Data-Driven Profit Growth and Scientific Operation for Self-Service Laundries

In the self-service laundry industry, successful operations use data as a basis and use equipment as a support. Precisely monitoring income and expenditure, optimizing performance indicators, and making long-term plans can help achieve stable profits and sustainable development in the competition. Professional self-service laundry equipment helps improve service experience, control costs, and improve efficiency. Kingstar self-service laundry equipment has been the top choice for many operators because of its core advantages.

Management of Profit

The profit margin of a self-service laundry lies in the meticulous management of income and expenditure data. Operators must develop the habit of regularly checking the data, sort out expenditures by key categories (water and electricity fees, rent, and labor), and identify abnormal values in time to prevent cost loss of control. If the water fee of a certain store suddenly surges, it might be due to a water supply failure.

● Core Expenditure

- Rent

The average rental income ratio in the industry is approximately 24%, and 72% of operators can keep this ratio below 29%. If the proportion of rent is too high, it can be balanced by increasing the utilization rate of the store (add high-priced services). In some areas, it can also use contracts to lock in long-term rents to reduce the fluctuations.

- Water and Electricity

The average proportion of water and electricity charges to revenue in the industry is about 21%. High-efficiency equipment can greatly reduce this. Kingstar self-service laundry equipment adopts energy-saving and water-saving technologies, which can reduce water and electricity consumption by more than 30% compared with traditional equipment. This helps the operators keep the proportion of water and electricity charges below 13%, and greatly increases the profit margin.

- Labor

The average labor cost of a self-service laundry with staff accounts for 22% of its revenue. Stores that are fully self-service or only provide basic on-duty services can reduce their reliance on manual labor and further lower labor costs by introducing the intelligent operating system of Kingstar self-service equipment (QR code payment and automatic fault alarm). If value-added services (laundry, drying, folding) are provided, it is necessary to rationally plan the labor.

● Hidden Costs

Operators also need to make a budget for equipment replacement, store renovation, and parking lot maintenance. Also, they should consider long-term investments: software systems (membership management, data analysis software), brand promotion, and staff training. Although these investments do not directly generate short-term returns, they can improve the competitiveness of stores and customer stickiness, which lays the foundation for long-term profitability.

Performance Monitoring

The performance of a self-service laundry cannot be judged just by its daily or weekly revenue. It is necessary to start from the trends and key indicators.

● Core Performance Indicators

- Turns Per Hour (TPH)

Since each machine has a limited number of operating cycles per day, TPH directly reflects equipment utilization. Industry practices show that when TPH is over 1.4 during peak hours, customers are likely to face equipment shortages and long waiting times, which may lead to the loss of customers. 

· Peak: identify peak demand periods, implement dynamic pricing (moderately increase prices during peak hours to balance supply and demand)

· Off-peak: launch targeted incentives (discounts, spending thresholds for deductions) to boost foot traffic.

- Average Transaction Value

In addition to laundry fees, the average transaction value (sales of laundry detergent, fabric softener, and other consumables) is an important source of supplementary income. Operators can rationally lay out vending areas in the store based on customer needs to increase the rate of associated consumption.

● Operability of Data 

Collecting data is just the first step. The core lies in transforming data into an executive strategy. 

- Data shows that during the off-peak period, the number of visitors is low. Therefore, “off-peak exclusive discounts” can be launched for nearby residents, students, and other groups.

- If the usage rate of a machine (such as large-capacity dryers) is persistently high, it is advisable to increase the configuration of this type of Kingstar equipment to meet customer demands and improve the overall turnover rate.

Long-term Planning

The long-term value of the self-service laundromats relies on the timing of equipment replacement, lease management, and business expansion planning. The three indicators should cooperate to achieve stable profits and maximum value.

● Equipment

Equipment is the core asset of a self-service laundry, and its service life and operational efficiency directly affect long-term costs.

Kingstar self-service laundry equipment guarantees long-term value from the source. The entire series is designed and manufactured with a 20-year service life, and strict control is maintained in the selection of core component materials and structural processes. Compared with traditional equipment (with an average lifespan of 8 to 10 years), it can significantly extend the equipment replacement cycle and reduce long-term equipment investment costs. At the same time, a 2-year after-sales guarantee for the entire machine is provided. This covers the fault repair needs during the critical period of equipment operation, and reduces the concerns of operators in operation and maintenance.

In addition, the equipment also has energy and water conservation advantages and intelligent operation and maintenance functions. With the remote monitoring system, operators can get the machine’s status in real time. This provides warnings for faults in time and can reduce downtime. It also supports flexible upgrades (adding payment methods and integrating with the membership system), which can adapt to the development of the industry and changes in customer demands. The 20-year lifespan is not only a time guarantee but also an effective life cycle that meets business needs.

● Tenancy Term

The remaining term of the lease is a key factor. If the equipment is approaching its service life and the lease is about to expire, the store may find itself in a predicament where a large investment is needed to replace the equipment, but the lease is uncertain. At this point, selling the store will also be difficult to obtain a high price.

The operator needs to do the equipment replacement plan and the lease negotiation at the same time, and assess the equipment condition one to two years before the lease expires. If long-term operation is planned, durable equipment such as Kingstar with a 20-year lifespan design can be replaced in advance, and at the same time, efforts should be made to extend the lease. By leveraging the long-term reliability of the equipment, the stability of asset value can be ensured.

● Value

Self-service laundries that are profitable in the long term often do not limit themselves to basic laundry services. Relying on the high efficiency and 20-year reliable advantages of Kingstar self-service equipment, laundries can confidently expand value-added services (drying, clothing disinfection, and consumable sales). There is no need to frequently worry about equipment malfunctions affecting services, nor is there a need to reinvest in equipment costs in the short term.

A membership system (recharge discounts and points redemption) can also be introduced to increase the repurchase rate of customers and the average spending per customer. In addition, through regular store cleaning and equipment maintenance, a clean, convenient, and comfortable consumption scene can be created to attract customers who pay attention to experience. This forms a differentiated competitive advantage.

Conclusion

Data is the soul, equipment is the foundation. Laundries should focus on long-termism.

Self-service laundry is not a business that can be simply invested in. Instead, they require operators to continuously invest their efforts in monitoring data, optimizing operations, and planning for the future. From controlling the proportion of water and electricity charges to increasing TPH, from choosing Kingstar equipment with a “20-year lifespan + 2-year warranty” to planning leases, every step needs to revolve around profit and value. Kingstar self-service laundry equipment provides the core tools for operators to control costs and improve efficiency with its characteristics of energy saving, high efficiency, intelligence, and long-term reliability. However, data-driven decision-making and long-term planning are important for achieving stable profits and industry competitiveness. Only by combining equipment advantages with operational wisdom can one go further in the self-service laundry industry.