View Full Version : Hurtin Mats
Jefflange
11-28-2009, 10:32 AM
I'm starting to notice for the first time that many mats are offering specials, free soap or discount priceing. I hope some will go out of business. Only the strong will survive this economic downturn.
While I agree that mats in my market are hurting and some will go out of business, I would like to know your definition of strength. I've seen a couple of mats go under this year. One was only a year old. It seems like the survivors will be the hobby mat owners who really don't need much to survive. Think W-73's and 75 cent tops, owner living in the back.
bo,
I think 2 types of mats will be most vulnerable - new mats with big debt loads, and older, weaker mats that have been marginal for a long time.
The new mat owners make the calculation that they won't be able to cover their debt load going into the foreseeable future - that this recession might last for years. For the older mats, being marginal is OK if you're breaking even or maybe a little bit in the black, but it's HELL when you start losing money month after month...
Nearby to us, a small weak mat with many machines constantly OOO - and owned by the LL - just went out of business. A BIG SURPRISE to everyone in the neighborhood. I spoke to the owner - he grumbled about the laundromat business being a lousy industry to be in... Now he's trying to rent the store to a different type of business...
Ned
Jefflange
11-28-2009, 03:06 PM
New mats that are under capitalized and mats with high rents will have a hard time.
pressandclean
11-28-2009, 03:14 PM
I think now more than ever, it makes a lot of difference where your located. In the pricing polls, there is a lot of variation.
CanCanCase
11-28-2009, 05:17 PM
My area isn't yet saturated, so there is still room for a carefully planned "if you build it they will come." my new store doesn't have any competition and is being welcomed into the community.
Not that I wish ill on anyone, but if some of the others in thearea would fail I might have an easier time buying them up! It's a great time to be liquid and have no debt...
- Case
pressandclean
11-28-2009, 05:35 PM
Yea, its a great time to be that way. It may be a tough thing to stay that way!
I'm starting to notice for the first time that many mats are offering specials, free soap or discount priceing. I hope some will go out of business. Only the strong will survive this economic downturn.
I just raised my prices this past Monday. Neptunes this time. From $2.50-$2.75.
Tom
Super Clean
11-28-2009, 11:23 PM
I just raised my prices this past Monday. Neptunes this time. From $2.50-$2.75.
Tom
So did I, mind you I only have 6 of them. I still beleive the laundromat industry is more recession proof then most business'.