competition

[robert64]

It appears that a new, large store will be opening just 1 1/2 blocks from my 2 year old laundromat.
I need to plan in advance for the coming competition. On the expectation that their "Grand Opening" will be promoting FREE DRY.
I need to find ways to counter this, without matching, which I believe to be mutually destructive.
From anyone who has been through this, any advice would be appreciated.

[kern]

Robert, you're right to not to try to match the new guy with pricing, etc. To do so is a no win situation. The best offensive I've seen is to magnify the best of your store as it is now. You say the new guy is large. I expect you will have the upper hand in giving personal service. Customers, guests, like nothing more than a clean, well lighted store in which they are known personally, not being a number. So go for what you have and advertise those traits. Have confidence that you already know what your customers want and that you give it to them. If you really want to do something special for your patrons, try some sort of "THANK YOU" give away contest. Make to something that your people would like to have. You can get a lot of mileage out of a color TV for just a few hundred dollars investment. Hope this helps. Bill

[BKROSS]

I faced the reverse situation because I became the "new kid on the block" with perhaps 7 stores nearby,in,albeit, a very densely-populated area. We opened in May and have outstanding customer service, the largest selection of new machinery, the largest washers within miles, and the CLEANEST store anywhere! In addition, I'm there at least 10 hours a day/ 7 days a week. But here's the hitch---people are creatures of habit and it takes months for them to make changes, if they ever do. When we first opened, people would say, "What's for free?" And with a HUGE smile, I'd reply, "just my smile" which created lots of chuckles. Tonight, seven months later was our best day yet and I'm still smiling. Excuse my immodest response, but I AM our business. I know most of the customers by name and do as much as I can to really offer outstanding customer service. I want to have "raving fans" as one author said. It is my plan to become the #1 laundromat in the city! Good Luck!

[Avery]

Know your customers and focus on what is most important to them....
1. Working machines
2. Proper mix of washers and dryers
3. Cleanliness
4. Friendly, personal attention
5. Good lighting/safety
6. Show that you are making periodic improvements whether it be new machines, a paint job or some new folding tables. Customers do notice that you are doing something for them.

You cannot be everything to every customer. As was said in an earlier post, focus on what you are good at. That's what got them there, it will be the thing that probably keeps them coming there.

[SecretarytoBraveDave]

I'm a Manager of multi stores which have been family owned for 30+ years. We too have seen competition in the past several years. One store opened about 3 years ago 1 1/2 blocks away and another is soon to open in the next six months or so. Since the first store opened we have implemented several customer retention programs. One, a wash program. Wash 12 times get the 13th wash free. We give free washes everyday. We too strive for customer satisfaction. The owner and/or I are on hand most days and will personally handle issues that may arise.

The newest laundromat in our area will be opening probably in the spring. We have just signed a 3 month contract for radio advertising. We will see if that gets our name out more, and maybe create more wash,dry and fold customers. I , wholeheartedly beleive a promotion when your competition opens. We may do the same thing. I would do a FREE wash. You can take the coin boxes out and use the same quarters over and over. We did this promotion for a weekend and received tons of business from it. Good luck!

[robert64]

thanks for the responses. From "Secretary to Dave Brave", I could use a little more detail on how to reward regular customers with a free wash.With coins I haven't figured out a way to keep track of the regulars, without having to depend on the attendants, who may not provide the most accurate information.

[SecretarytoBraveDave]

WE use an actually card, that we have printed up. Each time a customer washes we mark the card per visit. After the 12th wash we reward the customer a free wash, up to a 6.00 value. When we are not here the attendants give the customer the money for their washes. The attendants then use that redeemed card as a refund when we balance their change money.

[MrsNewMat]

Although we all say it's stupid to do it.....It has happened one more time.....

A new competitor is opening a block down from us and offering Free Dry. Situation is similar to stated in the first post…..he is big, I am small…..while he’s got more, bigger, and newer machines, I am quite the opposite. My mat is 15 yr. old with I having purchased just a month ago, his is brad new. We got two more in 1 mile radius and it’s mostly residential area.

What should be my offense strategy as I am due for a Grand Re-opening also? Free Wash as long as he has Free Dry?

[ZX7TREV]

Seems like free wash would put you out of business faster than anything...don't do that! Don't match him either. Keep your place super clean, and make sur ethe cusotmers needs are attended to...

T~

[petefritz]

This thread started in '01 wonder how it all worked out?? I always like a follow up to a situation. Is Robert still in biz? did he bail out? Comp never built?

[laundryman79]

I hate to ask this, but how did you buy a store a month ago and not notice that a new store was about to open? I would bet the person you bought from knew it and sold out to avoid this very problem.

[JamesWash]

MrsNewMat, if I were you, I would not buy that store.

[MrsNewMat]

Yes, now I realize why the previous owner sold it but it's too late and is my problem now. We all make mistakes in life....some make a small one, I made a big one....

In my defense though, the comp must have been prepping close doors because I did not see any signs of it. The previous owner must have gotten wind of it some how.

Well.....all that aside.....should I wait till his promotion (free drying) is over, which could put me doing my Grand Re-Opening in snowy winter?????

[ma_ma]

MrsNewMAt, I am curious about any other marketing techniques you have used to attract new customers. I too bought a new store and have competition nearby.

[LuckyStella]

I agree with the previous poster who said wait it out, keep your mat extra clean and in good working order, and don't change your prices yet. I've found that I keep many customers because the mat is clean, and because we respond to any break downs or customer complaints ASAP.

Many customers told us how happy they were when we reopened the mat after my father's (the owner) death. They hated going to the other mat because it was dirty, no change machine, no response to complaints, etc. It's the little things that keep 'em coming back...

[laundryman79]

I wasn't trying to sound harsh. I'm curious, did you pay cash for the store or buy on a CD? If on a CD I would try to do a little due diligence and find out if the previous owner knew about it, if so I would fight for a lowering of the CD amount, since if you knew about this other store before hand then the value would be much less. If you paid cash then I guess you are stuck.

I've seen cases where the new store brings in so much new business that it overflows to the existing store like yours.

[MrsNewMat]

I am stuck.....I bought it cash.

What is CD by the way?

[laundryman79]

Contract for Deed.

Sorry for the situation. Follow the advice others gave and hope for the best.

[JimG17]

Also, try to build your commercial WD&F business. Takes time to build, but extends the limit of your business.

[coin]

BKROSS,

I'd like to check out your mat.

I've been looking to buy one since early this year and would love to pick your brain and get some advice.

Let me know if you are game and I'll drive up there at a time convenient for you.