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View Full Version : Gas prices are going to require some new thought


LEEHUSTON
07-27-2003, 08:12 PM
These natural gas prices are beating the hell out of my profits. I have raised prices, no other stores in town have for some stupid reason. I am seriously thinking about cutting the hot water heater off and actually lowering washer prices and explaining to people that untill this ridiculous gas pricing settles down we are better off with cold water washing. I know that the majority of household laundry can be effectively cleaned with cold water. Folks, we need to do something. And all this talk about going out and spending $20 - $25,000 on a new hot water heater that is supposed to be 99% efficient is not a good answer for me.I would like to see the whole industry cut the hot water heaters off for a month and just see what the savings are. Might be a good protest too! What do you think?

Howard
07-27-2003, 09:30 PM
You are missing half the picture, and I'm not sure about your idea on hot water. The half you are missing is dryers, are you going to shut them off as well?

Do you really think a laundromat protest will have any impact on anything. Just operate responsibly and keep to your price increases - remember you are in the business of reselling water, gas and electric - if you don't pass those costs along you are out of business, its that simple.

LEEHUSTON
07-31-2003, 06:56 PM
I know that half the gas bill is dryers. But dryers will not dry clothes without natural gas. Washing machines with cold water, soap and correct loading will wash reasonalbly well. My point is If I could reduce my gas bill by 50% is that not a good thing?

Howard
07-31-2003, 07:26 PM
I think you will drive away many customers if you do that. Perhaps make a few of the machines cold only and offer them at a lower price if you want. Most customers want hot water.

Put in a high eff water heater that will save you some money. I recently replaced mine and found the cost to go with a high eff versus a standard one would pay for itself in less than 9 months of use. Many customers tell me they really value the fact that I have good hot water and they stoped going to their other mat and came to me because of it.

CleanSpot
07-31-2003, 10:19 PM
Most customers really won't give a darn about your costs being high. Going to cold water only will only loose you customers. The ONLY way is to pass on the costs. If you are higher than your competitors that's OK. Just keep your store clean and your machines in order. Make sure your help is friendly and helpful. the good customers will stay and the cheapskates will go to the low ball places. I've seen this so many times. The cheapskates ultimately end up with all the bargain hunters..you know, the ones who overload, oversoap, make big messes in your store, break your equipment and then complain about everything! And ultimately it is the cheapskates who go belly up when rates jump like they did a couple years ago.
One of my husbands favorite sayings is "If we're getting too many undesirables our prices are too low."
One other note: if you make some machines cold water only or cheaper...be prepared for people to overload, oversuds and then ask for their money back.