BizBen.com
500 New & Refreshed Posts, Postings Daily
Over 8,000 Postings & 2,500 Resources
Assisting Buyers & Sellers Over 25 Years!

Categories

Is This A Good Time To Buy A Laundry Business?



Posted By: Chuck Post: Laundry Specialist, Consultant, Due-Diligence.   How does the laundromat business look as we enter this changing environment? Is it still as easy to operate a laundry and be profitable? Is it still the American Dream Business that it has been known to be? Yes, but… Chuck Post, Laundry Advisor & Consultant initiates this BizBen Discussion post.


Comments & Feedback From Pro Intermediaries & Pro Advisors On BizBen:

How does the laundromat business look as we enter this changing environment? Is it still as easy to operate a laundry and be profitable? Is it still the American Dream Business that it has been known to be? Yes, but…

Costs of operating laundries have become exceedingly high. Utilities are climbing at rates never seen; 15% and even more in many areas as it is for about everything else that a laundry needs to operate. This is not just a laundry problem. This is a national restructuring of the American business model. Every business operator is in the same environment. Yet, by necessity, the laundry is facing an even greater model challenge. Laundries are supposed to be an absentee owned business. Is that still true?

Today, laundry owners are also facing the need to pay higher wages while needing to increase staff hours in order to keep even their loyal customers feeling safe and coming back. In several California markets, it is difficult to find quality staff at even $17.00 per hour. A self-service laundry pays out about 10% of its gross for cleaning, some staff presence and closing. Obviously, these models need to be re-thought.

The laundry lease is also something to consider. If buying a laundry today, it may be necessary to live with a shorter-term lease than the 20 - 25 years which has been typical. There may also be higher escalators and even more conditions placed on the lease, requiring adjustments to the investment model and exit strategies as well as operations.

So, are these laundries still easy to run profitably? Yes, when the laundry owner puts the policies into place and staffing is taken into consideration, the laundromat can be an ideal investment. Our clientele has also changed; now requiring better service, atmosphere, personality, and they now respond better to branding.

How can the laundry afford to pay these higher costs?

Today's laundry wins market share by adding the better customer experience. Cleanliness and Safety have always been the motivator for increased patronage, but never like it is now. Laundries which have added staff, and are now offering services, more and improved ancillaries, along with good operating procedures are gaining market share; some up by 20% and even more. In addition to market gains, price increases have accelerated up 10 and 15 percent, with more coming.

Those who have improved operations in their laundries are experiencing a larger market share have also found that individuals who once did not enjoy coming to the laundry, now experience the many advantages of those improvements, which gains exposure and caters to a larger customer base.

Laundry owners consist of some of the greatest firsthand entrepreneurs in America. The actual time required by ownership of today’s new modern laundry is not greater than running an old model. However, it does require better organization of thought, planning, hiring, and training. Once the owner sets up the newer model, they can still easily get by with under 10 hours of their personal weekly time.

It is the inability of many laundry owners to develop a model that will profitably service the community that keeps the opportunities coming. These major changes offer a greater opportunity to the prepared investor; more than ever before.


I've found laundromats to be a great investment, because as housing gets more expensive, and rent costs increase, many people are sharing these expenses more and more, and so a laundromat becomes more convenient for their needs. I agree with Chuck, those certain amenities, such as Wi-Fi, and additional on-site staff, are very important, and will help the business gain a higher market share in the area. In big cities, such as NYC, Chicago, LA, etc., there is always someone on site, as some locations will even charge $ per pound to clean the clothes for you and bundle them upon your return. These are services that many laundromats in suburbia are starting to adapt and see great success.




Place A Posting To Sell Or Buy A Business, Search All Postings


Sell A Business Fast: Place A For Sale Posting Now To Sell A Small Business - 7 Programs To Select From >
Find A Business To Buy Fast: Place A Wanted To Buy Posting Today - Best Way To Find & Buy A Business >
Search Business For Sale & Wanted To Buy Postings On BizBen - 500 New & Refreshed Postings Daily! >

Other Related Blog Posts, Articles, And Discussions You May Be Interested In

Selling A Business 13 Crucial Tips Selling A Small To Mid-Sized Business: 13 Crucial Items To Sell A Business

Only 30% of all small businesses for sale that are put on the market overall are sold! A surprising statistic to most business owners, agents, and brokers trying to sell a small business! If however you follow the strategies (BizBen Protocol Method) in this blog post you should see success!
Dual Agency Brokers Does Dual Agency Really Work For All? ProIntermediaries Discuss This Topic

Who really represents the buyer? The selling broker or agent through dual agency? Many brokers and agents weigh in on this Discussion on BizBen. Bottomline is all business buyers need to know who really represents them and has their best interest at heart when seeking and negotiating on deals.
Business Buyer Feedback On Postings 8 Items Buyers Of Small Businesses Find Critical When Reviewing Businesses

In this month's Business Buyer survey for BizBen.com, we asked participants in our ProBuy Program and 250 other random business buyers what they look for and avoid when looking at a business for sale postings online. Of the 20 potential posting characteristics we asked about, 8 stood out with most.
Appealing To Restaurant Buyers During COVID Tips On Selling A Restaurant: Appealing To Restaurant Buyers During COVID-19

ProIntermediary, Joe Ranieri (Business Broker) shares what buyers are looking for in this unprecedented market. COVID-19 has made curb appeal more important than ever when selling a restaurant. Sellers still have the power to attract buyers in this market with focus of a few key requirements.
Taking Back Up Offers Important Back-Up Offers: Crucial When Buying Or Selling A Small To Mid-Sized Business

An often overlooked aspect of selling (or buying) a small business is taking back-up offers during the entire process of selling (or buying) a business. Most sellers (or buyers) don't realize that over fifty percent of all deals/contracts fall out escrow or contract for one reason or another.
Latest Business Broker Survey 6 Successful Traits Of Top California Business Brokers: New BizBen Survey

The latest BizBen.com survey of California Business Brokers and Agents outlined what it takes to be a top ten percent performer in the business brokerage industry. From good communication to utilizing your resources, these traits are something to take note of and put into practice to be successful.
3 Car Wash Types To Purchase Buying A Car Wash Business: 3 Successful Types Of Car Washes To Consider

One of the most popular business searches (and eventual business purchase) on BizBen is the self serve and full service car wash. Peter Siegel, MBA (ProBuy & ProSell Programs Director) with BizBen.com reflects on three types of car wash models and what buyers should look for in a car wash purchase.
8 Questions To Sellers 8 Questions You Most Likely Will Be Asked When Selling Your Small Business

When selling your small business, you'll be bombarded with questions - from the brilliant to the ridiculous. You need to be prepared. Here are some of the key questions you can expect to be asked. Tim Cunha (SF Bay Area Business Broker) reviews many of these possible questions from potential buyers.
How To Select A Business Broker Selecting A Business Broker To Sell My Business: What Should I Look For?

What should your business broker do for you to successfully sell your small to mid-sized business? Well, there's many things that a qualified business broker can and should be doing for you. Multiple ProIntermediaries and ProAdvisors give suggestions and tips to sellers in this BizBen Discussion.
Questions When Buying A Liquor Store Buying A Liquor Store: 3 Questions To Consider And Ask Before You Purchase

Buying a liquor store? First, ask yourself these three critical questions to find out if owning a liquor store is right for you. Questions like hands on vs absentee ownership, inventory turnover, licensing issues. Peter Siegel, MBA (BizBen ProBuy & ProSell Program Lead Advisor) explores this topic.