Financial Records

[theo90]

Hello All,

I am interested in buying a mat but I cant get any financials to verify the net. Also there is not water charges in this area so then what would her utility bills tell me. At this point then I am unsure whether to walk away or how to judge her asking price. Is it possible to figure out how many clients are need in a week to average a gross of $2000/week without having a drop off service.

Any advise would be great
Thanks
Theo

[SecretarytoBraveDave]

Depends, how many machines you have at what vend price, what is your market share and percentage of clientelle in numbers, This all depends on what you could gross, overhead will determing what you can net.

Not sure what you mean there is NO water costs?

Don't walk away until you analyze the deal. You have to know what to inquire about and how to decide the potential for your success.

[theo90]

The place has:
18 dryers at .25/10mins
5 40 lb washers at 3.00
2 25lbs at 2.50 (look good in the interior but outside looks beat up)
15 top loader at 1.50

No water charges on the sewer bill

Place did not look as if it would have a steady base so I am not sure how to base the potential because the owner is not supplying any financial.For this reason I am unsure how to determine the offering price. Any advise?? I am a beginner and I am not given so much to go on.

Thanks

[SecretarytoBraveDave]

Got a camera, take some pics and email me. Im kitty and my email address is accessible through coinwash.com
join and you can send me more info and I can try to help you.

What is the population in your area 1 mile 3 mile and 5 milew radius, what is the customer base and there economic status. You have to have many more questions asked before you even need to discuss the mats financials.

[theo90]

Low income I would say...mostly renter's but homeowners as well. In one direction there are the homes in the other direction it is business related. Within half a mile is another mat ...small and not good . About 2 miles down was another ..better ..more up to date and even that one I would not wash my clothes in, so this gives an idea the TLC this place needs. The owner owned this one and another that she sold. This one is has had for 3 years but her booking is not good and i assume she reported a lose which is why she says the financial are worth no info. Sure if I take it it will be ran better and watched over and reputation and cleaning will be changed and try and start a WDF business in it.

Theo

[SecretarytoBraveDave]

You probably could run it better and grow your market share, but it is essential to understand and analze the competitions share. If you calculate the size of the pie and the dollar amount currently spent in your market you can make a far more educated decsion.

What is the problem with accessing the water bill and the gallons used per month?

[azkid]

Look through previous posts on valuation (do a search). We've discussed this topic many times and you can get good ideas from past threads (can check out coinwash.com too).

As a minimum you should spend enough time in the place to be comfortable to estimate the turns-per-day per machine type. You can then multiply it out and come up with a reasonable income per month or week. You should also get the gas bill. If for some wacky reason you can't get the water useage, the gas usage can tell if you're out of line or not on the numbers.