changing prices in old mat new owner

[bodman]

looking at a mat, busy location however tops are at 1.25, doubles 1.75, 35 lb at 2.50 and 40's for 3.00 dryers 7 min for .25 30 lb and 50lb at 6min for .25. QUESTION has any new owners gone in and raised prices drastically and had a terrible exp. currently my mat 7.5 miles away is getting tops 1.75, 18lb 2.00 30lb at 3.25 ,35 lb at 3.5 and 40's 4.50 30lb dryers at 6 min for .25 numbers look fair 2 mats west one same price and other one up to date with 2 year old new machines. suggestions wanted

[Silent Roo]

In business there are 100's of decisions. The easiest is pricing. You must price your product where you can make a profit, meet your expenses and stay in business. Too often in laundry it is forgotten that replacement equipment is needed.

I am a dealer. I talk to owners who have priced them self out of the business because they were scared to raise their prices $.25 cents! They have not raised prices in 10 years or more. Not many products that can say that.

If you look at costs and inflation it probably would be more realistic to price a top loader around $6 (Now we all know we can't do that)

I purchased a Mat in a small town with two other mats I raised my prices day one to what I thought was reasonable. Mine was the newest and cleanest. I lost some business short term but long term I did not. I bought the second mat in town and Raised them day one. Saw little impact. The final mat in town actually lowered his prices! His tops were a $1.00 Mine at 1.75 His 18 lbs at 1.25 Mine at 2.25 his 25's at 2 mine at 2.75.... He saw a bump in business but not income. He ran for a year and did not have enough to replace dead top loaders. I bought him out and raised prices. Turns saw a slight decrease as people spread over my other two mats however income went up as well.

Understand If there is business you might loose some. Run the numbers what does 25% less look like at normal prices. Most people are suprised at how much business you can loose and still come out ahead....