incentive giving $5.00 to customers

[hecdav1]

I have a competitor that for some time has not been making much and been a newer laundromat now has come up sending by direct mail invitacions to come to do their laundry at his laundromat and he is giving $5.00 in quarters to do their wash I think this are desperate measures what is everyone here think of this idea or have you have hear of this tactic to Gain customers??

[AlanR]

I agree with your thinking that their offer might be a desperate act and I think it will probably backfire. I'd bet that most of those free quarters will go out of the front door in people's pockets. Requiring the freeloaders to spend the $5 in the mat would be a turn-off to most people for an assortment of reasons.

[neal]

I dont think 5 dollars is a very big draw to people. But a friend with a card store gave cards with money on them and he said it really helped his business get off the ground. Its a cheap way to make new customers. Its good to try lots of different things in the times were in now to build the business. We all need to replace the people that move away or just wash someplace else try our store.

[hecdav1]

thus far every time I hear any store using cards no coins seems as the way to get people to use this system always giving more that what is worth it most even sales people encourage to start giving for instance $25,00 per $20.00 giving a whole $5.00 for free to me that is quite a trade I see as loosing money decreasing your profit so cards in this case is a desadvantage yea most owners do like it because there is no collection of quarters but I rather count quarters if I was going to use cards I would not be giving a price break the trade off is a convinience for customer also

[Howard]

Not sure why you think "Most" card stores do that, I certainly do not and never would. I agree it is effectively giving a 20% discount all the time.

What I do with my card system, that is almost impossible to do with quarters (not totally impossible) is have an automatic frequent washer program - much like the airlines frequent flyer program. For each 15 washes of any size a customer does using the same card they earn a free double wash. Truly a trivial cost to me, but of high value to customers and it builds loyalty. It reduces the number of cards customers use and they feel they are getting something of valuable for free. It costs me nothing for those customers that only come a few times unlike the 20% discount approach.

[hecdav1]

my point another card system giving a freebe this is not a fast food business the card system as in the case of high spin washers /fast dryers etc etc this convinience comes with a cost to all laundry owners so it should customers should pay more for this convinince this mind set is what has this industry at the low end profit low return on your money

[Adamski]

hecdav1,

The direct mail promotion that your competitor is using was not well thought out and it's inefficient. A coin or card laundry has many direct mail options available for bringing new customers into the store. Since he's wasting a lot of his promotional dollars; he probably won't be able to maintain that program much longer.

If necessary, you can develop an in-store promotion complete with exterior banners to fight back.

Larry /ubbthreads/images/graemlins/cool.gif

[petefritz]

I have a comp who has 2 card stores, both about a mile in either direction. He is giving $25 for $20, also on wed wash all you want for $25, students get $1 off seniors get $1 off on double loads. Not sure if you can mix and match all the offers:)
Another marketing guru who thinks he can change the nature of this business. I susspect he has been loosing money on his newly to large for the market built card stores for at least 5 years, still drives new Cadillac SUV's though..

[hecdav1]

the competitor I mentioned giving $5.00in quarters offered via direct mail also inherited his money F.Y.I THIS THE KIND OF operators the laundry distributors are bringing to this bussines Cash business

[Jefflange]

At every trade show are distributor they talk about how with a card system you can raise ur prices by pennies and u will make more money. Instead of charging $1.75 u can charge $1.79 which is good if owners did that. But what I see is card stores charging less then coin stores, $1.69 while the coin guy is charging $1.75. Makes no sense to me.

[nycwash]

Giving a customer $22 card for every $20 they spend ecourages customers to put more money on the card. If they only spend $15 during their visit they have a very strong incencitive to come back to your store to make sure they dont loose $7 and since $7 doesnt wash much they will repeat the process.

[hecdav1]

is good that you card operator see it this way F.Y.I I have a few customers that drive at least 8 miles to visit my laundromat because their neighborhood laundry switched to cards so there is a downside to the card system some customers will not use it I myself not against the card system I think is a great idea and I see work fine in many places but unless customers do not have another choice they will use it and also if you start a brand new laundromat is good so all the customers that visit will know it and will get use to giving the new laundry

[Duane]

I have always given $2 for every $20 someone adds to their card at one time. When pricing my store I take into consideration on what I give out each month and price accordingly. Doesn't really add up to much, however the customer retention is tremendous.

My wife and I have always given back to the community. And now we give laundry cards with bonus money to domestic abuse centers, several churches that help families in need, local American Red Cross for families that lose their homes to fire or floods. At first it was just what we wanted to do, in the long run we found the goodwill turned into a loyal customer base. A card system allows us to do this and it also keeps the people who uses these charity cards anonymous.


It doesn't matter if someone gives $10 for every $10 added to their card, or if they give a free wash with every free wash. If their store is priced correctly and the give aways are taken into consideration then it isn't a big deal. Just like free dry, washer prices are doubled, but you still get free dry.

Of course if not done correctly or not thought out properly then it could be a disadvantage. Not much different than 75 cent top loaders or dryers at 12 minutes for a quarter..........

[Adamski]

Duane,

There is a consequence that all laundomats must bear when one laundromat gives FREE dry or a FREE wash. Giving something for free tends to devalue that service in the mind of the consumer. She will think, "If you're giving it away for free, it must not cost you much to buy it." So the consumer is left with the impression that the free dry or free wash is NOT A BIG DEAL.

Well, I think drying clothes IS a big deal and it's a costly deal too. Our customers need to learn that washers and dryers DON'T RUN FOR FREE or nearly free. Customers should always be charged for services rendered. Under special circumstances, some of those services may be temporarily discounted but never given away for free.

Larry /ubbthreads/images/graemlins/cool.gif

[hecdav1]

Bravo Well said

[Duane]

Larry,

I had a line in that said:

"The comment on free dry is just an example of a different kind of marketing. I don't agree with it, but I understand why they do it."

I guess I should have left the line in.... ;o)

Duane.

[neal]

[ QUOTE ]


I have always given $2 for every $20 someone adds to their card at one time. When pricing my store I take into consideration on what I give out each month and price accordingly. Doesn't really add up to much, however the customer retention is tremendous.

My wife and I have always given back to the community. And now we give laundry cards with bonus money to domestic abuse centers, several churches that help families in need, local American Red Cross for families that lose their homes to fire or floods. At first it was just what we wanted to do, in the long run we found the goodwill turned into a loyal customer base. A card system allows us to do this and it also keeps the people who uses these charity cards anonymous.


It doesn't matter if someone gives $10 for every $10 added to their card, or if they give a free wash with every free wash. If their store is priced correctly and the give aways are taken into consideration then it isn't a big deal. Just like free dry, washer prices are doubled, but you still get free dry.

Of course if not done correctly or not thought out properly then it could be a disadvantage. Not much different than 75 cent top loaders or dryers at 12 minutes for a quarter..........

[/ QUOTE ]

I agree its always a good idea to give back a little to your area!!

[Howard]

Card systems by themselves create loyalty. My frequent washer program creates more loyalty. Adding a built in 10% discount does little more - in my mind. Heck just yesterday I had a guy that looked homeless come in to wash, he took out his card and it has almost $20 on it. When he was finished drying he handed the card to the attendant and handed her a $20 and asked her to put it on the card so he would have money on it for next week. Enough said.