Coin laundry investment guide


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Investment Guide for potential coin laundry owners.

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Coin laundry investment guide

  1. 1. Clean Definition ofA Traditionof Excellence A SuccessSince 1894....Over a Century ofService & Success.Dexter Laundry, Inc. has providedhigh quality laundry equipmentfor over 100 years. Today, ouremployee owned companyoffers a complete line of frontloading washers, dryers, and storemanagement systems helping selfservice laundry owners experiencegreater success.Union workers build everymachine in the heartland of theUnited States of America, and ourheritage is built on delivering value.Unmatched product performanceprovides store owners maximumprofits while minimizing operatingexpenses. Our technologies deliverenergy efficiencies, our robustdesigns deliver lasting quality, andDexter Financial Services helpsmake investing in our equipmentaffordable.Authorized Dexter Distributors areexperienced in building profitableself service laundry businesses.They can answer your questions,provide you with guidance, and Dexter Laundry, Inc. Part #0995-104-001 Adding a Dexter Laundry to Your Propertyshow you how using Dexter 2211 West Grimes Avenue Rev. 1 - 05/10laundry equipment can help your Fairfield, Iowa 52556, U.S.Abusiness become more profitable.Contact us today at Dexter reserves the right to change part numbers and1-800-524-2954 to find a Dexter specifications without notice. © 5/2010Authorized Distributor near you. Dexter Laundry, Inc. All Rights Reserved. Reproduction without permission is forbidden.
  2. 2. Add Cash Flow • Add Traffic & Customers • Add Equity • Add StabilityA Clean Definition ofAdding a Dexter Laundry to Your Property SuccessWW hether you are looking for an opportunity to fill space, diversify the range of services Add Cash Flow Turn open space in your center into productive space. million customers from all walks of life, and are more than an $8 Billion dollar industry. provided in your center, or just looking for a great new business to own for Add Traffic & Customers Add Equity yourself; the benefits of adding a Vended laundries serve more than 30 The ROI (cash-on-cash) of a vended laundry to your property are many. laundry can be 25% - 35% making them a great investment. The nature of the business also offers substantial depreciation benefits for high income investors, which makes them a valuable business to remarket. Add Stability Vended laundries commit to longer leases making them very stable & suburban areas; neighborhood suitable for a laundry we will tell The Advantages tenants. shopping centers with grocery store/ you, if we don’t feel your location is The self-service laundry business drug store anchors are traditionally suitable, we will tell you that as well. provides many operational advantages Adding a Dexter Laundry very good locations. In more The final decision however will always to the small business owner. If you have a highly visible location rural areas, newer strip centers be yours. Historically, our industry has with good ingress, egress, and ample with “dollar stores” and/or larger weathered weak economic times parking in a lower to middle lower convenience stores with gas stations Owning a Laundry and grown steadily as the population income area with high traffic counts have been good locations. As a According to most industry experts, increases. Washing and drying clothes and with a reasonable population of manufacturer committed to the there are some 34,000 self-service is a basic function in life and a simple rental households; a laundry could vended laundry industry; we not laundries in North America alone. business. easily be right for your property. A only provide equipment, we also These stores generate approximately high percentage renters and a very provide equipment financing for many $8 Billion in retail sales serving some As a cash business, customers pay for dense population might make your projects. Based on our analysis, if 30 million people. their services upfront and there are property a great location. In urban we feel you have a location that is very few accounts receivable. While
  3. 3. self-service laundries do require a are away from home, traveling, or determine your location’s suitability occupation are all important incapital investment upfront, they do not on vacation, you’ll wish a self service for use as a coin laundry. What we’ll determining suitability for a laundry.require much labor to operate. The laundry was near. need for our review are the followingmachines do the job - and never show items: • Urban Locations: demographicsup late for work. Self-service laundries cater to at ½ mile radius, 1 mile radius, & 1 # 1 people needing to temporarily “rent” The current site plan for the ½ mile radiusThe Customer laundry equipment. They pay for the location being reviewedEveryone does laundry. Each of us opportunity to use your washers and • Suburban Location: # 2either uses our own washers and dryers instead of their own. People A map of the area, showing the demographics at 1 mile radius, 2dryers, or someone else’s. If you’re will use your laundry because they location of the property being mile radius, & 3 mile radiusa homeowner you most likely have don’t have access to other machines. reviewed.your own machines, although you may The “vend price” customers pay • Rural Location: demographics # 3wash larger items in a self service compensates you for your rent, A complete demographic report at 1 mile radius , 5 mile radius, & 10laundry. If you’re a student you most utilities, employees, other expenses for the location being reviewed: mile radiuslikely use the school’s machines or a and profit. $ 4self-service laundry. If you rent your Factors such as: overall population, Your expectation on rent for thehome, sometimes you rent machines About My Location household size, income levels, home location being reviewed.or use a self-service laundry. If you As coin laundry experts, we can easily ownership vs. renters, and type of # 5 A listing and analysis of other businesses in the immediate area and/or the center. # 6 A review of competition in the immediate trade area. Putting a Laundry in my Location: Basic Needs & Lease Information In the right location, laundries make great long-term tenants. But due to the substantial investment in infrastructure and equipment, they do have certain needs. Here are the among the most common:
  4. 4. R1 Lease Term: A minimum of ten an area) ample signage that conforms financed by a first lien holder. A to adequate water service, construction and equipment. (10) years in a base lease term, to that of the shopping center is vital. “must have” for virtually all financing gas service, sewer service, The equity required iswith two five (5) year options, or a Letter sizes of up to 24” are common, companies. and electrical service are all approximately 30% andsimilar combination and roadside signage is highly necessary. The amount of financing is generally available 6 6 desirable. .Terminations & Options: service will vary with store for the remaining 70%. WithW2 Space Needed: Depending Tenant options should size and amount & type of this information we can project 4. 4 on the location and needs of Use: In shopping center automatically renew unless notice not equipment. store profitability at varyingthe area, laundries can be anywhere locations, being the exclusive to renew is provided to landlord by levels of operation. With afrom 1,000 – 6,000 sq. ft., but 2,000 self-service laundry business at the tenant ninety days prior to appropriate • Water – generally a good location and a well-built– 4,000 sq. ft. is most common. As a center is critical. renewal or option dates. 2” - 2½” store, you have tremendousbusiness where customers are carrying water service potential to benefit both as 5. 5in their laundry; easy access and Facilitating Tenant How Ready is My Location Ready property owner and laundryconvenient parking are very important. Financing: To facilitate for a Laundry? • Gas – generally a owner. Dexter and our a tenant’s equipment financing, Building must be constructed on a 2” gas line local distributors have built33. Signage: As a business that serves renters (new people to landlord’s must waive or subordinate liens on equipment and fixtures concrete slab, on grade and have adequate storefront windows. Access • Sewer – generally a 6” thousands of successful laundries nationally and around sewer line the world. The employee owners at Dexter Laundry, Inc. • Electrical – 400-600amp, would welcome the opportunity 3-phase is desirable to help you turn your space into our next successful laundry project. The Profit Potential With a well-designed, well- built store, in a suitable For More Information location the ROI can be 25% Authorized Dexter Distributors to 35%, and possibly higher. have built thousands of Once we have determined successful self-service your location to be suitable laundries. Call us today at for a laundry; along with our 1-800-524-2954 or visit us local distributor we will work online at www.dexterlaundry. with you to design a store com to locate your nearest to maximize the profitability distributor and contact them of your space. From this more information regarding design we will determine the your local self-service laundry total project cost: including market.