In my interview of Evan Papson on the Laundromat Resource Podcast, we had an insightful discussion about the laundromat industry, covering various strategies, challenges, and actionable advice for laundromat professionals. Based on this episode, I’ve identified several impactful lessons that business owners can leverage to grow their businesses effectively. Here’s a detailed exploration of the most valuable takeaways along with suggested action steps.
Lesson 1: Persistence and Systematic Approach to Finding Deals
Impact
Evan Papson’s journey underscores the importance of persistence and a systematic approach when searching for laundromat deals. Despite taking about a year to find his first laundromat deal, Evan remained dedicated, utilizing various methods including sending letters of interest to existing owners and maintaining consistent communication with brokers. This approach helped him stay on track despite initial setbacks.
Action Steps
Develop a Consistent Deal-Finding Routine:
Letter Campaigns: Create and send personalized letters to laundromat owners within your target area, expressing your interest in potentially acquiring their business.
Broker Relationships: Build and maintain relationships with multiple brokers who can provide insights on new listings and opportunities.
Leverage Multiple Channels:
Online Platforms: Regularly check websites like BizBuySell for new laundromat listings.
Networking: Attend industry forums and local business events to meet other owners and brokers.
Stay Organized: Use a CRM system or a dedicated spreadsheet to track communications, follow-ups, and other details about potential deals to ensure that no opportunities are missed.
Example
A laundromat owner in Cleveland could set a goal to send out 50 interest letters per month within a 30-mile radius, while also scheduling monthly catch-up calls with three different brokers – thereby creating a steady inflow of deal possibilities.
Lesson 2: Importance of Community Engagement and Networking
Impact
Both Evan and Jordan Berry emphasize the value of staying connected with other laundromat owners and the wider business community. This practice not only offers emotional support but also results in practical benefits such as sharing repair advice, finding technicians, or brainstorming growth strategies.
Action Steps
Join Online Forums: Engage in online forums such as LaundromatResource.com/forums to ask questions, share experiences, and get advice from peers.
Local Meetups: Organize or participate in local business meetups or industry-specific groups to foster a support network.
Mentorship Programs: Seek out a mentor with experience in the laundromat industry or offer to mentor a newcomer, creating a symbiotic relationship that fosters growth and learning. The Laundromat Playbook program was designed specifically to give you the information you need to succeed AND to connect you with the right people to accelerate your success. If you’re serious about laundromats being a path to your goal consider joining the community!
Example
A laundromat owner in San Diego could start attending a monthly mastermind group for small business owners, while also actively participating in LaundromatResource’s online forums to exchange industry-specific advice.
Lesson 3: Strategic Pricing and Cost Management
Impact
Evan Papson discussed his strategic approach to pricing adjustments and managing rising costs, emphasizing gradual and data-driven changes. His insights highlight the significance of balancing competitive pricing with the need to cover increasing expenses such as utilities, rent, and labor.
Action Steps
Analyze Competitor Pricing: Perform regular audits of competitors’ pricing to ensure that your services remain competitive. Adjust prices based on these findings without drastically changing them, which could alienate customers.
Incremental Adjustments: Implement small, incremental price increases on services, such as charging modestly more for hot water or reducing dryer times, to manage rising costs without significant customer pushback.
Communicate Changes: Clearly communicate any pricing changes to customers, explaining the reasons behind them (e.g., increased utility costs). This transparency can help maintain customer trust.
Example
An owner in Miami might increase the cost of hot water washes by a small amount every six months, ensuring each change is justified and communicated to customers through in-store signage and digital communications.
Lesson 4: Leveraging Technology and Modernization
Impact
Evan’s transition from a coin-based system to a card system and the implementation of software like LaundroWorks and CleanCloud showcases the power of technology in improving operational efficiency and customer experience. These updates not only modernize the business but also present scalable benefits.
Action Steps
Invest in a Card System: Evaluate and invest in a card or mobile payment system that can replace or supplement coin transactions, considering customer preferences and ease of use.
Adopt POS Software: Implement a point-of-sale system like CleanCloud to streamline transactions, track sales, and manage inventory more effectively.
Customer Education: Introduce these technological changes with sufficient customer education and support to ease the transition. Offer introductory discounts or loyalty incentives to encourage adoption.
Example
A laundromat owner in Austin could launch a promotional campaign when introducing a new card system, offering cardholders a 10% discount on their first six months of use, coupled with in-store demonstrations and support.
Lesson 5: Effective Marketing and Customer Retention Strategies
Impact
Evan’s strategies for marketing and retaining customers, from banner ads and social media to loyalty programs, illustrate how proactive marketing can drive business growth. He leveraged neighborhood support and targeted marketing to increase visibility and customer retention.
Action Steps
Multichannel Marketing:
Online Ads: Run targeted ads on platforms like Facebook and Instagram to attract new customers.
Physical Marketing: Use banners and flyers in strategic locations to increase local visibility.
Loyalty Programs: Develop a loyalty program that rewards repeat customers, encouraging sustained business.
Community Engagement: Engage the local community by participating in or sponsoring events, distributing flyers at nearby businesses, and encouraging word-of-mouth referrals.
Example
A laundromat owner in Brooklyn could design a loyalty card program where customers earn points for each visit that can be redeemed for free washes. Simultaneously, they might invest in local advertising through community bulletin boards, social media, and partnerships with nearby cafes and shops.
Conclusion
The lessons from Evan Papson’s experience as shared on the Laundromat Resource Podcast offer critical insights for laundromat professionals aspiring to grow their businesses. By adopting a systematic approach to finding deals, engaging with the community, strategically managing prices and costs, leveraging technology, and implementing effective marketing strategies, laundromat owners can create sustainable and thriving businesses. Each action step highlighted provides a practical framework that owners can immediately implement to begin seeing positive changes in their operations.
