Should I Go For It?

[escott2392]

Turn around situation. 2,000 sq ft Mat since 1970. Mat and real estate for sale, $65K and $170K, respectively. 2004 loss $14K. Utilities seem high. No marketing. No D/W/F. Decent area and 3 Mats within a mile. $14K loss in 2004 and revenue dropped $16K from 2003. Mat is unattended except for morning clean up help. Every time I drive by during off peak hours, someone is washing clothes and seems consistently busy during peak times. Strategy...Mat owned by large company, purchase new equipment from them for 65K (v. buying current equiip) to lower utilities, market hard and offer D/W/F, work on small commercial accounts. Here are the numbers, what do you think?

Revenue
$33K - 38 1997 SQ top loaders
$22K - 16 30 lb SQ dryers (HB 30CG) 1997
$7K - 3 (30lbs) and 2 (40lbs) front loaders 2003

Major Expenses
$17K - Rent (22% of Revenue)
$15K - Gas (19%)
$19K - Water (24%)
$11K - Wages
$8K - Electric (10%)
$1K - Repairs & maint (1% seems low)

[pete f]

mat is worth nothing the way it is. The RE plus build out is the only way to figure. water/gas way to high ratio? there may be ways to calm it, but not good to pay for potential. Hammer down the price

[escott2392]

Thanks a lot. All you posted.

[KJD]

WOW!
A mat in my area using 19K in water would be grossing about 285K.
What do you pay for water and sewer in Texas?

[escott2392]

Water $1.82 for first 250,000 cf/100, then $1.42 for volume > 250,000.
Sewer is $1.48 accross the board.

[mike]

The 11k wages to me sounds high for morning clean up.

Find out if the competing mats own their own real estate.
(someone has to be eliminated)

This sounds like it might work as a 2-3 year project to build a business.

The buying of the real estate makes or breaks this deal.