PDA

View Full Version : Seasonal Mat, Does it sound good???? HELP!!!


genod4
04-01-2005, 07:17 AM
I am looking to buy this mat in a seosanal beach area.
It is 2,000 sq ft. He was asking 150,000 I offered 125,000.
Rent is 1500 5 year lease with 5 year extention with 1.5 increase
She is going to redo the ceiling and redo the floor. He has wash and fold there mostly in the summer. The mat is for the most part unattended in the fall, inter, spring, and staffed in the summer.
One hotel I know of drops 18-20K in the summer for sheets, etc.
But it is hard to see what kind of buisness this place will do in the summer cause it is only april. Thanks in advance for the advice.

Equipment:

speed Queen top load WM WA Model -18 of them bought in 1999 1.75

Speed Queen Top load Wm WA 9 of them bought in 1998 1.75

Speed Queen Triple Load Front load WM 3 of em bought in 92 3.50

Speed queen slim line cpu dryers -- 15 bought bought in 92 .25 for 7 min.

Speed Queen Triple Loader--3 of them bought in 2002 3.50

Snack vening Machine and soda vending machine bought in 2003 .50
He owns them so no spiltting money.

3 video game machine .50 split 50/50 with outside vendor.

Standard cahnge maker

2 soap vending machines

2 oil fired 80 gallon hot water heaters bought in 1992
1 80 lb scale

This is a shore town lots of renters. He says his gross is 137,000
and his net is 63,000 after expences. Is it worth it to buy because his buisness is alot busier in the summer and pretty slow in the winter.

His water usage is
4-1-04 - 6/30/04---245770 total bill 2419
07/01/04-09/30/04---493680 total bill 3970
10/01/04--12/31/04---159250 total bill 1900.50
01/01/04-03/31/04 174100 total bill 2419.62

electric for the year 2,456
gas for the year was 6,836
oil was 2,015
water total is 10,328

What kind of gross does this look like. Do his numbers match up???

anonymous
04-03-2005, 11:00 AM
Yes, we are here.

It is hard to determine the value when majority of income is seasonal. His asking price is low compare to what the mat makes???

Ask yourself these questions:
Question? Is there enough income during the slow months to cover the rent and expenses? or Do you have to survive off of the income during the slow season?

Question? Are you prepared to cover expenses out of your own pocket?

Question? Why is he selling? Any competition? Not enough income?

Question? Is there any thing I can do to increase profit?

Question? Am I prepared to hire new staff each season and train?

Question? Does the current owner have to supplement his income?

Don't go by what he says go by the facts. Ask for proof of ALL income. During the height of the season it could be possible to earn that much money if there is approx. 5-TPD plus other income from vending.

Perhaps you can change the prices according to the season for more profit.

Find out what the lease does and does not cover.

Overall, it looks ok. Make sure you have some contingency plan. Really look at the situation write it out on paper. Try to be objective and conservative. Try contacting a distributor and ask them questions.

This board offers a lot of info. You can do a search to find out more. As you said it is hard to determine when it is slow.

Good LucK