Help

[Nealian]

Hi,

No one has responded to my first request, so I have another. What is a good demographic report. I have 44% renters, which consist of 3,000 households in .75 miles. Is this a good start? 99% of them make low to middle income, and I have another segment of 3,200 private households earning low to middle oncome. From the research I have done I believe this to be a good area, especially since there is only one mat in the area and it is a disgrace to mats around the world. What about utility expenses I have read that the average is now aprox 20%, and I will have mainly front loaders, and only 4 top loaders to please the older population, is this a good idea?

Any help?

[SecretarytoBraveDave]

You need a demo analysis report base on your performa and location.

Take a certain percentage of renters, hh incomes under 15K and some between 15-25k and also take a percentage of the total population. Average the numbers and consider the household average of people. In a 3.08 hh, I estimated a modest 12.00 market share. You have your work cut out for you and only you can do it. I am sure once you realize the numbers and the area you will easily provide your self the numbers you seek.

[Howard]

I would like to reply, but don't have your e-mail. Send it to me and I'll help you.

[Nealian]

I have read the article from Septembet 2002 about calculation on projected revenue or market share. From thos calculation I have a projected market of aprox $700,000 with in the .75 mile radius. With only one mat in the area which is 3 miles away the projected market revenue out there is big, but this means the competition can come in once they see, how well I am doing so I need to be on top of the game.

[petefritz]

Assuming the mat you mentioned is in bad shape and does little biz, lets say 50k a year, where do you suppose the other 650k a year biz you estimate goes?
Or would that estimate be high?

[Mark]

Nealian,

Sometimes there is no laundromat in an area because one is not needed! Everyone who needs to do laundry is doing it somewhere today - home, apt, laundromat, mom's house, etc. Where is this $700K of business being done today?

[Nealian]

This is my major concern. There are a lot of Laundromats around the city, but in this area there is like I said only one that would be close to me. The majority of the business beng done today in the area is in the apartments. I have visited about 15 apartments in the area possing as a possible renter to see what type of facilities they have. Each apartment has aprox 3 washers and 3 dryers fo about 150 units. The machines are newer, and they are usually in the basement. They actually charge about $2 a wash and .25 for 8 minutes of drying. I would need to pull clients away form using there in house facilities, which I believe I can do since you can do all you laundry in about 2 hrs as opposed to using 2 or 3 washers and dryers. Like I said I believe, am I dreaming?

[jglover]

If I were you, I would go to the public water company and ask for the water usage on the laundromat that would be your competition. Water usage is public information, and therefore, as long as you have the address, you would be able to obtain these records for the past two years. Water usage is one of the best ways to tell how busy a laundromat really is. I would also calculate your overhead before attempting to open a laundromat as well... would you be able to have enough turns per day in order to make a profit? Also, something that we didn't think about... we put in all new machines at our laundromat, and have to have it attended most of the time, in order to help people understand the card system we use, as well as to help prevent theft and damage to our machines. Air conditioning also was a cost we had not considered, as it gets 10 times hotter inside with the dryers, during the summer. Little things add up quickly. You may want to think about going door to door in some of the apartment buildings, just randomly, and getting a feel for the type of person that lives there. Also, you can ask them, or even make up a survey, in order to see if the interest is there. Also remember to look at seasonal trends in the area. Where we are, summer time poses a problem, as many people leave. Also, there is a high turnover rate, making the need for continuous advertisement imperative. Good luck!