Recession-proof. Recession-resistant. Recession-whatever!

Clearly, these days a good number of self-service laundry owners are feeling anything but.

Then again, clichés become clichés because, for the most part, they’re true. And that old one about laundromats being able to weather any economic storm, though being tested severely, is proving factual for many storeowners.

Below, a number of laundry operators – some new to the industry, some seasoned veterans – have provided first-person accounts of what they’re doing to buck the current economic death spiral – not only surviving this struggling economy, but thriving in spite of it.

Bruce Wyatt
West Avenue Laundry Express
Crossville, Tenn.

New Store: I built a really nice store in a market that had no investment in decades. Clearly, a new store in and of itself has its impact, and that’s not something everyone else can duplicate.

Advertising: I have run a strong advertising campaign since the day I opened. We initially offered a free wash coupon in the local paper every week; that coupon was actually worth $2.50. Since then, I have backed off to a $1 discount. However, I was shocked and amazed at how my customers responded. Laundry customers respond to little incentives.

We also offer a frequent wash card, similar to the one I get from my local coffee shop when I get my latte every morning – every sixth or seventh latte is free, and it’s the same at my laundry with the washes. The customers have really bought into this program, and any attempt to do away with it is met with complaints.

Some laundry owners fail to understand and appreciate the value of advertising, especially if they’ve been in business 10 or 15 years. They think, “Everybody knows I’m here. There’s nothing else I can do.”

What they fail to understand is that their marketplace and customer base is constantly changing. People are moving in, moving out, dying, getting married, having families. Without that advertising presence, I don’t know how they expect to maintain their customer base. That’s the biggest opportunity they would have.

Over time, you can create an image for your business with your advertising. It’s almost an unconscious thing.

Attended: I am an attended store, which gives me the opportunity to do things that an unattended store cannot, such as coupons. With an unattended store, I just don’t know how you would combat the market situation that we have today. What could you do to respond to it, other than just lower vend prices or turn that thermostat down?

Having attendants here, we’re able to take good care of the customers. In my opinion, unattended stores are probably the segment of our industry that is suffering the most. They have no way to respond to this unprecedented financial situation that we’re in. What can they do? Lowering prices is suicide.

I’ve got three reliable, long-term attendants. My manager has been with me since the day we opened.

Drop-Off Laundry: We offer full-service wash-dry-fold, and I also made a $20,000 investment in some ironing equipment last fall, which dovetails nicely into my residential drop-off business.

All of my attendants iron clothes, and my wash-dry-fold business has consistently increased.

It offsets the cost of being attended. Plus, it gives me the opportunity to reward my attendants, who run the store for me. I share that wash-dry-fold revenue with them on a percentage basis, which gives them an incentive to promote it.

The Bottom Line: I’m seeing a monthly increase of 2 percent to 4 percent. I’ve been on an upward trajectory since Day One, a year and a half ago. It was on steeper trajectory for a while, but it is still trending upward. And I have not changed my vend prices so that is not a factor. It’s an increase in volume.

Stuart Kaufmann
Grace’s Laundromat
Hackensack, N.J.

Adding Value to Existing Stores: I happen to like existing stores that are beaten down into the ground. I don’t need to start something new. I don’t need to build from the ground up. I’m very happy to take something that I can pick up for peanuts and re-do it.

Up until it closed two years ago, Grace’s had been a 24/7 establishment – unattended, dirty and with out-of-service machines.

The answer to everything can be found in what doesn’t work. Then, find out what the customer wants, build it, and they will come. It’s all about serving the community. It’s about how to be effective.

The Bottom Line: I’m currently negotiating a lease for another store.

Jimmy Brinkley
Soap ’N Suds
New Ellenton, S.C.

Diversification: I’m not an optimist or a pessimist – I’m a realist. I come from a family that’s been in business a long time, and we diversify. I’m in the car wash business, the storage business, the snack business and the laundromat business. But my main business is still laundromats.

Negotiation: With this economy, you can renegotiate anything right now. If you’re leasing, go back to your landlord and say, “Hey, what can you do for me?” If they can cut it $50 or $100 or whatever, do that. Next, go to the gas company and say the same thing.  That’s the way it works.

Also, I believe in the Golden Rule with my vendors. I know that they’re in the same boat we all are, so I buy locally. I support the people who have been with me when I first started. I negotiate with them to get the best price they can give me without hurting their own businesses.

In fact, we’ve got a building going up right now. It’s constructed of metal. Metal is cheap, and we negotiated with them.

And it never hurts to consider negotiating with the banks, too.

Energy Efficiency: In the most recent store I opened, I cut my energy consumption by about 45 percent, and the next one I build should cut my usage by about 50 percent. I’m putting up tighter buildings, with high-extraction equipment and high-efficiency water heaters. I’m also considering adding solar technology to my stores.

Advice to Other Owners: Now is not a time to get down. Appreciate your customers. Take advantage of everything. The laundry owners who are surviving right now will make it.

You have to look at your business, see where you can make cuts and decided what you need to do. But the owner who has made it this far has made it. You’re on the other side of the hill. You’re over the hump. Just be smart.

The Bottom Line: I’m still investing in this business. I have another laundry planned that I’m going to start in a few weeks. Right now is the time to buy land. Every time I look it’s $2,000 cheaper.

Jeff Gardner
Sel Dale Laundromat
St. Paul, Minn.

Internet Marketing: What I believe is working for me is Internet marketing. I continuously tweak my business’ presence on the Internet. I spend about five hours per month researching different types of Web-based listings and so on – to be sure my presence is out there on the Internet.

In fact, in just one day, I recently ran into five new customers in my store – and they all found me on Google. Also, I’ve got a lot of people signing up for residential wash-dry-fold off of my Web site.

Customer Service: I just upgraded my customer loyalty program so that now I am capturing all of their e-mail addresses. With those addresses, I’m sending a monthly customer e-newsletter, along with coupons to all of the customers in that loyalty program.

Beyond that, I’ve got great employees. I insist that every customer is greeted, and that their experience in my laundromat is as hassle-free and enjoyable as we can possibly make it. We truly are trying to let our customers know in everything we do that we value them.

We’re all about meeting the new people. We know when there is a new person in our laundromat – they have that glazed look in their eyes: “What am I doing here? Where is the change machine?” We’re all about interacting with those people.

Drop-Off Laundry: The residential wash-dry-fold customers I’m getting are the people who are working very hard, because they have jobs and they’re working extremely hard to keep them. Thus, they value the time that they have, so they’re not doing their own laundry.

On the commercial side, the customers I’m getting are coming to me primarily because they’re looking at cost-saving measures. These commercial customers are smaller businesses. And because they’re smaller, the larger commercial laundries of the world are gouging them on price, because it still costs the laundries to make pickups and delivers.

However, these smaller commercial accounts are located close to me, and they’re out shopping their laundry business. I’m the cheap alternative. I’m the local business. I’m the good guy.

In my mind, there is a market to be made in the commercial world right now.

Reinvesting in the Business: This year, I installed 10 new 45-pound stack dryers. Also, during the heart of the recession last summer, I freshly blacktopped my parking lot and completely re-lamped my store with brighter lights. And, I was able to negotiate a great deal on both. On resurfacing my lot, I had received a bid in 2008 but passed on it – and I got it for almost $500 less last summer.

The Bottom Line: My coin laundry sales are up 10 percent over last year’s coin laundry sales, without a price increase. Last year, overall, I was up 18 percent over 2008 in coin laundry.

In drop-off laundry, which includes commercial and wash-dry-fold, I am up 15 percent from January 2009 to January 2010.

Zan Thompson
Fountain City Coin Laundry
Fountain City, Tenn.

Cleanliness: Number one is the cleanliness of my laundry. I feel people are struggling, and the last thing they want to do is spend what little bit they’ve got and sit in a nasty place. They’re spending their hard-earned money, and I think cleanliness is a way of me saying I appreciate their business. It’s respecting them.

New Equipment: I bit the bullet and replaced my toploaders. I had purchased an older laundry, and I replaced all of the toploaders with frontloading, high-efficiency machines.

When I did so, I went up 25 cents on my vend prices, but my customers are now getting so much more for their money as far as the cleanliness of their clothes. The new machines have only grown my business.

What’s more, I’m getting ready to install 14 new high-efficiency dryers. I actually have to. I have no choice. I’m out of capacity, which is a great problem to have. I’ve got eight single-pocket dryers on one wall, and I’m going to replace them with seven stack units.

Customer Service: I’m here during the day. People like to see the owner. We carry people’s clothes in and out for them. I assist them with the machines. I even help them fold. I really interact with them. We have a great atmosphere here. Customer interaction is so important.

Also, my husband owns a coffee business, so I always have free coffee, and it’s really good coffee, too. Little touches like that make all the difference.

People can go anywhere to wash their clothes. So, what sets a laundromat apart from the competition is cleanliness, customer service and customer appreciation. A customer doesn’t leave my store that we don’t say, “Have a great week! We appreciate your business.”

Wash-Dry-Fold: My wash-dry-fold business has stayed fairly steady during this time, because I’m focused on quality and consistency. I don’t care if a customer brings me five pounds, 50 pounds or 150 pounds – we approach it the same way. My wash-dry-fold loads always look good, and I use high-quality detergents.

The Bottom Line: Over last year, I am probably up $500 a week, which is good for a small store. I’m only about 1,600 square feet.

Dennis Beach
Beach Corp.
Hardeeville, S.C.

Solar Technology: I installed a solar water heater in a new laundry we built in May 2009, and it has cut our natural gas prices in half – not to mention the tax credit I received for putting it in.

I also installed a solar heating system in a store that I’ve owned for 15 years. And I plan to take advantage of solar technology in a new 8,000-square-foot laundry I’m building in Georgia.

Customer Service: I attend two or three NASCAR races a year, and most racetracks make you feel welcome and glad you spent your money. However, in the 12 years I’ve been going to Daytona Motor Speedway, it’s never been like that, simply because they didn’t really need to. But, this year, when we came into the infield, Daytona Speedway officials all thanked us for coming. That’s a sign of the times.

Even Lowe’s and Home Depot have people greeting you at the door. They realize times are hard.

Another example is the restaurant business. I like to go out to eat. When we all had plenty of money, it didn’t really matter. Now, if I’m going to spend $100 for a meal, I’m going to go somewhere I know I’ll get good service.

Of course, this all applies to the laundry business. You need to be polite and help your customers out. People will go where they know the equipment works, the store’s clean and, if they have a problem, they can get a refund.

I’ve got a couple of car washes, too. Customers will call me and tell me they lost $7, and I’ll send them a check. No questions asked. I’ve done that for 33 years.

New Equipment: Years ago, we tried to make equipment last forever. Now, every couple of years, the equipment becomes so much more energy-efficient.

We all used to have our dryers running for 20 years. You may think you’re saving money because you don’t have a monthly payment, but you’re really not – because you’re paying for it on the other end in utility costs.

Also, I recently upgraded my store lighting from the old T-12 lighting to T-5s. There was an initial cost, but it has saved me money on my electricity costs. Plus, it’s looks better.

Card Systems: My son graduated from college two and half years ago, and he said, “Dad, you’ve been toting around a 50-pound bag of quarters forever.” But the truth was that I was afraid of installing card systems because we’re in a rural area. I could see where it would work in a college area, but I wasn’t sure if they would work for me.

I was wrong. The card systems work very well. You can run special marketing promotions and do more than you can with coins. And you can keep better track of what’s happening in your stores.

I’m always amazed at how many customers put money on their cards and then never come back to use it all.

Full-Time Business: The biggest change in my 30 years of being in the coin laundry business is how we all used to treat the laundromat as a side business. Today, stores are bigger and are run more professionally, and that’s what the customers are looking for. They’re looking for clean, energy-efficient stores. And, most of all, they’re looking for customer service.

The Bottom Line: I’m up 15 percent over last year. And I’m building an 8,000-square-foot laundry in Georgia.

Grady Hensley
Harding Place Coin Laundry
Nashville, Tenn.

Location: Visibility, visibility, visibility. Do not try to “save money” on location. You’re either going to spend it on marketing to try to get somebody to come there, or you’re going to spend it on rent where the customers just walk in the door. We chose to spend it on rent, because it doesn’t hurt that we’ve got 75,000 cars a day at our intersection.

We are highly visible in a high-traffic area with good demographics. After all, my operating practices may be a positive but location is way more important than any of that. You can screw up a good location, but it’s really hard to fix a bad one. So, we went to Main and Main. What you pay in rent is irrelevant because it’s having people see you and walk in. We have spent no money on marketing.

Customer Service: Some laundry owners see the customers who walk in the door as a way to make money, rather than somebody to serve the needs of. I’ve tried to teach anybody who has ever worked for me in any business that all customers are volunteers.

I was in the restaurant business for a while, and I found out that, when you open a new restaurant and people come in for the first time, they leave either as an evangelist or a terrorist. It’s the same way in the coin laundry business.

When you open the doors, people are going to try you because you’re new. What happens with their first impression determines whether they’re going to be a regular customer or go back to where they had been doing their laundry.

You live and die by your customers, and I want all of my attendants to know that the people walking in the door pay their salaries.

Specifically, we have a large Hispanic population so our vending machines are stocked with Jarritos drinks, and our soap dispenser has Ariel and Suavitel. We’ve looked at our market and provide the products and services that meet the needs and expectations of our market segments. If you used one word, it would be respect. I need to earn their business.

I’ve also hired bilingual attendants, and I’ve hired based strongly on personality.

New Equipment: It’s not the cost that’s involved; it’s the business that it generates. It’s my top line that I need to increase, and my bottom line will take care of itself.

We bought the newest, most efficient equipment we could get our hands on, which keeps our operating costs low. I feel like I’ve got an advantage over other laundries. If a store’s been out there for three, four or five years, I’ve got a pretty large advantage over them just on utility costs.

Brad Mathewson
Catawba Clean Scene
Lakeside Marblehead, Ohio

Cleanliness: I try to make my stores cleaner than restaurants or retail locations, which is hard to do in the laundry business.

We spend a lot of money, time and effort on cleanliness. When we do that, we get some of the non-traditional laundry customers – homeowners that have washers and dryers – who are less reluctant to try us because we’re so bright, well lit and clean. And I think I create a bit of my own market this way.

We keep our machines fresh. We’ll open the doors and clean under the door gaskets. We take a toothbrush and scrub the soap dispenser and fabric softener dispenser, because they develop buildup over time. Also, I’ll have my attendants take a toothbrush and rags and detail the steel bases of my washers.

I’m constantly checking the restrooms. You’d have to go to an upscale hotel to find restrooms as clean as ours. And I won’t put up with anything less.

The best way to approach a store is get your best bedspread and pillowcases. Would hesitate to wash and dry them at your laundry? If so, you know what you need to do.

Cleary, this is not something that happens overnight. You can’t, all of a sudden because of the recession, decide you’re going to do it. But it’s something I do that I think has helped me hold up better than some of the other laundries.

Diversification: Most of my laundries are attached to either car washes or drycleaners. We multiplex our facilities, so we have customers going past our doors every day that aren’t necessarily doing their laundry; however, since they’re here using the other amenities, if their washer or dryer breaks down or they need to tackle some larger loads, they’ll come here. After all, they’re already comfortable with and aware of our business.

Utilities: You have to constantly look at your utilities. You need to keep your utilities at 20 percent or less than your sales. That is possible with today’s equipment. It’s expensive to upgrade, but you cannot continue to pay high utility bills – it doesn’t do you any good. Your utility company isn’t going to send you a box of chocolates on your birthday.

You’ve got to keep your water hot and your dryers running. And you have to be fair in your vend pricing. There’s just no profit in having inefficient washers and dryers; the same goes for your water heater.

We clean out the lint filters on our dryers every day. Also, I know some laundry owners are turning their water down to 115 degrees. I keep mine at 140 – when my customers want hot water, they get hot water.

Keep your store efficient and your equipment up to date, and you can keep your utilities at 20 percent or less of sales. That’s what you have to do.

Karl Keefer
Westfield Laundromat, LLC
Downers Grove, Ill.

Full-Cycle Dryer Pricing: When I first purchased my store five years ago it was offering free drying. A big part of my challenge was to get my customers’ mindset off of free dry.

When I first eliminated free dry, I started off with full-cycle dryer pricing at a quarter for 40 minutes. Immediately, I lost business, and revenue dropped. Then, I jumped to 50 cents, and revenue dropped some more.

This was partly because my marketplace saw me as “the free dry store.” Unfortunately, that free dry philosophy covered up a lot of faults in other aspects of the business.

I worked on those other issues and held my dryer pricing steady. Then, when I went from 50 cents to 75 cents on the dryers, the response from my customers was almost positive. They now like my staff. They like my store. And they understand the need for a price increase. But it was a culmination of years of building relationships.

I plan to raise dryer prices to $1 and then to $1.25 later in the year.

Market Changes: I had a competitor go out of business, so I picked up some customers that way. Also, renter occupancy appears to be up in my market. There are several smaller buildings near my store, and I don’t see the “For Rent” signs as prominently displayed as five year ago, when I first got involved with this store.

The Bottom Line: Business is up 20 percent over last year.

Yes, some of the circumstances above are unique to those particular storeowners and likely cannot be duplicated at your own laundry operation.

But the majority of the advice and anecdotes are open to all comers. So, pick three or four, and give ’em 100 percent – and we’ll see where your bottom line is come next March.

planetlaundry.com