If you are a new laundromat owner, maybe you haven’t made the connection yet between sales and profits. If sales are up, you would assume that your profit would be as well. Your business's profits are a reflection of your performance.
If sales are up but profits are down it's time for a serious look at what's going on in your business. Still searching for commercial Maytag dealers in Charleston, SC? Stop wasting time and call the best Speed Queen and Continental dealers in North Carolina. Call us today at T & L for big savings.
Why Sales Do Not Equal Profits
Ignoring this problem or assuming that it will correct itself the next year can spell big trouble - not just for your bottom line. In a healthy and growing business your revenue needs to increase by 2 percent every year to maintain a profit in your coin-op. The big question begins to loom - why are profits down?
Chances are when you break open the books you will be able to find the answers to that question.
Staffing can be the source of major expenses for a laundromat which relies on its staff to be present and well trained. High staff turnover - training costs, uniform costs, help wanted advertising costs - can steadily increase your expenses in ways that you may not have anticipated or realized throughout the year.
Increases in taxes and utility fees are another place where coin-op owners find themselves spending additional money every year. If utility fees are the concern, call your sales representative at T & L Laundry equipment to see about having older equipment replaced. Have your staff check for leaks around your equipment and your facility. Consider lowering your hot water temperature to the manufacturer's minimum standard and encouraging customers to choose the right machine for their load size. See our previous blog post about managing water at your facility to help keep these costs in check.
Unexpected equipment repairs can also eat into your profits. Having machines out of service for long periods of time can keep your customers from coming back - cutting into your profits significantly. Keep your machines serviced and in good working order.
Old or outdated machines are not energy efficient and can cost you thirty to forty percent more on your utility bill than the newer, energy star compliant models. New equipment usually comes with a manufacturer's warranty which can save you repair costs for up to five years depending on the manufacturer of the unit you choose. Ask your T & L representative about repair and maintenance plans for the equipment in your facility.
Not reviewing your insurance policies and calling to confirm coverage and the rates can cost you more than it needs to every month. Call your insurance agent twice a year to ensure that you have adequate coverage and that you are getting the best rates. Reviewing your contracts with suppliers regularly can save you money too.
Hidden expenses like rent increases, high staff turnover, and additional advertising costs add up quickly and eat away at your profit margin. Having quarterly evaluations of your expenses and sales can help you identify when you have had additional expenses that should be either worked into your operating budget, reduced or eliminated. Keeping a close eye on your finances as a business owner is key for success.
At T & L we pride ourselves on service after the sale. If you are struggling with costs associated with your business - ask your representative for referrals in your local area to suppliers, insurance agents and more. In business it's not always just what you know, sometimes it's who!
Stop Searching for Maytag Dealers in Greensboro, NC!
Ready to buy new commercial washers and dryers? Do you have an interest in opening a new laundromat location? Let us help with your plans so that you can choose the right commercial washers and dryers for your business’s needs. We serve industries such as healthcare, hospitality, correctional facilities, fire departments, fitness centers, hair salons and food service as well as laundromat owners. We're not Maytag dealers in Greensboro, NC, but we are the top Speed Queen and Continental dealers in North Carolina. So call T & L today and start saving time and money.
