How do you price your laundry services?

With the exception of the big Laundry Franchises, most laundry shops’ Wash-Dry-Fold services are offered at P25/kg. But how do you price your standard laundry service? Is this already the right price for your laundry service considering your location and target market?

The question for starting laundry business owners is that “How do I price my laundry services?”, “Am I pricing it too high or too low?”. Let us take a look at the things you need to consider for your pricing strategies.

First of all, make sure that your service price should always have a considerable margin from your cost. Go check your competitors for their pricing. Take a look on how the market is responding on their price. Is the price acceptable to the market?

When you already have your competitor checked, it doesn’t mean that you always have to price your services the same as they do. The decision will still be yours. Your price will depend on what impression you want to send out to your prospective customers. Do you want to be “the cheapest” laundry in town? Or maybe you want to position yourself as one of the “elite” by playing at a higher price?

One advice that I can give to you regarding pricing your services is NEVER GO INTO A PRICE WAR.


Why price a standard Wash-Dry-Fold service at P20/kg when the market is accepting the P23/kg or even the P25/kg price? A mere P3 to P5 difference per kilogram multiplied by about 15kg per customer is only P45 to P75 difference. That is not that big of a difference if I can have my clothes cleaner and more fragrant than a having it done cheap. Who wants to wear dirty clothes by the way?

Another thing why not go into a price war is that our inflation rate today keeps rising up and prices of commodities as well as your laundry chemicals and detergents are likely to go up. You might have a hard time rising up prices if your clients get accustomed to your low price. Consider also that your competitor may not be paying for rent since his laundry shop is located in their house. They are saving rental cost so they can afford to lower their price. If you are renting, you cannot afford to do that.

Keep in mind that not all services in a laundry shop are priced at the standard Wash-Dry-Fold rate. You will lose money if you offer everything flat rate. Special items like jeans, comforter, blankets, curtains, etc., that eat up space and weight (in kilograms) should be priced higher than the standard rate.

Wash-Dry-Press services, for instance, is offered at a higher price since Pressing is a labor intensive activity. If you will be the one to provide the hangers for their pressed clothes, then an additional of about P10/kg is added to the regular Wash-Dry-Press price to cover up the expenses for the hangers.

Dry Cleaning items also have a different pricing scheme as each item has its special procedures and will require a separate activity, which is usually done after business hours.

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About DJ Dimaliuat
I am a financial planner, real estate broker, business consultant, life coach, seminar facilitator, inspirational speaker, event host, part-time gamer, race car driver, basketball enthusiast, and a traveler for life. I started helping out at our family water station business at age 15, without pay. I helped my parents during weekends and sometimes after school particularly in production and delivery operations. I learned the value of working for our company’s growth and developed passion doing it. This started my entrepreneurial spirit. During my college days as an Industrial Engineering student from Adamson University, I started pursuing small trading businesses with a dream of being a young millionaire. I eventually got into multilevel marketing where I got my sales and marketing training and developed my business skills early on. By the year 2008, I got involved into real estate where I eventually earned my 1st million at age 22. After one and a half year, I founded DRIVEN Marketing Group Inc., one of the fastest growing real estate marketing companies in the Philippines today, together with my colleagues. Last 2012, I started a non-profit organization for youth development called Yummie Nation. Our group aims to develop young millionaires, who will eventually help make the Philippines a better place.

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