I just found you videos yesterday. I'm looking into buying a laundromat. It's a nice clean place and the owner is just looking to retire. I don't have any previous experiences with laundromats so I've been absolutely loving all the info you have! It's been so informative and I'm excited at the prospect of having one myself!
Appreciate this method as an initial estimate when buying a laundromat that does not have books. BTW do you recommend buying such a laundromat? With no books? Or is it a no-no? Thanks!
Great question. I don’t recommend buying a laundromat with no books on your own. Have someone who knows the business hello you through the purchase. You want someone who knows what to look for and knows where the pitfalls are, like a consultant or a knowledgeable owner
Why shoot for a certain amount of revenue? Shouldn't a smaller amount of revenue simply mean a smaller price to pay for the laundromat? It's all about ROI!
This is helpful, Jordan! Would you adjust tpd for things like: attended, wash-dry-fold, etc.? I guess this is really a first pass at "is this a good fit" and then you look at how you can improve from there. Thanks!
Yeah, it’s basically a first pass. Wash-dry-fold and pick-up & delivery will definitely affect those numbers. And, of course, there are a lot of other things that’s will factor in, but this method will give you a ballpark starting point
Are there stats to support 3 turns per day per washer and 1/3 of the washer take for the dryers? Where are you getting these figures? Is this an urban, suburban, or rural setting?
Here's a whitepaper from ACEEE that found a 2.97 tpd average in their research: www.aceee.org/files/proceedings/2006/data/papers/SS06_Panel9_Paper29.pdf The CLA has also done owner polls on both tpd and dryer income vs. wash income. I'm sure you can look those up. They're both just ballpark numbers though. The only way to pinpoint the numbers is obviously to get more details about the specific laundromat.
Great video! Question regarding gross vs. net income. After emptying washers and dryers (usually bi-weekly) total amount is weighed but only a portion is kept as some quarters are returned to coin machine hoppers. How should the total amount be accounted for? Thank you
The total (gross) income is whatever is weighed out of the machines. I usually dump all of my quarters back into the hoppers and deposit the cash from the changers. But there isn't a 1-to-1 correlation of coins collected from the machines to cash in the hoppers. Coins from the machines is what counts (literally, haha)
Great question. I think the main reason is that dryers usually don’t have a set price unless they are full cycle dry. For example, most dryers are 25 cents for x number of minutes. So customers may put 2 quarters in, they may put 6 quarters in. It makes the metric slightly less useful. You can still calculate tpd for dryers though
Definitely, you can get much more granular and precise, which is obviously better. But until you get more information, how do you know how many turns an 80#is doing vs a 20#? I’ve seen stores that do way more turns in 60 & 80# machines than 20#, but also have seen stores that do way more turns on their 20’s. As mentioned in the video, this is a ballpark, back of the Mekong income estimation that can help you decide if a laundromat can potentially fit your criteria or not
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I just found you videos yesterday. I'm looking into buying a laundromat. It's a nice clean place and the owner is just looking to retire. I don't have any previous experiences with laundromats so I've been absolutely loving all the info you have! It's been so informative and I'm excited at the prospect of having one myself!
Awesome! Let me know if I can be of any other help!
Have you landed your laundromat?
Love the info! Been soaking up as much info as possible!
Love seeing the growth over the years
Appreciate this method as an initial estimate when buying a laundromat that does not have books. BTW do you recommend buying such a laundromat? With no books? Or is it a no-no? Thanks!
Great question. I don’t recommend buying a laundromat with no books on your own. Have someone who knows the business hello you through the purchase. You want someone who knows what to look for and knows where the pitfalls are, like a consultant or a knowledgeable owner
Thanks for sharing Jordan. Always valuable info.
I'm in the process of looking for a small laundromat in Baltimore, MD area. Great information!
You can do it!
Why shoot for a certain amount of revenue? Shouldn't a smaller amount of revenue simply mean a smaller price to pay for the laundromat? It's all about ROI!
Absolutely! This is not a way to determine the value of the laundromat, just a way to estimate the income before you get more data.
Hi Jordan, i am buying an existing laundromat asset purchase only. I am looking ways to remodel this laundromat. Do you offer coaching?
This is helpful, Jordan! Would you adjust tpd for things like: attended, wash-dry-fold, etc.? I guess this is really a first pass at "is this a good fit" and then you look at how you can improve from there. Thanks!
Yeah, it’s basically a first pass. Wash-dry-fold and pick-up & delivery will definitely affect those numbers. And, of course, there are a lot of other things that’s will factor in, but this method will give you a ballpark starting point
Are there stats to support 3 turns per day per washer and 1/3 of the washer take for the dryers? Where are you getting these figures? Is this an urban, suburban, or rural setting?
Here's a whitepaper from ACEEE that found a 2.97 tpd average in their research: www.aceee.org/files/proceedings/2006/data/papers/SS06_Panel9_Paper29.pdf
The CLA has also done owner polls on both tpd and dryer income vs. wash income. I'm sure you can look those up. They're both just ballpark numbers though. The only way to pinpoint the numbers is obviously to get more details about the specific laundromat.
Very good
Great video! Question regarding gross vs. net income. After emptying washers and dryers (usually bi-weekly) total amount is weighed but only a portion is kept as some quarters are returned to coin machine hoppers. How should the total amount be accounted for? Thank you
The total (gross) income is whatever is weighed out of the machines. I usually dump all of my quarters back into the hoppers and deposit the cash from the changers. But there isn't a 1-to-1 correlation of coins collected from the machines to cash in the hoppers. Coins from the machines is what counts (literally, haha)
Is there a particular reason dryers aren’t assessed by TPD like washers?
Great question. I think the main reason is that dryers usually don’t have a set price unless they are full cycle dry. For example, most dryers are 25 cents for x number of minutes. So customers may put 2 quarters in, they may put 6 quarters in. It makes the metric slightly less useful. You can still calculate tpd for dryers though
Can someone tell me the average TPD of existing laundromats
It’s around 3-3.5
Obviously WDF is not counted into this equation?
Calculator link is broken
NO your turning 80# at the same rate as 20# machines. This is very basic and not practical.
Definitely, you can get much more granular and precise, which is obviously better. But until you get more information, how do you know how many turns an 80#is doing vs a 20#? I’ve seen stores that do way more turns in 60 & 80# machines than 20#, but also have seen stores that do way more turns on their 20’s. As mentioned in the video, this is a ballpark, back of the Mekong income estimation that can help you decide if a laundromat can potentially fit your criteria or not
1/3 of 9666 = 3222 hope you file in your income tax properly....lol