Planning For Growth And Profitability

Two of the most common questions that we receive from Laundromat owners looking to start a pickup and delivery business are:

  1. What can I expect for growth?
  2. How many customers will I get in the first 30/60/90 days?

We definitely understand why this is a concern. While the initial investment to start a pickup and delivery service is less than the cost of a new large commercial washer, no one wants to run an unprofitable business for long. Too much growth without the right support systems is just as stressful as not enough growth.

To help answer these questions we thought it would be helpful to provide you with real data as a guide. Facts are always better than fiction and we hope that this will help you as you prepare for your own growth! The chart below illustrates how different customers grew their pickup and delivery business in the first four or five months of operation. Naturally, these cases are all unique and the results that you can expect will vary based on your effort and time invested in this business. Like anything else, there is a direct correlation between effort and results.

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Customer #1* Month 1   Month 2   Month 3   Month 4   Month 5
New Customers 5 37 21 40 44
# of Pick-Ups 3 46 73 88 133
Monthly Sales $215 $2,009 $4,527 $4,991 $7,003
Average Order $71.70 $43.68 $62.01 $56.71 $52.65
Customer #2 Month 1   Month 2   Month 3   Month 4
New Customers 29 18 46 37
# of Pick-Ups 38 67 87 177
Monthly Sales $1,792 $3,584 $4,129 $8,014
Average Order $47.16 $53.49 $47.46 $45.28
Customer #3 Month 1   Month 2   Month 3   Month 4
New Customers 11 12 22 22
# of Pick-Ups 17 35 60 99
Monthly Sales $847 $1,579 $3,481 $6,543
Average Order $49.82 $45.11 $58.02 $66.09
             

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*Customer #1 started in the second half of Month 1 so we added an additional month to show you a relevant comparison to the other two customers.

We hope this information will give you an idea of what an average Springboard customer does in their first couple of months in the pickup and delivery business.  If you have additional questions or comments, please do not hesitate to reach out to me. Email john@getspringboard.com or call 401.829.0052.

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