Buying Commercial Machines and comparison to domestic

[qualin]

To PeterH770

In regards to laundry being work as opposed to a hobby....

It's a career change I've been thinking about for a very long time. I know how much work it can be. When I do seriously think about changing careers, it will be one which most likely involves the laundry industry.

We've always kind of had an entrepreneurial spirit in our family. Starting a business is one of those things I'd want to do after I've finished with my other career, which may be ten or twenty years down the line.

 

[launderess]

Thing To Remember About Commercial Front Loaders

Is that they are built to be installed under certain conditions (building structure, plumbing, etc) and if those aren't available *you* must create them or tough cheese.

Domestic front loaders must deal with various installations but the main thing is the underlying flooring.

Many buildings with in house laundries back in the day had them located on the top floors of a building. Of course this meant as the structure was designed and constructed it was built to withstand not only the weight of equipment but vibrations as well.

You look at what happens when many consumers put large domestic front loaders on second or third floors despite being assured it was possible without any "problems". You get a whole lot of shaking going on!

 

[peterh770]

But hopefully you find an existing laundry that is for sale, so you don't have to worry about the installation (or impact fees, or sewer connections, or a water line and meter, or gas line and meter, or electrical supply...) and has a customer base already upon which you can expand.

 

[qualin]

To Peter

That is probably the approach I'd take.. Build up an existing installation first.. I can upgrade it bits at a time if need be rather than to build up from scratch.

It doesn't happen very often here, but I understand that sometimes people get lucky by bidding on an auction for foreclosed laundromats... getting the entire business for pennies on the dollar... (A bit of an extreme term, but you get the point.)

If I do see an opportunity like that crop up, I'd really have to think a few times over.. like, as to why is it in foreclosure? Did the owner just take the money and run? Or were they having legitimate income issues preventing them from paying the bills?

There is a spot I know in Calgary which would be perfect to build a laundromat, but the up front costs would be downright staggering. A Quarter Mil for the land, another Quarter Mil to build the building and probably another Quarter Mil for equipment, including washer/extractors, dryers, mangle irons, vending equipment, security equipment including cameras and recorders, lighting, flooring, plumbing, heating, water heaters, electrical, gas plumbing and who knows what else.. Wurgh...

Sorry, but the only way I can afford to put that kind of cash up front would be if I won the lottery. If I won $10 million and put it into a bank account which had 1 percent interest annually, I'd be living on $100,000 a year.. but I'd also be really really really bored out of my skull too.

I know it sounds like I'm hoping for a lottery win, but I'm not.. I saw a Laundromat in Lethbridge selling for $325k... A much better investment, but only initially.. there's always a reason why someone is selling...

 

[launderess]

Reason Why Someone Is Selling...

You never know do you?

Could be they are old and or tired of running the place. Or, simply not able to make a go of it as a financial sucessful venture. That doesn't mean someone else with big ideas (based upon real world) cannot turn things around.

Sometimes it only takes sprucing the place up a bit and a bit of effort.

 

[peterh770]

But you can get a deal when looking for existing laundries. My first store, the owner was clueless. Her loss; the price was so low I nearly stole the store. The second store was a brand new build. The owner died after 3 months and the estate gave it back to the finance company. Since I had a history with that company, they basically gave me the store for assuming the loan. So there are deals out there, you have to look and then leap when you find the opportunity. OTOH, I had done a demographic analysis and watched the stores, so I new they would be money makers going into the deal.

 

[arbilab]

If one does NOT do what Peter does, one is likely doomed. That's business awareness. I'm pretty aware on some levels, but not those.

 

[coldspot]

Now another thing you could also try and it has worked here at a few. A combo store. That is say tanning beds and laundrymat. This works out great for most woman do the wash and get a tan at the same time.

I talk to the older guy aging today about his place and ask him about what he thinks of it. his reply was to the point.

Not a lot of work if self service. He and his wife do this one. He told me he opens it and does the cleaning. At clos they clean up and empty coin box's.

For any repairs he does it him self. He showed me the back room and he keeps parts on hand.

His wife said she can chage a motor and a flash. lol But the take home pay is ok not great. Water here is also billed twice in coming out going. Gas is not cheap at all.

They just raised the price of the wash to $1.75 for top load and $2.25 for front. Dryer is also changed now 25 cents is 7.5 min run time. The large front loader is $4.50

He also owns the candy and coke machine. He told me to restock is cheaper now since sams and others carry the items.

This place is self ran no one there all day at all.

Also no aircon at all. He said never had and never will. He has a large wall fan and the place is not that bad in the summer also swamp cooler in the roof.

Heat he keeps it turned down. Once the dryers are running he said it stays warm in there.

And the end he said they break even and are happy.

 

[macboy91si]

Coldspot

Where exactly are you, you describe a very similar place that I used to frequent.

_Tim

 

[qualin]

Thanks for the advice everyone.