Larry's "Top 10 Things I Hate" List

[Adamski]

10. Our worn, limp currency. Why can't the government at least print some new currency so we at least look like a successful nation?

9. Employees who quit without giving fair notice disrupting the attending schedule and causing temporary chaos.

8. Kids who run and screem throughout the laundromat. Wouldn't you just love to give them an Expresso and a puppy as they're leaving to go home?

7. Customers who file a fraudulent Request for Refund. They think I cannot tell if they put a $20 bill into the changer when they claim they got nothing ... but I can.

6. Storms that cause power outages and disrupt my business. There's not much I can do about this but it's still unsettling.

5. Customers who over load top load washers. "You mean I can't wash my quilt in your washer? I don't want to break my home washer."

4. Customers who want me to pay for the red, waxy stains that are all over their childrens clothes. Umm ... try checking your toddler's pockets next time. Crayon is more easily removed before it melts in the dryer.

3. Employees who fail to open up on time. Yes, I understand that you were out late and you met this great guy at the bar and you ended up spending the night at his place and one thing led to another and ... YOU'RE FIRED!

2. Distributors who own laundromats that directly compete with the laundromat operators in their district. Anyone who retails equipment to laundromat operators should be prohibited from renting equipment to the general public.

1. Competitors with Charity vend pricing. They don't understand their true operating costs. They fail to comprehend and get compensated for common business risks. The more short-sighted they become; the smaller the corner becomes that they've painted themselves into.

[James2011]

10. Our worn, limp currency. Why can't the government at least print some new currency so we at least look like a successful nation?

9. Employees who quit without giving fair notice disrupting the attending schedule and causing temporary chaos.

8. Kids who run and screem throughout the laundromat. Wouldn't you just love to give them an Expresso and a puppy as they're leaving to go home?

7. Customers who file a fraudulent Request for Refund. They think I cannot tell if they put a $20 bill into the changer when they claim they got nothing ... but I can.

6. Storms that cause power outages and disrupt my business. There's not much I can do about this but it's still unsettling.

5. Customers who over load top load washers. "You mean I can't wash my quilt in your washer? I don't want to break my home washer."

4. Customers who want me to pay for the red, waxy stains that are all over their childrens clothes. Umm ... try checking your toddler's pockets next time. Crayon is more easily removed before it melts in the dryer.

3. Employees who fail to open up on time. Yes, I understand that you were out late and you met this great guy at the bar and you ended up spending the night at his place and one thing led to another and ... YOU'RE FIRED!

2. Distributors who own laundromats that directly compete with the laundromat operators in their district. Anyone who retails equipment to laundromat operators should be prohibited from renting equipment to the general public.

1. Competitors with Charity vend pricing. They don't understand their true operating costs. They fail to comprehend and get compensated for common business risks. The more short-sighted they become; the smaller the corner becomes that they've painted themselves into.

good English sentence;
The more short-sighted they become; the smaller the corner becomes that they've painted themselves into.

[Howard]

2. Distributors who own laundromats that directly compete with the laundromat operators in their district. Anyone who retails equipment to laundromat operators should be prohibited from renting equipment to the general public.

This one really bothered me at first, but after many years of thinking about it, I don't really see it as an issue. Sure it should be an ethical dilema for the distributor, but it really does not hurt anyone that much.

Think about it this way if you pay say $2300 for a double load washer how much do you think this distributor pays for it? Let's say for arguements sake that it is half, so they save $1,150 on the cost of that washer. If you conservatively say that wash will last 10 years then they save $115 a year on that equipment. In the scope of things that really is not that big a deal, even if you vend it at around $2 that is still only about 60 turns over the course of a year. Rent, utilities, payroll, etc... are really a much bigger operating cost and they don't have any advantages there.

[Duane]

I don't have any problems with distributors owning mats. They usually fix them up and resell them and hopefully the new owners will have higher vend prices.

I do have issues with distributors just building new mats and THEN looking for a buyer.

[Adamski]

...Think about it this way if you pay say $2300 for a double load washer how much do you think this distributor pays for it? Let's say for arguements sake that it is half, so they save $1,150 on the cost of that washer. If you conservatively say that wash will last 10 years then they save $115 a year on that equipment. In the scope of things that really is not that big a deal, even if you vend it at around $2 that is still only about 60 turns over the course of a year. Rent, utilities, payroll, etc... are really a much bigger operating cost and they don't have any advantages there.

Howard,

If Mr Distributor can save $115 annually on the cost of just one washer; multiply that by perhaps 50 machines and the annual saving adds up to $5,750. Next, figure Mr Distributor will save another 40% on his cost of repair parts. So, if a laundromat spends maybe $4,000 annually for that, his saving is $1,600. Add the two together and it comes to $7,350.

An operator who is not a distributor would have to gross an additional $29,400 to net the $7,350 that Mr Distributor is saving on his annual operating costs assuming a 25% ROI. That additional $29,400 in gross sales could be quite hard to come by so a non-distributor is definitely at an unfair advantage in this scenerio.

[Howard]

Why would there be any repair costs on this new equipment? The rest of your analysis is fine, but I still don't see it as a major issue. Its just the way the world works. You can decide not to buy from that distributor, but that might be a case of spiting your nose to hurt your face.

[Adamski]

Howard,

I was following your ten year ownership scenerio. The free parts warranty generally does not extend beyond three years for things that normally go bad. Obviously, for the first 3 years, neither Mr Distributor nor the non-dirstributor have to pay for parts - just shipping which is the same for both.

I don't feel that any laundromat owner should encourage Mr Distributor to directly compete by building laundromats for his own, long-term operation. Buying from a distributor who operates laundromats is encouraging such unfair competition.