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View Full Version : Buying a Mom and Pop Landromat in the HOOD


ksantizo
07-04-2004, 12:28 AM
Hello everyone,
I'm in the process of buying a commercial mix use property which happens to have a Laundromat on the first floor. The neighborhood is a very busy foot traffic strip area with lots of low income apartments and row houses that rent out rooms. I have a concern on the current competition in the area. The most traditional Laundromat would have parking access for clients but this particular mat has no parking for customers. There are about 10 mats in the vicinity 5 of the 10 are in a 5 block radius, and about 5 have parking access too. I have seen the Laundromats financials and it makes an average of $8,000 after paying operating expenses. My concern is how can a small Laundromat which operates 24 commercial dryers, 13 Triple load washers and 23 single load washers can draw more customers in a Laundromat that is space challenged? The mat does not use rolling carts but crates. Customers are constantly moving around each other on busy times. The closes competitor has more walking space but with about the same amount of machines. I was thinking of cutting back on the single load washers to half to create additional space. Are there any other tips in providing an effect that will make a customer feel less constrictive in a small Laundromat with out major renovation? I was thinking mirrors on the wall and a stronge attention in customer service. Any suggestion? The current owner has been very sick the last couple of months which is also causing customers to visit near by mats because of unreliable hours. Does anyone have any ideas on winning back lost customers?

Washington DC
Kenny

mike
07-04-2004, 08:16 AM
Lucky you ! (getting a property AND the mat)

NEVER take out equipment unless you are replacing it with more (and hopefully higher capacity) equipment !!

Space does not make money.

You could raise the prices a bit, that would raise money, and coincidentally thin the "crowd" a bit.

You might be able to re-design the layout to improve space, and put higher capacity machines in. (but this costs money:-(

In your situation, (competitive) I think I would just take my profit, keep smiling, and wait a year until you know which way the wind is blowing.

A too crowded store is a good thing, not a bad thing :-)

pete f
07-07-2004, 11:39 PM
it sounds like all you need to do is install automactic door locks and light timers. Overcrowding is not a BAD thing, others have worse problems.
You did not mention SQ FT, that is more important than the number of washer/dryers, at least to determine what a new store might put in.If it ain't broke, don't fix it... but continue to upgrade and change for the better in time. A cart cost about $100, but do you have room for them? In one mat I have, and happens to be my best revenue one, I have NO permanant seating, people have to sit outside, or use the 2 or 3 plastic chairs that get moved around. Nobody seems to care.