How important is laundromat location??

[Abraham Shamosh]

Hi,
So I’m looking at a laundromat for sale in a very wealthy neighborhood, they all for the most part have housekeepers who do their laundry in house with their own machine. There’s like one apartment building near by though. The owner claims 70% of its income is pick up and drop off and 30% self service. He also said some of the housekeepers from the wealthy residents sometimes come to do some laundry for those residents not sure why… I’ve looked at the P and L and it looks like a pretty good investment. My question really is do I need to be concerned about the demographic and location if I’m looking to grow this thing ?

[Richard Heighington]

Location, location, location. The more traffic the better. My smallest store does the most in revenue.

[CKH]

Location is always one of the most important things when operating a business! But I think your real question seems to be whether it’s safe to invest in a business aimed at lower income customer segments if it is located in a high income neighborhood. I haven’t acquired my own laundromat yet, but it seems obvious to me that in this case you would simply focus on marketing a pick up and delivery business, since the customer base has plenty of money to support that service, and a need for it. You should also ask how long the business has been there. If it is profitable and it’s been there for years, then it seems like the answer is yes, it’s safe to acquire a laundromat in that location.

[Author]

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