CLA Connect Open Forum

Topic: Drop in sales

1.  Drop in sales

Posted 7 days ago

Last month was my largest revenue month in the last 12 months.  This month sales have dropped by about 25%.  Does anyone else ever see volatile sales like this and what have you attributed the reason?  Granted, summers can be slow but to go from steady increases to a drop like this is perplexing.  Still have 1/3rd of the month remaining so there is time to make up ground.

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Sean Doran
Store Owner/ Employee
CA
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2.  RE: Drop in sales

Posted 7 days ago
What is surprising is the fact that you did well last summer. When people are wearing T shirts and shorts there is not a whole lot to wash. When the coats and blankets are removed from storage just before school starts you will be back to normal.

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Curt Harrington

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3.  RE: Drop in sales

Posted 7 days ago

Thats a good point.  What I should compare it to is the year over year sales.  There is defiantly a drop in the the large washer sales which supports your comment re: bulky items.

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Sean Doran
Store Owner/ Employee
CA
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4.  RE: Drop in sales

Posted 6 days ago
How experienced are you?

is this your first year or two?

the worst thing would be a new mat, keep yours ears open.

bad weather? Plant layoffs? Welfare cheque day fell into

the last day of the previous month?

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MICHAEL SAYER
Store Owner/ Employee
DORVAL QC
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5.  RE: Drop in sales

Posted 6 days ago
We have periodic factor that will be reflected in revenue.  A region of our area can have basement flooding.  While not often it defiantly shows increasing revenue when 'everything' as to be washed.  Can last a week or two and usually new customers.

Early summer starts areduction as people move from pants and long sleeved shirts to summer ware (T's and shorts). Movement to smaller washers.  This is also the time I start to adjust pricing starting with the larger washers.  People tend to notice less as they still spend less on their visit.

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Timothy Foster
Multi-Store Owner/ Employee
Toledo
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6.  RE: Drop in sales

Posted 6 days ago

In business for 1 year.  Sales have been increasing steadily month over month.

I do track monthly sales but I am more focused on weekly sales and the resulting daily average over that period.  So in essence I am really tracking the daily sales and I have daily min and max target I want to achieve.  This is based on an annual target.  Some weeks the daily rate could be 30% higher than the previous week.  The first 2 weeks of June were below my low end target and the third week does not look much better.  I am used to some weeks being lower but not for a three week period.

I have not seen any new mats pop up at least in the immediate area. Guess I will attribute it to summer slow down.  I don't see as many customers coming in with multiple page bags of clothes anymore.

Any ideas on how to grab more business from the market over the summer?  Has anyone ever placed flyers on car windows? (in a competitors strip mall)  Kinda dirty pool.  What about the sign twirlers on the street corner over the weekend offering a free dry?


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Sean Doran
Store Owner/ Employee
CA
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7.  RE: Drop in sales

Posted 6 days ago
Sean,

Hard to say what caused it but a 25% month over month drop in sales is a big drop.  I may be that one of your competitors has grown tired of you taking his customers and he decided to fight back in some effective way.  An experienced operator can have a lot of tricks up his sleeve.  If I were you, I'd be planning a recon mission to each of my competitor's stores.

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Larry Adamski
Muskegon Laundromat
Spring Lake MI
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8.  RE: Drop in sales

Posted 6 days ago
^^^ good advice right there. Go do some recon work & confirm its just something temporary as opposed 2 you going on a price or customer war with a competitor.

 My numbers remain solid & far better to when I 1st started.

 As a new owner it's good to track your numbers but never let spreadsheets & metrics take the place or time needed to assess what your competition is doing.

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Juan
Store Owner/ Employee
Cocoa FL
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9.  RE: Drop in sales

Posted 6 days ago
After read your post, I check on my record, it is scary if look up by month, the gross vary from month to month by max 18% up and down, but the yearly avg is always up not down.
So the change may just temporary, if the trench continue to next month or so, then worry, by now, just relax and continue improve your service, keep your equipment in good working shape. Wait for 12 more days to report back to see.

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Phu Tran
Store Owner/ Employee
Garland TX
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10.  RE: Drop in sales

Posted 6 days ago
You are not alone.

May retail sales had their largest drop in 16 months.

Weak U.S. retail sales, consumer prices put spotlight on Fed

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Robert Maes
Store Owner/ Employee
Express Laundry Texas
Houston TX
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11.  RE: Drop in sales

Posted 6 days ago

Spoke to local some people today and they indicated a drop like this is normal in our part of the county.  Less clothes, less blankets and less frequent.  I have heard this before but did not expect it to be this abrupt.

I'm going to focus on the year over year sales.  But will report back at the end of the month.


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Sean Doran
Store Owner/ Employee
CA
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12.  RE: Drop in sales

Posted 5 days ago
Sean;

Perhaps those 25% of yours decided to go on vacation to my area and are washing in my mats. Thus would also explained why I am loving the increase. Not everyone wants to visit or stay in California.

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Deward Stout
Store Owner/ Employee
Hurricane Laundromat & Storage
Hurricane UT
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13.  RE: Drop in sales

Posted 5 days ago
Sean:  Not sure where you are in CA.  We are in FarNorCal enjoying some 110 degree weather this week (it's a dry heat).  Summertime is a slower time in general, but it will go up and down in our area depending on specific weather etc.

I would concentrate on the year over year and increasing the business in every season or quarter regardless of weather.

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Les Monthei
Potential Investor
Redding CA
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14.  RE: Drop in sales

Posted 4 days ago
Deward,

Not sure if that was a dig on the great state of CA or you were just stating facts.  I always tell people that CA would be a great place to live if it wasn't for the politicians, high taxes, and too many people.  But we have the Bullet train coming so that will certainly improve things.  Can't wait to see the train while I am flying over at 30,000 feet.

Been to UTAH! many times and enjoyed every bit of it.

Les,  agreed!  So long as I am above prior year it's going in the right direction.  My initial analysis is showing that large washer sales are dropping while tops, 20's are increasing.  30's and 40's are about the same.

Curious if anyone has added anything in their mat to capture additional sales other that the typical, WDF, vending, ATM, Games?  I thought about a dog wash station.  Trying to look at the mat with a sales per sq.ft.  Or maybe an car vacuum.  The back of the store has parking next to the building.  If people have 60 minutes to burn they could productive.

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Sean Doran
Store Owner/ Employee
CA
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15.  RE: Drop in sales

Posted 4 days ago


"Curious if anyone has added anything in their mat to capture additional sales other that the typical, WDF, vending, ATM, Games?  I thought about a dog wash station.  Trying to look at the mat with a sales per sq.ft.  Or maybe an car vacuum.  The back of the store has parking next to the building.  If people have 60 minutes to burn they could productive."

We added a dog wash, very nice with rod iron and fancy tile.  It brings in some extra money, but the cost that was unexpected was the hit to our search engine optimization.  It confuses Google to have more than one business at the same address and if Google gets confused, it lowers your search ranking because it'd rather return results it is 100% sure about.  If you add a revenue generator, I'd make sure it doesn't appear as a separate business, unless you have more than one address you can use.

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Matthew Simmons
Laundry Operator and
Wash & Fold Software Consultant
www.CurbsideLaundries.com
(562) 533-0053
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16.  RE: Drop in sales

Posted 4 days ago
Take a look at U-Haul

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KLASSY KLEAN
Store Owner/ Employee
RIVERDALE GA
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17.  RE: Drop in sales

Posted 4 days ago
Sean...

In our area, the bulk of the grade school and middle school kids have their last day of school tomorrow (previous snow day closures added some days to the end of the school year).
Also, the price of gas is lower here than it has been in recent summers. Therefore, I'm expecting less business this particular summer as people can finally afford to take road trips again with the kids. Some will leave the day after the kids are set free.
Chances are all their clothes will be dirty when they get back. ;)

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Ann Whitehead
Store Owner/ Employee
Bubbles Laundry
Everett WA
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18.  RE: Drop in sales

Posted 3 days ago
Its that time of year.

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[Fxr] Dave]
Store Owner/ Employee

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19.  RE: Drop in sales

Posted 2 days ago
I surmise this is when it helps to have a mat in one of the number one tourist destinations.  :-)

 Then in the winter I get snowbirds.  Steady & reliable is good

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Juan
Store Owner/ Employee
Cocoa FL
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