas to equal an 18-25lb front loader.

WHY you ask? For the reason these machines cost you more to run and although a top loader is priced for a profitable return in most areas at $1.50 you want to move your customers to the front loading machine for economic reasons. How many customers under utilize or over utilize your machines? Many don't care how they utilize machines because of no ownership involved. The cost of machines has increased and the life of machines are not quite as long as they used to, therefore it is beneficial to premium price your tops and the result will also reduce laundromats from having their tops be the machine that sets the price in the market place. Your machines should be a portion of the services you are selling and you should not be afraid to add the amenities into the cost of your vending price for the greatest revenue possible.

In addition you will want to reduce inefficient practices by your patrons you may net a better return on your equipment per customer. Again I get back to educating the customer on efficient and practical laundry techniques to get the best results.

[Von Hef]

I try to vend on a price per pound capacity basis, and price tops the highest but still have them under the Neptune. For example, $1.5 vs. $1.75 (and bill tops as a single load and Neptunes as a double load).

This is exactly how I approach my pricing structure... I calculate the price per pound. MY Tops are 1.50 and my Neptunes are 1.75

Price per pound for a Top Load = .13 / pound
for a Neptune = .09 / pound
Other Front Loads = .10 -.11 / pound

[Buddy_Amoroso]

This is exactly how I approach my pricing structure... I calculate the price per pound. MY Tops are 1.50 and my Neptunes are 1.75

Price per pound for a Top Load = .13 / pound
for a Neptune = .09 / pound
Other Front Loads = .10 -.11 / pound

The problem is that it cost you more money to run the top loaders verses the Neptunes. The price per pound should be much higher for the top loaders than the Front Loaders. At .17 per lbs the vend price would be $2.00. This would drive business to the more profitable eqipment.

buddy amoroso

[Von Hef]

The problem is that it cost you more money to run the top loaders verses the Neptunes. The price per pound should be much higher for the top loaders than the Front Loaders. At .17 per lbs the vend price would be $2.00. This would drive business to the more profitable eqipment.

buddy amoroso

Well.. I Guess I look at this in a little different way. What is my actual expense to operate the top load? If it cost 20 cents to operate each top load and 10 cents to operate a Neptune. Then when a customer comes in and washes 20lbs of clothes... which one makes more money?

Two tops at 1.50 = 3.00 - .40 = a total of 2.60 profit.
One Neptune at 1.75 - .10 = a total profit of 1.65

So do I really want to force people to use the Neptunes?

[Gatorlenny]

You are all getting there, trust me!

In about 30 seconds with one or two customers every time you are in the mat try this: When you see a customer using two or more top loaders, point to them a larger capacity front loader that will wash say 20 or 25 pounds (whatever you have) and tell your customer "hey did you realise for less money you can do all those clother in one machine?"

I price my tops at $2.00, and then a 20 front loader at $2.75 and 25lbs at 3.25.

The customer does all thier wash quickly, use less soap. You get a higher vend rate for less utilities and per $ per sq/ft. Then the clothes dry faster, etc, so you do better on dryer revenue.

The bottom line is we can get customers to get away from tops, but it takes some time and real interest on your part. And as it works out we all reap the rewards.

[PeterH]

But there are the customers that look at you like "Yeah, right! Let me do my wash in peace" and those that believe you. And then there are those who just plain do not understand -- either the English or the concept.

Maybe with Neptunes it is different, but I find that when directing people to the doubles, they tend to divide one top load into 2 doubles. They perceive the doubles to be smaller than the tops. $$$$$$

My tops are $1.75, the same as my doubles. Come the first of the year, they will both be $2.

I have Maytag tops. My "super cycle" option is .50 and is used about 40% of the time.

[pete f]

I am on the same line as Von Hef, For one thing, a top cost me about 45 cent to run, so vending them at $1.50, $1.75 is not killing me. Yes, the Neptune costs 30 cent to run, but does more clothes, so my price income per pound seems lower, as the Neptunes are .25 higher. Even at that small difference the turns are in the tops 2-1.
A top cost 1/2 of the cost of a softmount Neptune. The both will last about the same amount of time. The math does not add up well for the neptune to me. Let the customers enjoy playing with their clothes in the tops! They also have to spend more to dry! Why does everyone want to to kill the golden goose?

[Kitty]

The point is not to kill the golden goose for laundry owners but to see that there is premium price to this type of equipment. In your situation your neptunes and the tops should be raised in order to see the benefit in pricing we have suggested, then possibly your front equipment will follow. Your scenrio may differ if you are offering more tops and neptunes then hard mount fronts.

The point is efficiency and seeing that your clientelle launders and receives the cleanest clothes possible after they have finished. IMHO Top loader washes do not clean as good as your high efficiency fronts, nor do they usually generate as much revenue nor return next to the hard mount fronts. When putting dryer cost/revenue and wash cost and revenue into the mix your revenue in the dryer will differ slightly when comparing laundered items from a top and from a high efficient front based on wash and dry profit. Customer overall satisfaction with your equipment should outweigh your profit issue of a top.

There is great reason to change the pricing structure and move your customers to the high efficiency washers.

[Buddy_Amoroso]

It is my theory that top loaders cannibalize our soft mount washers. It has been my observation that people tend to over load top loaders and under load front loaders.

In the scenario that a person brings in 20 lbs of clothes a conscious person is going to dive it into two loads of colors and white. The person who does not care is going to jam all of the clothes into one washer.

On a personal note I really enjoying hearing everyone’s comments and hearing their philosophy of business. The only thing better is if we were sitting around having this discussion while drinking a cold beer.


buddy amoroso

[John H]

Another factor to throw into the mix is the length of time it takes a front load machine vs. a top load machine. It takes my top loaders nearly twice as long to do a wash as my front loaders, since I'm able to program the fronts, but not the tops. A lot more revenue in a shorter amount of time on the fronts. That's not a big deal on most weekdays, but on Saturday and Sunday, I sure want to move the customers through quickly.

John

[Bob]

My mat is 1500 sq. feet. I have a mix of:
Tops - 3
20# - 9
30# - 8
40# - 3
75# - 2

This mix of machines brings in $71.50 per turn. If I replaced all of my fronts with tops I would bring in $45.00 per turn. Why would anyone want to fill the square feet with equipment that doesn't bring in as much as it could?

Bob

[Von Hef]

My mat is 1500 sq. feet. I have a mix of:
Tops - 3
20# - 9
30# - 8
40# - 3
75# - 2

This mix of machines brings in $71.50 per turn. If I replaced all of my fronts with tops I would bring in $45.00 per turn. Why would anyone want to fill the square feet with equipment that doesn't bring in as much as it could?

Bob

The original conversation was about rasing prices on Tops to drive people to use the Neptune (softmount).... it was not about filling a store with nothing but tops.
All I am saying is that some of my customers want to use Tops... if that is what they want I will provide that. I have soft-mounts and hard-mounts... and they get used also. When a customer comes in and uses 9 or 10 top-top load washers (happens often) insted of doing it in my front loads... thats ok with me! I know that I am making as much money that way (or more) than if they used my Front-loaders. There are other customer that know the value of the Fronts... and that's great! I have even mentioned that money can be saved with the front-loaders, and they still use the Tops. So why raise prices to force a customer away from a top to the softmount... if I am priced to make as much or more? Yes there have been instances of people trying to overload the topload, but these same people would over-soap the Neptune and become dissatisfied customers. Those that tend to underload the Neptunes will also complain about taking too long to wash (due to out of balance). Point is... many of my customers want to use a top, I will provide that desire at a price that makes sense to me.

[pete f]

My mat is 1500 sq. feet. I have a mix of:
Tops - 3
20# - 9
30# - 8
40# - 3
75# - 2

This mix of machines brings in $71.50 per turn. If I replaced all of my fronts with tops I would bring in $45.00 per turn. Why would anyone want to fill the square feet with equipment that doesn't bring in as much as it could?

Bob


I sort of agree with this strategy. Most of my stores only have a few tops now, and always will. The old 25 top store and 2 35# Milnors is not with modern times in any kind of metro/rental market.. Replacing a 25 top store with 25 neptunes is NOT the answer! The smarter way is to pull 2 tops and replace with 1 25#, 35#, 50# etc hard mount. With stack dryers it is possible to balnace bigger wash capcity out of smaller stores. But I know there are limitations at some mats, ie, cellars, bulkhead, etc. There are also markets that do not need 75% muti load fronts and a few tops. I have customers come in and fill 2, 3 60# washers and then use 1,2 tops. They have a certain way to wash and know what they want. In the end you really need to know your market to realize the best income you can pull from it.