crazy marketing or low price leader

[laundryaj]

For the 3 months of summer, we are historically down in volume. I'm thinking about testing the market out for being the low price leader or some other crazy idea.

What are some of the craziest marketing ploy have you implemented ? Please share you ideas. I will post my results before-after in percentages, following the season(likely in September).

thank you

ajay

[zoomnbyu]

Would recommend against it re being the low price leader. Once the low price leader always the low price leader.

One of stores I was looking at, in predominetly latino neighborhood, has a local vendor bring caterfood in on Saturday's. Nothing fancy, tacos and enchiladas. If you did something like that, Could be Cino de mayo summer, you would probably spend the same amount of cash on advertising and food without actually lowering the prices.

Todd

[Duane]

Why would anyone lower their prices?

If you lower your prices by say 10%, do you really think you will increase your customer base by 10% just to break even. And if you do increase your customer base by 10% to break even you will still be behind because of higher utilities, higher maintenance, more cleaning, more customer problems.

If anything raise prices! You can raise prices by 10%, lose some customers and still make more money at the end of the day.

Duane.

Wow.......

[brucehwalker]

I've done business shows, put cards on cars and at apartments, made sales calls on commercial accounts, given free service as raffle items, sponsored a 5-k, asked for referals, blown up balloons , even given one free wash and dry on a free box of tide for 5,000 incoming freshman.

One thing I will never do is be the low price leader. /ubbthreads/images/graemlins/grin.gif

[Howard]

Daune is 110% correct, as normal. If you want to do anything give them a free scoop of soap. NEVER discount your main product. This market is very different than WalMart. If you are cheaper people will not wash their clothing and then re-wash them again to save money - they can't stock up like canned goods. Lower prices mean lower revenue.

[Adamski]

Ajay,

"Low Price Leader" ... yah, right. Go ahead, knock yourself out ... literally.

Larry /ubbthreads/images/graemlins/cool.gif

[BMWHD3060]

[ QUOTE ]
For the 3 months of summer, we are historically down in volume. I'm thinking about testing the market out for being the low price leader or some other crazy idea.

What are some of the craziest marketing ploy have you implemented ? Please share you ideas. I will post my results before-after in percentages, following the season(likely in September).

thank you

ajay

[/ QUOTE ]

I Vote For Crazy Marketing, I never would lower prices.
Are We Voting?

[epic02]

Ajay summer months are usually slow for laundries IM use to it every year.

Once you lower prices people are going to always expect them low and those are the people who are going to leave when you raise them back up.* What happens when you get into a pricing war with your competition nobody is going to win. But the one who owns the property is going to have a huge advantage. Do you know what kind of advantage your competitors have over you. One of my competitors had is top loads at .50 cents I could of matched his price but instead I held my ground Cause I new it wouldn't be for long before he went out of business. Now his place is for sale. The bargin hunters left when he raised his prices back to normal.

Kenny

[Adamski]

[ QUOTE ]
One of my competitors had is top loads at .50 cents I could of matched his price but instead I held my ground Cause I new it wouldn't be for long before he went out of business. Now his place is for sale. The bargin hunters left when he raised his prices back to normal.

[/ QUOTE ]

Kenny,

You've provided a great example of how an operator can "knock himself out ... literally" by making sudden, off-the-cuff changes to his business plan.

Larry /ubbthreads/images/graemlins/cool.gif

[laundryaj]

Thank you guys for your candorness. let me attempt to answer some questions. This marketing idea is strictly for a very short period - 3months. My store: all brand new equipement(less than 3 years). In the meantime, my competition few doors down, has all 20+ years old equipment but is very busy. Why, you ask. He's $.50 cheaper at best in every washer size I own. My intention is to take some of that business.

I have another competition exactly 1.2miles from me. He's $.50 more expensive than I am. And it's a brand new store, less than a year old.

When this store opened, they offered free drying for 3 months. He has taken away atleast 25% of the market share.

WIth the marketing blitz of your ideas/past experiences in marketing, I am hoping to test the market. But again for a very short period - 3months.

I'm hoping to gain feedback from you on the things I should do to gain more customers, taking business away from existing MATS. I'm also hoping to keep those customers knowing the fact that I am providing a better service than them. the ultimate goal is to get them to change their habit.

ajay

[Adamski]

AJ,

Do you feel you're getting your share of the market or less than your share? Is the discounter getting more than his share of the market? Is the brand new store getting more than his share of the market?

Basically, your market has changed when that new store opened up. No flash in the pan marketing scam will solve your market loss problem. You need to re-establish your long range business plan but first you need to assess the market to determine where you will fit in.

Next, you need to view your facility as a customer views it. Bring a load of laundry from home and become a customer ... not just any customer but a very discerning customer. Write down what you like (as a customer) and what you don't like. If your store has some deficiencies such as inadequate parking or difficult ingress; you should address those problems first.

Larry /ubbthreads/images/graemlins/cool.gif

[laundryaj]

just yesterday, my employee told me a customer who had gone next door when we were busy is back doing her laundry with us this week. she said" did you know he is cheaper than you"!!?? But she went on said, "but I'm still going to come here". POint!! she recognized value.
we have cleaner facility. Very HOT dryers. plenty of to the door parking seating area, TV, etc..

I do my laundry here weekly, and I use different machine every time.

I have walked into every MAT in my area. Mine is the best , retooled MAT around <- customers have said that to me.
We are attendant when my competition is not.

I KNOW I can get more business, if I can determine a way to get them to change their habits. I know this because my neighbor with lessor of eveything I offer is very busy!!

[Adamski]

AJ,

Okay, now we're getting somewhere. You seem to feel that Mr Discounter (next door) is getting customers that you feel you should be getting. Does that about sum it up?

First of all, I don't believe in any form of short-term advertising or promotional program. They are simply not effective. I like long-term or, better yet, permanent advertising. What's "permanent" advertising? A large, effective sign that captures the attention of passers by is permanent advertising. These days, one can even buy LED chanageable message signs. So, if you don't have a good sign, consider putting up a new one to help project your clean, high value image.

Larry /ubbthreads/images/graemlins/cool.gif

[laundryaj]

signage is important and I agree. I will be getting a new sign made , just waiting on getting quotes. But I'm still not certain how to get more customers to walk in. I certainly have to offer them something to get them in to try, don't I ?

[zoomnbyu]

[ QUOTE ]
But I'm still not certain how to get more customers to walk in. I certainly have to offer them something to get them in to try, don't I ?

[/ QUOTE ]

You absolutely do but a temp promotion or cutting the price isn't that something. Your customers have to do laundry, it's not an option, so what you offer is clean, safe and working equipment at fair price. Give them that and they'll come.

[epic02]

Aj, You said it yourself A customer went to the lower price laundry and returned. That has to show for something. Others like her will recognize quality over value where you don't have to lower your prices.

Kenny

[surfflite]

I installed a customer suggestion box about a month ago. It is very interesting to read my customers "impression" of the place. Some of the suggestions are just outrageous (like buy a few more 60 pounders within the next week), but some are easily implemented (like putting up a bulletin board). Obviously, I cannot implement everyones ideas but I do what I can and it seems to be working. People like to see something they suggested actually done. It leaves a good impression and shows that we do care about their concerns. I've already had several customers state that they had left for various reasons but are now back based on word of mouth that there is a new owner, and that I am proactively making positive changes.

[jpb]

[ QUOTE ]
I installed a customer suggestion box about a month ago. It is very interesting to read my customers "impression" of the place. Some of the suggestions are just outrageous (like buy a few more 60 pounders within the next week), but some are easily implemented (like putting up a bulletin board). Obviously, I cannot implement everyones ideas but I do what I can and it seems to be working. People like to see something they suggested actually done. It leaves a good impression and shows that we do care about their concerns. I've already had several customers state that they had left for various reasons but are now back based on word of mouth that there is a new owner, and that I am proactively making positive changes.

[/ QUOTE ]

Did you buy a Customer Suggestion Box or did you make one or use something you had laying around?

[surfflite]

[ QUOTE ]
Did you buy a Customer Suggestion Box or did you make one or use something you had laying around?

[/ QUOTE ]

I picked one up at Office Max (it was labeled a ballot box) for ~$12.

[laundryaj]

That is a good idea. I'm going to implement that as well.

[laundryaj]

I don't disagree with you but how can I get them to walk to my place instead of his? Sometimes I actually get his customer because he is too busy!!!?

It's a matter of changing there habit right, if price is not the issue to them? How can I do that?
ajay

[epic02]

It's hard to tell you that because I don't know what his or your place looks like. There's are a lot of different factors Location being on top, Parking, customer service, ease of customer access in out, and to your laundry, and the customers perception of the place. Also a crowd of people draws in more. Sometimes on my busy days I see my overflow goes to the laundry down the street but I see them return. It takes time to gain a loyal customer base. It don't just happen over night. When a competitor comes in lowers his price some of my customers will go but as soon as they raise the price they come back. I've seen it many times over the years. Some mats have a lot of potential others don't, there just what they are.

Kenny

[galaga]

Improve your store store is important but I don't see anything wrong have "special price" for a while,almost every business do that to get new customers.
A lot business charge low price on one,2 item,hope you come in to buy the on sale stuff,also buy the others.
Customers move around anyway.
I am thinking about buying some newer machines so I can charge off hour special.

[neal]

I like to have a special price on a bank of machines once in a while to bring new customers. But you need to do the things that will keep them comming back once you have them in your store.

[galaga]

I agree.