Potentially new store owner w/question?

[pheedog]

Hi, I'm new to this board, but have been surfing and reading all that I can. That said, it's still better to get some advice from the pro's on this board prior to commiting $ into buying an existing mat. Here are the details(things I don't mention mean that I don't have the info, but would welcome comments on what else I need from seller) if someone can advise me on the pros/cons of this particular mat. It's 7years old, great condition visually, 13yrs lease, auto door open/closer, with:
6 Speed Queen Giant Washers Front Load(vend $ $5.25)
16 " " Top load ($1.50)
12 " " Front load ($4.25)
10 " " Front " ($2.75)
32 " " Dryer Tubs (16 stack) (8 minutes .25 cents)
1 soap vendor seven columns
2 Rowe bill changers .50 cents
Wash Fold 10lbs minimum .89 cents lb
Here are the other info:
-price $487k(yes I know it's high, but in my area asking 6x's net is norm)
-gross 2003 $204k(but broker said they are skimming an estimated $24kplus/yr)
-Total expenses $152,532
-Net income $51,468(not including pocket $)
-Selling due to partnership problems
Monthly Average expenses:
-rent $4788(located in a mini mall near low income housing and new higher end apartments, Safeway, Blockbuster etc. PArking, CAM included)
-PGE $1350
-Water $2000
-Payroll $3200
-Payroll tax $333
-Insurance $261
-Personal property tax $239
-Business license $40
-Repairs $350
-Vending $150
Any opinions or comments would be welcome!
Thanks,
Phil

[SecretarytoBraveDave]

6X net? Sounds like a line, kinda like the skimming one that came next. Big expensive store doing at best doing 3tpd in high rent district, doesn't sound thrilling. Sounds like a big, big store? Big big stores, need alot of customers to use all those machines. Why isn't the new big store doing any better than that meager gross? Tons of expenses are not listed as neither is vending, vdeo and candy revenue.

[pheedog]

You lost me on 3tpd? Assuming he's not lying, do the #'s even add up or are realistic?
Phil

[SecretarytoBraveDave]

Phil,

You sound like you have some finances to get into the business, by considering a purchase of this size. You must know what you are doing if you are to invest this kind of money into something.

You must pass Laudromat 101, 102, 103 and 104 BEFORE jumping into Business Management. If you do not know the concept of tpd (turns per day) please take my advice and back up, take some time to research the industry and arm yourself with some more knowledge. The better prepared you are the better off you will be. But until you understand the basics of the industry and the business itself do not consider any purchases, especially of this size and dollar range.
Kitty

[azkid]

Of course I agree with Kitty again. I would first try to understand the top-line numbers - like what percentage of the gross is self-service (washer dryer income), what percentage is drop-off business, what percentage is vending, etc. Utilities should be about 20-25% of your washer dryer income. Dryer income should be about 40-50% of the washer income...you can back into a tpd figure from the vend prices, the number of machines and the stated gross. 3 tpd is not wonderful but it's survivable if other things work in your favor. The rent shouldn't be more than about 25% of gross.

There are of course many different things to consider. Coinwash.com has a number of threads on these topics too.