Before I open my first coin laundry...

[AndyC]

Hello all. I have been lurking on the board for a while, but this is my first post. I am strongly considering getting into this business, and I would really appreciate some advice on the course I’m considering.

Here’s my situation: I have a good deal of cash to invest, and I am evaluating opening between 1 and 3 coin laundry locations within a few miles of my house in the metro Atlanta area. There are a couple of locations I’m seriously studying, and they all appear underserved. They are very heavy Hispanic areas with high concentrations of renters. The coin laundry locations there now are filthy and run down and look sleazy (still - they are busy).

I am thinking about buying all new equipment and opening a very clean, bright alternative location, but I am completely new to this business (I’ve had other successful businesses, but never anything like this).

A few questions:

1. Is 24x7 unattended a good idea? I don’t mind working hard at this business, but I think I’d rather have 4 or 5 unattended locations than 1 staffed location. What are the major drawbacks to an unattended operation?

2. Is new equipment a bad idea? There is a lot of used equipment out there, but I think if I plan to keep it for the long haul, new might be better. I don’t want a ton of repair and maintenance costs right off the bat, and as I said, bright and clean is an important part of my offering.

3. How much does a new, efficient commercial washer and dryer cost? I don’t want absolute top of the line, but as I said, I do plan on keeping these for the long haul, so I don’t want to buy low-end either. Any range or average would be very much appreciated.

4. Is 6 washers and 6 dryers a reasonable number of machines to consider starting out with? Is that considered "tiny"? What is average?

At this point, I'm only plugging numbers into a spreadsheet, so I really appreciate any and all advice from those of you in the business!!
Andy

[Anonymous]

Andy you have a lot of question, which is good. I'll address a couple and leave some for others to address.

Like anything else, new is always better if you can aford it. New is under warrantee and you should have minimum repairs for the first few years. Commercial front mount washers cost about $100 per rated pound of capacity while stack dryers are around $4,000 a unit - these are all ballpark numbers.

Six washers and dryers hardly sounds like it is worth the effort. Do some math and see what that would generate in revenue and what your rental costs and other overhead is and you will see that you will need at least 15-20 washers to even consider things.

Check the CLA for some of their statistics if you want to see averages. Best bet is just visit mats in the area and see how big they are and what the traffic is like. Keep asking questions and we'll all try to help.

[cesar]

You should check out the classified ads on this site there is a mat listed for sale in Atlanta. I know nothing about it, I just saw the ad.

[David]

Originally posted by AndyC
Here’s my situation: I have a good deal of cash to invest....If you are not a hands-on business owner then you probably will not make any money with several small stores.
1. Is 24x7 unattended a good idea? that depends on location... but I think I’d rather have 4 or 5 unattended locations than 1 staffed location. 4-5 will take a considerable amount of your time. Again, it all depends on location. If a staffed store will bring you more money, there's certainly less headache with fewer stores. What are the major drawbacks to an unattended operation?vandelism

2. Is new equipment a bad idea?New equipment needs less maintenance but it takes longer to pay off. Used equipment is cheaper thus taking less time to pay off, but may require more maintenance. I've opted for rebuilt equipment. That seemed to work out for me.

3. How much does a new, efficient commercial washer and dryer cost? That's hard to answer since there are some many different sizes, but $100 per pound on washers. About $2500 on 30lb single pocket dryers and $4000 on stacks.
4. Is 6 washers and 6 dryers ... Is that considered "tiny"? Microscopic! 1200 sq ft is 'average' on square footage. 600 to 800 lbs washing capacity, maybe. Washer to dryer ratio, at least 1:1. This maybe way off... anyone else have a better guess on averages?

[tinybubbles]

Hey Andy,
You want my laundry? It is at Piedmont and Cheshire Bridge in the Ansley area? I am ready to sell mine. Where are you looking at?

[BWJR]

The best advice I could give you is to call two or three local Laundry Distributors and have them start the process of educating you in this business. Get a cross section of information and compare notes. Run the findings by us on this Web Site and many of us can help you. Remeber Location is the most important factor in this whole mix, like it is in most retail sites. You have a lot of information to gather and digest. Don,t sign anything until you get all the facts and an expert in whatever area you are pursuing.

Have fun and good luck,

BWJR

[AndyC]

Thanks to everyone for the advice & info! I definitely plan to get educated (very educated) before doing anything. I have a lot of experiencing being self-employed, and now I just need to figure out if this is the right venture for me.

[Kitty]

Andy,

I suggest you invest in me, and sit back and earn a good return while doing nothing! :)

[pete f]

first thing dump the spread sheets.

buy a run down mat, fix it up, see how you like the business, it is not for everyone. After you see the work and risk involved then spend more money. Everyone has a niche. Some attended w/d/f. some 24/7 unattened. Some built new stores and are looking at thier gun eveynight, others laugh all the way to the bank. What works for me might not work for you.
Putting in 50 machines rather than 25 does not mean you will make twice as much money.

good starter mat..,, 1000+ sq ft doing 50k pls coin,unattended, near your house, with rent$800 or less
Toe in the water, read tinybubbles earlier post.