Open Forum

Price increase for 2019

  • 1.  Price increase for 2019

    Posted 14 days ago
    Since the minimum wage went up today again, how many will increase prices to offset the loss of profits?
    Or do we eat another loss again this year....…

    McHale

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    John Mchale
    Store Owner/ Employee
    Queens New York
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  • 2.  RE: Price increase for 2019

    Posted 14 days ago
    Our attendants make over %33 more than our minimum wage but we still try to stay ahead of things and keep it that way. The answer is we never absorb any costs. Maybe on a short term basis  we will but this is a business. We try to treat our customers, employees and ourselves fairly at all times. When expenses go up, so do our prices. Anyone that doesn't approach things this way will eventually regret it.

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    Dave Menz
    Queen City Laundry Chain
    Cincinnati, OH
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  • 3.  RE: Price increase for 2019

    Posted 14 days ago
    $.50 scheduled for each machine in February.

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    Curt Harrington

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  • 4.  RE: Price increase for 2019

    Posted 14 days ago
    Edited by Larry Adamski 14 days ago
    Guys,

    I have reviewed my 2018 sales and expenses.  In keeping with my requirement that total payroll expense (wages and company paid taxes) cannot exceed 16% of gross sales; I find that payroll expenses can rise an additional $5,000 higher in 2019.  This is good news as it will allow me to raise employee wages without breaking the bank.

    As to raising prices this year, I am considering deducting 1 minute per dollar on all dryers but I have yet to schedule this price increase.  Such an increase would bring my 30 lb. dryers to 15 min/dollar and my 35 lb. dryers to 14 min/dollar.  These prices equal about 3.5 minutes/quarter for comparison.

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 5.  RE: Price increase for 2019

    Posted 14 days ago
    Showoff :)

    I wish I could charge those prices and have that labor ratio.

    Already did a price increase a month ago, a quarter per machine.  Got no pushback.  Didn't touch dryers.

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    Luigi
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  • 6.  RE: Price increase for 2019

    Posted 14 days ago
    Yea, Showoff,
    If I were to attempt something like that my goose would be cooked!

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    Curt Harrington

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  • 7.  RE: Price increase for 2019

    Posted 13 days ago
    Luigi,

    A 25 cent price increase today is exactly like a 3 cent price increase in the 1970s.  No laundromat did 3 cent price increases in the 1970s and no laundromat should bother with 25 cent price increases today either.  Now you know why you didn't get any pushback from your customers.

    Consider another price increase later this year so you can keep up with inflation and/or make some actual headway toward catching up with past years when your prices may have lagged behind national average prices.

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 8.  RE: Price increase for 2019

    Posted 13 days ago

    no laundromat should bother with 25 cent price increases today either. 
    Larry Adamski,  01-02-2019 16:38

    Serious question:  do you have any competition?  That sets a natural upper boundary.   Otherwise, I could take your advice and charge $100 per wash and only need ten customers per day.

    One can be a "price leader" and coax others upwards, but I'm not going to be the guy that's priced 40% more for the exact same Dexter machine, the laws of economics supply/demand/competition all rule where I am.

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    Luigi
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  • 9.  RE: Price increase for 2019

    Posted 13 days ago
    Edited by Larry Adamski 13 days ago
    Luigi,

    If I had stopped at just 40% higher than my largest competitor's Dexter 30 lb. washers ($2.75); my Huebsch 30 lb. washers would be $3.60.  But they're not.   My 30 lb. washers are $5.00 plus upcharges.

    When one sets his pricing according to what his competitors charge; he is only as smart as his dumbest competitor.  How can one achieve lofty goals while following someone with no goals?

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 10.  RE: Price increase for 2019

    Posted 13 days ago
    FYI minimum wage in NYC is now $15.00 an hour. I raised my wash and fold prices 25% in October, since then WDF is down 30%. Cheap customers.

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    Peter
    Store Owner
    Congers NY
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  • 11.  RE: Price increase for 2019

    Posted 13 days ago
    I have always found that the best time to raise prices is January 1 of the new year. Why? Because that is the time that the minimum wage goes into effect  and most people are aware of it.  If they are not and they question the price increase it's very easy to remind them that because of this involuntary increase in wages it must be offset by a small increase in prices to the customer.
    I also find it interesting when people question the price increase in May and June they Obviously are not regular customers. That's when I remind them that the price increase was done six months ago.

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    JULES ROGOFF
    Potential Investor
    San Luis Obispo CA
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  • 12.  RE: Price increase for 2019

    Posted 13 days ago
    We recently executed a 25 cent hike on all washers due to water/sewer bill skyrocketing (not due to shortage of water, but due to political diktats).  No complaints from customers.

    Now MW jumped to $11 /hr here in California ($12 for large employers).  On its way to $15 in a few short yrs.  Result is wages of many customers (including those already above MW) will rise, making a small price hike for washers more affordable.

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    R Anderson
    Store Owner/ Employee
    Camarillo CA
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  • 13.  RE: Price increase for 2019

    Posted 13 days ago
    I have price increases planned to match the increased minimum wage which has been scheduled every June 1 for the next 3 years. My 60 lb. washers went up to $12.00 last year and will go up $1.00 every June 1 until 2021 when they will be $15.00, eclipsing the minimum wage. #Makinglifeaffordable




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    Richard Heighington
    Potential Divestor
    B.C. Canada
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  • 14.  RE: Price increase for 2019

    Posted 12 days ago
    Guys,
    Let us talk about the elephant in the room.  It's great we are raising wages to "Make Life Affordable"  LOL.  But what do we do with the competitors whom are paying employees off the book?  Or Family members who are working off the books.  They are not adhering to minimum wage standards and nothing is being done to curb it....
    RP

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    Richard Porqueddu
    Store Owner/ Employee
    Sayville Laundromat, Inc.
    Middle Island NY
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  • 15.  RE: Price increase for 2019

    Posted 12 days ago
    Edited by Larry Adamski 12 days ago
    Richard,

    You bring up a good point.

    I don't think family members come under minimum wage laws.  The state doesn't care if business owners and their families can eat or not.  Nobody cares about business owners thus no safety net or minimum anything.

    As to paying off the books - totally illegal.  A call to the state department of labor could bring big problems upon such a businessman.

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    Larry Adamski
    Muskegon Laundromat
    Spring Lake MI
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  • 16.  RE: Price increase for 2019

    Posted 12 days ago
    I've been too busy renovating the house lately and eating a lot of fast food.  Has anyone checked the price of a large fry and double burger lately?  More than most folks 60 pound wash, but people still pay for it.

    My favorite is when someone texts me to tell me that they lost a dollar.  I tell them that I'll be there soon to refund them, but they tell me not to worry about it, it's just a dollar!

    You guys must have some serious competition if a quarter raise worries you.

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    Chris Mallam
    Norfolk VA
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  • 17.  RE: Price increase for 2019

    Posted 10 days ago
    Okay I raised my 30lb and 40lb a quarter .25  and 60lb 50cent .50
    Now I'm .50 more expensive than my competitors

    Let's see what happens.....Yeah a quarter is huge when your surrounded by MATS on all sides

    McHale

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    John Mchale
    Store Owner/ Employee
    Queens New York
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  • 18.  RE: Price increase for 2019

    Posted 12 days ago
    "As to paying off the books - totally illegal.  A call to the state department of labor could bring big problems upon such a businessman."
    Here in California, from my past experience, the Labor Department will not investigate any complaint that is not initiated by the employee in question. This prevents competitors from making false claims just to harass their competitors in their market area.

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    JULES ROGOFF
    Potential Investor
    San Luis Obispo CA
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  • 19.  RE: Price increase for 2019

    Posted 12 days ago
    Mr. Adamski,

    I think you are putting it a bit too mildly. ..................."The state doesn't care if business owners and their families can eat or not."

    Under many levels of government, the small business owner is treated either as, at best, an annoyance or if you are in the wrong kind of business, something which needs to be controlled or replaced with a "public entity and/or a publicly financed non-profit".

    If my memory serves me correctly, it wasn't all that long ago that the current Pope stated that clean clothes was a "human right" (didn't the Vatican open a free laundry?). Its not that far of a stretch to see progressive US politicians supporting the same position.

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    LAURA HAUGLAND
    Potential Investor
    Duluth MN
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  • 20.  RE: Price increase for 2019

    Posted 10 days ago
    Okay I raised my 30lb and 40lb a quarter .25 and 60lb 50cent .50
    Now I'm .50 more expensive than my competitors

    Let's see what happens.....Yeah a quarter is huge when your surrounded by MATS on all sides

    McHale

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    John Mchale
    Store Owner/ Employee
    Queens New York
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  • 21.  RE: Price increase for 2019

    Posted 10 days ago
    Richard,
    Are you serious with these prices...…...do you not have any competition?
    I'm sweating a .25 and .50 increase right now.....Arggggg

    Regards,

    McHale

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    John Mchale
    Store Owner/ Employee
    Queens New York
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