Incremental vend pricing proves to be a huge advantage within the laundry industry. This strategy enables owners to increase their pricing by an amount less than the traditional quarter. When utility rates increase, laundromat owners can take advantage of incremental vend pricing by slightly increasing the cost of their washers. This increase not only helps to offset the increase in utility expenses, but also helps owners in other areas of their business strategy.
Here are just a few of the advantages to utilizing incremental pricing in your laundromat:
Because incremental pricing can mean increases in vend price by just a few pennies, customers don’t feel the weight of the rising utility costs. Consumers remain satisfied and therefore loyal to their trusted laundromat. While other laundromats may notice pushback as their customers’ pockets get heavier due increasing costs, LaundryCard members often don’t notice the change. Incremental pricing helps to not only retain loyal customers, but also attracts new consumers in the market.
“By raising prices consistently but in small increments, we get very little pushback from customers and most don’t even notice. This allows us to keep ahead of utility and other cost increases. Our competition has to raise by an entire quarter which provides us with a competitive advantage.”
– Bill Norteman, Chicago Area Laundromat Owner
Incremental pricing allows for a competitive edge in a saturated marketplace. As the cost of water continues to rise, laundromat owners must look for ways to counteract increases in utilities. Typically this looks like an increase in the cost of the laundromat’s services. While traditional laundromats must increase their machines in increments of $.25, LaundryCard owners can increase their cost of service by much less. This slight increase in vend price allows LaundryCard owners to remain competitive in the market as an affordable solution to the customers needs.
When asked what trends are quickly evolving, Karl Hinrichs, president of HK Laundry Equipment, Inc., responded saying,
“Laundry card systems are the way of the future. The biggest evolutionary jump is eliminating the quarter. With card operated laundromats, there is no limit to the number of laundromats you can operate and you can spend your time focusing on managing your business rather than processing quarters.”
– Karl Hinrichs, President of HK Laundry Equipment, Inc.
Card systems allow customers the freedom of a quarter-less pocket, and allow owners the ability to focus on their business as a whole rather than counting quarters. Limitations to pricing, loyalty programs, growth, and management are all removed as a card system like LaundryCard is implemented.
See how much a small increase in your prices can affect your bottom line and offset rising utility costs by using our profit calculator.