Laundromat Marketing Strategy

Increasing the business orders of the laundromats and the profits is the core problem all laundromat owners care about. In this article, we will share some marketing strategies of the laundromats with you from attracting new customers and upgrading customer experiences to the skills of keeping laundry equipment operating effectively, hoping to give everyone a reference.

The Importance of Increasing Revenue

Laundromat, as a unique business form, is connected with the goal of self-sufficiency and the responsibility of meeting the basic needs of the community. Small enterprises always face a dilemma: How to increase revenue without compromising customer service standards, and laundromats are no exception.

When the pandemic hit the global economy in 2020, according to the American Laundromat Association, about 70% of laundromats saw a drop in turnover during the pandemic. However, for those stores with stable and growing revenue, relying on the previously accumulated diversified revenue channels and loyal customer base, turnover fell only 10%, far below the industry average. This allowed it to pay rent and staff salaries, operate smoothly, and strengthen its position in the community during the pandemic.

❑ Case study

More revenue means more possibilities for reinvestment and continuous upgrades. In London, UK, a laundromat with revenue growth, invested 200,000 pounds to buy a batch of new high-speed energy-saving laundry equipment. The new equipment improves laundry efficiency by 40%, which not only reduces customer waiting time but also reduces operating costs due to energy conservation. In addition, the store added a comfortable lounge area with free Wi-Fi, which increased customer satisfaction by 25%, resulting in a 15% increase in foot traffic and a virtuous circle of revenue.

Common Misunderstanding

The public always has a misunderstanding that profitability depends mainly on cutting costs. Though cost control is crucial, extremely relying on this way may lead to reduced profits because of poor service quality. In contrast, increasing income can make the laundry enter a virtuous cycle with stronger vitality.

❑ The Limitation of Costs Reduction

Extremely reducing the costs is easy to trigger a chained reaction. For example, in Paris, France, a laundromat uses low-price chemical detergents to reduce costs. The washing quality of the clothes turns out to be bad, which increases the customers’ complaints. The bad comments are streams. In one month, the number of customers sharply decrease by 30%. The regular customers all left and eventually, it had to readjust the business strategy.

❑ Case study

As a result, more energy should be put into the revenue increase, which means actively expanding the customer circle, promoting value-added services, or prolonging the opening time.

● After launching the door-to-door logistics services, a laundromat in Los Angeles attracted busy working employees around 8 kilometers away. The customers increased by about 20%. The average amount of order increases by 15%. The increase in the revenue is vivid.  

❑ Collaboration with other industries  

In Berlin, Germany, a laundromat launched a membership points mechanism. The customer spending points can be redeemed for free laundry or peripheral goods. Since implementation, customer retention has increased by 20%. The laundromat has also achieved mutual benefit by partnering with surrounding gyms to provide exclusive laundry discount packages for fitness members.

Laundromat Revenue Strategy

❑ Increase Pedestrian Volume

● Obvious Store Location

The laundromat must stand out from its surroundings and can be seen at a glance. Clear and eye-catching signs, brightly lit space, clean and beautiful appearance, and clear guidance signs can effectively attract the attention of passers-by.

A laundromat in Houston, USA, had a 12 percent increase in customer traffic in a month after redesigning its usual signs to replace them with oversized, eye-catching signs with LED lights.

● Community Activity

Free community activities, like “laundry and learning” should be actively held to let the residents participate in all kinds of useful seminars or lectures.

A laundromat in Chicago, USA, held a series of lectures on “clothing care tips”, during which customer satisfaction increased by 22%. The number of new customers increased by 18%, and the community increased the goodwill and stickiness of the store.

● Local Cooperation

Joint promotional activities with surrounding merchants can achieve mutual benefit and win-win results.

For example, a laundromat partners with a nearby cafe to offer coffee discount coupons to laundry customers, and the cafe gives a $5 credit to the laundromat to customers who spend a certain amount of money, thereby increasing traffic and sales for both parties.

❑ Promotions and Discounts

● The correct issuance of coupons can not only retain new customers but also improve the loyalty of old customers. The way of “washing 10 times free once” can be used to treat regular customers. As for new customers, they can be targeted in the form of experience vouchers with relatively favorable prices.

● Short off-peak discounts should be set up to balance passenger flow throughout the day.
● Word of mouth is one of the most effective marketing tools. 
Regular customers should be guided to recommend the laundromat to friends or family and give free laundry times or discounts.
Above are some of our more common marketing methods. What other marketing tools can we use to increase customer traffic and profits at the laundromat? The following articles will continue to share with you.