New store

[Duane]

All,

I am a new store owner located in Bowling Green Ohio and have spent most of the day on this web site reading threads and think that this is a great site.

Check my store out at www.LMARIES.com

I built my store by myself including layout, utilities, floor, etc. Since I am a professional computer consultant I decided to add some of my knowledge into the store and this is what I came up with and would like any input on mistakes I have made now that may haunt me in the future.

New store is 3250 total square feet
1 #50 maytag washer
4 #35 maytag washer
30 HE maytag washers
12 dual pocket maytag dryers
1 soda machine
1 snack machine
1 vendrite 360 soap dispenser
1 7' air hockey table
1 6' pool table
Central vac system
Battery powered floor scrubber
Card concepts card system that controls everything in the store including the game tables and bathroom door.
Video system that records to a hard drive 24/7

During construction I did everything possible to save utility costs. I currently (open for 3.5 months) am running approx 14.5% of gross for utilities.

My customer base are ages 18-28 (university students) and the demographics are 78% rental in a 1/2 mile radius with three stores within a mile.

I found the card system to be more than I ever expected. I only have cash (no change) in my two card dispensers. When I dial in I know exactly what has been taken in for the day with several reports to choose from.

I also have ADSL coming out of the store for two reasons. The first is to have a web cam on my web page so customers can see how busy it is before coming to the store. This really spreads out the busy times. The second reason is so I can sit at home and view all cameras at once and see what is going on. I am also in the process of setting up a internet capable cell phone so no matter where I am at I can view each camera.

I am a CLA member and do use their insurance. If anyone knows of a better deal for an unattended mat let me know.

Thanks for a great site and I look forward to visiting here often!

Duane

[Anonymous]

Great idea on the web cam, what hardware/software are you using?

[Duane]

The video system is from dpon.net . It is self contained and easy to set up, just plug and play.

To do the recording I bought a Dell computer and installed a couple of pieces of software from dpon that does the recording of the videos to hard drive. I added a 120 gig hard drive to the Dell computer and I currently keep 30 days of recordings. The recording software does all the house cleaning automatically by deleting old files when they expire. Very simple.

The dpon system works very well, but if I had to do it again I probably would go with the video recording system that CCI now has as an option to their Card System.

[Rondo]

The web cam is great! the first thing I saw was a kid playing with a laundry cart. Just like my stores. Phasor on stun!

[Duane]

That is a problem with this video system. The more you watch it the more it drives you crazy when you see people doing things that they wouldn't do if you were there on site.

Once you get use to the games they play, it isn't so bad.

One good note. Being close to the university all my neighbors (commercial stores, carry outs, etc.) told me that the kids would tear up my store if I left it unattended and open 24/7. I am proud to say that after 3.5 months I have had only one problem and that is a broken pool stick. After reviewing the video it was obvious that it was a accident, so I don't count it as vandalism.

Video presence is good.....

[pete f]

Duane
Nice set up. I have a couple questions.
I read thru your web page, I notice you state you have 20# washers. Are these Maytag Neptunes or another model? The Neptune I thought was an 18# washer, it has the same size cu in basket as SQ hard and soft mount, and dexter hard mounts. Just curious.

I read your helper list. I see you mention SBA. Many here have asked about SBA, and I have generally assumed you need real estate as part of the deal, but you leased your spot. Please provide us with some numbers. Ratios are OK if you do not want to disclose your real investent. Out of the total cost, how much was loaned thru SBA? and the terms (years/rate)? How much out of the total cost was equipment values? Time to get the deal done? Did they require other assests to be pledged, ie your house, car etc?

Thanks.

[pete f]

Duane, one more comment I forgot. Most people in the biz say a top loader is rated for 11 or 12 pounds. You have superior advantage, 12#s to 18#, actually better than your 18# to 20# example..just want to have that adverstising edge, and truth.

[brucefla]

Yeah real nice web-page and mat! Best of luck, I like your marketing..... That place should rock!

[Duane]

Thanks for the info on the poundage. Don't ask where I got the numbers, but I do remember thinking that I needed to double check them when I was creating the page, but never did. The page has been updated.

The machines are the Neptune softmounts on 6" bases.

Any help on the hot water temp would be good. I have it at 140, but will probably lower it after I have a good customer base. I have a 400 BTU boiler with a 200 gallon insulated tank with all hot water lines insulated right up to the hose connections. I also used 2" PVC and CPVC water lines and have a 3/4" return line with a circulation pump to make sure all washers get hot water even in the middle of the night.

SBA - Took about 4 months and yes I did have to put up my house originally. The total cost was $340,000 for the store and I borrowed $183,000 for equipment, card system, folding tables, water boiler, washer bases, soap machine, soda and snack machines, installation, taxes and shipping. The rest was out of pocket. The loan was for 10 years, but I'll probably have it paid in 7. Current interest rate is 6.5%. Yes, only 6.5%. I was able to get the house off the loan once I incorporated and they could see the store. Before I started I gutted the building and started from scratch. I guess they (bank/SBA) felt more comfortable once I actually had my money spent and was commited to the project. Remember, I did everything my self from electric to plumbing to the website. The only help I had was from a local plumber that assisted with the gas lines since I did not have certification that was required by the gas company.

Thanks for your postings.

[Fred50]

Duane,

Do you have your soda and snack vending machines hooked into your CCI System and are they multi-priced?

I am building a new store using CCI and was told by Steve from CCI that they didn't yet support MDB - the standard for vending machine interface.

I would greatly appreciate any info that you have on tieing vending into the system.

I also am controlling bathroom access by the door. Any complaints about that? Did you put a deadbolt on the door for customers to lock on the inside?

As CCI is fairly new to the marketplace, it is difficult to find folks with much practical experience.

Thanks in advance!!

[mike]

$340,000. for a store !...................
.................................................. .........

The new clothes look fine, emperor !

[Duane]

Mark,

CCI is now testing an MDB interface for the vending units. I have the interface on my soda, snack and vendrite 360 and they work great. The ony drawback is that it is not multipriced. So far the multiprice issue hasn't been a problem, I just have everything priced the same. $.99 for drinks and $.49 for snacks. I don't carry gum in the vending machine, instead I have certs and lifesavers.

My sales on the soap vender trippled once I installed the card system. The customers have the "card mentality" of "its not cash, its just a card".

I have the card system hooked up to a door latch that has a soilinoid (spelling??) that when a customer scans their card (free) it will open the soilinoid for 3 seconds (they hear a buzz) then they pull the door open. Once in they have a dead bolt that when turned it reads "Occupied" from the outside. The door lock set is a storage set up that is locked from the outside, but opens from the inside. When the customer leaves they just unlock the deadbolt and twist down the door lever. Spring hinges close the door once the customer leaves. Since only customers use the bathroom it has stayed very clean. The only complaints that I have gotten on the bathroom lock is from non-customers that come in to try to use it. If you ever get vandalism in the bathroom you could probably narrow it down by using the card system logs and video to see who used it. I did this once to track down a customer that was smoking in the bathroom. They were red faced and said that they were sorry.....

I also have the card system on the air hockey and pool table.

There are no bill changers needed in the store and the only place cash is kept is in the X-changers (card dispensers) that are emptied from the rear in the back room. I am never in public with the cash. Now get this.... When removing the cash from each X-changer you do what CCI calls a "collect" that prints out a report showing exaclty how much cash is in the machine. I have my report print out with my account number and then just wrap the report around the cash with a rubber band then into the bank bags. When I drop it off at my bank they verify the deposit amount and have my account number for the deposit. About 5 minutes to collect the store cash....

I don't have their video system, but would have had it if I didn't already have one from VPON.

I feel that the CCI card system is above all the others. Instead of a small green led readout you get a 15" touch screen that walks you thorough the card purchasing process. Instead of telling you what to do, it shows a video on how to do it.

I'll also be adding some megatouch countertop video games soon and they will also be on the card system.

The biggest advantage of CCI over everyone else? Card cost. For under a buck you get a printed card ready to go, the last I check on the smart cards they were about $4 without any printing. Do the math and you will find in a matter of time the smart cards alone will cost you more than the total CCI system. I put a $2 bonus value on a range of cards then hand them out for advertisement. Of the 50 cards I have done so far in the past 3 months, 38 have came back to the store with value being added.
Once the university is back in session, I'll take some cards and hit the night clubs to hand them out (a necessary business activity as I explain to my wife. ;o)

I wish CCI was a public company and sold stock...

Let me know if you have any other questions, since I am proud of my store and like to type about it! If you are ever in NW Ohio let me know and I show you my store.

Duane.

[Fred50]

I just spoke to Duane about the CCI System and other related topics and he is now my new idol!! Sorry to all you gurus out there - idolism is fickle, I guess.

I have been trying for months to overcome what I saw as the only drawback to the CCI system and Duane has done it - just in time for me - YEEEEHAAAA!

I also would like to vote for Jonathan for President as without him, my mat would have cost more and my research would have taken much longer.

Thanks to all!! :-)

[Duane]

Mike...

Is $340,000 too much for a new store? This was my total layout including all lease payments and equipment loan payments for the 16 months that I worked on the store (mostly part time). Not including the lease and loan payments I have around $285,000 into the store. Some say I should have paid to have the store done to get it open faster, but I enjoy doing things myself. Besides I now know every inch of the store and if anything goes wrong I don't need to rely on anyone else. My wife looks at it as if anything goes wrong it is my fault. You just gotta love those red heads.....

Duane.

[mike]

Duane, I wish you the best of luck, but I just don't see how you will ever be in a cash flow position with the amount of money that you have in the store. You don't have nearly enough equipment for 3250 ft. This I suppose can be increased in time. Not enough large washers to make maximum income from each sq. ft. (I realize that the bulk of you clientele is college students, small loads)
You are in leased premises, therefore the lease expiry date is getting closer every second. It will take over 20 years to make all this money back.

I'm afraid I don't have too much positive to add.

I built a store that cost too much, and am just starting to turn the corner after 13 years. But my capacity is much larger than yours, and footage is less.

It's done, make the best of it, you'll be working a long time for not too much money. Do a self assessment after 2 years.

I guess you can just ignore a % return on the capital that you put in. (A pet peeve of mine and Kirby's)

[Duane]

Mike,

In a normal store yes it would be hard to have a cash flow. But with fixed costs at less than $4500 a month, utilites under %15 and no employees, we have been doing very well for the short period we have been open. Sales are still increasing and card activity is growing. We have sold over 1500 cards and nearly 900 of them were re-used in December alone. Even though we have been open for less than 4 months our current projects show that the store could pay back our investment in as little as 3 years.

We opened on Sept 12 and by the end of the month we had a profit for that month.

Best return on investement, maybe not. But I am extremely happy with how it has been going and I am only working 20-25 hours a week.

[pete f]

Thanks for the info Duane. I had a chance to move across the street a few years ago, and I had the building gutted and outfitted in 3 months. I hired out most of the work. but was there daily. It was about 65k for the buildout, plumb, elect, etc.. I bt all the light fixtures and supplied machines, that included the install. I think it was better to hire a GC and get it done quickly, if I do it again I will do the same thing. This was a mat about 1600 Sq ft. 16 months is quite a bit of lost revenue compared to what it costs to have it done. But you are up and running now. A guy recently put a mat in a 3000 Sq ft. spot across the street from one of my stores, he spent $465,000.
He has 45 washers and 22 stacks I think. So your $340k is high, but it can get higher. My next store will be a card store, most mine are 24/7 now anyway. I guess you have not had to teach people how to use cards? College kids are supposed to be smart anyway.

One last thought, while the name sounds cool, it sounds like the name of a fancy restraunt. I like all the windows you have that is the best way to go, but I would have some sign like laundromat, washateria, etc on the building as well.
I like Coin Laundry but not sure how that works. Card laundry?

[Kitty]

Carte Laundromat..........that sounds cool. :)

[Duane]

Pete f,

The original plan was to be up in less than 6 months, but one of my clients made it very hard to walk away so I ended up working longer than originally planned as a consultant. They made it worth putting LMARIES on the side burner for a while. $$$

Anyhow, the main reason I wanted to start a new business was because I wasn't getting any satisfaction working on computer systems. Nothing to really show at the end of the day. Now I have something that I built myself and can show to everyone and say "This is mine".

My wife will be retiring in about 4 years and we are planning to let our two girls run LMARIES to put them through school. They can maintain the store and take the profits for school.

The name is my wife's nickname. Her name is Lisa, but I sometimes call her by both her name and middle name of Marie. Or LMARIE.

The sign was something I took a stab at and tried a theory that seems to be working. If I would have had laundromat or coin-laundry on the sign people would have known a new laundromat was in town and "big deal". But you can't image how many people stop in just to see what LMARIES is and when they come in and see the pool and air hockey tables, large booths and TV's along with everything else they actually get excited.

People in town are no longer saying to each other "Lets go do laundry", they are saying "Lets go to LMARIES".

Trying to change the laundromat concept in Bowling Green Ohio. Or at least bring the laundromat into the 21st century.

Duane.

P.S. do you want fries with that?

[MRH]

Duane,

Did you sign a 20 year lease before spending $340,000 on your store? While I don't feel the same way that Mike does on the RE side of things, that is a BIG number. I built my last store (a year ago) for less than $150,000. It is only 2,000 SF however. Also in a college town.

[harry]

Duane, u got new idea. If it works, u will be the king. Good luck.
I plan to build one new laundromat from scratch like u but I can not afford spending too much time. I like the way Pete f. build his store.
I have a laundromat in San Jose California where the real estate cost goes crazy and the jobless is increasing every day. I have seen a couple of laundromat owners lost their leases because they can not afford the new rent or because the land lord refuse to sign new lease to steal their business. Those things really worry me when I think about my new lease. That is why now I plan to build one laundromat by myself. At least the PETE's way. So if I lost my lease someday I can move my business anywhere I like.
Pete f. Thanks for some information form your thread. Three months to build a store is what I am looking for. Could u give me more detail about your construction steps and their cost to build your store? Did the construction cost of 65K you mention includes permit fee and water, sewer tap? Did you hire a General Contractor from a Laundromat dealer or any GC is OK? How to find a good GC?
Sorry I have too much questions. I do appreciate it if you have time to answer them. THANKS

[pete f]

I am not sure what you mean by "my way"
you may be reading my note wrong. the 65k just covered the plumbing, lint trap, electric, some drywall, machine install, gas work etc. I moved quite abit of equipment I owned over and bought another 60k worth. If I did all that work myself I might have saved 30k of the 65k, it was better for me to pay to have it done. Most permits, and other stuff I paid, some he paid. There was no sewer fee, they tried but I was moving across the street becuase of pending road construction, a few town meetings and I got it waived. The water meter fee was about $2500. The GC was someone who had done mats, a semi retired guy. He did not work directly for any distributor that I know of. He did mine and was working 2 others at the same time. One of those was similar to me, a guy had him do the whole thing. Another was a guy who tried to do it himself and save money. After months of screwing around he hired my GC. You need a guy who knows his way around city hall a little. I tried to submit my plans and after 2 months they came back rejected by 3 different departments. I called the GC, he had all the dept heads meet at the bulidng and asked them what they wanted. As they spoke he drew on my plans. They were aproved the next day. Time is money. Ask around people who have redone a mat to find a GC, ask the installers. People in the biz know each other.

[harry]

Hi Pete
I know 65K cover only for construction. One guy did quote me 125K for this construction. I think that is too much.
Thanks a lot for your information.

[pete f]

It depend partly on size of course, and what you are working with to begin with. Mine worked out to about $40 a sq ft. plus equipment and fixtures. I will help you with any info I have.
I made an offer on an mat today, that store will need new everything. It is about 1500 sq ft, I plan on blowing 140k to make it nice. I may be a little off the mark, but 100-125 a sq ft is plenty.
brucefla helped me line it up, thanks Bruce. I wrote numbers as we talked, funny thing as I was jotting down stuff in the end the result was a best guesitmate 5 year return, which would be about right for a new re-do. I love it when number crunch right. Let's see how those numbers go with his wife...

Put the "turn key" in the dealer's hand and the price jumps considerably with many of them. If I get this deal together I will be begging my retired GC to do the job, maybe even send him to Europe as a perk, i know he likes to travel.

[harry]

Pete,
You mention about fixtures cost. Are fixtures the metal frames to hold water and sewer pipes? Or you mean Light Fixtures? Could you tell me the cost?
I just read back your first thread, look like your GC do all the job except Light Fixture and Vending Machines intallations, which are done by you. If this is true, I can use your rule of thumb $40/sqft cost to deal with my GC.
Thanks

[pete f]

Harry, I ment fixtures, fans, lights, sink, exit signs, some doors, stuff like that. the electrictrion hung the stuff. the GC built the bulkheads. All the plumbing and wiring stuff he paid for, and the sheetrock, carpentry stuff, also he did pay for 1 door and 2 intrerior doors..plans changed as we went along so anything I added after I paid for (doors,windows)

I guess $40 would be about right, at least for me and where I am.
I think the guy across the street from 1 mat I have spent double that though.
Mark is building a mat, maybe he will give some numbers up.

Some things cost the same no matter how big, like the electric box, lint trap, water meter, putting in gas lines. The differnce between 1600 sq ft and 2500 sq ft would be minimal. Building longer bulkheads, installing more machines would cost much more.