Let’s Discuss Laundromat Additional Income from Vending Machines
If you’re new to the Laundromat business you probably have thought about additional income and benefits of additional sources of income from vended machines. Here are my suggestions and considerations on this subject:
- How many and what type of snack, beverage and laundry-related vending options do you offer?
Before installing vending machines in a Laundromat, it is important to consider if your vending machines are going to be in direct competition with your fellow tenants in a shopping center. If you’re located next door to a 7-11 store that sells candy and soda, you might be better off using the space for another washer, dryer or folding table instead of vending machines. I believe vending is a convenience item and should only be installed if customers have a need for the product. A soap machine can be included, but food, candy, soda and others can be left to nearby vendors. The profit generated from vending is often limited and involves additional time and effort beyond their economic benefit. The real money in the Laundromat business is paid washing and drying.
- **Which specific products are your best-selling or most popular vended items, including laundry items? **A soda machine, soap machines and toilet locks are the least troublesome vending machines you can have in your Laundromat. Candy machines can generate customer complaints about freshness and melted chocolate items. Never sell chewing gum or other items that can increase your efforts to keep your store clean. If you believe candy promotes and benefits customers, keep a whicker basket of Tootsie Rolls and Tootsie Roll Pops and have them available for free to give to the children of parents who allow their children to have candy.
- **How do you choose what your pricing will be for items in your vending machines? What are your prices? **It has been my experience to concentrate on making your money on washers and dryers and not on the profits from gumballs, video games, candy machines, clothes hangers and soda machines. Therefore I suggest pricing your items at no more than double your wholesale cost of purchase. If you overprice your vending machines, some customers may believe you are also overpricing your washer and dryer prices.
- **How do you choose the products to carry in your vending machines? **“Read the room” on the products you’re going to offer. I’ve found that vending the wrong brand product can result in poor acceptance by your customers. With a high Hispanic customer base, the soda should be Coke and not Pepsi. Diet sodas in these communities have limited appeal, so limit it to one column of Diet Coke and add a column of Orange and Grape. The best selling small packaged soap products are Tide, Cheer, Clorox, Downey and plastic bags. A wider variety of brands may not increase sales but will increase stocking issues.
- **What specific challenges does offering vended products to your customers present? **Aside from taking up valuable washer, dryer, seating and folding tables, vending and gaming items can attract outside people and the homeless to your Laundromat and make it difficult to limit access since you are offering products beyond wash and a dry. “If you’re not here to wash your clothes, you’re not welcome” can fall on deaf ears if you offer a wide variety of vending items.
- **What changes or trends have you noticed in the vending machine segment of your laundry business, since you’ve been offering vended items? **I’ve seen over the past forty years a variety of vending and gaming machines installed in Laundromats where owners don’t feel they are earning enough money just offering quality wash and dry services. A large number of candy machines, quarter push machines, gumballs and game or toy machines are often found in underperforming stores and installed to generate an additional revenue stream. They often result in unwanted attention from non-customers, customer complaints, vandalism and minimum revenue enhancements for the owner. In prior years, Laundromat owners concentrated on providing their customers with quality washing and drying services and few “out of order” signs.
- **In your experience, what are some key best practices for operating vending machines in a laundromat? And why? **Moderation is important. Carefully consider any negatives of the vending machines, including your time, before buying and installing any vending machine. Focus your attention and efforts on your basic business services and you will have happier customers.
