As a laundromat owner, there are many opportunities to maximize the profitability of your laundry business. This can include exploring new tactics and technologies to streamline operations, attract new customers, retain current customers, and reduce operating expenses.
If you are a laundromat owner or potential investor looking to explore ways to increase revenue and minimize the costs of a laundromat business, here are a few tips you’ll want to know:
Profit-Maximizing Tips For Laundromat Owners
1. Control Utility Costs
Due to the nature of the laundry industry, utility costs are often much higher than other small businesses. Effectively managing utility costs can have a direct effect on your company’s bottom line. In fact, nearly 69 percent of laundromat owners said that managing utility costs is the greatest challenge facing them today, spending almost 22 percent of gross revenues on utilities on average.¹
Installing high-efficiency commercial laundry equipment can significantly minimize utility costs. Water and energy-efficient coin-operated washers and dryers, like those from Electrolux, are a great long-term investment for reducing operating expenses as well as your environmental impact.
2. Upgrade Old Machines
Upgrading commercial laundry equipment may represent a greater initial investment, but outdated machinery can cost businesses more than you would expect.
Downtime for some or all machines can interrupt service, create a poor customer experience, and increase repair costs. Older machines also take longer to wash and dry fabrics, decreasing the business capacity for potential customers while increasing utility costs.
Despite these costs, many laundromat owners choose to keep their old machines due to the high upfront costs of upgrading. Fortunately, laundry equipment suppliers like Laundrylux work as a strategic partner to install, maintain, finance and rent commercial laundry equipment. This gives laundromat owners increased flexibility when it comes to upgrading, maintaining, and purchasing equipment.
3. Streamline Service, Repairs, and Replacement of Equipment
In the laundry business, ensuring that your machines are in top working order is critical to long-term success. Not only does this improve customer satisfaction it also improves machine efficiency and utility costs. Moreover, regular servicing and repairs help equipment last longer and prevent expensive machine failures.
Laundromat owners may not always realize the importance of building a relationship with laundry equipment suppliers. These laundry equipment experts understand your business and can streamline machine maintenance and repairs, as well as quickly replace equipment.
4. Strategic Pricing and Promotion
When you understand your business, you can begin to create strategic pricing and promotions to maximize revenues. For example, a laundromat that has identified slow periods can create time-sensitive promotions, with lower pricing to boost sales during those times.
A technological solution, like LaundryPulse, can help a company both to identify its slowest periods and remotely manage time-based promotions and special offers for customers. LaundryPulse can also be used for real-time reporting, remote site management, and customer loyalty programs.
5. Additional Revenue Streams
Most laundromats will have customers that remain on-site for hours while waiting for their laundry. Why not make additional sales to the customers that you already have to increase sales and improve your returns? Some ideas for additional revenue streams include:
Laundry Services: Offering customers additional laundry services is a common method for laundromats to gain additional revenue. Wash and fold, delivery, ironing, and dry cleaning are a few examples of laundry services that can help attract new customers and increase engagement among existing customers.
Vending Machines: Vending machines for snacks or laundry products are an easy match for laundromats, especially those in the self-service laundry business. Selling detergent, fabric softener, dryer sheets, and even drinks and snacks are great ideas for adding value and convenience for customers.
Entertainment: Not exactly a direct revenue driver, but televisions or free WiFi to can entice customers to remain on-site, spending money on other services as they wait. Arcade games are another option that can keep customers entertained while adding an additional revenue stream from the coins they most likely have.
Hybrid Laundromats: To truly set your laundromat apart, try adding an additional operation that will appeal to your customer base. Cafes, child play areas, workspaces, or convenience stands are just a few of the many unique opportunities for laundromat owners to ensure success.
With Laundrylux as a strategic laundromat supplier, laundromat owners and investors gain access to a full suite of laundromat services and solutions. Leverage our industry expertise to maximize business profitability and make the most out of your investment
Contact us to learn more about how Laundrylux can help you maximize the return on your laundromat investment with our many services and solutions.