Open Forum

Wash & fold subscription model

  • 1.  Wash & fold subscription model

    Posted 06-09-2016 15:16

    I was thinking of offering a subscription model as an option for our wash and fold pick up and delivery customers.

    For those of you that offer a subscription or a flat monthly price option I would love to hear your experience and what you've learned from doing it and if you think it is beneficial to your business to offer that option for your customers.

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    Charles Measley
    Store Owner/ Employee
    Fluff and Fold
    NJ
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  • 2.  RE: Wash & fold subscription model

    Posted 06-10-2016 17:27
    Edited by Brian Henderson 06-10-2016 17:28

    You know, I've thought about this before but keep coming back to the same question - how on earth do you come up with a good price for everyone, particularly new customers?  It seems to me that it would vary depending on each customer due to their laundry volume and type of laundry.

    I've experimented with this a little.  Well, okay, very little.  Well, okay, it was for one person.  There's an elderly lady in a wheelchair who I deliver laundry for every other week.  She would get a bit confused as to what was owed and when I was coming, so to help her I set a hard schedule of laundry pickup every other Friday and a set price of exactly $40, no matter what she gave us to wash.  I was confident in that pricing because her orders always averaged around that price point anyway.  Some weeks we come out a few bucks ahead and other weeks a few bucks behind but it has still worked out to about that much on average anyway.

    I guess my point would be that the only way you could be totally confident with a flat rate would be based on existing data from a customer who has been using your services for a while.

    Now, all that said, I was fascinated when Chris Moreno told me how his company Laundry Locker does their laundry plans.  Check out this page on their site:

    https://laundrylocker.com/main/plans

    They offer rollover pounds!  I thought that was genius.  Makes me think of cell phone plans and how customers feel like they're getting something "bonus" by not totally using up their allotment each month.  Not only is Laundry Locker able to honestly claim "Laundry Plans As Low As $.99 Per Pound!", for any customers who don't use up all the pounds provided in their monthly plan they actually pay more per pound than the advertised rate.  The customer simultaneously feels like they're getting something extra while they are, in fact, often paying extra.  Brilliant, and worth studying as a business to possibly emulate.

    Brian Henderson
    Operations Manager | Liberty Laundry
    Owner | washdryfoldpos.com
    Broken Arrow OK

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  • 3.  RE: Wash & fold subscription model

    Posted 06-11-2016 21:33

    Yeah what Brian said. 

    I've been thinking of doing the samething for WDF service. I too looked at the laundry locker model, which i'm sure they borrowed from the mobile phone industry. 

    No need to "reinvent" the wheel...unless YOUR wheel is better.

    ------------------------------
    [LAUNDROLUX]
    [Capital Heights] [MD 20791]
    [corporate@laundrolux.net]
    [+1.443.502.0470]

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  • 4.  RE: Wash & fold subscription model

    Posted 08-06-2019 12:43
    I was thinking of doing something similar.  Anything learned in the 3 years since this post?

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    Steve Hays
    Steve Hays
    Shorewood IL
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  • 5.  RE: Wash & fold subscription model

    Posted 08-08-2019 18:22
    Steve,
       We've been doing pickup & delivery for about 3 years. We've settled on a few key points. One is to Keep it simple. Charge a fair price per lb, and include everything but tax. Yup, even delivery! No hidden fees, no confusing add on charges, no complications for the customers. We also offer weekly or by request for convenience too. In this situation people pay for what they use and that's that. It's fair to everyone, people appreciate the simplicity and will use you over and over.


    IMO, laundry subscription services are simply a way to get people to pay for services they're not using. I think most people figure that out and will resent your business. My 2 cents after doing this and thriving for several years.

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    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
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  • 6.  RE: Wash & fold subscription model

    Posted 08-09-2019 12:18
    Charles - We offer subscriptions in our software...and its fantastic! Really makes customers stay with you longer, increases there overall spend (Life Time Value) just a win win for everyone. Pricing is similar to the thinking of giving a gift card with higher value for less to incentive's or open float on a VTM card.... you will have those that use it all but most won't...we give 20% off the normal price...knowing that they'll use generally 70% of that discounted value...FOR EXAMPLE: you offer 50lb subscription for $40 and your normal cost would be $50 or $1 per pound..since most people only use 70% of it...meaning 35lbs in this example... in essence you are charging now $1.14 per pound! not to mention the clarity into long term sales...I read here all the time about folks asking if people are slow because its beginning of month and rent is due blah blah blah...with subscriptions that doesn't matter... Being able to track this easily via built in software is also a must otherwise you'll go bonkers!...believe me I tried it without and that is why I built it into the software we use...Happy to speak with anyone about the value of subscriptions.... or Charles next time we have a beer pal...maybe this Tuesday in the Highlands?! any questions fellas/ladies email me Rick@washclubtrak.com

    Subscriptions work 1000% and that is why the likes of Netflix or Amazon offer it ...

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    Rick Rome
    Owner/Operator
    WashClubTrak
    POS/Laundry Delivery Software
    New York
    Rick@washclubtrak.com
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