Home › Forums › Laundromats › Help! Purchasing my first laundromat
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September 15, 2021 at 2:18 pm #6901
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: $44,700Vendor 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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