Do you already own a laundry business or a laundromat and are wondering how to expand your customer base? Or are you planning to get into this business and start a new laundromat? Either way, you will need to know precisely who your target market is and who is not.
Not everyone needs access to a laundromat or an external laundry service. Some people will use a laundry service occasionally, others will use it regularly and still others won’t use it at all. So, before you set up your business you will need to be sure that you can attract enough clients to run your laundry business profitably.
In this article, we will review the target market for a laundry business by analyzing the reasons why someone – either an individual or a business – would need the services of a laundry. And then we will review the factors that influence customers’ decision to select one laundry service over another.
The Target Market for a Laundry Business: Who needs a laundry?
One of the best ways to segment the target market for a laundry business is by understanding why someone needs to send their clothes to a laundry or take them to a laundromat.
Based on this segmentation criterion, the target market for a laundry business can be split up into the following segments:
- People who need to wash in bulk
- People who need expensive clothes washed safely
- People who need extremely dirty clothes washed properly
- People who need delicate items washed
- People with no time to wash clothes themselves
- People without a washing machine at home
- Businesses that need laundry services (Hotels, Restaurants, Hospitals, etc)
Let’s take a look at each of these target market segments in turn.
1. People Who Need to Wash in Bulk
This segment of the target market for a laundry business is made up of people who have a large number of clothes to wash on a regular basis. Typically, these people are either large families or people who have to wear uniforms for work (e.g. nurses, police officers, chefs, etc.).
People in this market segment typically need to wash their clothes more often than the average person and they usually need to wash larger loads each time. This means they cannot easily wash at home and so are usually willing to pay more for a laundry service that can accommodate their needs.
2. People Who Need Expensive Clothes Washed Safely
If someone has an expensive shirt or an evening gown, they may not risk putting it in the washing machine at home. Instead, they will take it to a laundry service that can hand-wash the item and treat it with care.
People who need their expensive clothes washed safely are typically willing to pay more for this service as they want to be sure their clothes will not be damaged. They may also be willing to pay for extras, such as pick-up and delivery services so that they don’t have to go out of their way to use the laundry service.
3. People Who Need Extremely Dirty Clothes Washed Properly
This segment of the target market for a laundry business includes people who tend to get their clothes dirty often. Typically, this includes manual laborers or people who work in dirty environments (e.g. construction workers, mechanics, factory workers, etc.).
It can also include a group of kids who have just returned from a scouting expedition or a group of athletes who have just completed a competition.
People who need to wash extremely dirty clothes usually need a laundry service that can handle large loads of heavy, soiled items. They may also need special services, such as stain removal.
4. People who need delicate items washed
Delicate items like silk blouses, wool sweaters, and lace curtains need to be washed by hand or on a delicate cycle to prevent them from being damaged. People who have these items usually cannot wash them at home and so they need to take them to a laundry service.
People in this market segment are typically willing to pay a bit more for the peace of mind that their delicate items will be washed properly. Just as with expensive clothes (which these delicate items will likely be too), people sending delicate clothes to the laundry may also be willing (and are able) to pay extra for home pick-up and delivery. Consider offering this as an extra to earn more from this type of customer.
5. People with no time to wash clothes themselves
This segment of the target market for a laundry business is made up of busy people who simply do not have the time to wash their clothes themselves. They usually work long hours, take care of children, and manage their households.
People in this market segment often need laundry services that offer quick turnaround times so that they can get their clothes back as soon as possible. They are also likely to need the laundry service on weekends rather than during the week.
To target this market segment you could offer long-term contracts where you agree to wash a certain number of items per week or per month for a discounted rate. This will keep these customers locked in to ensure a steady flow of business to your laundromat.
6. People without a washing machine at home
This market segment is made up of people who live in small apartments or homes, such as studio apartments or one-bedroom homes. They often do not have the space to store a washing machine and so need to use a laundromat.
People in this market segment may also live in urban areas and may need a laundry service within walking distance of their homes. They may also be willing to pay a bit more for convenience.
To target this market segment you could offer discounts for people who live close by or who use your laundry service regularly. You could also offer loyalty rewards for customers who refer new customers to your laundromat.
7. Businesses that need laundry services
And finally, we come to business customers. Many businesses need to outsource commercial laundry.
Hotels that offer laundry services to their guests or need bedsheets and towels washed regularly will make deals with local laundry companies. Restaurants that need tablecloths and napkins washed, or dry cleaners that need help with large orders will also need external laundry services.
Businesses also have to comply with certain regulations and so they need to use a laundromat that is certified to handle commercial laundry. For example, hospitals that need medical-grade laundry services that follow CDC and EPA regulations fall into this market segment.
Businesses will also need a service that can pick up and deliver their laundry on a regular basis. By using a commercial laundry, businesses can save on real estate costs by not having to build and maintain their own laundry facilities. This also means their staff is free to focus on their core business and on serving their own customers. Make sure you make this argument while trying to close a deal with a business.
To target this market segment, you could offer discounts for large orders or for businesses that sign long-term or annual contracts.
What do customers look for in a laundromat?
Once customers decide to send or take their clothes to a laundry business or a laundromat, there are several factors they consider while selecting one laundry service over another.
The most important of these factors are:
- Quality of the wash
- Cleanliness
- Safety
- Price
- Location
- Turnaround time
Let’s look at each of these.
Quality of the wash
Customers want to know that their clothes will be washed properly, especially the expensive and delicate items. They want to know that the laundromat uses high-quality washing machines and detergents.
To target this market segment, you could offer a money-back guarantee for any customers who are not satisfied with the quality of the wash. You could also offer free laundry for a week for any new customers who sign up.
Cleanliness
Customers also expect laundromats to be clean. This means the floors, the washing machines, and the dryers should all be clean. The laundry should also have a pleasant smell.
Many customers expect laundry businesses to clean washing machines between each use. They will also expect a regular schedule for the cleaning of floors and dryers.
Safety
Especially for laundromats located in dense urban areas (where they are most likely needed), safety is a major concern for customers. They want to know that their clothes will not be stolen and that the laundromat is well lit and secure. Personal safety is also a concern, especially for women who may be using the laundromat late at night.
You can target this segment of the market by advertising that your laundromats are well lit and have security cameras. You may also want to consider having someone on staff at all times or at least during late evenings and nights, though this can have a severe impact on your profitability.
Price
Naturally, price is always a concern for customers. Everyone wants the best value at the least cost. You can be sure that your customers will compare the prices at your laundromat with others in the neighborhood. Some customers will also be willing to drive a bit further for a cheaper laundromat.
You can target the price-sensitive segment of the market for a laundry business by offering discounts or coupons. You could also offer a loyalty program where customers earn points that they can redeem for free laundry services.
Location
Finally, customers will also consider the location of the laundromat. They will always prefer a laundromat that is close to their home or business and that is easy to get to. This will be especially important for customers who will use the laundromat after work and late in the evenings.
You can target this segment of the market by opening laundromats in convenient locations. You may also want to offer delivery services for businesses or customers who live further away.
Turnaround time
Customers also want to know that their laundry will be ready when they need it. They do not want to have to wait a long time for their clothes to be washed and dried.
You could target these customers by offering express services for an additional fee. You could also offer discounts for customers who are willing to wait longer for their laundry to be done.
Summary
The target market for a laundry business ranges from people who need to wash clothes in bulk to businesses like hotels, restaurants, and hospitals that need external laundry services.
The market also includes people who occasionally need to get some of their clothes washed professionally. This could include expensive clothes or delicate items which need to be hand-washed or need to be washed with special washing machines. It could also include clothes that are extremely dirty and cannot be adequately washed in a washing machine at home.
When selecting a laundromat customers look, most of all, at the quality of the wash and the cleanliness of the premises. Other factors which affect their decision to choose one laundromat over another are safety, the price, the location of the laundromat, and how long it takes for them to get their laundry cleaned and dried.
If you are planning to attract new customers to your laundromat or are planning to start a laundry business of your own, be sure that you are clear about who your target market is and what it is that they look for while selecting a laundry service.
