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“Laundromats are recession-proof!”
I hear this whenever there’s talk about a recession. Some people talk about why it's a great reason to buy a laundromat, and I have to disagree.
I’m no guru, but I’ve been in laundry through a couple of recessions and would say it’s “recession resistant.” Let me equate it to something we are all familiar with.
Waterproof and water-resistant are similar, but totally different.
Water-resistant: able to resist the penetration of water to a certain degree but not entirely
Waterproof: impervious to water
So think of recession-proof as waterproof and recession resistant as water-resistant. Get it?
Everyone needs clean clothes, so technically there will always be a need for laundromats regardless of the economy. But that doesn’t mean they will bring their clothes to you. They can always go to your competitor during a recession.
While traditional streams like self-service, product sales, and wash-n-fold services have sustained us for decades, growing revenue during a downturn requires some creativity.
Here are a few ideas for additional revenue streams:
1. Wash-n-Fold Pickup-and-Delivery
Combine these two popular services to add an extra layer of convenience for clients.
2. Dry Cleaning
Partner with a dry cleaner to offer dry cleaning services in your store.
3. Sneaker Cleaning
Sneaker culture is huge, and we’ve had great success with offering in-store sneaker cleaning to this untapped market.
4. Pet Washing Station
With pet grooming bringing in an estimated $8 billion in the US, adding a pet washing station can be a great investment. Look into options like iClean Dog Wash and All Paws Pet Wash.
5. Self-Serve Car Wash Bay
If you have the space and funds, consider adding a self-serve car wash for clients to use while waiting for their laundry.
6. Car Vacuum Stations
Are you seeing a theme here? Adding services that allow clients to be productive while waiting on laundry can attract clients who are willing to pay for convenience.
Thinking about, the thinking of laundry:
The layers of insulation we add to our laundry business will soften the impact of an economic recession.
7. Vending Machines
This is a classic revenue stream that continues to pay for itself. Purchase your own and stock it regularly, or partner with a vending machine company and share the revenue.
8. Game machines
Whether you add video games to keep your clients’ kids busy or gambling machines to make laundry fun for the adults, everyone will enjoy the added entertainment. Similar to vending machines, you can buy your own or partner with a gaming company.
9. ATM
This low-to-no maintenance revenue stream has generated income for us over the years. You can purchase a new or used one for a few thousand dollars, fill it with bills, and set your fees. Alexander Webster is my go-to for tips on managing ATMs.
10. Donation Bin
People have lots of stuff to get rid of, so help them. Set up a donation bin and sell the items in good condition online. Donate the rest to a nonprofit to claim a tax write-off.
11. Lockers
Add package lockers or laundry/dry cleaning lockers to your store and charge for their use. Jeff Gardner, The Laundry Doctor is a helpful resource when it comes to this revenue stream.
12. Modifiers
These can be on your services as well as your washers and dryers. For example:
- Extra wash or rinse cycle
- Deep clean wash cycle
- Premium product offerings for wash n fold service
- Quick turnaround times for services
- Hang dry
- Storage of summer and winter items
You don’t have to wait until a recession to implement these ideas. Diversifying revenue streams is a smart move at all times. It spreads risk so your business isn’t overly reliant on any one service for survival. The more revenue streams you have, the greater the chance that your business will overcome changes in the economy and unexpected challenges.
That's all I got for you today.
Waleed
🏴☠️ ✌️
p.s. Connect with me on Linkedin and YouTube for more thoughts and strategies!
Echoing the thoughts of Rahm Emanuel
Never let a serious crisis go to waste. And what I mean by that it’s an opportunity to do things you think you could not do before.
Thanks for reading this edition of Wash Weekly. I hope you enjoyed the topic this week.
