How to Start a Coin Operated Laundry Business in the Philippines
Getting an inch of venturing into a profitable business? Why not set up a laundry shop? Within Metro Manila, the population is booming where jobs require much more time in the office than at home. This leaves people unable to manage their chores such as laundry.
The profitability of your laundry business largely depends on the expense and how attractive your business is at the location you are established.
Read more on what you need to know before you start a coin operated laundry business in the Philippines!
Know the amount of capital you need
Franchise or independently-owned? Franchising a laundry shop usually costs at an average between P100,000 to P500,000. The advantage of a franchise is its low-risk investment because of an already established brand as well as a tried and tested business model.
The independent business route provides you the freedom of running the operations as you want. The capital you need usually cost from P100,000 to P400,000.
Evaluate the location of your business
A coin operated laundry business provides the best accessibility near condominiums and apartments, where tenants and owners are unable to squeeze in their own laundry machine in a cramped space. Consider the ground floor where most people tend to idle and have the heaviest foot traffic.
Another factor to consider is the social system of the neighborhood. A subdivision with access to maids offer no advantage to any laundry shop. However, people who prefer to do it at their own pace tend to wash their own clothes.
Additionally, a coin operated laundry machine takes up at least 100 square feet of space. The laundry business should have at least between 1,500 to 5,000 square feet to run the place smoothly with all the tables and equipment available.
Buy the right equipment
Coin operated laundry businesses are not complicated but they still apply several rules that are used at home. Clothing articles that need extra care are delicates. They can be taken care of by the laundry machine by using laundry nets. These laundry nets vary from small to big, appropriately used for different types of clothing. If you want to earn a small profit, consider pricing laundry nets exclusive from the use of the machines.
Just like any other laundry shop, weighing scales are used to determine the weight of a bag of clothes to set a rate for any given amount of weight. Digital scales use accurate and easy-to-read results compared to outdated traditional weighing scales.
An important part in buying washing machines is avoiding buying second-hand. They are more likely to break down, especially for older models. You are also less likely to find spare parts, risking the potential to damage your customers’ clothes. Additionally, industrial machines should be used as they are made to handle a bigger amount of load of laundry.
Get your business licensed!
You can’t run a business without being registered. For sole proprietorship, head to the Department of Trade and Industry (DTI). Partnerships and corporations register with the Securities and Exchange Commission.
Having five or more employees will require you to register with the Department of Labor and Employment (DoLE).
Develop long-term relationships with customers
People are nitpicky with clothing. It is one of their personal clothes that are being handled at a private establishment. If you want to earn your customers’ trust, you may want to provide a system of incentives that would make them come back every time.
Consider a busy individual, who has no time to fold their laundry. For a small fee, you can fold their laundry and just let them pick them up on the go. Delivery also goes a long way from changing a one-time customer into a loyal customer.
Small things such as separating their clothes from other customers, and double-checking if they are missing any clothing shows that your care and betters your reputation to them.
Tips from the professionals!
Watch out for any inefficiencies in your operation. One should always observe what makes the day to day system not work as better and faster as it should. In such cases, there are times that one component is lagging behind and throttling the performance capability of the business! This refers to a management approach that identifies the problem and offers a solution as a replacement.
For example, a washing machine placed next or under a drier would offer a faster approach on transferring clothes. Not only that, but this reduces the number of drips on the floor, a potential hazard for any unsuspecting customer.
In such scenario, the best solution for the problem is making effective use of the space that you have available. Doing so allows you to save money on running your business!