Card Systems

[Jim_F.]

I hear alot of positive things from persons on this and other BB's regarding card systems. I never hear anything negative.

My distributor says they would not sell a laundromat card system to their worst enemy. They will however put them in large apartment laundries. There are only two card stores in my midwestern state and both are bleeding to death, because customers do not like them. I also hear from my distributor that more stores across the country are switching from cards back to coin, than from coin to cards.

I'm curious what others think about them and if anyone has had negative experiences? I personally think they do better on the East coast than the rest of the country.

[Laundry_Mike]

Although I do not have a card system, I have researched them. As far as I can see the only negative is the initial cost of the system and installation. People as a rule do not like changes. There will probably be some initial resentment from some of your customers, but if they like your store, they should soon become used to the cards, and actually see them as a benefit. It is easier to insert a card than to load a slide or drop quarters. For example on my 50# washers, customers have to drop 20 quarters one at a time to start the washer. It would be much nicer to just insert a card. I see card operated stores as the future of the industry.

[Jim_F.]

Perhaps I should have asked my question differently. I know about all the theoretical benefits of the card system. But apparently there is growing evidence that they are not being accepted well by customers. For instance, I know there were five card stores in the Detroit area that converted back to coins, within the last six months. There is a new card store I know of, that is preparing a lawsuit against both the distributor and the card manufacturer for fraud.

I think it would be different if all or a majority of stores used cards. With what I've seen I'm beginning to wonder if the card store concept might die out.

[Howard]

Strange, I love my card system and so do my customers. Every owner I know that has a card store would never even consider going back to quarters. I know people both in NJ and CA (east and west coast) that feel this way. I think it has to do with your market and how you handle it. Everyone I know that has one is either fully or partiall attended, that may make a difference.

Perhaps the stores that have problems have other fundamental problems with their business. I have two competitors that use quarters, and one is getting ready to convert to cards as they see how well my customers like it.

[dcrout]

Howard. I'm not sure if I should be asking, but which Card vendor do you use? Thanks.

[Howard]

EasyCard

[dcrout]

Thanks a lot Howard!!!

[Mark]

I know of only 1 card store in NJ that is considering ditching their card system. They tried (unsuccessfully) to have coin drops and cards!! Customers that were reluctant to change were never forced to use the cards.

Jim,

Please give some more details. Why are these owners going back to coins? Is there more to the story than customer acceptance? Are they using smart cards and charging for the cards? Are these stores fully attended? Do the attendants speak the same language as the customer base? Are the attendants making an effort to educate each customer? Are the owners hands-on?

I am bldg a new store that is card-based and I am very interested in issues that these folks are having?

My main concern initially was customer acceptance, but I have met several local owners that are very happy with their systems as are their customers - "no quarters to carry is a big marketing advantage".

Ask the average laundry customer about the experience of loading 24+ quarters into a large machine one at a time and how many are also rejected!

Thanks!

[Jim_F.]

Hello Mark,

Both of the laundromats I spoke of in my state are fully attended. The attendants speak the language and help with the customers. I know one place is the Smart Card variety and one is not. I don't remember which kind that one is, but I think it was Easy Card. The Smart Card store is new and they have even went to giving the cards away for free and putting $5.00 on it for free with an additional purchase. His nearest competitor is a store which uses tokens. I've went to both at different times and at the token store people are waiting in line, while the card store is empty. As far as owners hands on I do not know. Both are clean and well kept, just I know both are hurting. I will have to get more info. on the Detroit thing and where my distributor got the card info from.

You speak of the marketing advantage of not having to carry coins. I hear of cards owners talking about "float." Well you know some of that "float" will never be used, either because the customer loses the card or they just never come back. Maybe they are the once a year customer coming in to wash that comforter. Well maybe there is one buck left on that card, but the customer might look at that like they were ripped off for that buck and never come back.

I originally posted my question to see if anyone was dissatisfied with their card system. It sounds like you have already made your decision about cards, since you are building. As I said, although I personally question their usefulness, I do think cards would do well in some areas of the country. I think you would probably do fine on the East coast. I wish you luck with your new store.

[RWSmith]

The only negative I have heard about a card store is the amount of money you have to keep on hand for refunds. It seems that some customers do not want to keep a balance on their card. My friend has had a card store for about three years. He has to keep $900 at his store instead of the usual $350.00 for refunds. I can give you his phone number if you e mail me washman3@sunet.net.
Good luck

[Howard]

Refunds, we don't give no stinkin refunds :~}

Just tell people that they should only put on the card what they are going to use if they have a problem carrying a balance. Why would you operate a store by having people put excess money on the card and then wanting to get it back - does not make much sense. They need to educate the customers so they don't have this problem.

[trek]

I recently opened a store in Central Illinois, which is card-system based. After careful planning, and research into all of the card systems available, I chose to go with Easy Card.

The additional cost of implementing a card system is much more doable if it is being implemented into a new store rathern than an existing store, however, a successful transition of a coin store to card is completely feasible.

As for the benefits of the system - they are immeasureable. My customers love it, and my staff loves it. (I do have one beef though - the readers on the dryers tend to collect lint, and at times it can become frustrating when the reader does not read the magnetic stripe on the card) To solve this problem, I just have to spray the readers out with canned air.

In regards to card refunds, I simply do not give any. My store is fully attended, and my attendants greet every customer through our door. If a customer is not recognized as having been to our store before, my attendants ask if they are new. If they are, we show the customer around the store, point out the the features of our Washers & Dryers, and the settings of each. Lastly, we help them get their card, and request for them to register their card into our "Frequent Washers Club." By doing this, we let them know that for every 12 washes, they receive their 13th wash free in one of our double loaders, and convey to them that if their card is lost, we are able to transfer the balance of their card onto a new card for them. By doing this, I am able to track customer useage down to the day and time of day of useage, and their washing patterns. Additionally, our attendants mention that no refunds are given, but the card is good for future visits, and they should hold onto it for their future trips to our laundry. To date, I have only had one complaint, and I sent the woman a check (her unused balance was about $21.00). She claimed to be so unhappy with our laundry, that she never wanted to come back - I of course appologized, and sent her a check with a self addressed return envelope which allowed her to return her card to me. Three days later I received her card back in the mail, and have probably avoided the negative word of mouth advertising I would have suffered otherwise.

Good luck with making a decision about card systems - as said before, I would go back to coins for anything.

Regards,
Trek

[dun_ugly]

What is the average cost to switch from a coin system to a card system for a laundry with about 16-20 machines?

[LEEHUSTON]

I have the ESD system and for the most part I have been very pleased with the versatility of the system and the acceptance has been extremely positve. I opened a new store with the system. Yea, we get an occcasional customer that looks like they are about to cry or rip your head off when you first try to explain the system, but almost without fail you can convert them to the system if you convince them that you are not going to rip them off and they can have all of the money back that they don't use anytime they want. The big draw back on the system that I have is the fact that ESD customer service stinks and the fact that I am going to be buying these cards forever. Even though I charge a deposit, it is still no fun to sit down and cut a check to ESD every other month or so. Parts are also for the most part only available from ESD. They keep thier hand in your pocket the whole way.

[Buddy]

ESD Card system uses smartcards which are expensive - about - $3.00 a piece. If you go with Magstrip cards they cost less than a dollar.

One of the advantages of card system not mentioned here is penny incremental in the price. You can increase your prices by a penny, nickle, dime or whatever denomination and customers don't realize right away your price increase because they have to do the revese math to figure out how much you charged for that wash.

[SpinTown]

We are in Dayton Ohio. Built a new store in January of 2002 and put in an EasyCard system. It's great. We have had very few negative responses from customers. Most love it. Refunds? Sure we will refund monies to anyone who asks IF they return their card to us too. That way we can re-use it in the machine. If they registered their card with us on their first visit, which is simply a form we had printed with customers name and address and card number, and they come on a subsequent visit without a card we can simply look up their card number on the computer and confirm what monies they had on their card and can replace it with a new one by voiding the old and transferring the balance. Customers love this, however, we subtract $1.00 for each card additional card issued. That's what the cards cost me.....we simply pass it on. That way they don't get into the habit of simply not bringing their card in each time knowing that we can look up the balance for them. Our soap vending machine is also equipped with EasyCard so theres no coin changer in our store. We have soda and snack machines. They take $1.00 bills so customers don't need a changer there either. I won't give out my float total for my first year, but I will tell you it's "up there". It doesn't take a rocket scientist to say thank you for letting me "use" your money until or if you can back in.

[Howard]

I have some questions for you on your easycard system, as I have one too. I was not able to e-mail them to you. Perhaps you could send me an e-mail address I could forward them to?

Howard
dad12s@hotmail.com

[SecretarytoBraveDave]

As someone who keeps tabs on the finances of the business I would love the card system and what it can do. However, as a consumer, I would not want to have to pay to do business with anyone, nor would I want a hassle from an establishment that forced me to use a card they made me use in order to do business with them. If I put too much money in the card, I would expect a refund without hassle. Maybe there should be a "credit option" with these cards? Float should not be an issue. Customers hate to do laundry, it is about the worst household job there is, besides cleaning a toilet. So, it is beneficial to make this chore as easy and pleasing as possible to your customers.

[Howard]

Sorry Kitty, cannot agree with you here. What about metro cards? You have to buy them and put money on them to use mass transit, and if you have extra money on them your option is to use it or loose it. Same goes for EasyPass for highway tolls.

No one makes people put extra money on a card, that is their choice. I personally don't charge for my cards, but some must. The problem is when you don't charge customers tend to abuse that and take as many as they want - and they do have a cost.

Its really no different than you offering one scoop of free soap but having some customers take several. If the customers cannot play fair then you have to charge a fee to discourage them from making you incur extra costs. Those that cause the cost should bear it.

Further, cards let you price by the penny, which is more fair to both you as an owner and to the customer. Instead of being way ahead of the curve or way behind the curve on costs you can keep pace with the increases. That way customers are not hit with 25 cent increases.

[SecretarytoBraveDave]

It would be GREAT! To be able to raise prices in increments the card stores are capable of, and the accounting that is available would make me a serious card store candidate. However, in the market we are in, I do not think the card store would be as widely accepted as it is in some areas. We have no tolls, no bus, no metro cards. WE do have SS on the debit system however. I think there would be a love hate relationship with the card system as I suppose there is a love hate relationship with the damn quarters. Currently I am having a tough time with my job as I cannot lift anything for several more weeks, I suppose this would not be an issue with the card system. Consumers are funny beasts, some may love it, while some may hate it. I guess you have to find if the customers in market will be the ones who love it?