Make sure to watch Part 2: ruclips.net/video/dBJPgEhEfU4/видео.html What would you do if you opened a business and were in Justin and Mike’s shoes? How would you deal with the situation? Leave a comment below!
Finally, someone who understands that better service can equal more business and happy customers, and that sometimes it's not about squeezing out every penny of profit!
@@frankmontez6853 well he did put down 200k (with his partner) and never really gave his revenue, also not sure if he included his salary into it. If he did then yea its a very good margin if he didnt than we dont know. Also have to consider how much of his loan he is pay off each year. If he is able to pay off his business loan within 10 years than yup 100% agree (given his profits included his salary or at least dividends).
For certain areas and people, I say….”SQUEEZE”🤑🤫. They will steal from you, rob you, and take advantage due to their poverty mentality. You gotta let the mice play. Then use the lessons to mentally shift & be just as streetwise or even more so than they are! 😅
Better service yes but look at the area in which they are running the business they aren’t in areas where people need the services the most like apartments complex and places that don’t have room for a washer and driver
I owned a small laundromat for 7 years. It was profitable. But due to space limitations I was not able to scale the business up to make it larger. I invested in new equipment on a regular basis, but a newer and much larger laundromat opened just blocks away. It still remained somewhat profitable, but the writing was on the wall. I sold it for a profit and the buyer operated it for the next ten years. It was time for me to move on to something else.
The standout here: this owner was smart about it. Rather than the "no more cash" rush of everyone else, he figured out a way to allow people to benefit AND still use cash if they want. That's how it should be done.
*The App service is a big edge. Enabling clients to see how busy is the laundromat and even knowing the status of each machine before you set out to the place itself is very awesome and convinient!*
I wish our laundromat had app. Cuts down on needing to get $10 to use on the change machine. It doesn’t take $20s. Also don’t have to worry about coins getting stuck and I lose all that money.
I’ve traveled the USA, Mexico and Canada for six years in an RV. I’ve literally been in hundreds of laundromats. None were even close to being as nice.
God, that's a fact. My local one is rented. The owner will not do maintenance and the renter is fed up and will be happy to gripe about his woes to customers. So disheartening. Poor customer service. I've complained about the lack of lights in the parking lot, told him I would not come in in the evening, frankly, he gets what he deserves.
I own 2 laundromats and I can tell you this one is 🔥 on the inside. It’s beautiful and well maintained. I need to update some of my machines this year because it’s a great business to have no matter how bad the economy gets.
We bought an existing laundry 7 years ago. We grew that business by 70%. Doubled the wash and fold service. Your prices must stay with what your local market will sustain. Friendly staff is very important!
This laundromat is in my home town. The other one was run down and closed down. There was a demand for one locally and this one filled the niche. I love the app, new well maintained facility and service
@@gustavosalvini1827 I'm low income, but I still have a roof over my head and a washing machine under that roof, so I can do it at home. It's cheaper to do it yourself, there must be more to it that just low income.
For anyone interested in this, if you live in a bigger city or even just a college town, try and look ok apt sites for places that don't include washer/dryers in the units or don't have washer dryer hookups. You can make a lot off college kids who don't want to deal with their dorms crappy laundry rooms
Worked with a guy that bought laundromats as a side business. He said most of his profit didn't come from laundry but the crane games he put in. He made enough off those to quit our job and let the laundromats run themselves.
I own 2 Launderettes in the UK. Location is everything, free parking and close to other shops so customers can go and run other errands. We also do commercial laundry and dry cleaning. Both shops are fully-manned as lots of customers need advice and we need to take laundry in. I work 1 day a week sometimes 2 and it is allowing me to grow my property portfolio. I can do lots of the repairs myself so that saves lots of money. Getting good staff is also key. Good video and Justin explained his business very eloquently.
The biggest deal breaker for me is cleanliness. I live in an apartment that has a dryer and top load washer now but when it comes to washing comforters I go to the laundromat. BUT, if the machines look and smell disgusting or have a ton of dog hair in and around it, I refuse to use it.
Love the detailed breakdown of overhead and startup costs. I was always curious about laundromats. I feel the location is what can make and break your business.
@@danielwhoI Market varies heavily from the Coast of Pacific Beach in San Diego, to say, somewhere in Wisconsin. However, like a restaurant, there is a ratio of income vs rent you want to stay at. Every industry has that metric.
Nice to see a laundromat owner that's maintaining his business to attract customers. Most of the independent laundromats near me have closed down as the apartment owners in the area have added laundry rooms even when the buildings didn't originally have them; that's an indication there must be money in it. I now live in my own home but occasionally use a laundromat to do large items, and they're getting harder and harder to find in my area.
I don’t know if that an indication that there’s money in laundromat businesses. I doubt the landlords are doing it for the laundry income. I’d think it’s an indication that having in-house laundry is becoming more valuable to renters such that they’d pay more rent to live in places that have it.
Used a laundromat in St.Louis that was owned by an airline pilot. The girl there ran a tight ship. It was clean, well lit and the machines were dealt with as soon as they broke. Washateria in St.Louis/Shenandoah Ave for anyone reading this.
This isn’t the norm. I used to own 4 Lmats for 6 years and none of them were this clean. Realistically it’s the LM in poorer areas that makes money. The cleaner ones in nice areas don’t because everyone has a washer/dryer. When looking to buy one, I check to see how many apartment complex is around in a 4 mile radius, if they do section 8 housing. If they have onsite laundry facilities. My LMs would get vandalized on occasions and tagged, nothing too damaging. In recent years, due to the increasing electric and water prices, it wasn’t worth it when compared to the hours put in. Avg about 20$ an hour with 12-14 hours of work a day, expenses factored in, if you have employees their pay, it’s not like these guys make out to be. These videos are so BS.
See you're the kind of person that really tells it like it is. I hope and appreciate comments from no nonsense people like you. Most people just say stuff with no knowledge and shouldn't be commenting.
No mention of cost of the real estate. Obviously, that's a huge variable dependent upon where you want it and what level of client you are hoping for. But that would seem to me to be the most critical piece of the investment decision here. How much are your $/ft for the lease, and what's your corresponding pricing strategy, and WHERE does THAT leave your "50-60% Margin"? LOL😂
The 'hidden' cost is the owners' time. They need to record every single hour they spend attending to machines, handling vendors, accounting, etc. If their net profit (should they have any) allows them achieve $20 or $25 per hour pay scale, then they can compare that against other opportunities they might find elsewhere...including a salaried job that comes with benefits and vacations (which this business opportunity fails to do). This kind of business is usually 7 days a week from 6a to 10 or 11p at night. Being anchored to an operation comes with a substantial intangible cost. It's rare that that ever gets justified economically. But it does get justified by owners via lots of storytelling.
@@jaybingham3711 This is not true. This specific laundromat isn't set up l For the owner to own a business. When buying a business you need to buy a bussiness not a job, you can get that for free. If you don't do it right then you can be like this guy who barely gets time off. There are much better ways and that is why it may or may not work for other people.
I don't know how laundermats do, but I remember being a kid going there with my dad and coming out with at least a few bucks for candy bars after scouring the underside of machines, looking under chairs, and other crevasses. I loved every trip to the laundermat. It was like free money for me as a kid.
My uncle is a dentist, and a little known secret is that dentists are notorious for leaving loose change where there are candy and soda machines for people to find.
With a laundromat, you could be looking at ways to diversify your service and see if you can gain some commercial customers. There are lots of businesses that could benefit from high volume washing if you lower the prices. I'm in hospitality (short term rentals) and I had to set up my own laundry company because all the laundromats were inflexible when it came to pricing. 2 years on and now we offer commercial washing to the hospitality sector. As it's high volume, all 6 23kg machines run constantly. If any of them break down, we just phone the rental company who fix for free. It's a great business if you can get your head round lower prices and higher volume. If you have machines sitting idle for most of the day, you should definitely look into this.
The laundromats where i go all are doing laundry for walk ins and have professional housekeepers who are doing their own customers laundry at the laundromat. And some also do commercial and dry cleaning(not always in house). This keeps the attendants plenty busy.
Why wouldn't your hospitality building have their own machines if they had such high volume of clothes needing to be cleaned? Or any business for that matter?
They say most business owners are assholes, but this guy had such positive genuine energy, you can just tell he’s one of the good people in this world. Never thought I’d have so much fun watching a video about a laundromat.
@@bossturbo I am now a year older since my last comment and you're right I take it back, each human lives a complex life and I shouldn't judge their personality by if they own a business or not.
I agree with all the praise about this video and the laundromat and owner! One other thing: the design of this space is so on point. It shows how much they care about the customers. Not those plastic chairs, but stylish leather-looking couches? The wood trim. Every detail thought out. Well done.
Decades ago I worked part time doing maintenance/ repair on coin machines for a local family. The "old man" and two sons both had going laundries along with "side" stuff. They made money but a LOT of work. Not 8-5!!! I would be working late, 7-9PM doing machine repairs and one of them would pop in to do up change in the til and whatever else. And people can REALLY screw you, putting crap in dryers that melts and makes a mess of the drums, same deal with washers. Some dumb woman washed a giant stuffed bear in one of the big Milners, the thing burst and clogged up the machine. Took me hours to get things "undone."
This was one topic I don't think he touched on, maintenance. I'm a bad person to talk about this because I don't trust people with anything they don't own. They will abuse it and ruin it and not care one bit. When those machines go down I bet it's a pricey repair and probably down for a few days.
@@kendallevans4079 Some repairs was customer ignorance. Various stuff left in pockets, candy, lipsticks, even ammunition. None ever went off. Nylons in water pumps!!! One woman washed a stuffed teddy in one of the big Milners and the drain plugged. That was a lot of fun and time, but no damage, really. Kids trying to "rid" in the big Cissels WAS a problem. The drum bearings were a POS
Every laundromat I have been in where an owner is standing in it is in good shape. MONITORED. Every one I have been in where no owner is present is broken down and trashed. People do not appreciate having one in their neighborhood enough to tell the brats (no matter their age) who break things STOP, or call police over the vandalism.
Years ago, many of my single friends and I would meet at our local laundry on Sunday afternoons...and while we did our laundry we would have a dish-to-pass lunch and chat it up. Fun times!
Thank you for sharing ! Very interesting. This is an almost non-existing business here in Sweden since you either have your own washing machine in your apartment or house or almost every apartment complex have washing machines available free of charge (paid via your rent) that you may use if you live there.
I just moved to a new neighborhood and the laundromat by me have washers with card readers attached to them. So you can just use your credit or debit card to pay for the washers instead of having to waste time and money by paying to take money out of the ATM, and then trying break that $20 or whatever into quarters. I was so happy to see that and I was surprised that more laundromats don’t have that option. It’s the only time I’ve ever seen washers with card readers on them.
@@cameronbateau6510 I live in Chicago and the laundromat I go to that’s down the street from had card readers. However, since this post, they’ve now updated once again, and instead of traditional card readers, the laundromat basically created their own payment card that you can add funds to and use for the washers and driers. And that laundromat payment card is now what we use in those “card readers”. Still not bad, but I preferred the card readers. Also we now have to pay for drying. The driers used to be free when they had the regular card readers.
You have earned my subscription sir at 13:35 when you close the door and turn off the lights while the owner was still going through his interview. This level of respect and courtesy is often missed. Thank you for the video!
Traveling, I ended up need some clothes washed. I found a place much like this. It was great, friendly, and the staff kept it spotless with many of the same services. I still remember the facility two years later that is how good it was.
We own 3 laundromats and only the one that is debt free makes 50% profit. Depending on the number of machines you can easily have $600-$800K in equipment not considering construction costs.
So $7k a month not counting rent, labor , repair, or debt service. Seems like for two people to see a return you would need a huge volume of people. Awesome looking laundromat I hope those guys make some money.
Depreciation and marketing costs too. There is more to it than what you see here. I don’t think it’s that passive either. Bills have to be paid, it has to cleaned, marketed, employees managed, equipment dealt with.
I was just adding this up too. There's also insurance. That water bill though. If only there was a way to reclaim that water without the huge cost. Is there such a thing as a laundrymat on well water?
This was a very well done video. The questions were on point and the guest was given lots of time to provide a detailed response. It is also nice to hear about the back story to their entry into this under appreciated line of work.
New machines means they're not breaking down. The one big thing that helps in owning a laundry is being able to fix the machines yourself. As the machines age they will start needing more service. Most people get out of the business when repair cost start to go up. They sell and then open in a new location with new machines.
This is a part I NEVER hear revealed. Perhaps it does not exist. My negotiations with an equipment supplier is going to be what my spare part inventory is with my purchase of 50 machines? They did a layout? Ridiculous. What parts on these models you propose failed at the other customers who had ordered 50+ machines? Which critical part has the lowest hour expectancy? My equipment sales guy doesn't know? Pathetic. NOW?, TODAY?! in the Supply Chain fails days, you want to just wing it, and find out later? Idiot. I know I need heater elements and belts. Which bearings fail fastest? How many bearing locations are there in a washer? How hot do pumps get? I see several walk through videos on RUclips, what dryer situations occur to produce the wall burns I see around old equipment? If I drive into a car dealer, and go to the back, and pull into the Service bays on Friday with a case of cold beer at 4pm, and get the guys around and tell them I want to buy a model, they will tell me straight up in 6 minutes, which is best, which parts fail, and what they drive. The same is true at Dexter. Get the name of the guy who services the local laundromats with Dexter equipment. He knows 9 parts I should have on hand right off the top of his head. I did not see any parts inventory in that backroom.
When I was considering buying versus renting it was the cost of laundry mat that pushed me into the home owner category. It adds over $2000 a year for a family of 4 to do laundry at a laundry mat. Now because we refinanced during Covid 19 when interest rates were low we only pay $500 a month to live in our house, which is less than the price of renting a lot in a mobile home park. It is crucial that people own their own home and laundry machines.
Not everyone can or wants to own their own home, or supports a fanily of four. Some people migrate for work, only want to live in a place for a few years, live in high density housing, or want to access laundromats for other reasons.
I certainly think he and his business partners are doing a great job and you can tell by how pleasant the laundromat looks. But man, the real star of the show is that app. Now THAT IMO is how you leverage tech to solve a real problem for both the business and customer. A simple issue solved by a relatively simple solution. It's one of those things that after learning about it, it seems so logical that you're kind of surprised it hasn't adopted on a widespread basis (though I'm sure there's probably a similar app or soon will be).
I would disagree. As a 65 year old very NON- tech person I stay away from anything other than cash. When I here "use the app", I turn around and go somewhere else. I still have a BlackBerry!
@kendallevans4079 with all due respect, I'd argue that you're a fairly unique case. My parents are your age and are very comfortable with using apps. The majority of ppl these days don't even carry cash on hand.
Laundromat near our place in northern mi looks almost exactly like this one except smaller. Top rated machines, very clean and well kept. They probably do very well.
I manage laundromats. The key is location then cleanliness. The profit margin can be as much as 60%, but it is generally 30-35%. A lot goes into it, but if your laundromat is a hog pen and not nicely kept, you will lose your tail. It takes work. Lots of work. You can’t just open the doors and expect to make $.
Great memories of Sausalito, Ca. when I tossed a couple of loads in, then jogged 5 miles and came back to an engaging time with folks who lived on their boats, apt. dwellers like me and a gamut of friendly people with various backgrounds, careers etc. Much better than staying inside my building. A high point every two weeks. !
As a laundromat owner myself I cant agree how he could suggest to customers that they can put a 40lb load in a 20lb machine to wash... that totally insane.
Thanks for the comment Kate. 👍Organization is very important when it comes to running a business. This business was very organized. 😀Have you checked out part 2 of the video ?
That's one of BEST! layouts I've ever seen for a Laundromat 👏🏾👏🏾👏🏾 it's has an outstanding contemporary design and it's very clean which in all. . .lends high comfortability, especially if the staff is professional. By the way, I think that choice of wood trim with the stainless steel washers and dryers are top-notch 👍🏾 they pair very well together, they even chose leather seating to accommodate the customers and leather is much easier to clean versus other fabrics. Good job to those guys.
Great video. Only question i have is why move the camera so much during the interview? Is the laundromat on a boat? Is the camera man drunk or on a swing? ....does he need a potty break? Other than that, very informative video.
I have a relative who opened one near a number of apartment buildings. He started off real strong but a store a little closer to the apartments added machines and it cut too deep into his customer base.
This is so super educational and well done. Professional questions, honest informative education answers, very inspiring for anyone thinking of opening any business. Thank you, and subscribed!!
never had any desire to own a laundry mat and still don't but this was an educational and interesting video that kept me engaged through the whole story
It's probably all fun and games for 10 to 15 years tops. Most front-loaders expire in 15 years, especially with heavy use. They then start to necessitate a lot of repair or replacement. I think those interested in this line of business should do proper consideration of the time it will take to get the investment back, the expected profit while the business is profitable, and the maximum time the business will work without necessitating machine replacement. The location should be around a densely populated area where people are too stupid, or are legally not allowed, to have washing machines at home. I reckon a place full of tourists would be the best.
@@UpFlip Come on, man. Stop being so agreeable to these comments! Tell this guy that you use it to read the questions, and then keep doing that if you want to. Don't be so quick to say "okay, yes sir, I'll do what you tell me to do". Tell him to kick rocks and do what you want.
What an awesome laundromat! I wish I had an app like that back in the day when I had to use a laundromat. What a great service for the community. Thanks for sharing the numbers! Very helpful.
Great informational video, I love hearing numbers. What would be even better is seeing numbers, I recommend putting actual text overlays over the video so people can pause and write these things down. If I were a serious business buyer I would also benefit greatly from a downloadable spreadsheet of general numbers of what was mentioned in the video, use that maybe to offer email list people!
Really big part of success is the location. I've seen a small, old place, not so high end laundromat strive because of their strategic location - very close to condominiums, apartments, and dorms. The new super clean laundromat was a little far from them that it's a long walk or you need a ride. The owners sold it then became a fast food joint.
The wear and tear on those machines. I recalled taking many of my my big laundry such as bedding and dirty shoes and washing it at the local laundry mat because I didn't want to damage my laundry machine. 😉
why don't they lease space in the laundromat? Like maybe you could have a small alcove with a seamstress offering repairs while you wash. Maybe have a barista operating a small coffee bar.
@@TheNicoliyah the issue I often have with laundromats are that they are so dull and boring. The one I used to go to had a Little Caesars in the same plaza, then the Little Caesars closed, and the laundromat soon followed. Now the one I go to I'll only wash then get out of there ASAP since it is so boring.
good idea. having an "office" in the middle of the place was the stupidest part xD overall good tho and can increase profit/sqft to use it more efficiently
Not automatically. Depends on water bill and rent. I know the laundromat near me went under because immigrant labor that was their main market vanished.
I love the look of that laundromat, how smart the owners are, the app integration and its functions are just genius, id love to see that business become a chain.
I own 2 laundromats in low income areas. I work about 25 hours a week and gross about 240K a year. whilst working with an advisor like Julianne Iwersen Niemann. I used to work in Sears repairs,, so I saved money by fixing my own machines. Believe it or not, the soap detergent vending machines bring in a good amount as well. Trust me starting and maintaining a profitable business starts with properly managing your finance.
@@IvanGoldBit holy crap!! You people talk about Trump all the time I see. I mean...even on these business videos!! I came on here to get ideas on the laundry business and decided to read comments and here we go again. This just proves my theory. You guys love him more than his supporters do. Lmfao!!
Thanks for making this. I am an entrepreneur and I always seem to create insanely complicated businesses. I love the idea of something simple like this. So I appreciate numbers on this kind of biz.
Location is the key. In past days laundromats in low to poor income areas were the key. Not anymore w/vandalism at an all-time high since the early 90's. You need to find or start one in a few selected area's. No longer locating them in previous mention. Find or build in 2 major upscale area's. Where? College or University neighborhoods. No explanation needed there with over 10,000-30,000 students living on campus. 2nd: Local resort or vacation area's. Tourist destinations. Like lake and mountains or ocean beaches. Loaded w/tourists on vacations. These area's are loaded w/campgrounds, cottage rentals and seasonal ownerships. People who own seasonal or year round travel trailers that leave them right there. Campgrounds may have a couple of machines but not even close to handle the traffic of people staying. Hope this gives you a few idea's. Also vacation spots now are winter and summertime. Not like in years past where everyone vacationed in the summer. Those mountain/lake area's have skiing, snowmobiling etc. etc. etc.. Go where the money is!!
I suspect he either grossly under stated it accidently or he just doesn't know since he has only been in business for months. My one bedroom apartment energy bill is averaging $53 a month and that's to keep the refrigerator running and my A/C unit that I only turn on when im in the apartment.
The biggest expense would be the depreciation of the equipment. On a straight line basis, and after googling the conservative life span on commercial laundry equipment is 10 yrs, ~500k of equipment is $4,200 a month. He also mentions another 200k in capital employed in the store which presumably also have D&A costs. Additionally after 10yrs of inflation, the cost to replace the equipment will be higher which understates the true depreciation figure. So that 500k in equipment becomes 600k to replace and therefore profits will be overstated somewhat, due to depreciation not reflecting the true cash cost to the business of using up a year of the equipment's life span. Not sure how the 50% margin was arrived at, is that the EBITDA/Operating margin and not the net margin?
@@od4407 I guess I'm just pointing out a large cost not mentioned by the video. A laundromat would seem amazingly profitable for the first few years with new equipment from a cash flow point of view, but in reality just this one store has to 'put aside' over $50k a year to account for equipment usage.
@@alexgamble4718 That’s true, an issue that comes with purchasing new high tech machines...which is why I would never go this route, I’d go for the lower end laundromat purchased from an investor looking to retire...older machines, you can replace them with other not so high end machines
my mom owns one of these down in Florida and her speed queens are now nearly 24 years old. she has owned it since 1992 and runs the place 24 hours a day. its a cash cow and the numbers are closer to 65% net. now it also has a section out area with a small cafe selling food that nets nearly $1500 a day.
Wow, that is a nice laundry mat. I had no idea it was so expensive. I am thinking about starting some kind of business to start that has some passive elements to it. But I only have $10,000 So I guess this idea is out of the question. But you said $423k and also $700k So I am still a bit confused. If I had that much money to start a business I would buy a residential apartment building for $2M-$3.5M with a $423k/$700k down payment, Which would gross $35k per month the first year and within a couple of years I would get the rents up to $50k per month. expenses on apartment buildings are about half, But you also get equity build up as you pay down the mortgage and appreciation as the value on the property goes up. I am curious how that would compare to owning and operating a laundry mat?
Card is the way to go. It’s more convenient and much faster. Gotta teach those who are stuck to their old ways. I was the same way. But it honestly beats a pocket full of coins, dropping a coin every now and then, loading those coins, and changing cash for coins. It gets people in and out so the next customer doesn’t go elsewhere. Great info here nevertheless.
Justin, if you read this... I didn't catch what part of the country you're in, but I am in the New York/New Jersey area and looked into doing this back in the 90's. The problem I struggled with was mainly market saturation. I was looking in an area with a huge immigrant population from South America with a lot of apartment rentals which is ideal. I spoke with one owner and, he told me these people don't understand the "card system" or any other automation (maybe that's changed now), they only understand using quarters and he said he lost his shirt with the automation available at the time. At one point there seemed to be a laundromat on almost every corner. A few are no longer there. Needless to say, I opted out. You have a beautiful business, and a great business model, good luck and God Speed.
I went to laundromats to wash blankets and bed sheets. However since my wife and I bought a front-load washer, we have not been to any laundromat because we could wash our blankets and sheets using our washer. As front-load washers became less expensive, more people would be using laundromats less often. I felt laundromats might not be a good business in the long run because they would be fighting for smaller customer base in the future.
Agreed! 100% percent truth! DON'T PARTNER WITH ANYONE FOR YOUR BUSINESS!!!!😬😬. It's a horrible ideal. You can be successful on your own. Don't feel like you have to have a business partner!!!
I didn't hear anything about the cost of servicing them. It was a nice glossy presentation about all the good things but what about repairs, cleanouts and vandelism? I have been doing service for years and most property owners are clueless and most laundry mats are only profitable in low income areas. Most people can buy a good used washer and dryer for less than what they spend in a couple of months at the laundry mat.
I was immediately confused when he answered with multiple different numbers for profit percentage. He should have asked specifically about net profit and net margin.
What are your thoughts regarding competition and how close a competitive laundromat can safely be? I am looking at a laundromat to purchase but realized a brand new laundromat opened up two years ago only 2.5miles away
Instead of a QR scan or app. Why, a card that Customers fill with money instead of coins? Will there be a video to explain on the app system, why, and how it would fully work? Is your business a S or a C corporation or an LLC?
Very interesting.....i have 50 years of experience with laundry. And recently find myself back to using them for now. His look beautiful. Wish he was in Albuquerque, N.M.Good luck sir u have right idea......customers needs rule.T
I would like to know What point of sale and CRM systems they are using. When he said he is running a two month cycle of water, does this mean he is recycling water? If so, how does he do that? I can't imagine recycling and cleaning laundry water.
@@richelletvforyou8324 Indiana. They're so bad here that I kinda want to figure out how to own one so people have a nice one to go to but not sure if it's profitable enough to keep up on one.
That is the nicest, cleanest, most modern coin laundry I've ever seen in my 46 years of life. It must be near a neighborhood of $5M homes but I don't see why anyone near to it would have to use such a facility. The ones in the poorer areas probably make a lot more in profit. Your expenses are much lower and you have a much larger potential customer pool.
Walk in there like you own the place & every once in a while talk to yourself. No body will mess with a crazy if it looks like a bad choice. Also wear a Lorena Bobbitt shirt!...lol!
@@dc2280 I have a washer and dryer. I mean I wouldn't want to own a laundry mat because it would be where I don't want to go and they destry and trash everything.
Yup! Just act like you’re crazy and talk to yourself and also scratch your arm once and awhile. Put some flour on your dark shirt and rub your head to make it flake... they will stay away from you
@@marlonestrella8105 I too think it is ridiculous that anyone should have to worry about their safety while washing clothes. However, I had to play crazy plenty of times to get my kids stuff ready for the week. It is a sad truth of our world. PS. Powder donut lips & shoulder twitches. Stay safe Brother Marlon!
Notice the Make of the Washers and Dryers was Speed Queen. I bought a Speed Queen Top Load Washer and Dryer 10 years ago and they are fantastic. A higher cost than most residential equipment but they are very well built, high reliability and they’re made in the U.S.A…
![Businesses that Always Fail? 7 Businesses with Shockingly High Failure Rates [Backed by Data]](http://i.ytimg.com/vi/WTDYuRVZDbo/mqdefault.jpg)
Make sure to watch Part 2: ruclips.net/video/dBJPgEhEfU4/видео.html
What would you do if you opened a business and were in Justin and Mike’s shoes? How would you deal with the situation? Leave a comment below!
that you said. i lost alot of money to invest laudry mat
I think this is the nicest laundromat I’ve seen thus far
@@luanpham3827 ddd
I wouldn't do business with my life partner like this couple did. Maybe go work for the state or something.
Probably not. The owner's income,. Repairs , property taxes light bill ,. Employee s if they hire anyone. Who knows
Finally, someone who understands that better service can equal more business and happy customers, and that sometimes it's not about squeezing out every penny of profit!
DAANNG with that 50-60 % profit margin he's already squeezing a ton of 🤑💰 no need to get stupid greedy though
I feel like that one guy on here from Ohio is like that. HIs videos are mainly about how much money he makes.
@@frankmontez6853 well he did put down 200k (with his partner) and never really gave his revenue, also not sure if he included his salary into it. If he did then yea its a very good margin if he didnt than we dont know. Also have to consider how much of his loan he is pay off each year. If he is able to pay off his business loan within 10 years than yup 100% agree (given his profits included his salary or at least dividends).
For certain areas and people, I say….”SQUEEZE”🤑🤫. They will steal from you, rob you, and take advantage due to their poverty mentality. You gotta let the mice play. Then use the lessons to mentally shift & be just as streetwise or even more so than they are! 😅
Better service yes but look at the area in which they are running the business they aren’t in areas where people need the services the most like apartments complex and places that don’t have room for a washer and driver
Best looking laundromat I ever seen! The ones by us are terrible.
They definitely did a great job remodeling.
I agree! STR8 TURRRRRRRRBLE!!!! Washers don't wash and dryers don't dry! 😂🤣😅
Looks like your.opportunity to fill a need😉
Live in Tucson. I go to laundromat just to wash large items, like our comforter. Have to many problems to take that on..
@Obidiah Fire
You're not lying..
I owned a small laundromat for 7 years. It was profitable. But due to space limitations I was not able to scale the business up to make it larger. I invested in new equipment on a regular basis, but a newer and much larger laundromat opened just blocks away. It still remained somewhat profitable, but the writing was on the wall. I sold it for a profit and the buyer operated it for the next ten years. It was time for me to move on to something else.
how much were you profiting annually??
@@CJBhattarai 5k/year
Remember this was thirty years ago, but off that small business the profit was about 40%
@@hammer-fn7gm 40% of your total investment or 40% of the gross ?
@@thomas6069 40% of revenue each year after expenses
The standout here: this owner was smart about it.
Rather than the "no more cash" rush of everyone else, he figured out a way to allow people to benefit AND still use cash if they want.
That's how it should be done.
We agree!
A digital only laundry is a SURE FIREway for it to go under. Not everyone lives in upscale white places like this....
*The App service is a big edge. Enabling clients to see how busy is the laundromat and even knowing the status of each machine before you set out to the place itself is very awesome and convinient!*
I don't agree.
I wish our laundromat had app. Cuts down on needing to get $10 to use on the change machine. It doesn’t take $20s. Also don’t have to worry about coins getting stuck and I lose all that money.
Please don’t just make you entire comment bold.
I just don't like the non cash fact. I use my laundry mat to launder money so I need it to be cash.
@@pbufhI’m a Fbi agent I’ve been tracking you for the past 1 month,we see that you’ve been laundering money at the laundromat hmm, 🤔 👀
I’ve traveled the USA, Mexico and Canada for six years in an RV. I’ve literally been in hundreds of laundromats. None were even close to being as nice.
His is amazing!
This is definitely a high end laundromat and that $473,000 price tag to get it up and running confirms that.
@@UpFlip will there be a part 3 to 5 video
God, that's a fact. My local one is rented. The owner will not do maintenance and the renter is fed up and will be happy to gripe about his woes to customers. So disheartening. Poor customer service. I've complained about the lack of lights in the parking lot, told him I would not come in in the evening, frankly, he gets what he deserves.
Hi! I am from Europe and I was wondering why do people in the US use laundromats, if most of them have washing machines at home?
I own 2 laundromats and I can tell you this one is 🔥 on the inside. It’s beautiful and well maintained. I need to update some of my machines this year because it’s a great business to have no matter how bad the economy gets.
How much do you gross and net?
What are you profiting annually?
How do you pick the right location?
I am interested in open one in illionis
Laundromats are recession proof
We bought an existing laundry 7 years ago.
We grew that business by 70%. Doubled the wash and fold service. Your prices must stay with what your local market will sustain.
Friendly staff is very important!
Thanks for the tip!
How much roughly were starting costs.
Totally agree, friendly staff is super important the customers will come back.
What about the costs for renting the place? Monthly
The owner (Justin) explained his business with perfectly. He was was looking at the camera and explaining his business in a very engaging manner.
He’s very smooth. I wouldn’t want to be the laundromat down the road 😂
These are the sort of guys that end up monopolising a city/state within his niche
This laundromat is in my home town. The other one was run down and closed down. There was a demand for one locally and this one filled the niche. I love the app, new well maintained facility and service
Where’s your hometown?
Who/what people go there??? Why do they not have/use their own machines?
@@justme.9711 they’re low income
@@gustavosalvini1827 I'm low income, but I still have a roof over my head and a washing machine under that roof, so I can do it at home. It's cheaper to do it yourself, there must be more to it that just low income.
@@justme.9711 There isnt. Many apartments cant have a washer/dryer.
I dont think you're as "low income" as you think.
For anyone interested in this, if you live in a bigger city or even just a college town, try and look ok apt sites for places that don't include washer/dryers in the units or don't have washer dryer hookups. You can make a lot off college kids who don't want to deal with their dorms crappy laundry rooms
Thats a very good idea!
Thanks for the tip!
yes! very wise. #1 rule in business real estate. "LOCATION. LOCATION. LOCATION."
Worked with a guy that bought laundromats as a side business. He said most of his profit didn't come from laundry but the crane games he put in. He made enough off those to quit our job and let the laundromats run themselves.
Oh wow, thats actually a good idea!
Damn.
Wow
Which goes to show you the laundromat doesn't make money the games did.
What a crane game?
I like how the business owner is looking into the camera as he’s explaining this. You can tell how transparent he is. Love it
Lot's of con men appear honest
I own 2 Launderettes in the UK. Location is everything, free parking and close to other shops so customers can go and run other errands. We also do commercial laundry and dry cleaning. Both shops are fully-manned as lots of customers need advice and we need to take laundry in. I work 1 day a week sometimes 2 and it is allowing me to grow my property portfolio. I can do lots of the repairs myself so that saves lots of money. Getting good staff is also key. Good video and Justin explained his business very eloquently.
Any more tips on how to pick the right locations?
The biggest deal breaker for me is cleanliness. I live in an apartment that has a dryer and top load washer now but when it comes to washing comforters I go to the laundromat. BUT, if the machines look and smell disgusting or have a ton of dog hair in and around it, I refuse to use it.
a good laundry mat will have designated horse/animal washers and greasers washers (oil rigs, mechanics etc)
@husher5142 A lot of dog owners are selfish and would not use a designated washer.
Love the detailed breakdown of overhead and startup costs. I was always curious about laundromats. I feel the location is what can make and break your business.
Glad we could help! And location is definitely very important.
wonder why he skipped over rent. That should've been #1.. probably couldn't legally reveal it so just skip it why not
what he didn't mention is you can score free silver coins if you're smart ;)
@@danielwhoI Market varies heavily from the Coast of Pacific Beach in San Diego, to say, somewhere in Wisconsin. However, like a restaurant, there is a ratio of income vs rent you want to stay at. Every industry has that metric.
Cash businesses like this or parking garages etc.. when it comes to reporting income to the IRS, don't make much money at all.. wink wink..
Nice to see a laundromat owner that's maintaining his business to attract customers. Most of the independent laundromats near me have closed down as the apartment owners in the area have added laundry rooms even when the buildings didn't originally have them; that's an indication there must be money in it. I now live in my own home but occasionally use a laundromat to do large items, and they're getting harder and harder to find in my area.
I don’t know if that an indication that there’s money in laundromat businesses. I doubt the landlords are doing it for the laundry income. I’d think it’s an indication that having in-house laundry is becoming more valuable to renters such that they’d pay more rent to live in places that have it.
Used a laundromat in St.Louis that was owned by an airline pilot. The girl there ran a tight ship. It was clean, well lit and the machines were dealt with as soon as they broke. Washateria in St.Louis/Shenandoah Ave for anyone reading this.
This isn’t the norm. I used to own 4 Lmats for 6 years and none of them were this clean. Realistically it’s the LM in poorer areas that makes money. The cleaner ones in nice areas don’t because everyone has a washer/dryer. When looking to buy one, I check to see how many apartment complex is around in a 4 mile radius, if they do section 8 housing. If they have onsite laundry facilities. My LMs would get vandalized on occasions and tagged, nothing too damaging. In recent years, due to the increasing electric and water prices, it wasn’t worth it when compared to the hours put in. Avg about 20$ an hour with 12-14 hours of work a day, expenses factored in, if you have employees their pay, it’s not like these guys make out to be. These videos are so BS.
See you're the kind of person that really tells it like it is. I hope and appreciate comments from no nonsense people like you. Most people just say stuff with no knowledge and shouldn't be commenting.
No mention of cost of the real estate. Obviously, that's a huge variable dependent upon where you want it and what level of client you are hoping for. But that would seem to me to be the most critical piece of the investment decision here. How much are your $/ft for the lease, and what's your corresponding pricing strategy, and WHERE does THAT leave your "50-60% Margin"? LOL😂
The 'hidden' cost is the owners' time. They need to record every single hour they spend attending to machines, handling vendors, accounting, etc. If their net profit (should they have any) allows them achieve $20 or $25 per hour pay scale, then they can compare that against other opportunities they might find elsewhere...including a salaried job that comes with benefits and vacations (which this business opportunity fails to do). This kind of business is usually 7 days a week from 6a to 10 or 11p at night. Being anchored to an operation comes with a substantial intangible cost. It's rare that that ever gets justified economically. But it does get justified by owners via lots of storytelling.
I'd have to agree with you on that one. Plus almost all of the laundrymats I've seen have shady behavior taking place outside.
@@jaybingham3711 This is not true. This specific laundromat isn't set up l
For the owner to own a business. When buying a business you need to buy a bussiness not a job, you can get that for free. If you don't do it right then you can be like this guy who barely gets time off. There are much better ways and that is why it may or may not work for other people.
I don't know how laundermats do, but I remember being a kid going there with my dad and coming out with at least a few bucks for candy bars after scouring the underside of machines, looking under chairs, and other crevasses. I loved every trip to the laundermat. It was like free money for me as a kid.
My uncle is a dentist, and a little known secret is that dentists are notorious for leaving loose change where there are candy and soda machines for people to find.
With a laundromat, you could be looking at ways to diversify your service and see if you can gain some commercial customers. There are lots of businesses that could benefit from high volume washing if you lower the prices.
I'm in hospitality (short term rentals) and I had to set up my own laundry company because all the laundromats were inflexible when it came to pricing. 2 years on and now we offer commercial washing to the hospitality sector. As it's high volume, all 6 23kg machines run constantly. If any of them break down, we just phone the rental company who fix for free.
It's a great business if you can get your head round lower prices and higher volume.
If you have machines sitting idle for most of the day, you should definitely look into this.
You could also look for ways to launder
The laundromats where i go all are doing laundry for walk ins and have professional housekeepers who are doing their own customers laundry at the laundromat. And some also do commercial and dry cleaning(not always in house). This keeps the attendants plenty busy.
Commercial anything is hard on the machines.
Why wouldn't your hospitality building have their own machines if they had such high volume of clothes needing to be cleaned? Or any business for that matter?
They say most business owners are assholes, but this guy had such positive genuine energy, you can just tell he’s one of the good people in this world. Never thought I’d have so much fun watching a video about a laundromat.
Hi Catherine. Haha! Glad to hear it and yes you can tell he just loves what he does. Are you a business owner too?
Most business owners are assholes? Damn, what life experiences have you had to say that. Business owners are as varied as everyone else...
@@bossturbo I am now a year older since my last comment and you're right I take it back, each human lives a complex life and I shouldn't judge their personality by if they own a business or not.
TV created that stereotype. A lot of business owners or productive and kind people. It really just depends on the temperament of the owner.
@@bossturbo That was my first reaction too.! That is some bitterness to make a sweeping generalization like that!
I agree with all the praise about this video and the laundromat and owner! One other thing: the design of this space is so on point. It shows how much they care about the customers. Not those plastic chairs, but stylish leather-looking couches? The wood trim. Every detail thought out. Well done.
Decades ago I worked part time doing maintenance/ repair on coin machines for a local family. The "old man" and two sons both had going laundries along with "side" stuff. They made money but a LOT of work. Not 8-5!!! I would be working late, 7-9PM doing machine repairs and one of them would pop in to do up change in the til and whatever else. And people can REALLY screw you, putting crap in dryers that melts and makes a mess of the drums, same deal with washers. Some dumb woman washed a giant stuffed bear in one of the big Milners, the thing burst and clogged up the machine. Took me hours to get things "undone."
This was one topic I don't think he touched on, maintenance. I'm a bad person to talk about this because I don't trust people with anything they don't own. They will abuse it and ruin it and not care one bit. When those machines go down I bet it's a pricey repair and probably down for a few days.
@@kendallevans4079 Some repairs was customer ignorance. Various stuff left in pockets, candy, lipsticks, even ammunition. None ever went off. Nylons in water pumps!!! One woman washed a stuffed teddy in one of the big Milners and the drain plugged. That was a lot of fun and time, but no damage, really. Kids trying to "rid" in the big Cissels WAS a problem. The drum bearings were a POS
Every laundromat I have been in where an owner is standing in it is in good shape. MONITORED. Every one I have been in where no owner is present is broken down and trashed. People do not appreciate having one in their neighborhood enough to tell the brats (no matter their age) who break things STOP, or call police over the vandalism.
Or have people camp in it.
Years ago, many of my single friends and I would meet at our local laundry on Sunday afternoons...and while we did our laundry we would have a dish-to-pass lunch and chat it up. Fun times!
Sounds like a good time!
Thank you for sharing ! Very interesting. This is an almost non-existing business here in Sweden since you either have your own washing machine in your apartment or house or almost every apartment complex have washing machines available free of charge (paid via your rent) that you may use if you live there.
It’s a top notch laundromat, I’d do my clothes there too..
Its definitely really nice!
I just moved to a new neighborhood and the laundromat by me have washers with card readers attached to them. So you can just use your credit or debit card to pay for the washers instead of having to waste time and money by paying to take money out of the ATM, and then trying break that $20 or whatever into quarters. I was so happy to see that and I was surprised that more laundromats don’t have that option. It’s the only time I’ve ever seen washers with card readers on them.
Today readers on machines at Laundrmats are common as Campbell's soup.
Only prob i can see with this is having to deal with on a daily basis with stolen cards, or a spouses card without their consent.
@@DJSHaKa Maybe credit card fees?
Where did you move to that had washers with card readers?
@@cameronbateau6510 I live in Chicago and the laundromat I go to that’s down the street from had card readers. However, since this post, they’ve now updated once again, and instead of traditional card readers, the laundromat basically created their own payment card that you can add funds to and use for the washers and driers. And that laundromat payment card is now what we use in those “card readers”. Still not bad, but I preferred the card readers. Also we now have to pay for drying. The driers used to be free when they had the regular card readers.
You have earned my subscription sir at 13:35 when you close the door and turn off the lights while the owner was still going through his interview. This level of respect and courtesy is often missed. Thank you for the video!
We appreciate the support! It really is the little things ☺️
What a clean and well run business, always cool to see that!
They definitely did an amazing job with the remodel!
Traveling, I ended up need some clothes washed. I found a place much like this. It was great, friendly, and the staff kept it spotless with many of the same services. I still remember the facility two years later that is how good it was.
Which one? Do you remember the name?
I just purchased my LLC license today and I'm in the process of getting my business started out with a laundromat.
Go Beast Laser Go. 😀😀💪💖⭐We couldn't be more happy for you. Have you chosen a location for your laundromat?
What is LLC?
How did that go for you?
I’m reaching out to one I found in Idaho first thing Monday morning
We own 3 laundromats and only the one that is debt free makes 50% profit. Depending on the number of machines you can easily have $600-$800K in equipment not considering construction costs.
Its a very expensive business!
Yes I agree Dustin. It is very capital intensive but if run correctly, it's a great business!
what is your annual net income?
No one buys or constructs laundries. You can one for free by negotiating a lease of an old one and retooling.
@@Telegrm-t_OnlyPwrHa! Stop believing everything Danny says. These guys are buying good mats' not run down ones like Danny talks about.
So $7k a month not counting rent, labor , repair, or debt service. Seems like for two people to see a return you would need a huge volume of people. Awesome looking laundromat I hope those guys make some money.
Exactly, location, location, and the person your in business with always have to be on the same page.
Depreciation and marketing costs too. There is more to it than what you see here. I don’t think it’s that passive either. Bills have to be paid, it has to cleaned, marketed, employees managed, equipment dealt with.
I was just adding this up too. There's also insurance. That water bill though. If only there was a way to reclaim that water without the huge cost. Is there such a thing as a laundrymat on well water?
That’s not true. He nets $7k which is average for laundries. If he grossed $7k he would be left with a negative. Laundries gross &15-$20k.
That location is GORGEOUS! Looks like an upscale lounge.
Its definitely really nice inside!
Agreed! That's what the top of the industry looks like.
The quality of this vid is damn near perfect. Keep up the good work I see that 1 mil subs in the future
Thanks a lot! Our goal is to give our fans the best content in the best possible way!
This owner was well honest with every decision he made with his business. Props to him !
Thank you for sharing your thoughts! Hope you watch our other content and find value in them. Any business you want to see next? ☺️
The owner. Smart man. Lots pf thought and analysis goes into a seemingly simple business.
Very true.
This was a very well done video. The questions were on point and the guest was given lots of time to provide a detailed response. It is also nice to hear about the back story to their entry into this under appreciated line of work.
New machines means they're not breaking down. The one big thing that helps in owning a laundry is being able to fix the machines yourself. As the machines age they will start needing more service. Most people get out of the business when repair cost start to go up. They sell and then open in a new location with new machines.
This is a part I NEVER hear revealed. Perhaps it does not exist. My negotiations with an equipment supplier is going to be what my spare part inventory is with my purchase of 50 machines? They did a layout? Ridiculous. What parts on these models you propose failed at the other customers who had ordered 50+ machines? Which critical part has the lowest hour expectancy? My equipment sales guy doesn't know? Pathetic. NOW?, TODAY?! in the Supply Chain fails days, you want to just wing it, and find out later? Idiot. I know I need heater elements and belts. Which bearings fail fastest? How many bearing locations are there in a washer? How hot do pumps get? I see several walk through videos on RUclips, what dryer situations occur to produce the wall burns I see around old equipment?
If I drive into a car dealer, and go to the back, and pull into the Service bays on Friday with a case of cold beer at 4pm, and get the guys around and tell them I want to buy a model, they will tell me straight up in 6 minutes, which is best, which parts fail, and what they drive. The same is true at Dexter. Get the name of the guy who services the local laundromats with Dexter equipment. He knows 9 parts I should have on hand right off the top of his head. I did not see any parts inventory in that backroom.
@@MarkH10 Exactly.
The manufacturer fixes them
@@MarkH10excellent points! What’s the warranty on those machines?
@@AscDrew The warranty is a part of the negotiations to purchase. Nothing is set in stone.
When I was considering buying versus renting it was the cost of laundry mat that pushed me into the home owner category. It adds over $2000 a year for a family of 4 to do laundry at a laundry mat. Now because we refinanced during Covid 19 when interest rates were low we only pay $500 a month to live in our house, which is less than the price of renting a lot in a mobile home park. It is crucial that people own their own home and laundry machines.
Not everyone can or wants to own their own home, or supports a fanily of four. Some people migrate for work, only want to live in a place for a few years, live in high density housing, or want to access laundromats for other reasons.
I certainly think he and his business partners are doing a great job and you can tell by how pleasant the laundromat looks. But man, the real star of the show is that app. Now THAT IMO is how you leverage tech to solve a real problem for both the business and customer. A simple issue solved by a relatively simple solution. It's one of those things that after learning about it, it seems so logical that you're kind of surprised it hasn't adopted on a widespread basis (though I'm sure there's probably a similar app or soon will be).
I would disagree. As a 65 year old very NON- tech person I stay away from anything other than cash. When I here "use the app", I turn around and go somewhere else. I still have a BlackBerry!
@kendallevans4079 with all due respect, I'd argue that you're a fairly unique case. My parents are your age and are very comfortable with using apps. The majority of ppl these days don't even carry cash on hand.
Laundromat near our place in northern mi looks almost exactly like this one except smaller. Top rated machines, very clean and well kept. They probably do very well.
Keeping things clean definitely helps!
I manage laundromats. The key is location then cleanliness. The profit margin can be as much as 60%, but it is generally 30-35%. A lot goes into it, but if your laundromat is a hog pen and not nicely kept, you will lose your tail. It takes work. Lots of work. You can’t just open the doors and expect to make $.
But that's ANY business. Nothing worthwhile in life is "Easy."
Great memories of Sausalito, Ca. when I tossed a couple of loads in, then jogged 5 miles and came back to an engaging time with folks who lived on their boats, apt. dwellers like me and a gamut of friendly people with various backgrounds, careers etc. Much better than staying inside my building. A high point every two weeks. !
Sounds like a fun time haha
Justin, a heartfelt thank you for your service to our country! 🇺🇸❤️
Informative Video! Always been interested in owning a laundromat.
Glad it was helpful!
Check online for business listings 👌
As a laundromat owner myself I cant agree how he could suggest to customers that they can put a 40lb load in a 20lb machine to wash... that totally insane.
It’s beautiful how organized he is.
Thanks for the comment Kate. 👍Organization is very important when it comes to running a business. This business was very organized. 😀Have you checked out part 2 of the video ?
That's one of BEST! layouts I've ever seen for a Laundromat 👏🏾👏🏾👏🏾 it's has an outstanding contemporary design and it's very clean which in all. . .lends high comfortability, especially if the staff is professional. By the way, I think that choice of wood trim with the stainless steel washers and dryers are top-notch 👍🏾 they pair very well together, they even chose leather seating to accommodate the customers and leather is much easier to clean versus other fabrics. Good job to those guys.
Great video. Only question i have is why move the camera so much during the interview? Is the laundromat on a boat? Is the camera man drunk or on a swing? ....does he need a potty break? Other than that, very informative video.
This guy is definitely doing this like a business, nice to see hard work results in success.
I think I saw my lost sock……
I have a relative who opened one near a number of apartment buildings. He started off real strong but a store a little closer to the apartments added machines and it cut too deep into his customer base.
This is so super educational and well done. Professional questions, honest informative education answers, very inspiring for anyone thinking of opening any business. Thank you, and subscribed!!
As a full time traveler and frequent laundromat user, I was super curious about this!
Glad it was helpful!
never had any desire to own a laundry mat and still don't but this was an educational and interesting video that kept me engaged through the whole story
Thank you! Our goal is to educate in a entertaining manner.
you succeeded. thank you & best of luck
It's probably all fun and games for 10 to 15 years tops. Most front-loaders expire in 15 years, especially with heavy use. They then start to necessitate a lot of repair or replacement. I think those interested in this line of business should do proper consideration of the time it will take to get the investment back, the expected profit while the business is profitable, and the maximum time the business will work without necessitating machine replacement. The location should be around a densely populated area where people are too stupid, or are legally not allowed, to have washing machines at home. I reckon a place full of tourists would be the best.
Commercial washers are made to be serviced
Yea that’s NYC. U retool every 7 years and pay nothing for repairs the manufacturer repairs you take out a loan
I like this guy, it’s clear he cares about his customers convenience and having a great experience, I wish him well
Thank @MatthewSheaSullivan ! Was there a particular part of the video you really enjoyed?
Paul. Holding a phone makes it seem you are more interested in the next text/call than this interview. You have pockets. Put the phone away.
Maybe he's using it to control the cameras? 🤷♂️
We use the phone to read off the questions for the owner. But we will put it away next time!
Damn you John! It's all I can see now.
@@UpFlip Come on, man. Stop being so agreeable to these comments! Tell this guy that you use it to read the questions, and then keep doing that if you want to. Don't be so quick to say "okay, yes sir, I'll do what you tell me to do".
Tell him to kick rocks and do what you want.
Didn't notice to mentioned 😂
What an awesome laundromat! I wish I had an app like that back in the day when I had to use a laundromat. What a great service for the community. Thanks for sharing the numbers! Very helpful.
Great informational video, I love hearing numbers. What would be even better is seeing numbers, I recommend putting actual text overlays over the video so people can pause and write these things down.
If I were a serious business buyer I would also benefit greatly from a downloadable spreadsheet of general numbers of what was mentioned in the video, use that maybe to offer email list people!
We're working on setting up an email list!
Really big part of success is the location. I've seen a small, old place, not so high end laundromat strive because of their strategic location - very close to condominiums, apartments, and dorms. The new super clean laundromat was a little far from them that it's a long walk or you need a ride. The owners sold it then became a fast food joint.
Nothing to do with location in NYC there’s a laundry on every block sometimes even 2.
The wear and tear on those machines. I recalled taking many of my my big laundry such as bedding and dirty shoes and washing it at the local laundry mat because I didn't want to damage my laundry machine. 😉
I’m proud of the guy for being brave enough to do this interview. You can tell he’s a man of few words 🤫🦾and lots of action!!!
Glad you love this video! Hope you also watch our other content and find value in them. Any business you want to see next? ☺️
@@UpFlip
🎊I’ll definitely check out more videos! 🤩 Maybe do 🤔 one about businesses involving drones. 🎊
Very informative video. I like how much he thought of his clientele.
Thanks for watching!
Considering trying my hand at this whole Laundromat business in Lakewood WA. These vids are very insightful, thank you!
why don't they lease space in the laundromat? Like maybe you could have a small alcove with a seamstress offering repairs while you wash. Maybe have a barista operating a small coffee bar.
Sounds like a great idea!
Ive often said that a coffee shop attached to a laundrette would be a great idea
@@TheNicoliyah the issue I often have with laundromats are that they are so dull and boring. The one I used to go to had a Little Caesars in the same plaza, then the Little Caesars closed, and the laundromat soon followed. Now the one I go to I'll only wash then get out of there ASAP since it is so boring.
good idea. having an "office" in the middle of the place was the stupidest part xD overall good tho and can increase profit/sqft to use it more efficiently
In my younger days there was a laundromat/pub. It was called Sudsy's 😉😄 You could watch a ballgame, grab a brew, and fold your laundry.
Not automatically. Depends on water bill and rent. I know the laundromat near me went under because immigrant labor that was their main market vanished.
I love the look of that laundromat, how smart the owners are, the app integration and its functions are just genius, id love to see that business become a chain.
Here in Georgia the machines have credit card readers on them. That was nice. The machines also accepted coin.
I own 2 laundromats in low income areas. I work about 25 hours a week and gross about 240K a year. whilst working with an advisor like Julianne Iwersen Niemann. I used to work in Sears repairs,, so I saved money by fixing my own machines. Believe it or not, the soap detergent vending machines bring in a good amount as well. Trust me starting and maintaining a profitable business starts with properly managing your finance.
"PASSIVE" works for me. Now all need is about a million dollars .
just have your father give you a very small loan...like all us other regular Americans get.
@@Phyoomz not all parents have that kinda money in fact most dont 😂
@@hopelessheathen8190 he was making a joke of what Trump said... his father gave him a small loan of 1 million
@@IvanGoldBit holy crap!! You people talk about Trump all the time I see. I mean...even on these business videos!! I came on here to get ideas on the laundry business and decided to read comments and here we go again. This just proves my theory. You guys love him more than his supporters do. Lmfao!!
LOL
Thanks for making this. I am an entrepreneur and I always seem to create insanely complicated businesses. I love the idea of something simple like this. So I appreciate numbers on this kind of biz.
Location is the key. In past days laundromats in low to poor income areas were the key. Not anymore w/vandalism at an all-time high since the early 90's. You need to find or start one in a few selected area's. No longer locating them in previous mention. Find or build in 2 major upscale area's. Where? College or University neighborhoods. No explanation needed there with over 10,000-30,000 students living on campus. 2nd: Local resort or vacation area's. Tourist destinations. Like lake and mountains or ocean beaches. Loaded w/tourists on vacations. These area's are loaded w/campgrounds, cottage rentals and seasonal ownerships. People who own seasonal or year round travel trailers that leave them right there. Campgrounds may have a couple of machines but not even close to handle the traffic of people staying. Hope this gives you a few idea's. Also vacation spots now are winter and summertime. Not like in years past where everyone vacationed in the summer. Those mountain/lake area's have skiing, snowmobiling etc. etc. etc.. Go where the money is!!
You're so welcome!
I am still tripping on the fact his electric bill is only $400 to $500 a month. Who is their Power Company?
Of course they're not telling the truth
In my area, some people pay more than that a month for their house.
he mentioned gas, so his dryers are probably gas powered instead of electric
@@TechDorfinMedia even gas is not cheap. I have a gas furnace, water heater and my gas bill is 125.$. He is lying
I suspect he either grossly under stated it accidently or he just doesn't know since he has only been in business for months. My one bedroom apartment energy bill is averaging $53 a month and that's to keep the refrigerator running and my A/C unit that I only turn on when im in the apartment.
Great looking laundromat and thank you for keeping cash options. I'm sure your customers appreciate the options.
The biggest expense would be the depreciation of the equipment. On a straight line basis, and after googling the conservative life span on commercial laundry equipment is 10 yrs, ~500k of equipment is $4,200 a month.
He also mentions another 200k in capital employed in the store which presumably also have D&A costs.
Additionally after 10yrs of inflation, the cost to replace the equipment will be higher which understates the true depreciation figure. So that 500k in equipment becomes 600k to replace and therefore profits will be overstated somewhat, due to depreciation not reflecting the true cash cost to the business of using up a year of the equipment's life span.
Not sure how the 50% margin was arrived at, is that the EBITDA/Operating margin and not the net margin?
So what are you saying
@@od4407 I guess I'm just pointing out a large cost not mentioned by the video. A laundromat would seem amazingly profitable for the first few years with new equipment from a cash flow point of view, but in reality just this one store has to 'put aside' over $50k a year to account for equipment usage.
@@alexgamble4718 That’s true, an issue that comes with purchasing new high tech machines...which is why I would never go this route, I’d go for the lower end laundromat purchased from an investor looking to retire...older machines, you can replace them with other not so high end machines
my mom owns one of these down in Florida and her speed queens are now nearly 24 years old. she has owned it since 1992 and runs the place 24 hours a day. its a cash cow and the numbers are closer to 65% net. now it also has a section out area with a small cafe selling food that nets nearly $1500 a day.
@@carloscruz7317 sounds like a good business, yes if the life on the machines is much longer than what I found out, that improves profits a lot.
This place is nicer and cleaner than ANY laundromat I have ever been to.
Wow, that is a nice laundry mat. I had no idea it was so expensive. I am thinking about starting some kind of business to start that has some passive elements to it. But I only have $10,000 So I guess this idea is out of the question. But you said $423k and also $700k So I am still a bit confused. If I had that much money to start a business I would buy a residential apartment building for $2M-$3.5M with a $423k/$700k down payment, Which would gross $35k per month the first year and within a couple of years I would get the rents up to $50k per month. expenses on apartment buildings are about half, But you also get equity build up as you pay down the mortgage and appreciation as the value on the property goes up. I am curious how that would compare to owning and operating a laundry mat?
obviously it is another risk with another expense and maintenance
You’re correct this guy is stupid no smart person spends anything to own a laundry. Negotiate the lease of an old one and retool every 7 years.
Very clean well run business here. Much nicer than some of the laundromats I've been to..
Card is the way to go. It’s more convenient and much faster. Gotta teach those who are stuck to their old ways. I was the same way. But it honestly beats a pocket full of coins, dropping a coin every now and then, loading those coins, and changing cash for coins. It gets people in and out so the next customer doesn’t go elsewhere. Great info here nevertheless.
Do you understand that the majority of customers are illegals who work on cash? They don’t have cards
Not for me. I use cash for everything and refuse to even use self check-out at the grocery! I still use my Blackberry!
Justin, if you read this... I didn't catch what part of the country you're in, but I am in the New York/New Jersey area and looked into doing this back in the 90's. The problem I struggled with was mainly market saturation. I was looking in an area with a huge immigrant population from South America with a lot of apartment rentals which is ideal. I spoke with one owner and, he told me these people don't understand the "card system" or any other automation (maybe that's changed now), they only understand using quarters and he said he lost his shirt with the automation available at the time. At one point there seemed to be a laundromat on almost every corner. A few are no longer there. Needless to say, I opted out. You have a beautiful business, and a great business model, good luck and God Speed.
He's in Ferndale, Washington.
@@Munromad thank you
Most money in laundromats is made in cash.
I went to laundromats to wash blankets and bed sheets. However since my wife and I bought a front-load washer, we have not been to any laundromat because we could wash our blankets and sheets using our washer. As front-load washers became less expensive, more people would be using laundromats less often. I felt laundromats might not be a good business in the long run because they would be fighting for smaller customer base in the future.
I like my interactions while there. I can wash clothes anywhere. It’s the family local feeling keeps me going back
Never have a partner in business, partners rarely work and it will ruin you relationship with that person
There's two sides to that, there's a lot of big companies that started out with two or more partners.
The only ship that doesn’t float is a partnership.
Ditto on that... From experience!
Agreed! 100% percent truth! DON'T PARTNER WITH ANYONE FOR YOUR BUSINESS!!!!😬😬. It's a horrible ideal. You can be successful on your own. Don't feel like you have to have a business partner!!!
@@kenrehill8775 Agreed!
I didn't hear anything about the cost of servicing them. It was a nice glossy presentation about all the good things but what about repairs, cleanouts and vandelism? I have been doing service for years and most property owners are clueless and most laundry mats are only profitable in low income areas. Most people can buy a good used washer and dryer for less than what they spend in a couple of months at the laundry mat.
I was immediately confused when he answered with multiple different numbers for profit percentage. He should have asked specifically about net profit and net margin.
That’s the nicest laundromat I’ve ever seen. I wish these guys great success.
We hope the same for you too!
What are your thoughts regarding competition and how close a competitive laundromat can safely be? I am looking at a laundromat to purchase but realized a brand new laundromat opened up two years ago only 2.5miles away
I cannot believe I am watching a video about a laundromat. The mentality of thinking in turns of systems system is impressive.
Instead of a QR scan or app. Why, a card that Customers fill with money instead of coins?
Will there be a video to explain on the app system, why, and how it would fully work?
Is your business a S or a C corporation or an LLC?
Whats the name of the app? and what's the purchase price of the app and machines?
Very interesting.....i have 50 years of experience with laundry. And recently find myself back to using them for now.
His look beautiful. Wish he was in Albuquerque, N.M.Good luck sir u have right idea......customers needs rule.T
How much do you spend on maintenance?. I've been thinking about owning a chain of laundromats.
That's a good question because the laundromat I use always has machines out of order.
He said it's very low since they are new, plus they are under warranty so most repairs are covered.
I would like to know What point of sale and CRM systems they are using.
When he said he is running a two month cycle of water, does this mean he is recycling water? If so, how does he do that? I can't imagine recycling and cleaning laundry water.
Wow, where’s that at? Every laundromat where I’m at is nasty.
Ferndale WA!
where are you? :D
@@richelletvforyou8324 Indiana. They're so bad here that I kinda want to figure out how to own one so people have a nice one to go to but not sure if it's profitable enough to keep up on one.
That is the nicest, cleanest, most modern coin laundry I've ever seen in my 46 years of life. It must be near a neighborhood of $5M homes but I don't see why anyone near to it would have to use such a facility. The ones in the poorer areas probably make a lot more in profit. Your expenses are much lower and you have a much larger potential customer pool.
Where I live laundry mats have to be in bad areas, so you deal with the worst people.
Walk in there like you own the place & every once in a while talk to yourself. No body will mess with a crazy if it looks like a bad choice. Also wear a Lorena Bobbitt shirt!...lol!
@@dc2280 I have a washer and dryer. I mean I wouldn't want to own a laundry mat because it would be where I don't want to go and they destry and trash everything.
Yup! Just act like you’re crazy and talk to yourself and also scratch your arm once and awhile. Put some flour on your dark shirt and rub your head to make it flake... they will stay away from you
@@marlonestrella8105 I too think it is ridiculous that anyone should have to worry about their safety while washing clothes. However, I had to play crazy plenty of times to get my kids stuff ready for the week. It is a sad truth of our world.
PS. Powder donut lips & shoulder twitches. Stay safe Brother Marlon!
@@susanfudge1737 that is great to hear. Stay safe Sister Susan!
Notice the Make of the Washers and Dryers was Speed Queen. I bought a Speed Queen Top Load Washer and Dryer 10 years ago and they are fantastic. A higher cost than most residential equipment but they are very well built, high reliability and they’re made in the U.S.A…