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I bought another laundromat

Doug Smith

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Good luck on the project. This caught my attention because I use laundromats and find the whole process frustrating. My apartment has a single machine in the basement for 8 units. Most of the time it's adequate for my needs. Sometimes I let the loads pile up and need to do them all at once, or need to wash bedding too big for these machines.

In my local area all of the laundromats are horrible. They are dirty, the change machines don't work, and the detergent vending machines are often empty.

There is a really nice facility one town over, and while they flawlessly address all of my concerns above and do a great job with marketing... There is never a place to park.

I came very close to just buying new bedding so I didn't have to deal with it :)
 

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Neng Her

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Will you offer or is already offering, free drying for your customers?
 
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BrandonS85

BrandonS85

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How much does it costs to start a laundromat? Are they still a good business to invest in? How much profit are you generating each month after all overhead is paid?
Between nothing and a few million - It's too hard to get a solid answer because it depends on new development vs existing, what size you need, equipment ,etc.

Brilliant idea, IMHO. But believe you'll need to keep some coin options available depending on location. This should also allow a future customer loyalty program to further lock folks in.
Yeah, too many people here are cash-only, had people come by and BEG me to to not go to cards because one of the few options in town did and now they're stuck driving 3 miles elsewhere.

Will you offer or is already offering, free drying for your customers?
No , it encourages people to come in with stuff they didn't wash here. I figure 25-50c to dry is more than worth it.
 

Real Deal Denver

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We opened up blocked doors in part of the laundromat facing the street. Was told it was an abandoned stairwell.

Ends up it was a real estate office.....so I now get a free 12x12 office along with the laundromat.

View: https://www.youtube.com/watch?v=kpJWZQwnZcE
Great video. I see lots of potential there.

And now a free office? You don't need an office - rent that baby out.

I think the office rent could make the payments on new machines - and then you'll really be doing great.

I think you really found a great diamond in the rough that you will make a lot of money off of.
 

Siddhartha

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Laundromat/Car washes have always been touted as the secret key to wealth as long as I can remember; it's fascinating to see someone actually go through and build one up, and find secret rooms and make money even from broken machines. I am following this thread my dude.

Question: I noticed you don't have bars on the windows and want to bring an ATM in, my first guess is that you live in a relatively rural area? Even the local car washes down here have bars on the office windows and 2-3 deadbolts. Good on you for having passive-security measures in being in a nicer part of the u.s.
 

Ernman

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We opened up blocked doors in part of the laundromat facing the street. Was told it was an abandoned stairwell.
At the risk of stating the obvious, this drives home the importance of thorough due diligence. In this case BrandonS85 got lucky.
 

Ragnar_

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Yeah, too many people here are cash-only, had people come by and BEG me to to not go to cards because one of the few options in town did and now they're stuck driving 3 miles elsewhere.
That's interesting for sure. The versions of this card reading system that I have seen have the ability to insert cash and coins. I will counter my sell for the card readers by saying the coin operated laundromats are just as busy!

@BrandonS85 not sure if I missed it while scrolling the thread, but have you considered providing B2B or B2C drop off laundry services? IMO getting business clients would be ideal (less chance to mess up some ladies blouse.) There's a need to wash uniforms or towels and it can be a great way to increase profit, and justify hiring employees (attendants.) I have seen ridiculous prices like $2.00 per pound to wash clothing.
 
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BrandonS85

BrandonS85

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That's interesting for sure. The versions of this card reading system that I have seen have the ability to insert cash and coins. I will counter my sell for the card readers by saying the coin operated laundromats are just as busy!

@BrandonS85 not sure if I missed it while scrolling the thread, but have you considered providing B2B or B2C drop off laundry services? IMO getting business clients would be ideal (less chance to mess up some ladies blouse.) There's a need to wash uniforms or towels and it can be a great way to increase profit, and justify hiring employees (attendants.) I have seen ridiculous prices like $2.00 per pound to wash clothing.
Absolutely doing B2B and B2C aspects for drop-off as well as looking at utilizing uber/lyft to do all the heavy lifting and collect laundry from various locations for us. Also looking at locker drop-offs at the local college campus that we can empty and off-site wash/dry/fold as well.
 
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BrandonS85

BrandonS85

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During the month of July, between money recovered from machines (There were PLENTY of quarters stuck in machines), soda sales from our outside machine that had been running for almost a month prior to opening, rent from apartments above the laundromat (Did I mention there's apartments that pay for the mortgage, taxes and insurance?) amounted in a total revenue July of $3,651.65 - Of which $1300 was rental income, $1851.65 as income from washer/dryers/recovery, and another approx $500 in vending sales.
Costs of operations were :
* Mortgage $537
*Electric $450
*Water $220
* Taxes & Insurance $450
* Daily labor costs (Cleaning, open/closing) - $400
* Vending costs $225
*Net income - $1,369.65*
For the month of July, we're already well past the daily average rate by about 40% on washer/dryer sales then another 20% up on vending sales. My variable costs (utilities & vending products) are pretty marginal compared to my mortgage, taxes, insurance and labor costs. So as revenue goes up, net should increase greatly. My personal time commitment on this is limited to re-stocking vending machines and collecting cash, maybe 30 minutes a day if that.
For fun, I've been documenting the process on my *non-monetized* youtube channel, I thought it'd be a interesting project to show these kinds of operations from start to finish and talk about what goes on behind the scenes. The playlist that I'm updating is :
View: https://www.youtube.com/watch?v=jqAtHpEn1g8&list=PLcr-Kg1ZjBjG91Sygf1Bucj-WfVTKsdTB
 

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