Did you know 67 percent of people globally do laundry twice a week? New technologies have helped reduce laundry time and effort.
With millions of people needing laundry services, the laundry business is a great opportunity to explore. However, you have to stand out in the competitive market.
How do you do that? How do you extend your customer base and extend your laundromat profit margins?
You can maximize your profit margins without investing heavily. Try the following tips to boost your sales and expand your customer base.
1. Innovative Service Offering
If you are in the laundromat business, you know the market is saturated. Wherever you are, there is a laundromat just down the road. Even in a remote location, there will be a laundromat within driving distance.
You need to offer them something they can’t get elsewhere. Add personality to your laundromat.
Your service offering should be your unique selling proposition. It will determine who and how many people you draw in. Here are unique selling points to consider:
- Excellent customer relations
- Short wait times
- Unique branding
- Pick-up and delivery services
It is the uniqueness of your services that distinguishes your business from others. Your services should aim to offer maximum customer satisfaction.
2. Minimize Utility Costs
Laundromats have many types of equipment going all at once. They can rack up the utility bills. Maximum profit margins are possible through revenue growth and cost minimization.
Your machines need regular cleaning and maintenance. This will help reduce energy bills due to inefficient machines.
Other ways to minimize laundromat expenses include the installation of LED lights. It will save energy and create more appeal to customers.
Every commercial laundry needs five basic utilities. This includes electricity, water, gas, trash removal, and cleaning services. Each cost needs to be assessed and reduced where possible.
3. Invest In Marketing
Marketing is the lifeblood of any business. If you have a laundromat, you need marketing to your bottom line. Where should you put your money?
Invest in social media marketing. Social media is free, and the return on investment is much higher than on other platforms. It’s also an excellent way to connect with customers and potential customers.
Create a content-rich website. Laundromats often have litter websites created by non-experts.
The content is dry and uninteresting. This leads visitors to abandon their carts without looking further. Use modern marketing strategies to promote brand awareness.
It’s not enough to have unique and quality commercial laundry services. People need to know your business exists. If you are dealing with a startup business, you need to invest in effective marketing strategies heavily.
4. Create a Loyalty Program for Your Laundry Business
A loyalty program retains customers and builds customer relationships. It also earns you repeat customers. Here are some reasons for creating a loyalty program for your business:
- You’ll save money on advertisement
- Customers get the incentive to buy more
- It’s easy to set up if you already have an online store or shopfront
Customers always look for ways to save on your product or service. This is regardless of implementing economic pricing strategies. Commercial laundry solutions that are cost friendly attract more clients.
5. Upgrade Old Machines
Old commercial laundromat equipment needs immediate replacement. They can affect the quality of your service.
Many laundromat owners are hesitant to upgrade their machines due to the cost. However, there are many ways to save money while upgrading.
You can buy new machines that may be a bit more expensive than those you currently own. But they will save you money because they use less energy and water.
Another way to save money is to buy stainless steel machines. They are more durable and do not rust. This will save you money in the long run because you don’t need to replace it often.
Work with reliable launderette equipment suppliers to enjoy maintenance and warranty.
6. Engage in Community Events
Community events are a great way to boost your local business’s exposure. It also helps build long-lasting relationships with customers. Consumers suggest that attending such events make them feel more connected to the business.
You can engage in events like charities and other valuable social movements. There are many activities organized by community groups and councils. Capitalize on the cumulative audience to help expand your laundromat profit margin.
Use the event to engage with customers, build brand awareness and promote your services. Today’s customers want companies to engage in community and participate in social good.
7. Strategic Pricing and Promotion
A pricing strategy is how a company sets its price relative to the competition. It requires taking into account its costs and desired profit margins.
Businesses are often tempted to increase profits by decreasing prices. That’s not always the best move. Rather than dropping prices, consider strategic pricing and promotion strategies.
Create sales events and promotions. Provide discounts to customers who buy in bulk. You can also offer special prices for a limited time.
Strategic pricing is more than just increasing your profit margin. It also builds brand identity and customer loyalty. You can increase your profits by providing more value to your customers.
Expand Your Laundromat Profit Margin Today
Laundry services are a huge opportunity for you to make money. You need quality commercial laundry equipment to stay ahead of the game. This will improve the quality of your services and expand your laundromat profit margin.
Apply the above tips to build a competitive edge. If you need laundry equipment repair, upgrade, or maintenance, we got you.
Laundry South System & Repair is a leading laundry equipment supplier. We are dedicated to keeping your laundry services running smoothly. Contact us today for more information on laundry equipment.