- Wash Weekly
- Posts
- Creative Revenue Streams to Consider
Creative Revenue Streams to Consider
Boost Your Business Amidst Economic Downturns
Hi Wash Weekly Family.
There is plenty of talk on the internet about laundromats being a recession-proof business.
I’m not sure I completely agree with that. Just read this previous LinkedIn post.
It’s not just me, either. Tim Simons, a money market economist at Jefferies, thinks that 2023 will see a “classic recession”:
He predicts that the downturn will begin at the corporate level in the first half of 2023, leading to reduced headcounts. By mid-2023, he predicts that economic growth will slow and inflation will begin to dissipate.
While this may be true, I do feel we are more insulated from some of the effects of a recession than other businesses, being that people need clean clothes (well, until they invent self-cleaning clothes or people start walking around completely naked…lol).
This got me thinking: how can we not just be insulted, but grow our revenue during a recession?
The staple revenue streams for our industry have been pretty much the same for decades:
Self-service
Product sales (detergents, softeners, bags, etc)
Wash-n-fold service
We can be more innovative and creative than that!
Here are a few revenue streams we’ve tried and also do:
Wash-n-Fold Pickup and Delivery This has gotten a lot of attention lately and more and more people are getting into it. The barrier of entry has been lowered due to more forms of technology entering our industry.
Dry Cleaning Partner with a dry cleaner to offer dry cleaning services at your store.
Vending Machines You could purchase your own and stock it regularly OR partner with a vending company and share the revenue.
Game Machines Think video games, grabbers, gambling, and more. Similar to vending machines, you could buy your own or partner with a gaming company.
ATM We placed one in our laundromat and it generated a good income with little to no maintenance. You can purchase a new or used one for a couple of thousand and fill it with bills and set your fees. I recommend connecting with Alexander Webster. He is incredibly knowledgeable about the business.
LockersAdd a bank of lockers at your store and charge for their use. Check with Jeff Gardner, The Laundry Doctor. He can provide you with a wealth of information about lockers. Consider:
Package lockers
Laundry/dry cleaning lockers
Self-Service Car Wash BayIf you have the space to install it, clients can wash their cars while waiting for their laundry to finish.
Car Vacuum StationsI see people in the parking lot clearing trash out of the pockets of their car doors. Installing a car vacuum station might be a great addition to helping them clean out their cars.
Pet Washing StationsPeople love their pets. The dog grooming business is estimated at about $8 billion in the US alone. Installing a pet washing station could be a great way to make additional revenue. Consider:
Donation BinSet up a donation bin in your store and sell the items online.
People bring in items
Pick out items that are of some value and in good condition
Have a team member take photos and list online to sell
Use Vendoo to list on multiple marketplaces at once to save time and increase reach to buyers
Take the other items in the donation bin to a nonprofit donation center and get the tax write off for your business
Sneaker CleaningYou can capitalize on the growing sneaker culture by offering in-store cleaning services for sneakers. We have found it a very fruitful untapped market.
Sneaker revenue in the US alone amounts to $86.58 billion. The market is expected to grow annually by 5.34%. (source)
I’ll be sharing how to launch a sneaker-cleaning service in upcoming issues.
Diversify!
Diversifying our revenue streams is important for emerging (small) businesses because it helps to spread out the risk.
We can’t rely solely on one source of income. If something unexpected happens (such as a recession, a major customer going out of business, or a natural disaster), the entire business could be in jeopardy. By having multiple sources of revenue, we are less likely to be seriously impacted by any one event.
This will provide stability and security, and help us grow and thrive over the long term.
Additionally, diversifying revenue streams can help us stay competitive, attract new clients, and increase profitability.
—---
TL;DR:
We are headed for a recession so multiple income streams are a must.
Consider these innovative and creative revenue stream ideas.
Diversify your revenue for a more stable business.
Til next week.Waleed Laundry Pirate 🏴☠️
I would love to hear your thoughts on this week’s topic– let me know in this issue’s survey below. And for more on the garment care business, connect with me on Youtube and Linkedin!
🧰 RESOURCES
🗞 IN THE NEWS
📆 EVENTS
❝ QUOTE OF THE WEEK
Socrates said, 'know thyself.' I say, 'know thy users.'-Joshua Brewer
🎤 WEEKLY WASHERS REVIEW
Selected 😁 Loved It and wrote
Reply