Purchasing a laundromat that has been running for 30+ years

[Palmyra Jim]

I have learned a lot in the last month: reading, researching and visiting different sites. I found a l'mat for sale in a small town with a population of 14,650 within five miles of the site. There is one other l'mat right at the 5 mile mark. There isn't any competition for a Dry Cleaning drop off and pick up in a predominately "white collar" town.

The financials show approx. $100,000 gross for the last 4 years. His net is low but most of the revenue is going into labor. The percentages look right when it comes to all the bills. I plan on doing much of the work for the first year to learn the business, the repairs, and really give the place a face lift!!! I plan to add a wash and fold and dry cleaning drop off and pick up to the already average gross.

There are 509 rental units within a 1 mile radius (46% of the housing) or a total of 1,400 rental units within a 5 mile radius (26% of the housing).

I am assuming that each customer does 2-3 loads of wash and spends about $4.50 to $7.00. At that rate, I need 275 customers a week to support the $100,000 gross.

Does anyone know what the average customer spends on coin drops and dry cleaning?

Thanks,

Jim

[William]

What exactly are you trying to figure out? It has a 30 year history, you have 4 years of data. Will the deal meet your expectations or not?

Would it matter if there was only one rental within 20 miles? It is doing $100,000 per year. And, if it had 1,000 rentals within 20 miles? It is still doing $100,000 per year.

If one customer spent $300 per day then you should worry about how much the average ring is. Otherwise, it is what it is.

Don't get analysis paralysis. You can slice it and dice it more than Ronco. Just decide if it meets your requirements.

[Palmyra Jim]

William, I have driven by the location multiple times and I just have not seen the numbers go in and out of the location. I guess I do not trust the numbers. Once I put the offer in I will be able to evaluate all the bills and such to confirm the numbers.

Thanks,
Jim