In the fierce laundry market, a brand new low-price model has been emerging and has caused a shock in the whole industry. When the traditional laundry shops still focus on “the profit from a shirt has decreased by 2 yuan”, the shops that adopted the new model have already used the seemingly impossible low-price strategy to defeat their peers. This model is not just a simple price war but a meticulously designed new business logic. Its aim is to lock in high-value businesses through differentiated competition and upgrade the old model of traditional laundries, which “sells single services to make a profit from the price difference”, to a new model of “operating users to make long-term profits”.
Low-price Strategy
Traditional shops are basically the same. Every shop competes on cost and price, and customers also care about “who is cheaper”. The bosses of the new model have taken a unique approach, deliberately selecting basic items that are frequently used by the public and have low processing difficulty, and launching ultra-low-price services. Ordinary cotton T-shirts and shirts can be washed for 9.9 yuan, and three pairs of canvas shoes and sports shoes can be washed for 19.9 yuan. These individual items can be washed by every household and are daily necessities for customers. However, their prices are so low that their competitors dare not be the same. This quickly creates a gap and attracts customers to come into the store.
- Low price is not the purpose, but a sharp blade to break through homogeneous competition. Customers are willing to take a detour to the store just to have a shirt washed. This is precisely the effect the new model aims for – to break through the market gap with unprofitable basic items and let customers come in first.
- Specific action
❑ Precise product selection and pricing:
Investigate the types of clothes frequently worn by the surrounding residents and their price sensitivity. Questionnaires can be sent out at the store entrance, in community groups, or simply asked when customers pick up their clothes to understand which basic styles of clothing are in high demand and how customers accept the prices. Then, based on the cost and market demand, determine the types and prices of the low-price service clothing.
❑ Cost control
Have long-term cooperation with the suppliers of laundry products and try to get more favorable purchase prices. Also, optimize the washing process, such as rationally arranging the washing sequence, improving the use rate of equipment, and reducing the cost of water and electricity. Employees can also be trained to enhance work efficiency and reduce labor costs.
High-value Clothes
The real profit logic has just begun when customers, attracted by low prices, enter the store. The new model no longer focuses on how much each order earns, but rather calculates how much long-term value a customer can bring. High-value clothing is at the core of this logic.
Garments made of delicate fabrics such as cashmere coats, silk skirts, and suede jackets have high laundry market prices and relatively low costs, with huge profit margins. Large household items such as wool carpets and genuine leather sofa covers have complex processing procedures that are difficult for peers to replace. Luxury goods (LV bags and Gucci scarves) have high average transaction values and stable repurchase rates. After experiencing the professional service of low-priced basic items, customers are more likely to trust the store and send high-value clothes for care, achieving a large return with a small investment.
- Specific action
❑ Enhance employee skills:
Regularly let employees participate in training courses on high-value clothing care. You can invite industry experts to give lectures in the store or send employees to professional training institutions for learning. The training content includes the characteristics of various fabrics, cleaning methods, care skills, etc. After the training, an assessment will be conducted to ensure that the employees have truly mastered the skills.
❑ Display achievements
Have a display area in the store to hang high-value clothes that have been carefully cared for, along with before-and-after comparison photos and customers’ positive reviews. These cases can also be shared on social media to attract more potential customers.
Private Customer Domain
Low-price customer attraction is just the first step. Only by retaining customers can high-value profits be sustained. The new model transforms one-time low-price consumption into a long-term profit pool through private domain operation.
- Membership
When customers pick up their clothes, the staff will recommend them to join as members, such as “Add WeChat to become a member. The 9.9 yuan for washing shirts this time will be directly refunded to the balance, and 20 yuan can be used to offset the next time you wash a coat.” Members enjoy discounts on regular clothing, luxury care items, and free mending and other benefits. In WeChat, customer information is classified and noted by type of clothing, and care needs are reminded in a timely manner, transforming the situation where customers look for stores into stores looking for customers.
- Detailed service
Customers are most afraid of getting bad quality goods at a low price. The new model has made great efforts in the details. The shirt, which was washed for 9.9 yuan, is neatly folded and covered with a dust-proof bag. Free service of mending buttons and trimming hooks for customers’ coats. The luxury bag comes with a “Care Report” after washing, indicating the solvent and treatment details. These details make customers feel professional and dedicated, build trust, and feel at ease sending high-value clothes.
- Specific action
❑ Membership system
Make detailed membership benefits and points rules. Members earn 1 point for every 1 yuan they spend. These points can be exchanged for laundry services or small gifts. Members of different levels can also be set up. The higher the level, the more discounts and benefits they can enjoy, which encourages customers to spend more.
❑ Customer information management
Use a dedicated customer management software to record customers’ consumption history, types of clothes, care needs and other information. Based on this information, provide personalized services for customers, such as pushing promotional activities for cleaning sports shoes to those who frequently wash them.
❑ Regularly follow up with customers
In a certain period after a customer’s purchase, follow up with them via WeChat or phone to understand their satisfaction with the service and whether they have any questions or suggestions. For the problems raised by customers, you should solve them in a timely manner and provide feedback to make customers feel your attention.
Low Price With Good Quality
The premise of the low-price model is good quality. If, in order to cut costs, inferior solvents are used for perfunctory treatment, it will make customers think it is unreliable, let alone increase the value of the clothes. The new model uses low-priced items as professional display Windows. Washing shirts for 9.9 yuan and adjusting the ironing temperature according to the fabric ensures a clean and professional wash, allowing customers to directly experience that “it’s better than washing at home”.
- Specific action
❑ Quality inspection standard
Make a strict quality inspection process and standard for the clothes cleaning, such as ensuring that clothes are free of stains, odors, and damage after washing, and that ironing is smooth… Set up a dedicated quality inspection position to check every piece of washed clothing. Only those that meet the standards can be delivered to customers.
❑ Advanced equipment and technology
Keep an eye on the latest developments in the industry and promptly introduce advanced laundry equipment and technologies. Using eco-friendly laundry equipment can not only ensure the cleaning effect but also reduce pollution to the environment. Adopting low-temperature washing technology can reduce damage to clothes.
Reasons Why the Traditional Model Cannot Win
While traditional laundries are still calculating the profit from a single shirt, the new model has already calculated the annual clothing care budget for a family. While traditional stores rely on word-of-mouth from regular customers to expand their customer base, the new model reaches 200 new customers within a week with a low price of 9.9 yuan. When traditional stores regarded luxury care as a niche business, the new model had already accumulated 500 luxury customers and brought in a stable monthly income of over 100,000 yuan. This is a “dimensional reduction strike”. It’s not about comparing strength on the same dimension, but rather competing in different dimensions. You compete on the profit per transaction, while others compete on the lifetime value of users. You do one-off deals, while others are deeply engaged in user relationships.
Conclusion
Low price is the key, and the treasure lies behind the door. The low-price model of laundry shops is never about who dares to lose money more, but rather that the profit-making coordinate system has changed. The traditional model is competing for profits in the dimension of selling single services, while the new model is building an ecosystem in the dimension of managing users. Low prices are merely the key to entry. The high-value clothing behind the door, long-term trust, and repeat purchases are the true treasures. Even if you push the price below the cost line, you still can’t beat the new model because what you are playing is not the same game at all.
