During the month of March we relied on Facebook advertising to promote a special of giving $5 of free wash for every $20 spent on a loyalty card. While the promo started in February, it was heavily promoted in March and customers responded extremely well. We saw revenue for the laundromat jump to over $22,000, and we saw loyalty card usage increase to 42% of total income. Coin accounted for 44% and credit card usage 14%.
In April, we settled into what will be our constant loyalty card promotion, which is giving customers $3 free for every $20 added to the card. Because this promo is obviously not as powerful as the March promo, we saw loyalty card usage drop to 33% of total store usage. However, income for the month increased slightly over March.
Turns Per Day
With the exception of the top load washers, which are turning at over 6.5x per day, most of the other equipment is being used a similar amount.
|Model||# of Machines||Turns per Day|
|22 lb Washer||6||2.50|
|20 lb Washer||10||3.09|
|30 lb Washer||10||3.48|
|40 lb Washer||7||3.48|
|60 lb Washer||5||2.53|
|80 lb Washer||2||2.88|
This implies a correct equipment mix and pricing strategy. Based on this info, we are going to tweak our pricing a bit. We would like to move people from the top loader, which is the most energy inefficient machine, to front loaders. Additionally, we would like to promote more usage of the 60lb and 80lb washers. We intend on doing this with in-store signage.
Key Takeaways from March and April Operations:
1) Examine your turns per day to come up with a rational pricing strategy.
2) You should always be promoting your laundromat with some kind of marketing.
3) It has been powerful not to discount the machines directly, but rather giving customers bonus dollars on their loyalty card.