October 6, 2020 at 2:37 pm #2279Michael SantiagoParticipant
Hi everyone my name is Mike and I live in SoCal,
I purchased multiple vending machine routes this past February (right before lockdown regarding current events with the pandemic) which has ultimately led me to the desire to own a laundromat. I’m looking into purchasing my first one.
I’ve just wanted to share some things that I’ve learned throughout my experience in owning multiple vending machines. Without further ado, here are some bullet points about my time with my route that I currently own:
-When making the acquisition deal, the seller oftentimes will want to tell you what you want to hear in order to make the sale, you may later find out that the seller might have even blatantly lied to you
-The seller will often sweep things under the rug in order to make the sale, hidden costs may not be brought to your attention
-The previous owner may or may not have efficiently run the business well and you will have to adapt to this accordingly
-In conducting business deals, sellers will have their own agenda and won’t have your best interest in mind, you must negotiate, find a consultant, and perform thorough due diligence
-You will be expected to perform customer service and act with professional manner in dealing with the public. Be prepared to solve problems and put out fires (metaphorically speaking I hope) when they arise
-Your cashflow is heavily dependent upon the functioning of electro-mechanical equipment, over time equipment depreciates and deteriorates, be prepared for repairs and to have the resources to fix things
-When functioning properly, it is pretty cool to have a small, self-sustaining ecosystem that provides an amenity to other people while you don’t have to be present and be there to run it. It is cashflow positive and it is heavily weighted on absenteeism with great return on time.
So after this experience, I figured going for a laundromat would be the next scalable step.
Look forward to interacting with you all, I am certainly privileged to be part of such a welcoming, supportive community!
October 12, 2020 at 11:05 pm #2315Jordan BerryKeymaster
Welcome Michael! AWESOME insight! Thanks for sharing it! I’ll highlight it on the podcast! Glad to have you in the community! Let us know how we can help out!
Also it could be cool to have you on the podcast sometime to talk vending machines! They seem to go hand-in-hand with laundromats and can be a great stepping stone for people to get to laundromats. If you’re interested, let’s talk!
February 5, 2021 at 7:58 pm #3806Oscar UribeParticipant
Hey, Michael. That’s what I love! Cold, hard facts.
And the wisdom brings me to the Latin: Caveat emptor! Caveat emptor!
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