Drop-Off Laundry and Commercial Accounts:  Are You Missing Out?

Duds and Suds Cedar Rapids, IA.	Laundry by Century Laundry Distributing.

Drop-off laundry is compatible with most commercial laundry operations. Customers love the service and are more than willing to pay the additional price to have their laundry done for them. It’s a great option for customers … and could be extremely profitable.

There are several different pseudonyms for drop-off, including bundle, wash-dry-fold, fluff ’n fold and bulk. All refer to the same basic concept. In a drop-off operation, customers drop off their dirty laundry and pick it up cleaned and pressed. The more attractively and professionally the clothes are processed and returned, the higher the customer satisfaction, and the higher the price tag the store can place on the service.

There are two types of drop-off service: commercial and retail.

What is a Retail Laundry Account?
Retail service refers to residential laundry accounts. As families become more time-starved, they are looking for ways to cut the time spent on chores. Many have outsourced lawn care maintenance and grocery shopping, so positioning a laundry drop-off as the next logical time-saving technique can be a great resource for existing and potential clients. Market your services to busy moms, single professionals, or anyone who wants to save time by having someone else do their laundry.

What is a Commercial Laundry Account?
Did you know that adding commercial accounts can help your laundromat build regular revenue and is a great way to make your laundry more successful? According to a Coin Laundry Association 2005 Industry Survey, only 35% of store owners currently provide business to commercial accounts. This means there is lots of opportunity for you to grow and take advantage of this important business niche!

Commercial accounts are any local business that may need their towels, linens, rags, uniforms, etc. These are businesses that send their laundry out to large commercial laundries and could just as easily send these items to a coin laundry. They may even save money since the coin laundry has lower overhead costs. It is possible to charge less and still make a good profit by providing special treatment (i.e., second wash, presoaking, fewer chemicals, working nights for faster turnaround).

Business opportunities are endless including small hotels or motels, barber shops, beauty salons, restaurants, nursing homes, day care centers, health spas, auto mechanic shops, cleaning companies and car washes, to name just a few. Other prospective commercial accounts are colleges, camps, beauty salons, doctor’s and dentist’s offices, and small restaurants. In more rural areas consider horse stables, dairy farms and meat processing plants. There are many, many more possibilities, so be sure to keep your options open!

A Separate Business From Coin Laundry
Experienced Dexter Laundry store owners recommend approaching drop-off laundry accounts as a separate business from your vended laundry. You will need to have an invoicing system and additional marketing materials for this service. For optimum success, experienced owners recommend including a pick-up and delivery service, which does come with the added business expenses of the vehicle, fuel, insurance, etc. Some smart owners actually have a separate staff that processes their drop-off accounts during off hours, when the coin laundry itself is closed to the public. This leaves the self service customers all day to use the machines without interruption, and maximizes their laundry’s efficiency.

Labor Requirements
If you add drop-off accounts to your business, you will need additional labor to handle the workload. Employee wages is another constant cost to consider. This service works best in attended stores, or locations where a worker can come in to process these orders after hours when the machines are slower, or the laundry is closed. You will need someone to process the orders, wash and package the loads, invoicing, and (if you choose to offer it) someone to handle pickup and delivery.

To make sure that the job is done right and consistently, the attendants must be trained carefully and properly and then compensated appropriately. Expect to pay more than minimum wages. Without good, qualified employees, the drop-off service has little chance of succeeding. Consider offering your drop-off employees by providing a commission incentive. This will reinforce good work habits by allowing those workers who do more to earn more, and your laundromat attendants will actively solicit new business because they know they will receive a portion of the rewards.

All attendants should be fully trained on how to properly log orders, wash and dry clothing, fold per set standards and package in a presentable manner. Consider developing a guidebook for your staff on how to properly and consistently process these orders.

Start Up Costs
There is relatively low start-up costs associated with starting a drop-off laundry service. You’ve already made the big investments into the laundromat and the laundry equipment. The only major costs with adding this service is the training and or hiring of the attendants. You’ll also need a space to store and process the laundry, such as behind a desk or counter, or some storage shelves or containers. You will need a legally approved scale to determine weights of your orders, and also laundry baskets and other supplies such as soap, bleach, softeners, receipts, cash register, hangers, etc. Along with the initial costs, there will be ongoing costs, including supplies. You will also want to consult with your insurance representative about insurance to protect your customer’s laundry.

You may want to also consider adding some additional or larger washers and dryers to process these orders. For more information on what types of equipment is best for drop-off laundry applications, ask your Dexter Authorized Distributor.

Sales Effort and Additional Marketing
While an occasional commercial account might just fall in you lap, in order to develop or grow this portion of your business will require some additional marketing and sales effort. Be sure to develop a sales piece that discusses your laundry service, lists pricing and how to contact you. You may want to even consider running ads in business publications such as Business Journals or Chamber newsletters.

When approaching potential drop-off laundry customers, some owners simply call or stop into a certain number of businesses each week; others mail a flyer or a business card, then follow up with a call or visit. You may decide to market your commercial laundry service to a particular target group or niche such as dentists, restaurants or nursing homes, or just to businesses in your area in general.

Persistence is a must during this process: 10 or 15 owners or managers may say no to your service until one finally says yes. Some small business owners need to hear an idea a few times before they’re comfortable enough with it to change the way they presently operate. Sometimes the owner of a seasonal business won’t feel they need the service during their slow times, but approach them again during their busier months and they may feel differently.

Commercial laundry accounts don’t always have to be with the business itself, but could also be with their employees. Go to companies with a lot of employees and work out a deal with the management to offer free pick-up and delivery laundry service. Then pick up the dirty clothes one day a week and return it the next day. If you pick-up large amounts at one time, you can make the delivery profitable for you.

Promotional Offers
To launch and continuing to grow your drop off laundry service, you will need to offer different promotions to grab customer attention and to keep them coming back. Start by getting excited about your drop-off laundry service, and get motivated to promote it. Consider giving new prospects an incentive, such as “5 pounds free” to encourage them to try the drop off service for the first time. The best way to introduce customers to the luxury and effectiveness of you doing their laundry for them is to convince them to give it a try. Another option is to offer 10 pounds free with the first 10-pound order, or to provide half price wash-dry-fold for a limited time.

Consider running store stuffer coupons in conjunction with other stores in the area (have local grocery stores distribute coupons in customer’s bags or on the backs of receipts). A great coupon is 10 pounds of w-d-f for $5. Another promotional technique is a midweek discount. Have the coupon give a 25 percent discount for w-d-f brought in on Wednesday or Thursday. If possible, partner with the local motels in the area. If they will let you, put out tent cards in the motel rooms featuring your laundry and this special service. Start by giving the motel a percentage of the business that they send your way.

Be sure to promote your drop-off laundry service on a reader panel sign out in front of the laundry. This will get people’s attention, and then when customers enter the laundry have your attendants ask them if they would like to try the drop off service. Reward loyal customers with a discount. You’ll move more clothes through your laundry and you will keep those customers coming back.