WashClub Trak has already developed a successful track record with early adopters.
The concept of WashClubTrak originated with WashClub NYC, which transformed itself from a neighborhood laundromat into New York Cities leading on-demand pick-up and delivery service. Ever since, WashClubTrak technological solutions have successfully been implemented with new operators across 5 different states.
WashClub NYC started off as a traditional local laundromat in Sunset Park, Brooklyn. The business consisted exclusively of self-service and drop-off laundry. The profitability of the business was not optimal for the two following reasons.
- Intense irrational competition from other local laundromats undercutting each other on pricing;
- Escalating commercial rent and utilities.
While a focus on efficiency and cost saving was helpful, it became apparent that the best way to boost their income would be to drive additional business through the doors by expanding its customer reach and offer a superior more convenient customer experience. That was the birth of WashClubTrak, with a vision to test and develop a complete software suite to attract new customers online and handle all aspects of eCommerce, order collection and tracking as well as pick-up and delivery logistics.
The success has been phenomenal. WashClub NYC has over 10,000+ online customers in over three years. With over 185 pieces of washing equipment; we have seen a dramatic increase in its daily utilization; the average daily turn per machine has increased from 4.4x to more than 15.3x. While variable cost increased in order to handle the logistics aspects of the business, profitability actually improved as the average order value per customer surged to $56.00. This is proof that customers are ready to allocate more of their budget to laundry and dry cleaning if the convenience and quality of the services justify it. Net earnings have grown over 400% over the past three years and looking up.
Average Daily Sales
WashClub Long Island was the first operator to sign-up and promote the WashClub brand and WashClubTrak technology outside New York City. Launched in September of 2014, operations have gone from strength-to-strength, proving in the process that laundry delivery services is also appealing to suburban lifestyle.
Back in 2014, the operator signed an agreement with WashClubTrak to license out the WashClub brand in Long Island, servicing the counties of Nassau and Suffolk. Demand from local customers rapidly picked up and the operator has been steadily building a strong base of recurring customers. Its pick up and delivery operations are now entering their seventh month of operations and the benefits are already visible. Its average daily turn per washer has already moved by 2 full turns and its delivery business is now reaching $12,000 of revenues per month. Following his strong start, the operator is now expanding to other towns in Long Island and extending its pick-up and delivery windows and opening hours.
It is noteworthy that most residents of Long Island benefit from washing machines in their premises and yet are responsive to the convenience of delegating this task to dedicated professionals. It proves that on-demand online laundry delivery services is not restricted to being an urban phenomenon.
- Total Initial Investment: $8,500.00; $5,000.00 start-up fee plus working capital.
- Payback: Payback period on initial investments 4.0 months.
- Run Rate: Run rate of delivery annual sales is at $120,000.00.
- Change: Change in daily turn from 3.0x to 5.0x.
- ROI: Return on investment is >+200%.
"It is fair to say I had little prior experience in laundry operations outside self-service. As I considered expanding my business, I also looked at alternatives such as locker solutions or buying another coinmat outright. Both requiring substantial capital, would leave me facing high commercial rent and provide me with only a limited customer reach. On the other end, the customer response to pick-up and delivery has been fantastic so far and I could not be happier to carry the WashClub brand in my region."- Frank D. [WashClub Long Island]