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I recently raised dryer pricing from 10 minutes per quarter to 8 minutes and noticed an immediate increase in revenue. Due to higher utility costs, I plan to increase all washer prices April 1. Can I expect a similar increase in revenue? How do the customers react to a price increase? What is average wash pricing? I have only been in the coin op business for 5 months and would appreciate any comments.
Marianne
03-22-2001, 07:20 AM
I have heard that washers are sometimes priced at 10 cents per pound of capacity. I price my largest washers at about 10 cents per pound but smaller washers are priced a little higher so there is a price advantage for the customer to use the larger washers.
Customers seldom complain about a 25 cent increase in washer price, except for those who are complainers by nature. If your laundromat is excellent in every respect you can charge more than competitors. You will lose the bargain hunter customers who tend to overstuff machines. The extra quarter will pay you back for losing that customer. Say a prayer for the laundromat that gets your lost customer.
PeterH
03-23-2001, 03:27 AM
I recently jumped my Wasco triples from 2.50 to 3.50. I've rec'd a few nasty comments, but at the end of the week, not only has revenue skyrocketed, but turns are actually up! I was flabbergasted to see this! Doubles and tops have only increased in quarter increments. Doubles went from 1.25 a 15 months ago when I bought the store, to 1.50 last June, to 1.75 on March 1st (same time as the triple). Tops went from 1.00 to 1.25 on Jan 1st, the same time my 30# dryers when to 8 mins/quarter. Should electric go up, the doulbes and tops will see another .25 increase.
-ph
TKLaundry
03-24-2001, 07:57 PM
I am considering raising my dryer prices to 8 minutes for .25 as well. What kind of impact does this have on weekends when there is already a dryer crunch?
Dave
Howard
03-25-2001, 01:50 AM
I don't see it impacting anything other than revenue. It does not change how long it takes to dry clothing, only how much people spend.
Marianne
03-25-2001, 02:25 AM
If you can convince your customers to deposit enough quarters to dry the load all at once you will save dryer time. The cool down phase will waste about two and a half times its length if the clothes are still damp.
Marianne
03-25-2001, 09:02 PM
You will not save time or gas by reducing the dryer's high temperature. I have not run the numbers but I believe you will net more money. Also, by all means, raise the price of your washers. Your prices are low for both of the markets I serve. If you underprice, you risk not being able to keep up with the cost of repairs and replacements.
TKLaundry
03-26-2001, 03:56 AM
Fortunately nearly every customer that I have puts enough money into the dryers to do the load the first time and they don't do a quarter at a time. I also reduced the "high" temperature from 190 to 180 degrees (I left the perm press at 160 and low at 130). As for top loaders, I currently charge $1 for cold and warm and $1.25 for hot and $2.25 for my 25# fronts I am thinking of increasing them all by .25. Any thoughts?
Dave
TKLaundry
03-26-2001, 11:39 PM
Actually I did a new survey of my market today, and it seems that most of my prices are in line with my competitors. Of the 6 other laundromats within a mile and a half of my store only one has an 8 minute dry time for a quarter and at least one other has a lower price for the 25# machine. I will have to review the notes and talk to my nephew before I get a clearer picture of my area.