At first glance it may seem like selling and managing an in-house, do it yourself uniform program is the way to go for your linen rental laundry, uniform laundry or promotional products company. However, when you start digging into the economic realities of such a program, a different picture begins to emerge. Many times the perceived net corporate profit realized from such programs is a lot less than you may think. Let's take a closer look at the time and cost expenses that such a program entails, and compare that with the simplicity and ease of an outsourced plan. When you are handling all of your clients' needs you may not reach optimum profit levels.
Nothing says “great uniform company” better than “we can help you with rental programs, lease programs, and direct purchase.” There's no need to stop with just one service when it's possible to become a great company that provides them all! When you work with SmartBuy|TK we make sure that your direct sales program is best in class, and give you the foundation that's necessary to become a great uniform company, no matter your size, location, or previous experience.
Looking to attract more accounts to your laundry rental services? Improve your direct sale channel!
The effective point of view is "direct sales may be new territory for you, or you may be doing this already, but either way, you can improve your laundry rental results if you separate the laundry services from your teams direct sale services as a burden." Providing many types of rental uniforms to employees is an outmoded business model that lacks efficiency and really doesn't make sense when contemporary direct-purchase systems now allow your clients to easily purchase as few as one or two uniforms at a time.
Untapped Revenue Potential for Your Local Linen and Laundry Company
Is your linen and laundry service running out of steam? If you are searching for new revenue streams, it's time to learn more about employee apparel sales. Many of the same organizations and businesses that are your current customers also have a need to purchase staff uniforms and employee apparel. You likely have restaurants and hospitals on your client roster already, and these are also two top prospects for employee apparel sales. Learning more about a hands-off and fully outsourced employee apparel sales opportunity can give you the edge you need to continue growing your already successful business.
Employee apparel offers another profit center to your laundry and linen services. Adding a turn-key employee apparel sales service can expand your business lines without adding inventory or purchasing headaches. As a laundry and linen service, you may find continued growth difficult after you reach a certain saturation point in your market area. There are also upward limits due to your equipment and team size, as there is only a certain amount of product that your staff can turn over while still providing the top-quality service that your customers rely on.
Success in business is all about revenue growth, and the uniform industry is no exception. If you aren’t expanding your number of clients and the amount of orders they send you, you risk being supplanted by more dynamic competitors. But increasing your revenues and market share isn’t easy, especially when your current staff cannot handle additional work. You could invest in more employees and capital equipment, but that would sap your funds and risk disrupting your business. By outsourcing key functions, you can expand revenues without the cost and disruption of expansion.
What does it take to run a profitable laundry or linen service? If you ask most laundry owners, it’s low costs and good service. Laundries are constantly looking for ways to lower the price of doing business without sacrificing quality. From using water more efficiently to choosing better but less expensive chemicals to precisely calculating the way they iron, they keep operating costs to a minimum so they can profitably charge low prices.
Success in any line of business is all about taking advantage of opportunities as soon as they arise. Laundry and linen services are a powerful example of this fact. While one may think businesses that clean and iron clothes would have little potential for expansion, many of these companies grown by leaps and bounds. One of the ways they've accomplished this is by offering uniform rental and purchase services in tandem. By understanding how laundries are doing this and why it is in such high demand, you can get a sense of how to succeed in this industry.
The key to success for any business is to take advantage of all viable opportunities for growth, no matter where they arise. Laundries are no exception, which is why they are always on the lookout for ways to diversify their operations and expand their revenues. Notably, laundries have a long history of leasing and renting uniforms, along with mats, rags, and other valuable items. By understanding the benefits and limits of these rental programs, your laundry can further expand its rental programs, expanding into logo’d uniforms and apparel without skipping a beat.