There may even be some self-serve mats out there that can receive a boost by adding WDF, if you see that as appealing. I know some owners who are making lots of money with pickup and delivery. Now, that’s not to say that you shouldn’t buy the mat! I ran WDF my entire career and did well with it. If the mat offers pickup and delivery, its sale value in relation to the gross is even lower due to greater management needs.
LAUNDRY MAY FOR SALE PLUS
There are more employees to manage, plus various problems come with the service because the mat is responsible for customer property. This is because WDF requires more work and attention on the owner’s part. Providing wash-dry-fold (WDF) service raises a mat’s value, but not as much as a fully self-service mat doing the same numbers.
A short lease with no options, or a new “mega” mat being under construction nearby are major red flags that would cause me to walk away. If there are red flags, it could go as low as one to two times the net, depending on just how “red” those flags are. If the mat has equipment that’s less than 3 years old, a long lease that’s easily transferrable, steady income, and there are no new mats entering the trading area, the ratio could be as much as five to six times the net.
Don’t include loan payments or taxes.Īfter deducting these expenses from the gross, you’re left with the net earnings (profits). You start with gross sales, then subtract the regular operating expenses, which are most of the expenses: rent, utilities, repairs, supplies, payroll, etc. What is EBITDA? It’s Earnings Before Interest, Taxes, Depreciation and Amortization. Many mats end up being sold in the EBITDA range of three to five times the profit, but there are exceptions. Like a detergent supplier, distributors usually have their ear to the ground in their market. Enlist the Help of Distributors Who Can Act as Brokers Leave your contact info whether it’s for sale or not. Walk in and simply ask if the mat is for sale. Drive the Areas You Like and Canvass the Laundromats There Many are “tire kickers,” but some are serious and are financially prepared.ħ. For instance, if your area has a lot of Chinese Laundromat owners, put an ad in the Chinese newspapers they will translate your ad into their language.įrom my experience, you get a lot of calls. Check the Business Opportunities Section in Your Local NewspaperĬonsider also looking into ethnic newspapers, if your area has them. Utilizing brokers and online business sale sites wasn’t my cup of tea but you may think differently.Ħ. Sometimes mat owners will ask them if they know anyone who is looking to buy when they start thinking about cashing in their chips. They routinely interact with Laundromats on a weekly basis. Ask the Local Laundromat Detergent Suppliers for LeadsĪsk the suppliers in your area (if there are any) if they know of a good mat for sale and leave them your contact info. You must show the public that the “nightmare” mat is gone and something new and exciting is coming their way.Ĥ. This is the kind of mat that also requires a new storefront (one with automatic doors, I hope) and big, new signs.
LAUNDRY MAY FOR SALE INSTALL
You still need a decent investment to accomplish this because after you buy the mat, you will surely need to install new equipment and remodel the place from the inside out. You can negotiate a nice cheap price to buy, and also negotiate a better lease.
The seller is usually desperate to sell a money pit when you come along and save the seller (and the landlord). If the mat in question was run down due to bad management and not because of a big, new competitor, you may have a diamond in the rough! This was my favorite scenario, because it’s very likely that the mat made money in the past. You want there to be no new recent competition nor any in the pipeline for the near future. Buy a Rundown Dump of a Mat Cheaply and “Raise It from the Dead” STRATEGIES FOR FINDING THE BEST STORE (Continued)ģ.
LAUNDRY MAY FOR SALE HOW TO
I’ll conclude today by sharing the rest of my list and discussing how to value a Laundromat. In Part 1, I explored certain characteristics of laundries for sale, then offered the first two of my strategies for finding the best store. A cheap, run-down mat is usually better for an experienced mat operator who knows how to raise it from the dead. You also need to know what’s the best mat for you. I wish I had a dollar (coin) for each time I heard, “How can I find the best Laundromat for sale in my area?” There is more than one road to achieve this.įirst, you must ask, “Do I have enough money to buy and improve the best mat in my area?” Undercapitalization is one of the main causes of business startup failures.
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