Raising Prices

[Howard]

I'm new to the business, having just purchased my first laundromat about 3 months ago. The old owner told me that prices have not been raised at this establishment in four years. What reaction should I expect from customers when I raise prices (I know they will be less than happy). I am in the process of making significant improvements (85% of the equipment is being replaced). What percentage increase can I hope for without driving customers away in droves? Should I just do it, or pre-announce my intentions?

TIA

[Gary_Crosby]

As long as you do not price your self out of the local market, I would just raise the and not say a word unless asked about it. Then just explain that to offer new and better equipment cost a little more and they will rieceve a better wash with this new equipment. I only had 3 people question my price increase.
Good luck
Gary

[TKLaundry]

When we first bought our laundromat it had been closed for over a year, we priced below the market to attract business. We recently raised our top load prices by .25 after a hike in water and sewer fees. All I did was post a notice to that effect and no one questioned the increase or complained and there has not been a drop in the number of customers. There are 5 other laundromats within 1 mile of my store.

Dave Faneuf
Terrys Kids Laundromat

[petefritz]

Don't be afraid to raise prices, especially if you are remodeling at the same time. I have always made more money when I raised prices. The worst you can do is cut a price after remolding to attract business! Look around at the competition, thene price slightly ABOVE them. I am the highest in my marketplace and pround of it. People will not drive very far to save a quarter or 2. The best way to raise prices is to do one type of machine at a time, maybe a year apart, say toploaders, then dryers, then fronts. I raise something every year. If the old owner was behind in pricing, then you might have to do it all at once, then continue to an increase every year or so on something. Don't be shy, if you raise prices 25%,, topload 1.00 to 1.25, you will not loose 25% business. You might loose 5%, but if your store is clean, and everything works, then they will be back after going to the dump down the street.

discounting does not work.

good luck
Pete

[LEEHUSTON]

Concentrate on the quality of your store and rasie the prices where you need to be to make money. If you run a good place and work on customer service people will pay it. My prices are far and away the highest in the area. But no laundry within 30 miles can begin to compete with our cleaning, hot water, hot dryers, working machines, air condtitioning and freindly service. I want to keep it that way. I get a few eye brows raised when I charge 2.50 for a 25 lb machine, but I get alot of compliments on the store too from those same eye brow raisers. Good luck, have fun!

[PeterH]

Yep, shop your competition and then price accordingly.

One June 1st, I raised my doubles from $1.25 to $1.50. While my turns per day has dropped slightly, my revenue is up. On the other hand, my top loaders ($1.00) turns per day is up significantly, more than compensating for the lost turn on the doubles!!! While this would make some owners nervous, I'm not too concerned as I have 16 doubles and only 6 tops.

I'm thinking 6 months (November) until I raise the tops to $1.25, which would equal my competition...

[Whitt]

I've had customers handle this both ways, in that some have simply done it with no fanfare and others have gone to great lengths to justify the price change. While I think that it's a good idea to forewarn customers of the changes to your store, I don't think that it should be done as an apology to them.
One thing that I have seen work is to let your customers know what you're doing to THEIR store and why. Tell them that you are working to make THEIR store a cleaner, better place to do their laundry and ask them for their suggestions on how to accomplish that. If you involve your customers in the process, they will take ownership of the changes and continue to come to THEIR store to do their laundry. You may lose a few customers by raising the prices, but in most cases they will be customers that you will not miss. Put up signs, do mailers, whatever it takes to generate the interest and involve your customers.

[Whitt]

I've had customers handle this both ways, in that some have simply done it with no fanfare and others have gone to great lengths to justify the price change. While I think that it's a good idea to forewarn customers of the changes to your store, I don't think that it should be done as an apology to them.
One thing that I have seen work is to let your customers know what you're doing to THEIR store and why. Tell them that you are working to make THEIR store a cleaner, better place to do their laundry and ask them for their suggestions on how to accomplish that. If you involve your customers in the process, they will take ownership of the changes and continue to come to THEIR store to do their laundry. You may lose a few customers by raising the prices, but in most cases they will be customers that you will not miss. Put up signs, do mailers, whatever it takes to generate the interest and involve your customers.

[ptdiver]

Top load $2.00 !8lb wasco $2.00 30lb wasco $3.50 50lb wasco $4.50 The highest prices around. I recently raised my prices by .50 and my income went up. P/S everything is clean and works with an attendent on duty.Paul