Ideas for additional revenue in a coin-op laundry business.
Coin-op laundry customers spend approximately 60-90 minutes doing their laundry, leaving the coin-op owner with a captive audience. Providing extra services will provide a more hospitable experience and increase revenue. By going above and beyond the traditional wash-and-dry amenities offered by most coin-operated laundry facilities, you will stand out.
There are a variety of ways to increase revenue by focusing on your existing customer base. Work to accommodate them in every possible way and your customers will keep coming back, possibly paying more for new services. Here are a few ideas to increase revenue at your coin-op laundry.
Vending machines offer an array of self-serve products. Vended laundry supplies provide round the clock access for customers, which is particularly important if the coin-op is not always staffed. Traditional vending machines offer single serve options, however newer machines provide the capacity for full sized containers. Often laundry owners will buy in bulk from warehouse stores and still make a profit without needing to resell at a premium. In addition, snacks, sodas and coffee are popular vended items. New vending machines require an initial investment of $2,000-$7,000 each, but provide a continuous revenue stream for years. If that seems too steep, used equipment is available.
Food & Drink & Whatever
You could go above and beyond the simple vending machines and combine your coin-op laundry business with a restaurant, bar or both. Having a small grill area, a coffee bar or a place to hang out and have a drink will encourage friends to do laundry together and provide a comfortable place for your customers to wait. Creativity pays off and allowing customers to multitask creates more opportunities for profit. With proper research you can look beyond a single operation and include other services like a salon or car wash.
ATMs are not only a convenience but can provide a significant additional source of revenue. They only require a small foot print, either an internet connection or a dedicated phone line, and security. ATMs can be purchased for about $2,000-$2,500. Owners typically stock the machines with about $5,000 but the machines have the capacity to hold more. The laundry owner keeps 100% of the ATM transaction fees which range from $1.75 – $4.00 per transaction.
If the initial investment seems high, full and partial placement programs are available from ATM services. These services share the transaction fees with the owner and either manage the entire program or share responsibilities, depending on the placement level. There is a diminished return with this option, but no initial investment.
People struggle to find enough time in the day to get everything done. With long work hours and little time for their personal lives, many people look for assistance such as a wash/dry/fold laundry service. Wash/dry/fold service can be added to a coin-op laundry using the existing equipment. Establish a protocol so there is no confusion about the customers’ expectations. With little to no upfront costs, you can expect an immediate increase in revenue for the business.
Consider working with outside groups, local businesses or sports teams to help them with their laundry. Set up a discount for large orders of uniforms or do private washings for those who don’t have the time. Business-to-business client work is very common.