Other Laundromat Profit Centers
How would you like to increase your Laundromat revenue (without a price increase) by 5% ? Sound interesting? There are many different ways to increase the profit of your Laundromat. Some of the proven profit centers for Laundromats are:
Vending Machines (Soda, Snacks & Candy),
Vending of Large Containers of Detergent,ATM's
The advantages of having a variety of extra revenue streams in your Laundromat is simple; additional revenue and profit. By keeping your "Cash Carrying" customers in your Laundromat, you can get more revenue from the same number of customers. If your customers go across the street to the CVS to purchase a big jug of detergent, you know that they will walk out of CVS with something else in their cart. Some impulsive, spontaneous purchase. Why give that additional revenue to CVS (or to any other business)? Your customers are going to spend their money, so offer them good products and choices in your Laundromat rather than having them go across the street. Don't feel that you need to meet or beat the prices of the huge multi-national companies. You customers will pay extra for the convenience and having the item immediately available.
Below is a short description of ancillary businesses that HK has seen that work and generate additional revenues for their Laundromats.
ATM's - ATM's are a great source of revenue and assist the customers get cash in our credit card society. Every transaction generates you money and the busier the ATM, the higher the revenue. The only down side to an ATM is that you have a lot of money tied up in the ATM. Basically the cash in the ATM is your inventory and part of doing business. There is also a greater risk of theft because money is tied up in one particular location.
Video Games - Video Games are pure profit. Video games require just a little bit of electricity but they entertain the masses. Now-a-days with smart phones and the gaming consoles at home, the risk of having your Laundromat becoming a hangout is remote. I would exclude any violent video games and only use "family friendly" entertainment. My personal video game mix would be a sit down driving game where you can go head to head with another customer, a retro multi-game like Ms. Pacman/Centipede and a Mega-Touch game (where the customer has a choice of 20+ different games). These selection of video games will keep your Laundry customers entertained and extra revenue for your Laundromat.
Large Product Laundry Detergent Vending Machines - Laundry Products Vending machines have come of age with the Vendrite Vision vending machines. I have these machines in my own stores and now I can sell big ticket items in an un-attended Laundromat. I am selling a jug of Tide for $7.50 of which 40% is profit. The machines cost over $5k each but my payback on the original purchase is between 12-13 months. I have one store where every customer has to walk by the vender and my payback is ½ that amount of time.
Combo Candy Snacks and Soda machines - Food Vending machines are also a great profit center and you can expect similar ROI. The food vending machines have some seasonal variation. Soda and drinks sales will explode during the summer months and slow down considerably in the winter. With food stuff you need to rotate your stock so that you do not dispense expired items. In addition you need to refrigerate some candy items than might melt in the high temperatures of summer.
Car Vacuums - Car Vacuums are again pure profit. They use a little bit of electricity but have no other consumables. There is some maintenance with the car vacuums but these are pure money makers. This is a great spontanious puchase for the mom with kids and cheerios all over the car and also great for the single guy who has to wash his clothes. They will start their washers and then vacuum their car. A perfect accessory and money maker.
Internet and Internet Stations - Internet is almost always Free (except in Hotel rooms). We have an Internet station in one of our Laundromats and I thought it would be a great revenue maker for the immigrant Laundromat population. The playing field has changed where most everyone has a "smart phone" and a data plan which has killed the Pay Phone, Pay for Internet, and the Internet Station. We offer Free Internet access for our Laundromat customers and will use the Internet Station to quiet un-rulely children. The attendants and Manager have the green light to turn on the Internet Station for Free to entertain the kids.
How to get started - The Laundromat owner who wants to investigate additional revenue streams for their Laundromat should first contact their distributor who can point them in the right direction.
Vendrite Vision Soap & Combo Venders
HK Newsletter Archive Section on HK Resource page
It is HK's goal is to have a timely, informative, and educational content on our website at www.HKLaundry.com HK has just released the soft openning of our new "Resource Section" on our Website. The "Resouce Section" includes:
The Resource Section will be an active and dynamic section of the website where we will continue to update and post "How To..." Videos and Videos on all aspects of the Laundromat operations. Please visit the new Resource Section at http://www.hklaundry.com/resources.php and let me know what you think.
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