Ever talk with your competitors?

[brucehwalker]

TXU Ultilities just announced another rate hike. I am considering a 10% increase across the board price increase for all equipment, WDF, etc. I have a card store so I can go up in penny increments. My washer prices are a little higher than my closest competetitors and dryers are a bit cheeper. Overall I probably am a little higher but I have a nicer place with 2 year old equipment.

Anyway, I have met a few other local owners and I was considering having a meeting and inviting the other 6 owners in my town to talk about all of us raising our prices. Especially on top loaders which are .75 to 1.25. Anybody ever doen this and had any success/failure?

The latest survey from CLA suggested that prices aren't the main reason why customers come, but I don't want to run everyone off.

[thelaundrydoctor]

I don't know Bruce that might sound like price fixing? Some one else might have a better a better feel for that. The discussion I have been involved in have all stemed aroung just asking each other what we are vending each equiptment size at. Then I think you need to make the desission to change for your-self.

P.S. Considering all the things that you told me about your self and your competion you should be the price leader in that market!!!

[Howard]

Go to jail, go directly to jail, do not pass go, do not collect $200. You know this is illegal and are just asking for someone to approve it. Don't think so, call the department of justice they would be glad to tell you.

[brucehwalker]

Easy there Howie. I am as honest as they come. I'm just looking for answers and advice. The last thing I want is to be some guy's girlfriend at the State Penn. for a .05 cent increase in my Top Loader. Yikes!


FYI- I did email the USDOJ and I'm waiting for a reply. You can do the same at AskDOJ@usdoj.gov

[Howard]

Did not intend to imply you are less than honest - its just that this is patently illegal. It has been discussed here and on other boards before and it just shocks me how many see nothing wrong with this. Just because others do it does not make it legal.

[taters]

Howard,

Do you really think the federal goverment is Interested In nickel and dime business's such as mom and pop coin laundries. I would hope they have better things to do with there time. If not there wasting our tax dollars!

[Duane]

If one of your competitors decides to report you to the local authorities for price fixing, you may not get into any trouble, but a couple of bad news stories in the local paper will really hurt your business and you will lose customers big time.

I can see the headlines now --- "Local mat owner wants to screw all customers!"

Run your own mat and don't worry about the competition.

[millenniumplus]

As stated, this was widely bantered around in a previous post many months ago.
It was one of your more "interesting" posts that got a wee testy! In the last six
months we raised our wdf & washing machine prices (dryer time stayed the same
at .25cents per 8 minutes) without chatting with other owners. Our prices were
the same or a bit lower than our competitors. Now we are higher across the board.
Personally it was one of our more difficult decisions to make because of the fear
of the unknown (a/k/a - losing customers and $$$). You've already met with
some owners. That's water under the bridge now. If you need to raise prices,
raise them. You have an excellent store and you seem like a good person, a
good business owner. The overwhelming majority of your customers see that
in yall and they will not bail. Yeah, some will leave but a small percentage of
customers come and go for one reason or another anyway. After raising prices
keep an eye on your TPD and $$$. Listen to your customers. Give it at least
six months to one year and in the end you'll realize it was right thing to do for
the ongoing success of your biz. Duane once made a comment to us about a
particular subject. Can't quote him word for word. He was basically telling us
or making us aware that we seemed to have a good store and not to hestitate
"setting the price" in our area. Raising prices was something we were going to
do anyway but his words helped us "get it" or "see it" on another level, yes.
If you do raise prices be sure to keep your store running smoothly and not
decline very much. Let us know what yall decide to do and hang in there W.

[brucehwalker]

Ok. Just to be clear I'm not going to have any discussion with any local owner about my pricing. Thanks for keeping me in check. I feel convicted and I haven't even been charged with a crime yet. /ubbthreads/images/graemlins/cool.gif

Now I'm under the impression that I could change my frontloaders and not many people would notice. But people come in and run to my top loaders and look at the price. They are priced and 1.20 hot, 1.10 warm and .99 cold. They will start up 6 TL and think they got the best deal in the store. If the used 4- 18 pounders instead for 1.45/1.35/1.25 they would save 1.40 plus all the soap, and getter a better wash. The clothes get cleaner, quicker, for less money and they get drier so you save money at the dryer. I save money on water. Everyone wins!

I try to keep the TL and 18 pound FL within .25 of each other so I can easily sell-up to a FL. Should I go up on my TL? They love that .99 price. If I don't it will be harder to sell my 18 #FL. The TL is the only machine that people can compare apples to apples prices. Everything else is harder to compare.

My other machines are priced as follows.
30# 3.45/3.35/3.25
50# 4.45/4.35/4.25
Dryers .29/10 min

I think I'll go to 8 Min on my dryers and up 10% on the 30 and 50.

[Burley]

Just do it!! Looks like you have a great store and as others have said, you should be the leader. I am shocked at how low the top loaders are priced in your area. Around here the old crappy machines are $1.25 and the OK machines are $1.50 or $1.75. I also think your 18 lb front could easily go to $1.75. I am also glad to see the 30 & 50 pounders moved up a little. Your prices seem low from where I sit. But then again, maybe you are in a real competitive market.

[mrcoinop]

my prices are
TL $2.00
#30 $4.00 and $5.00
dryers .25 for 5 min
but also I am located in canada typically we price a little higher than u.s.a. we are one of the higher priced mats but one of the cleanest + bright people like our mat mostly because of this.

[thelaundrydoctor]

Did you say $.25 for 5 min. for dryers? --if you did can you send some of that trend down to America.