May 11, 2021 at 6:56 am #5566Jorge BadimParticipant
Hey all, I am in my due diligence period now weeks 2 of 4. I will be a first time laundromat owner in 6 weeks if all goes well.
So I have been joining the current owner on coin dumbs and am noticing this particular laundromat does not have any systems in place.. no checks and balances.. no clear method of straight accounting etc.
He does a coin dump 2x week (Mondays and Thursdays, I noticed he does not count the coins, is this normal? He collects all the coins.. tops off the cash machines and then only counts the cash. Then at the end if there is leftover he just keeps it and takes it to the local Constar machine and that’s spending cash for the next few days. This “spending cash” is adding up to about $300-$400 weekly. I guess here my main concern is the “lack of knowing the true revenue” by not counting coins but what do I know maybe thats the norm.
After week 1 the coin collection was $2800, in addition to that there was about $850 in WDF. This is a small town of only 8500 people total, it is mostly upper middle class folks who own homes. There is a handful of rental buildings but it seems only what is required by the town for affordable housing. This laundromat has been in place for 25 years and is the only one in 2 town radius. The next town over has similar demographic. The WDF uses quarters for the machines so some of those coins from the collection are from WDF (about $30-$50 a day).
Rent is VERY high because of the location and demographic. We are talking $4300 month in rent, what are your thoughts on that?
They are saying NET profits are 40-50k a year on a 150k gross revenue. (this is factoring in the extra spending cash weekly). Machines are all about 20 year old Wascomats. Store looks to be in fairly good shape otherwise. Even the 20 year old machines look decent.
I have a lot of DD left to do but in your opinions how is this shaping up so far?
May 11, 2021 at 1:51 pm #5581
Is the mat attended? What is the purchase price? I am stressing about 2500 rent and $600 cam on 180k revenue and 35-40k cashflow
May 11, 2021 at 1:52 pm #5582
Is the mat attended? What is the purchase price? I am stressing about 2500 rent and $600 cam on 180k revenue and 35-40k cashflow with a fully attended
May 11, 2021 at 3:35 pm #5586EmersonParticipant
To accurately determine and verify how much money is going through the machines the money coming out of the coin boxes of the machines needs to be counted.
The money going through the changer machine is not revenue.
He is not even balancing or reconciling the changers. Maybe in his mind he is because the changer hopper holds a certain amount of quarters.
Really the changer or change machine should have a set or par value exact amount of quarters.
Collect and count money (quarters) from the machines (washers/dryers). Count this money, that is the sales or revenue of the washers and dryers, not the amount going through the change machine.
Put the set amount of quarters back in the change machine and pull out the bills/ trade for the bills.
Summary count the money coming out of the machines that is income, then you also better deduct the amount coming into the machines as WDF. Separate those.
————————-Also the ” spending cash” sounds like it is not being reported as revenue therefore I would not pay them for that revenue. Look at the tax records. —–
Rent is very high and above national average as a % of income.
Sorry I am typing as I am working on some work items as well and on phone.
But that rent is high enough as a % of sales that you should be careful.
Rule of thumb is to keep below 25% of sales.
May 12, 2021 at 4:37 am #5592
Common area maintenance. The place in looking at is in a strip mall and it is common for them to split maintence, taxes and insurance among the tenents
May 11, 2021 at 11:32 pm #5591startup businessParticipant
How To Start A Laundromat Business? Washing machines make it easier to finish clothes when customers don’t have a washing machine at home or need to wash more clothes than their machines can handle at home. Washing machines also sell detergents and cleaners, drying sheets, and other related items to help shoppers complete their clothes.
Laundries offer guests the opportunity to use washers and dryers. Machines can be operated with coins or cards, allowing laundry attendants to focus on solving problems instead of taking out installments and overseeing the use of the machine. Read More
May 12, 2021 at 11:40 am #5599Patrick DoughertyParticipant
Showers in Laundromats!
I’m a Theology major and had an experience on the streets of Los Angeles a big city if you will, while feeding some homeless folks. I always ask if they need any prayer for a need. I make sure I pray right then and there for them. One day a man told me what we all need is a place to take a shower. I asked him what he meant. He said that a Laundromat would be an ideal place to have private truck stop style showers. They have electricity, hot water and are easy access. Of course, I prayed with him for his needs, and his loved ones too.
With the Covid-19 shutdowns, it is resulted in higher homeless due to many factors primarily economic. The result is that there are simply more people living in their cars than ever before.
Recently observed something in a Laundromat that had two private pay showers inside. What, you say? I was on vacation in Inyo County California this is a part of the Pacific Crest Trail a popular west coast hiking trail for really serious hikers, and actually came across the only known private Laundromat that had 2 pay showers inside for their customers or the public. The shower access was controlled by the attendant, when they were on site. This was operational when the worker was engaged fluffing and folding.
This really blew me away, when I saw it, brilliant a win win. I talked with the owner and discovered some very interesting things I would like to share with you. For safety the showers are temporarily closed due to Covid-19 restrictions in the County. However, they expect to open them again soon.
I don’t have to tell you that Laundromat owners are always looking for cash flow to pay the bills, and things that provide a needed service.
I will share what the owner said they have a worker “Fluff and Fold” service, and that worker also cleaned the showers. They charge 5.00 per shower and that includes a towel to utilize. Interesting.
I was recently camping and discovered a campground that charged 3.00 for 7 minutes. They did not provide a towel. But I from the experience discovered that 7 minutes worked well for both men and the women separately that used the shower. It was enough time for both to soap and shampoo. The timer kept things moving along. The average shower total time was about 10-15 minutes total due to dressing and getting their items together.
For this laundromat, prior to Covid-19 the showers were being used, daily. What? That’s right people were using the showers daily 7 days a week.
So, in building a new laundromat, or even renovating one, give consideration to adding two or three showers to your plan. Unlike your home, a pay shower a person needs a private space to dress, hang clothes on a hook and sit. Please consider having one that can accommodate a wheelchair. I know this sounds difficult but it’s a lot easier than you think. It’s an ADA shower area with fold up bench and a shower head that can be moved, and it can still be used by a non-challenged person. They are easy to clean too.
Laundromats have infrastructure for showers already. This could work well especially your area.
Folks, this is a really good service that generates income. I don’t have to tell you that it all adds up. People who need showers also need to do their clothes, and if you have a one stop shop, it can work for you too. This could easily generate at 5.00 per shower, this could generate more income for you, while providing a needed service.
Based on this its a win, win. Needed service, that generates income. The local county did not have issue, no planning challenge either.
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