buy existing or start new question

[Anonymous]

I just started to investigate this business and am wondering if I should be looking to purchase an existing coin op or start with all new?

[Kitty]

Depends.........

[anonymous]

I always buy used one,may build a new one in 5 years.
If you have about 100-200k or more cash and good credit,you can think about a new one,if you don't,don't even think about.

[Kitty]

Ken be sure to tell him about the saturation of areas and what consideration is necessary to make an educated and financial decision.

Dig deep into the business and learn the tricks of the trade. Buying new may be the way to go, but then again it might not. Understanding your market and competition should be your first class to conquer. Let us know what that is, and we will certinanlely be helpful to you!


Get some losse lips and let us know more details! :)

[Anonymous]

I just purchased the book "Coin Laundries--Road to Financial Independence: A Complete Guide to Starting and Operating Profitable Self-Service Laundries -- by Emerson G. Higdon" which I hope will help. Has anyone read the book?

The population in my town is 106632 and there are 11 laundromats listed in the yellow pages. I am trying to find information on percentage of renters and income levels to determine best location. Any other suggestions?

[anonymous]

Do you have the money or any way to get money?
You can have the best location but no money no talk.
I remenber when I was buying one of my store,I need 30k more and fast ,I talked to my bank,got a loan @13%,even the seller is my good friend ,I didn't go talk to him without money!

[Anonymous]

Yes, I just got laid off from a major chemical company and am receiving a nice severance package. We also have the ability to take out a home equity loan since our house is paid off. There is also a company called BeneTrends where you can borrow against your pension by setting up a "C" corporation. Originally we were looking to invest our money in one of four different franchises, however, I cannot justify the high royalty and advertising fees. One company wanted $20,000 initial franchise fee, 7% royalty fee per year, plus $55,000 and 2% for advertising fees per year. I figured it would be better to invest in my own company and reap the rewards of all of my hard work. Most franchisees we talked to said they sent more money to the franchisors than they kept for themselves.

[anonymous]

You will be glad, you didn't buy a franchise,most franchise companys just want to help themselve not you.
I know somone bought a "play again sport",he loss everything he save in 3 years.Someone own Subway,always warry about the comany allow more Subway in the area.
I bought used stores since I can check the history of the stores and cheaper but also have to deal with old machines,electric,pumbing.....

[Anonymous]

There are two coin-op mats advertised in the paper. What type of questions should I ask the Realtor and Seller? The questions I have are location, size of store, rent and lease terms, age/type of equipment, services offered, reason for sale, expenses (elec, trash, gas, insurance, licenses, payroll, repairs and maintenance, supplies and vending machine costs, phone, water/sewer). Is there anything else that I need to know to thoroughly analyze these businesses?

[Coinwash]

The Financials
Seller’s stated Profit and Loss Statement
Water Bills (last 12 months)
Electric Bills (last 12 months)
Gas Bills (last 12 months)
Parts? Receipts on repairs? Service Contracts?
Tax Filings?
The Assets
Washers and Dryers / Make, Model/Yr/PriceVend
Water Heater(s)
Condition of Floors
Condition of Counters/Tables for Folding.
Vending Machines
Soda Machine
Soap Machine
Candy (Gum/Bulk) Machines
Pay Phone
Video Games
Changer Machines
# of Carts/ Baskets
Alarm System
Which Alarm Company is being used?
What type of service is in place?
Can I see the contracts?
Vending
Which machines are owned?
Which machines are leased?
Vending Lease Contracts/Agreements?
Service
Who has been providing equipment upkeep and service?
Receipts?
Any Contracts/Agreements?
Who has been supplying vending goods? Soda?
Who supplies the video games?
contracts? Agreements? What’s the cut?
Insurance
Liability Insurance
Hazard Insurance
Current Insurance Carrier?
Any problems with insuring the place?
Get the current insurance contract, check for clauses.
The Employees
# Of Employees
Hours and Pay
Contract Personnel? Salaried? Hourly?
Duties
Are they willing to stay on after purchase?
How long have they been contracted/employed?
The Legal and Corporate Issues
Accounting Fees
CPA Costs Annual / Quarterly Reports
Legal Fees?
Business License Cost
The Company's Contracts and Leases
Vending Contracts/Agreements?
Supplier Contracts/Agreements?
Video Game Contracts/Agreements?
Alarm/Security Company Contract/Agreements?
Any Insurance Contracts/Agreements?
Property Lease Contract/Agreements?
Equipment Service Contracts/Agreements?
Property Lease
CAM Fees – cost / what is included in the CAM Fees
How are CAM fees divided amongst tenants?
Who determines CAM fees and items?
What percentage of fluctuations in CAM fees in
the past or foreseeable in the future?
Can I get a breakdown of the CAM/ RE Insurance / RE Tax?
What is personal property tax? Of $33?
Current Lease
Lease Increase Rate
Lease Expiration/Options
Lease Deposit
The Suppliers
Vending Suppliers? Any Contracts?

There is much more to do. Read the bulletin board ask questions do your home work,

Good LUCK!!!

*This is only my opinion. You do what you think is right; Follow your business instincts.

[Anonymous]

Thanks for the assistance. It is not something I am going to rush into. I also don't want my lack of experience to affect my ability to negotiate a good deal. I'm very happy that this website exists to offer support and guidance to others.

[anonymous]

10600 people and 11 mats wow thats seems like alot, sure they are in same town. location and having the money to play the game is the hardest part of this business. today you need alot of volume to get a good return, since utilities are higher along with everything else, lets not forget compititions. Laundromats today are alot of hard work and very expensive also. not trying to discorage you, i love it, make sure you get good distributer and one builder to run the show(construction). what part of PA tyr to have a well put in...FREE WATER. good luck

[RickC]

Just to be clear he said population was 106,600. Pretty fair sized town, I would guess Allentown utilizing 2000 census figures.

[anonymous]

Thanks for the assistance. It is not something I am going to rush into. I also don't want my lack of experience to affect my ability to negotiate a good deal. I'm very happy that this website exists to offer support and guidance to others.


I also had this question months ago. I tried to do as much research as possible thanks to the help of this forum. Luckily I have the opportunity to build new. The cost will be about a little less than the ones I was looking at to purchase.

The area I am building in is in serious need of a fresh new laundry especially after speaking with some area residents. I wouldn't wash my dog at some of them.

The bottom line is location - location - location plus the costs that will be involved for new or existing.

[Anonymous]

Wow, thanks for the all the info people. I also want to go into the laundry biz and have a TON of q's and I'm researching all I can.