Stack Dryer= Gross Sales???

[demand72]

Hi everyone,

First of all, I am a newbie in escrow to purchase my first laundry located in So. Cal. The matt grosses about 14,000 a month (2200 sq ft., 30 top loaders and about 23 front loaders).

The agent tells me that a stores gross sales normally correlates to the number of stacked dryers on premises. The location has exactly 14 double stack dryers, so in this case it seems to be true.

He is trying to sell me on placing in at least 4 more new stacks, and about 4 60# front loaders (the largest at the matt right now are 4-40 lb machines- Dexter T600's). What do you think? Are these logical worthwhile upgrades and will the expense of installing this newer equipment effect the gross enough to justify the cost?

Any input is greatly appreciated.

[Kitty]

Do not upgrade till you get your feet wet with your new purchase. Hopefully you have done all you dd and you will find your new mat worthy of the full purchase price. You will want to get in their and find your own way around and see what it is your customer need are. Wait a bit before adding anymore money to this mat. See what your weekly counts are and talk to your customers. Then you'll find your answers...

[Anonymous]

Sounds like you have a need for more dryers with the amount of washers. The gross sounds low for a store that has so many. Do you have people waiting for dryers on the weekends?

[Anonymous]

The number of stack dryers equals the monthly gross??!! What a bunch of crap that is. Any general statement like that is not worth repeating.

Why is an agent trying to tell you to add more equipment? Buy the store, if you want, get in there and then decide if you can afford to add that equipment. I agree that the larger machines could be a good investment.

[Anonymous]

double the amount of stacks you have and you will double your business.

[pete f]

double the amount of stacks you have and you will double your business.


I already tried that it did not work. Maybe I put in to many.

I think I have heard it all now.

[Anonymous]

Put in triple the amount of stacks and hire a armored car to pick up all the money.

[Anonymous]

Sounds great, if I rip out all my washers I can fit many many more stack dryers - now I'll be living on easy street - thanks for the insight I never would have thought of this on my own ;)

[Anonymous]

Good idea since stores gross sales normally correlates to the number of stacked dryers on premises.why would anyone waste floor space on washers?

[demand72]

Ok ok... The sarcasm is as abundant as quarters in my new matt on this thread... As I said in the first line of my post, I am a newbie and appreciate your feedback (yes, even from you Vhlaundry).

On weekends, all of the dryers are in use and customers are waiting. From the number of washers and dryers I have mentioned, there must be some sort of rule of thumb to determine what the proper mix is, and I have already stated, I am ignorant as to if the current set up is sufficient...

I am relying on you guys and my agent who has a vested interest in selling me more equipment.

So, the questions still remain...

Are these logical worthwhile upgrades and is it likely that the expense of installing this newer equipment effect the gross enough to justify the cost? Also, bear in mind the store has enough sqfootage to expand in these areas.

Thanks to those who have already provided honest feedback.

[Anonymous]

Only you can know the answer based on what you observe. If customers are willing to wait you have no problem. If they come in and see the place packed and then leave you do. I would suggest you give it some time and see if it continues this way. I don't recall if you are attended or not, but if you are you need to instruct your attendants to move the flow along. Put up signs and remind people that they are expected to remove their clothing promptly when done and if they don't you might want to consider having the attendants remove them.

Keep in mind the capital cost of each extra dryer, do you think you will increase your business at those peak times enough to warrant the expense. While I am not a fan of this, there are some mats that discount washes on tues, weds & thurs to try to shift some business away from the weekends to preclude this problem.

There are other options, like run the dryers hotter, install and extractor, or even offer a coupon for a free wash to any customer that has to wait for a dryer to make it worth their while to wait.

Hope these more serious suggestions help out - we were just funning with you before - it was too easy to not do it :)

[pete f]

I never detected sarcasim, I thought everyone was playing around with a new business idea...

Everybody has washer/dryer ratios, I like to use this one.
add up the capacity of all your washers. Toploaders count as 12 pounds. Divide the total by 25. The result is the number of 30# pockets needed, and this is a minimun. Divide by 22 for a number that should be fail safe enough pockets.

As for remodel and/or adding equipment there are two objectives.
One is to retain existing customers, the other to gain new ones. Any remodel I have done generally has resulted in a gain of revenue to offset the cost over time, and more importantly, I never lost revenue. You have to re invest in your mat periodicaly, as a laundry mat is a depreciating asset, loosing value everyday. I would guess 5% to 10% of cash flow before debt should be thought of as money to reinvest.

[anonymous]

Hi everyone,

First of all, I am a newbie in escrow to purchase my first laundry located in So. Cal. The matt grosses about 14,000 a month (2200 sq ft., 30 top loaders and about 23 front loaders).

The agent tells me that a stores gross sales normally correlates to the number of stacked dryers on premises. The location has exactly 14 double stack dryers, so in this case it seems to be true.

He is trying to sell me on placing in at least 4 more new stacks, and about 4 60# front loaders (the largest at the matt right now are 4-40 lb machines- Dexter T600's). What do you think? Are these logical worthwhile upgrades and will the expense of installing this newer equipment effect the gross enough to justify the cost?

Any input is greatly appreciated.

First of all Congratulations! Be sure to visit often and give us up dates and to help other newbies.

Second, stack dryer revenue does not correlate to stores gross sales. Doesn't look like you inquired with this message board before buying. But, since you are in the middle of escrow and you didn't state how much you got it for ... so, I say go for it.

Third, If your customers are having problems with dryer shortage then, it is prudent to add more dryers. You justify the cost along with customer satisfaction.

Fourth, hold off on larger washing machines until you get to know your customers and their needs. You can retool your store as needed.

Good luck

[Kitty]

Rule of thumb is to have the minimum pound for pound wash to dry ratio. Best to 1.5 washer to dryer ratio.

[MichaelCa]

Put in triple the amount of stacks and hire a armored car to pick up all the money.
Thanks VHlaundry (& kirby) - now i have soda spilled all over my screen !

hmmm....this makes me wonder : maybe there's room for a Dry-ONlY business ?


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Since you're knee-deep in the business already, I would do what you HAVE to do once they're in this business: And that is to UNDERSTAND what your customers are doing - by patiently observing and noting what it is that they actually do, not what you think they do. Your particular customer base's demographic will have their own peculiar patterns and processes - once you truly know (not just think) what it is they do - many answers will become evident.

Just a rough calc based on what you provided, i'd say you need 2 more stacks (4 pockets), perhaps even a larger sgl dryer.