Bright, White Profitability The retail drycleaning industry in all 4 US regions, as measured by American Drycleaner magazine, experienced sales increases during the first half of 2015: West, 6.4%; South, 3.8%; Midwest, 1.3%; and Northeast, 0.9%. Q3 2015 sales performed even better – West, 5.0%; Northeast, 4.3%; South, 4.2%; and Midwest, 2.5% – which then continued into October and November, with the South leading both months, at +3.7% and +6.1%, respectively. All 4 regions spent more on marketing during 2015, with drycleaners in the Northeast spending almost twice as much as the next highest region: Northeast, 12.7%; Midwest, 6.5%; West, 1.6%; and South, +0.6%.

The Clink of More Coins Of coin-op laundry operators surveyed by American Coin-Op magazine, 69.6% said business was much better (15.2%) or somewhat better (54.4%) during 2015, compared to 58.8% who said the same about their business during 2014 Strong first-half-of-the-year performances drove better 2015 sales in all 4 regions: South, +7.8%; Midwest, +6.2%; Northeast, +5.3%; and West, +4.1%. The strong first half continued, as all 4 regions were in positive territory for 9 consecutive months (March–November), culminating with November’s gains: South, 10.6%; West, 9.3%; Northeast, 6.9%; and Midwest, 2.8%.

New Jobs, New Households = More Dirty Laundry The double-digit increase in new home sales forecasted for 2016 may benefit the industry, but it’s the improvement in employment and wages that is increasing the number of busy people who need drycleaning and laundry services. The very substantial growth in multifamily construction starts since 2010 and historically low rental vacancy rates are more likely to have direct and positive impacts on the future business of drycleaners and coin-op laundry operators. Another positive factor for drycleaners and coin-op laundry operators is an estimated increase of 1.25 million new household formations for 2016, and many of them will be Millennials and Baby Boomers.

Cautiously Confident Another positive sign for retail drycleaners is that 52.1% increased wages by 1–5% and 27.1% by 6–10% during 2015; and 46.8% said neither the call for a higher minimum wage or competitive hiring affected their wage decisions A November 2015 survey from American Drycleaner revealed that 29.3% of drycleaners consider the breakdown of a key piece of equipment as their worst management scenario, followed by losing a big customer, at 27.6%. According to an August 2015 survey from American Coin-Op, 66.7% of laundry operators said Sunday was their busiest day, and 27.8% said Saturday. One-third said Tuesdays and Wednesdays were the slowest days of the week.

The Changing Clean Scene According to a February 2016 American Drycleaner survey, 39.3% of drycleaners said an app-based, on-demand pickup and delivery service is the future direction of the industry and 45.8% of those already offering such a service said it has benefited their business. Another trend affecting coin-op laundry operators is the increased use of credit/debit cards and mobile payment apps, as coins are less efficient as the cost to do laundry has increased. The use of credit cards doubled from 10% during 2013 to 21% by April 2015. Both drycleaners and coin-op laundry operators must be conscious of the major changes occurring and will continue to occur in US population demographics, especially with Baby Boomers working to an older age and increases in single mothers and Latino Americans.

Advertising Strategies Propose :10 or :15 spots during the local weather or ads on the weather page of your station Website on stormy, muddy and wintry days that are more likely to soil clothes with a special offer for dry cleaning submitted within the next 24 hours. Suggest coin-op laundries partner with new or existing apartment communities without onsite laundry services to offer all residents a discount for 12 monthly visits via a digital coupon they receive on their smartphone. Dry cleaners can offer a spring seasonal discount when customers bring a qualifying order of cold weather apparel for post-winter cleaning; patio furniture covers, cushions and/or area rugs; and/or summer outdoor gear, such as tents and sleeping bags.

New Media Strategies Coin-op laundry operators can use social media to promote the “captive audience” ideas and promotions listed on page 4 of the Profiler. Ask customers to post pictures and videos of their participation and comments about how much more they enjoyed laundry day. To promote themselves as the apparel-cleaning experts, dry cleaners can post regular cleaning tips about different types of stains on various garments and fabrics and how to treat them immediately before bringing them for dry cleaning. Use new media to promote partnerships with retailers that sell bedding, fine linens, bridal and prom gowns, etc. Ask customers to provide their email addresses or cellphone numbers to receive special offers and coupons for the cleaning and purchase of these items.