What are some of the advantages of owning a coin laundry?
- Coin laundries are a very simple business. No special skills are required, and no special training is needed prior to buying a coin laundry.
- Coin laundries have a very predictable income stream with no large fluctuations from week to week.
- Since laundries are a necessity for many people each week, your revenues are not typically affected dramatically by outside factors such as falling stock markets or rising inflation.
- Coin laundries lend themselves very easily to absentee ownership. You as the owner do not need to be at your laundry daily. This means you can continue your present employment and use the coin-op as an investment or supplemental income. Many owners have more than one coin laundry because of this.
What does it cost to buy a coin laundry?
- Coin laundries usually sell for approximately three-to-four times their annual net income. For example, a laundry with a $75,000 annual net profit will probably sell for $225,000 to $262,500, depending on the lease, location, equipment, length of time on the market and other factors. This net-to-price denominator is higher for laundries with annual nets above $100,000 and "mega" stores which are larger laundries with more large washers and dryers. Stores like this are rarer on the market and command a higher sales price, typically four-to-six times their annual net income.
Where are the best coin laundries located?
What should I look for when visiting your listings?
- Coin laundries are a very location based business – the revenue the owner is making now, and what you can expect to make if you buy a laundry, is largely dependent on the location. Look for the following:
- A location on a very busy street is ideal, especially when combined with easy access for drivers – can customers access the laundry without tricky maneuvers or u-turns?
- A well-lighted plaza with either a national brand anchor (grocery store, dollar store, auto parts store, pharmacy, etc), or a convenience store anchor.
- Natural gas is cheaper than liquid propane (LP) gas.
- Look for a middle class or “blue collar” neighborhood with a mix of single family homes, duplexes, and apartments.
- High-density areas with a high renter population are ideal for laundries that are “all coin” operations with no over the counter services.
- Families with young children are often your best customer, and the more kids the better! Avoid locations where your base customers are older adults or empty nesters.
- Look for a safe location where women and families will feel comfortable doing their wash.
How can I be sure of the sales and expenses before I buy a laundry?
What about the lease on the premises?
- When you make an offer to purchase a coin-op laundry, it is made subject to your review of the seller’s books, records and lease on the premises.
- The seller provides you with complete books, records and income ledgers for the self-service (coin) collections as well as any over the counter (retail) sales such as drop off wash and fold, plus records of any vending revenues through a machine such as soda, soaps or snacks.
- The seller also provides receipts for their expenses such as gas, water and electric bills, supply purchases, parts and repairs, etc.
- You will also receive a copy of the lease for your review and approval.
- Once you receive the seller’s books, expenses and the lease, you have a pre-negotiated period of time to review them. If you are satisfied with your review, contact Rhonda and let her know you want to proceed with the purchase.
How much of my time is required to run a coin laundry?
- Plan to empty your machines of money and use those quarters to fill the bill changers a few times a week.
- If you have employees, you will also need to prepare the cash and rolled quarters needed for each shift a few times a week. Finally, you will want to make sure the laundry is kept clean, and that the vending machines and counter area are fully stocked with supplies. You have several options:
- Most owners visit their laundry three-to-four times during the week.
- Other owners check in once a day.
- Some owners chose to work at the laundry full time on weekdays, and use a part time staff to work nights and on weekends.
- Most operate their laundries as absentee owners, and use employees to open, close, clean and attend the laundry daily.
- However, even absentee owners should have a system in place to track the laundry’s sales and expenses weekly, and no one except the owner should empty the machines and stock the bill changers.
Does someone need to attend the laundry all the time?
- Laundries are either unattended, partially attended or fully attended – which style of operation you chose will depend on your preference and the demographics of the neighborhood where the laundry is located.
- Someone only needs to attend the laundry if wash-dry-fold and/or drop off dry cleaning services are offered at your location. These services can be great money makers in areas with a more affluent customer base who may own a washer and dryer, but who prefer to save time by dropping their dirty clothes off at a coin laundry, where an attendant washes them and has them ready for pick up later that day.
- No attendant is required for a self service coin laundry that doesn’t offer over the counter sales or drop off services. This type of “all coin” operation primarily needs someone – either the owner or a part time janitor – to clean the laundry and empty the trash cans a couple of times daily.
Who handles equipment repairs at a coin laundry?
- Typically when you purchase a coin laundry all of the equipment is in good working order prior to the closing of the sale.
- Most coin laundry owners use a repairman who is on call as needed and charges an hourly fee. Service contracts are rarely used.
- Many owners also do minor repairs themselves after watching and learning from their repairman. Contact us for a list of names and phone numbers of local repairmen.
Why should I use a broker like Florida Laundry Brokers to buy a coin laundry?
Who pays the sales commission?
- Coin-op laundries are our specialty, so we always have an inventory of profitable laundries for sale.
- We earn a commission only if the seller’s proof of sales and the lease are satisfactory to a prospective buyer. Therefore, you won’t find “problem” locations in our sales inventory. We strive to offer only the best laundries in South Florida to our prospects.
- You will find us ready, willing and able to answer all of your coin laundry questions, and our expertise is free to you.
- Our commission is paid by the seller at the closing.
What if I am interested in a coin laundry that is “For Sale By Owner”
or listed with another broker? Do you offer consulting services?
- Yes, Broker Rhonda McLane is available to act as your consultant for an hourly or flat fee.
- Contact Rhonda at 754-205-7140 or Rhonda@coinlaundrysales.com
I have no experience in the laundry industry.
Will that be a drawback to owning a successful laundry business?
- Most of Rhonda's prospects who become laundry owners have no industry experience when they purchase their first laundry.
- The seller will provide a period of free training when you close on the transaction.
- Most new owners find their transition to owning and operating a laundry to be a smooth one provided they are willing to learn the basic skills required.
- Here is an article from someone who was in the same position who shares what the experience was like for her and her husband: "A New Beginning".