New Machines, Same Problems

I watched something fascinating unfold over the past few months that was thinking about. There's a laundromat near ours that's been struggling. They have slightly older machines, they're attended but have weak customer service, the store is a bit neglected, different vendors selling items and food inside, and it's fairly large, around 5,000 square feet.

Their sales have dropped 60% since we opened (shared by one of the owners, when visiting our store).

Recently, they closed and when they reopened, they had brand new machines, new flooring, and freshly painted walls. The upgrade looks nice.

But here's what got me from visiting their store several times on different days and at different times. Their client headcount is low.

Grant it, it’s early after their upgrade, but it got me to thinking after their big spend on new machines.

The Equipment Myth

This situation illustrates an expensive myths told in our industry, new machines automatically equal more revenue. It's a seductive idea, who doesn't love new and shiny equipment? But the reality is far more complex.

This narrative gets discussed at industry trade shows and events with limited supporting data. When I've asked for case studies or hard numbers backing these claims, the evidence is surprisingly thin.

The truth is, in our fragmented and private industry, real industry wide performance data is nearly impossible to find. This information vacuum allows myths to flourish unchecked.

What the Research Says

The service industry has studied this extensively through frameworks like SERVQUAL, the gold standard for measuring service quality. The findings consistently show that client satisfaction is driven by five key factors, ranked by importance:

• Empathy: How well staff understand and respond to client needs
• Reliability: Consistent, dependable service delivery
• Assurance: Staff knowledge and ability to inspire trust
• Responsiveness: Willingness to help and provide prompt service
• Tangibles: Physical facilities and equipment (ranked LAST in importance)

Now, you might be thinking: "But in a laundromat, clients use the equipment themselves, it's different from restaurants or auto shops." That's true. But even in our self-service environment, clients still value a clean, safe, well-maintained space with helpful staff over the newest machines.

A comprehensive study in the auto care industry using SERVQUAL found that while all five factors matter, tangibles, including equipment, had the weakest correlation with client satisfaction.¹ While our industry is different, the principle holds. Equipment is just one piece of a much larger puzzle.

The Cost of Misdiagnosis

Let's talk numbers. A typical laundromat renovation with new equipment can easily cost $200,000 to $500,000 or more.²

But here's what a fraction of that investment could buy instead:

Staff training ($2,000-$5,000)

• Basic client service skills
• Equipment troubleshooting basics
• Cleaning and maintenance protocols

Deep cleaning and brightening ($5,000-$10,000)

• Professional pressure washing
• Ceiling and lighting deep clean
• Machine detailing and touch-up paint

Client service improvements ($3,000-$5,000)

• Staff uniforms and name tags
• Improved signage
• Client communication systems (remember omni channel support)

Marketing to win back clients ($1,000-$3,000)

• Direct mail to nearby residents
• Direct mail to existing clients
• Social media advertising campaign
• Grand reopening event

Total: $11,000-$23,000 - a fraction of what new equipment costs.

The laundromat near us spent at least $500,000 on new machines while ignoring the actual reasons clients left, poor service, dingy atmosphere, and lack of attention to the client experience. They treated the symptom, not the disease.

Why Owners Fall for the Equipment Trap

I think there are several reasons owners gravitate toward equipment purchases over service improvements:

It's tangible. You can see new machines, touch them, show them off. "Client experience" feels fuzzy and hard to measure.

It's easier. Writing a check for new equipment is simpler than the hard work of training staff, improving systems, and changing culture.

It's accepted industry wisdom. When people say new equipment drives revenue, it's hard to question that narrative.

It feels like progress. Installing new machines gives the satisfaction of "doing something big" even if it's not addressing the real problem.

What Actually Drives Client Loyalty

Based on our experience, here's what actually makes clients choose one laundromat over another:

1. Cleanliness and atmosphere - A bright, clean, welcoming environment
2. Client service - Friendly, helpful, knowledgeable staff
3. Reliability - Machines that work, consistent hours, predictable experience
4. Convenience - Easy payment options, good location, adequate parking
5. Value - Good pricing for the total experience provided

Notice that "newest machines" doesn't even make the list? Sure, clients appreciate newer equipment, but they'll happily use 10 year old machines in a clean, well-run facility over brand new machines in a poorly managed one.

The Path Forward

Thinking about investing in your laundromat, here are some thoughts:

First, diagnose the real problem. Are clients actually complaining about machine age? Or are they frustrated with service, cleanliness, or reliability?

Start with low cost improvements. Better training, improved cleaning protocols, and consistent maintenance can transform your business for a fraction of the cost of new equipment.

Measure what matters. Track client complaints, service issues, and satisfaction - not just machine age.

If you do upgrade equipment, make sure it's part of a comprehensive improvement plan, not a standalone solution.

Thinking about the thinking of laundry:
When you realize that clients don't care about your equipment as much as the industry believes, you begin to see the real competitive advantage. It isn't what you buy, it's how you operate.

Next Steps

This week, try this:

1. Spend an hour in your laundromat just observing and listening to clients
2. Note every complaint or frustration you hear and see
3. Categorize them: Equipment? Service? Cleanliness? Other?
4. Address the top three non-equipment issues first

I'd bet good money that fixing those issues will boost your business more than any equipment upgrade could.

In a world where every laundromat can buy the same machines, your competitive advantage comes from everything else you do.

That's all I got for you today.

Waleed

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Echoing the thoughts of Peter Drucker.

The greatest danger in times of turbulence is not the turbulence; it is to act with yesterday's logic.

Footnotes:

¹ Service Quality and Customer Satisfaction in the Post Pandemic World: A Study of Saudi Auto Care Industry, Frontiers in Psychology, 2022
² How Much Does It Cost to Open a Laundromat?, SMB Compass, 2025
³ Average Costs of Commercial Washers and Dryers: Prepare for a Laundromat Retool