Revenue Audit - Water Consumption

[blakewg]

I've been pulling water records for all the stores in my area - close to 40 stores. One store I'm evaluating - that happens to be for sale - has 24 old tops. When I use 32 gallons per turn i do not come close to his stated revenue. there are also dozens of other stores that have nothing but old top loads...how do i get a better idea of what their gallons/turn are? Or is 32 a safe assumption? How much can it vary? Thanks.

[James2011]

search this web-site...there were many articles about water usage vs. revenue....

it depends on machine types, how old, free standing building or strip mall, leaking, or not meter measured amount, etc....

you don't know how many turns they do...
so, it's hard to measure.....

[Adamski]

blakewg,

I think 32 gallons per turn is about right for a toploader of an unspecified brand. Water may also be used in the bathroom, to mop the floor, to cool the building, to water the landscaping, etc.

Anyway, here's what I might do: Take the total water consumption for a year and subtract about 10 or 15 percent for non-income producing uses such as those mentioned above. Take the remaining gallons (make sure you are dealing with gallons and not cubic feet) and divide by 32 to get the turns per year. Multiply that by the vend price on those 24 toploaders to get the washer sales per year. Take 50% of the washer sales and call that dryer sales. Add the washer sales and dryer sales together to get total estimated sales. Compare your estimated sales with the Seller's stated Sales. Then the fun begins ...

Larry /ubbthreads/images/graemlins/cool.gif