Many business owners choose to run a laundromat as they provide a great return on investment (ROI) and a steady cash flow of anywhere between $15,000 - $300,000 a year in the US–but what if you could generate even more revenue? By adding a new service, providing more amenities or adding a new location, there are a few different ways to boost your bottom line. In this blog, we’ll cover 5 key ways to grow revenue and get more out of your business.
1. Add a Pickup and Delivery Service
Convenience is the main reason why many of us now use delivery services and it’s one of the fastest-growing ways to boost revenue for your business, which is why offering a pickup and delivery (P&D) for laundry and dry cleaning is first on our list. By offering this service, you’ll open your business up to a much larger customer base, moving beyond just the customers who visit your store physically. And on top of the increased order volume that boosts your revenue, you can also offer add-ons with your pickup & delivery service to earn even more. For example, charge express fees for same-day turnaround times, set up a subscription service for regular laundry pickups and offer promo codes to entice even more P&D orders—all are easily managed with a POS system like CleanCloud.
2. Offer a Wash, Dry, Fold Service
Offering a wash, dry, fold service is another great addition for a laundromat business looking to increase revenue without needing to purchase any big machinery. Many customers will happily pay more to have their washing dried and folded for them. It’s an extra touch that will make your business stand out in the market, becoming a more preferred choice compared to stores who only offer a self-serve model. With this additional service, you can charge by pound, increasing the cost depending on the amount of laundry. Similar to P&D, you can also charge more for those looking for a same-day turnaround, further increasing your profit potential.
3. Extend Your Customer Base to Commercial Clients
The third strategy on our list is expanding your services to commercial customers. This includes businesses like gyms, restaurants, hotels and Airbnb’s. Businesses like these will always have laundry like towels and bedding to clean on a regular basis, giving you the opportunity to generate even more money from your equipment. By offering a consistent high quality service with scheduled pickup times, you can build long-lasting relationships with these clients, creating a recurring revenue stream for the future. Even just having a couple of commercial customers will be enough to fill the slower periods of the day, so while your footfall fluctuates, your machines will remain hard at work making a real difference to your bottom line. With CleanCloud, you can automate recurring invoices for your business clients, making it quick and easy for payments to be made on time.
4. Extra Amenities and Laundry Supplies
While your customers wait in-store for the machines to finish spinning, then is the perfect time to increase their spend. Sell laundry essentials like fabric softener, scent boosters, and stain removers as extras that people can easily purchase. You can also install vending machines stocked with drinks and snacks to further improve the overall customer experience—it’s a touch that your customers will greatly appreciate! Besides these in-store extras, you should also consider offering upsells to your current services. For example, many customers are up for spending a little more for scent boosters or an eco-friendly detergent. You can also offer garment steaming or express turnaround times to further increase the orders values.
5. Expand to A New Location
If your current store is generating a healthy amount of revenue with a consistant footfall, then opening up a second store may be the next step for you. To gain a deeper understanding on what to consider when expanding your business, check out our blog post. A new location means you can reach new customers and generate even more revenue, so choosing the right area with high demand is important. Making this move also helps build more brand awareness, creating more recognition in different areas.
You may have a goal to experiment with different services, but if your current store has a model which works, then it may be best to replicate that same structure into your new location. With CleanCloud, it’s quick and easy to sync the same pricing and product lists across multiple stores. You can also manage operations and track performance in one place, giving you full control over each store. Check out our website and speak to a member of our team to learn more about our multi-store capabilities.
Creating a more profitable laundry business doesn’t have to require big investments or longer working hours, it’s all about thinking of the smaller but scalable ways to grow. Whether it’s adding an additional service, targeting a different customer base or offering extra laundry products, there are a range of ways to increase your profitability. It’s important to make every customer count, and with a POS system like CleanCloud, you can boost order value and manage your entire operations from one place. If you are ready to take your business to the next level with CleanCloud, sign up to a free trial today.