Small town location

[Burley]

Hello all,
As you can see this is my first post. I am new to the biz. I would appreciate input from anyone who is willing. I am looking at starting a new laundry (unattended) in a small town. Population is 4,000 and it is 5 miles from a town of 100,000 and they are both growing. This small town currently has no laundry facility so I see an opportunity. The space I am looking at is roughly 1500 square feet. Rent will be $1300 /mo. I am going with top of the line equipment. The mix is 8-20 lb washers and 2-50 lb'ers. There will be 8-30 lb stack dryers and 2-80 lb dryers. I have some space for vending, folding, seating, etc. I would like thoughts on the demographics. There are a lot of apparements in this town and a lot of upscale income. Am I going to small? I don't want to over build since I am not loaded with cash and would not handle losses very long. How do I predict turns per day? I know.....the million dollar question!!

[actionmedia]

Hi!
I have about the same problem: Will be my mat too small for my market? Reading most of the posts here on the forum I got an one ideea reading one of Duane's posts: it doesn't matter if it is too small at the begining if you use card sistem for everything, even for the front door.
Why? Because that way you can control the number of incomings.
How? You give the cards to a certain number of peuples and invite them to your mat and see what happends after a week. Let's say you give away 500 cards and 100 returns in the next week, you will know that for each 5 cards you give 1 returns in the first week may be others will come in the next week and so but you can figure out in the first three month how it works and you got everythng under control. If you see the market ask for more I belive you can add new equipment in the future.
It is only a theory. Not tryed yet but intend to.
For the second question. If there are only 4000 residents, it is easy. go to www.marketingpower.com (http://www.marketingpower.com) register there (it's free) there you can find some tips how to do a survey. I think 200 responses are enogth to predict your TPD.
I hope my advices were usefull for you. Keep in mind I new too in this business but I know some marketing.

Teodor

[petefritz]

probably in time you will do OK. Who talked you into that equipment list??
In a small town you will need some top load machines, and do not need 2 80-# dryers!~

about 25 washers fit into 1500 SQ ft, so you got room to grow.

[Burley]

No one has talked me into that equipment mix. I missed one number in my list. I should have said 10-20 lb washers......not eight. Still not a large number but given the demographics I think it would be foolish to squeeze more in. And there really isn't room to grow. The only way a person would get 25 washers in the space is to reduce dryers and folding space. What size dryer would you match up with a 50 pound washer? Do you think the 50 is too large? I think that size is just right for someone with a large load or someone who wants to bring in comforters and sleeping bags.

Also, with no competition in this "small" town, I don't think I need top loaders at all. I can sell on the fact that the front loaders are more economical for both the customer and the owner. I have read many articles that direct me to do that. See The Journal--Coin laundry/drycleaning page 47. I think it is the right thing to do.

[petefritz]

If you are building an unattended store than you cant sell anything, you are not there. The greatest thing is, and maybe "The Journal" failed to mention is your customers could give a crap about how much money you save on water. They seek an econimcal priced machine to do thier wash. And many do not know the front load washer, but everyone ones how to use a homestyle top load. You put in some top loads, price them to make money, then you can charge even more for the Auroas you want, after all it is about a price per pound vend price, not about what it cost you for utilities, in the customers eyes. Just a thought.

[Burley]

Pete-----I agree with your comment "your customers could give a crap about how much money you save on water." That is very true. You mention the Aurora. Do you have any experience with this machine? I am planning to got to a mat and test them this week. Also, any experience with Cont. Girbau? Seems like good equipment but how is a rookie to know until you try.

[Laundry_Mike]

If it's a new store, why not put in some of the equipment, with the accomodations and ability to add more in the future if needed. 20# washers are nice, but so are 35#rs also. The 35# (triple load) washers are the most popular choice for large comforters. A 50# will hold 2 normal comforters. Personally, I would go with two 50# dryers instead of the 80's, and the rest 30#rs. Remember, a distributer will try to sell you as much equipment as they can. Don't let them talk you into something that you are not comfortable with. Good luck.

[Burley]

I was thinking the same thing before I read this post. I didn't know that a 35 #er would handle a large comforter. Then it would also do just fine for those customers who want to throw all of their laundry into one load. I am also rethinking the top loads. I might have space to squeeze a few of those in.

Thanks for the note!

[petefritz]

You mentioned 20# machines, i thought you were reffer to the Aurua. I have seent them, never used any.

1500 sq ft store, rural:

3 tops
6 neptunes/ softmount 20's
2 35#
1 50#
6 stack dryers

this will barely fill 1 wall. Find out what works, expand from there, as someone mention, good idea.