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What Changes Are You Seeing In Coin And Card Laundry Businesses?

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Comments & Replies: 1     Views: 2064     Posted By: Steve Erlinger  



Topics: Buying A Business, Selling A Business     Tags: buying a business, selling a business



In the last couple of years, we have seen an increase in the number of new stores opening and older stores being remodeled and re-equipped with the latest in commercial laundry equipment. The pace is not what it was in the very prosperous times of the early to mid-2000s but there is plenty of activity.

As mentioned in previous blog posts, articles and discussion, coin and card laundry businesses are a popular business that attracts a lot of interest from a wide variety of prospective operators/buyers. People are attracted to the possibility of being self-employed, having a less stressful work environment, flexible hours, the casual lifestyle and, hopefully, an attractive return on their investment.

Coin laundry buyers vary widely in terms of their background and ambition, as does the size of their operations they buy. For example, their operations can range in size from one or two stores to large chains. In many U.S. cities, immigrants are investing in the laundromat business in order to get a visa.

Nevertheless, coin-op laundries serve the same need they always have and it's not unusual to see some stores that look no different than they did 20 years ago. However, the business is changing. Some changes are obvious and have been happening slowly over the last several years. For example, coin operators are installing larger, energy efficient washers and dryers, payment systems outside of coin and are remodeling to make their stores more attractive.

I have noticed another interesting development. I believe it is due mostly to one of features that attracts everyone; a good return on investment.

It appears to me that, in addition to the entry-level entrepreneurs who have long been interested in the coin-op laundry business, more and more established successful business owners, with plenty of money and resources already, want to invest in this business. Experienced business people are discovering that the business, though not overly glamorous, can be very profitable.

Over the years, I've received calls from potential business buyers inquiring about the laundry industry. For the most part, these have been individuals who have a job and want to supplement their income. They see this business, with its "promise" of limited active management, as a means to achieve this goal. Or, it may be the retired person who has money to invest and wants to keep busy (but not too busy). Then, there is the potential business buyer who just wants out of the corporate world and wants to be self-employed!

In the last year, I've noticed a new group of people inquiring about the industry - interested in either building new laundromats or remodeling old ones: a large real estate holding company, management company owners, a retired highly successful insurance agent, a gentleman who has owned a number of pharmacies, and a variety of others with extensive business experience and deep pockets.

These people are building a better mousetrap. They understand that you have to invest money to make money and they are not afraid of investing a little more to do that.

How are they spending this money? We know that Clean, Bright and Safe are the cornerstones of a successful coin or card laundry small business but more owners are taking other amenities to a whole new level. The days of prefabbed folding tables, linoleum floors, standard ceiling tiles and a couple of vending machines are going by the wayside.

We are seeing beautiful polished concrete or porcelain tile floors, high open ceilings with large fans and more comfortable seating. There are device charging areas and workstations, free Wi-Fi, an elaborate choice of vending machines and/or kiosks, play areas for children, more interesting and up to date color schemes and other beautiful design features. These people are building stores that people truly donít mind hanging out in. It's almost like you are in a chic coffee house while you do your laundry. These new laundries are also taking customer service to a new level. Though there are still plenty of self-service laundries, it seems that more and more are turning into attended stores. Card stores generally need an attendant and since there are more card stores, the result is more attended stores.

In addition, owners are recognizing that competition is growing and a way to beat the competition is with better customer service. As with any business customer, service pays off. Iíve mentioned before that even though a typical coin-op laundromat customer may not be in the highest socioeconomic tier, they still want and appreciate a nice place to do their laundry AND they also appreciate good customer service!

Rounding out the better mousetrap is the laundry equipment. The most important element of making a store look and operate better is quality equipment. Not only do the commercial washers and dryers need to be attractive, easy-to-use and reliable for optimal day-to-day operations, they need to last, over the long term. The right laundry equipment, properly taken care of, will last 15-20 years.

Having spent many years in the coin and card laundry business I find these changes interesting and exciting to watch. It's always fun to see innovation and improvement! The message here that I hope current or future coin or card laundromat business owners will hear is that building a quality product and giving great customer service is paramount if you want to keep up and compete with these quality entrepreneurs and modern, state-of-the-art laundromats.


  Helpful Resources To Assist In Selling And Buying California Businesses

Brad Steinberg, Broker - Laundromat Specialists

Laundry specialists - founded in 1968 by three laundry professionals, PWS is a family-owned corporation. Through the years it has grown to become the largest vended laundry equipment distributor in the United States. Call Brad Steinberg at 323-721-8832 to sell or buy a coin or card laundromat.

Willard Michlin, CPA, Certified Fraud Examiner, Due Diligence Services

Willard Michlin, CPA #106752, offers buyers step by step training & assistance in doing Due Diligence Services when they are thinking of making an offer, or are in process of investigating a business purchase. He helps to determine the actual net profit even when there is cash. Call 800-864-0420.

Mike Hurrell, Broker: Coin & Card Laundry Specialist Brokerage

Providencia Properties Inc in association with Golden State Laundry Systems is a full service Coin Laundry Real Estate Broker. At GSLS you will receive personalized attention from our professional staff of coin laundry experts. To sell or buy a Southern CA laundromat call Mike at 310-223-2240 X209.

Helen Yoo: Escrow & Bulk Sale Services - Southern California

New Century Escrow, Inc. is a fully licensed & bonded independent escrow company. Over 20 years combined experience in handling bulk escrow transactions. Multi-lingual staff that speaks your language, including Korean, Chinese, Vietnamese. Call Helen Yoo direct at 626-890-1151.

Diane Boudreau-Tschetter: Escrow And Bulk Sale Services

California Business Escrow, Inc. is a full service independent escrow company serving all of California and has expertise in a wide range of escrows. Our team prides itself on providing an exceptional escrow experience. For more info phone Diane Boudreau-Tschetter at 888-383-3331 or 209-838-1100.

Steve Erlinger: Laundry Broker, Consultant - Orange/Riverside Counties

I specialize in the laundry industry (Broker/Consultant at 949-500-5893) - Riverside, Orange Counties. I assist buyers navigate the many facets of finding, evaluating, and operating a laundry business. I also help current laundry owners find additional stores, sell, evaluate an existing laundromat.

Mark Chatow, Esq.: Legal Services For Buying, Selling Businesses

Mark has a broad range of small business purchase & sale experience from analyzing potential acquisition targets to successfully guiding buyers and sellers through the purchase & sale of small businesses. Mark can assist with contracts, negotiations, legal matters, etc. Reach Mark at 949-478-8393.

Chuck Post: Laundry Buyer Representation, Consulting, Due Diligence

Chuck Post has 32 years experience in the laundry industry, specializing in assisting laundry buyers (and entrepreneurs) with buying or starting up, building, re-tooling, laundries throughout California. Laundry buyer representation, consulting, due-diligence, lease negotiations, laundry valuations.


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