When you’re ready to open your first laundromat, conducting market research should be your first order of business. By analyzing data from your specific market, you can better understand which products and services are in demand and how your business can compete with neighboring laundromats. You may also be able to get a leg up on your competition by spotting upcoming problems in the industry and identifying sales opportunities. For best results, we recommend working with a distributor. Not only will your distributor provide you with the equipment and repair services you need, but they may supply you with a professional laundromat market analysis as well.
Laundromat Market Analysis
So what can you expect to find in a market analysis? Much of the data will come from the government, as they can provide a wealth of information regarding businesses, industries, and economic conditions. For example, you can learn about your target market through demographics:
- What is the population of your area?
- How much money does your target market make?
- Where do they live (apartments, houses, etc.)?
- Are they married?
- Do they have kids?
- How close do they live to your location?
- How much do they spend on laundry services?
- What percent of your target market do you need to show a profit?
In addition, you will learn about your competition, including their locations, pricing strategies, and services. You should also gauge general traffic for your location to ensure that there will be a healthy flow of potential customers passing by each day. If your location is near other stores (in a strip mall, for example), you may benefit from their traffic as well.
HOW TO USE A MARKET ANALYSIS
To fully realize the value of your investment and spot potential concerns before they arise, use the information within your laundromat market analysis wisely. The analysis will help you understand your role within your area’s market. For example, are you a high-price leader or a low-price leader? Will you offer special services that no other laundromats in the area provide?
In addition, assess the demographics to decide whether or not your business is likely to be successful. Look for the area’s population to be at least 25% renters, as renters are less likely to have access to washers and dryers at home. Ideally, renters will make up over 50% of the population. In addition, look for blue-collar workers (at least 35%, ideally 50%), a densely populated area, and a high number of people per household.
Finally, don’t forget to conduct some hands-on research. Drive around the neighborhood, view your location from various angles, look for nearby apartment complexes or trailer parks, and be sure to scout out your competition.
If you’re interested in opening a laundromat, check out Laundry Solutions Company, a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Since 1976, we have been providing exceptional sales support, laundry design services, commercial laundry equipment, and laundry equipment service and parts. To learn more about our products and services, please give us a call at 800-383-9274 or contact us online. We look forward to hearing from you!