Measuring Utilities

[antmjny]

There are several formulas out there used to measure production of a store......I'd like to hear yours? Granted, not all are 100%- mainly used to gauge a store, especially when looking to purchase, I have eyes on another location and doing the legwork steps.......FUN!!!!

[CanCanCase]

There are as many different "formulas used to measure the production of a store" as there are different stores. Since you asked, however, here's mine:

$goes-ins > $goes-outs

-Case

[Howard]

The equations never worked perfectly, which is part of the reason the IRS gave up on their formula driven audit program years ago. Today, they work much worse than ever. There are so many different machines with different cycle options and different utility consumption based on those cycles that it is hard to get nearly as close as it used to be. Add to that stores that do a large amount of wash and fold and your metrics just about go out the window. Thus, Cas's cash in versus cash out is not a bad method.

[antmjny]

Machines, especially old Gen 3 4 Wasco's suck a lot of water and energy. Newer machines use less, then you have the high G Force models that claim to utilize up to 40% less, a lot of ra ra if you ask me?? It's very difficult to get accurate info from dealer/manuf on consumption as well- more of a projection, so agreed, there isn't a concrete formula out there......money in/out can work!

[canon]

The higher G force doesn't save an additional 40%, it rings out additional water.

[bodman]

I own 5 mats and if I add my water,sewer, gas and electric then multiply that amount by 4 that gives me a very close insite to the gross revenue, even at the one mat I do wdf at. What you are trying to assertain is if the seller is being honest with you. If the utilities are extreemly expensive where you are looking a factor of 5 may be appropriate. If they use propane gas instead of natural that would make the gas price almost double .

[CanCanCase]

Also, pay attention to what's going on in the news and politics in the area where you're looking to buy a store. When we bought #3, the City had just finished building a new water treatment facility, and hadn't quite announced the rate hike they were putting into effect to pay for it.

Mr. Seller showed some great numbers with a $280 per month water/sewer bill regularly. I knew what was coming and negotiated the sale price down quite a bit. When we re-opened, my water bill for the first 3 weeks of operation was over $1200...

Verify the seller's numbers, but also do due diligence on the market conditions and such. Trust but verify, and buyer beware!

-Case

[MrMachine]

There are as many different "formulas used to measure the production of a store" as there are different stores. Since you asked, however, here's mine:

$goes-ins > $goes-outs

-Case

Lol...good one!!