Top load washer pricing?

[DanD]

My competitor has both front and top loaders.We are both new in the business and both are struggling at the moment.The advantage he has over me is that I have no top loaders.He is vending his top loader for a buck and my cheapest front loader is a 20 lb machine and vends for $1.50.My logic is that he may get more customers because of the lower price vend,but is he actually making any money after you consider the higher water usage and problems incurred with top loaders. I would appeciate any thoughts from experienced owners.thanks

[Duane]

He might be making some money in the short run, but the little he makes will not be enough to pay for maintenance, extra cleaning costs, etc., He will make enough to run the store, but not enough to re-invest to keep the store clean and fully maintained.

Your 20lb machines are still under priced, but due to your competition I wouldn't change them at this time. (usually .10 cents per pound is average)

He may get more customers, but you will probably have a better profit at less turns per day.

Put up signs stating how the front loaders clean better, take less soap, provide faster drying times, are 60% (approx) larger than a top loader and the front loaders are actually less expensive per pound.

12 lb top loader at $1 is .083 cents per pound.
20 lb front loader at $1.50 is only 7.5 cents per pound.

Keep your mat clean, maintained, well lighted and provide great customer service and charge a fair price and you will do fine.

By being a price leader and doing the above, you will also keep out the undesired customers that usually trash the place and cause problems.

Duane.

www.LMARIES.com (http://www.LMARIES.com)

[JamesWash]

If your fixed costs are low, and you can afford it. Set the same price with your competitor. Otherwise, set your prices higher that you can live with. I have 2 big laundromats (Spin Cycle and one local chain) around me. They all have top loaders, but I don't. However, I still survive their competition by providing something different based on my local market. Good luck.

[CleanSpot]

Wow, both of you have really low prices. Our top loaders are $1.50 and doubles are $2.25. I agree with Duane, tho. You may have to struggle at little until he caves, but try and be cleaner, friendlier, offer other services and amenities but NOT super low prices...it takes way too long to recover from a price war and really nobody wins.

[petefritz]

without having water/sewer and gas cost it is hard, but for math let's use 1 cent gal water/sewer, and 1.00 threm.
both dry at 8 mins per qtr., 80,000 BTU dryers
he is making money. Customer comes in with a big basket of clothes, puts them in your 1.50 20# machine, that high effecientcy spin out lets him dry for .75. Out the door he goes, spends total $2.25, your water cost, 17 gallons, cost .17, dry cost 24 min .40 cent, your profit $1.68

The same guy goes in the other store, has to split the load
2 tops. spend $2.00 He dry, takes longer spend 1.00
total spent $3.00
water cost .40, dry cost .53, his profit $2.07

Your advantage point: your water cost you less, but have bigger washers so can not really charge less.
His advantage: has smaller washer that he can charge less to use, but his water cost higher.

The distributors like to expalin this when they show you how much money you save not having top loaders.

The advantage is if you have people with 14 pound loads, to big for a top, just a little to small for your 20#. They wil try and stuff in the top anyway. You make more off this customer.
The person with a load of whites and load of darks will not want to pay for a bigger machine then they need.

You are actually cheaper than him, he is at about .083 cent a pound, you are only .075 a pound. I have found customers could care less on how much money YOU save on water, they only want to use the cheapest machine that thier clothes fit in.