Coin Laundry History? [Archive] - Coinwash The key to a successful Laundromat Business.

Howard

10-04-2002, 01:05 AM

I actually researched this on the net a few years ago.

"Laundromat" was a play on "Automat". "Automat" was a restaurant (Horn and Hardett) that dispensed sandwiches, pies, etc. through windows that were opened by inserting coins (pretty much like today's vending machines). This was around 1945 or so and it wasn't really automated. It was just a gimmick (they had people replacing the food from the back all the time).

A guy in either New York or Baltimore (no one was certain where it got started) named his coin-op washing machine business "Laundromat". According to one report, his business was on Saratoga Street in Baltimore, Maryland; two or three stores away from the H & H Automat.

I have heard that the name "Laundromat" was copyrighted and then lost by generic use too, but have never found any authoritive reference.

By the way, in the 1950's, car makers caught on and started calling everything automatic or Mercomatic, and so on. This was still the era of stick shifts.

Maybe you can fill up your essay with relatively easy to research "automatic" derivatives.

buddy

10-04-2002, 11:41 AM

May be we can start calling it Laundromatic once we put Card System in our Laundromat.

Howard

10-04-2002, 12:36 PM

I would think the trends would be toward "Microwash" , "MacroMat", and "Solid State Spin".

anonymous

10-04-2002, 07:44 PM

J.F. Cantrell opened the first "washateria" on April 18, 1934 in Fort Worth, Texas. It had only 4 machines.

However, Bendix Appliances invented the automatic washing machine in 1937. (So what were those 4 machines -- wringer washers?)

Early laundries were open specific hours, and since they did not necessarily feature coin-operated machines, there was always an attendant on duty. Some even required that you make and appointment!

The word "Laundromat" was registered as a trademark by Westinghouse Electric, a subsidiary of White Consolidated Industries on Oct. 1, 1947. Westinghouse listed the word as first being used in commerce on Oct. 26, 1940, and renewed the trademark in 1988. (So if you have the word "Laundromat" in your signage, BEWARE!!!!!!!!)

The first unattended, 24-hour self-service laundry in the U.S. was opened by Nelson Pruett in 1949 on North Loop in Austin, Texas approximately where the present day "Room Service" is located (as of April 18, 1997).

According to the March 1950 issue of "Nation's Business", there were an estimated 4,000 self-serve laundries nation wide at that time.

Kitty -- I used Metacrawler as the search engine for the above. Maybe you could find more.....

Kitty

10-05-2002, 12:17 AM

Thanks this will be a great start!!! Any others with trivia?

Now I will need a middle and an end. I bet I have enough BS in me to write about the present laundry industry. BUT, I think I will have problems about where the laundry industry is going. I'd love some thoughts....

anonymous

10-05-2002, 09:45 PM

Kitty --

I was raised in this business and have realized that the more things change, the more they stay the same. This is such a fractured industry. The reasons for getting into the biz are so varied. Some want multiple small unattended laundries that require minimum amounts of owner supervision. Others (like me) are more interested in one larger store -- a place to go every day that might require employees and a large amount of supervision. Some owners are "retired". Others (like me) have an ongoing passion for the biz and want to see how far they can push the envelope.... even if it means going against the conventional wisdom.

The newest thing I've seen is the large chains like Spin Cycle. From articles I've read in the Journal, they talk a good game but I'm unconvinced that they can support a large corporate hierarchy over the long haul, no matter how many "economies of scale" they think they are capturing. The laundry biz is unique among other retail businesses. Generally speaking, we have rather slim operating margins, and as rents sky-rocket in many areas, that skinny margin is going on a severe diet. I have seen so many laundries fold when the first rent increase went into effect. Similarly, two of the laundries in my area closed forever when they lost their leases and could not afford to open elsewhere.

Laundry mitigation fees, designed to slow down growth and punish high water users, are starting to have an impact in both large and small communities. One of our WA State CLA members lost their lease, found a new site, were ready to move in, and the city told them they would have to pay mitigation fees of $1,000 per washer even though they had already paid the fees at the old site. They argued that they were moving less than 4 blocks away -- no go with the city. They ended up selling off their equipment because they couldn't afford to pay the fees twice in less than 5 years. Especially not on top of preparing the new site for the laundry. What a shame.

I occasionally post a sign in the store reminding people that my laundry SAVES our community over 2 1/2 million gallons of water per year due to large capacity, water efficient washers. Part of my "Wash Smart" yearly promo. Less soap, bleach, etc., going into the city water filtration system, too. I personally believe that home washers and dryers should be outlawed as enormous water and energy hogs. But just try and make that political kite fly.... well, a girl can dream, can't she?

Coinwash

10-05-2002, 09:53 PM

Bubbles that's a TKO STORY

KNOCKOUT that was good. Bravo well done.

Kitty

10-06-2002, 09:31 AM

There is such a variety of stores that it will be interesting to research the industry. Here in our area, there are no impact fees, and I cannot imagine how long it would take to be profitable if we did. Impact fees are just a way for cities to pay for their water systems!!!

Laundries constantly are in need of reinvesting in equipment. We keep the equipment as long as we possibly can as it is so expensive to replace. I have seen so many stores who simply rape the business for what they can and never reinvest, others I have seen purchase big, uptdated, expensive stores in the wrong location, in the wrong market. It doesn't seem to be a business for everyone, but more and more people are looking into the biz, and "investing" into one, or more store.

Daves parents profited so much more when they vended at so much less than today. The profit twenty years ago was incedible, competition was limited and it was fairly easy to control the market. Today, the utility rates, equipment rates, payroll, taxes etc, limits the profitablity of this business. I think the only way to continue to remain profitable is to stay ahead of the game and work at it.
Thanks!

Ken

10-06-2002, 10:41 AM

Bee smart Bob sell a little book about laundry history,cost $2.

anonymous

10-06-2002, 07:29 PM

Yes -- this is a mature industry. So to do REALLY well you need to be different. Small incremental changes, even a little experimentation can have a tremendous impact on the bottom line. And when it comes to the customers, it really pays to keep your word.

PERSONAL CASE IN POINT:

I am the 3rd owner of my laundry. The original owner built the biz 4 blocks off the main drag in an older, medium population, residential section of town in 1969. Regional Coin-op Beautiful Contest winner in 1970. Good customer base, and no competion within 4 miles (he later added another laundry 3/4 miles away.... it's still there). Over time he replaced only what he absolutely needed to replace -- oftentimes with used equipment. Sold the original store (to an idiot) in 1987 when gross was $100k per year with a 20% profit margin, so his take home pay was $20k per year from this location. I know because I managed the store for the original owner.

The new idiot owner never put a dime into the place and ran the poor store into the ground. It was a hang-out for kids, drug-dealers and gang members. When original owner reposessed (six years later), the store was grossing less than $80k per year, the idiot couldn't pay all of his utility bills and still eat, and there were 27 broken machines.

Enter yours truely. I took over the original business loan after the first owner fixed the machines and paid the outstanding utility bills. I couldn't afford advertising, but word got around that the "old manager" was back at the helm. I personally ejected the kids, drug-dealers and gang members. I told everyone who would listen that my goal was to replace a little equipment every year and to eventually offer the cleanest, state-of-the-art laundry this entire COUNTRY had ever seen. That was 8 years ago. All equipment has been replaced as the laundry could afford it. This will be the 3rd year that I gross over $300k with a 25% profit margin (that's after debt sevicing, folks, and I'm only open 6 days per week), so that's $75k take home pay. Even after adjusting for inflation, I'm doing MUCH better than the original owner, and I can ask top dollar should I wish to sell. But why would I??? I still have some finishing touches to put on my little goldmine (replace the 33 year old flooring, bulkheads, seating), and then I'm going to buy the building as soon as my latest equipment loan is paid off.

I have the oldest laundry in town, the most expensive (my prices would make Donald Trump weak in the knees), and I have a customer base that others would KILL for. I regularly bring in folks from a 10 mile radius -- some drive over 30 miles to get here, passing many laundries on the way. I have received referrals as far away as Yellowstone Nat'l Park and Yosemite from travelers!!!!!!!!!!

And do you know what the customers are constantly telling me? "Gee, Ann, it's so nice you've done all this for us. You said you'd do it, and you really did". And they NEVER mention the prices.

Amen.

Kitty

10-06-2002, 08:27 PM

I think the key to dominating the market is customer service, and attention to detail. The mats who do not promote patronage or put forth much effort will not succeed where another owner produces consistent, superior services....

Kitty

10-06-2002, 08:32 PM

Where do you think the industry is heading???

anonymous

10-06-2002, 09:24 PM

I think you partially answered that question, Kitty. In the last 2 years we've had unheard-of rate increases in utilities, and I haven't seen any rents go down, either. With the COST of running the laundries jumping up substantially, many owners of attended laundries might try to cut costs by doing away with employees rather than raise prices. Or run unattended laundries AND raise prices. WRONG thing to do. The prices MUST go up at most the laundries in the U.S. or those businesses will fail. But without good service and a friendly environment, why would the customers return? Those laundries are doomed.

The survivors will be stores like mine that have been preparing for several years to run as cost-efficient as possible by replacing old equipment with energy/water efficient machines. PLUS providing the customers with a good solid staff that will go the extra yard to make those customers feel as comfortable as possible. Helpful/compassionate clerks (I have clerks, not attendants) will only increase clientelle. I do not pay minimum wage -- I pay $10/hr. for my gals. And every one is a winner. Every other month I treat them to lunch at a good waterfront restaurant and make sure they know they are valued.

Think about the department stores that are popular. Right now in our area, the newly opened ultra-clean Walmart is going to drive the local dirty K-mart into the ground. The clientelle wants value beyond the price-tag. Higher end stores like L.L. Bean and Nordstrom do well because of their outstanding customer service. They survive tight times because of the value beyond the price-tag. It has already started in the laundry biz.

Large or small, corporate or proprietor -- the survivors will be the most efficient, best looking, well staffed laundries in their communities. Plus, those same utility and rent costs will keep new industry entries to a minimum, unless the new owners have VERY deep pockets. I see fewer, slightly larger laundries in the mid to larger markets.

Don't believe? 5 of my closest competitors have gone down the tubes in the last 2 1/2 years. All were well established, and all were inefficient, understaffed, and rather messy places. Just like mine USED to be. Well, I have their customers now, even though I always charged more.

Fred50

10-07-2002, 08:33 AM

Bubbles,

I agree with you and I wanted to add one thing. I think the one place that the majors (Spin City, Laundromax, regional chains, etc). have failed miserably is in customer service. This includes keeping a clean store. I don't think that a chain can compete long-term with a well run, clean, customer friendly local mat.

There are other reasons like corporate overhead, mismanagement, and overbuilding for the big guy's failure.

anonymous

10-07-2002, 04:52 PM

The stores that make the most money are those that give added value to the customers. If a new customer mentions that my store has higher prices than they are used to, I tell them that I don't run a "discount laundry". All my machines work, or are plainly posted, equipment is repaired or replaced in a timely fashion, the store is ultra clean because of full staff, questions are answered and problems are solved right away. If a refund is warranted, it is given promptly. If something unusual happens, I am only a phone call away.

The best customers (tidy, friendly, appreciative) have no problem paying more for this type of added value. As far as I'm concerned, the whiney nit-pickers can go down the road to my closest competitor. That mat deserves all the flakey troublemakers because they run what MY customers say is a "ghetto laundry". (I almost fell over the first time I heard the term.)

PeterH

10-09-2002, 11:25 AM

Bendix Home Appliances made the first automatic washer in 1932. Blackstone made the first automatic top load agitator washer shortly after. Then the War came along and everybody was put to work for the war effort. You can find numerous magazine ads for sale on eBay showing women hanging out their wash, happily forgoing a Bendix until the war has ended. Other ads show sailors awaiting their turn to use the Bendix onboard. Once the war was close to ending, in 1946-47, the race for the home market began and appliance manufacturers started putting their products on the market.

pete f

10-10-2002, 01:19 AM

Bubbles; I do not really agree with your comments about doing away with attendants. It might work in your area, maybe not in mine. I bt a very marginal attended mat several years ago and converted it the day I bought it to an unattended mat. Since then it has been a very profitable business. It has the newest equipment around, has a/c and very clean. And I lead pricing. I have a mat about 4 blocks away, so not like I own the market. I work hard for it. I do agree with having nice equipment, very rare Out of order signs, and get those fixed quick! Refunds and being available to your customers are great PR builders. The biggest differnece between us is having a employee..

MARK: I do not know about Spin City, but Laundromaxx was sort of local. They had great customer service. I see the problem as one that is part of a trend that is the road to doom.
Laundromats do not operate like Home depot or Sam's Club. It is not a destination business. It is a very local business. The spin city, Laundromaxx, etc had a great idea, but wrong market. People are not going to drive out of thier way to go to a l'mat. They go to the closest one that is clean enough for them. The stores built by the companies mentioned were to big for thier market. Anyone building a new store that is more than 1 1/2 times the size of the normal average store in the market you are in is commiting financial suicide. The distribs will tell you different, bigger is better. Then real numbers, and common sense, will tell you the truth. Here is an example; the new store is going to steal 30% of the business from the 3 nearest mats. Well, assuming you can do that, fine, if you got a mat the same size as the ones you are stealling from. If you got a mat 3 times the size of the others, than you need to steal all the biz from those 3 mats to fill it. Simple economics. Of course you would never steal that much business, so you go thru cash untill you have no more.
bad business plan. Great idea, though.

anonymous

10-10-2002, 04:23 PM

Pete --

The unattended laundries in my neck of the woods are just horrific. Most of the mats have somebody there at least part/all of the day, but even so they are nothing to write home about. Sometimes I truly believe we live in the messiest part of the country. Also, in this area, leaving a store unattended means you may not have any washer or dryer doors left when you check in!!!!! Most of the stores in this area have no video security -- I don't think they can afford it.

We are constantly getting "cased". Just this last Monday one of my gals had two men come in (without laundry) and ask how secure their clothes would be if they used the drop-off service. Just as I had trained her, she very proudly pointed out the security cameras, motion detectors, sirens on the outside of the building, and told them that we record 24/7. According to her, they couldn't get out of the store fast enough.

I do realize that all areas are different..... Wish my area was a bit more like yours. Would save me about $40,000 per year net (payroll minus drop-off).

Fred50

10-10-2002, 04:49 PM

Pete,

Every area is different! I must respectfully disagree with your comments about relative store size. I am currently bldg a store that is about 3.5 times the size of my nearest competitors. In my neck of the woods, the "little guys" are generally getting crushed for several reasons.

The mats have put no money back into their stores in at least 20 yrs, and they probably haven't cleaned them either. They are mostly absentee owned or just plain neglected.

I compare new mats to new houses. Houses 30 yrs ago were built with small closets, small kitchens and unfinished basements. Today, houses have more bedrooms and bathrooms, larger kitchens and more storage space throughout.

The old mats in my area are the same way. They are not designed to handle current volumes: narrow aisles, dark interiors, limited folding space. You get my point!

I am also talking about a very densely populated area, so you pass 6 or so mats every half mile.

In addition, most of the existing mats are isolated with very limited pkg and few walkers. I will keep you posted, but I know that my mat will do very well and it will give me better returns than any thing I have researched in the past yr or so.

Large, attended, clean, new mats do extremely well in my area. I agree that this strategy does not work everywhere and the basics of business still apply here - give customers a high level of service at a reasonable price!!

Note that I am a few months from opening and locals are already clamoring for me to open.

Kitty

10-10-2002, 05:11 PM

I think the bottom line of any mat is based on the service it provides and how well the owner/operator is able to consistently deliver that service.

We all have an idea of the big, updated mats that seem to be built by our own trusty distributors, and maybe in your market Marc things are different. I understand what Pete is trying to portray. Many large new stores buy with the visions to put under any store in their market. I understand that any mat that has not been keeping with the necessities of the business then they have snoozed and deserve their business to be challenged. However, many new operators go into areas that do not warrant one, many do not do the necessary homework that enables the newbie to come to an educated decision. These types have no committment to work the mat, nor care about the clientelle who use the mat. There is no friendly caring atmosphere in these types of stores. These stores may be new, big bright and updated, but many lack the customer service and friendly neighborly attitude. These owners do not realize the return is greater if customer service and hands on management are consistently delivered to the clientelle they want to entice and retain a business relationship with.

anonymous

10-10-2002, 05:23 PM

Mark --

Good analogy!

When my mat was originally built in 1969, it had 30 TLs, 14 DLs, 5 - 25# washers, and 1 -- 40# washers. The owner thought we were getting a new Navy base over the hill from the laundry. It took 26 years for the base to finally be built, so the equipment mix in the store was never quite right. The base opened the year after I bought the store, but they have a 40 TL facility at the base. So I started retro-fitting with bigger (way bigger) machines to handle the family-size Navy laundry. Because my store was over 3,200 sq. ft.(interior), I was able to really capitalize on this. Golly those big hummers do well !!!!!!!! The smaller stores have not been able to cash in on having Navy families in the area as much as I have. Just not enough space to cater to both little and big laundry loads.

anonymous

10-10-2002, 05:32 PM

Kitty --

Even though my store is big compared to many, we still have that friendly, neighborhood feeling. Probably because it's a retrofit, and we always look slightly unfinished, but also because of the friendly clerks. Makes people feel welcome, and none of us "put on airs". I make sure that my gals and I dress slightly "under" that of most of my female customers. Little, subtle psychological things like that go a long way, and are NEVER detected by the clientele as being manipulative.

Kitty

10-10-2002, 05:36 PM

You have to provide your customers with services that will fit their needs, if you do not grow with the needs of your market then you lose your competitive edge.

When the new store was being built, we felt we did not have enough large capacity fronts that would compete with the new store. We purchased 6 35's as we already had 5 35's and several other large capacity in various sizes. When we were considering this purchase we found that the 35's were the most used machines, fities did the next best, then the tops...... We have a large variety of machines in this store, due to its age, the cost of reinvesting and the choices available at the time of purchase....

anonymous

10-10-2002, 05:40 PM

Amen to that!!!!!!!!!!!!!

Fred50

10-10-2002, 05:47 PM

A follow up to my original note:

Most of the local mats have tops and a few 18/20s and 30s and the household size is approaching 4! There is definitely a need for larger machines if nothing else.

If you are asking why no one has built a new store here before it's because there was no space.

pete f

10-10-2002, 05:48 PM

Mark, I hope it works out for you. Please post the ratios as time goes on. I am just doing simple math, and what I have seen, and what I have heard first hand. My question will always be, if there was a real need for a mat in the place you are building, don't you think someone in the local area that already owned a few mats would have already done it? My math works out, I hope you can prove me wrong..
Bubbles had a store already in existance, and a base got built near it. That is being in the right place at the right time. And a whole bunch of potentail customers that are new to the population. I reckon that to the slot machines in Vegas,, someone has to win sometimes...

A well located mat will have people doing laundry no matter what the circumstance, water running on the floor, old machines, etc, some are just "right". Building a new one does not mean you will get them. When I bought #4 there was a constant stream of water on the floor to a drain, 1/3 the washers had OOO signs. yet the place was doing the same amount of business as it has 3 years previous. The strange thing was as I improved, stopped leaks, put in newer stuff, the revenue never changed to much. Only when I did a major remodel and new dryers did things pick up substantial.. point is do not underestimate the local mat, no matter how crappy it may seem..

I will not get into the atendend/not. It is a very local issue. Here they built mats on every corner and sold them to retirees for second incomes, easy to run, back in the 60's.. They were alwasy unattended. As time has gone on serious operators have redone stores. Most have security. Depends on what you are comfortable with..

anonymous

10-10-2002, 06:36 PM

Well, for Pete's sake!!!!!

And here I thought I had made an informed decission to buy my store based on historical documentation. ;)

Also -- most the single sailors do their wash on base, or ship, or send it out through the base pick-up service. I had no idea they would put such a large FREE laundry facility on base.

Many Navy wives, however, drive several miles to come to my store. The closest apartment building is over 1 1/2 miles away, and only 2 blocks from my nearest competitor.

Thank the Lord that I hadn't built a new store! Retrofitting turned out to be just the right situation to be in, since I could tailor the equipment sizes to the expanding clientele over a period of years.

JeffLange

10-10-2002, 06:54 PM

Mark,
I wish you luck. I lived in NJ and have cousins in the laundry business up there. They have looked at many large stores for sale and found most to be a poor return on investment. Many large stores only break even. It sounds like the distributor has you all pumped up. What town in NJ are you opening in? Are you near Kirby, because he will give you a run for your money.

good luck

anonymous

10-10-2002, 07:03 PM

Mark --

When I bought my store, I had nothing but a bunch of rundown equipment and my own enthusiasm. Well -- all my equipment is now shiny and almost new, I still have my enthusiasm and I have buried the worst of the mats in town.

Go for it, Mark, and don't be afraid to push the envelope. You'll do fantastic!!!!!!!

Is that Micky-Ds open yet? I wish I had that kind of draw! Don't forget to keep us posted. Hey -- what are you calling your store?

Fred50

10-10-2002, 07:17 PM

Pete,

There was actually a lot of competition for the spot. The locals are small single store operators, so they were not in the picture as far as the landlord was concerned. The largest operators in the state were vying for the spot as well.

All of the other stores in the strip are large national chains (or at least large regionals) that are all major draws.
I am not suggesting that the small stores will all close and that I will get their business. Actually I don't need a large portion of the projected laundromat market as the population is so dense.

I will post my margins and ROI when everyone else does the same. In the future if Jonathan posts a survey of profit margins and ROI, I will certainly participate.

I agree with you Pete that plenty of folks have foolishly built (or overbuilt) new mats based upon distributor projections and they have failed. I know first hand as I have looked at buying several of these from the original owners and it still didn't make sense at a discount
.

That is why you and others always stress doing your homework. I have developed my own projections based upon over a year of intense research in the area. Note that this was not all done based upon census data, but also on practical discussions with local merchants, homeowners, apartment dwellers and laundry customers.

I also agree as others have mentioned here many times before that an existing store is generally a lower risk proposition. However, you have to be able to find a suitable one at the right price. In some area, it can be less expensive to build new than rehab - think union labor and a tight labor force to boot!

Now for the last point of this long-winded post:

Pete, I have tried to understand what a market of unattended mats is all about even though that is unusual in my market. So, please try to understand why and how it may be a good idea with outsized returns to build a large new mat in other markets.

Fred50

10-10-2002, 07:30 PM

Jeff,

I agree that most large stores FOR SALE in NJ are a poor investment. Keep in mind that most large, successful stores here sell for 5 to 7 times net amd sometimes more. I don't see how you can make it on those numbers either.

The lousy ones are asking those kinds of multiples as well. Now does building start to make a bit more sense?

Thankfully, I am nowhere near Kirby. Kirby, that's a compliment!

Why do most folks on this board think that someone who is pumped up about a new store has been sold a bill of goods by a distributor?

Bubbles,

Thanks for the encouragement! Mickey D's won't be open for a while, but then again, either will I. The name will be Laundry Room.

JeffLange

10-10-2002, 08:12 PM

Who is using union labor to build a mat? What type of equipment are you going with. I will cross my fingers for you.

good luck again.

Kitty

10-10-2002, 10:22 PM

Marc, please do not assume you are categorized in the asshole
distributor sold, store owner position; as you definately have not been deemed so. Do not take it personally on how some feel about new store owners. As we have established the laundry industry is a mature business, and......... whenever a new business finds itself into YOUR market you'll find yourself slightly perturbed at the fact YOU must work harder to maintain, retain or gain the market share of laundry customers. There are only so many laundry customers per capita..its a bitch for the current mat owners and a gamble when a new store ventures into an area......

Fred50

10-11-2002, 08:33 AM

Kitty,

Thanks for calling me a non-a--hole! That's the best thing anyone said to me all day.

I completely understand the attitude towards new stores in general. I know that after I build my store, I will never want anyone new to ever come in my market. The reality is that it will happen eventually.

I also have seen several overbuilt areas with price wars (.50 to 1.00 per 18#er). I don't understand the mentality of some people. Well actually I think that I do.

I have met some of the folks that think that they will crush everyone within miles (ego overload). I also know of distributors that are in the business of overselling, taking back the store, selling again to the next schmuck and on and on...

I pity these fools as well and I don't believe I'm one of them. Time will tell!!

mike

10-11-2002, 12:43 PM

Another reason to own your own location: Competition will count on closing stores that are only rented, but they know that it will be harder to close someone who owns the building, as they are usually there to stay for the long haul.

Anonymous

10-11-2002, 02:00 PM

Actually that is the reason that most people should rent not own a location. There are a hell of a lot of stupid people in this business (no I'm NOT calling you one of them) who don't understand the first thing about being in business, any business. The building needs to make a valid economic return. Those that think their costs are less because the don't have to pay rent are getting a subpar return on their investment. If they cannot pay themselves a market rent then they should be closing the mat and renting the space out to something else - or selling the building.

Kitty

10-11-2002, 04:22 PM

Ive got to get the info for my paper. I would love to hear what any of you think on a few questions.......

What effect is the hispanic population having on your business?

Where do you see the laundromat industry in 5 years, 10 years?

What is the biggest issue facing the industry today?

Thanks. Kitty

Anonymous

10-11-2002, 04:48 PM

Hispanics are what is saving this industry - they are the best customers around. The are respectful, honest, treat the equipment nicely, have large families - they are my bread and butter.

I don't know where the industry will be in the future, I think it depends on your market.

The biggest issues facing the industry are utility costs, impact fees, high rents / building costs, employees.

Kitty

10-11-2002, 04:58 PM

I too, think the hispanic clientelle are the bread and butter of the industry, but what makes it all difficult is that so many of the hispanic population are unaccounted for and illegal. Its hard to determine a great area unless you know where they are heading to.

When I ask where do you think the undustry is heading I am asking an overall question. Do you think the industry will become cashless? do you think more cities state will impose the impact fee due to water costs and the current state of the 5+year drought in the southeast? Or do you see current home washers being eliminated and more efficeint washers more costly and possibly increasing laundromat business? Or as DAve says, do you think Tommy Hilfieger will make disposable clothes?? :)

Anonymous

10-11-2002, 05:13 PM

If they ever do start making disposable clothes, I want to buy a landfill.... and charge appropriately!

anonymous

10-11-2002, 07:11 PM

Kitty --

Everybody is pretty much in the same boat when it comes to utilities (Natural Gas and Electricity) and will charge accordingly. (Except maybe in Chicago where they are Free-Dry crazy!) ;D

In the future, mitigation fees and rents will be a crucial factor in laundry survival. Remember that all states must adhere to the federal Growth Management Act and adopt plans to limit urban sprawl, and the cities and rural communities must follow suit. Almost all communities have some kind of plan. Recently, the enforcement of the rules of the Act have been a bit wishy-washy, but this will tighten up in the future as population increases. As urban centers are forced to house more people and businesses, space will be at an incredible premium, driving rents up to the stratosphere.

Mitigation fees will eventually have a big impact nationwide as a method to contain urban sprawl. Some of our smaller communities here are adopting a "no growth" attitude to keep their towns small with that rural feeling. The mitigation fees are a way to keep new businesses away that would lead to what they believe is excessive housing growth. Lack of water is not a major concern in Western Washington! Sewer is a bigger factor, as some communities have grown so large, so fast that the population has outpaced the waste management facilities. These municipalities have also started charging mitigation fees on all new building (even homes) to slow growth. With population increasing over time, I see more mitigation fees popping up nationwide.

Ergo -- in the future, if a laundry's lease expires and they must find new digs in an area that charges mitigation fees on a per washer basis, will that laundry be able to afford the move? Some of these fees are as much as $2,000 per washer (here) and it makes no difference if it's a brand new facility or existing equipment going into a new location. Locally, we have had some laundries go out of business and auction off equipment in this situation. Could wide-spead high mitigation fees have an affect on new entries into the industry? I would think so.

In 10 or 20 years I would expect to see fewer laundries nationwide as community governments adopt mitigation fees to slow growth in suburban areas. Urban areas may not be hit so hard by these types of fees, but urban rents may eventually have a negative impact on the number of laundries in any given area. Perhaps there will be some sort of laundry consolidation in urban areas, too.... fewer, slightly larger facilities that draw from a wider area. Or it could go the other way and cause most urban laundries to be tiny shoe-box affairs (6 washers, and 6 dryers) that fit into the nooks and crannies that are too small for other businesses. Then more separate facilities would be needed. What do you think?

The Hispanic population is not so large here. But I am not in an urban center. We have some, as well as a variety of Asian customers, Russian and Ukranian, too. Most of my customers are white blue-collar folks, white welfare moms, or white retired folks. Only 20% or so of my customers are non-white. However, I agree that a laundry centered within a large Hispanic community could do well. And yes, they are very polite and tidy, making excellent customers.

anonymous

10-11-2002, 08:24 PM

Hi Dave !

I remember the paper dresses from the late-60's or early-70's. I think the trend was hot, fizzled, then sputtered out. Went something like this:

There was a young girl from St. Paul
Who wore a newspaper dress to the Ball.
The dress caught on fire, and burnt her entire
Front page, sport section, and all !!!!!!!!

Don't buy that landfill for a while. ;D

Sunflower

06-29-2006, 02:51 PM

I think this is an interesting post. Just want to bump it up.

Water and Sewer fees will be the biggest squasher - I think. Even in the small towns. As it stands in my town right now, in another 6 months absolutely no one but no one can make a new water connection. If you own a bare lot w/no water connections, too bad. This is compliments of the Department of Ecology - not the town. (I won't go on w/the whole story but our town is already using more water than the DOE has alloted them.) Sick and Sad isn't it? (Good for my situation though.)

So what is the future of coin laundries?

More and more Bigger machines maybe for convenience purposes... Hurried career people and overburdened mommies can come and wash all their laundry at once. It goes w/the whole 'convenience' driven fast paced way of life we have now...