Gasoline Price Index = Laundromat Profit?
The current oil trading price has resulted in reducing the price of gasoline at the pump, so how does this touch the coin laundry business? The lower price of gasoline has put $14 BILLION dollars back into the pockets of Americans in 2014, YES that’s not a type-o, $14 BILLION!
To some the change of price at the pump will have no upshot on their spending habits (CEO’s, Hollywood Elite, Government Employees, etc.) However to the target audience of the coin laundromat that lowering of gas prices can have a BIG impact on their disposable income. With the average laundromat customer any extra savings on one expense will be diverted to other needs (the key word being NEEDS and not wants). The list of needs is a short one, shelter, food, transportation, and CLOTHING are tops on the list. With the reduction of fuel cost comes the reduction of goods like food being transported, thus resulting in lower prices at the grocery store. As you can see the coin laundry customer is now not only saving money at the gas pump they are also saving in other ways because the cost of fuel affects so many seemingly unrelated segments of the economy. With more disposable income becoming available to consumers there is opportunity for owners of coin laundromats to make some revenue gains, either through increased volume, or adjustments to vend pricing.
The savvy coin laundry owner should take a hard look at current operational expenses and decide whether a vend price increase makes sense. These economic opportunities are rare and acting now may be the best time.