Maytag he equiptment

[Soma]

I'm in the process of starting a new laundry, and have been working with a Maytag distributer. I have a few questions.

First off, can a Maytag He mat really have utility cost of 15% vs 25%, as they claim?

Second, the initial machine prices appear high based on reading post in here. They are:

54 hi-eff washer at 1520 each
9 25lb for 3361 each
14 35lb 4119 each
7 50lb 6050 each
7 50 lb dryer 2268 each
27 30lb stacks 4485 each

This is for a 3400 sqaure ft store.

They seem pretty high how do I negotiate to get them lower?

Second, what do you think of the equiptment mix given the following demographics:
.5mile 1.0 mile 2.0mile
population 5359 21444 64559

50% hispanic and 68% renters
about 50% income<30k

The proforma ran shows a break even of 2.3 cycles per machine.

It looks awesome on paper and I really like the location, but I am having trouble believing that it can be that profitable with so much debt?

Any input is greatly appreciated, be gentle.

Soma

[Avery]

Am I reading this correctly? You are starting with 84 washers and 61 dryers. If this is accurate, your ratio of washers to dryers is off. You always need more dryer pockets. Secondly - why so much equipment to start. How do you know the store will be that successful. How about less equipment on day 1 and set up the layout so you can add pieces as the volume increases. Otherwise the only person who makes out here is the salesman.

[Laundry_Mike]

Utility costs of 15% seem very optomistic to me. Ask your salesman for the names of some other laundries that his company put in, and see if you can talk to owners of those stores. I would also get some competitive quotes on equipment, so you know if you're getting a fair deal. Avery made a good point, don't put in all the equipment at first, but provide for expansion when needed. It usually takes a while for a new store to become established, and you are going to need a lot of volume to utilize the equipment capacity you have been quoted. Keep in mind that distributers are in business to make as much money as they can, and will paint you a pretty picture to get what they want. I don't know anything about your location, but opening a new store will not automatically create new customers. You'll be pulling away customers from your competition. How are their stores doing? After the sale it is you that will have to live with the debt.

[PeterH]

Holy cow!!! When I have priced equipment, I have always gotten just above $100 per capacity pound. A 25# washer for less than $3K, a 50# washer for about $5,000, stacks below $4k, and 50# dryers below $2K. I think shopping around might be a good idea...

[Duane]

All the prices quoted seem to be between 10-15% high. Of course if the prices include tax, freight and installation then the prices are not too bad.


I have an all Maytag store with 30 HE Neptunes, 4 35#, 1 50# and 12 dryers (24 pockets). The ratio for washers to dryers is a little off for most stores, but with the less dry times due to the HE high extraction, 30 minute washes and 20 minute dry times I don't have a problem.

I have been open nearly 8 months now and with my projections I should be around 15-16% utilities to gross income. I was at 12-13% before the high gas prices hit during the winter. Once established I'll probably raise the prices on my washers a little, this should lower the utitlites to gross ratio also.

My store is 3250 square feet, but I did not pack it full of equipment. When doing my survey I found that customers really wanted more space to move around and places to sit. I have over 10' between the rows of washers. I also have 4 large tables and benches and 3 half size table and benches. The students love the ability to do their laundry and study at the same time. I have the large washers in the back and the HE machines up front and when running at full capacity it is extremely quiet.

www.LMARIES.com (http://www.LMARIES.com) for video of store.

Duane.

[Soma]

Thanks for the replies, however it seems as though I have been played by the leasing agent. They had somebody in their pocket and used me for leverage to get them to move on this property. I found out yesterday when my realtor called to check on the status of our lease proposal, and was told that unknowingly the property had been leased by the owner, a criminal in my mind, to a dexter distr. backed couple.

I thought the equiptment was a little high, but I didn't try to get a better price until I had signed the lease.

I think I have another location, excellent demo's, but more competition.

I'm open to any equiptment suggestions at this point.

thanks

soma