Keys to Obtaining Commercial Accounts

By Ron Lane | May 15, 2009

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Laundromat 101

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Attention Kmart Shoppers…

National retail giant launches self-service laundry ‘concept store’

Attention Kmart Shoppers…

National retail giant launches self-service laundry ‘concept store’

K-Mart is not the first to try this concept

There is limited economy of scale for a Laundromat so it is likely this concept will not spread to many other K-Mart locations. 7-11 tried the concept and quit. Kinko's copy centers also tried the concept but failed. The profit margins are also small compared to what corporations expect to earn. Besides rent, what can a large corporation do better? Utility costs are not cheaper, labor is not cheaper and professional management is more costly. The income earned per square foot in Laundromats is far below the acceptable standard of most retailers. The quality of the service provided by individual Laundromat owners is hard for a corporation to duplicate.

Not the first...

At least not in Oregon. Hasn't the Green Lightning chain been "green" longer? And with the largest machines in the state, if I remember correctly.

Credit Card Acceptance Issues

Ryan,

You've thrown out some rates and capabilities that I've never heard of before. I suggest that you log onto the Bulletin Board and start a thread so that we can all learn more about the benefits and costs of accepting credit cards on our washers and dryers.

Larry

Response to CC transaction fees

Larry,

I realize this answer comes a bit late, but the numbers your quoting (if correct) would mean adding CC to a business is a total loss-leader.

Short answers;

The technology is available to allow an operator to avoid any 'per swipe fees' and instead pay a single transaction on the total visit. All funds are verified up front before any services are given (just like a gas pump) so operators are not 'on the hook'.

Rates will vary for the entire transaction between 1.01%-1.64% + $.05-$.15 cents on competitive rate plans. So total cost of ownership is commonly averaging out to 3-3.5% total with an expected increased in average dollar per ticket on multi-vend washers/dryers of 15-23% (so more than justified)

The coin-industry has a lot to gain by diversifying their payment options.

Ryan Carlson