Open Forum

Commercial same day service acct

  • 1.  Commercial same day service acct

    Posted 08-17-2019 11:37
    Hi All!,  We are a DC/Laundromat business. We have been engaged to provide Same Day pick up/delivery DC service for customers at a local hotel chain. Does anyone have experience with payments either directly from the customer or hotel itself? Thanks!

    ------------------------------
    RICK & PAMELA KELCHNER
    Kelchner Cleaners
    Kutztown PA
    ------------------------------
    Join CLA - Enjoy Membership Benefits


  • 2.  RE: Commercial same day service acct

    Posted 08-17-2019 12:12
    If you like to chase people for payment this is a good fit. The smaller the hotel the less likely they will be willing to pay.

    ------------------------------
    Richard H.
    Potential Divestor
    B.C. Canada
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 3.  RE: Commercial same day service acct

    Posted 08-18-2019 12:40
    That is a cryptic answer. Can you explain more for us newbies? Why would same day wash and fold for a hotel mean trouble collecting payment? I am not familiar with this business model.

    ------------------------------
    SARAH HOOD
    Kents Store VA
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 4.  RE: Commercial same day service acct

    Posted 08-18-2019 11:22
    Hi.. I've been working with a local, fairly large chain in my area for nearly 2 years now. It's been a great revenue stream and other than a few mistakes ( on or side) it's worked out well. Just get into their payment schedules ( first of the month, 15th of the month) and bill them a week before in order to get picked up in that month's payment cycle.
    I wouldn't deal directly with their guests however as it could be a problem getting paid. The in-room costing sheet is high and you want the hotel to back you on lousy guests not willing to pay for services. Good luck!

    ------------------------------
    Mary Willis
    Mary Willis Person
    Newbury Park CA
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 5.  RE: Commercial same day service acct

    Posted 08-18-2019 11:29
    What Richard said.  I've done a few of these.  We sent invoices on 15th and last day of month.  If they get more than 45 days behind in payment, terminate the arrangement.  It's a judgement call how far you want to let them go; 30 days net is common so I will tolerate that much lag.  You're trusting and taking a chance, just don't be surprised if you get stiffed.  It also depends how badly you want/need the extra business.  Good luck.

    ------------------------------
    Paul Kludt
    Multi Store Owner
    Lake Worth Coin Laundry
    West Palm Beach, FL
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 6.  RE: Commercial same day service acct

    Posted 08-18-2019 16:20
    Paul, thanks for your input! Does the hotel provide the customer info with the item for cleaning, do you then write up your invoice and return with garment, do you provide the invoice to the hotel/customer and at the time of and for the billing cycle. Is the hotel charging the customer prior to them leaving, do you charge a delivery fee,
    Your input is appreciated greatly! Thanks  Pam Kelchner

    ------------------------------
    RICK & PAMELA KELCHNER
    Kelchner Cleaners
    Kutztown PA
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 7.  RE: Commercial same day service acct

    Posted 08-18-2019 23:41
    Our situation was unique because the hotel was 6 blocks away from the store.  We invoiced the hotel twice a month and they just added whatever charge to the customer's room bill.  We charged the hotel $1.25 pound/$15.00 minimum, we didn't add a delivery fee because it was 6 blocks away.  The hotel marked up what we charged them, I'm not sure how much.  We never had any problem with the hotel paying us on-time.  It was maybe a 24 unit, lower end hotel.  We didn't get much business from the arrangement.  An order or two a week during busy season and very little in the summer.

    Somebody mentioned about chasing money, and I might have alluded to that in my earlier comment...I never actively marketed delivery/drop-off service, but people would come in and ask...Spas, doctors office, places like that.  People rarely pay in advance; they get a week or two of your service before you send them a bill.  Most people are good about paying, but you'll find ones that aren't.  Hence the comments about chasing money.  If you're a big, established delivery operator you may be better able to dictate terms, like paying upfront.   But many small operators usually don't have that leverage.

    Many new operators will dabble in arrangements like this (I did); you're new, starting out and are hungry for extra business.  But after a while, IMO you need to either fully commit to delivery or turn the business away.  I found that servicing and managing a small number of arrangements just wasn't worth my time and effort.  I see people that are successful with big delivery operations, but it was a lot more work and investment than I was willing to put in.  I was content and getting a good return on my core business with minimal headaches.  Best of luck in whatever route you take.


    ------------------------------
    Paul Kludt
    Multi Store Owner
    Lake Worth Coin Laundry
    West Palm Beach, FL
    ------------------------------

    Join CLA - Enjoy Membership Benefits