Operation Hours

[JoshCox]

As I get closer and closer to owning my first laundromat I wonder if the old owners tactics really are working, especially since he has complained in a decline in business in the last year. (He did buy another mat about 4 miles away that he spends a lot of his time at.) One of the biggest things that I consider changing is his hours. Being a non attended laundromat I often think 24 hours is out of the picture? Maybe I am wrong? But the current hours are from 6 am to 10 pm. Should I change it to 5 am to 11 pm? 6 am to 12 pm? Not exactly sure and being new I do not know how to test or trial such a thing. What are others thoughts on this?

-Josh

[mjwalsh]

Originally Posted by JoshCox

As I get closer and closer to owning my first laundromat I wonder if the old owners tactics really are working, especially since he has complained in a decline in business in the last year. (He did buy another mat about 4 miles away that he spends a lot of his time at.) One of the biggest things that I consider changing is his hours. Being a non attended laundromat I often think 24 hours is out of the picture? Maybe I am wrong? But the current hours are from 6 am to 10 pm. Should I change it to 5 am to 11 pm? 6 am to 12 pm? Not exactly sure and being new I do not know how to test or trial such a thing. What are others thoughts on this?

-Josh

Josh,

Insurance is something that I have always been concerned about with unattended 24/7 laundromats that are not alarmed adequately. At some point ... since we can be lumped into a one size fits all "underwriting process" same rate category ... it is not always the best for those us who close down. The specific location is definitely a factor though if that would hold true.

mike

[CanCanCase]

Mike-

Where did you get the idea that the insurance underwriting for your place is in any way related to mine? We don't even have the same underwriters, so how can my rates be affected by if and when you shut your doors?

-Case

[mjwalsh]

Originally Posted by CanCanCase

Mike-

Where did you get the idea that the insurance underwriting for your place is in any way related to mine? We don't even have the same underwriters, so how can my rates be affected by if and when you shut your doors?

-Case

Case,

Hopefully, someone who is more of an insurance expert could clarify & chime in here ... so we understand the dynamic or if you will "the norm" better.

The comment is based on from visiting with independent agents & even with actual underwriting inspectors in the past. For better or worse, my impression is that they base their rates on statistical information. We were told we got a discount for an alarm system.

Some underwriters have a pretty wide geographical area that they cover so I suppose statistics coming from all over is pertinent ... I am not sure. It could be something for Josh to check into if there is a distinction made for his decision to go 24/7 or not.

mike

[dbrown2508]

I'm skeptical that insurance underwriters are differentiating between places that are 24/7 and those that aren't. I'm not even sure that there is much of a differentiation between laundromat vs many other retailers.

In my experience, most rates seem to be impacted by overall market competitiveness at one time or another. I've seen insurers quote crazy prices (even less than what history has shown as losses) - chasing premium dollars. Other years, you see huge increases with things not related to you, your industry or whatever.

Seen this in property, in vehicle insurance, in benefit programs - all from my day job.

In one case, I was asking how much they would give as a price break for us to raise the deductible on a 300 vehicle fleet - there were, in my opinion, too many fender benders that the division managers were putting through. Imagine my surprise when I heard that our total premium would increase if we increased the deductible from $1,000 per vehicle to $5,000. Explain that one?

[Duane]

Insurance companies DO differentiate between 24/7 stores and regular hours along with attended and unattended stores.

Along with:

Zip code
Annual gross receipts
Past claims
If you have an alarm system

and many other factors.

Check with Ruby at the CLA, she can shed some light on what insurance companies look at when underwriting a policy.

Duane.