Clean clothes in Hawaii

[apo]

Aloha,

I want to start a laundry, I've located areas in the city where a laundry mat could be viable. What costs are associated with leasing the machines or should I lease?

[SecretarytoBraveDave]

How did you determine a laundromat will be viable?

[apo]

Thanks for your response. There are currently 3 self service laundries in the Downtown Honolulu area which is largley comprised of condo's and apt's. Also, this area includes the University of Hawaii.

[SecretarytoBraveDave]

You didn't answer the question, what makes you think the market would be profitable by adding yet another mat to the area? How did you determing the area will be a good location, one that will gain a profitable peice of this pie?

[apo]

There is clearly a need in this most populous area, The 3 mats have been in operation for over 20 years and remains very crowded at their current locations. Opening a mat in the area would give customers another choice. Also, I would like to add convienences to the store such as T.V., sundry store etc. There are no mats currently offering added services.

What should I be investigating. I do plan on conducting a feasibility study.

[Laundry_Mike]

By crowded, do you mean busy, or are people waiting in line for equipment to become available. It sounds like the currently operating stores are well established. Are they doing an adequate job? Do they have any weaknesses? Try to obtain thier utility records, to formulate an idea of how much business they are doing. I assume that rent and utilities would be high in Hawaii. Customers are generally loyal to established businesses, unless the established business gives them a reason to switch. Adding a TV isn't going to do it.

[SecretarytoBraveDave]

Ditto, ditto ditto......

You should put some numbers into the mix versus the "I just know it" formula. Find out the amount of revenue spent in competitor stores and what it is you will capitalize on.

[petefritz]

you can buy so you can take a big write off the first year. Sounds like a nice place for a mat!


Also, if you lease, you can write off yearly payments. Really, the choice is yours to take advantage of tax situations of your own. I think it costs a little more to lease than buy, kind of like it costs more to for a TV at Rent to Own store than at Walmart.

[alexx5000]

I was in Honolulu last year. Most of the laundries appeared to be in and owned by the major hotels. They were usually in the hotels on the first floor and anyone would come in off the street and use them. The main thing I noticed was the very low vend prices, $.75 - $1.00 for a wash. You had to get out of downtown to find any bigger size laundry and the vend prices were still on the low end.

I would do lots of research, I'll bet there are high impact fees there.