better to know what could be happend

[hithere]

Supposing you open new store just near to existing store, then if the owner of existing store is really BAD & UGRY guy,then what damages or trials he could attempt to ruin your business if he wants to do...?

[DirtyLaundry]

First of all, if you open a new store near an existing store, you have more than likely ruined your own chances of having a successful business. Why do investors and distributers alike - when they see a store doing good business think they can come in with a new store and do good business also. It just slices the pie into smaller pieces, M&L. Why don't you "bad and ugry" guys find an untapped location???

[TLR]

That existing store owner is fighting for his life - because of you! The gloves are "off" and any attempt to put you out of business - within the law - is "fair game" - Sorry - but you put yourself in this position.

TLR

[amartlock]

If you open a new store close to an existing successful store you should be shot. Just kidding, but you do certainly deserve a good beating. Most places are already over saturated with mats.

[Buddy_Amoroso]

I disagree.

The old store will always have a price advantage; the new store will have new equipment. The old store will have customer loyalty.

I believe that the new store can expand the pie by attracting new customers.

If the old store is not taking care of their customers, the store is dirty and the equipment is in bad shape, that store will lose customers to the new store.

Our concern should be taking care of our business and not losing sleep over our competition.

buddy_amoroso

[laundryboy]

Try and buy out the owner. Then your pie will be even better, maybe a cobbler a-l-mode.

[hithere]

I disagree.

The old store will always have a price advantage; the new store will have new equipment. The old store will have customer loyalty.

I believe that the new store can expand the pie by attracting new customers.

If the old store is not taking care of their customers, the store is dirty and the equipment is in bad shape, that store will lose customers to the new store.

Our concern should be taking care of our business and not losing sleep over our competition.

buddy_amoroso
the best advice so far
under "fair law", and living in "free world", why not open new store near to existing old and dirty and small store....??

[Monarch]

Competion can be good. It can be bad. But it is a basic part of business. If you decide to compete with an exisiting faciltiy, part of your due diligence is, or should have been, to determine if the market will support more than one operation. sometimes it will, and sometimes not. But to find out AFTER you have built a new operation is a bad, very expensive mistake.

And as noted above, how your competitor reacts will be a part of what you must contend with. This may include "bad Mouthing" your facility, or being more aggressive in how he/she markets their own business. Of course, if the competitor resorts to illegal measures then you must get the law involved.

The point is you cannot open a new operation without allowing for this. As noted, if you are taking part of the competor's business away, they are going to fight to retain it. It is the nature of business. So I agree with Buddy to a point only. You must not lose sleep over what your competetor does, but you still need to be aware of what that competitor is doing.

JMHO

Norman

[Aromaz]

Two dirty tricks I've encountered are: Having gas shut off and shut-off valve padlocked at the meter. Or having main water valve closed and the handle removed. Always when I'm not around and usually on Sat or Sun.

[Silent Roo]

I tell you why I as a distributer would put a store next to an existing one, Money. If the owner of the existing mat is not willing to updated, remodel, or maintain I know his business is not long term. Too often Coin Laundry owners feel that because they are there they should make a living. Sorry but that is not how business works. If you as a owner are not willing to invest and maintain your business we will target you.

I am in an industry where I can walk into a store where I have never seen an owner, who's Equipment is from the 70's who cleans once a week and takes the money weekly. Sorry but I don't feel that he is in business. He might as well have a vending route.

We as Distributers are smart enough not to put a new store next to a well run well managed store.

AS to the orignal question.
It depends on what the guy has and what he has in the bank. I have seen guys run at a loss for 6 months trying to keep what they have. I have seen guys close up shop and go away, I have seen guys do nothing. My guess is the amount of time you see the owner in his mat is going to decide what he or she does....

[hithere]

I tell you why I as a distributer would put a store next to an existing one, Money. If the owner of the existing mat is not willing to updated, remodel, or maintain I know his business is not long term. Too often Coin Laundry owners feel that because they are there they should make a living. Sorry but that is not how business works. If you as a owner are not willing to invest and maintain your business we will target you.

I am in an industry where I can walk into a store where I have never seen an owner, who's Equipment is from the 70's who cleans once a week and takes the money weekly. Sorry but I don't feel that he is in business. He might as well have a vending route.

We as Distributers are smart enough not to put a new store next to a well run well managed store.

AS to the orignal question.
It depends on what the guy has and what he has in the bank. I have seen guys run at a loss for 6 months trying to keep what they have. I have seen guys close up shop and go away, I have seen guys do nothing. My guess is the amount of time you see the owner in his mat is going to decide what he or she does....


thanks buddy............................................. .............

[troy]

If you are an owner, then don't do it.
If you are a distributor, then who cares! You make money whether the current owner or the new sucker dies or is dying

[DirtyLaundry]

We as Distributers are smart enough not to put a new store next to a well run well managed store.

AS to the orignal question.
It depends on what the guy has and what he has in the bank. I have seen guys run at a loss for 6 months trying to keep what they have. I have seen guys close up shop and go away, I have seen guys do nothing. My guess is the amount of time you see the owner in his mat is going to decide what he or she does....[/QUOTE]



First of all, not all distributers are necessarily as smart as you, or maybe they are smart, but not quite as ethical. A local distributer in my area likes to take the stores that have gone out of business, and I guess because the utilities and hookups are still existing (a major expense) will come in, completly gut the space, remodel and equip it with totally new equipment - then find a sucker to buy it for the price of a new store. (WHEN THEY KNOW that a veteran operator has previously failed to do enough business there to survive)
This new operator/investor (sucker) will try everything he can do to get a profit out of his beautiful brand new store, but eventually gets tired of operating at a loss, and tries to sell it. He has to drastically lower his asking price for the store, and take another loss, just to get out from the loss.
This new sucker (thinking he got a great deal) on the store - and he did considering what the previous owner paid for it about a year or two ago. So with his lower overhead and almost brand new equipment he tries everything he can do to make his investment a profitable one. After a couple years of flirting with break even, he eventually gets discouraged, and puts the store up for sale. He also has to significantly lower his asking price, just to get out from underneath a business that isn't making enough money, to sell it to sucker #3. I think you see the pattern here.
All the while the existing stores around this one are getting a thinner piece of pie all because an unethical distributor has come up with a way to make quick cash by going into closed up locations, gutting them out completly remodel and re equip them, (taking advantage of the existing utilities) and selling the location as a new store.
I know all distributers are not the same, but if you ever wonder why more and more operators are throughly disgusted with distributers, this is just one shining example. After the sale, the distributer has made his money, and could care less about the operator who is going deeper and deeper in debt, losing their savings and investments, or any of the other operators in that area.
All the while, all the other store operators in the area getting a thinner piece of pie because of this additional location. What does this distributor care? Another store out of business, is just a new business oppertunity to them. Do I have a bad attitude about laundry distributers - you bet, about as much as I care for ambulance chasing attorneys. To get back to the topic - you're all bad and ugry bottom feeders. (you don't want to hear what I'd like to say)

[hithere]

We as Distributers are smart enough not to put a new store next to a well run well managed store.

AS to the orignal question.
It depends on what the guy has and what he has in the bank. I have seen guys run at a loss for 6 months trying to keep what they have. I have seen guys close up shop and go away, I have seen guys do nothing. My guess is the amount of time you see the owner in his mat is going to decide what he or she does....



First of all, not all distributers are necessarily as smart as you, or maybe they are smart, but not quite as ethical. A local distributer in my area likes to take the stores that have gone out of business, and I guess because the utilities and hookups are still existing (a major expense) will come in, completly gut the space, remodel and equip it with totally new equipment - then find a sucker to buy it for the price of a new store. (WHEN THEY KNOW that a veteran operator has previously failed to do enough business there to survive)
This new operator/investor (sucker) will try everything he can do to get a profit out of his beautiful brand new store, but eventually gets tired of operating at a loss, and tries to sell it. He has to drastically lower his asking price for the store, and take another loss, just to get out from the loss.
This new sucker (thinking he got a great deal) on the store - and he did considering what the previous owner paid for it about a year or two ago. So with his lower overhead and almost brand new equipment he tries everything he can do to make his investment a profitable one. After a couple years of flirting with break even, he eventually gets discouraged, and puts the store up for sale. He also has to significantly lower his asking price, just to get out from underneath a business that isn't making enough money, to sell it to sucker #3. I think you see the pattern here.
All the while the existing stores around this one are getting a thinner piece of pie all because an unethical distributor has come up with a way to make quick cash by going into closed up locations, gutting them out completly remodel and re equip them, (taking advantage of the existing utilities) and selling the location as a new store.
I know all distributers are not the same, but if you ever wonder why more and more operators are throughly disgusted with distributers, this is just one shining example. After the sale, the distributer has made his money, and could care less about the operator who is going deeper and deeper in debt, losing their savings and investments, or any of the other operators in that area.
All the while, all the other store operators in the area getting a thinner piece of pie because of this additional location. What does this distributor care? Another store out of business, is just a new business oppertunity to them. Do I have a bad attitude about laundry distributers - you bet, about as much as I care for ambulance chasing attorneys. To get back to the topic - you're all bad and ugry bottom feeders. (you don't want to hear what I'd like to say)[/QUOTE]

you're all bad and ugry bottom feeders. (you don't want to hear what I'd like to say
==> no, I DON""T think so,
business world is buisness....anyone should prepare this scenario...
I saw many times, new, big store came up close to near to old/dirty/small stores.... why NOT??

[DirtyLaundry]

You've missed the point. I didn't say there we were dealing with any old or dirty stores. In the scenario that I described no laundry operator benefitted in any way. The only one to make money in the deal was the laundry distributor - selling a complete store of equipment based on BS proformas when they knew the business was destined to fail. Yea, business is business, and I certainly hope no one takes any of your pie, hithere.

[pete f]

Supposing you open new store just near to existing store, then if the owner of existing store is really BAD & UGRY guy,then what damages or trials he could attempt to ruin your business if he wants to do...?

Shut off your water or gas, as mentioned.
Run free dry/wash cheap ,etc specials The old store probably has little debt, so they can get by on much less gross if need be. Maybe the old store remodels then they keep thier customers, what does the new store have now?
A pile of machines and expense overhead. A new store has to pick an underserved location to make it, planning on stealling a "dirty stores" customers is a bad business plan.

[Walter]

My 2 cents worth:

Aside from Coinwash, you (as a laundromat owner) don't have any friends in the industry. My old boss used to say: "It is what it is..." referring to whatever corporate mess had just been dumped in our laps, along with whatever boneheaded or ugly human behavior was associated with it. His point was that irrespective of the human mendacity or duplicity at work, our job was to salvage the situation as best as we could.

Another quote comes to mind. Mitch Kapor, the founder of Lotus 1-2-3, once said that "The world doesn't owe you a cup of coffee..." meaning that you were pretty much on your own to make your own breaks in life.

Sure, I get mad as heck thinking of unscrupulous distributors who'll churn the same store 5 or 6 times - making their commissions along the way - but knowing in their hearts that the stores are doomed & hurting unsuspecting buyers big time in the process. Who would want their job and the blood money they earn? Not me.

IMO, best thing is to be mindfully aware of the situation, understand what you're dealing with, and steer clear of situations where the odds stack up long against you...

Walter

[hithere]

My 2 cents worth:

Aside from Coinwash, you (as a laundromat owner) don't have any friends in the industry. My old boss used to say: "It is what it is..." referring to whatever corporate mess had just been dumped in our laps, along with whatever boneheaded or ugly human behavior was associated with it. His point was that irrespective of the human mendacity or duplicity at work, our job was to salvage the situation as best as we could.

Another quote comes to mind. Mitch Kapor, the founder of Lotus 1-2-3, once said that "The world doesn't owe you a cup of coffee..." meaning that you were pretty much on your own to make your own breaks in life.

Sure, I get mad as heck thinking of unscrupulous distributors who'll churn the same store 5 or 6 times - making their commissions along the way - but knowing in their hearts that the stores are doomed & hurting unsuspecting buyers big time in the process. Who would want their job and the blood money they earn? Not me.

IMO, best thing is to be mindfully aware of the situation, understand what you're dealing with, and steer clear of situations where the odds stack up long against you...

Walter


very sophiscated sentenses...
profound meaning...
very good,thx

[Ken]

I have a lot friends in laundry business,some have stores near me,this is a very sample business,you worry too much.
A new store will make the pie smaller,laundry owners can improve their store to keep some of customers or do nothing .
A over 75 years True Value hardward just closed in my area because the Home Depo move in,the family own the store and buliding for 3,4 gen,don't think they have large debt.
Laundromat business is the same,if you don't improve the store,you may take the risk going under,lose business.....

[troy]

I like you, Dirtyclothes!
business is business, business is to make money, not to lose it overtime!
The distributor makes his living in selling machines, one way or another. If there are no more good locations, then he will comes to ANY location, so he can sell the equipments. If the owner dies later, too bad!

For the suckers, do not buy stores built by Distributors, buy from operators or build your own. Be very weary of Distributors!!!

[Silent Roo]

hate to tell you this but in every industry people lose money! Tanning salons, Subways, Gas Stations, Mom and pop type stores, ECT. Laundries are no different. I have put stores in where I know they will fail. I recenlty sat across the table from a guy and showed him the numbers and he did not care that it was going to lose him money, He was SURE I was wrong. I look at the demographic he had a feeling.

Yes we sometimes buy old stores and revamp them. I can tell you there are 100's of reasons laundries fail. Sometime lack of business is not one of them. For every story of someone redoing a laundry that failed that fails I can point to 20 that work. Many factors go into it. Debt, Demographics, Equipment mix, Business ability. It may be a predicter that someone else failed however do some research what % of new business fail. Laundries generally fall right in that same range.

Sometimes people go into the coin laundry business with an unrealistic expectation of what to expect. I know many distirbuters who feel that If they have a potential owner on the line it is the owners job to research. However I have seen over and over and over on this form and in life owner that inflate thier numbers to increase sale price.... I as a distributer have never done that. I think there is enough Fraud to go around in this industry....

[goingtoarizona]

A bad guy would open your machines and disable them or change the price sky high or free. Change your access keys, most are standard accross one brand (Maytag ZB7 ) .

[TLR]

learn to say and spell the letter "L"

TLR

[hithere]

learn to say and spell the letter "L"

TLR

you only know why...
can you share with us why we need to learn to say "L"??

[WhatwasIThinkin]

I knew someone would say it eventually....

[hithere]

learn to say and spell the letter "L"

TLR


Do you mean "L" = "Loser"?

[TLR]

HITHERE

Have you even read the previous posts........? If you have and do not understand my "L" post - then maybe you need to learn to spell and say the letter "L" also.

TLR

[pete f]

HITHERE

Have you even read the previous posts........? If you have and do not understand my "L" post - then maybe you need to learn to spell and say the letter "L" also.

TLR

I have to admit the "L" thing goes over my head also. I guess WhatWasIThinking got it. I would guess L for "lucky" but loser makes sense too..in the scope of this post. So what is the real meaning of L??

[hithere]

HITHERE

Have you even read the previous posts........? If you have and do not understand my "L" post - then maybe you need to learn to spell and say the letter "L" also.

TLR


why are you so "Elegant"? why not just explain what "L" means??

I give up at this point..

Now I don't need to know what "L" really means....

Good bye...."L" creator

[TLR]

Ok - I will explain -

The original poster spells UGLY as UGRY - and repeats it several times.

It reminded me of Christmas Story - when they go to the Chinese restaurant cause their turkey was eaten by the dogs - and the wait staff began singing Christmas Carols - far ra ra ra ra ... ra ra ra ra.... instead of Fa la la la la......la la la la.

You will probably sing that carol in your head for the rest of the day!

:) TLR

[pete f]

Ok - I will explain -

The original poster spells UGLY as UGRY - and repeats it several times.

It reminded me of Christmas Story - when they go to the Chinese restaurant cause their turkey was eaten by the dogs - and the wait staff began singing Christmas Carols - far ra ra ra ra ... ra ra ra ra.... instead of Fa la la la la......la la la la.

You will probably sing that carol in your head for the rest of the day!

:) TLR

mmn'goi si for the explanation