Death of A Laundromat Article

[Adamski]

Guys,

I wrote an article titled, Death of A Laundromat which is a timeline based depiction of the short life and death of a real, new laundromat. The article was intended for publication in Planet Laundry, however, you won't find it there. If you want to read this once-in-a-lifetime, fact-filled article; email me at: laundromatman@comcast.net and I'll email a copy to you.

I regret that I was unable to get it published. I don't know exactly why they refuse to publish it ... but I can guess.

[Adamski]

Guys,

To those who requested a copy of the article this morning ... check you email inbox. It should be there. If it isn't, please email me again. Thanks.

[Howard]

Very interesting story - is it all true of did you take some editorial liberties. Are we paying for the guy to live on government assistance now?

Why not take the story to the Wall Street Journal or perhaps Fox News? Maybe we can see you being interviewed on TV.

I think the CLA is making a big mistake not to publish this.

[Adamski]

Originally Posted by Howard

Very interesting story - is it all true of did you take some editorial liberties. Are we paying for the guy to live on government assistance now?

Howard,

The only things made up were minor details such as the minor flooding on opening day. The timeline on the major events is very factual and accurate.

A post script to the story is - The owners of the closed up laundromat actually got a job working at a competitor's laundromat for a while. No, not at my laundromat.

[jh]

Well...We actually know exactly why this article has not been published in Planet Laundry magazine, especially after reading it, don't we? I think a story of a laundromat owner who has experienced all these same problems but has survived and succeeded would be readily accepted. Just like that I wouldn't want to inform my customers of those who have experienced problems in my store and wouldn't come back again. Instead, I would be happy to tell them the stories of those who have experienced the same problems and have been professionally helped to their satisfaction.

The article has covered some of the most important and common issues that can cause the failure of a new laundromat. I, as one of the newbies here, can relate to most of them. Typically most (including myself) were not fully aware of what to expect as we opened the door for the first time to welcome customers, even though, in the veterans' eyes, these can be the most basic issues. Usually a failed laundromat is to be sold to another owner. It takes several reasons for one to be fully shut down. If the demand was not low, his brother, the contractor, the bank, and the equipment company were not after him for the payments, or the competitor didn't take the action to end his hope that things would get better, his store would have been one of those that keep changing hands and dropping vend prices.

Throughout the story, one of the most important point being made was that there was no demand for a new laundromat. However, this does not scare newbies from building another. If the local population can only support the existing laundromats and at least one will have to fail when a new laundromat arrives, why does it have to be the new laundromat? The answer, I think, is how deep the new owner's pocket is to carry the store over the tough times. Many expect a harvest season as the door opens. No, the war just begins, my friends...Read the article, the time or money needed to carry a new store can be a huge number.

[Howard]

The reason it is most likely to be the new one that fails is cash flow. The new one does not have the customer base at first, so it probably takes a while to develop a stream of income. During that time period they have huge notes to pay off for the construction and the equipment that the existing stores likely don't have. Thus, they have more money going out each month and less money coming in - that is a prescription for pain. If they don't have a significant capital account to draw on, well you know what happens.

I think the CLA is doing a big dis-service in not publishing this. They constantly publish articles about the newbie building the big new store and make others think how easy this is. They never go back a year or two later and re-profile those many of which are on a second or third owner or have failed. This story would present a balance, and would actually help the industry. It does no one in the industry any long-term good to have stores fail.

[rbh]

Agreed, they should publish this as it may provide some balance to a newbie looking to build new with no experience. Perhaps, just perhaps, it will scare off 1 or 2 and save them the heartaches.

The CLA should at least think about varying the profiles they do to cover more of the spectrum. I bought a run down mat that despite that was doing decent volume, for the right price and have embarked on a multi year renovation using cash flow to do so. Volume is up 40 to 50% and I couldn't be happier. But its not an exciting a story as the new shiny store now is it? No, but I bet it would provide more useful info to a laundromat owner to be. A few of those mixed in with the new shiny joints would provide a more balanced approach.

[MrMachine]

Originally Posted by Howard

The reason it is most likely to be the new one that fails is cash flow. The new one does not have the customer base at first, so it probably takes a while to develop a stream of income. During that time period they have huge notes to pay off for the construction and the equipment that the existing stores likely don't have. Thus, they have more money going out each month and less money coming in - that is a prescription for pain. If they don't have a significant capital account to draw on, well you know what happens.

I think the CLA is doing a big dis-service in not publishing this. They constantly publish articles about the newbie building the big new store and make others think how easy this is. They never go back a year or two later and re-profile those many of which are on a second or third owner or have failed. This story would present a balance, and would actually help the industry. It does no one in the industry any long-term good to have stores fail.

I just started to read this thread today.
So right Howard! They will not go back and follow up a newbie's Mat. I haven't even seen them go back to a successful newbie, let alone an unsuccessful one (which are the vast majority).
Too bad....I would love to see the same Mat 2 or 3 years later after some decent customer abuse, lol.
A new Mat is like a new car that you drive everyday into Manhattan. 3 years later...a LOT of dents, dings, anonymous key scratches, etc....lol.

[Adamski]

Originally Posted by MrMachine

... A new Mat is like a new car that you drive everyday into Manhattan. 3 years later...a LOT of dents, dings, anonymous key scratches, etc....lol.

Paul,

You hit the nail on the head with that metaphor.

New laundromats do become older laundromats before someone renews them again. New laundromat owners become owners of older laundromats. Nothing stays NEW forever. The best we can hope for is the opportunity to renew things gradually over time. It's the life cycle of a laundromat and it's unavoidable.

[Adamski]

Originally Posted by jh

... one of the most important point being made was that there was no demand for a new laundromat. However, this does not scare newbies from building another. If the local population can only support the existing laundromats and at least one will have to fail when a new laundromat arrives, why does it have to be the new laundromat? The answer, I think, is how deep the new owner's pocket is to carry the store over the tough times. Many expect a harvest season as the door opens. No, the war just begins, my friends...Read the article, the time or money needed to carry a new store can be a huge number.

John,

You have stated the lesson learned very clearly. Even when a new laundromat opens with a full year's worth of cash in reserve to help make up the shortfall in Sales (as in this case); the laundromat can still fail ... especially if the location does not need and cannot support an additional laundromat. Therefore, an "investor" who feels he simply MUST build a NEW laundromat must choose a market that actually is currently under-served. Of course, most newbies cannot discern between and over-served market and an under-served market so they rely on distributor guidance. In the case of the laundromat referenced in the article, it appears that any market guidance that may have been offered was either ignored by the investor (if he said don't build there) or misleading to the investor (if he said build there).