The most common pricing mistake in the laundromat industry isn't charging too much. It's charging too little for too long.
Utility rates go up every year. Labor costs increase. Supply costs increase. If your vend prices haven't moved in two or three years, your margins have been shrinking by 3–5% annually while everything around you got more expensive.
When to raise prices
The right time to raise prices is when any of these are true:
- It's been more than 18 months since your last increase
- Your utility costs as a percentage of gross have increased by more than 2 points
- Minimum wage in your state went up
- Your competitors raised prices (you should have gone first)
- Your cash flow has decreased despite stable or increasing volume
The wrong time is never. Operators who avoid price increases out of fear end up with stores that are busy but unprofitable.
How much to raise
Small, regular increases beat large, infrequent ones. A $0.50 increase every 18 months is nearly invisible to customers. A $2.00 increase after five years of no changes feels like a shock — even though it's less money per year on average.
General guidelines by machine size:
- 20–25lb washers: $0.25–0.50 increase
- 40–50lb washers: $0.50–1.00 increase
- 60–80lb washers: $0.75–1.50 increase
- Dryers: Adjust time per quarter. Going from 8 minutes per quarter to 7 minutes is a ~12% effective increase that nobody notices.
The volume impact is smaller than you think
Most operators overestimate how much volume they'll lose. The data consistently shows:
- A 5–10% price increase typically results in 0–5% volume decrease
- Net revenue almost always increases even with some volume loss
- Volume usually recovers within 60–90 days as customers adjust
The customers you lose to a $0.50 increase were your least profitable customers anyway — they were choosing you purely on price and would leave for the next cheaper option regardless.
How to communicate it
Simple sign posted 2 weeks before the change: "Effective [date], vend prices will be updated to reflect increased operating costs. We appreciate your business."
That's it. No apology. No lengthy explanation. Customers understand that costs go up. They're paying more for everything else already.
One action this week
Model a price increase using the Vend Price Optimizer. Enter your current machine mix and prices, set proposed prices, and adjust the post-increase TPD conservatively. The tool shows you exactly how much revenue changes at different volume scenarios. Most operators are surprised how much room they have.