I like the Laundromat business. I like the fact that we provide a necessary service to many within our communities.
But a couple of years ago, I became increasingly frustrated by the low asset utilization of the equipment during the workweek. I also wanted to grow my business. However, the traditional expansion strategy of spending hundreds of thousands of dollars to build or invest in another store did not make sense to me because I would then have the same problem of slow weekdays at two locations.
So I started thinking, how could I make more money?
I tried different strategies to bring more people into the store during the slow periods (free soap Wednesday, lower pricing on washers, etc.) and while they worked slightly, they did not significantly improve the number of times my machines turned.
While I was growing our business, my wife and I were growing our family. We were amazed at how much laundry our family generated. So I thought if people were willing to outsource housekeeping, lawn care, etc. why not laundry?
We wondered if we could create a high-end technology focused, pick-up and delivery business. If we could use technology to appeal to non-traditional Laundromat customers, we could improve our machine use during our slow periods and not be confined to the geographic limitations of a store.
So we raised some capital and hired some talented developers. With modest goals we started to develop a branded, technology focused pick-up laundry business (https://www.happynest.com). As the business grew, we continued to add software tools to make it easier for our customers to use the service, easier for our employees to process the laundry correctly and easier for our drivers to pick-up and delivery the laundry efficiently.
Over the last five years, we have transformed a small delivery route into a sizeable business that exceeds our laundromat sales. We did this by developing sophisticated software tools and taking full advantage of the machines in our laundromat. Our team consists of software developers and SEO experts in addition to our highly talented laundry and delivery staff.
We have tripled our revenues in our current location, improve our competitive position and the value of our business without investing in another washer or dryer. Since our rent and equipment lease has remained constant our cashflow has increased dramatically.
We still like the laundromat business but we really LOVE the laundry delivery business.
If you’re interested in learning more about how Springboard can improve the efficiency and profitability of your laundry delivery service feel free to email email@example.com, call (401) 829-0052 or fill out our very short “Request a Demo” form.