What type of payment system do you use?

[JohnH]

Paul,
It's not the cc fees. I just consider that a cost of doing business. It comes down to a cost v. benefit analysis. Laundromat number one is a successful, proven store. We are price leaders in our market and have a six year track record. In other words, we're doing okay. The question becomes: Will a retrofit with cc readers drive in enough additional business to pay for itself in a reasonable time frame?

Store number two was opened for business one year ago last month. We installed the cc system before opening. It's in south Tulsa in a rather affluent part of town. Our street sign also has a great big reader board which gives us a great way to advertise cc acceptance feature. We are the only laundromat in Oklahoma that has a cc payment system on every machine (at least, as far as I know.) Installing the system at the new location set us apart from everyone else.

But, will it really drive in enough additional revenue at our older location to be worth the pretty hefty price tag?

John

[ldm]

Originally Posted by JohnH

Paul,
It's not the cc fees. I just consider that a cost of doing business. It comes down to a cost v. benefit analysis. Laundromat number one is a successful, proven store. We are price leaders in our market and have a six year track record. In other words, we're doing okay. The question becomes: Will a retrofit with cc readers drive in enough additional business to pay for itself in a reasonable time frame?

Store number two was opened for business one year ago last month. We installed the cc system before opening. It's in south Tulsa in a rather affluent part of town. Our street sign also has a great big reader board which gives us a great way to advertise cc acceptance feature. We are the only laundromat in Oklahoma that has a cc payment system on every machine (at least, as far as I know.) Installing the system at the new location set us apart from everyone else.

But, will it really drive in enough additional revenue at our older location to be worth the pretty hefty price tag?

John

John: Can you share some info on the Type of and cost to install the CC system. Do you cover the Bank fees with the transaction so you are netting the same as a coin purchase. Thanks, Les

[MrMachine]

Originally Posted by ldm

John: Can you share some info on the Type of and cost to install the CC system. Do you cover the Bank fees with the transaction so you are netting the same as a coin purchase. Thanks, Les

Les,

I see ESD advertises their wireless CC zip acceptors at $500.00ea.
That can really add up if you put one on every machine which is really the right way to do it (why let people use CC on the washers and not the dryers for instance? Would seem worthless, IMO).
Then I'm sure there are other expenses with the base unit, router, software (which is a potential for a real screwing).
Then you have the fees.

Is it any wonder then, that Gas stations often charge 2 prices? One for cash and one for credit?
Maybe that could be done with a MAT CC system. I don't know.

[JohnH]

Les,
We paid approximately $650 per machine for the Spyderwash system, including freight, installation and 8.0517% sales tax. A better deal might be negotiated, who knows? At the time we bought, it was the lower priced system vs. Wash Card, which we also liked. The system had to be ordered through my distributor, and it was the first time they had experience with ordering or installing the product (as I mentioned, we're in the market early in Oklahoma.) They charged me $950 to install 47 units, plus the three bluetooth hubs. My operations manager was also up to his elbows helping with the install (aka Life of Brian on this board.)

I do not upcharge for using the credit card system. I want to win loyal customers, not irritate them with petty fees.

John

[ldm]

Originally Posted by JohnH

Les,
We paid approximately $650 per machine for the Spyderwash system, including freight, installation and 8.0517% sales tax. A better deal might be negotiated, who knows? At the time we bought, it was the lower priced system vs. Wash Card, which we also liked. The system had to be ordered through my distributor, and it was the first time they had experience with ordering or installing the product (as I mentioned, we're in the market early in Oklahoma.) They charged me $950 to install 47 units, plus the three bluetooth hubs. My operations manager was also up to his elbows helping with the install (aka Life of Brian on this board.)

I do not upcharge for using the credit card system. I want to win loyal customers, not irritate them with petty fees.

John

Thanks for the info. Les

[dbrown2508]

Originally Posted by mjwalsh

Doug,

Since you are from Toronto --- if stable affordable 3 to 6 distinctive coin or token coin mechs that are available were adapted by an enterprising entrepreneur to your larger washers --- do you think your customers would be open minded to using the Tooney? Especially if your Changemakers already had at least three hoppers?

The better coin mechs are programmable to the metal content --- not only size & weight so the basic technology is there. There just has to be the easily achievable harness & interface & fit to the washer -- that is where the enterprising entrepreneur(s) would come in.

Based on your website & your comments --- I would say you are a good example of utilizing coinage. Since Canada has just a bit over 1/10 the population of the USA I can see why logistically --- even though Canada eliminated the uncertainties for the Looney & the Tooney --- why these waiting to be awakened entrepreneur(s) have not mobilized for our laundry industry as much as more of us would prefer.

Just to give operators a heads up --- there is a manufacturer in Winnipeg that is just one of many globally that have the basic technology. I wonder what circumstances that could change --- that would trigger more adaptation our way for our equipment creating a healthy competitive manufacturing & marketplace in the coin acceptance payment option department for our coin op laundry industry. http://www.magikist.com/index.php?pi...10&product=247

Kim, I know I am on the edge here --- but I believe some of us are trying to understand the dynamics behind the scenes --- for what can affect our choice to expand universally accepted coinage as our payment option. Doug being a Canadian person seems like someone really good to gain insight from.

mike walsh king koin of bismarck

Mike:

Sorry for the delay. If my washers had mechanisms to use a tooney (as well as others), I'd go for it in a minute. Right now, I get about $600 per week of toonies in my change machine. (for those who don't talk Canadian, this is a 2 dollar coin).

My change machine only has 2 hoppers right now ($1 dollar coins and quarters). And most of my washers have coin slides with a fixed number of quarters and dollar coins). If someone has a toonie, they can put it in my change machine and get change - a $1 coin, and 4 quarters).

The 6 newest machines have drops that accept both dollar coins and quarters in any combination. Add toonies, and my 55 pound washers likely go from $6.25 to $7 overnight.

The fewer number of coins they put in - the cheaper it feels. I'm looking to take my 50 pound dryers from quarters to dollar coins for that very reason.

If I accepted toonies in the washers:

1- I wouldn't have to take them to the bank every week.
2- could likely fill the change machines less often.
3- fewer customers would complain about getting $20 of change from the change machine
4- the "perceived" cost would be less. (don't believe me - my 50 pound dryers are 2 min for a quarter. Put 30 minutes on the dryer, and you tell me if, after putting 15 quarters in there, you don't feel ripped off).


Doug

[mmurra]

Some day the association may be forced to consider a new name, reflecting the varied methods of laundry payment schemes available to our customers. Mark

[BN82]

I manage two stores: one is quarter-only, and one is quarter + Spyderwash. I am pushing my boss to go ahead and get Spyderwash for the store that doesn't have it.