Assignment 3: Promotion and Pricing Strategies
BUS 402: Small Business Management
Promotion and Pricing Strategies
It seems to me that a laundromat business is successful if you are in the right location and target the proper needs of the people in the correct area. Before I begin a marketing plan for my laundromat, it is essential to find the right people in my area. The first thing I thought, who does not have washers and dryers of their own? So, I checked for universities and community colleges in the neighborhoods with big groups of student housing, and I checked with the local courthouses to find houses zoned as rentals. I also wanted to locate places that cater to people who do not stay in one place for long, like long-term-stay hotels and corporate housing communities. I also wanted to consider people who may not be able to afford a washer and dryers. But I didn’t want to be in a low-income area. I wanted to be in an area where everyone benefited, like senior citizens and middle-class families that needed cleaning services, as well as fluff and fold services.
People are buying more clothes, mainly expensive clothes; this makes them pay more attention to the care and cleaning of their garments. I thoroughly researched the business, and I focused on working and professional class customers as a target portion market. To sum it up, my target market is students, working-class people, and older adults. Mostly those who will benefit from our service offerings are busy corporate executives, business owners, households, students, and travelers or visitors. These are the kind of consumers that I intend on marketing my laundromat to; Everyone I can reach in the neighborhood.
Identifying customer needs requires research of the industry you are trying to own and asking customers areas of specific questions. You want to make sure you can deliver on their individual
needs. I want to find out all I can about trends in this market. I also would like to offer cleaning services to companies with uniforms, like UPS, Dr.’s offices, and other companies, but that’s down the road. I will continue to research the market in my area every few months. Doing this will keep me innovated. I also thought about going door to door to get feedback but know a days that is too dangerous.
The next thing I did, looked into social media, I went to social media in communications approach; this allows me to follow discussions on my business and those of my competitors. Information from social media continues more insight into the information I get from customer feedback. I will have a staff member to monitor social media that mention my company and respond to remarks to involve customers and prospects. I will acknowledge the feedback from customers and respond to requests for improvements (E. Smith, 2019).
A laundry business can be comparatively easy to start. You don’t have to have a lot of experience in the industry, but you want to be on point with knowledge about the industry. You will have competitors, that will challenge you, but you can fix that by being in a non- competitive area. I made sure the location was a prime location. I discovered there are no laundromats in the region where my store is opening, there are cleaners, but I have researched and did my homework on the sites and how busy they are. My fees will be lower, and I will provide more incentives.
I wrote a business plan on how my business will run. I list the services that I provide including, wash-and-fold, pickup, and delivery, cleaner services in by 7 am pickup by 5 pm.
For discounts and sales, I want to make customers happy and increase my revenue, with well-formulated deals with free drying with so many washes. I’m going to have a loyalty card where customers will be able to wash for free. I will also increase my prices if needed. I might catch my customers off guard; I will raise my rates if required. I will go back and look at the pricing strategy every year and analyze my profits and make the necessary adjustments. I will let my customers know why I had to increase prices; I want to be an honest business owner.
My grand opening will be outstanding by having a grand opening, for years, businesses have held a grand opening, for big and small companies. A Grand Opening can be a fabulous way to tell the neighborhood that you’re Open.
Distribution of marketing a business is an essential part of getting your target audience in the door. I’m reaching out college students, posting fliers on bulletin boards on campus, I’m passing our brochures and pamphlets to renters’ associations or Realtors who market to young professionals, low-income tenants, and students who don’t always have money to buy their washer and dryer. I also hung posters in places that have a great deal of foot traffic, like coffee shops and grocery stores.
I know that I am well-positioned, and we will attract customers that will not only patronize my laundromat but customers that will indulge my coffee and snacks bar, and deli lounge meaning that I will generate extra income from these sources. The sales projection for this year based on the location of my laundromat and the type of services and products that I will be offering and the first year will project $80,000.00
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