Need Rough Estimates for Gas, Water & Sewer Please (per month & annual)

[geophluff]

Hi Folks. I realize milage may very due to turns, equip. mix and geography. Just wondering if anyone could provide general commentary on my "rough" utilities estimates for a proposed (proforma) laundry. Approx 1,600 sqf. 26 Topload Washers (10-20lb, 10-30lb, 6-60lb) and 16 Stack Dryers (10-30lb & 6-40lb)

Do these Util. estimates jive?

Gas - $1,800 per month or $21,600 annually
Electric - $800 per month or $9,600 annually
Water & Sewer - $2,200 per month or $26,400 annually

This is for a future, planned laundry. Not buying existing so can't get that historical view. Thanks!

[Adamski]

... Approx 1,600 sqf. 26 XXXXX Washers (10-20lb, 10-30lb, 6-60lb) and 16 Stack Dryers (10-30lb & 6-40lb) Do these Util. estimates jive?

Gas - $1,800 per month or $21,600 annually
Electric - $800 per month or $9,600 annually
Water & Sewer - $2,200 per month or $26,400 annually

This is for a future, planned laundry. Not buying existing so can't get that historical view. Thanks!

Geophluff,

Without knowing what part of the country you're in, it would be hard to say if those estimates would fit an existing laundromat ... let alone a non-existing one.

Things like heating, lighting and cooling costs, utility rates and turns per day all play a large role in your utility bills. You could write down any numbers you want and I would be hard-pressed to say they are correct or they can't be right. Too little information.

[BMWHD3060]

Hi Folks. I realize milage may very due to turns, equip. mix and geography. Just wondering if anyone could provide general commentary on my "rough" utilities estimates for a proposed (proforma) laundry. Approx 1,600 sqf. 26 Topload Washers (10-20lb, 10-30lb, 6-60lb) and 16 Stack Dryers (10-30lb & 6-40lb)

Do these Util. estimates jive?

Gas - $1,800 per month or $21,600 annually
Electric - $800 per month or $9,600 annually
Water & Sewer - $2,200 per month or $26,400 annually

This is for a future, planned laundry. Not buying existing so can't get that historical view. Thanks!



With the info you provided the estimate is dead on.

[bodman]

geo decide what your gross will be and figure 25% + or - 5% some on this board say they are at 15% of gross I believe that is the exception not the rule. I live in fl. and all 4 of my mats are in the 25% range and so are my compitetors around me, some guys out west have low natural gas expenses plus no outside humidity. north have high heating bills. we spend a lot on ac.

[Xiong]

geo decide what your gross will be and figure 25% + or - 5% some on this board say they are at 15% of gross I believe that is the exception not the rule. I live in fl. and all 4 of my mats are in the 25% range and so are my compitetors around me, some guys out west have low natural gas expenses plus no outside humidity. north have high heating bills. we spend a lot on ac.

does the reverse also works too?
say a seller claimed utilities (water, electricity, gas) total to $10,000 for last year, then you (buyer) can use the average of say 20% number to see if the gross revenues from washers/dryers would be close? in this case, would be $10,000 divided 0.20 and should be $50,000 revenues from the washers and dryers?

[James2011]

does the reverse also works too?
say a seller claimed utilities (water, electricity, gas) total to $10,000 for last year, then you (buyer) can use the average of say 20% number to see if the gross revenues from washers/dryers would be close? in this case, would be $10,000 divided 0.20 and should be $50,000 revenues from the washers and dryers?

xiong, do you have mat?

[bodman]

sure why not I would go with the 25% figure , however if they have a hugh wdf side the income would be a larger amount. darn there is always a however.

[epic02]

xiong, do you have mat?

Peter, I dont think he has one. We need more people like him in Los Angeles that due there due diligence before dumping money into a new mat in an over saturated market, where they will loose the A$$ and make the situation worse for everyone else. When he does own a mat IM sure he's more inclined to make better business decisions then others out there that just jump right in head first without testing the waters. Some of these owner have no clue, They buy a mat have a promotion lower the prices temporarily. Then business is not what the expected and sell. Then the next guy comes in buys the same mat does the same thing then sells and so on and so on. When will they learn?

[Xiong]

xiong, do you have mat?

I don't have one (or more) yet :D

I'm learning as much as I can before i load a few hundred grands into one. i think mat is a tough industry, especially if you get it wrong...you cannot simply detach your machines and go to the next location you think is right.

thanks to many on this forum, i'm learning a great deal :)

so is my formula acceptable as a rough estimate?
this kiss formula don't take into account that water is use in the toilet, pre-wash clothes before put in the washer, electricity use on your lights, computers, gas for maybe your heater, etc....as treat them as "tiny usages" compare to what the washers and dryers use.

less time i scann through that IRS document/guide on auditing mats, didn't up hold to the court as someone forgot to include those tiny usages? :D :D

how would you assess?

[Xiong]

sure why not I would go with the 25% figure , however if they have a hugh wdf side the income would be a larger amount. darn there is always a however.

hmm.....how would they wash/dry?

is there a mathematical way to figure?

[Xiong]

Peter, I dont think he has one. We need more people like him in Los Angeles that due there due diligence before dumping money into a new mat in an over saturated market, where they will loose the A$$ and make the situation worse for everyone else. When he does own a mat IM sure he's more inclined to make better business decisions then others out there that just jump right in head first without testing the waters. Some of these owner have no clue, They buy a mat have a promotion lower the prices temporarily. Then business is not what the expected and sell. Then the next guy comes in buys the same mat does the same thing then sells and so on and so on. When will they learn?

it's less painful to learn from others' mistakes than to personally experience the pain :)

don't they said, when doing your business plan...at least increase your expenses by two and reduce your revenues by half, if you can still see profit then might be okay?

also if the return is less than what you can get at the bank, then why bother doing all the works?

got an advice long ago from a very successful person, that if you're just buying someone else's business and expecting to do what seller has done....then you're really not a business minded person. you ought to buy a business that you believe you could make it better than the previous owner, and if you don't believe that you could achieve such task, then you may be doom to be less than the previous owner.

until next time.....thanks for the experience :)