SecretarytoBraveDave
01-30-2002, 10:18 PM
You are multi-laundromat owner, competition has moved in. The first store that moved in 3 years ago hasn't really hurt you, but has taken some of the gravy away, and cost you to update because of their presence. The competition is currently for sale. A new laundromat is now under construction a few miles away from your store and the other coin-op, however the purchased property is not in the best location. This new coin-op will have the same equipment as you, from the distributor you use.
What do you do to protect your investment. Your store is dated, but has fairly new equipment, but not the best of mix for today's standards. How would you retain your customers? What is a realistic expectation for customer losses....
Charlie
02-05-2002, 03:07 AM
Interesting Question. Although I have only two stores, one of which is only open for 3 weeks, I have developed a philosophy of business. That philosophy is to always be working toward meeting every possible need of my customer base, making it most desirable to visit my store. This, of course, must be tempered by the need to avoid bankruptcy in the process.
First of all, walls and floors. It sounds like you are dated, not from equipment, but from interior. Paint is cheap, use it lavishly and often. Flooring, well, its not cheap, but VCT can be installed relatively inexpensively. Safety Zone by Armstrong is a special non-skid VCT that can be installed for about half the price or less of ceramic tile. If your ceiling is a drop ceiling, consider replacing the tiles. You can probably do your whole store for less than $1,000 if you do the work yourself.
Make sure you have at least two coin changers. Consider adding an ATM, for those customers who run short of cash.
Consider buying your competition. Maybe you can make one attended and one unattended or find another differentiation. You may be able to raise prices a little without close competition. At least you won't have to fight yourself over pricing!
If your mix is wrong, come up with a game plan and time-frame to improve it. After listening to all the comments at CLA trainings, my new store has 16 Wasco Emerald doubles, 12 triples, 3 50's, and 1 70. This is twice as many triples and larger than any other store in town, and its already obvious that the traffic is in the 50's, the single 70 (my customers love it, $6.50 for cold, $6.75 hot),then the triples. The doubles are collecting dust. I'm already figuring out how to replace some of them with larger machines!
Customers want what they want, and they will travel elsewhere if you don't give it to them. Its a cost of doing business. Plan for it, accept it, and you may find that the return is far more than you anticipate.
Charlie