Free Soap Offer - is it worth?

[brite]

I am trying to figure out how mat owners run free soap offers. I have seen them giving away free tide soap box per washer is this offer worth doing to attract new customers. Has anybody done this and if yes what is the best way to offer these kind of deals.

[Adamski]

brite,

My brother (who was my competitor) used to give free soap in his laundromat. His laundromat and mine were the only 2 laundormats in that town. He set up a laundry cart with a liner in the basket and filled it with Orvus (Commercial name for Tide). He bought the Orvus in 50 lb bags. He had a cup attached by a chain to the cart. Customers could wheel the cart up to any washer and scoop a cup of soap onto their load.

The drawback is you have to buy the Orvus and there is a tendency for customers to use too much soap because it's free. Anytime you're giving something away, you have less profit per load and therefore you have less incentive to maintain your laundromat. You start to think: "Well, I don't have to keep this place as clean as Larry's store because I'm giving free soap and he isn't." As time goes on you reason: "Well, it doesn't matter if my equipment is not as up to date as Larry's stuff because I'm giving free soap and Larry isn't." So, the bottom line is, free soap may give you an initial boost but if you continue the promotion long term (years), it becomes a disincentive to improve the store.

Larry /ubbthreads/images/graemlins/cool.gif

[brite]

I have see people giving away smal 1.8 oz Tide

[galaga]

A box cost about $.30 or more,if you wan to do that,why not lower your vend price $.25?
I don't think it is good idea,I see some laundry onwers do it but not really help their business.Some people may like Tide,some like other soap,it is a sample business,keep it sample!

[wdbgelaundromat]

We buy the Windfresh buckets of soap from Sam's club. We give free soap out everyday! We see it as our advertising cost. We have people that come specificaly for that reason. It runs us about 20 cents a scoop. I personally know its a marketable ammenity because my competitors have started giving away free soap.

[Adamski]

wdbgelaundromat,

When you give away soap, you incure two costs. First, you have the cost to buy the soap that you are giving away. Second, you have the cost of the lost profit due to severely decreased soap sales from your vender.

The fact that your competitors follow your lead doesn't mean the Free Soap is a good idea ... it just means your competitors don't have much imagination.

Any operator can have a give-away. Earlier this year, I considered giving a shiny new car away. My electric entrance doors have a feature that allows the 4 panels to "break away" outward in an emergency. A side benefit of this feature is I can open my entrances up wide enough to drive a car inside. And ... I do have room to park a car inside too. Hence the thought about the car give-away. Has anyone ever done this?

Larry /ubbthreads/images/graemlins/cool.gif

[galaga]

I own all the video games in my laundromats,so if I am in store,I may give customers,emplyee's kids free game credit since cost me nothing and I like to test the game when I am there.I do offer free TV,Radio,washroom for customers and emplyees.
I know some jukebox operator will give bar red quarters or token,so bar emplyee can give people free credit for the jukebox.

[earlgrey]

My store is self service and I am only there a 2 or 3 times a week. Even with that I have met alot of regulars, some of which do 5-7 loads at a time. For them I try to hand out some boxes of Bounce or the like, and give away candy and drinks to kids. It has usually turned a good customer into a telling people about the store customer. Simple cheap and effective in my book.

[vernonmaytag]

To all the "nay sayers".

It's what ever works for you, really. Some places, an advertised "free soap day" would do wonders, in other places, all it would do is cost you (you give away soap but don't attract new customers).

In our case, we don't. Our best promo has been the punch cards, 12 loads, next load free (both for walk in wash as well as WDF ones). Our best claim to fame is our cleanliness, we get more moving to us for that than anything else.