Are utilities to low to be true

[anonymous]

Hi I have been reading this board almost every day for some time now. I want to get in to the business. I have looked at a few mat's over the past 6 months, but nothing has worked out. I just looked at a small one that I am interested in, but the numbers don't sound right to me and wanted to get some advise. The utilities sound way to low to me.

Rent 22,500
Electric 2,400
Gas 1,800
Water/sewer 3,000
Payroll 32,000

Grossing 105,000

Store is 1500 sqft , has 22 Maytag top loaders, 2 sm Maytag front load, 2Unimax 36lb, 6 Maytag 30lb Dryers, and 9 stacked dryers. Fully attended. Owner says 30% of gross is from WDF. Utilities sound way to low to me, but most of the stores I have looked at were all coin no WDF. Can this store really be grossing 105? The electric and gas is just about double of my home.

Thanks for your help

[Kitty]

One store has 28 tops 10 35's and 4 50's 26 30lb propane dryers. The water bill runs around 700 monthly, based on sewer consumption only as this store has a well. The gas runs around 600 per month, just got a high efficiency water heater which helps this cost. Electric around (475-600 per month. No air conditioning in this store) Payroll for this store is 35-38K year. Store does roughly 110K

[Rondo]

$250.00 @ month for water & sewer?

$150.00 @ month for gas ?

Run don't walk

[Fred50]

Rich,

I live in NJ and my home gas bill is more than that. I second the run comment.

My home washing machine does about 8-9 turns per week!! :-)

[pete f]

It would be more useful to look at gallons used and threms burned than the dollar amount of the bill.

The rent looks right, the electric looks right.

[anonymous]

For NJ these numbers look way too low. May be his Water Meter is not working right or may be rigged. Gas seems low also.

I would be very cautious.

[anonymous]

Thanks for all your help everyone. I am going to pass on this one. I have found a much larger mat in the same town. With numbers that sound more realistic.

Thanks again Rich

[head]

Thanks for all your help everyone. I am going to pass on this one. I have found a much larger mat in the same town. With numbers that sound more realistic.

Thanks again Rich
what are the numbers of the larger mat?

[BartA74]

numbers sound a little off too me. I have a 1000sq ft store with 23 Washers and 10 single pocket dryers My electric bill is about 180 a month and my gas bill runs about 450 a month. I am not familiar with the therm cost and delivery cost in your state but that gas bill sounds like a bargain too me.

[anonymous]

This was well over 2 years ago. I don't remember the numbers, and being that long ago I don't think they would be very helpful now the way utilities have gone up. But I passed on that one too.
I started contacting owners directly. And I did buy a larger store 2 years ago. I was in the right place at the right time, and got the place at great price of 1-1/2 times net. I put a small amount of money in it after I bought it, at the same time the closest mat to mine closed. Two years later my gross is up 35%. I think I did OK.
I searched aggressively for well over 2 years for a mat, I can't even guess at how many I looked at. But the more you look at the more you learn. I believe the income was over stated on at least half of the other ones I looked at. And now after owning one for 2 years I am sure of it.

[Anonymous]

1 1/2 times net!

You do realize that we all hate you now, don't you?

Just kidding,

John