Dryers

[Nealian]

Hi guys

I have another question. It was recently expressed to me that I should be having 30lb dryers in my mat at the least. My distributor had advised me on having the single load stack dryers which I questioned but was told these make sense because of the new H.E. washers. I have spoken with a few owners already that have told me this makes no sense and that I need at least 30lb dryers. The cost of them are higher which made my net profit dwindle so perhaps I calculated incorrectly with the smaller dryers or I am missing something witth the larger dryers.

Icalcualted noth at 40% of washer income and I come up witht almost the same revenue, so did I make a large mistake in calculating the revenue from the smaller dryers? A large mistake never the less one that I can fix because I have not purchased or leased them yet. I find it weird that the distibutor would suggest the smaller one over the larger one whcih cost more. For info I would have 34 front load 18lb washers 2 50# and aprox 11 (22) 30# should it be fisable.

Any suggestions or help would be greatly appreciated.

Thank you,
Nealian

[SecretarytoBraveDave]

Are you saying your distributor advised you to purchase smaller than a 30lb stack dryer??? If so, get a new distributor, this one sounds like a complete idiot!

Ok, now why 34 18lbs???? 35-40 lb machines are used much more than an 18lb. You do not have a very good mix, nor are you being represented well. I suggest you better find another distributor and start doing some serious research and do your homework. You do not want to end up sorry at the end of this deal!!!

[Nealian]

See this is my problem, I have been researching for 6 months now and my idea for the store is nothing as represented above it is how the distributor thinks it would be good for the area. My view is 30lb double stack dryers, not the single load double stack dryers, 30 neptunes 4 top loaders, 2 50# and 1 80# wahser and a couple of 35 lb dryers. At least to starat, the space will have room for more washers and dryers should the need be there.

I think the distibutor may be stuck in the past as 100% of the mats in the area are built like this with the single load dryers NOT the 30lb stack dryers.

Tell me than how do the economics work witht he larger dryers as the cost more, but produce almost the same amount of revenue?

[SecretarytoBraveDave]

Lets go back a few steps. What the %#%# are you talking about? You are in control with the exception of your market, not the distributor. What is your market and why are you still negotiating with a distributor you have doubts in?

The economics in the dryers are that the dryers as well as your total package will be what makes loyal customers. IF you provide a substandard service or a service your market has no use for...... your bottom line will be the same no matter what you invested initially. You'd better know what you are getting into and whos advice you adhere to.

[Nealian]

I am still speaking with the distributor due to the machines because of their performace, and cost saving not only to me but my customers. I am in discusions with another distributor for another company, and this is what brought up the whole doubt and questions in the old distributor (lets call them "M") I have been dealing with.

The whole point of opening this business was to change the way the laundromats where viewed in this city and make them a customer friendly enviroment. With the design group I hired the atmosphere and layout will be unlike anyother in the city, so this brings me back to the machines and the correct mix. No matter what "distibutor" I choose the machines are what I will be dealing with once purchased, so it comes down to getting the right machines..no? Or are you suggesting I go with a different company that is advising me a little better but overall thier machines do not perform as well, or are not as recognized by the customer. Now keep in mind although I have been researcching for a while I am still leaning and this is why I ask. So maybe it sounds dumb but better to sound dumb now than after a $300,000 investment. I stil may think that the M distributor is in the older age of Laundromats, and that is why he keeps suggesting to me what is already in town (no vision).

So any advice is great, just like you have been giving me. The market consists of 8,899 low income households and 8,850 apartment housholds within 1 mile and an average of 2.3 per household, with two other Laundromats in the area which are old as in old machines and both interiors are carpeted dark and dingey, and run dow but still very busy.

[SecretarytoBraveDave]

Ok, lets spell it out a little better. This conversation is mimicking the conversations I hold with my 14 year old, it resembles a circle without getting any answers..

If you are considering a new mat, what are you contemplating? What is your idea of a good mix and why will your mat be one that captures market share over the current competition? If you are investing 300k what steps have you taken to educate yourself into the industry? What do you see your store providing the current clientelle?

As far as the equipment you seek to purchace, everyone has their first choices. Service and knowledgeable sales people weed into the equipment reputation. You are smart to ask questions now, before a committment. Keep firing them out, and also take advantage of other websites. wwwcoinwashcom members may also help you.

Kitty

[Nealian]

Hi SecretarytoBraveDave,

For the past 5 months I have spent time in the 33 laundromats in the city doing my own laundry there to see what they have to offer what they charge and what the clients do while waiting for their laundry to be done. I have read approx 7 books including the CLA todays coin laundry, how to start a coin-op laundry by entrepreneur magazine, the road to finacial success in coin-op laundry and have spoken with about 50 current mat owners. across the country I have also researched the area 1. by demographic report 2. by interviewing apartment dwellers in the area about how their in house facilities are and if they would visit a laundromat in the area that is closer to their apartment. I also asked clients of laundromats out of my area but in the same city about what they like and dislike about the current laundromat they are visiting and what they would like to see or have, to help with my business. I also watched about 5 of the cla's videos on how to operate, find, target, and profit from a laundromat. I have travelled to a few laundromats that are out of my city and viewed them because they are different than the current laundromats in my city to get an idea of what to offer my clients and how to operate fluff & fold. I also gathered water usage from the laundromats that are in my area to see how busy they are. I have visited about 15-30 apartments in my area posing as a possible renter to see what the apartmetns have to offer in terms of facilities and where they are located ie. basment, and viewed how many they have per apartment and what they charge, since by the area they will be my major competition.

I was at first unsure of a good mix for a laundromat, depending on the distributor for advice untill I starting talking with owners on this site and coinwash.com, which I also have the same question and have recieved alot of feed back on (under Nylon "wascomat or Maytag") The mix is a tough question but from what I have read I believe it should have, well first my space would be 2,000sq/ft. I would say 28 front loading 18lb, 4 top loaders for the generation that is acustomed to them, two 50lb wahsers and 11 30lb stack dryers to begin with, althought I would prefer to have no top loaders, and replace them with perhaps a 35lb washer. I believe that the mix with the 30lb dryers should be around 25-27 for total poundage of washers divided by dryers, at most 30.

My Mat will be one that captures the market by firstly offering customer service that is superior to any in the city, we provide reliable services, we will make customers feel good about walking into the laundromat by providing a friendly atsomphere, along with quality machines. The mats in the area are located about 2miles from me and are equiped with 14 year old equipment, are carpeted with carpet from 1972 and just as dirty. Thei nterior makes you want to walk right back out when you walk in never mind the machines and definatly does not make you feel good about doing your laundry there. We will have a clean bright mat 24 hrs a day that will change the view of laundromats in the city . Customers will feel good about walking in because it will be clean, bright, friendly service, reliable and have compititive pricing. With this and our size we will capture the market share and ward off any comeptition with in a 2 mile radius.

[SecretarytoBraveDave]

Sounds like you are on the right track, but why do you want so many 18's? Why so many of the same size? Why are you not considering 40's? or even 80's?

14 year old mats are not really that old, decor may be a reason one changes mat, atmosphere does have some weight. However location and need for additional serice is a big factor. Your service may be overpowering, however, if your location lacks you will never be able to serve. How do you rate with location and equipment (type and capacity) compared to your comp? Size does not always matter, location and need will outweigh new and improved.

[Nealian]

The location I have, well I lucked out. It is in a strip mall with the largest drug store chain in the city as the anchor, the most popular meat shop in town and a large bank is in the strip mall along with a goverment agency for unemployed people looking to get work and some other smaller stores and shops. It has frontage to a major street in the area and has an intersection for all traffic coming from any direction to get into the mall. The parking is by far more than I will ever need, and the great thing is that on sundays which should be the bussiest day, the only thing open is the large drugstore and the subway, so there are about 120 stalls for people to park in, and you can get your prescriptions or do a little shopping while you wait, or go get a sub or wendy's. Across the street is the largerst grocery store 35,000 sq/ft within 5 miles, and it also has some other smaller shops, I could not get into that strip mall as it was already full. The lease I hagled down to have the cheapest rent in the area by $5 a sq ft per year. The competitors are located all on side streets located in strip malls about 2 miles away which are almost on the outskirts of town which has little traffic, and the stip malls are are 60% vacant.

I have not considered 40lbs because of the quantity of 18's and I am considering 80's but first I want to see how busy it will be with the mix I am thinking of, but leaving room to add more machines if neccessary, and having the plumbing and electrical installed so it will be ready should the need be there.

What I meant by the competitors being 14 years old was their equipment, they are very old maytags from the late 70's to early 80's (They are still those gold ones and some brown ones) is what the distibutor told me, and both owners are older in age and have no desire to change the equipment or the appearence, but should someone buy the location that is closest to me and re vamp it, I want to be in the area for soemtime, and have built a loyalty with the equipment and the service, but we are located right in the middle of all the aparmtent dwellings and low to middle income households.

I believe the need is there with the surveys I have done, but I will continue to do more I would like to have talked with at least 100 people in the area and have them fill out the forms I have developed, or should I say the questionaires.

Everyone that I have spoken with tell me it is a great idea and will be great for the area, but those people have no vested interest, it is not their money nor reputation. So this is why I talk the potential customers in the area.

Should I be considering a different mix?

[SecretarytoBraveDave]

34 18's is WAAAAAAYYYYYYYYYY too many.

You need more 40's, 55's and possibly 80's. 18's are just slightly bigger than a top and annoying for families with alot of clothes. You need a better mix, in my opinion.
Kitty

[PeterH]

STBD is right: way too many 18#, and you don't have enough dryers. Try 16 18#, 10 30# and 4 50# washers, plus 10 stack dryers and 5 50# dryers. Dryer pockets should be at a 1:1 or a 5:4 ratio with your washers. People will patiently wait for a washer, but will become impatient waiting for dryers if you don't have enough.

You only have 2000 square feet: be careful how much equipment you are jamming into the space. Superior customer service means having wide aisles for people to move around and plenty of folding space., plus storage space for your drop-off business.