poverty level impact

[hithere]

Hi there,

I am considering open new store in the middle of community like this:

1) most rental apartments:60%+
2) 99% African-American people
3) very poor income: 15% less than $30,000 annual income

My question is what influence does this poverty level impact our laundry business?

I know laundry business normally depends on poor people who don't have their own laundry machines, but would it be (1) too dangerous, (2) too rough, (3) much vandal (4) too many homeless or hanging-arounds problem (5) they don't have money to come our store???

What about your store?

Personally, I don't think "the more poor neighbor, the better laundry business"
What do you think?
is there certain minimum income level that support our market?

can you share with me what you think of this issue...??

Thank you,

[Anonymous]

even poor people, they also need LAUNDRY, so your new store would be ok...good luck

[William]

I am not a big fan of opening a new store, but I am risk averse. Are there no existing stores in the area? How are they doing? Do you feel that you have your store under control enough to consider a second?

[Mungo Spike]

Sounds to me like it's not so much the economics of the demographics you're worried about as much as its safety and security.
I've looked at stores located in poor neighborhoods that have bars on the windows, graffitti on the walls, etc., and knew immediately that I wouldn't feel safe running a business in such an environment.
I know a guy with a laundromat in Baltimore who told me he wears a pistol on his hip when he works at his mat. I just can't imagine voluntarily buying into that kind of business environment.
Good luck ... Mungo

[DuboisLaundry]

I think everyone (except nudists) likes to have clean clothes.

Skid Row Bums only get clean clothes when the charity gives them another set of discards. If these are the only people in your neighborhood, they only want to shoot-up dope in your bathroom and use all your toilet paper.

People in 7000 sf mansions with 5 car garages have machines at home (for the stuff they don't have dry-cleaned). If these are the only people in your neighborhood, you might not collect enough on self service to make rent. Convince these people to always use your excellent WDF service and you might do very well.

Somewhere in between these economic extremes are the people who will keep us in business.

A single mom with 2 jobs and 3 kids will come to us every week if we have enough machines available to do all her laundry at once when the laundry room at her apartment does not.

I like people who come every week and use 4 or more machines at a time!
People who come less often or use less machines are nice too.

[hithere]

I think everyone (except nudists) likes to have clean clothes.

Skid Row Bums only get clean clothes when the charity gives them another set of discards. If these are the only people in your neighborhood, they only want to shoot-up dope in your bathroom and use all your toilet paper.

People in 7000 sf mansions with 5 car garages have machines at home (for the stuff they don't have dry-cleaned). If these are the only people in your neighborhood, you might not collect enough on self service to make rent. Convince these people to always use your excellent WDF service and you might do very well.

Somewhere in between these economic extremes are the people who will keep us in business.

A single mom with 2 jobs and 3 kids will come to us every week if we have enough machines available to do all her laundry at once when the laundry room at her apartment does not.

I like people who come every week and use 4 or more machines at a time!
People who come less often or use less machines are nice too.

the area is, I think, somewhere in between those extremes....so, sounds like
it could be OK....

Thank you for your kind advice....

ps) what about 24 hours opening? I heard that 24hour open can protect store somewhat...is this true and worth to do?

[Kitty]

Demographics is a key component to the location of a Laundromat, along with the due diligence. Owners prior and continuous education into this business and commitment to the day to day operation of the establishment once the store is fully operational is also essential to the success.

However, reading a demographics report is kind of funny. Sometimes misleading as well. Many times the Hispanic population is not even considered as many are not even legal citizens and may be a considerable amount of your revenue. When I spent time reviewing a location I not only reviewed a demo report, I did water analysis on all competitors and generated a dollar report for the area so I knew approximately how much laundry revenue was being generated in the area I was thinking of entering as I too was considering building new at one time. (I would have built new in a specific area several years ago if I could have found enough capital for the 600K venture, two laundries has since surfaced in the area I had planned. My plan of 3000 sqft was larger than what was built by either of the two locations although smaller than the combination of the two.)

Anyway, you should not only look at your customer base of the have not’s, but the have with, the commercial prospects and the most important your location.

Kitty

[pete f]

I have a mat dead center between 2 crack houses and a whore house to the side. Guess what, even the thugs and ho; need clean underwear. That is a card store with extra security,. 24hrs> are you crazy? Lock it down at midnite.

[hithere]

I have a mat dead center between 2 crack houses and a whore house to the side. Guess what, even the thugs and ho; need clean underwear. That is a card store with extra security,. 24hrs> are you crazy? Lock it down at midnite.

"24hrs> are you crazy? Lock it down at midnite"

WHY NOT??

Have you open 24 hurs?

What happened?

Thanks

[William]

The house across the street used to be home to a couple of guys with no visible means of support, but they sure had alot of friends. People would come and go at all hours. We never had a problem, because they were always on the lookout. Mainly on the lookout for cops, but on the lookout nonetheless...

[TLR]

Find real estate on a very busy road - just outside the "hood" - and not quite into blue collar area - and you may have a winner. -depending on competition - of course!

TLR

[pete f]

Most people do not even want to drive thru the area at nite, much less get out of thier cars. Midnite is plenty late for the locals. 24hr mat in a tough hood is really not worth it. That is what they make auto door locks for. You got your junkies, hookers and homless all looking for a warm place to sleep, toss in the occasional crack adict with a crow bar and a mission it all spells out trouble. If you run a crappy mat it makes no difference, mine hapens to be very nice and I intend to try and keep it that way.