How much it costs to build a new laundromat?

[AprilSnow]

I am wondering how much it will cost to build a brand new laundromat, with 30 dryers, 50 front load washers, plus labor and other equiment costs.

[Duane]

How much you have to spend? There are too many variables to answer a question like this.

Are you talking 20lb front loaders for $2000 each or 50lb front loaders for $5000 each. Thats a difference of over $140k just in one equipment selection.

Figure $130 per sq foot?

Could vary greatly depending on type of equipment, location of building, impact fees and so on and so on.

You will need a building design with a floor plan including equipment mix before anyone can really give you a good guesstimate.

[pete f]

I know a guy who put one in that size, more or less, acttually 2 of them. The first one was about $465,000, it is leased area.
The second was around 750k from what I hear, it includes a lot next door for parking, but not the building itself for the mat.
I think he looses about $2000 a month on the first and maybe $3000 a month on the second one, debt service/interest not included.

I figure $100-150 per sq ft plus building to do a mat.

How does this stack up agianst your pro forma your distrib ran for you?

[Nylon]

Figure $150 per sq ft for sure, if your lucky you may get $100-$140, but don't count on it. Figure high and go from there.

[AprilSnow]

Duane and pete f, thank you for replying.

I have 300k to spend, and I guess that is not enough. Seems like the only option for me now is to buy an existing laundromat.

There is one in my area that prices at 350k and claims that it can do 70k per year. But it doesn't have a lot of customers. It is in the back of a big shopping center, not visible from the street. The equipments are 10+ years old. It has been on the market for 5 months because the seller is very firm on the price. I am debating on whether I should give them an offer or not. I was told that they can give me more information only after I give an offer out.

Duane, I love your store. It is my dream laundrymat :D.

[AprilSnow]

:)

[pete f]

Why not scale back your plans. The mega store is yet to be proven to me, at least, as the best ROI in the mat biz.
A 2000 SQ ft store with 25-30 washers and 10-12 stack dryers can make a lot of money, for the investment, if in a great location.

Find a dumpy store that is making money, try to buy and then remodel the whole thing. In the end you have a better chance at a higher ROI.
Big stores with satalite TV and coffee bars sound sexy, but money is what it is really all about. Core coin op biz can have a great return, done right.

[AprilSnow]

The current owner bought it in 2001, I wonder why he wants to sell it in such a short period of time.

It is a nice store, but everything there shows its age. It has wash & fold service, but not busy obviously.

Could anyone help me to analyse the numbers once I got them? I am very anxious about it because I have absolutely no idea how much money it makes, and I have to pay cash for it. Never spend so much money in my whole life :).

[Fred50]

AS,

1st- Remember that cash is king! Use it as a negotiating tool as is it your best advantage with a motivated seller.

2nd- Someone selling a mat after owning it for only 2 years should raise a big red flag.

I can understand any seller being reluctant to share detailed info, but explain that you can't make a serious offer without it. You can do your due diligence - detailed analysis after making a non-binding offer.

Give the owner a letter of intent to purchase which is a non-binding agreement that may be enough to show the owner that you are serious. You can even attach a minimal deposit if it makes the seller feel better, but under no circumstances should you sign any binding legal documents or give a substantial deposit without doing all of your homework.

One more thing. The mat may have been for sale for 5 months because it is grossly overpriced or it has some other flaw that is not apparent yet.


Good luck!