David Shulick has a law degree along with extensive business, financial, and real estate experience – particularly in the vended laundry space. In the following article, David Shulick discusses how vended laundry business models can expand into commercial laundry services, what equipment is needed, and how this expansion can maximize profits while sticking with the current infrastructure.
Vended laundry businesses often have the means and equipment needed to significantly increase their profits, yet the variability and uncertainty of steady customers limits their success. By expanding into commercial laundry services, vended laundries can maximize their equipment to guarantee that profits roll in throughout the day, week, and month according to David Shulick.
For vended laundries to successfully expand into the commercial market, though, they must be willing to designate specific areas of their property to commercial business, offer end-to-end washing, drying, and cleaning, as well as invest in a flatwork iron. In time, David Shulick says a business can then expand its operations to establish a commercial cleaning plant.
Surplus of Equipment but Lack of Employees
David Shulick says that compared to other business models, the vended laundry model is unique in that store owners already own the equipment needed to operate their business but equipment sits unused for roughly 75% of the time. The other 25% of the time, the machines are used by customers who generally do not return on a regular basis.
The inconsistency of customer traffic means that vended laundries have to charge higher prices per load to make up for the low volume of laundry processed. To overcome these setbacks, laundry owners should invest in new equipment and expand into the commercial laundry sector to serve other businesses, such as hotels, restaurants, and other public establishments says David Shulick.
By expanding into this market, vended laundries can take advantage of their existing equipment and infrastructure to provide a much-needed service to these businesses.
Commercial Laundry Services Start with Wash/Dry/Fold/Deliver
The first step to starting a commercial laundry service is to offer a wash, dry, and fold service. This is a service where businesses bring in their soiled linens and clothing and the laundry business washes, dries, and folds them. David Shulick says that this is a popular service because it’s generally low-cost and in high demand, especially within the hospitality industry.
Most vended laundry services already offer some form of wash/dry/fold but to stand out from their competition, businesses can invest further by offering a bespoke delivery service. This way, hotels or restaurants can simply drop off their linens and have them returned without added hassle explains David Shulick.
Businesses Must Separate Spaces for Both Vended and Commercial Use
In order for a vended laundry service to successfully transfer into the commercial laundry sector, it must set aside designated space for its commercial operations. This can be a separate room or an area within the store that is sectioned off from the rest of the store. This space should have its own entrance and be large enough to store commercial-sized washing machines, drying machines, and an ironing station.
By creating a designated space for their commercial operations, businesses can avoid potential conflicts between their vended and commercial customers. Without these designated areas, walk-in customers could mistake commercial linens for their own laundry, causing a hotel or restaurant to lose its necessary property explains David Shulick.
Invest in a Flatwork Iron for a Professional Finish
A flatwork iron is a piece of laundry equipment that is used to press sheets, tablecloths, and other linens. This is a vital piece of equipment for any business that wants to offer a professional finish to its commercial laundry service. While most vended laundry businesses do not have a flatwork iron, they can be easily purchased second-hand or rented from a laundry equipment supplier.
By investing in a flatwork iron, businesses can offer a higher quality service to their commercial customers and speed up their operations by reducing the amount of time it takes to process orders. Irons quickly pay for themselves, making them an almost-necessary investment.
Expand Operations to Include a Commercial Cleaning Plant
Once a vended laundry business has established itself in the commercial market, it can then expand its operations to include a commercial cleaning plant. This is a facility that is used to clean larger items such as rugs, curtains, and upholstery.
To start a commercial cleaning plant, businesses will need to invest in a few key pieces of equipment, such as an extractor, a rotary washer, and a tumbler dryer. These pieces of equipment can be an upfront expense, but they are essential for businesses that want to offer a complete commercial laundry service.
The Bottom Line
Overall, expanding a vended laundry business into the commercial market is a great way to maximize profits and take advantage of existing infrastructure. By offering wash/dry/fold services and investing in a flatwork iron, businesses can provide a high-quality service to their commercial customers. In time, businesses can expand their operations to include a commercial cleaning plant to further increase profits.
