As a laundry owner, pricing your services properly will always be a concern. You don’t want your competition to undercut their prices and steal your customers, but you also need to maintain a profit and pay important bills (rent/mortgage, equipment, maintenance, labor, utilities, etc.). While you can start by researching the average cost of a load of laundry in your neighborhood and use that as a benchmark, you can’t let a competitor’s low prices undermine your own profit margin. scroll down for some helpful pricing tips.
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average cost of a load of laundry
If you’re considering raising prices at your laundromat, start by researching the average cost of a load of laundry in your area. There are several reasons why you might choose to risk raising your prices:
- the average cost of a load of laundry in your area exceeds your current rates.
- costs of doing business have increased. For example, maybe your landlord is raising your rent, your utility rates have increased, or you need to replace equipment.
- You’re remodeling your laundry room to attract high-end customers. the slight increase in prices will help you pay for the remodel and will also reflect your upgraded facilities.
what are customers willing to pay? the right price for a load of laundry depends largely on your location and the quality of your services. Average costs to wash a load of laundry range from $1.50 to $4.00, with the national average hovering around $2.00 (source). The cost of drying a load of clothes is very similar, although it usually depends on the amount of time it takes for the clothes to dry. many laundromats allow the customer to determine how long they want their clothes to be in the dryer.
What makes customers willing to pay more? You can’t always expect your customers to pay more for laundry, especially if your competitors offer similar services at a lower cost. To determine how you could improve your laundromat to make sure your services are worth the price increase, do some research online first. Check social networking sites like Yelp, Facebook, and Google+ for customer reviews and complaints. For example, if multiple customers mention dirty toilets and malfunctioning machines, you’ll know where to start with your laundry refinement.
then check out the competition. what services do you offer? How much do you charge for a load of laundry? Do they have special amenities? How is the facility in terms of comfort and style? In addition to checking out their websites and social media, be sure to visit laundromats for some hands-on research.
Where could you improve? After reviewing the concerns of your customers and your competition, you may want to make some of the following valuable improvements:
- repairs to non-functioning (or malfunctioning) equipment
- large machines handling multiple loads
- green equipment
- new paint
- bright, attractive lighting
- new floors (or a professional floor cleaning)
- wall art
- comfortable seating and fold-out stations
- cleaning services
- card compatible payment system
- improved security system
- staff members on duty
These purchases and services will make your customers feel comfortable and welcome. once they become regulars at your laundromat, a small increase in costs is unlikely to keep them away.
plus, some investments can help you save money in the long run. for example, maintained and updated equipment reduces water and energy consumption. By striking a judicious balance between upgrades and price increases, you can improve your profit margin while attracting and maintaining a strong customer base.
If you’re interested in opening a laundromat, be sure to visit Laundry Solutions Company, a full-service provider of premium retail, on-site, and multi-home commercial laundry equipment. Since 1976, we’ve provided exceptional sales support, laundry design services, commercial laundry equipment (and leasing options), and laundry equipment service and parts. To learn more about our products and services, call us at 800-383-9274 or contact us online. We look forward to hearing from you!