Location: Do you like these demographics?

[Freddie]

If I set up a coin laundry in my city (This is not in the US), then as far as I can tell, I will be the first one to do so. I have no laundromat experience. If you were given a set of demographics like the following in the US would you set up a coin laundry?

1. Very high density residential population (I'm talking several 20 story high residential towers within walking distance of the prospective location.
2. Everybody rents, and generally change apartments/ move out of the area every 2-3 years.
3. Apartments are mainly 2br type, around 800 square feet in size (i.e. small)
4. Most people have middle to high incomes and few kids. Often they are not family units but rather simply house mates.
5. Mainly young professional types and work long hours.
6. Everybody already has a washing machine and a dryer already in their apartments, but the washing machine is typically a small 4kg/5kg variety.
7. The apartment complexes do not have common laundry facilities
8. People are not used to the idea of using a coin laundry.
9.There are no coin laundries in the area.
10.There are wash and fold services around. However, in my view they are expensive, and they take 4 days to wash and return clothes.
11.People typically do not have cars but instead rely on public transport/taxis so my guess I would be relying purely on the high density residential towers in the immediate vincinity for business.

Would this make a good location for a coin laundry?
How big should I make my first laundry given this is a completely untested market?
Any thoughts much appreciated.

[Burley]

Some quick questions: What would be your selling point if they already have washers/dryers? If you live in that area, how have you gotten by over the years without needing to use a laundromat? These people may do the same.....even after you build your location.....then again they may flock to your store.....that's the risk.

I think it is hard to speculate why this service is provided in some countries and not others. I have a friend from the middle east.....he told me there are no laundromats there. That doesn't mean it is not a good idea.

[Freddie]

Hi Burley,

Thanks so much for the reply.

</font><blockquote><font class="small">In reply to:</font><hr />
What would be your selling point if they already have washers/dryers?

[/ QUOTE ]

Well I figure that since everybody works hard they don't have much time for washing. Landlords provide the bare minimum to rent an apartment out which includes cheap furniture, a fridge and a small front loading washer/dryer combo. Moreover, people typically share the apartment with one or two others, so if you leave your washing to Sunday night and your house mate is doing theirs, then you are out of luck. This means that clothes are piling up and you then spend the rest of the week playing catch up with the washing, and typically find your self hurriedly ironing a shirt before going to work. The above is basically how I live and its irritating. I personally wish I could walk to the coin laundry down the road and get my week's washing done in one go.

The wash and fold service here is seriously expensive and very slow. One full load of clothes at the wash and fold costs about $20 and takes 4 days. I'm likely to be too busy to pick it up on the scheduled day, which means I have to go without my clothes for a full week.

One person's gripe is another's business opportunity. I figure with the extremely dense population combined with very targeted marketing I must be able to encourage people to come out and wash their clothes.

I'm not American, and I've never been to the States, so I'm probably missing something here. Why don't Americans have washing machines in their apartments? You are the world's richest country but you don't have a washing machine in every apartment? To me and my friends that I have discussed this with that is weird.

I'm thinking that there must be areas in the US which are similar to the demographics I posted above. That is why I'm focusing on that area. If so are they a good location for a mat?

I have a few other uncertainties as well. 10 year leases here are extremely uncommon. All the retail outlets I know only have 2 year leases. Only if it is a major chain/medium size store have I heard of 5 year leases.