John James Smith
April 10, 2010 at 4pm est
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I am an Independent Laundry Consultant; but rather than work for a single Distributor, I work for the Client directly. In this system, the Laundry Buyer is not locked into any single location mix or equipment make. All available opportunities are considered; without prejudice and Due Diligence is done in every case. The only consideration is the goal of the individual investor.
Chuck Post
I've seen a couple of post regarding negative comments concerning distributors that also own coin laundries. As a distributor with family members that own coin laundries, the comments are absolutely false.
In our particular case, we offer non-compete agreements not to build a coin laundry that directly causes competition to your establishment that you have previously built or currently buidling using our services.
However, there is a difference in allowing a distributor to assist you with a "ground up project" and simply selling you replacement equipment.
A distributor's job is to sell equipment. If you want our particular brand of equipment, it is our job and mandate from the manufacturer to sell it to you. If a customer wants a particular brand, they are probably going to get it one way or another.
Any distributor should offer their assurance of helping you succeed with a new coin laundry by offering agreements not to build or compete within your immediate area with a NEW location. In any coin laundry we build, we offer our assistance and input to other coin laundries showing them of the immediate needs for the laundry to be built. It is their choice on the project first.
If you're looking to build a new laundry, insist that you have some type of assurance from your distributor. To offer a customer purchasing replacement equipment an EXCLUSIVE on brand or non-compete is not realistic.
Most distributors provide good service and restrict their operation to selling and servicing laundromat equipment. A few distributors operate laundromats that directly compete with privately-owned laundromats within the market. These distributors have the advantage of buying their equipment and parts wholesale and often set deep discount (charity) vend prices on their machines. As a result, all laundromats within the market suffer severe profit loss and stagnation. These distributors should be shunned by all operators.
Larry
Bob,
Some distributors build and operate laundromats in competition with operators who buy equipment from them. Often, these distributors set ultra-low vend pricing on their laundromat's machines. These distributors are not offering any real value and operators should avoid doing business with them.