All Forum Posts by: Ken Barrett

Look for local Coin Operated Laundry Equipment Dealers (Speed Queen, IPSO, Dexter, Whirlpool). Many times they will have their own Route Service or be able to recommend one.
Make a list of your musts and wants and compare the contracts.

Normally they want to have a fixed contract for a set period of time to cover their costs as it is an investment for them and a convenience for you.
They need to buy the equipment, pay a service tech to install it, cover all costs of service, repair, collection etc and you provide a room and utilities.

What if after 6 months you find a better deal or decide to buy your own and tell them to take it out. A this point they haven't covered their expenses and now they have a used machine. 
Reasonably I would expect at least a 5 year contract with no automatic renewal. My garbage disposal company has that type of contract. The contract should also cover response time to an equipment failure. Typically they will be by about once a week and normally have a service truck with most of the common parts. If you have one washer and dryer and it fails the next day do you have to wait a week? 

The contract should also state the penalty for early cancellation. With that type of a contract you can send them a check and tell them that the machines need to be removed by a certain date or they will be put by the curb.

Top loaders are going to be cheaper it buy but will use considerably more water. The hot water fill on most washing machines are a continuous fill but you would need to make sue the tankless heater can supply the volume needed in the amount of time it takes to fill. 

A tankless heater is also going to be more expensive then a tank model. You did not mention gas so using an electric, tankless may require a lot of power.

If you are buying it for tenants to use for free I would stick with a simple washer (top or front depending on the best deal) with only a few options,  a water heater that has enough volume to fill the washer. and keep it simple and cheap.

If you are really concerned about water usage and cost do the calculations between the top loader and front loader volumes and  cost of water. Depending on the area it may not be too much.

Yes they will use too much soap in a front loader. And they will complain that the washer did not rinse it all out and it may take 2 or 3 more cycles to clean the machine out. But they usually only do it once. I would encourage the use of the soap pods and one per load works good. People are used to seeing suds and if there are no suds the clothes are not getting clean. That slowly changes over time and experience.

Or if there is a decent Laundromat nearby they can go there.

I will add that I own 3 Laundromats so I have seen all of the over-suds issues you can imagine. Up to opening the door and having the suds run out like an avalanche into a garbage can. I still had to scoop more out with my hands to have a chance at getting the machine to run right again. 

There are various posts that discuss the pros and cons of installing Laundry Rooms in your buildings.

Should they be installed?
Pricing?
Repairs?
etc.

I have added some information to the posts but I thought it may be better to try and capture them in one place so someone searching can get a number of views and opinions.

My thought has always been that if you are providing coin op washers and dryers that you should charge at least as much as a the local laundromat if not more.

I own a chain of Laundromats and plan to always be the price leader in my market.

You are providing a convenience so the tenant doesn't have to leave the building. They are saving money on gas and saving time.

"Breaking even" on any business venture is , in my opinion, not an option. That would be a charity.

How much would a tenant pay to use that room as a storage locker? That should be the minimum target for your in-house coin op revenue after expenses.

Depending on your utility rates I would suggest $2.50 to $3.00 for a normal washer and $1.25 for a dryer.

Another option is to contact a local Commercial Laundry Equipment Distributor and ask if they have a "route program". 

They provide the equipment (including service and repairs), you provide the space and utilities and the income is split. They will determine the price based on local markets.

All new machines have internal counters for auditing so they can provide you with accurate statements. 

Many distributors have a Route Program where they install the machines and collect the money and service them. You get a share for providing the Real Estate and Utilities.

If you use this method make sure the machines they install have counters installed (most new ones do) so it's easy to audit.

With this method you don't have to worry about repairs etc.

Buying new provides a warranty for the parts only but it is new. Try to install at least 2 of each washer and dryer so if you have a problem with one you are not shut down. 

As I have mentioned in other posts price them equal to or higher than the local laundromat for the same sized machine. Your providing a convenience with it in the building so charge enough to make money and cover repairs. 

I own 3 laundromats and provide info on how to repair the machines at LaundromatHowTo.com.

Ken 

I own 3 Laundromats and as I have mentioned in other posts you should charge the equivalent to a local Laundromat or more. 

Make enough money to cover the machines, utilities, regular cleaning and maintenance and the tenants will pay the extra to not have to go somewhere else. Your utilities should be below 25% of your income.

My Laundromats have the highest prices in the markets I am in. The cheapest washers I have are $2 and going up next week but our water rates are cheap. These machines are also being used 5-6 times per day.

Depending on the size of the space, the competition and the demographics you may consider installing a public use Laundromat and get the most out of the space.

PM me and we can discuss all that's involved. As I am also a dealer I can provide whatever information and equipment you need.

Ken 

And I hope you are charging more than $1.25. Those slides can go up to $2 and I wouldn't be any less than that.

People pay extra for convenience that why a bottle of water at a gas station is $1 and a case is $2.99 at WalMart. Depending on water and sewer rates it may be costing you $0.40 to $0.60 per wash. Maybe more as Top Loaders use a lot of water.

At $0.65 profit you will need to run it 125 times to cover the cost of a Service Tech to show up. And if you are cheaper than the local Laundromat there is more incentive for your machines to get constant use.

Consider how much someone would pay per month to use that room for storage and you should be making at least that amount in the Laundry.

It was mentioned above but the best way I have seen is the steel bar and lock through the frame in front of the coin box. 

I own 3 coin laundries and have not had an issue with this but I have seen it done. 

Of for about $35 each you can replace the coin box.

     As the owner of 3 Laundromats I would charge at least the same as the local Laundromat or slightly more. You are providing a convenience to your customers and they do not have to drive or carry their clothes anywhere. 

     It intrigues me that Real Estate Investors will look at all of the numbers for their rental units and  consider principle, interest, taxes, insurance, repairs, vacancy etc and then provide Laundry Equipment at a "fair" price without considering the costs involved.

     Space- If that area wasn't a Laundry could you rent it to a tenant as additional storage space?

     Utilities- All the normal ones- Power, water, sewer and hopefully gas. If you hot water and dryers are electric your costs will be higher.

     Equipment- Washers, Dryers, water heater, additional door locks

     Cleaning- The frequency will vary based on usage but it's has to be done. This includes cleaning up the spilled soap, cleaning the soap from the soap trays on the machines, checking the lint filters and picking up dryer sheets. 

     Repairs and Maintenance- First there needs to be a method for the customer to contact you or someone if there is a problem with a machine that needs to be fixed right away (water leak, door jam, washer didn't spin out) and a method to provide refunds. Or maybe the coin box is full and they got half of there money in. 
              Next is the repair. Local repair places may work on some of the models but most don't. They don't stock the parts or have experience with them. Even though they are not much different they just don't touch them. Trained service techs may not be in that area more than once per week. They normally work on a route system and cover a different area each day of the week. 
           And at some point there will be some vandalism. Normally they don't ever get any money but they may damage the machine trying or it could be "excessive use". People tend to feel they have to slam the doors on everybody else's Laundry Equipment.

        Treat a Laundry in your building like a division of your business and charge accordingly. If your prices are too high it means less people will use the equipment and it will last longer and use less utilities. There is a reason people pay $1.69 for a drink at a "convenience store" when they can buy the same one at a grocery store for $0.39.

        If you are looking for more information on repairs and other details check out LaundromatHowTo.com

   And if you are considering a owning a Laundromat a great place to start is LaundromatHowTo.info

Ken

I own 3 laundromats and I get a variety of people from the local apartments. The comments I hear is that they charge about $1 in the building and I charge $2 at the store. 

If you are going to offer laundry equipment treat it like a business. There will be increased utilities, repairs etc. Charging a $1 a load might seem like it's making you money but the first repair bill of $150 will eat that up.   

Charging the same as the local laundromat will cover the costs and the tenants have the benefit of not driving or walking to the Laundromat. If you want to charge more you will make more money and/or have less use of the machine. Less use equals less repairs (ignoring vandalism).

It's a convenience for your tenants but don't make it a liability to your business by giving them a deal.

Also people with large loads will usually go to the Laundromat.