1. The Idea
In
some Cities in the Southern parts of Nigeria (I have not stayed in North in
recent times), there are a good number of Laundry services providers, catering
for different customers in different income brackets. Both the higher and middle class do patronize
the services of Laundry service providers. Whilst some may have a washing
machine in their homes, some others might just feel like passing such
responsibility to someone else (preferably a Professional). If there is a
complementary service attached, this could attract and encourage customers to
use this. Students and some lower income households could also be catered for
and may not have so much money to pay for the regular laundry services. Which
leads to this week’s idea.
Idea Summary
The
Idea for today is for the new startup to create a Do-It-Yourself type of
Laundry Service where people can come with their laundry bag and are charged a
certain amount per Kg. E.g 40-80 naira per Kg. So the customers can pay about
400-800 naira for 10 Kg of clothes they want to wash, then an extra 100 naira
to use the drier. You could also make some revenue from selling detergents too.
So instead of the customers to pay a Laundry service about 250-600 naira per
clothe (though this normally includes ironing too), they can use about same
amount to wash and dry about 15 pieces of clothing (depending on their weight).
This will be good for students and those who live in crowded compounds that
would not want to lose their clothes when they wash them and spread them
outside to dry.
Business Operations
So
the customer comes in, meets an attendant, weighs their laundry bag, pays
depending on the total Kg, then the attendant assigns them to a free Machine.
Gives instructions and directions to first time users. They finish, move on to
the drier, get their clothes dry in like 5 minutes, Put it all back in their
carrier bag, and off they go. They could
also pay an amount to use the Iron, e.g 200 naira for 15 minutes, or however.
Careful
thoughts needs to be put into this and the service provided should offer other
added complimentary services that would encourage people to come use the DIY
laundry house.
Complimentary services can include:
- Free Wifi : Customers can be working while they wait
- Free Library: Doesn’t have to be massive, a few books could suffice
- TV and DSTV
- Networking Opportunity
There
are two (2) types of customers here
- The One who comes to do their Personal Laundry
- The regular Laundry guy with no personal machine of their own
With
this setup, many young people can become employed, as they could open their own
laundry practice even if they do not have their own workshop and Machine. They
can charge their clients, pick up the Laundry bag, Get the Job done, and make
their Pay.
2.
The Business
- Value Proposition: DIY Laundry services for personal use and a ‘work-base’ for intending laundry service providers.
- Customer Segment: Students, and other young professionals, Low income homes too.
- Distribution Channels: DIY Laundry House, dedicated phone line for inquiry and booking, sales team and customer service reps etc.
- Customer Relationship: Direct
- Key Activities: Laundry Services (Clothes Washing, Drying, and Ironing), Sales and Customer service
- Key Resources: Sales team, The Work Equipment and facilities, management team, Sales Attendants and other support staff, etc.
- Key Partners: Association or Union of Laundry service providers, Local Council,
- Cost Structure: Workplace facility and equipment (Washing machine (not regular type), drier, Pressing Iron and tables/Boards, Detergents etc) Maintenance and other utility bills, Staff wages and Salary Bill, registration and licensing (Relevant council agencies and other documentations).
- Revenue Stream: Payment for service usage, sales of detergents, payments from other complementary products provided.
3.
Competition
Depending
on your location, there may be competition from existing laundry service
providers. But as for this type (DIY laundry service), it is still relatively
new in most cities in Nigeria or even non-existent. You would need to
understand the nature of the competition and how you will need to compete. If
you open the first DIY in your City, be sure that new people would attempt to
open theirs too, especially if you seem to be making good revenue.
4.
Risks
This Business is driven mainly by the Washing machine,
Drying Machine and the Pressing Iron, and so would be highly affected if any
one of them goes faulty, so a regular maintenance check should scheduled and
care should be taken to ensure that the customers are using the equipment in a
safe manner.
So there is the Risk of equipment failure, Electric shock,
Low customer patronage etc. But with good preparation and anticipation,
proactive steps can be taken to mitigate the risks.
Summary
Students at Tertiary institutions in Nigeria would appreciate
this, as they would not have to spend valuable doing their laundry, spreading
it on a line and watching it against theft or some other person mistakenly
taking it. This sort of center will do well in crowded residential areas too
(Loads of Face me I face you). There’s more to this Idea, but this will be all
for this week’s article.
Thanks
for following this series.
Till
next week, stay inspired.
ARTICLE
BY MR EBIS
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Mr. Ebis on twitter @mrebis
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