If you’re wondering how to make more from your laundromat and offer more convenience and flexibility to your customers, upgrading payment systems of your laundromat can be a great way to do so. Despite the self-serve laundry industry struggling with the transition to digital payments for over two decades, with most laundromat payment systems consisting of quarters, cash may not be the best laundromat payment systems option anymore.
As most people only carry a little cash today, cash may not be as practical for your laundromat as it once was.
Today’s consumers are accustomed to more convenient, electronic ways of paying, like chip cards, mobile wallets, and other contactless methods, and expect to use them everywhere. In this article, we address common inquiries among merchants, such as how to make more from your laundromat, why digital is the future for laundromat payment systems that can increase profits at your laundromat, what specific steps you can take to increase profits at your laundromat, and how to choose the best merchant account provider when upgrading laundromat payment systems.
Why consider upgrading payment systems for your laundromat?
Cash can be inconvenient for laundromat owners, as it presents several problems. Paper bills and quarters lack most of the tracking capabilities that other forms of payment provide, leaving laundromats exposed to a heightened risk of employee theft.
Additionally, having more cash on hand increases laundromats’ exposure to external threats such as robberies in-store or while making deposits. On the other hand, electronic payments can insulate against unforeseen circumstances such as expensive bill changer breakdowns or cash shortages. These are all very negative traits as you’re considering how to make more from your laundromat.
It’s never been easier to upgrade laundromat payment systems with technologies that enhance the customer experience, drive down overhead costs, and increase profits at your laundromat. Upgrading laundromat payment systems to offering mobile payments and implementing self-service kiosks can all help increase revenue and attract more customers.
Furthermore, by partnering with a suitable payment processor, more options are available to increase profits at your laundromat. For example, implementing a loyalty program can incentivize repeat business and increase customer retention.
Specific steps you can take to increase profits at your laundromat
In today’s fast-paced digital world, there may be better options for laundromat payment systems. The self-serve laundry industry has struggled with the transition to digital payments for over two decades, with most laundromat payment systems still consisting of quarters and cash. However, as most people only carry a little cash today and prefer more convenient and electronic ways of paying, it’s worth considering the benefits of upgrading laundromat payment systems.
This can not only offer more convenience and flexibility to customers but also increase profits for the laundromat business. There are several ways that upgrading your laundromat payment systems can help you increase profits for your laundromat. Here are a few examples:
Implementing card payment options can help increase profits at your laundromat. By accepting credit and debit cards, laundromats can attract customers who may need more cash or prefer the convenience of using a card. This can increase the number of customers and is one of the fastest ways on [MF1] how to make more from your laundromat.
Another option to upgrade laundromat payment systems is to offer mobile payments. We are currently experiencing a demographic paradigm shift as almost all humans morph into greater technology users due to smartphones. As more and more consumers wish to use their smartphones in every facet of their lives, paying with smartphones will become a daily part of life.
It will be a headache for businesses that fail to accept that and adapt. Businesses offering mobile payment options will win customers who primarily wish to use their smartphones to pay for their laundry. This can save them time and increase the convenience factor, leading to repeat customers and more business.
Another option is to do away with cash by automating the coin-op process. By upgrading the laundromat payment system from coin-op to accept credit and debit cards or mobile payments, laundromats can reduce the amount of cash on hand, lowering the risk of theft and increasing security. Additionally, newer coin-op machines are often more reliable and require less maintenance.
Another strategy on how to make more from your laundromat is to implement a Loyalty program. Laundromats can incentivize repeat business and increase customer retention by having a loyalty program. Using a thoughtful loyalty program can significantly increase profits at your laundromat. It is a cost-effective strategy that can likely help retain customers. It is also a strategy that the right merchant service provider can help implement.
It’s important to note that it’s not just the upgrading to the new system but also the proper integration of these systems with the existing infrastructures. The right pricing and marketing strategy will help to increase profits at your laundromat.
Ultimately, the steps you should take to increase profits at your laundromat will depend on the business’s unique circumstances, such as its location, target market, and current payment systems. A careful analysis of the business’s needs and goals can help identify the most effective strategies on how to make more from your laundromat.
Demographic shifts
According to the last American Express Digital Payments Trendex report[MF1] , nearly 80% of consumers generally use P2P. More than 80% of consumers [MF2] are comfortable paying without cash. The trend towards noncash is so systemic that among a younger cohort of consumers, also considered to be digital natives, such as millennials, only one-third prefer to shop in stores vs. online[MF3] .
Research shows [MF4] that purchasing with a credit card over a debit card can impact spending preferences. The ability to use a credit card vs. a debit enhances a person’s propensity to spend.
According to Pew Research, as of 2022, 41% of Americans don’t use cash[MF5] . According to a report by Experian, one in ten millennial consumers doesn’t carry any cash at all. This is no longer a question of how to make more from your laundromat or how to increase profits at your laundromat. Business owners need to upgrade their laundromat payment systems to ensure their businesses will survive.
How to choose a merchant Service provider to upgrade laundromat payment systems
Security – Security is critical when setting up laundromat payment systems. Credit card information and other sensitive financial data must be protected to prevent fraud and comply with laws and regulations. It is recommended to use a payment processor that is PCI DSS (Payment Card Industry Data Security Standard) compliant, which is a set of security standards created by major credit card companies to ensure that merchants who accept credit card payments maintain a secure environment.
Customer Support – the customer experience is critical when setting up payment processing for a laundromat. Payment processing is a crucial aspect of any business, and it’s essential to have support in case any issues arise. Good customer support can help resolve technical difficulties and answer questions quickly, which can minimize disruptions to your laundromat’s operations.
To gauge [MF5] how to make more from your laundromat, ensure that the merchant service provider you partner with to set up your laundromat payment systems has 24/7 US-based support that can help with technical complaints but also disputes related to payments or transactions.
Customer-Centric Partner – In setting up a laundromat payment system, understand if the merchant service provider adopts a valued partner mindset. Does the payment processor actively listen to your needs, identify challenges and understand your business goals and objectives? You need to ensure that the services offered align with how to make more from your laundromat, resulting in a seamless and frictionless experience.
Transparency – This is extremely important when setting up your laundromat payment system. It refers to providing clear and accessible information about the fees, charges, and policies associated with payment processing. This can include information on transaction fees, chargeback fees, refund policies, whether contracts are month-to-month or for a fixed term, the length of the agreement, and if there are any fees associated with early termination of services.
Transparency is essential for several reasons. It will help build trust by clearly communicating the payment processing terms and conditions, making you less likely to be surprised by unexpected fees or charges. Also, it may help avoid future disputes and complaints by providing precise and accessible information by avoiding any misunderstandings upon signing up for a merchant account.
How much will it cost to upgrade laundromat payment systems?
The question of what the average fees for credit card processing is a common concern among merchants. To understand these fees, it is essential first to know how interchange fees work. The major credit card networks (Amex, Mastercard, and Visa) all publish their rates online.
However, the final rate that is applied at the time of a transaction can depend on a variety of factors, such as the type of card being used (credit or debit), the category of the card (corporate, fleet, or rewards, among others), the method of payment (swiped, keyed in or online), the merchant’s security measures, and the nature of the goods or services being purchased. These variables can make it challenging to determine the average fee for credit card processing.
Upgrading laundromat payment systems involves various costs; we will focus specifically on the costs related to payment processing. Payment processing typically consists of the following three types of fees:
- Interchange fee – the fee charged by the issuing bank, which is the bank that issued the credit or debit card used in the transaction. For example, if a customer pays using a Bank of America-issued Mastercard to pay for a purchase, Bank of America will receive this fee. It is a fixed rate and cannot be negotiated and is paid to the issuing bank.
- Assessment fee – the fee paid to the payment network, such as Mastercard, Visa, or Amex. Using the above example, Mastercard will receive this fee. This fee is also fixed and cannot be negotiated and paid to Mastercard or the card network used.
- Merchant services fee – The fee charged by an acquiring bank, the bank setting up your laundromat payment system. This fee is open for negotiation. The merchant service fee, also referred to as the merchant account fee or the payment processing fee, includes individual transaction costs, a monthly fee (depending on the service provider), and any expenses associated with the merchant’s use of point-of-sale terminals (depending on the service provider and the agreement terms of the equipment), among others.
There can also be an additional expense if your laundromat payment systems upgrade includes a payment gateway in case you also decide to set up a mobile payment and app-based payment mechanism. Those prices can vary based on whether you work with a payment gateway vendor directly or through your merchant account provider, who may offer a more competitive rate for the same product because of channel partnerships set up with vendors.
Conclusion
Upgrading laundromat payment systems can be a valuable way to increase profits for your laundromat business. By offering more convenient, electronic payment options like chip cards, mobile wallets, and contactless methods, laundromats can attract more customers and reduce the risks and costs associated with handling cash. Implementing specific steps such as card payment options, mobile payments, and automating the coin-op process can also further increase profits.
Business owners can also consider partnering with a suitable payment processor to take advantage of additional options such as loyalty programs. Overall, it’s essential to consider the customer experience, costs and security when thinking of how to make more from laundromats, and upgrading laundromat payment systems is a significant step toward achieving that.
[MF1]https://network.americanexpress.com/globalnetwork/dam/jcr:933b52e4-7b41-40e2-995c-3691cc1efd90/Amex%20Digital%20Trendex%202021%20Digital%20Payments%20Edition.pdf
[MF2]https://www.frbsf.org/cash/publications/fed-notes/2019/june/2019-findings-from-the-diary-of-consumer-payment-choice/#:~:text=Individuals%20aged%2018%20to%2025,by%20two%20payments%20per%20month.
Figure 7
[MF3]https://www.statista.com/statistics/242512/online-retail-visitors-in-the-us-by-age-group/
[MF4]https://digitalcommons.unomaha.edu/cgi/viewcontent.cgi?article=1000&context=marketingfacproc
[MF5]https://www.weforum.org/agenda/2022/10/americans-cashless-economy-research/
