In order to cash in on a model that was gaining popularity, Mark Vlaskamp started a laundry delivery business.
He told Insider that that was the time when everything was going to be delivered. It was a service that was new and exciting.
The Folde's original idea was to deliver laundry to customers. The business model that Vlaskamp and his co-conspirators had developed had limitations.
The laundromats could not keep up with the demand. We were struggling to fill the orders.
The laundromat opened in Austin, Texas. The Folde is a self-service laundromat. All of the day's wash-and-fold orders are processed at night.
The company was funded by the company's founders until 2021. The first million dollar revenue year was achieved by The Folde. Since that time, business has grown. The company opened a second location in Houston in the year 2022.
The advice for entrepreneurs interested in starting a laundry business can be found here.
The first expense was the retail space. He bought 64 washers and 64 dryers in Austin at a cost of about $10,000 each.
The expenses all hit at the same time.
"We had a lot of delivery-laundry-service customers at the time, so all of a sudden, you wake up and you can turn on the scale and the profitability," he said.
The company has 72 employees and payroll is the largest expense.
He said it was all a labor based business. The more orders you get, the more money you make.
It means that Vlaskamp is trying to control costs. He has made the machines more efficient. Instead of using factory defaults, he changed the settings to make them cleaner and cheaper to use.
The soap is next. Vlaskamp used to go to the store every week to stock up. He is relying on a wholesale supplier to deliver 55 gallons every three to four weeks. This saves him a lot of money. The wholesale detergent was about $0.06 an ounce before delivery fees, while the Costco detergent was about $0.09 an ounce.
To reach $1 million in revenue in one year, Vlaskamp had to retain customers. He uses online marketing to promote his business.
He said that laundry is recurring in nature. We don't need to add as many leads to the top of the funnel if we can get you to make a habit out of it.
Many customers find The Folde via the internet, so it's a good idea to use search-engine marketing. Social-media accounts are more of a reference check than a way to gain customers.
"I always look at plumbing companies on social media," he said. When I need a plumbing company, I will search and call the first one that I see on the internet.
It's important to have a smooth communication with customers. The majority of the company's communication is over email and chat. The Folde has an app that allows customers to order laundry from their phones.
Vlaskamp has procedures in place to make sure customers receive quality service every time.
Every piece of clothing is folded according to its shape, size, and material.
They need to know how to fold everything.
He believes that every detail is important, from the lighting to the hygiene. Customers are willing to pay for better quality.
The laundromat is more expensive than the one a mile away. People drive out of their way to pay more for the machines because it is a better experience, better wash, better atmosphere, and better customer service.
Vlaskamp encourages entrepreneurs to focus on providing a quality service and atmosphere if they want to start a laundry business.
He said to build a laundromat that your mother would want to use.
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