Commercial Laundry Upselling Opportunities
Stop Leaving Incremental Revenue on the Table
There are few industries that compare to the logistical capabilities and service excellence provided by commercial laundries. While other companies are limited to dropping off product at the loading dock, commercial laundries across North America make weekly deliveries to unique departments, rooms and even specific lockers in customer locations. Route drivers from hundreds of laundries have earned the trust, and in some cases, have been given keys and access to locked or restricted areas in customers’ businesses. Most route drivers are on a first-name basis with customers.
The operational costs and logistical capabilities required to serve customers at this level are significant. Complex processes, capital-intensive equipment and the pressure to remain competitive on pricing can be daunting. These operational costs are often mitigated through a combination of cost-saving tactics and strategic ancillary charges, or by applying pressure to the business-development team.
In many cases, companies concentrate so heavily on acquiring new customers to drive revenue that they overlook the untapped potential in their existing customer base. Improved penetration not only adds incremental revenue per stop (without additional costs) but increases your overall business value, margin performance and customer retention.
This is intensified given that the average new customer that signs on with a commercial laundry typically only rents 1-2 item types from the various product categories that the laundry offers. When selling to new customers, the sales team often faces pressure to “get the deal,” rather than pushing to sell multiple categories from the onset. The belief or hope is that eventually sales or route service people will sell additional items to those customers…But the reality is that the average commercial laundry leaves substantial revenue on the table by not further penetrating their existing customer base.
