How to Operate a Laundromat
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Even though the laundromat business is self-service, it doesn’t run by itself. There are several things a laundromat owner will need to take into consideration in order to ensure the business is operating efficiently and effectively. Below are a few factors as it pertains to operating a laundromat business.
Employees
Consider whether or not the laundromat will be attended or not attended. Some laundromats do not have an attendant present. Others have someone on-site to clean the store, assist the customer if she or he has a problem, or manage a fluff and fold service. If the laundromat will have an attendant, then you’ll want to consider whether or not the business operations can support an employee (part-time or full-time). After all, the goal of owning a business is not to buy yourself another job.
This is one of the most important areas for a laundromat owner. Why? Marketing is one of the most important activities that can not only bring in new customers, it can also increase existing laundromat customer loyalty. Typical marketing activities could include special coupons to residents in the area, promotional contests in the store for prizes, incentives for customer referrals, co-operative advertising with other nearby retail businesses, and just about anything else you can imagine.
Security and Surveillance
The safety of your business and your customers is of paramount importance. It is for this reason, I equip all my laundromats with a surveillance equipment. I want to make sure I record whatever happens inside my stores. A surveillance system will help you monitor any potential criminal activities such as someone who is looking to steal the money out of your change machine. In addition, you want to make sure your customers feel safe and comfortable in your store. A surveillance system is one way to provide the customer with peace of mind.
Laundromat Equipment
A critical part of business operations is making sure your laundromat equipment is operating at peak performance. The commercial washing machines and dryers need to work. On this note, here’s a tip. Most people new to the laundromat business think they need to service the machines themselves. Sure, you could learn how to do this and save some money. However, I like to ask myself, “How much is my time worth?” Once I go through this exercise, I know it is actually cheaper for me to hire a professional to service the laundromat equipment because they can complete the work order in less time than it would take me (and cost less when factoring how much my time is worth).
Bookkeeping
This is another area where most laundromat owners fall short. They fail to keep an accurate set of financial records since this business is an all cash business. As a business owner, you must keep good records so you know if your business is profitable or not. If you’re not comfortable maintaining this kind of information, get help from a professional bookkeeper. This will also help you when it comes time to prepare your business tax returns too!
Amenities
This is one area where you can differentiate yourself from other laundromats in the area. Personally, I like to offer my customers free wireless Internet service. Other amenities include ATM service, a fluff and fold service, and vending machines, which also offer ancillary income for a laundromat business.
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Is a Laundromat a Good Business?
Home > Laundromat Articles > Is a Laundromat a Good Business?
I’m frequently asked why a laundromat is a good business. Well, in one of my other articles, I cover the advantages of a coin laundromat business over other traditional businesses. If you have not read this article, it covers the key advantages of owning this type of business.
In this article, I’d like to expand on why a coin laundromat is a stable, profitable business. Below are several additional points to consider.
Fact #1: This industry is stable.
The coin laundromat business is a $5 billion a year industry in the United States. Most people would not know this though. Instead, the popular misperception of laundromats is that they are poorly run and do not provide an attractive return for potential investors. If you were going to start a business, would you invest in a brand new market that is not proven or a mature industry with a solid track record?
Fact #2: Customers will always need a laundromat.
The reason why coin laundromats thrive is because customers will always need the service. The commercial washers and dryers allow customers to clean more clothes in less time. Some laundromats also provide a fluff and fold service which provides added convenience.
Fact #3: Buying an existing Laundromat makes sense.
If you purchase a laundromat for sale and perform the proper due diligence, you are buying an existing business that will make you money on the very first day you take over the business. In addition, you don’t have to deal with franchise fees, lots of employees, and other headaches typically associated with other businesses.
Fact #4: Favorable trends make this a great business.
The renter population in the United States is expected to grow by 2015. This is a good thing because the typical customers of a laundromat business are renters. This trend is a Laundromat business owner’s friend!
These are just a few reasons why a coin laundromat is a good business. This is not just my opinion either. Check the facts for yourself and you’ll see why I chose to become a laundromat business owner myself.
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Coin Laundromat Business Plan: How Marketing Can Increase Profits
Home > Laundromat Articles > Coin Laundromat Business Plan: How Marketing Can Increase Profits
Marketing works! If you as a coin laundromat owner market your business and most of your competitors do not – you’re going to be miles ahead of them.
Like any business, you don’t want to forget about promotional marketing. I think that’s a common mistake between most people that own laundromats where they don’t budget much of their allotted income towards marketing expenses.
For most laundromat owners primary marketing is by word-of-mouth and that’s it. Sometimes they’ll do something like give away a free box of soap or leave soap out on the counter and let people just have free soap or something like that. It’s pretty rare that in laundromats they have real marketing campaigns. I think that’s a mistake.
I would recommend, probably, having somewhere between 3 and 5% but probably no more than 10% of the gross income to go to the marketing expense. The amount that you use would really depend upon what kind of net income you have and whether or not it makes sense to spend more than your allotted budget for it. With laundromats, you can do some relatively inexpensive marketing.
One thing to do is you can print up flyers on neon paper just talking about the laundromat and distribute them. Another popular form of advertising is postcards – direct mail.
From time to time we send emails to customers. I love emails because it doesn’t cost you anything for the marketing as opposed to a postcard. The savings you get by using emails allows you to pass some of that savings on to the customers by giving them coupons even if they are existing customers.
The other thing I like to get customers to do is refer other customers. I normally only do this with online marketing where I will send out an email and I’ll say, “Refer 5 people and you win a prize.”
The other type of marketing, which also really works well, is there are some online services that review different companies. Customers come in, they will wash with you then they will go online and they will rate your business from 1 to 5 stars. They get to write it up and it’s in their own opinion. Basically, it’s a testimonial of your business.
It is important to track everything otherwise you don’t know what is effective and what is not. Every marketing promotion that we do has a different give away or a different promotion. We advertise in one of those “Penny Saver” magazines and on that we have a different ad with a different coupon. We even advertised on shopping carts in supermarkets and that worked pretty well.
Advertising is one of those things that is always evolving. If you find one that works, keep doing that. If you find stuff that doesn’t work, stop doing that and go on and try a different type of advertising.
The experts say in marketing for ads to be effective, you want to touch your customer at least 6 times with some sort of marketing plan. It could be 6 different types of marketing, such as postcards, flyers, and the name of the business as they are driving down the street. Whatever that happens to be. I think it’s important to have some sort of consistent regular marketing approach.
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
