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?

  1. 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.
  2. 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.
  3. 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.