Think VERTICAL! That is the 1st thing I look for when organizing a space. This is so often the place we don't take advantage of. You can pack away those out-of-season clothes and shoes, party decorations, wrapping and bows up high because they aren't things that need to be readily accessible.
Here's a look at my laundry room/mud room/craft room/wrapping room:
{Please forgive the semi unorganized mess on the shelves - they've been neglected through the holidays}
The BEST way to maximize your vertical space is shelving. The unit on the right is from Target and they are my fave! Well-priced, sturdy, and you can get either 3, 4, or 5 tiers. Oh and they're 18" deep! Get the tallest, deepest storage that your space affords you.
So the next time you find yourself saying "I'm out of space" just look UP!
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