Dry Cleaners & Laundromats Enthusiastic About Their Industry and Businesses For unknown reasons, American Drycleaner no longer publishes its StatShots reports that provided monthly sales statistics for the industry and previous Profilers. Nonetheless, the industry’s Clean ’17 tradeshow in Las Vegas during July 2017 attracted more than 12,500 attendees, indicating enthusiasm for the current and future status of the industry. Attendees were particularly interested in new technologies, including a garment management system that utilizes cloud-connected devices, the Internet of Things (IoT) and networked computers in a shop. Drycleaner Owners’ Top Improvements for 2017, 2016 Improvement Percent Equipment 74% A new look for my operation 32% New extras for my customers (TV, music, free coffee, etc. 18% Other (eliminate debt; more reliable, professional customer service personnel, etc.) 8% American Drycleaner, November 2016 Dispelling Marketing Myths According to a column in the May 2017 issue of American Drycleaner, most operators have one of five perspectives on marketing: A waste of time and money It isn’t affordable It isn’t effective Discounts increase traffic, but reduce profits It is crucial to improving sales and profits These perspectives on marketing have led operators to believe unsupported myths. Consumers in a drycleaner’s market area don’t know the business as well as the operator thinks they do. The average American moves every five years, so relying on word-of-mouth is a false promise. Media Group Online, Inc.• 103 Sterling Mine Rd.• Sloatsburg, NY 10974 • Tel 866-921-1026 • Fax 845-712-5168
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Dry Cleaners & Laundromats
Enthusiastic About Their Industry and Businesses
For unknown reasons, American Drycleaner no longer publishes its StatShots reports that provided monthly sales statistics for the industry and previous Profilers.
Nonetheless, the industry’s Clean ’17 tradeshow in Las Vegas during July 2017 attracted more than 12,500 attendees, indicating enthusiasm for the current and future status of the industry.
Attendees were particularly interested in new technologies, including a garment management system that utilizes cloud-connected devices, the Internet of Things (IoT) and networked computers in a shop.
Drycleaner Owners’ Top Improvements for 2017, 2016Improvement Percent
Equipment 74%A new look for my operation 32%New extras for my customers (TV, music, free coffee, etc. 18%Other (eliminate debt; more reliable, professional customer service personnel, etc.) 8%
American Drycleaner, November 2016
Dispelling Marketing Myths
According to a column in the May 2017 issue of American Drycleaner, most operators have one of five perspectives on marketing: A waste of time and money It isn’t affordable It isn’t effective Discounts increase traffic, but reduce profits It is crucial to improving sales and profits
These perspectives on marketing have led operators to believe unsupported myths. Consumers in a drycleaner’s market area don’t know the business as well as the
operator thinks they do. The average American moves every five years, so relying on word-of-mouth is a false
promise. Discounts are fine, but marketing messages should focus on the value propositions of
reliability, quality, professional service, convenience and fair price.
Drycleaner Operators’ Best Methods to Attract New Customers, 2016Method Percent Method Percent
#1: Word-of-mouth/Referrals 80% #4: Route sales 16%#2: Promotions 36% #5: Partnership with other business 11%#3: Other 20% #6: App 7%
American Drycleaner, May 2017 issueCoin-operated Laundry Business Increases from 2015
Media Group Online, Inc.• 103 Sterling Mine Rd.• Sloatsburg, NY 10974 • Tel 866-921-1026 • Fax 845-712-5168
In American Coin-Op’s April 2017 issue and its 2016–2017 annual State of the Industry report, 61.1% of readers responding to the survey said their revenues increased an average of 11.2% during 2016, compared to 2015.
Approximately 63% of respondents said they had bought or planned to buy new equipment, compared to 58% the previous year.
Almost two-thirds (63%) said they had already increased prices or were planning to do so, 27% said they had no plans to increase prices and 9.6% were undecided.
Coin-Operated Laundry Owners’ Biggest Business Challenges, 2016Biggest Challenges Percent
High cost of utilities 68.5%Labor costs and finding/keeping good employees 35.6%Maintenance costs 28.8%Equipment abuse/vandalism 23.3%Too much competition 20.6%Other 15.1%Poor industry image 11.0%
American Coin-Op, April 2017 issue
Growth Opportunities
American Coin-Op’s State of the Industry survey reported that 65.8% of operators expected their business to increase during 2017, 30.1% remain the same and just 4.1% to decrease.
Major factors driving growth in the industry is increased employment and personal income among those consumers more likely to use coin-operated laundromats.
In the April 2017 issue of American Co-Op, business consultant Howard Scott explained how laundromats in an urban environment can grab a greater share from nearby competitors by targeting an increase of 50 new customers at $9/week or $500/year.
Potential Revenues/Profit Increase of Urban Laundromats That Actively Campaign for 50 New Customers, 2016
The June 2017 issue of American Drycleaner offered some interesting insights on how the industry will change during the next five years.
Media Group Online, Inc.• 103 Sterling Mine Rd.• Sloatsburg, NY 10974 • Tel 866-921-1026 • Fax 845-712-5168
Many industry analysts, state association officers and major operators expect the drycleaning industry to continue to consolidate, as current owners will age and retire, and fewer of their younger family members will continue those businesses.
A major California operator thinks that the business model will evolve to a hub-and-spoke operation, with “central plants serving multiple drop stores and local locations.”
The increasing urbanization of American cities will result in more operations in urban areas to serve Millennials and, presumably, today’s Generation Z members as they age and start careers and families.
Another industry insider thinks that the concept of rental clothing will expand beyond the traditional tuxedoes, designer gowns and uniforms. “High-tech” clothing with embedded apps and other capabilities will require the drycleaning industry to adjust, accordingly.
Technology will also create new opportunities, in the form of 24/7 kiosks, unattended pick-up and drop-off services and non-storefront operations interfacing with customers via smartphone apps.
Sources: American Drycleaner Website, 8/17; American Co-Op Website, 8/17.
