CLA Connect Open Forum

Apartment Laundry Room

  • 1.  Apartment Laundry Room

    Posted 20 days ago
    Hello, I posted a few weeks ago that I was working with an individual who is building an apartment complex for college students.

    I am having a communication issue with my distributor, either it is real or imaginary, or he is just to busy to deal with me. It is possible that it is me.

    I had asked my distributor for a quote of four washers and four dryers, one each per floor to be installed in a laundry room.  I sent him a PDF of floor plans with dimensions showing where the machines will be located.  I said I wanted the machines to have CC/DC Apple/Google Pay.  I said to my distributor this apartment complex is geared for college students. The students on this university campus are very high tech. I told my distributor there will be no room for a quarter machine. We all know that college student's and millennials are more likely to have their phone in their poession than an ID or DC/CC.

    I received the quote from my distributor. After a  few days I called my distributor with a few questions. I verify the quote making sure the cost includes the CC/DC Apple/Google Pay. His answer is no. He tells me that cost is an additional $500-$600 per machine. My distributor goes on to say that I will need special/additional internet/Cat 5 wring for each of the two machines on the four floors.  My distributor then proceeds to tell me that apartment laundry rooms do not work like an open floor plan of a laundry mat. He proceeds to tell me there are IT and router issues to make this work properly.  Remember this apartment building is under construction and can be wired accordingly. My distributor then proceeds to tell me about PayRange, a mobile app that people can down load to their phones. You load the app with funds from your DC/CC to purchase items and services. The PayRange device is around $200 per machine for equipment and installation. There is no monthly fee, just %5.25 processing fee. I have done some research on Payrange, the company is growing and this method is becoming more and more popular for purchasing items from vending, arcade and laundry machines. There is a delay in when Payrange pays you from the washes.

    My question is: I do not understand why the CC/DC Apple/Google readers is $500-$600 each. Why did my distributor not include this on my quote?
    Is this the norm when asking for laundry equipment quotes? I do not understand the IT and router issues, He attempted to explain the issues to me. Either he did not really know what he was talking about, or I just did not understand.

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    ROY JACOBS

    Rolla MO
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    Clean 2019: June 20-23 - New Orleans


  • 2.  RE: Apartment Laundry Room

    Posted 20 days ago
    First, a couple of things:

    1.  If you are on multi floors, you're going to need ethernet wiring if you're going to connect the machines to the internet.  Not a big deal, but build it in.  Plan on a router area, it will have to be secure and have 120v power and the ability to have a cable routed there.  I hope you're budgeting for your $65/month cable internet service
    2.  Top loaders and small dryers simply don't have the technological capability you need.  What machines did you decide to go with?  I'm always surprised at all the folks that come here looking for advice, but leave out the information that is needed to get that advice.  I have zero idea, nor does anyone else on here, what to tell you about connecting up mystery machines to payment systems.  What machines?  What credit card access?  Fascard?
    3.  Distributors are not often one-stop-shopping.  Maybe with coin drops, but payment systems have been traditionally third party. You're goign to have to figure out the details on your own, you're counting on the distributor to do your legwork for you.
    4.  I suspect the distributor is busy and is also uninterested in doing a newbie's homework for him.  Have you purchased machines from him before, or is this all a grand plan to get into the laundry business?
    5. Bad news.  There are only crappy micropayment systems on the market, I want one really bad, but not a single one meets even my bare minimum standards.
    6. Why not just do a coin system?  Sure, it's not elegant, but you can buy off-the-shelf machines, both washer and dryer, you don't have monthly fees, your whole kaboodle won't go down if the internet gets cut off, you won't have network gremlins, you won't have vendor issues when the payment system goes down on a weekend.
    7. I suspect you have a pie-in-the-sky dream of an absentee-ownership, only show up if a machine breaks, collect an annuity for ever
    8.  Instead, I bet if you model this all out, if you aren't using coins, you won't make enough money to make it worthwhile.  If you are using coins, you probably still will be surprised how little money you're going to earn with just a handful of machines.

    ------------------------------
    Luigi
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    Clean 2019: June 20-23 - New Orleans


  • 3.  RE: Apartment Laundry Room

    Posted 20 days ago
    If I were giving you advice, I would advise you to buy two or three of these per floor and two or three of these (better watch out for your wiring!  You are putting in 220v aren't you?

    Buy one of these  and put it on the main floor.

    Charge a way higher rate than you're thinking.

    Otherwise, you're talking $500/machine for payment systems, monthly fees, credit card fees, internet fees, network issues...that all makes sense when you're grossing $250k/year or more, but at a hundred or two hundred a week (month?) don't be silly. Your payback period will be infinity.

    ------------------------------
    Luigi
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    Clean 2019: June 20-23 - New Orleans


  • 4.  RE: Apartment Laundry Room

    Posted 20 days ago
    Or of course, you could use a stored value card system that only needs one internet connection, takes cash and credit cards, puts them on the card.

    Google "stored value laundry card" and you'll see all of those solutions.  they're what apartments go with these days.

    I still think it's overkill, cost-wise for your small installation.

    Sit down and dwell on what you're going to charge for a wash, then what you're giving the owner for using his utilities and space, then your financing costs of the machines and figure out your net margin per turn.  Then subtract the 5% processing (best you'll do is $.30/transaction and 3%, so it's even worse) and when you figure out what is left, figure out what the payback period is.  Some of these solutions can be 1/2 the price of a top loader.

    ------------------------------
    Luigi
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    Clean 2019: June 20-23 - New Orleans


  • 5.  RE: Apartment Laundry Room

    Posted 6 days ago

    Luigi,

     

    Yes, just like every other newbie laundromat owner out there I plan to be the KING of absentee laundromat owners. Yes I will BUILD and they will come throwing quarters, dollar bills and the occasional $2 bill as well.  Geez give me a break.

    I plan to use Speed Queen products.

     

    SWNNC2SP115TW02 Speed Queen Top Load Washer, Quantum control, rear, 120/60/1, white, stainless basket, pump

     

    SDENCRGS173TW02 Speed Queen Rear Control Electric Dryer, Quantum Gold, White 120/240/60/

     

    SFNNCASP115TW01 Speed Queen Horizon FLW, front control, Quantum control, coin drop, pump drn, White 120/60/

     

    SDENCAGS173TW01 Speed Queen Front Control Electric Dryer, Quantum Gold, White, 120/240/60/

     

    I will be using Speed Queen Quantum Gold Control

     

    Thank you for your advice. Luigi, can I ask a favor from you?  Please, please, I beg you to never respond to any of my questions posted on here. Do we have a deal?

     

    I will say this, I did learn something from you today. But again, please stay away!

     

     

     




    Clean 2019: June 20-23 - New Orleans


  • 6.  RE: Apartment Laundry Room

    Posted 5 days ago
    I can see where your dist is coming from. First off, a system like Fascard or spyderwash would be a different set up than a laundry. They do cost 500 a machine and use a wireless setup to the router. Don't know if that would work on four floors. Plus there is additional cost for the system setup. You probably would want to look at something like payrange. Luigi might have been a little harsh, but is not far off from the truth. You don't say how many units per floor but one washer per floor is not going to work well. College kids tend to let laundry pile up and are not going to wait for one machine. Also if you are not putting a change machine, why would you use DC. Kids are not going to have those readily available but they can access quarters.

    ------------------------------
    Chris Mirisciotta
    Canon Coin Laundry
    Canonsburg PA
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    Clean 2019: June 20-23 - New Orleans


  • 7.  RE: Apartment Laundry Room

    Posted 5 days ago
    Edited by Joe Copeland 5 days ago
    Hi Roy,

    Credit card readers on machines can get very complicated very fast.  They are also expensive.  My SpyderWash system costs $600 per machine for just the hardware.  I would never install this in an unattended location.  Too much at risk for vandals.

    The reason your distributor probably didn't do into dept on card capabilities is because it is complex and expensive.  There are many makes and models out there.  Also it doesn't make sense to install card readers in apartment laundries.

    It sounds like you intend to use the dorm's internet connection.  That is a bad idea.  Unless you are in control of the internet, you will find your signals blocked by firewalls and routers.  College internet also requires authentication to log in to the network.  It's not open like your router at home.


    I recommend the Pay Range system. It's cheap and easy to install.  It's small enough to store inside the security box of Speed Queens.  I'm in the process of buying 2 of them right now to test out how they will work with a potential apartment route I may secure.  The beauty of Pay Range is that you use the Internet Connection of the customers cell phone.  No need to worry about configuring the machines to the building's internet.

    Best wishes,

    ------------------------------
    Joe Copeland
    Store Owner
    Happy Bubbles Laundromat
    North Hollywood, CA
    www.BubblesCoin.com
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    Clean 2019: June 20-23 - New Orleans


  • 8.  RE: Apartment Laundry Room

    Posted 5 days ago
    Joe, I am going with Payrange.

    Thank you

    ------------------------------
    ROY JACOBS
    ROY JACOBS Person
    Rolla MO
    ------------------------------

    Clean 2019: June 20-23 - New Orleans


  • 9.  RE: Apartment Laundry Room

    Posted 5 days ago
    Chris,
    I have done some more research and yes it is going to cost me $500 per machine, + 2.85%, + $.15 per swipe and $19.99 per month( If I recall correctly,) plus a separate internet connection per floor at a cost of $40 each time four floors.

    I am looking at Payrange, there fees are, $179.00 per machine, 5.25% per sale. Payrange runs from Sun-Sun, On Monday I get a sales report, then a day or so later I get paid. According to Payrange you do not get funds deposited into your account on a daily basis.

    There will be approximately 20 students living on each floor. At first I will only have one washer and one dryer on each floor. The laundry rooms will be set up to have two washers and two dryers. If the numbers are high enough and the students ask for more machines I will add more machines.

    When I say DC I meant to say D/C as in debit cards, not dollar coins


    51 Residents at 2 loads per week
    50x 2 loads per week=100 loads per week
    100 loads /7 days=14.28 loads per day
    14.28 loads per day/4 machines
    =3.57 TPD
    3.57x 4 machines x 30days
    Wash $963.00
    Dryer $ 674.00
    Vending $50.00
    Total $1687.00

    Example
    20 Pounds
    4 pairs of Jeans
    2 button-down shirts
    2 pairs of shorts
    6 t-shirts
    9 pairs of underwear
    2 towels
    8 pairs of socks





    I can see where your dist is coming from. First off, a system like Fascard or spyderwash would be a different set up than a laundry. They do cost 500 a machine and use a wireless setup to the router. Don't know if that would work on four floors. Plus there is additional cost for the system setup. You probably would want to look at something like payrange. Luigi might have been a little harsh, but is not far off from the truth. You don't say how many units per floor but one washer per floor is not going to work well. College kids tend to let laundry pile up and are not going to wait for one machine. Also if you are not putting a change machine, why would you use DC. Kids are not going to have those readily available but they can access quarters.


    ------------------------------
    ROY JACOBS
    ROY JACOBS Person
    Rolla MO
    ------------------------------

    Clean 2019: June 20-23 - New Orleans