View Full Version : New Laundromat Prices
BKROSS
03-23-2001, 03:41 AM
What should our game plan be regarding vend prices. We'll be the new kid on the block albeit far superior to all the others in every way. Having said that,the current market has TL at $ .75-$1.00 and 18#'s-1.25, 30#'s-$2; 40#'s-$2.75. I'll be the only one with two 75#'s. I'm still having trouble with the rule of thumb on pricing, if there is one....Will I be able to draw customers if I'm $ .75 higher?, $ .50 higher? At what point does value become secondary to price?
Thanks---
petefritz
03-26-2001, 02:04 AM
those are pretty low vend prices around you. Are you sure you can get a decent return on equity with that sort of pricing?
I am at 1.50 tops, 2.00 18#, 2.75 25#, 3.50 40# and 7 or 8 min dry. And still it is hard to get return numbers right.
Can't imagine having 20% 30% less revenue, don't know how you will make it on coin revenue.
BKROSS
03-26-2001, 04:23 AM
I plan to supplement the self-service business with a fine quality fluff and fold service (apparently non-existent in the area)
and aggressively seek commercial accounts. The other thing one must know is that we are
located in one of the most densely populated areas in California. Three blocks to the north of our store are over 50 apartment buildings with at least 2500 people, mostly families with low-income. Hopefully, we will set some new trends for vending prices in the greater Los Angeles area!
LEEHUSTON
03-30-2001, 02:15 PM
You do have some dog prices in your area, but the other laundries are probably unattended dogs too. I just opened a new store a year ago. I am 30%to 40% higher on all my competitors prices and doing well. BUT, I run the air condtioner, I insist that the store is clean all the time, I give free coffee, cable television, hot water, hot dryers, full cycles, no question refunds etc. I say give all the quality you can and charge what you need to stay afloat. If you give them the best you can they will come back. I think that holds true in any business especailly retail. For some reasoon alot of people don't see this business as a quality demanding busienss like the rest.