How to Prepare Your Laundromat for an Economic Recession
If you own or operate a laundromat, then you know that recessions can be tough on businesses. As people tighten their spending, they may cut back on visits to the laundromat in favor of doing laundry at home. This can lead to a decrease in revenue and profit margins. But there are ways that you can prepare your laundromat for a recession and weather the storm.
How to Prepare Your Laundromat for an Economic Recession
How Laundromats Perform in an Economic Recession
Laundromats are actually quite recession-resistant. Unlike other businesses, people still need to wash their clothes even when money is tight. So, while you may see a decrease in business during a recession, it is unlikely that your laundromat will go out of business. For this reason, they get classified as a recession-proof business. However, there are things that you can do to help weather the storm and keep your business afloat.
How to Prepare Your Laundromat for an Economic Recession
If you own or operate a laundromat, then you know that economic downturns, or recessions, can be tough on businesses. As people tighten their spending, they may cut back on visits to the laundromat in favor of doing laundry at home. This can lead to a decrease in revenue and profit margins. But there are ways that you can prepare your laundromat for a recession and weather the storm, whether we’re in inflationary times, we’re facing high interest rates, or we’re experiencing a general decline in the economy. Here are some tips on how to best prepare your laundromat for an economic recession.
Focus on Marketing and Promotions
-Run specials and discounts
-Create loyalty programs
-Participate in local events and festivals
-Advertise in local publications
-Offer online services such as pickup and delivery
Marketing is one of the best investments you can make in your company during economic downturns, despite that seeming counter-intuitive. Laundromat owners who invest in marketing wisely can increase their income revenue and overcome the challenges that a waning market can present.
It is critical to include a marketing budget for your laundromats and to work diligently to determine the most effective ways to invest that money.
Create a Loyalty Program
Or, you could offer a discount for every referral. Offering a discount for every referral makes your current customers your very own sales force! Borrow their influence to add to your customer base. And keep them coming back by making them a part of building your business.
Whatever you choose, make sure that it is something that will appeal to your customers.
Keep Prices Low, But Not Too Low
During a recession, people are looking for ways to save money. So, you may be tempted to lower your prices in order to attract business. However, if you lower your prices too much, then you may not be able to cover your costs. It is important to find a balance between keeping prices low and making sure that you are still turning a profit. You’re better off providing a higher quality service and better customer experience to attract your customers.
Offer New Services or Products
Investing in growing your company during a slowdown by adding a new service can tap into new demand for outsourced laundry. Many businesses cut costs and look to make their companies smaller when times are tight.
However, another tact is to view these challenges as an opportunity to offer more value to your customers. When you provide services that your customers need and want, even a tight economy won’t slow down your business.
Share Ideas with Other Laundromat Business Owners
The Laundromat Resource Pro Community exists to connect laundromat owners with each other and with great ideas. Our 3 tiers of community are designed to help you connect with the right people to help you achieve your goals and find success with laundromats.
The first community tier is the entire Laundromat Resource Pro Community. Among our ranks are seasoned veterans, rookies just learning about the business, and everywhere in between. You’ll get a chance to connect with the community in our pro community space and on our various calls, webinars, and Q&As.
The second community tier is our sub-topic communities. This is where you can connect with other people on the topics you’re most interested in. For example, you can join the rookie, drop-off laundry (WDF), or laundry pick-up and delivery sub-communities. Join any or all of them and engage in discussions, ask questions, answer questions, and share ideas!
The third community tier is our mastermind groups. Any member of the pro community can join a small group of 3-5 other members who all commit to meeting together to share ideas, share goals, hold each other accountable to tasks that lead to your goal achievement, and troubleshoot problems that come up. These relationships can be powerful, especially during difficult economic times.
Consider joining the Laundromat Resource Pro Community and be a part of a life-transforming movement!
Increase Efficiency and Cut Costs Where Possible
Small businesses, even a recession-proof business like a self-service laundry, must keep an eye on expenses. When you own your own business, that responsibility lands on you. If you can’t manage your expenses, you may see your cash flow dry up.
Keep a Close Eye on Your Competition
You’ll also want to be sure no new business enters the market near your laundromat. Investors looking to take advantage of poorly managed laundromats may use a slowdown in the economy as an opportunity to enter the laundromat industry. Laundromats attract investors with money to invest or who have access to capital. Managing your laundromat well during tight times can discourage investors from building a new laundromat near yours.
Take Advantage of Technology
-Using social media to promote your business
-Installing energy-efficient washing machines
-Offering a mobile app for your laundromat
-Automate tasks to reduce employee costs
By taking advantage of technology, you can help to make your business more efficient and appealing to customers.
Laundromats have traditionally been slow to adopt new technology, but owners who utilize technology to help them manage their laundromats see success both in terms of increased income as well as a better work-life balance.
Focus on the Customer Experience
Finally, it is important to focus on the customer experience. This includes things like making sure that your laundromat is clean and well-lit. Additionally, you should train your employees to be friendly and helpful. By providing a great customer experience, you can help to keep people coming back—even during a recession.
Have a Plan B – and C – in Place
No matter how well you prepare, there is always a chance that your business could be impacted by a recession. So, it is important to have a plan B – and C – in place. This may include things like diversifying your income sources or reducing your overhead costs. By having a plan in place, you can help to protect your business during tough economic times.
Recessions Don't Last Forever
The laundromat industry, although not exactly recession-proof, is recession-resistant. And although laundromats have an extremely high success rate and are often considered a safe investment, it’s always important to be proactive and prepare your business for the worst-case scenario. By taking steps such as analyzing your expenses, keeping an eye on your competition, taking advantage of technology, focusing on the customer experience, and having a plan B – and C – in place, you can help ensure that your laundromat is ready for whatever recession may come its way.
By following the tips above, you can help to prepare your laundromat for a recession. So, if the economy takes a turn for the worse, you can rest assured knowing that your business will be able to weather the storm.
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