Commercial Accounts

[lacycooper]

We are starting to get into commercial accounts. We want to do a mailer introducing our services, but I was wondering which types of business have you all had the most luck with response? We would like to focus on one or two of the following: restaurants, salons, fitness clubs, dr. offices, hotels.
We can't afford to try all at one time, so which type would be most likely to need pick up laundry service? I appreciate any guidance.Thanks!

[YoungJedi]

Lacy,
Where is your laundry? The more forthcoming you are with info about yourself, the more people will be willing to lend a hand.

Regarding mailers and response rates, regardless of who you target your response rate is going to be very low. If you want business...go get it. Pound the pavement. Meet the people. Convince them in a face to face manner that you can provide better service than their current provider.

A mailer won't do that for you no matter how nice it looks.

Jason

[kees]

Lacy,
Where is your laundry? The more forthcoming you are with info about yourself, the more people will be willing to lend a hand.

Regarding mailers and response rates, regardless of who you target your response rate is going to be very low. If you want business...go get it. Pound the pavement. Meet the people. Convince them in a face to face manner that you can provide better service than their current provider.

A mailer won't do that for you no matter how nice it looks.

Jason

I think Jason is right on the money. Have you considered doing a load for free for a company to show them how you can help fill their need? That way you might gain potential customers.

Suzy
:cool:

[moresales]

we started with one account two years ago this month and are now up to 51 commercial accounts. we charge a flat fee and collect the same amount each week/visit no matter how much they turn in. It's been a huge success but we did it WITHOUT flyers and just put the $ back into the business

[YoungJedi]

The flat rate idea is interesting. Is anyone doing that with gym towels? Seems like they would be all over an arrangement like that.

[dbrown2508]

Tell me more. What types of accounts are you getting? What is the flat fee (and does it vary by customer or type of customer). How did you get the accounts? And do you need to do anything to stop them from abusing the flat rate?

[kees]

we started with one account two years ago this month and are now up to 51 commercial accounts. we charge a flat fee and collect the same amount each week/visit no matter how much they turn in. It's been a huge success but we did it WITHOUT flyers and just put the $ back into the business

How did you get these accounts?

Suzy
:cool:

[moresales]

I just got out and knocked on doors. I was competing with the big industrial laundries that offer the world on a long contract. I imitated their pick up and delivery service once a week and saved the customers between $500 to $1,500 a year. One customer saved over $5,000 a year with my service. I tried different kinds of customers but mostly have small restaurants. The customers vary ie I clean dust mops for a few schools, mops for a fortune 500 mfg plant, towels for night clubs, bar towels and aprons for several restaurants, tanning salon, marina, vfw, golf course, church resort, etc It's not too hard but once you get going the income is pretty much steady and you can expect that amount to come in on a regular weekly basis.

[moresales]

Tell me more. What types of accounts are you getting? What is the flat fee (and does it vary by customer or type of customer). How did you get the accounts? And do you need to do anything to stop them from abusing the flat rate?

I have a min rate per stop. I tack on a "delivery rate" based on far out I go

Yes some towels are abused, lost or ruined but I also add a "replacement rate" to the weekly total based on the type of customer ie a bbq joint will ruin more towels for obvious reasons and even a tanning salon with the makeup stains than, say, a gym towel account. The high abuse accounts need a higher replacement rate that you can agree on up front. Keep in mind that there are great towel accounts or prospects all around if you look closely. For example, a major city nearby spends $260 a month on gym towel service alone for it's employees.

[dbrown2508]

So when you talk about a replacement rate, you mean you agree with a customer something like: "In a six month period, I will pay for new towels only if you have to replace over x%".

Or do you own and replace the towels yourself?

[YoungJedi]

I have a min rate per stop. I tack on a "delivery rate" based on far out I go

Yes some towels are abused, lost or ruined but I also add a "replacement rate" to the weekly total based on the type of customer ie a bbq joint will ruin more towels for obvious reasons and even a tanning salon with the makeup stains than, say, a gym towel account. The high abuse accounts need a higher replacement rate that you can agree on up front. Keep in mind that there are great towel accounts or prospects all around if you look closely. For example, a major city nearby spends $260 a month on gym towel service alone for it's employees.

More,
Where are you purchasing your towels? What type of towel or quality grade are you offering your customers? I've got a gym that is primed to be picked up, just haven't had time to figure out where to get the towels. Any insight would be greatly appreciated.

Jason

[moresales]

I will almost always tack on a replacement rate of 3~5% of their inventory if I have to buy the towels and charge it on a weekly basis. They don't like the "big bill" every 6 months or so. A little each week is easier for them and adds up for me.
So if I am charging .10 cents per towel (that i own) times, say, 100 or what ever we agree on, then that would be $10 or so PLUS the replacement charge of .35cents per towel at 5% of inventory (5 x .35= $1.75) Together the bill might be $11.75. In a 6 month period that small weekly charge could be $1.75 x 26 weeks=$45.50. It's just always easier to get $1.75 a week out of a customer than $45.50 every 6 months or so.
That $1.75 in replacements can add up in your favor too. $1.75 x 40 clients = $70 extra dollars to spend if you need it or not on replacements.

[moresales]

More,
Where are you purchasing your towels? What type of towel or quality grade are you offering your customers? I've got a gym that is primed to be picked up, just haven't had time to figure out where to get the towels. Any insight would be greatly appreciated.

Jason

I just look for awesome deals and have some great contacts to find the towels. There is a distributor in GA called "Wholesale Textiles" you can try and ask for Chuck. Another is in Blue Ridge, GA "Blue Ridge Textiles" (not sure if they will be open long though) The best is a hotel supply and distributor here in Chattanooga TN called "AVM" I just bought 75 nice thick gym towels for about $25 He supplies to hotels all over the south.
As far as towel grade, I always prefer the 32oz bar towel with a stripe down the middle. You get a lot more washes out of them and it helps you outpace any competition. They may offer cheaper towels but always compare yours to theirs and they will pick you everytime when you show how thin their towels are. If you ever buy a bale (1,000 to 1,200) of bar towels, you should never spend much more than $300 including the shipping. I have bought a bale of "misc/odd towels" for $170 from Wholesale Textiles before

[YoungJedi]

Great information. Thanks More. Really appreciate the insight.

Jason

[moresales]

[We can't afford to try all at one time, so which type would be most likely to need pick up laundry service? I appreciate any guidance.Thanks![/QUOTE]

Hey I don't know why I didn't tell you this earlier but have you tried a local school for their dust mops? If you don't want to spend a dime on new product, just offer to wash their dust mops. They may have a janitorial business that is over that and you could use them by being the subcontractor.
last week, I got a call from a janitorial company (I wash mops for one of his schools) and he gave me two more schools to start service. I returned the favor and referred him to another school customer of mine who is probably going to switch to his company.

If you think about it, I didn't spend a dime buying new product and nothing toward advertising either.

How about the Boys and Girls Club? YMCA? Private Schools?

[CanCanCase]

Sorry for the hijack, but this thread was started almost a month ago as the ONLY post by a new member. I can appreciate that there is good information being kicked around, so I wouldn't propose that the thread be killed, but how about an administrative move to the new section specifically created for this particular topic?

- Case