Is the Coin Laundry Business Right for You?
by Ilene Fudim
According to the Coin Laundry Association, laundry centers and coin laundries
average a powerful 20 to 30% return on investment. A successful laundry owner
offers six powerful insights on why you too can and should achieve great financial
rewards with part- time effort.
Are you ready to join the ranks of the many successful entrepreneurs like Dan
King who are "cleaning-up" in today's commercial laundry industry? With stock
market fluctuations and an uncertain economy, many Americans have a difficult
time finding investments that can survive recessions and economic downturns.
However, the commercial laundry business with its 20 to 30% ROI is almost
recession proof. In fact both Dun and Bradstreet and the SBA have cited it as
one of the 10 top safest business investments one can make.
Believe it or not, that’s just one of the many powerful reasons so many retirees
are looking to invest in their own laundry stores. The fact is that coin
laundries and vended laundries are one of the most advantageous part-time and
retirement businesses that exist.
An Owner Lists the Benefits
According to Dan King, owner of several coin laundries in Southern California,
"I highly recommend investing in this industry – it has worked wonderfully
well for me and it can for you. Before I invested I considered 6 major benefits
that Laundry Center ownership offered and that no other investment provided."
1. First, I didn’t have to give up my regular job. I found that Coin Laundries
basically run themselves, which was great for me because I was looking for an
absentee manager situation. The fact is they require just a couple of hours
a week and are so easy to operate that basically anyone, anywhere can own one or more.
2. I also liked the fact that this is a ‘turn-key’ business, where you don’t
need staff on the premises. You can set your laundry to stay open 24 hours a
day, or you can have an automatic door-locking system on a timer set to open
and close when you choose. I personally keep my laundry stores open full-time
and that works well for my customers and for me.
3. Another benefit is that you can own a laundry near your home or further away.
They thrive in every state of the union. Coin laundries can be placed in
virtually all neighborhood shopping centers and perform exceptionally well
in renter-occupied, densely populated, lower-income areas. Your average
customer will be the estimated 89 million people who live in rental housing,
which is the fastest-growing housing segment in the nation.
4. Even better, this is an "All Cash" business with no inventory and no
accounts receivables. You can expect a high return on investment, liquidity,
tax benefits, and fast growing equity. Whatever your cash down payment is at
the time of purchase, you can typically expect to get back within seven years,
or sooner. Like buying a house, equity builds and you ultimately can expect
a substantial profit.
5. Once set up, I found that coin laundries paid off like a "cash machine"
week in and week out. Let’s face it: people will always need to wash their
clothes, which is why laundry centers thrive in periods of both growth and
recession. In fact, when times are slow and homeownership decreases, the
self-service laundry market thrives as more people are unable to afford to
repair, replace or purchase new washers and dryers, or as they move to
apartment housing with poor or nonexistent laundry facilities.
6. Finally, I loved the fact that I could purchase an existing coin laundry
to fit my budget, available investment dollars and personal requirements.
Coin laundries generally require between 1,500 and 5,000 square feet of
retail space, depending on the market size. Most laundries occupy retail
space that is rented on a long-term lease of 10 years to 25 years, including
option periods. The cost of buying a vended laundry can range from less than
$50,000 to more than one million dollars, depending on size, age and net income.
Bottom line, Dan King is one of many successful entrepreneurs in our dynamic
industry. In fact, there are over 35,000 coin- and card-operated laundries
in the United States, generating more than $3.5 billion in annual revenue
and these numbers are growing!
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