Why Laundromat Owners Need to Offer Laundry Delivery Service

Laundromat owners need to offer laundry delivery service. As a laundromat owner, if you’re not offering pickup and delivery laundry service, you’re missing out!

5 Reasons You Should Offer Laundry Delivery Service at Your Laundromat

With other chores like grocery shopping, dog walking, and lawn care available at the click of a button, why not laundry?

Customers are busier than ever. They want the convenience of having someone else do their laundry for them.

With the tailwinds of the pandemic, modern laundromat operators offering pickup and delivery laundry service saw 50%-100% growth from 2019-2021. Here’s why laundromat owners need to offer laundry delivery service.

  • Double-utilization of machines and employees eliminates slack capacity.
  • Laundry delivery service is in high demand in a post-pandemic world.
  • Laundry delivery service customers are neither price-sensitive nor location-sensitive. They expect to pay more for convenience.
  • Delivery service customers have higher stickiness than self-service laundromat customers.
  • Technology is making it easy for modern laundromat owners to seamlessly integrate self-service, full-service, and laundry delivery service.
Laundromat Owner Tips | Laundry Delivery Service Operators | The Folde
Laundry Delivery Service | Tips for Laundromat Owners | Laundromat Software
Tips for Laundromat Owners | Laundry Delivery Service | The Folde

1. Double-utilization of machines and employees eliminates slack capacity.

Traditional laundromats sit idle most of the day with the exception of a couple of peak hours. However, your equipment costs and your lease payments are fixed. The same can be said for your staff.

Instead of underutilizing your machines, your facilities, and your staff with a traditional retail laundromat model, adding laundry delivery service helps you reach double utilization of your assets.

Double utilization of laundromat assets is the promise sold to operators when they start offering delivery service. It’s not that easy – but it is possible.

Double-utilization through laundry delivery service turns absentee laundromats into high-touch warehouses and production facilities. At The Folde, we average over 15 turns per day when the average laundromat distributor sells laundromats with 3 turns per day as the goal for new laundromats. During peak hours, the laundromat operates as a traditional, retail laundromat with plenty of room for walk-in, self-service customers. During non-peak hours, the laundromat operates as a production facility for our small production shifts, leaving adequate space for retail, self-service customers. And, when the laundromat is closed, we operate a full production shift, where 12-20 employees come in to fill the majority of our laundry delivery service orders.

The machines are spinning 24/7 with no slack capacity while the payments on the equipment and the facility remain the same.

2. Laundry delivery service is in high demand in a post-pandemic world.

Demand for delivery laundry service is growing everywhere.

When it comes to delivery laundry, it is a supply problem, not a demand problem. Conquering the delivery space also means conquering the supply side – which is the actual laundromats, space inside of the laundromat, and the operating procedures to produce orders efficiently.

There is no shortage of demand looking for the service. However, there is a shortage of operators who can capitalize on this demand.

Third-party providers offering laundry delivery service platforms are helping spread awareness that the service exists. This increase in awareness helps laundromat operators with adequate supply.

With the tailwinds of the pandemic, modern laundromat operators offering pickup and delivery laundry service saw 50%-100% growth from 2019-2021.

Here is a Google Trends chart tracking search volumes for four primary keywords related to the industry: laundry delivery, laundry app, delivery laundry service, and laundry delivery service.

Laundry Delivery Search Data | The Folde | Laundromat Operator Tips

3. Laundry delivery service customers are neither price-sensitive nor location-sensitive.

Positioning your laundry delivery service as a higher-end service is critical to attracting customers who are not as price-sensitive as your over-the-counter customers.

Instead of attracting customers in the socio-economic demographics of your retail laundromat, you can attract customers from higher socio-economic neighborhoods who are less price-sensitive and more interested in time-saving home services.

Location is a factor for retail, walk-in customers when choosing self-service laundromats. However, it’s isn’t a consideration for pickup and delivery customers. By offering pick-up and delivery, your laundromat can expand the customer coverage area by hundreds of square miles.

When compared to a $5 vend price, $25 on over-the-counter wash & fold service seems 5x more expensive. However, in the comfort of their own home, a $75 delivery laundry service feels like a steal. For this reason, laundry delivery service orders tend to be 2-3x larger than their in-store counterparts.

At The Folde, our laundry delivery service radius expands 15-30 miles in all directions – detailed below in green. However, our laundromat walk-in radius is only a couple of miles. Because of this expanded radius into different neighborhood demographics, our AOV on delivery orders is 3.2x that of our in-store orders.

Reasons to Offer Delivery Laundry Service | The Folde | Laundry Delivery Radius

4. Delivery service customers have higher stickiness than self-service laundromat customers.

Customer retention is everything. We’ve detailed this in our Guide to Laundry Delivery Software.

Laundry delivery is becoming a more competitive space. When we first started, Google search volumes were low and cost per click was even lower. Now, the novel concept of a delivery laundry service is much more popular.

On top of laundromats competing for keywords, third-party laundry apps – who are keen on digital marketing since they outsource all of the laundry production – are becoming more and more formidable.

Depending on your city, customer acquisition cost will vary. Customer acquisition cost (CAC) is the cost related to acquiring a new customer. In other words, CAC refers to the resources and costs incurred to acquire an additional customer. It’s expensive. And, as more laundry delivery service competition pops up, CAC is getting more and more expensive.

If your not retaining customers, your CAC could very well be wiping out your LTV.

LTV is customer lifetime value is important because, the higher the number, the greater the profits. You’ll always have to spend money to acquire new customers and to retain existing ones, but the former costs five times as much. When you know your customer lifetime value, you can improve it.

Lucky for laundromat operators, laundry delivery service customers are typically retained much longer than over-the-counter customers. As operators there are two areas of focus: 1) getting them on a recurring schedule and 2) retargeting those that do not opt for recurring scheduling.

Recurring Scheduling:

Most laundry delivery software services offer the ability to customize recurring options for your customers.

When they order, they should have the option to set this as a weekly, bi-weekly, or monthly option. Consider incentivizing them to get on these recurring plans to increase LTV.

At The Folde, customers on weekly recurring schedules have a 7.4x LTV over their non-recurring counterparts.

Retargeting:

Everyone wants to get new customers but nobody likes to focus on retargeting their existing customers.

Couponing existing customers during seasonal promotions can help reengage them as active users. While this might require manual tracking on your end, an automated solution is available for more advanced laundry delivery software solutions – like Starchup. More info on our automated email funnels is linked below.

5. Technology is making it easy for modern laundromat owners to seamlessly integrate self-service, full-service, and laundry delivery service.

Back in the day, adding delivery laundry service to your laundromat meant adding a whole new level of complexity and tracking. However, development in laundromat technology is shrinking the gap between laundromat operations and laundry delivery operations.

Offering delivery laundry service is not as easy as popping a sign on the door and buying a cheap vehicle. To build a competitive laundry service for your laundromat, picking the right delivery laundry service software is one of the most important choices you will make. However, integrations between card systems, delivery software, and other point-of-sale type systems is simplifying the process.

Consider your software choice carefully. Once you get started, your laundry delivery software will impact every business decision you make. You will find the limits of the software, the nuances of the customer experience, and the headaches it causes your employees. You’ll spend hours complaining about the sections of the software demo that you breezed through. You’ll feel trapped when you decide it’s time for a change.

However, once you create your tech stack of laundromat software and operating systems, the business starts to run itself.

5 Reasons You Should Offer Laundry Delivery Service at Your Laundromat

As a laundromat owner, you should be considering laundry delivery service at your laundromat. If you’re not offering pickup and delivery laundry service, you’re missing out! But, it’s not too late.

As the supply side of laundry delivery operators grows, the demand side grows as well – bringing more and more awareness to laundry delivery as a popular home service.

With the tailwinds of the pandemic, modern laundromat operators offering pickup and delivery laundry service saw 50%-100% growth from 2019-2021.

Here’s to even more next year!

Laundry Delivery Service Tips for Laundromat Owners | The Folde | Delivery Laundry Service

For Laundromat Operators:

As laundromat business models move from self-service to full-service models, laundromats are becoming bigger businesses.

Interested in contributing an article on modern laundromats? We’re collaborating with laundromat owners and operators who want to share!

For more info, email operator@thefolde.com.