So do you think the coin laundering business is for you? Easy money that you collect once a week? Does the place work alone? Consider these factors when analyzing the money laundering business

1. Change machines
Good coin-operated laundromats work with change machines. If a customer can’t get change, they go elsewhere. How many change machines does the store have? A standard change brand change machine can hold around $3000. You can easily check the specifications on their website. We changed machines means that the owner is running a tight boat. Two change machines mean the place is buzzing. No change machine means people have to ask the grumpy guy behind the counter or the place isn’t really a laundromat.

2. Store sign
Look at the store sign. It turns on? Half missing? Does it clearly tell people what a coin-operated laundromat is or does it just say “Bob’s”? The store sign will tell you everything you need to know about how well the store has been run. A great store has a great sign.

3. Top loading machinery
With today’s utility costs, it’s very difficult to make money on top-loading machines. If the store you are looking for has them and the place is busy, this is the kind of store you DO want to buy cheap and replace the top loading machines with 3x – 5x front loading. You will have to invest in new machines but you will increase your prices and profits. If the store has top-loading machines and it’s empty, drive by to see which competitor just showed up that has all new front loaders. Stay away from this store

4. Team brand
The Maytag man you see sleeping in TV commercials should visit some Maytag-equipped coin laundromats. While Maytag is a good household name, they don’t make all of their commercial laundry equipment and the quality has suffered. The leading brand in the industry is Wascomat. Who is Wascomat? Have you ever heard of Electrolux? A Wascomat store is a very good sign. Look for a Wascomat next to any other brand and chances are you want to use the Wascomat. Try it!

5. Utility bills
There is a commonly understood method that your utility bills make up 14% of your sales. Be careful with this, as older equipment will account for more than 20% of your sales. I don’t recommend looking at utility bills unless you’re estimating usage. This means that you are doing a calculation based on the total amount of water used divided by load of clothes divided by the selling price to try to get approximate washing revenue. If you can do this calculation, this is good.

6. Conversion
There can be a big difference in how you would manage a store compared to how the current owner manages the store. Are you kind and continuous? Do you care about your customers? Will you fix the shop sign and make sure you always have change and washers available? The store owner affects conversion more than any other factor, but it is not the only factor. Bigger new teams help too, but at the end of the day your personality will drive the business. I should say you have a “consistent” personality. Once he loses interest, sell the business before killing him.

7. Neighborhood
Get the demographics of the city’s population. You want a good mix of ethnic backgrounds, and the more kids (more laundry), the better. A neighborhood full of retirees is bad news. A neighborhood with too high a median household income is not good. Low rise buildings from 8 plex to 24 plex are better than giant high-rise buildings because they usually have poor laundry rooms. Also, rental properties in the neighborhood trump condominiums for coin laundry.

8. Parking
Make sure there is enough parking or lots of people within walking distance. Imagine how far you would carry your clothes if you had to walk to a laundromat. If possible, you really want to have plenty of parking. If you don’t have parking in front of the store, you probably don’t have a laundry business.

Also as a side note, if the road directly in front of the store has an island separating traffic, you’ll need to stand outside and watch the flow of traffic into the store. Traffic islands are generally small business killers.

9. Wash and fold
I would suggest anyone looking into the laundry business wondering what is the benefit of having a laundry counter.

I have seen many real estate agents claiming that you can increase your business by adding a wash and fold counter. You can grow your business, but not in the way you think. Earning a new source of income from the laundromat means committing to the effort of building that business and paying someone to be there for longer hours. It’s rare (but they do exist) for a laundromat to exceed its staff cost in wash and fold sales. If you are buying as an investment consider this. If you already have a full-time wash and fold person and plan to eliminate them, expect a 10% to 40% drop in your self-service traffic. The real prize of having an attendant comes from the convenience you give the person doing the self-service laundry.

10. Consistency
Well-run laundromats are consistent in everything. I mean EVERYTHING! This includes (but is not limited to) your store hours, staff, cleaning method, cleaning schedule, washing and folding method, machine brands, available change, soap, supplies, etc.

The less consistent you are, the less consistent your customers will be.

I’ve run 3 laundromats for 5 years and unfortunately for me, it’s time to go out of business. I have learned a lot and met many new and wonderful people. I sold 2 of the 3 stores I owned and the two new owners took my advice to heart and have put their new investments to good use. I have one store left for sale and I am torn to see it go.