Evaluation Help

[LarryNY]

Here are some numbers from the location I am looking at:

Washers

9-Maytag Top Loaders 16lbs $1.50 per load

4 - Primus Front load 18lbs 1.75 per load

4 - Primus Front load 25lbs 2.75

3 - Primus Front load 35lbs 3.75

1 - Dexter front load 55lbs 5.00

Dryers

14 -Dexter Stack Dryers (7 x 2)

7- Primus Dryers (singles)

Water Usage:

December 2005 62 CCF
January 2006 132CCF
February 2006 95 CCF



Larry

[pete f]

that is alot of math you are asking for, why not just figure the gross sales instead?

[LarryNY]

Hi,

Do I trust the gross sales figure the seller is giving me? I thought I could verify his numbers by having the water usage?

Larry

[WhatwasIThinkin]

always check. It is your $ your are spending for the store....

[pete f]

Hi,

Do I trust the gross sales figure the seller is giving me? I thought I could verify his numbers by having the water usage?

Larry
yes of course. I ment just figure the gross off the water usage. Getting it down to TPD per washer is a bit of math.

[LarryNY]

Is there a formula I can use to figure out the gross using the water?

[kbc747]

But first why are the number so up and down? Those are some big swings in business. January over twice of December? Makes me wonder why and whats up here and then Febuary is down again, need some reasons here.

[LarryNY]

Washers

9-Maytag Top Loaders 16lbs $1.50 per load

4 - Primus Front load 18lbs 1.75 per load

4 - Primus Front load 25lbs 2.75

3 - Primus Front load 35lbs 3.75

1 - Dexter front load 55lbs 5.00

21 washers total

Washers use 934 gals divided by 21 = 44.48 average gal per load.

Average cost for washers = $2.24

224 cents divided by 44.48 = 5.03 cents per gal

95ccf x 748= 71060 gals

.0503 x 71060= $3574.31 per month

Am I missing something? Store needs to make over 7k just to break even?



Water Usage:

December 2005 62 CCF
January 2006 132CCF
February 2006 95 CCF

[Silent Roo]

Larry if this in not to late to help. A general rule of thumb is the following utilities should be between 20 and 25% of Gross. This does go up and down by month If you take the anual number for Gas Water and Electric you should be able to Multiply that number by 4 or 5 to find gross.

I will tell you if the owner is not willing to show you more numbers there is a reason. You can get Copies of water bills and gas bills in most states I would do that. It is not exact however if the numbers are way off it should raise red flags more then 10% Any owner who claims their utilites are less than 10% are dreaming and more than 40% there are issues. Now With the Gas prices going up and down these numbers can change by month.


Just my thoughts Take them for what they are worth