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ameel
08-05-2005, 11:54 PM
Hi all,

First I want to say that this site is a gold mine, and would like to thank all for the support.

I'm a newbie, and currently considering a Laundromat in a very busy low-income NYC area, but I'm not sure if it's making money. The broker says that the owner is retiring. There are 2 other Laundromats a block away, use older machines, both are smaller, one also runs 24 hrs, but they both charge less .25-.50. I also found out that the smaller of the two laundromats is also for sale. The workers say that most customers wash their own clothes (not a lot of drop offs). Is there a way to figure out how much a place is making based on the bills, and is this place worth that much. I really like the place, it's pretty clean with lots of room and folding tables, it looks like it has some potential, but I don't want to get burned :) I got some info from the broker, thank to all of you in advance, any help would be greatly appreciated:

Area 4000 sqft open 24 hrs, asking prince $500,000

washers: in good working condition (I'm not sure how old, any idea!):
25 Wascomat Junior w75 Double loader @ $1.25
19 Wascomat Senior w125 Triple loader @ $2.25
6 Wascomat Giant w185 @ $3.25
all slots are set-o-matic

Dryers: in good working condition (Not sure how old either):
56 double-stack Huebsch (with the LCD screen) I believe model number is 701115*** or something... that was the only number on it.
@ $0.25 for 10 min

vending machines (some are contracts)
1 soap dispenser.
10 candy slot machines
5 arcades
1 soda, 1 ice-cream
3 TV's

3 full time employees

Gross income based on broker is $400000 a year (Can't get income tax, but I have 2 1/2 years of gas/elec/water bills)

rent is $6000 per month with 8 year lease remaining
water&sewer avg $3300 per month or $4.144 per HCF (about 2500 HCF every quarter) (example of bill of last quarter is $3800 for water and $6100 for sewer)
elec avg $1900 per month
gas avg $4400 per month (I'm not sure why he has two companies delivering gas)
insurance $200 per month
maintenance $200 per month (He says that the owner does most of the maint, seems low!!)

Thanks again,

Ameel

ameel
08-06-2005, 08:21 PM
I made a mistake on the HCF (hundered cubic feet) it's actually averaging 2500 hcf (1600 hcf high flow, and 900 low flow. I'm not sure what that means) per quarter times 7.5 gal/cf = 1.875 mil gallons per quarter.
1.875 mil * .05 (profit margin for front washers) = $93750
plus 30% for dryer $121875
times 4 for anual income = $487500

this does not make any sense, gross sales is 400000 and this includes WDF and vending machines!!.. I must be doing something wrong, please help guys, Thanks.