Community = Revenue

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In the laundry business, we often focus on the machines, operations, products, logistics, etc. But another crucial element that can greatly improve our success is the community inside our client base.

Community building isn't a new concept. Brands like Harley Davidson, Salesforce, and Fitbit have successfully built communities around their products and services, turning clients into advocates and creating a network of loyal followers.

Harley Davidson has built a community of passionate riders who buy motorcycles, wear merchandise, and attend events. Don't believe me? Just ask Joe Dan Reed. Harley's community has been instrumental in Harley Davidson's success, contributing to a 6.5% increase in international retail sales in Q1 2021.

Salesforce, a software company, has also built a thriving community. Their event, Dreamforce, attracts over 170,000 attendees and millions of online viewers. This community has helped Salesforce grow its revenue by 24% in FY 2021.

Fitbit, a company that sells fitness trackers, has built a community of users who share their fitness goals and achievements, participate in challenges, and even meet in person at Fitbit Local events. This community has helped Fitbit sell over 100 million devices and gain over 28 million active users.

What does this have to do with laundry?

About a month ago, in one of the laundry forums I'm in, a question popped up:

"Per bag or per lb Question—Hello Community. I've been beating my head against the wall debating whether to offer customers per lb pricing or per bag pricing. We've done the math and per bag is generally more profitable (based on the past three months). I appreciate your input."

The question doesn't speak to my point, but the answer from Drew Smith of Salt & Light Laundry Services below does:

"Hey, this is a fantastic question! We decided early on to price by the lb. The reason being we wanted to make sure we were charging our customer for exactly what they sent. Nothing more, nothing less. The per bag price had nuances in it that you mentioned. I have an elderly woman at a nursing home who sends exactly our minimum on per lbs but it wouldn't fit more than half a bag. If I had chosen to charge her a bag price, she would have been paying a lot more and wouldn't have been able to use our service.

Waleed Cope said this, and I think it perfectly articulates the question and decision path you're looking at.

‘As you build your business, you have to decide if you want to be a mercenary or a missionary in garment care.

• Missionary - make money when good things happen to your clients.
  • example: my money manager gets a bonus when they make me more money
• Mercenary - make money when bad things happen to your clients.
  • example: my bank charges me a fee if my account is overdrawn.

Nothing wrong with choosing either, but once you decide which you want to be, it drives your business and ideas for it differently.’

I believe our growth came from our many choices to build a community instead of a company. I hope this helps!”*

But can this strategy work in the laundry business?

Yes, the last part of Drew's answer is how we do it in laundry.

Drew and his family built a service and product around a community. I have never spoken with Drew directly about his business, or the foundation he built it on, so everything I share here is based on their website and what I have seen Drew post online.

Follow me as I break this down below (full disclosure, some religious points will come up here):

A Name That Connects

Salt & Light's name immediately connects with a specific community. It references a biblical scripture, Matthew 5:13–20, which describes the essential role of Jesus' disciples and followers on earth. They are the salt of the earth and the light of the world. This name resonates with people who share these beliefs, creating an immediate connection.

Benefits That Go Beyond Laundry

Salt & Light offers benefits that go beyond clean clothes. They offer "Laundry Fairies," "Free Pickup and Delivery," and "Lightning Fast Service." But the fourth benefit is where they truly stand out: Prayer. They invite clients to share their prayer requests and praise reports, promising to pray for them while working on their laundry. This unique benefit shows that Salt & Light cares about their client's lives beyond their laundry needs.

A Team That Cares

On their "About Us" page, Salt & Light highlights their team of washers. This personal touch helps clients feel more connected to the people caring for their laundry and praying for their needs.

A Different Approach

Salt & Light's approach to client service is unique. They consider it an honor to pray for their clients and love doing it. This approach shows that they're not just a laundry service; they're a community that cares about their clients' well-being.

The Result: Impressive Growth

Salt & Light's community-building approach has produced impressive results. They've grown from serving 25 clients a week to over 550, a testament to the power of building a community around your business.

Building a community around your products and services can lead to growth and success.

I purposely left out the last part of Drew's answer earlier because I wanted you to understand how someone in the laundry business has built a community flywheel to grow their business. 

Here's the part I left out,

"We are a strictly pick-up and delivery business and started about 2.5 years ago. We started with 25 customers a week and now currently serve 550+ a week. I believe our growth came from the many choices we made to build a community instead of a company."

So, are you ready to start building your community?

That's all I got for today.
Waleed
✌️🏴‍☠️

Thinking about, the thinking of laundry

From the thoughts of the professional fitness coach and entrepreneur, Cassey Ho

Do not focus on numbers. Focus on doing what you do best. It’s about building a community who want to visit your site every day because you create value and offer expertise.