Unfortunately the route operators (folks who put washers in apartments) are the rich Uncles of the laundry business. They pay considerable upfront fees for apartment owners to sign long term contracts on the profitable locations. Average price was $100.00 per apartment paid upfront per apartment door in my days as a small route operator.
Route operators are skilled and knowledgeable owners with attorneys always available. Contracts are solid and often automatically renew. In the old days they had to buy their washers from distributors, but now they buy at factory direct prices and frequently prices lower than Laundromat distributors pay.
Problems you will face include:
1) Cost of the new equipment often demanded by the apartment owners before agreeing to a contract.
2) Upfront fees to pay to the apartment owners.
3) Immediate repair capability often demanded and provided by route operators.
4) Obtaining an insurance policy for protection against liability claims. Not a normal policy offered by many insurance carriers.
5) Vandalism and frequently damaged coin box housing as these isolated machines are attacked; more often than in your Laundromat.
6) More involved techniques used to gain free wash and dry. Remember, no remote cameras are normally installed.
7) Cancellation of your contract and a need to remove and store your washers.
At one time there were over 700 route operators in California (and numerous small ones) which is now reduced to 100 or less. The "Rich Uncles" have won this war for these locations.
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Larry Larsen
Laundromat123.com
Anaheim, CA
Distributor - Insurance - Consulting
Cell: (714) 390-9969
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Original Message:
Sent: 02-04-2019 13:42
From: Joe C.
Subject: Apartment Laudromat Route
My laundromat is surrounded by apartments. They are my biggest competition, not the nearby laundromats. Managing the laundry rooms in apartments seems like a logical growth strategy for my business. I've run some number in my head and it appears to very profitable.
Are any of you guys managing the laundry rooms in nearby apartments? If so, can you share your experiences?
I talked to two friends who live in apartments. One said that the landlord removed the laundry equipment from the laundry room so now everyone must visit a laundromat. The other said that the laundry room was so filthy that he dreaded doing his laundry there. He did nevertheless.
If the above stories are typical, it seems like a successful laundromat owner who knows how to keep machines working and a laundry room clean would be able to expand his business.
Thank you,
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Joe C.
Store Owner
Happy Bubbles Laundromat
North Hollywood, CA
www.BubblesCoin.com
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