CLA Connect Open Forum

How do you make extra income with your store??

  • 1.  How do you make extra income with your store??

    Posted 10 days ago
    Edited by DAVE MENZ 9 days ago
    Hey everyone, I'm curious... Other than your core business (self serve washers & dryers) what is your best income producer in your store? Soap sales, snack vending, drop-off laundry, games, Uhaul rentals, pickup & delivery, etc?? If you don't mind sharing what percentage of total store income is that revenue??

    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------
    Join CLA - Enjoy Membership Benefits


  • 2.  RE: How do you make extra income with your store??

    Posted 10 days ago
    Edited by Peter Mayberry 10 days ago
    Hopefully Larry L does not get mad at me again but I mine bitcoin at 1 of my stores. The $84,000 power bill also really helps with taxes at the end of the year for that location. You only need a really big electrical service and a ton of makeup air (like literally 5 times more than your dryers) I have 800 amps dedicated to the computers at this location with 400 amps left for the old laundry.


    As you can see it doesn't take up much space at all either.

    As for your revenue question I don’t really know the answer. It really depends on if you convert it to USD I suppose, and at what price. BTC tends to be a tad bit volatile LOL.

    ------------------------------
    Peter H. Mayberry
    Anytime Laundry
    Omaha, NE
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 3.  RE: How do you make extra income with your store??

    Posted 10 days ago
    I was giving some serious consideration to the bitcoin mining last year.
    The hoopla sort of died down on bitcoin but it's not going away.

    ------------------------------
    KEN BARRETT
    Washin Oxford Coin Laundry

    [EmailAddress]
    Anniston AL
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 4.  RE: How do you make extra income with your store??

    Posted 10 days ago

    Reply of the year right here by Peter Mayberry!

    Are those S9+'s? What controller are you using for all of them? That is a great setup, and reminds me of my early days in LTC/BTC mining!



    ------------------------------
    Benjamin Schlichter
    Benjamin Schlichter Person
    Circleville OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 5.  RE: How do you make extra income with your store??

    Posted 10 days ago
    Peter, I apologize if you thought I was "mad" at you. I offer personal opinions and suggestions, and bear no ill-will to any other contributor.

    The question raised by Dave M. was about other sources of income in a Laundromat. Interesting question worthy of response, however my thought turns to the practical when calculating Laundromat value includes auxiliary services.

    Self-serve washer and dryer income should not be calculated in combination with auxiliary income using the same multiples. Let me give an example.

    In the days when video games spawned video parlors. One innovative owner removed all but six washers and six dryers in order to avoid having to comply with restrictive city regulations on video parlors and bypass the higher cost of insurance for video parlors. He replaced all other washers and dryers with over one hundred video games.

    When he decided to sell, he absolutely insisted on the valuation being based on a Laundromat multiple. He eventually sold to a newbie, but two years later the bottom fell out of video games and the value of this business plummeted.

    Whenever I see auxiliary services becoming a significant contributor to income, I analyze the value based on two separate businesses and any additional insurance requirements.

    ------------------------------
    Larry Larsen
    Laundromat123.com
    Anaheim, CA
    Distributor - Insurance - Consulting
    Cell: (714) 390-9969
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 6.  RE: How do you make extra income with your store??

    Posted 10 days ago
    I've got to say Peter, I didn't expect that but I guess I should have from you! 🤣 Anyway, I understand cryptos but admit I don't get the whole "mining" thing... Anyway is it profitable?? If so, are you comfortable giving us a percentage??

    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 7.  RE: How do you make extra income with your store??

    Posted 10 days ago
    There are so many ways to supplement income in a laundromat.  Depending on location, you can do almost anything that any other retail store can do.

    For me personally, I have joked (not kidding) that I want a store with ATM machines and water bottle vending.  These are the highest margin, lowest hassle things that I have tried and continue to do in my stores - no employees necessary too!

    ------------------------------
    James DeLeo
    NY / NJ
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 8.  RE: How do you make extra income with your store??

    Posted 9 days ago
    Edited by Peter Mayberry 9 days ago
    Dave

    I started mining right before clean 2 years ago. It started out crazy profitable and you probably wouldn't even believe me if I told you. Over this past winter you would have lost money mining. (I know someone who did and now he looks like a genius though) Anyway, I mine just over 2 bitcoin a month at this time at this facility (Difficultly goes up or down depending on how many people are mining) but when my power cost are 7k a month it all depends when I sell. If I sold today I would get 22k for the month minus the 7k in power cost. So somewhere around 15k. I don't like to sell it though and don't very often. I also have paid for my miners several times over. I have no clue what miners cost today but a beginner would have to factor in that cost.

    Yes, those are S9s straight from the people's republic of China. I hear they have more powerful miners than S9s now but I don’t know a lot about the new miners. I also do litecoin mining but that's not real profitable right now. As I started earlier my machines have already paid for themselves many times over so I don’t have that extra cost.

    ------------------------------
    Peter H. Mayberry
    Anytime Laundry
    Omaha, NE
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 9.  RE: How do you make extra income with your store??

    Posted 9 days ago
    I do not post on here much but really enjoy reading everyone's advice/opinions but this post in particular really sparks my interest. I have been looking at ways to earn some extra passive income and this is what seems to be a very good one, after the initial start-up costs for the equipment. How did you get started in it?

    ------------------------------
    Cole Ticknor
    Cole Ticknor Person
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 10.  RE: How do you make extra income with your store??

    Posted 9 days ago
    Cole

    This is passive income but capital intensive. You can't buy miners on credit and no bank will loan you money to do this. To give you an example the electrical equipment in my largest mine looks like this:


    The electrical equipment in this facility runs 2,500 amps 24/7/365 which is more than some data centers. This facility is not a laundry so I won't go into a lot of detail as this is a laundry forum and not a Bitcoin forum. Mining at this scale gives you cheap power cost. Mining at your home does not.

    Ken, someone with your electrical back ground should definitely look into this.

    ------------------------------
    Peter H. Mayberry
    Anytime Laundry
    Omaha, NE
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 11.  RE: How do you make extra income with your store??

    Posted 8 days ago
    Peter,

    What's your cost of electricity per kwh?  I used to mine with GPU's about 5 years ago but paying 30 cents per kwh was not very profitable.  And then there was the noise and heat.  I probably should have stuck with it looking back, but knowing people in China were paying 5 cents per kwh demoralized me.

    ------------------------------
    Joe Copeland
    Store Owner
    Happy Bubbles Laundromat
    North Hollywood, CA
    www.BubblesCoin.com
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 12.  RE: How do you make extra income with your store??

    Posted 8 days ago
    You may want to consider more traditional approach  my most profitable is retail sales of soap and ancillary items to your customers. This doesn't include the boxes I also offer in a Vend Rite machine.
    My second best producer is a game called Pusher. While some of my other don't produce substantial income, combined they add significant income and offers the customers and their kids things to do. I have the space available to add many opportunities for extra income. Coin operated scale and horoscope machine. Crane, win a prize machine, bulk candy small prizes and sticker machines. Vending snacks and beverage water and Icecream . Vended coffee machine. I also offer air fresheners out of vending machine the little trees. ATM for convenience to our customers. I do have 2 video games and a horse ride, and Driving car machine. I offer free WiFi as a convenience. Over the counter I offer basic vape products. I was thinking about Lotto and quick draw but to labor intensive and possibly interfering with laundry customers especially when there's a big jackpot.

    ------------------------------
    DENISE RUBENSTEIN
    Laundermagic of Patchogue
    Bayport NY
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 13.  RE: How do you make extra income with your store??

    Posted 8 days ago
    Denise,

    When I bought my first 2 laundromats over 50 years ago, I had a similar mindset as you.  I was interested in trying almost any and every means to produce additional revenue.  I  tried all kinds of merchandise vending options, kiddie rides, video games, even pay TV.  Looking back, most of that stuff seems kind of silly today.  What I learned from that School of Hard Knocks course is that all of these relatively small revenue builders add a relatively large amount of complexity to the basic laundromat operation. The distraction of these small profit generators becomes a huge drain on an operator's time and energy.  For me, it just wasn't worth the effort.  It might be more profitable to spend one's time operating a second simple laundromat.

    ------------------------------
    Larry Adamski
    Muskegon Laundromat
    Muskegon, Michigan
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 14.  RE: How do you make extra income with your store??

    Posted 8 days ago
    I just love it when someone comes in and puts their clothes in a $3 washer and I'm going to see $1 in profit on that turn in a good year.

    Then I see them go buy a box of soap (.50 profit)
    Then go buy a snack (another .50)
    Wash it down with a soda (.75)
    Play a couple video games (1.00)

    Go throw it in a dryer $1.50 so maybe I will make another 50 cents profit if gas prices are not too high.

    Then go buy a box of fabric softener sheets (.50 profit)
    Go play another couple games while their clothes dry (1.00)

    Maybe I should just be happy with the $1.50 profit from the wash and dry but I like the $5.75 profit from the 2nd. scenario.
    Disclaimer: Not every laundry customer does this but I see it happen frequently and I pulled the #'s out of the air.

    Join CLA - Enjoy Membership Benefits


  • 15.  RE: How do you make extra income with your store??

    Posted 8 days ago
    Edited by DAVE MENZ 8 days ago
    Larry A and others,

       I realize that after a life of hard work and calculated risks, you are now financially secure. Having already built a secure life for yourself after 50 years work, you can now afford to keep things simple. I'm genuinely happy for you, you deserve everything you have. You may be interested in what's to follow tho, regardless of your position in life.

      Surely you remember a time when that wasn't the case. Surely you remember when you needed every penny of revenue that you could find, no? The reality is that most of us aren't in your position in life. We're likely in the position you were in maybe 30 years ago??? Surely you can relate and understand that.... Yet, it seems that you're giving us advice based on your place in life, rather than ours..

       The reason that I asked this question is that I wanted to prove a point. Our industry has, and is changing. I'll briefly share my experience on "extra revenue" outside of our core business( washer & dryer revenue) to prove my point.

        After 7 years owning mats and 4 stores, I had a lightbulb moment at 39 years old. I had several conversations regarding pickup & delivery as an "extra revenue stream" with others in the industry. Being ambitious and young, I decided that this could be a nice extra revenue stream so I gave it a whirl. I honestly thought it'd be extra $..., Then I found out that yes it's extra work but honestly once you crack the code and build your team, it's really not THAT much more work for me personally.

      Long story short, my pickup & deliver business operates out of 1 of my stores. All delivery laundry is processed 3rd shift when my store is closed to the public. I've invested a little capital in marketing and financed a new van with zero down but that's it to start.  After 2 1/2 years, we now have 3 vans, have created 16 jobs in our local community that are decent paying jobs. Our P&D generates over %200(yes double)  the gross and net revenue of any of our stores' "retail" revenue from washers, dryers, vending, etc all combined. Keep in mind, our rent didn't go up, and we bought no more washers & dryers. We've simply utilized our existing infrastructure much more effectively.  Yes, it was hard work for a few years to get things off the ground, put systems/management in place and finding good people.

       My point is this, someone in your place in life are likely not interested in this opportunity regardless of the amount of revenue and profit, I get that.  When you were younger and building a business and life, I imagine you'd look at this opportunity much differently.

        So I ask other owners this, look at your current business. Then ask yourself, why would I spend a lot of money acquiring multiple mats, and building up more debt or deploying more of my capital?? The P&D industry is revolutionizing our industry. I've heard many people say, "you must fix your own equipment", "absentee doesn't work", "Our industry doesn't have the profit margins for several layers of management", "you must be handy and be your own maintenance guy", etc.

        Truth is, our industry is changing for those that are interested. Just imagine... If you have an average sized store in a moderate market  doing $500,000 gross and 30% margins.... Imagine that being a $1.5 million dollar gross business with the same margins... No extra infrastructure or debt needed.... Oh btw, your business' valuation is now much, much higher than it was if you wanted to sell.

        This isn't a pipe dream, it's very real because I've done it. Still think we should keep our businesses simple??? Us laundromat owners need to wake up and see the opportunity before us. Our Industry is changing from a small simple model to something much more lucrative.


    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 16.  RE: How do you make extra income with your store??

    Posted 8 days ago
    Edited by LARRY ADAMSKI 8 days ago
    Dave,

    I appreciate your insight but my experience is limited to cities 9,000 - 40,000 population - far smaller than Cincinnati.  I just don't see a lot of yuppies clamoring for pick up and delivery here.  Think of Muskegon as a mini Detroit with a high percentage of "disabled" people on fixed incomes.

    Regarding my advice, I simply pointed out that focusing on small extra profit centers was a distraction for me for decades.  It was only in the last 10 years that I discovered that the best way to grow my business was to focus on the basic customer experience and eliminate the side shows.  When I finally cut out the drop off laundry service in 2013, it was one of my best decisions ever.


    ------------------------------
    Larry Adamski
    Muskegon Laundromat
    Muskegon, Michigan
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 17.  RE: How do you make extra income with your store??

    Posted 8 days ago
    Larry,

         I completely understand and my goal obviously isn't to convince you to start a delivery service. I actually grew up in Flint, MI and I'm pretty familiar with Muskegon(my cousin lives there). I will tell you this, other than extremely rural areas, it's still a worth while endeavor. I currently have about 900 total customers in my system and do about 300 pickups per week right now, nearly all residential accounts.  It's not like I'm in NYC here... My point is that it adds up very quickly, is lucrative and a perfect compliment to a mat.

     You advise others to keep it simple and not "overly complicate" their business. While I'm happy that it's simplified your life, I think it's bad advice given the opportunity within our ever changing industry.
         A town of 20,000-40,000 is MORE than enough to make P&D very, very worthwhile! Imagine your $1 million dollar mat being worth $3 million.... 🤔

    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 18.  RE: How do you make extra income with your store??

    Posted 7 days ago
    Edited by LARRY ADAMSKI 7 days ago
    Dave,

    I commend you for your success.   I  remember when you first appeared on this forum as a newbie.  You have made some good choices for yourself.

    I offered drop off laundry in my laundromats for decades.  That was my biggest mistake.  I had no idea how much that side show was obstructing my self serve business.  One day, I discovered an employee fraud scheme that involved drop off laundry.   Long story short, most employees were fired or quit and I discontinued the service.  My stress level immediately decreased and self serve sales began increasing way beyond what the drop off sales were.

    There are lots of businesses that gross more and net more than an average laundromat.   Most of those businesses have a huge downside.  They are much too stressful or they demand too much direct owner imput.  For example, my neighbor, we'll call him Bill, (because that's his name) earns a million dollars a year. He owns a small plant that makes hoses for cars.  Bill is 84 and he LOVES to work at his nearby hose plant.  He leaves the house around 7 AM and gets home around 6PM 6 days a week.  Bill is a nice guy but his life is his plant.  He hardly ever goes on a vacation.

    So my point here is that yes it's possible to find ways to make more money but be selective and weigh the life consequences of choosing one business over another.  I think that's good advice for anyone.  By the way, I actually make more money per hour than Bill makes ... but Bill has a bigger house and a bigger tractor than me.  Still, I somehow manage to get by with what I have.


    ------------------------------
    Larry Adamski
    Muskegon Laundromat
    Muskegon, Michigan
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 19.  RE: How do you make extra income with your store??

    Posted 7 days ago
    Larry,

        Thanks for the kind words. It does seem like yesterday that I was a newbie, soaking it all in. Many of your posts have directly helped me in my journey and I'm very grateful for your willingness to share. Honestly without the CLA and this forum, I'm confident that I wouldn't be where I am.
        I also remember when you eliminated your drop-off service. That was clearly the right move for you as well. I know many people in the situation of you neighbor Bill. They work themselves to the bone for every penny that they can get. Heck, many of them are in our industry. They think they can't hire help because if they did, they'd have no margin left. So they work for likely $10 an hour so their business shows "a profit".

        This is kind of the point that I think you're missing and making at the same time. Short term yes there's extra work to getting it going but once you have that breakthrough, it really changes how you look at our industry. I do not fix my own equipment, i have service people that do. I don't manage any of my 40 employees, I have a GM that is paid more than I ever made at my old job before I got into this industry. In fact, now that my delivery has grown, I've actually found myself bored. I don't do deliveries, or laundry, or hiring, or firing, etc. My management team does it all. Yes, I'm around throughout the week, but mostly out of choice. I'm not really needed at all. I am free to run my business and be as involved as I want to be on any given day. This is because of my delivery business and it's added revenue. You see I don't work more, I work much less. Because my delivery business is such an ideal compliment to a self serve mat, it works in perfect unison. It is the epitomy of efficiency. I could never afford the layers of management that I have in place without our delivery business. Because of my management structure, I'm literally free to do whatever I want. I can leave town for months at a time without my businesses suffering.
         I'm not attempting to convince you or anyone to change anything. However I've decided to make an effort to change our industry and the way that use mat owners look at our stores. Delivery isn't for everyone but for many mat owners it will literally change their lives if they will allow it too.

    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 20.  RE: How do you make extra income with your store??

    Posted 7 days ago
    And that's why I'm driving 7 hours this Friday to see Dave. I have run a Drop Off Business for 9 years, since I bought the store that had it. I worked the 11 hour shifts that the previous owner did until I could get the attendants in place.

    I was able to put a manager in place about 1 1/2 years ago and, yes that money used to go to me, but like Larry my hourly wage increased because of it. I have Staffing Agencies hire my employees, my manager trains and manages them.

    I have the facilities, space, staff and management in place to expand my Drop Off Business and adding Pick Up and Delivery is the next step. As many have said, and this was backed up by others at the Clean Show, it is a different business, laundry is only a part of it. So as much as I have going on with other things I am ready to build this part of the business to put me and my family in a better place in the future. And maybe one day I'll sell the P&D and Drop Off Business and just own Laundromats, or I can have it in a place one of my kids can run it alongside their own careers.

    My main ancillary centers that I have now don't provide any direct revenue. They are places for kids to spend time, read books and watch TV but as part of the big picture may provide the best ROI.

    ------------------------------
    KEN BARRETT
    Washin Oxford Coin Laundry

    [EmailAddress]
    Anniston AL
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 21.  RE: How do you make extra income with your store??

    Posted 4 days ago
    Hey Ken,

        I commend you for going the extra mile, literally. I don't have all of the answers but I definitely have figured out most of the answers and I'm happy to share them with a fellow entrepreneur. Anyone willing to drive 7 hours to improve and frankly elevate their business to another level, has my attention and respect. I look forward to meeting with you on Saturday. Safe travels!

    ------------------------------
    Dave Menz
    Queen City Laundry Chain
    https://www.queencitylaundry.com
    Laundry Magician Pickup & Delivery
    https://www.laundrymagician.com
    Cincinnati, OH
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 22.  RE: How do you make extra income with your store??

    Posted 6 days ago
    I was just trying to help a fellow laundromat owner. He asked what other income streams we might have had some experience with and that’s what I provided. I hope it was helpful. I operate 6 stores in NY and have always found the addition of these machines to be a good extra income stream. Other than the retail sales of laundry related products and snack✔️beverage machine the rest only require monthly pick up of quarters. Our stores average between $3,200 - $5,000/ month in net revenue per location. Aside from that revenue it adds to the value when you go to sell. With a
    3-5 multiple of net profit. I forgot to mention I also have a outside coin vacuum at some of our locations. So our customers in between wash and dry cycles they can go out and vacuum their vehicles. This is a much appreciated and profitable service.


    Join CLA - Enjoy Membership Benefits


  • 23.  RE: How do you make extra income with your store??

    Posted 7 days ago
    This depends a lot on store size, configuration, and situation.  My stores are all relatively small so space is at a premium.  Mine are all in strip plazas with a convenience store and my leases prohibits selling/offering services like snacks, sodas, lottery, etc...

    I've eliminated all the video/arcade games except quarter pushers.  They took up too much space and people just don't play them as much as they used to.  It's nice extra income for for the limited space they take up.

    Retail soap is huge for me.  I have Vision Vendors and sell over the counter. too.  I know that doesn't make sense but I tried in one store and saw sales increase 25%.  I can't explain, it just seems to work for me.  Retail soap accounts for about 20% of my revenue.  It took a while to figure out a product mix that worked.

    Drop-off service is big at a couple of stores, about 25% at one place.  I'm convinced it's success is largely a function of location and marketing, assuming you have employees who can execute.  My machines are all coin, but we accept credit cards for drop-off and adding that was like rocket fuel for that business.

    I've got a guy who services gumball machines.  Zero effort, little space.  Parents have extra quarters and little kids.  Bingo.

    My other favorite is the media companies that pay to put advertisements on walls or outside.  Comcast and Walmart are biggies where I'm at.

    I'm not a fan of going overboard with ancillary services like phone cards, UPS dropoff, and such.  IMO,  those are distractions from the core business.  If I have extra space, I want it for folding tables.  Long term, I believe customers will appreciate this.  I make my living on weekends, the attendants are busy enough, they don't need to worry about somebody dropping off a package I'm going to make 50 cents from.   ​

    ------------------------------
    Paul Kludt
    Multi Store Owner
    Lake Worth Coin Laundry
    West Palm Beach, FL
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 24.  RE: How do you make extra income with your store??

    Posted 7 days ago
    Peter,

    A year or so ago there was a reddit post that went viral showing the schematics for how to use the heat generated by your miners to heat your water. They obviously didn't have laundromats in mind and I don't mine bitcoin but at the time I thought this might be a good idea. Then bitcoin tanked and I forgot about it. Have you tried this?

    ------------------------------
    Avi Sharabi
    Brooklyn, NY
    ------------------------------

    Join CLA - Enjoy Membership Benefits


  • 25.  RE: How do you make extra income with your store??

    Posted 7 days ago
    I tend to 100% agree with Larry A on this. I want attendants cleaning and tending to the laundry so I recently stopped all drop off. Plus his point about the issues that arrive doing this service I have felt personally. It definitely adds stress.

    That being said I am a huge fan pickup and deliver but agree with what has been said already and consider it a completely separate business.

    As as for the mining and heat I don't do anything with it but the heat is tremendous and to your other point it's not always profitable to run them. My store always needs hot water.

    ------------------------------
    Peter H. Mayberry
    Anytime Laundry
    Omaha, NE
    ------------------------------

    Join CLA - Enjoy Membership Benefits