competition boundary

[James2011]

Except the case of rural area, what do you think is the radius of competition? IOW, the location of the closest mat can be in 1mile,or 2mile, or 3,or 5, or 10 miles away from your mat, but we know the other mat which is 10 miles away shouldn't be a problem, and 0.5mile should be a strong competition...

Then what is the maximum distance from your mat which you consider it as "competition"?

[MrMachine]

Except the case of rural area, what do you think is the radius of competition? IOW, the location of the closest mat can be in 1mile,or 2mile, or 3,or 5, or 10 miles away from your mat, but we know the other mat which is 10 miles away shouldn't be a problem, and 0.5mile should be a strong competition...

Then what is the maximum distance from your mat which you consider it as "competition"?

Depends how dense your local population is. I'm in NYC. I have a mat with a competitor right down the block. Six blocks away, there are THREE mats at the same intersection!! And I'm not counting all the apartment house Laundry Rooms in between.
I have another location that has 2 BIG Mats (75 washers/75 Dryers each) only 4 blocks away from me and 3 blocks away from each other.

If all the mats in your area are always crowded, with high prices, and run down condition, then it MAY, and I repeat MAY be an ok location you are looking at.

[DaveLevenson]

I have noticed that in the cities, most customers walk to the nearest laundromat. Competitors are significant if they are within a comfortable walk for someone carrying a load of laundry or pushing it on a cart.

My store is in a small suburban town. Most customers drive. There are significant competitors a few miles away.

Bottom line, they're competitors if they're within five or ten minutes travel time by the mode used in your neighborhood.

[dbrown2508]

I don't know if I'm that different, but I am in the suburbs of Toronto. There are apartments all around - many within walking distance, and most wih apartment mats (Built in late 70's or so). But my mat is busy, and I'd say 80% or more of the people drive (if you want to call it that - many of the vehicles are something to look at).

I get most of my customers within about 3 miles, however I pull some in from 10 miles or more - especially those ones who load up all of my 55 pound machines at once.

Certainly in my market, I think you can draw from a greater distance. Many people pass 4 or 5 mats before they get to mine.

[MrMachine]

I don't know if I'm that different, but I am in the suburbs of Toronto. There are apartments all around - many within walking distance, and most wih apartment mats (Built in late 70's or so). But my mat is busy, and I'd say 80% or more of the people drive (if you want to call it that - many of the vehicles are something to look at).

I get most of my customers within about 3 miles, however I pull some in from 10 miles or more - especially those ones who load up all of my 55 pound machines at once.

Certainly in my market, I think you can draw from a greater distance. Many people pass 4 or 5 mats before they get to mine.


If you have easy parking, I bet it's your big machines as one of the main factors that your mat is doing well.

[dbrown2508]

Paul:

You are probably right. There is great parking there. I'm planning on another 4 55 pound machines soon. If I can attract 1 turn a day from outside (or the equivalent of peopl using the 55s instead of the 40s) it will pay for them.

If that is the case, how far should I throw out the net?

[MrMachine]

Paul:

You are probably right. There is great parking there. I'm planning on another 4 55 pound machines soon. If I can attract 1 turn a day from outside (or the equivalent of peopl using the 55s instead of the 40s) it will pay for them.

If that is the case, how far should I throw out the net?

Have you considered putting in a couple of 80 pounders? They are expensive, but will make your unique, and the lbs per load vs the water usage is favorable.
Plus, if no other mats in your area have them, you will now have something great to shout about in your advertising: "Biggest Washers Around!!" or "HUGE 80lb Washers!!". That should really attract those big spending customers.

[dbrown2508]

I must admit I thought about it. There were a few reasons why I didn't go for them:

1 - price - could get 4 of the (what Wascomat now calls) 62 pounders for about $10k less than 3 77 pounders

2 - The smaller ones fit better in the space I am looking to put them in (not to mention the fact that the 77 pounder is 39 inches wide vs my 36 inch doorway).

3 - I only have 4 50 pound dryers, and was going to try to get away without putting more large dryers in.

4- There is a place about 3 miles away that has 2 of these - I think I get more turns on my 55s than he gets on his large machines.

[CanCanCase]

The OP said rural areas excepted, but I'll put in my 2 bits anyway...you get what you pay for around here!

I pull customers from over 30 miles in each direction... My stores are non-trivial competition for all the other laundromats in the county. Many of the other mat owners won't talk to me once they figure out who I am and what I just built in "their backyard."

Having said that, I've always been a believer that there is plenty of business to go around for everyone (if the market were over-saturated, I wouldn't have built.) I don't really see the other nearby stores as "competing"... In fact, if I get a customer who just doesn't want to learn EasyCard, I'll send them to the nearest coin store on their way home.

If you're going to be a "neighborhood laundromat", be sure your neighborhood is large and has few or no other laundromats. If you're going to be a "destination laundromat" the other stores will have less impact IF you go out of your way to be the better store.

-Case

[dbrown2508]

As I noted above, I am putting in 4 additional 55 pound machines (to make 8). I only have 4 50 pound dryers, and dont have the room to put in any more (i'd have to replace 3 year old TD30x30s - can't afford to do that).

I worry about lack of big dryers.

What do you think about me increasing my price on the 50 pound dryers - from 3 minutes for a quarter to 2 minutes for a quarter (my 30 pounders are 5 minutes for a quarter).

I get people right now who use a 20 pound washer using the 50 pound dryers cause they think they dry quicker. Maybe the increase in price will stop a bit of this. Thoughts?

[MrMachine]

As I noted above, I am putting in 4 additional 55 pound machines (to make 8). I only have 4 50 pound dryers, and dont have the room to put in any more (i'd have to replace 3 year old TD30x30s - can't afford to do that).

I worry about lack of big dryers.

What do you think about me increasing my price on the 50 pound dryers - from 3 minutes for a quarter to 2 minutes for a quarter (my 30 pounders are 5 minutes for a quarter).

I get people right now who use a 20 pound washer using the 50 pound dryers cause they think they dry quicker. Maybe the increase in price will stop a bit of this. Thoughts?

Why not compromise? Convert the Dryers to Dollar coins and go to 10 mins/Dollar.

[Adamski]

DBBrown,

Why worry about a problem before it happens? I have two 80 and nine 40 lb washers and my largest dryers are 35 lb. No problem. Customers simply divide up their loads for the dryers. Of course, I'd like to have a few 50 lb dryers and maybe someday I will if this economy ever improves. In the meantime, customers adapt.

Let your turns be your guide. If you start getting too many turns on the larger dryers, then charge a higher price or, better yet, do as Paul has suggested and begin your conversion over to dollar coins.

[dbrown2508]

Larry - I appreciate your help on this. I always find your posts enlightening.

What would you say is your guide for when to increase prices (both on washers and dryers) and by how much? I saw things getting busy in my mat on the weekend, so I do a 50% off dryer promo Tues to Thurs (which has increased business about 20% overall and spread business more evenly during the week).

Issues with equipment end up when I get one person using all 4 of my 55 pounders, and someone else wants to use - or when people use small washer and big dryers. I am the price leader in my market:

$2.75 - 20 lb
$4.75 - 40 lb
$6.25 - 55 lb
$0.25 for 5 min - 30 lb dryer
$0.25 for 3 min - 50 lb dryer

With the exception of a quarter on the 55 pounders, these are the highest prices in the City of Toronto - I am busy because the machines are fairly new, and the place is well maintained.

[Adamski]

...What would you say is your guide for when to increase prices (both on washers and dryers) and by how much?... I am the price leader in my market:

$2.75 - 20 lb
$4.75 - 40 lb
$6.25 - 55 lb
$0.25 for 5 min - 30 lb dryer
$0.25 for 3 min - 50 lb dryer

With the exception of a quarter on the 55 pounders, these are the highest prices in the City of Toronto...

dbrown,

For perspective, your wash prices are 25 cents less than mine and your 30 lb dry prices are equal to mine. You, like me, are the High Price Leader in your market. You offer washers in 3 sizes and dryers in 2 sizes. I offer washers in 5 sizes and dryers in 2 sizes. You are currently offering 50% off your dryers during mid week. I am not. Like mine, your place is clean and well maintained.

My suggestions for your consideration are as follows:

1. Consider purchasing two 77 lb Wascomat washers instead of four 62 lb washers. These 77 lb washers must be properly installed. To most operators, "properly installed" simply means securely bolted down and hooked up to properly sized utility lines. To me, "properly installed" means much more that that. It means creating a special area slightly isolated from nearby washers by providing 6" of wall space on each side and between these two washers. It means a wide aisle in front of these two washers. It means setting them at the best height so customers can reach the soap dispenser but not too low so they have trouble loading and unloading.

2. I know the 77 lb washers create some technical problems such as getting them into the building so consider installing a new electric entrance door at the same time. Electric sliding entrance doors here in the U.S. have a break-away feature in case of fire. The doors can simply be pushed outward by people rapidly exiting the building. With this feature, automatic doors can provide a very wide open space for bringing equipment into and out of the building. For example, my 10' wide automatic door unit (2 doors and 2 sidelights) can break away to provide a 9.5' wide by 7' high opening. I could drive a car into the building if I wanted to.

3. Consider adding any other amenities to securely establish yourself as the High Price Leader. These could include: Flat screen TV, air conditioning, WIFI, etc.

4. After completing whatever improvements you make, consider adjusting your large washer prices up to an even dollar. This would also be a great time to begin moving your large washers from quarters to Loonies. Your plan should be to end up with all equipment on Loonies. Loonies will make it much easier for your customers to use your equipment ... especially those 2 shiny new 77 lb Wascomats!

5. Convert your 50 lb dryers from quarters to Loonies ($1.00 for 12 minutes). This should solve the problem of customers using those dryers for small loads.

6. Make sure you provide an easy way for your customers to obtain Loonies in exchange for currency.

[dbrown2508]

Larry:

Thank you for your response. I do have Wifi and this year fixed the air conditioning, and have satelite tv (no flat screens - will do that when these sets burn out. They are on 24/7).

All of my washers accept loonies and quarters (ie the Wasco 55 pound machines take 6 loonies and 1 quarter for $6.25). The dryers take only quarters right now (but loonies for the dryer is a good idea, that I will explore. I see the new Electrolux dryers have the ability to take both - wonder if I can retrofit these on my TD30x30s).

My 2 change machines dispense quarters and loonies, and accept $5, $10, and $20 bills, plus $2 coin (a toonie as it is nicknamed). It will also give a loonie for 4 quarters, or 4 quarters for a loonie.

I agree with your suggestion about the entrance door. I've owned the mat for less than a year, and think that was one of their biggest oversights. I see people struggle with the door all the time.

I am curious about your suggestion to go with 77 pound machines vs 62 pounders. I've even asked the heavy users of my largest machines (who say to get more of the smaller ones). What is your rationale for going bigger rather than more of the 62 pound machines? Is it to cater to those people who just want to use the biggest machine in the place, no matter what? Or is it to gibe me something that most others don't have?

On pricing, I have a competitor that is vending Wascomat W75s at $2.25 to W185s at $5.25. They are less than 3 miles away (we somewhat compete). The buildings around my mat have brand new Coinamatic machines (using cards) at $2.15 per wash). I can possibly sneak up a quarter on each, but $0.75 on the large machines? (and can't go $0.50 - the coin drop only has 8 slots).

Doug

[Adamski]

... I am curious about your suggestion to go with 77 pound machines vs 62 pounders. I've even asked the heavy users of my largest machines (who say to get more of the smaller ones). What is your rationale for going bigger rather than more of the 62 pound machines? Is it to cater to those people who just want to use the biggest machine in the place, no matter what? Or is it to gibe me something that most others don't have?

On pricing, I have a competitor that is vending Wascomat W75s at $2.25 to W185s at $5.25. They are less than 3 miles away (we somewhat compete). The buildings around my mat have brand new Coinamatic machines (using cards) at $2.15 per wash). I can possibly sneak up a quarter on each, but $0.75 on the large machines? (and can't go $0.50 - the coin drop only has 8 slots).

Doug,

When poling your customers to get their opinions, remember, they are going to want more of what they're used to using. They won't ask for the unknown and unfamiliar.

An earlier post mentioned that customers are waiting in line for your 55 lb Wascomats. This leads me to believe that you have a number of customers who prefer to use very large washers. With that in mind, I think the 77 lb washers would be accepted quite well. I think buying 4 more 55 lb (now called 62 lb?) washers would give you too many of that size unless your place is HUGE and if it is huge, you should have some larger washers anyway. This is all about getting the most bang for your buck. I think you would serve your customers better by offering an electric entrance door and two 77 lb washers then if you just offer 4 more of the 55/62 lb washers.

Turning to your vend pricing questions, if you're going to be the High Price Leader then you need to be willing to lead. You can't be a Low Price Follower and a High Price Leader at the same time. There is little comparison between your attended laundromat and the unattended wash rooms in the local apartment buildings. You need to set your prices with customer convenience and satisfaction as the number one goal. Give your customers a good value and they'll beat a path to your door regardless of the Charity prices others may be offering. So I would approach this with the view of providing increased customer convenience (automatic doors, looney only accepters on the largest washers and dryers, more sizes of washers to choose from) and then slightly increasing or decreasing vend prices to eliminate the quarter coin wherever possible. You already know how much easier it is for your customers to insert a few loonies to start a washer instead of 19+ quarters. I'm merely suggesting that you move toward the next level by eliminating quarters wherever practical. If you're using coin slides now, consider whether you can convert to the more user-friendly coin drops as you move toward elimination of the quarter coin.

You can email me at laundromatman@comcast.net for detailed information on how to set up new 77 lb washers. As I mentioned before, these require special consideration not generally afforded smaller washers.