Home Forums Laundromats Help! Purchasing my first laundromat

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    Marco Calabrese

      Business detials:

      Asking Price $200,000.00 CAD
      Sqft; 1200
      9 Washers (Dexter installed 2018 supposed value $140,000 CAD)
      8 Dryers (Dexter installed 2018)
      ATM Machine (Purchased 2020 value $3700 CAD)
      Soap Vending Machine ( Purchased 2020 value $1500 CAD)
      Ozone Machine (Purchased 2020 Value $10,000 CAD)
      Vending Machine (unsure how old)
      Security camera and DVR
      Various inventory valued at $2000 (laundry bags, carry bags, soap, food for vending machine)

      Annual Income:
      Machines: $66,000
      Wash N’ Fold: $17,000
      ATM Machine: $1500
      Vending Machine: $2300
      Total: $86,000 Gross income according to the vending (even though the numbers don’t add up)

      Annual Operating Expenses:
      Rent: $32,000 (includes base, CAM, taxes)
      Insurance: $2800
      Electricity & Water: $4700
      Gas: $330
      Cleaning, Wash n Fold supplies: $3600
      Equipment Supplies: $1200
      Total operating expenses: $44,700

      Vendor is claiming total NET Income is $42,300 annually.

      4 sizes of machines – 3 double load @ $3.75, 3 triple load @ $5.25, 2 four load @ $6.50, 1 six load @ – $9.50.

      There are 3 other Laundromats that are a 5 minute drive from this location.
      One of them is small and very run down. I doubt the offer much competition
      The second one is slightly bigger and offer wash n fold service. This location is a bit dated but seems pretty clean.
      The third is the biggest and is attended. The machines are old and the location is dated as well. They offer wash n fold as well as alterations on site
      The locations I’m looking at compared to the other Laundromats is by far the newest and cleanest one.

      There are a lot of apartment buildings in the surrounding area however, the neighbourhood is going through a lot of gentrification (with new condos being built in the area).

      My dilemma is I don’t know how to verify if the demographics can support four Laundromats in such close proximity?

      Secondly, they currently offer wash n fold and pick up and delivery but I would have expected their net income to be more with all the services offered. Having said that, according to the realtor they are running it themselves (no employees). If I purchased it I’d have to hire at least one employee and at $16.00 and 24 hrs a week that would cost me $32,000 at the end of the year eating up a lot of the net proceeds.

      Now that you have the full picture do you have a recommendation on what you think a fair offer would be and do you think it is a good acquisition?

      I don’t think the business is worth more than $150K.

      Any help would be greatly appreciated!

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