I Gave Myself A Raise Today

[Adamski]

Guys,

I raised my 30# washers which have the basic E-Cycle (Wash, Rinse, Spin) to $4.00 and I raised my 40# washers which have the standard cycle (Wash, Rinse, Rinse, Spin) to $6.00 today. This was a $1.00 price increase for each of these 17 washers that represent most of my washer receipts. Although the place was fairly busy when I increased prices, I did not hear any negative comments or questions about the price change. Not one person asked, "Why didn't you just raise the price by a quarter instead of a dollar?" You see, my customers don't think in terms of quarters ... and neither do I.

This increase is not because my operating costs have risen recently - they have not. This increase is for ME. This increase is to compensate ME for running a FiveStar Laundromat while putting up with excessive competition in a declining market. This increase is to reward ME for killing off that new Express laundromat that should never have been built in the first place. This increase is a Cost of Living wage increase for ME to make up for increased costs for taxes, insurance premiums, food, clothing, gasoline, home maintenance, automobiles and of course, toys.

Isn't it time you gave YOURSELF a raise?

[JoshCox]

Originally Posted by Adamski

Guys,

I raised my 30# washers which have the basic E-Cycle (Wash, Rinse, Spin) to $4.00 and I raised my 40# washers which have the standard cycle (Wash, Rinse, Rinse, Spin) to $6.00 today. This was a $1.00 price increase for each of these 17 washers that represent most of my washer receipts. Although the place was fairly busy when I increased prices, I did not hear any negative comments or questions about the price change. Not one person asked, "Why didn't you just raise the price by a quarter instead of a dollar?" You see, my customers don't think in terms of quarters ... and neither do I.

This increase is not because my operating costs have risen recently - they have not. This increase is for ME. This increase is to compensate ME for running a FiveStar Laundromat while putting up with excessive competition in a declining market. This increase is to reward ME for killing off that new Express laundromat that should never have been built in the first place. This increase is a Cost of Living wage increase for ME to make up for increased costs for taxes, insurance premiums, food, clothing, gasoline, home maintenance, automobiles and of course, toys.

Isn't it time you gave YOURSELF a raise?

That's awesome! Congrats!

[jh]

Larry,

Congratulation!

Recently I have been told that there is a medium size laundromat here in NYC that offers self-service only. The store is open 24 hours. About 11 hours of each day, two persons work there to assist the customers. The store generates about $50k each month. The vend price of the 20# washer is $2.25, that is higher than the most. It is quite amazing that a laundromat can be extremely successful in different ways: unattended, attended with self-service only, attended with self-service and drop-off service, card only, quarter only, dollar coin only, dual coins, token, and multiple payment options. Each style attracts a certain group of investors. It does make sense to follow the price leader. Otherwise, the vend prices will only keep dropping as more investors step in. One thing that I can not convince myself is that - Our price is already the highest in my area. I've got to know most of my customers, their jobs, and financial problems. What should I do when a loyal customer of mine says goodbyes to me with a sad face? Have you ever experienced this and permanently lost them or actually seen them coming back to use your store again?

[Adamski]

Originally Posted by jh

... I've got to know most of my customers, their jobs, and financial problems. What should I do when a loyal customer of mine says goodbyes to me with a sad face? Have you ever experienced this and permanently lost them or actually seen them coming back to use your store again?

John,

Yes, I've lost customers many times although they don't generally tell me face to face that this is the last time they'll be in. Here are the main reasons I've lost regular customers in the order of least occuring to most occuring.

4. Because I failed to settle a claim to the customer's satisfaction.
3. Because I raised some prices.
2. Because the customer died.
1. Because the customer moved out of the market.

A customer who circulates around the competition and then returns is not a lost customer. This is a customer who has tested the waters and decided that I offer the best value. I've had customers do this on occasion.

As long as I'm offering a fair value, my customer's individual financial situation is not my concern. People will spend their money however they want. If they want something bad enough, they'll find a way to buy it. My customers seem to easily justify using my laundromat rather than going elsewhere. My prices are not unreasonable.

[rbh]

Larry, you 'reminded' me that I've wanted to go up on my 40 and 60 lbers....and I will 'give myself a raise' tomorrow! Probably just 50 cents on each but it will still add up.

[Adamski]

Originally Posted by rbh

Larry, you 'reminded' me that I've wanted to go up on my 40 and 60 lbers....and I will 'give myself a raise' tomorrow! Probably just 50 cents on each but it will still add up.

Ron,

What will your NEW prices be after tomorrow?

[rbh]

6.75 on a 60, 5.50 on a 40. Still would like to get them up a bit more but I'm the price leader in my area so just trying to be sensible. I'm at 3.75 for my 18lb IPSOs and I'm good with that.

[ldm]

Larry: How do your new prices fare against similar equipment in other stores in your market. Les

[Adamski]

Les,

You know, this time I didn't even bother to check out my competitors prior to raising prices. That's probably a "first". I just assumed they're all still sitting with the same prices they've had for the past 5 years.

The ones that have 40# washers are probably about $5.00 while the Charity laundromats that have lots of 30# washers with standard cycles are probably $2.50 to $3.00. My 30# washers with an Extra Rinse (makes the E-Cycle into a standard cycle) are now $5.00.

[mmurra]

Larry you always say it so well! I will check my prices tomorrow. Mark