Coin Laundry Payment Systems
Paying to do your laundry used to be so simple. You put in the quarters and pressed start. Now there are many methods for payment in Laundromats and more are being developed at a lightning pace.
The location of your laundry will have some determination on the payment methods used. A Laundromat in downtown New York is going to have a different clientele than a small town in Kansas. They still have the same basic needs for a Laundromat but some areas are more used to credit and debit and never carry cash. I was in one of my Laundromats having a discussion about payment systems and mentioned card systems. A customer overheard us talking and said “If I can’t use cash I’ll be going someplace else”. How’s that for honest customer feedback!
But all that being said there are Laundromats in locations all over the country that run successfully with any of these systems and many owners would not change what they have.
Cash
Currently, and possibly always, is King. The denominations are changing as the prices rise but in the US the quarter is still the main method to make a coin operated washer start.
Many machines are being equipped for dollar coins to reduce the number of coins needed to start the machine and thereby reduce the amount of collections needed. As shown in another post I have had to modify my coin boxes to allow them to hold more quarters. It was the best, low cost, quick solution available.
Will dollar coins replace bills in the US like they have in many other countries? It may take awhile but it is probably inevitable. Canada has had $1 coins for over 20 years and has recently announced that it has stopped making pennies. Cash transactions are rounded up or down to the nearest nickel but debit and credit transactions are conducted at the exact amount.
Your customers will usually bring in bills and will need a change machine. As their confidence grows in your machines they amount of quarters customers bring in (and you have to take to the bank) reduces.
Tokens
Similar concept to using cash. It has the advantage of keeping the cash out of the public areas as well as being used in promotions and refunds. Coin acceptors are available that can handle quarters, dollars and tokens. There is an upfront cost to getting the tokens as you may want to have them custom made with your logo and information. The tokens will only work in your store (or stores). There is a replacement cost due to unused tokens but the customer paid you for them already.
Laundry Cards
These are specific to your store (s). Money is added through a Value Transfer Station that will accept cash, credit or debit. The amount of the wash or dry is removed from the card when each machine is started. There are some differences between systems that allow you to track and replace the value on lost cards if a customer has added their contact information which also allows you to monitor the activity of your customers and identify the large volume, frequent and long term customers.
Some stores have used the cards to control access to restrooms and allow After Hours access to the Laundromat.
Credit / Debit Cards
These are being accepted directly at the washers and dryers as well as adding value to the Laundry Cards. Some systems will still allow coins or tokens to be used as well. They can be added to a few machines at a time and usually connect through a secure, wireless router. This eliminates individual wiring of the machines to the central location and expanding the system requires little effort.
Kiosks
The washers and dryers are started from a central location and the total amount is paid in cash or by debit or credit card at that location. These are in addition to the normal coin acceptor on the machine so if there is a problem with the kiosk or system the machines can still be run with cash at each location.
Near Field Communication
Microchips in credit and debit cards and some smart phones transfer the amount of payment when it is in close proximity to the payment device on the washer or dryer. I was recently on a trip to Canada and found these are common on all credit card devices in stores and restaurants. The merchants I used stumbled a little when my US card had to be swiped.
The type of payment method you install will be based on your local area and the amount of investment you have available. This decision is not always given the attention it deserves. Changing payment systems is costly as each piece of equipment must be considered from the biggest washer to the vending and change machines. The right components installed initially may allow changes without complete replacement.
If you have or are purchasing an existing store that has a variety of machines from different manufacturers and years it may be difficult to convert everything to a particular system.
Other factors will include if you or your staff are comfortable emptying cash from the individual washers or if you want to keep all of the cash in a secure area.
Does your customer base use debit or credit cards?
Will you be offering a Drop Off Service where your attendants will need to start the same washers and dryers as the customers?
Integrated payment systems provide an almost unlimited amount of business monitoring and feedback. You will be able to determine the busiest times in your store, what machines are used the most and other information that will assist in future planning.
Additional features allow prices to be changed based on day of week and time of day so you can offer lower prices on slow days , traditionally Tuesday and Wednesday. This allows seniors and others with flexible time to be moved away from your busy times and be compensated for it.
Customers can also be given discounts or bonuses when they add value to their card. For example if they add $100 to their card $120 is put on. This secures your customer for an additional amount of time using your store and they receive a benefit.
One concern with this system is the operation of your store is dependent on the system operating. At an attended store you may be able to train your staff to reset and/ or troubleshoot the system but at an unattended store you will need to deal with it when it happens.
Cards and tokens do provide the benefit of allowing you to offer prizes and other benefits in an unattended store.
P.S. If you would like information on Blog system and how to use it in your business CLICK HERE
If you have any comments please post them below.
Ken
