Setting the Prices of your Store's Laundry Machines

For most Laundromat owners the prices of utilities and the vend prices of their Laundromat machines are constant topics of thought and conversation. The ebb and flow of your store’s finances are connected to one another and while it would be great to set your price according to your utility expenditures, competition between Laundromats typically prevents Laundromat owners from doing this.

The vend prices for your Laundromat machines are a key component to your businesses strategy in the same way that marketing and your equipment are. While some small towns may have only one Laundromat within reasonable driving distance, most Laundromat owners must target specific sections of the market to make money. In coin operated laundries, as with any business, there is a low end, a middle segment and a high end to your market. Identifying your “sweet spot” and earning-niche and catering to it with an appropriate pricing structure is crucial to your success. A pair of cheap jeans from Wal-Mart wouldn’t sell in Nordstrom the same way a $350 Nordstrom jacket would collect dust on the racks at Wal-Mart, yet both businesses are successful – thriving within their niche. This is because they’re priced appropriately for their customer base.

The good news is that as the owner of your store you’re always in control. You can determine who your store’s customers are with the price you set for your Laundromat machines. If your prices are low you’ll be busy around the clock but the low-end customers you attract may be off-putting to some of the high-end clientele that value space, cleanliness and a relatively quiet environment in which to do their laundry. If you set your prices high it will be easier to keep your store in pristine condition and your utility bills will be lower, but you may not have enough customers.

An important exercise for Laundromat owners is to record all of your expenses in a spreadsheet and then compare those expenses to your income. If, at the end of this exercise, you’re satisfied with your store’s earnings and the overall health of your business … great! If not, it’s time to start making some adjustments and the first place to look is at the prices of your Laundromat machines.

While price is important to your customers it’s important to remember that it isn’t everything. In fact CLA surveys of coin laundry customers reveal that the average customer ranks prices seventh on their list of factors they considered when choosing a coin operated laundry. The universal truth in any business is that your customers want VALUE. Value can be found at high prices in addition to low prices – it’s one reason why the MVP (Most Valuable Player) every year in baseball is also one of the highest paid players in his league.

As an owner of a coin operated laundry you should be aware of your competitors – how they price their Laundromat machines and the strengths and weaknesses of their store (location, size, cleanliness, quality of their washers and dryers, etc.). Honestly compare your store to theirs when considering how to set the price structure for your Laundromat machines and remember that low prices and high volume don’t necessarily translate to increased profits. High volume means an increase in wear and tear on your equipment which will likely lead to more service costs and a higher annual investment in replacing your Laundromat machines. High volume also means higher utility costs and it will require a lot more time to keep your facility clean.

It’s a surprise to most coin operated laundry owners but setting higher prices and having fewer customers can not only add value for your clients (a cleaner, quieter facility, zero wait times, a higher percentage of Laundromat machines in working order), but it can also earn you more gross profit.

One final consideration which can affect the way you price your Laundromat machines is your investment in advertising. If you run ads that look professional it will entice people to come to your store and they won’t mind paying a little more once they’ve arrived. It’s the same reason people will spend more money for name-brand medicine and clothing … they feel better about their decision to spend their money on something that they recognize as high quality. Professional advertisements can make your customers feel that they’re receiving value when they drop money into your coin operated Laundromat machines … even if the reality is that the best value is down the street.