Priced to High?

[MarkS]

Hello All,
I would love everyone’s thoughts. There is a listing for a mat that is selling for $236,000 so I went by there last week to check it out.  It was in a good location, parking is bad, the demographics are very good but there are also 5 mats within 2 miles.  It has an attendant but when you walk in you can immediately see the whole store needs an upgrade, equipment needs to be replaced ( 4 machines out of service), vending machines look like they are from 1970, and the walls could use some new paint.  The good news is the traffic seemed very steady.

The issue, in my opinion, is they are asking for a selling price that is at 5x revenue. This seems very high for a location that needs a full facelift in my opinion. I would love everyone’s thoughts.

Thank you
Mark

[Jake Wendell]

Oh man, bad parking and old machines with that much competition sounds scary. They’re probably asking 5x expecting to get countered at less. If you’re thinking about buying it I would definitely counter lower and let them know it’s because you’ll have to invest into some upgrades.

Also, when did you go check it out? Be careful getting excited about steady traffic on a weekend. Most laundromats have a lot of business on the weekends. Go check it out on different days and different times.

Is this your first laundromat?

[MarkS]

Thank you for the response Jake. I saw the location on a Saturday but I have plans to go by there this Monday and Wednesday for the exact reason you stated. I am looking for my first laundromat.

[Jordan Berry]

Solid advice from Jake and a good plan Mark! Try to vary the times you go on Monday and Wednesday if possible. That will just give you a little bit better picture of the actual traffic.

One other recommendation I would give is to be careful not to get sold on “potential” of the laundromat. Don’t buy potential, buy performance. This is especially true right now with all of this COVID stuff going on.

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