average cost of utilities vs total income?

[sean6293]

i've been looking at several smaller laundromats in the greater NYC area and according to the business broker's numbers almost all of them are showing a utility percentage of gross sales (including water/gas/elec) of 12-17%. asi understood it, the average usually hovered around 30%? am i being mislead or is it possible these numbers are accurate?

[goingtoarizona]

Off the cuff I'm seeing about 25%, I'm in California. Get real utility bills, not copies. Some utilities will give usage over the phone, or even fax them to you, depending on the supplier. I just tell them I'm looking at buying a Mat, and give them the name and address. I would suspect that NY wouldn'd be as easy to deal with as some of the "Good Ol Boy" cities I've shopped for mats here in Southern Ca. Hmmmmmmmmm maybe I could check on my competition this way...gotta go...

[tlev89]

Depends on the type of laundromat.If its all self service the water,gas, and electric should run about 35 percent of gross sales(gas has gone up so the old rule of 30 percent just isnt true.
IF they do a majority of wash and fold then it would be much lower since wash and fold is more profitable but im not sure about the exact percent.
You are going to have to do alot of due dilligence since in my opinion most people lie about the net profit of their business.
Im trying to buy a laundromat in the nyc area also and its hard to find a good one with a long lease.
good luck

[pete f]

that sounds low, but could be real. There are many factors, price of water/sewer, if the mat has a/c, does w/d/f, etc. Some mats have wells. Others pay a predetermined fee to the landlord for the water/sewer. If you get all utility in under 20% more power to you, it makes them mat worth that much more, as you are buying cash flow and profitability. The true way is direct cost vs income. Gas expense vs dryer income, etc. But that gets screwed by heating with NG or alot of w/d/f.

[sean6293]

i suppose it could be caused by W/D/F revenue.