Andrew Cunningham, Licensed Real Estate Broker in CA. (00906334)
I have bought and sold laundromats in Southern California for over 39 years. If you want to sell you laundromat, and hire me as your broker, all of my consulting services are part of the broker relationship. If you want to buy a laundromat and hire me as your broker, AND if the seller’s broker will share the broker fees, then all of my consulting services are part of the broker relationship. If the seller’s broker will not share the broker fees, then you will be billed at my standard consulting rate of $300.00 an hour.
As an added incentive to let me be your broker, I will return to you $1000.00 of your paid brokers fees.
This service is offered to both seasoned operators and to those who have never run a business or run a laundry business before, and there is a big difference. The service, I call, Laundry 101, is designed to discuss, figure out, and plan the process of finding a potential laundromat to buy or to sell an existing laundromat; negotiating with the sellers or buyers and their brokers; figuring out if the laundry is worth the amount being asked for it; evaluating the condition of the laundry building, the machines, and about a dozen other variables that make the difference between a great money maker or a money pit.
How to Run a Laundromat Successfully
Running a laundromat is complex, challenging, and rewarding. Everything from marketing it to the public, setting the hours of service, setting up security for the laundromat, vending prices for wash and dry, determining prices for detergent, dryer sheets and the vending prices of soda and snacks; all of these demand the attention of the owner. Keeping the place clean, getting broken machines fixed, weekly collections of money, hiring and managing employees, are all part of a successful laundromat. As the owner, you must know the process of being a successful manager, employer, and a valuable business in the community.
Wash, Dry and Fold Inside Your laundromat.
Many people have no time to do their own laundry. They want to drop off their dirty clothes and pick them up nice, clean, and folded. You see laundromats offering a service called Wash, Dry and Fold or Fluff and Fold. Customers come in, drop off their laundry, they usually pay by the pound, and they get a drop off stub letting them know that their laundry is secure, and will be ready for pick up the next day by a certain time. Learn how to do this because there is a substantial margin of profit for this service. If you are an existing owner and do not offer this service you are missing out on a gold mine.
Wash, Dry, and Fold Delivery Service
This line of service is based on the Wash, Dry and Fold model done in your laundromat. It takes it to the next level. This level includes a phone app which directs people to call your laundromat and request a pick up for their laundry. You pick it up, wash it, fold it, and bring it back to them. Learn how to do this because there is a substantial margin of profit for this service. If you are an existing owner and do not offer this service you are missing out on a gold mine.
Due Diligence Report
This is a detailed analysis of the laundromat you want to purchase. The goal of this analysis or study is to determine the true value of the laundromat you are considering to buy. Using my unique method of evaluating utility bills and reported income and other pieces of information, I will be able to determine if the laundromat’s monthly net income is accurate. This report will allow you to make a solid determination if you want to purchase or walk away from this specific laundromat. For someone who is considering a specific laundromat to purchase you cannot miss this step. This is really the only way to know if what you are paying for the laundromat is really worth it. You have to spend money here to save yourself from possibly buying a money pit.
The Due Diligence Service is offered at a range of $4000.00 to $6000.00. A written report will be created for each laundromat and provided to you. Each laundromat is a unique entity requiring a significant amount of time and expertise to evaluate. This is a fee charged per laundromat.
Managing a rebuild of an existing laundromat or overseeing the construction of a new laundromat requires laundromat expertise, significant time and people management skills. When you rebuild an existing laundromat or decide to start from scratch and build to suit your own, you will need and want someone who knows the laundry industry standards as well as the application of those standards in the real world. Don’t just trust someone who is good at construction. Hire someone who can oversee those who have the skills to do the work of rebuilding or new construction and the installation of equipment so that the end product, the finished store is built for success. Success in all aspects involves considerations for the daily operations, staffing and customer flow, correct mix of equipment, issues of ingress and egress, and signage, just to name a few.
The project manager fees are 5% of the total cost of the rebuild or new construction.
Initial Consultation: 1/2 hour of my time billed at $150.00