Buying a laundromat can be a great investment for an Entrepreneur. With predictable sales and cash flow, a Laundromat is an easy business to run.
It is also a business that requires little to no payroll costs and can easily be operated by an absentee owner.
Even as good as the business model is, there is always room for improvement to make more money so here are my 3 tips on increasing profitability when purchasing a laundromat.
Doctor's offices and businesses where people sit captive for periods of time have adopted the concept of digital advertising in their waiting areas. Most of these businesses already have flat screens TVs in their waiting areas so selling advertising space on it and generating additional revenue is an easy addition. Laundromats are another place where this concept can be used.
Don't worry, you don't have to go out and sell advertising space yourself. There are a number of companies that specialize in waiting room advertising specifically. They will go out, solicit businesses to advertise, create their ads and get them up in your facility. If you decide to pursue this, be sure to know how many customers come through your doors each day as it will be important in determining the type of rates you can charge.
You could also use this advertising medium as an opportunity to do a joint promotion with another small business in your neighborhood. Since marketing can be expensive and not every owner plans well for it, working out a trade agreement for advertising space with another business could be beneficial to both you and the other owner. They can get your name out to their customers and vice versa.
This is an easy one. Customers are sitting for long periods of time waiting for the laundry to be done. They may need a snack! Instead of them leaving and going down the street, have a vending machine there for them so they can buy their snacks from you. In addition to snacks, consider adding vending machines that carry cold beverages, coffee, ice cream or even refrigerated foods for a substantial snack.
Don't forget to have a vending machine that offers laundry soap and other products like fabric softeners and stain removers. It is inevitable that someone will walk in and realize they have forgotten their detergent. Rather than go home and come back, they will most likely just buy one from the vending machine out of convenience.
Wifi and Entertainment Options
Many Laundromats now offer Wifi to their customers. Some charge for it, while others give it away for free. If you want to see a direct profit from offering it you will have to charge for it, but consider this, by offering it for free, you will most likely keep customers in your facility longer.
That would give them the opportunity to buy more from your vending machines and may be seen as a value-added item that turns them in to loyal returning customers.
In the past, some Laundromats have been successful at generating profits from adding video games but with the birth of the smart phone, things like this are becoming less popular.
About This Contributor: Peter Siegel, MBA is the Founder & Senior Advisor (ProBuy & ProSell Programs) at BizBen.com (established 1994, 8000+ California businesses for sale, 500 new & refreshed postings/posts daily) working with business buyers, small business owners/sellers, business brokers, agents, investors, and advisors). Reach him direct at 866-270-6278 or 888-212-4747 to discuss strategies regarding buying, selling, (or financing a puchase of) California businesses.
|Helpful Resources To Assist In Selling And Buying California Businesses|
|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.
|Peter Siegel, MBA - SBA Loans, Non SBA Financing Assistance
For over 25 years I have provided niche business purchase financial advisory and loan placement services with SBA and Non-SBA Loans, Retirement Plan Conversions, Private Investors, etc. Financing amounts available: $20K to $7MM. Call today to get pre-qualified or receive financing: 866-270-6278.
|Brad Steinberg, Broker - Laundromat Specialists
PWS is the leading laundromat broker in California. Since 1968 PWS has brokered over 2,500 laundromat sales. With over 90 employees dedicated to the coin laundry industry, PWS has 18 licensed agents, a 3 person in-house finance department, 10 service technicians and a 20 person parts department.
|Steve Erlinger: Laundry Broker, Consultant - Southern California
I specialize in the laundry industry broker and consultant in Southern California. 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.
|Larry Larsen, Broker, Laundry Specialist - Orange, LA Counties
I have over forty years of experience in the sales, ownership, management, and construction of coin laundries. He is a licensed broker active in the sale of coin laundries, a licensed insurance agent specializing in coin laundry insurance.
|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.
|Janet Carrera - Escrow & Bulk Sale Services - SF Bay Area
Redwood Escrow Services, Inc. is a full service, licensed independent escrow company. We are EAFC Fidelity bonded, fully insured & licensed with the Department of Corporations. Committed to offering our clients the most comprehensive variety of escrow services available. Phone Janet at 510-247-0741.
|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.
|Related Articles, Events, Blog Posts, Discussions, Videos, Interviews|
|Interview: With Chuck Post On How To Buy A Laundry Business Successfully
Chuck Post (and his Associate Chris Mason) a California laundry consultant, due diligence specialist, buyer representative for laundry buyers shares his thoughts with Peter Siegel, MBA on his weekly BizBen Vlog & Podcast show. Chuck and Chris cover all related topics on buying a California laundry.
|FREE Online Webinar This Week: For Buyers - How To Buy & Value Laundromats
Chuck Post hosts this live FREE online webinar on How To Buy & Value A California Laundromat. Webinars are scheduled every week! Have your questions ready for an open and honest discussion about both the pros & cons of the laundry business. Phone 619-227-5711 for more information & to RSVP today.
|Laundromat Business Valuations: Could Buyers Of Laundries Be Overpaying?
Chuck Post (laundry buyer rep, consultant, due-diligence expert) discusses the factors of appraising laundries. Why such high purchase prices is baffling - many times the value is so misunderstood that it results in laundry buyers over-paying for a laundromat. Reach Chuck direct at 619-227-5711.
|Laundry Expert Reviews: The Laundry Lease And Its Effect On The Valuation
Read why longer leases increase the value of a card or coin laundromat when buying or selling a laundry. Chuck Post (Laundry Broker, Consultant at 619-227-5711) expands on the topic of lease structures on the purchase or selling of a laundromat. Laundry sellers and buyers will want to read this.
|Laundromats: Are They Good Investments For Business Buyers? We Discuss This.
Are laundries good investments for buyers? Chuck Post, (at 619-227-5711 - California laundry consultant, due diligence services, and laundry buyer representation) discusses this topic with other advisors & brokers in this BizBen Discussion about laundry investments and if they are good investments.
|When Buying A Laundry Why Buyers Should Have An Exit Strategy When Buying
Chuck Post (reach him at 619-227-5711) a laundry consultant, specialty broker, buyer representative & due diligence advisor starts this discussion on why it's important to have an exit strategy in mind while buying a laundromat! He & others explain why this concept is so important to serious buyers.
|FREE Live Laundry Seminars For Buyers: See Our Upcoming Schedule Of Seminars
Looking to buy or start up a card or coin laundromat? PWS Laundry is presenting their schedule of upcoming Seminars for laundry buyers & entrepreneurs. These informative live Seminars will cover an overview of the laundry industry, selecting the right location, an overview of leases, Q&A, plus more.
|Laundry Broker Explains Laundry Leases: 4 Big Issues For Buyers And Sellers
Chuck Post (Laundry Buyer Rep, Consultant, Due Diligence) discusses what laundry buyers and sellers should consider when reviewing and considering a laundromat lease. A must read for potential laundry buyers and owner/sellers of card and coin operated laundromats. Reach Chuck at 619-227-5711.
|See All News, Tips And Events|