Turns per day

[Jack]

Most distributors are telling me the national average is 5 turns per day. 4 will make my project work but many owners are telling me they are doing 3 - 4.
What would you guys say is normal in an average market?

Thanks;
Jack

[pete f]

Do not go by national averages, go by averages in your market. What is the store you are looking at to buy and remodel doing for TPD now?

[Jack]

Thanks Pete. We are looking to build. The 2 mats in our town are 25 years old and only tops. No change, no cleaning, not all machines work. I can't tell for sure but I would guess they still do about 3 turns.

[DuboisLaundry]

Jack, is buying one of them and fixing it out of the question?

[Gatorlenny]

Turns per day is a distributor myth!!!!!! A new store will have almost no turns per day. If you are basing your decision to build on 4 tpd, stop! Base your decision on Can I afford to float the whole business out of pocket for a year or longer while the business finds an equilibrium. Man, I can run spread sheets that will make anyone salivate, but they just don't work out that way in the real world.

[mark2842]

Im new at this. Can someone explain what it means turns per day. Trying to learn the different terms....Thanks Mark

[Coinwash]

Use the search engines

As said over and over the answers are on this board all you all have to do is READ.................

http://www.coinwash.com/mb/showthread.php?t=473&highlight=Turns+Per+Day

http://www.coinwash.com/mb/showthread.php?t=471&highlight=turns

On this board we often see dreamers with pie in the sky projections, which are not based on much more than conjecture, feelings, and hope, along with a whiff of factual reality. Distributors love to sell tons of equipment and then point out the huge income if you just do 4 or 5 turns a day! Buy more equipment, the turns will justify it. This is, of course, great if the business actually exists, but that is often an analysis that is ignored. The tail ends up leading the dog.


Charlie
O.K. my first attempt at deciphering a waterbill/gross estimate (competitor's)

82,000 gal/mo. div. by 30 = 2,733 gal/day

11 top-L @ 1.75 34 gal/day = 374 gal.
5 F/L(20lb) @ 2.50 36 " = 180 "
1 F/L(40lb) @ 4.00 48 " = 48 "
______
602 "

2,733 div. by 602 = 4.5 turns/day

4.5 X 11 x 1.75 = 87.00
4.5 x 5 x 2.50 = 56.00
4.5 x 1 x 4.00 = 18.00
______
$ 161.00

161 x 30 days = $ 4,830 washer revenue

+ 2,070 dryer rev (30% of TTL gross)
-------------
$ 6,900. COIN gross

How badly did i mess this up ?

[ajay]

we had a new mat open in our area - close to 1.2 miles. demos were great, as I ran them as well. Currently the store is for sale after less than 1 year. Doing about 1.5 turns/day. The distributor over packed machines. I think I can almost build 2 mats with the equipment and still not hinder any business of average 4 turns/day.

ajay

[Boxer]

Do not go by national averages, go by averages in your market. What is the store you are looking at to buy and remodel doing for TPD now?

Turns per day is a distributor myth!!!!!! A new store will have almost no turns per day. If you are basing your decision to build on 4 tpd, stop! Base your decision on Can I afford to float the whole business out of pocket for a year or longer while the business finds an equilibrium. Man, I can run spread sheets that will make anyone salivate, but they just don't work out that way in the real world.


Is the "Turns per day is a distributor myth!!!!!! "

Who can you believe? How do you know the real TPD -- Do the Distributor or broker have a Crystal Ball on a new store? With a store right down the block.

Listen to Pete f it seems he no's - water + electric + gas = "$ "or = "no $"

But you can't do that on a new store- Remember the broker will sell the same store as many time as he can.

The distributors will have you sink your money into the building and out fitting and there job is done.

Now that you put your hard earned money into this Mat, and you were told you will have business , will it?, and how long will it take for a customer base?

TPD's how do they known? :D

[CENTEX]

I'm also in Texas. Tpd at one is 3, other is 3.5. I know of a few poorly run mats that may be only 1-2 tpd. Look long and hard at the competition and realize you have to split their business with them. good luck

[pete f]

I just want to beat this as much as possible. In fact I think TPD should not be used at all. Heck, I bought 5 mats never even knowing what TPD was. Even when I built the new one I used dollars per customer per rental per person formula. Average TPD, say is 5. So if you have 20 tops at 1.50 you have $150 plus 1/2 dry $75. Hey, why not supersize that ? Put in 20 50# machines at $5 ea now you have $500 plus 1/2 dry $250. Why build so small, let's double it! Now 5 TPD is $1000 plus 1/2 dry, $500. Wow! we are making $1500 a day and all we had to do was make a bigger store with more washers. Almost like there is no end to this magic formula for getting rich. Problem is average is just that. A home price for the national average is about $225k. Go to parts of CA or any city like NY or Boston, Chicago, and see what 225k will buy you. Then cruise to the small towns in the south or midwest, you will find mansions. So if you are a real estate investor, do you take the national average if living in CA to decide your deal? Of course not, you can't even buy a crack house. FORGET TPD averages. Find the local average and use that if you must use the TPD formula at all.