Executive summary (for owners in a hurry)
Competing primarily on price is a trap for laundromat owners. It attracts the most price-sensitive customers (who will switch again for another dime), compresses margins in a high-utility-cost business, and leaves you with fewer dollars to deliver the store qualities customers actually prioritize: cleanliness, safety, equipment availability/uptime, convenient hours, and big machines. Those aren’t my opinions—they come straight from the Coin Laundry Association’s (CLA) customer research and PlanetLaundry reporting. In the CLA’s customer survey, cleanliness, safety, and having enough/big machines are rated as top decision factors, and PlanetLaundry summarizes CLA research the same way: operations beat price in driving store choice. CLA, The Laundry Association+2CLA, The Laundry Association+2
Below is a deeper, “8-page” treatment you can hand to a partner or manager.
1) The problem with price wars in laundromats
Price cuts don’t create loyalty—only switching
Price is the easiest thing for a competitor to copy, so the only “advantage” you gain by undercutting is a short-lived bump from the most price-sensitive segment. Those customers tend to churn the moment a rival goes a cent lower. In other service industries this is well known, but it’s amplified in coin-op because stores sit close together and prices are posted on every door. Research summaries in PlanetLaundry explicitly caution that customers choose locations more for safety, cleanliness, customer service, and machine availability than for vend price. Planet Laundry
Margin compression in a high-utility business
Laundromats have a uniquely large variable-cost component (gas for dryers and water heating, electricity for motors and HVAC). Industry reporting and owner surveys repeatedly highlight utilities as among the top operating costs. Cutting price without cutting those inputs squeezes contribution margin on every turn. (American Coin-Op’s recurring State of the Industry coverage, as well as trade pieces on utility costs, underscore this pressure.) American Coin-Op+1
Elasticity isn’t your friend when value is similar
Basic price-elasticity logic says that when offerings look the same, consumers become more price sensitive. The fix is differentiation—not matching the lowest price. When you upgrade the experience, you reduce apparent substitutability and the need to discount. Harvard Scholar
2) What CLA customer polling actually says about choice drivers
The most direct customer polling we have is the CLA/Readex Laundry Customer Survey. In that study, respondents rated how much various factors would influence their choice if they moved and needed to pick a new laundromat. Cleanliness, feeling of safety, and having enough/big machines rank at the top, right alongside convenience items like hours and distance. Price matters—but it isn’t the sole or dominant lever, and it isn’t meaningfully ahead of those operational qualities. Highlights:
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“Influences summary” (rated 4 or 5 out of 5):
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Feeling of safety/security — 83%
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Store cleanliness — 83%
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Enough machines available when needed — 82%
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Price — 80%
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Distance from home — 78%
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Hours open — 78%
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Big machines — 77%
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Available parking — 73%
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Attendant on duty — 56% CLA, The Laundry Association
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Mean importance (5 = “influence very much”):
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Enough machines when needed — 4.3
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Feeling of safety/security — 4.3
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Cleanliness — 4.3
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Price — 4.2
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Distance — 4.2
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Hours — 4.2
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Big machines — 4.1
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Parking — 4.0
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Attendant on duty — 3.5 CLA, The Laundry Association
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PlanetLaundry’s synthesis of CLA research reiterates the same point for owners: don’t be shy about appropriate pricing if your store is clean, safe, and well run—those factors are why customers choose you. Planet Laundry
Takeaway: Price is a factor, not the factor. The winners are stores that keep the operational table stakes consistently higher than nearby competitors.
3) Why “free dry” usually backfires
“Free dry” feels tempting in a price war, but experienced operators and PlanetLaundry columnists point to three predictable downsides:
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You’re giving away a core profit center. As one PlanetLaundry column put it bluntly: free dry is “Business 101—don’t give away what you’re trying to sell,” estimating you could be giving up around 25% of gross. Planet Laundry
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Utility spend spikes while revenue per turn drops. Dryers are energy-intensive; when loads are free, dryer-only visitors show up, lengthening cycle time, increasing gas/electric use, and crowding out paying wash-and-dry customers. Trade articles on utility burden remind us dryers and water heating are among the biggest line items, so subsidizing them is costly. The Laundry Boss
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Abuse and machine wear accelerate. Free dry incentivizes behaviors like partial loads “to fluff,” repeated short runs, and using dryers as heaters. That means more lint, more maintenance, earlier part replacements, and a busier attendant workload—without compensating vend revenue. (Operators and industry press commonly warn of these second-order costs.) Planet Laundry
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It’s easy for rivals to copy—and then you’re stuck. If a nearby store matches “free dry,” you’ve destroyed the margin floor with nothing left to differentiate on except… better operations. Better to start there.
A telling data point from American Coin-Op’s most recent State of the Industry reporting: only ~3.5% of surveyed owners offer free dry—it’s rare for a reason. American Coin-Op
4) The playbook that actually beats low-price rivals
Use price to reflect value, not to manufacture it. The path to winning is to raise the bar on the experience so that your prices feel justified and switching feels costly in time and comfort.
A) Cleanliness: your #1 marketing channel
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Daily open/close checklists: floors mopped, lint traps cleared, folding surfaces sanitized, soap residue wiped, trash emptied, windows and bathrooms cleaned. Post the checklist where customers can see it.
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Mid-day “reset”: 10-minute blitz every few hours dramatically raises perceived cleanliness.
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Visible standards: signs like “We sanitize folding tables every 90 minutes” reinforce the promise.
CLA customer data places cleanliness among the very top selection criteria—right next to safety. It’s the least expensive way to look better than everyone else, every day. CLA, The Laundry Association
B) Safety: the silent deal-breaker
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Lighting: 5000K LED, even coverage inside and out; no dark corners.
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Sightlines & cameras: remove visual obstructions; install cameras with on-screen monitors (deterrence).
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Presence: live attendant during peak hours; if unattended, boost “eyes on the space” via remote monitoring and quick response.
“Feeling of safety and security” is as influential as cleanliness in CLA’s survey—ignore it and no price will compensate. CLA, The Laundry Association
C) Equipment mix, uptime, and availability
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Right size, right count: Emphasize big machines (40–80 lb) and enough total pockets to cut wait times. CLA customers rate big machines and availability among the top drivers. CLA, The Laundry Association
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Uptime culture: Two-bin parts system for fast repairs, preventive maintenance calendar, and a same-day “down machine” response target.
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Queue friction: Clear signage on cycle times, cart etiquette, and folding zones reduces conflict and perceived wait.
D) Ergonomic layout & flow
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Flow > floorplan: Shorten the path from door → changers/kiosks → washers → carts → dryers → folding. Keep carts from blocking aisles; separate folding from bagging.
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Comfort: Plenty of carts, sturdy seating, reachable soap vendors, and deep, clean sinks. Thoughtful ergonomics raise throughput and satisfaction—even at the same vend price. (Design guidance across trade sources stresses layout’s impact on spend and repeat visits.) The Dedicated House
E) Modern, attractive user interfaces (UIs) on equipment & payment
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Intuitive controls: Clear cycle names, large displays, and progress indicators reduce staff interruptions and user error.
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Flexible payment: Coins + app/cards; receipts for reimbursement customers.
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Communication: On-machine prompts (“Add extra rinse?”), and end-of-cycle texts reduce loitering and clogged dryers.
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Perceived quality: Newer UIs signal reliability; owners routinely report better business following equipment upgrades. American Coin-Op
F) Hours and convenience
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Match demand: Extend hours slightly ahead of competitors; be consistent.
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Parking: If you have it, sign it and keep it open; it’s a rated factor in the CLA survey. CLA, The Laundry Association
G) Service culture
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Attendant scripts for common issues (“Let me grab you a cart,” “This bank of dryers is the hottest”).
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Feedback loops: QR code to a 30-second survey; fix what’s mentioned twice.
5) Pricing smartly—without racing to the bottom
Position price to the value you’ve built
PlanetLaundry’s guidance, anchored in CLA research, is clear: if your store delivers on cleanliness, safety, and availability, you needn’t fear appropriate pricing. Use small, rational increases tied to tangible improvements (new 60-lb washers, re-paint, lighting), and communicate the “why.” Planet Laundry
Use structure, not giveaways
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Tier for speed & size: premium for express cycles/large capacity.
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Bundle for convenience: modest multi-load or family-day bundle with limits (e.g., “Buy 3 washer cycles, get 1 small dryer cycle 50% off”)—protects margins versus “free dry.”
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Loyalty simple, not gimmicky: every $X earns $Y—easy to explain, minimal labor. (Complex programs add cost without clear lift.) Setomatic Systems
Watch the numbers weekly
Track: turns per day by machine class, utilities per dollar of vend, unplanned downtime, NPS/complaint rate. If a rival drops prices, check your unit economics before reacting—don’t copy a move that hurts your own P&L.
6) Why matching “free dry” is specifically risky (with numbers you can model)
Consider a typical 40-lb wash at $4.50 and a dry costing you ~$0.28–$0.40 in gas/electricity for a normal load (varies by market/equipment). If you move to “free dry,” you:
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Lose the dryer vend entirely, which often contributes a meaningful share of gross profit;
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Attract dryer-only users (no washer revenue), lifting utility costs and crowding; and
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Increase cycle wear per day without the matching revenue.
Veteran operator commentary estimates ~25% of gross effectively given away under free-dry policies, and warns that even raising washer vend won’t fully offset it—especially once abuse and higher utilities are accounted for. Meanwhile, only a small minority of stores (~3.5%) report offering free dry today. Planet Laundry+1
Bottom line: If you need a compelling offer, create a limited, trackable promotion (e.g., “Tuesdays 9–11am: 15% bonus on app reloads”) rather than permanent free dry.
7) Case-style play: how to outperform a cheaper rival in 60 days
Week 1–2: Fix the fundamentals
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Deep clean, repaint high-touch surfaces, relamp with bright LEDs, add outside lights.
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Repair every down machine; stock fast-movers (belts, pumps, drain valves).
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Post your cleaning and uptime promises.
Week 3–4: Make it feel modern
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Add cashless pay alongside coins; simplify on-machine directions; put “How to pick a cycle” mini-cards above each bank.
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Re-stripe parking; add wayfinding: “1 → Wash,” “2 → Dry,” “3 → Fold.”
Week 5–6: Tell the story
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Window banners and Google listing updates: “New lighting, cleaner than ever, 60-lb machines, open until 11pm.”
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Staff a greeter on weekends; hand out “welcome” dryer sheets and answer questions.
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Adjust price where justified (e.g., +$0.25 on 60–80 lb machines) and explain the value (“bigger, faster, cleaner”).
This sequence improves exactly the attributes customers rate as decisive—without ceding profit. CLA, The Laundry Association
8) What matters most to customers (checklist to train teams)
From the CLA customer survey and consistent trade coverage, the factors customers rate highly when picking a laundromat:
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Cleanliness
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Feeling of safety/security
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Enough machines available (uptime/availability)
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Big machines (capacity for bulky items)
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Hours (convenient and reliable)
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Distance/parking (easy access)
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Price (important—but not a magic bullet)
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Attendant presence (help available) CLA, The Laundry Association+1
Train your team to protect these first. Then price confidently.
Conclusion
Lowering wash and dry prices is a blunt instrument in a business where utilities, maintenance, and equipment capital already squeeze margins. The smart defense against a low-price competitor is to raise the quality bar—cleaner, safer, better-equipped, easier to use, and more reliable. Customers reward those qualities with loyalty, and you keep the pricing power to stay profitable.
Sources (all referenced materials)
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Coin Laundry Association / Readex Research – Laundry Customer Survey (2013). Tables 058–060 and related detail on factors influencing laundromat choice: cleanliness, safety, machine availability, hours, distance, price. CLA, The Laundry Association+1
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PlanetLaundry (official magazine of CLA) – “Pricing for Profit” (summary of CLA research indicating operational factors—safety, cleanliness, service, machine availability—drive choice more than vend price). Planet Laundry
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PlanetLaundry – “Wash with Wally: Thoughts on Free Dry” (warning that free dry can give away ~25% of gross and raise utilities; “don’t give away what you’re trying to sell”). Planet Laundry
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American Coin-Op – State of the Industry and Your Views survey coverage emphasizing utilities as a major cost and reporting that only ~3.5% of owners offer free dry. American Coin-Op+1
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American Coin-Op – “Your Views: Store greatness often linked to cleanliness” and related pieces reinforcing cleanliness as a top success factor. American Coin-Op+1
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American Coin-Op – Year-over-year business survey commentary linking better results to equipment upgrades and growing the customer base, not just pricing moves. American Coin-Op
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Utility cost context – Trade resources discussing the impact of rising utilities on laundromat operations. The Laundry Boss
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Economics background (elasticity primer) – Basic price-elasticity concepts relevant to why differentiation beats discounting in similar services. Harvard Scholar