Competition!

[Andrew Hyland]

Hello Everyone!

I’m looking to join the club and buy my first laundromat but I have an interesting question to ask. As I’ve done some research of the area that I’m looking to buy in, I’ve stumbled across the fact that there is a local chain as well as other laundries. Here are some statistics of the area.

Location Type: Small City
Population: 27,000
Number of Laundries: 7

1 of the 7 laundries in this city is owned by a couple that have 5 laundries total in surrounding towns. Their laundries have a lot of features. Option to pay by cash/cards/phones, mulititude of machine sizes, wash/dry/fold service, pickup and delivery services, and commercial contracts. All the locations have been in 2020 with brand new machines and they have 5 star ratings across the board.

With that being said, should I be concerned with buying a different laundromat having them as a competitor? This information has really put a dark cloud over my head after doing so much research of buying my own.

[Robert Anderson]

The couple with the 5 mats is just another competitor, not a deal breaker. The mat you are buying is already competing against them, which will be reflected in their revenue, and the price you pay. May even be good for you as it might keep a new competitor from entering market.

That said, 7 seems like too many laundromats for such a small town.

[Andrew Hyland]

Thank you for the help Rob! The reason why I think there are 7 is because it’s more of a small city instead of a small town. Probably 70 percent of the population in this town/city live in apartments.

[Amy Doody]

My town has about 20,000 people, and 4 laundromats. 7 Is too many.

[Sandy Keating]

Try and find something you can offer that they don’t. Overall, competition is good for business. Find out the current numbers of the mat you want to buy.

Good luck!

[Author]

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