Does the Economy Really Hurt Coin Laundromats?
Home > Laundromat Articles > Does the Economy Really Hurt Coin Laundromats?
By Brian Brunckhorst
According to The Wall Street Journal article, “Even Laundries Tumble in This Economy”, coin laundromats are closing while others are suffering with a decline in sales. While the article is an interesting read and provides exposure to the coin laundry industry, it does not accurately represent what’s really going on with coin laundromats.
I do not dispute the fact that there are coin laundromats suffering a downturn, there are others that are thriving and growing in this economy. The article does not mention this at all. Instead, it just portrays our industry in one light, leading one to believe the coin laundromat business is not a good business to consider in these times.
Real insiders know there is a reason why some stores succeed in a tough economy and others do not. Do you want to know the reason?
Coin laundromat businesses experience a decline primarily due to a change in the demographics in the surrounding area rather than the fundamentals of the business. In other words, if people leave the area due to a loss of jobs or other reasons, local businesses naturally suffers–not just coin laundromats. However, in major metropolitan areas with a stable population, there have not been a change in the customer base for coin laundromats.
So what can you learn from this?
The key take away point is that location matters especially for coin laundromats. It’s all about location, location, location. This point is so important that it is one of the key criteria I look for when I consider buying a coin laundromat.
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About Brian Brunckhorst
Brian Brunckhorst is one of the nation’s experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Coin Laundromat Business – 3 Tips to Increase Value
Home > Laundromat Articles > Coin Laundromat Business – 3 Tips to Increase Value
I’m going to let you in on a few insider secrets that determine the value of a coin laundromat business. These few tips can dramatically increase the your wealth and income whether you own an existing coin laundromat or interested in owning one.
Tip #1 – Store Multiplier
A coin laundromat business is valued based on a multiple of the net income. If you can find a way to increase the income and/or reduce expenses, the value of the store goes up. So, what are some ways you can increase the income? Some ancillary income ideas include vending machines or adding a fluff and fold service if one is not offered yet.
If you’re looking at the expense side of the equation, take a close look at the rent you’re paying if the space is leased. Even if you’ve already signed a lease agreement, there is nothing to prevent you from approaching the landlord or property owner to renegotiate the lease or request a reduction.
As you can see, these few ideas will not only add immediate income to your bottom line, they will also increase the value of your coin laundromat if you ever decide to sell your laundromat business.
Tip #2 – Financing
The caveat here is this tip must make sense for your individual situation. In other words, you’ll have to compare the financials yourself to determine if financing will give you a better return on your investment. After all, the store must generate sufficient profits to cover all expenses including the loan and have some extra to add to your bank account.
I can only speak for myself, but financing the purchase of our coin laundromats allowed me to improve my cash on cash return, pay down the note over time, and increase our equity in the business. This strategy also allowed us to eventually expand our laundromat business from one store to multiple stores.
Tip #3 – Buy a Laundromat
It is much cheaper to buy an existing laundromat for sale than building one from scratch. Think about the capital investment required to build a store from scratch. You’ll have the cost of new equipment, construction, permit fees, sewage hook up fees, and operating capital once the business opens.
To this day, I have not built one store from scratch. Instead, I look for underperforming coin laundromats for sale and look for ways I can increase the value. In fact, one of my favorite strategies is to install new laundromat equipment. Why?
- The income generated from the new equipment will far exceed the cost of debt on the equipment. Yes, I don’t purchase new laundromat equipment in full cash either.
- I can usually pay off the loan on the new equipment in seven years. The useful life of the laundromat equipment if maintained will be 15 – 20 years.
- New equipment will help you market your laundromat business. Not only with your existing customers be happy, the new laundromat equipment will attract new customers. Keep in mind the top two things that keep customers coming back to your coin laundromat is a clean, well lit store and newer equipment.
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Coin Laundromats – Their Advantages Over Other Types of Businesses
Home > Laundromat Articles > Coin Laundromat Advantages
Are you tired of working a job? Are you looking to make a career change? Are you looking for a part-time business to supplement your salary? Or, are you looking to invest in a business that makes sense? It doesn’t matter which situation you’re in because the coin laundromat business is the answer for you. Coin laundromats have several advantages over other types of small businesses.
Advantage #1
If managed and operated properly, a coin laundromat should not become a full-time job. With the proper systems and procedures, a coin laundry should not require more than 15 – 20 hours per week. Yes, you heard me correctly. This is a part-time business that works for you instead of the other way around!
Advantage #2
This business is not labor intensive where you will have to manage numerous employees. At most, a fully attended laundromat should only require one employee at all times to oversee operations.
Advantage #3
You do not have to sell anything. A coin laundromat is a self-service business that provides a basic necessity. Customers need this kind of service and are willing to pay for this service. This means you do not have to hire a staff of sales people to promote your service and attract customers.
Advantage #4
This business is recession resistant. During a tough economy, we have not seen a drop off in business. In fact, most coin laundromats are seeing even more business during a challenging economic cycle.
Advantage #5
This is a self-service industry; customers provide their own labor for free. They load the machines themselves. They fold their own clothes after the clothes are dried. That’s good news for business owners like us because we do not have to provide the labor.
Advantage #6
This business is an all cash business. You don’t have to deal with credit card transaction fees, bounced checks, or accounts receivables. Plus, customers pay you upfront. You get paid in full before customers can use the laundromat equipment.
Advantage #7
Coin laundromats are a real, proven business. This is not a start up business or one that is unproven. The risk of owning a laundromat is less than other types of businesses.
Advantage #8
This business is simple and does not require a ton of experience. That said, I encourage you to take the time to educate yourself before jumping in head first. The proper education will save you time and money.
There you have it. I covered at least eight reasons why the coin laundromat business is the perfect business. You are also starting to see why I made the switch to becoming a laundromat business owner rather than spending the rest of my life working in a corporate job.
Here’s to your coin laundry success!
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Laundromat Equipment – Interview with Brian Brunckhorst
The Coin Laundry Association just released their August issue of “The Journal”. If you look carefully, the cover photograph is a picture of my coin laundromat in Hayward, California.
Also on the cover, the association features an article is called, “It’s a Remote Possibility”. The article discusses how laundromat owners with multiple stores use high-tech laundromat equipment to manage store operations remotely (also referred to as absentee ownership).
I was one of the contributors to this article. In the article, I discuss different aspects of remote management such as:
- Working on my laundromat part-time from my home office.
- Connecting coin laundromats to high-tech remote video surveillance camera systems.
- Using attendants so you don’t have to manage the store full-time.
Read the rest of the article to get the full details. I bet it will change the way you think about the traditional laundromat business.
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About Brian Brunckhorst
Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.
Laundromat Equipment – Speed Queen Quantum Gold Solution
Home > Laundromat Articles > Laundromat Equipment – Speed Queen Quantum Gold Solution
Recently, my friends at Speed Queen invited me to tape a customer testimonial for their laundromat equipment. The video below shows how I use their Quantum Gold remote management capabilities to increase productivity and profitability in my stores.
Some of the cool features I like the most about the Quantum Gold solution include the ability to manage vending prices and water settings remotely. In addition, I receive email alerts whenever my laundromat equipment require servicing. All of the these features help me increase customer loyalty at my stores.
Click the graphic below to play the movie.
