6 Common Mistakes Laundromat Owners Make

With a 20% to 35% ROI, investing in laundromats is a fantastic way to build sustainable cash flow. Laundromat owners are a diverse group with different approaches to running the business. Some are part-timers while maintaining their career, some are full-timers that made a career change or opened a laundromat as part of their retirement plan.

Regardless of the approach, marketing, operations, equipment and customer service are all areas of the business requiring attention. Without laundromat operational experience, overlooking other important aspects of the business can begin to take away from the attractive ROI expected from laundromat investing. Here are 6 common mistakes to avoid when operating a laundromat.

1. Ignoring the metrics – Technology has revolutionized the laundry industry, but many laundromat owners do not invest in systems that help them understand their market or customers. Collecting consumer data, foot traffic data, machine usage data and utilities data can give deep insight into how the business is running and what aspects of the business need attention. If you aren’t collecting data to understand your local customers, noting your busiest times of the week, monitoring machine usage in order to plan for service schedules, and keeping up-to-date on utility costs in your area, your laundromat will remain stagnant and susceptible to strong competitors.

2. Ignoring customer service – The revenues you need to achieve your desired ROI begin their journey to you bank account in the pockets of your potential customers. Giving superb customer service is one of the easiest, yet important aspects of running a laundromat. According to this online study, 94% of consumers stay away from businesses with negative online reviews. And, according to this study, 97% of consumers actually read the responses business owners leave on reviews, whether the review was positive or negative.

Keep customer service and experience at the forefront of your business to keep customers coming back.

3. Buying inexpensive or used equipment – There is no way around the fact that laundromat equipment is expensive. Going with cheaper upfront equipment costs can be tremendously costly in the long run. There are a few differences in quality between cheap and expensive equipment, but the absolute most prevalent and investment-affecting difference is efficiency. If you are opting to purchase cheaper machines, you are likely raising your utilities costs by up to 40%. Additionally, you will be paying more in service and repairs costs over the lifetime of the machine. At the same time, cheaper machines fundamentally have a shorter lifespan, so you will be replacing your equipment more often. Instead, choose reliable, efficient, high-spin washers and smart dryers to lower utility costs and drive down maintenance and service costs.

This article further explains why you should not be skimping on your laundromat equipment.

4. Putting off service and maintenance – This should be fairly obvious. The old adage, “If it ain’t broke, don’t fix it” can be extremely costly in the laundry world. Laundromat washers and dryers unequivocally rely on regular service and maintenance. Without it, the frequency of emergency repair calls and appearance of out-of-order signs will grow dramatically, and you will have to shell out more and more cash to remedy neglected machines. Take care of your equipment on a daily basis by wiping down washers and dryers, keeping the floors clean, sweeping up lint and other debris behind dryers, changing lint traps multiple times per day and addressing any possible issues with your machines immediately.

5. Neglecting marketing – This should not have to be said, but there are large number of laundromat owners out there who simply do not invest in marketing whatsoever. As the saying goes, “No matter what business you are in, you are in the business of marketing.”

This statement is as true in the laundry business as any other. Customer acquisition and retention is the name of the game. There is no way around it. Lazy or lacking marketing efforts can lead to customers, even loyal customers, to switch to competitors with better marketing campaigns. Use social media to reach your target audience, create customer loyalty programs and make sure your online listings, like on Google, are error free. Continually test and improve your marketing and engage with your customers on a regular basis for long-term success.

6. Failing to plan – “Failing to plan is planning to fail.” Ever heard that? It’s true. Complacency kills businesses. Smart laundromat owners consistently choose to find ways to improve their business by improving on the customer experience, managing data sets, and properly maintaining equipment. As a laundromat owner, you should always be searching for more customers, offering new services and inserting attractive profit centers into your long term plan.

Many laundromat owners already avoid most, if not all, of these common pitfalls in the laundry business. If you have found you are guilty of one or more of these mistakes, we are happy to help guide you through the process of making changes to the way your business is run. At Arrow Machinery, your success is our main priority.