New Coin Laundry

[neal]

We are about ready to sign the lease on a new laundry in a shopping center. We have the option to lease 3300 Sf. or the landlord will divide to 2300Sf. We think it will be a good store with lots of drop off and dry cleaning drop off. We think we will need the extra 1000Sf. and if we dont take it now we will never be able to get it later.

The smaller size will have 36 frontloads and 38 stack dryers and a little less room. The larger size will have 46 frontloads and 46 stack dryers with lots more room and a better drop off area. What i was wondering was the 18 extra machines are worth the extra cost. The area is fast growing and only 1 other Mat in the area. Landloard also willing to cut a deal for the larger space. Thanks for any comments.

[SecretarytoBraveDave]

First, can the market support this new mat, large or small? If there is demand in the market you have to figure how much can you capture and that is what you need to consider with how many machines and size of space this area will need.

From what I have seen, customers do not like to be in mats that have little moving space, not enough room between washers. You will want a large quantity of customers so you need to be sure that if you go with the smaller sized space that a few people can comfortable pass each other with a basket of clothing in between the aisles.

Call the public utilities office with the name and location of each competitor and ask for their water usage, this will help you with identifying aprrox. how big your market is.

[neal]

I already called to get the other mats water and sewer bills.
It looks like there are doing about 18,000 a month is sales. Lots of fluff and fold too. I have done wash there a few times and there is few front load machines with many broken for weeks at a time. lots of backups on dryers and washers too. The area will support my new mat but just not sure about the size. Lots of money to build the smaller one not to much more to build it larger. thanks for any comments. Neal

[azkid]

Since we don't know where you live how can we say what your market will bear? We also don't know what kind of "deals" you are being cut. I wouldn't count on having gang-busters drop off traffic if you're opening a new store however.

The other store doing $18k per month, is that correct? That's pretty good.

[neal]

I was not asking for comments on my location because none of you have seen it and dont know my area. What I wanted to know was is anybody had a location and built a mega store instead of a smaller size store and how it worked out for them.

[SecretarytoBraveDave]

Sorry Neal,

But since you have not conveyed what your market is like in the thread it is impossible to advise the direction of your question. You cannot receive an answer without an accurate assessment of the area of which you are considering.

A mat is expensive and anyone who contemplates one should be well educated in the market of which he chooses to enter. How big is your market? If big build big, if small go small......you tell us.

[petefritz]

build the biggest you can afford. If it is a good market you will be rich. If you are wrong, it is only money.

[neal]

I agree! Thanks for the post. We are going with the larger one