kai1836 Posted July 17, 2010 Share Posted July 17, 2010 Anyone out there run one of these? I think the price could be a little high....other than that though it looks like a good deal. Link to comment Share on other sites More sharing options...
kai1836 Posted July 17, 2010 Author Share Posted July 17, 2010 They seem to make money from what I've seen so far. I was sort of startled by the lock on the change machine though. Will photograph and post here as it is quite impressive. Link to comment Share on other sites More sharing options...
dogcow Posted July 19, 2010 Share Posted July 19, 2010 how are you verifying the revenue? Link to comment Share on other sites More sharing options...
kai1836 Posted July 20, 2010 Author Share Posted July 20, 2010 I've requested copies of tax returns and utility bills. Each location is organized as its own entity so it shouldn't be too complicated. Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2010 Share Posted July 20, 2010 i guess the taxes would work as a baseline because who would report more than they earn but what use are the utility bills? Link to comment Share on other sites More sharing options...
NinnJinn Posted July 20, 2010 Share Posted July 20, 2010 To figure how much of a potential profit there is to be made. With a Laundromat, you light bill is going to be very costly. $3,000 a month sounds really good right? Well, what if your electric bill is $2800 or $2900? that only leaves 1-200 bucks to take care of everything else. Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2010 Share Posted July 20, 2010 To figure how much of a potential profit there is to be made. With a Laundromat, you light bill is going to be very costly. $3,000 a month sounds really good right? Well, what if your electric bill is $2800 or $2900? that only leaves 1-200 bucks to take care of everything else. no i asked how can you verify the revenue based on the utility bills that has nothing to do with margins what i mean to say is, if you want to figure out the margins well you can look up the specs on the machines and im sure they tell you how much water and electric they use and you can figure your margins out that way (at least thats what i'd do) but my suspicion is you cant reverse engineer the revenue by looking at a utility bill because how could you tell if the owner wasnt just running the machines empty for months or leaving an open fridge plugged in the back room or something. Link to comment Share on other sites More sharing options...
G-Vending Posted July 20, 2010 Share Posted July 20, 2010 I owned a laundry mat at one time made a ton of money Your gas and water will be a LOT more than light bill Link to comment Share on other sites More sharing options...
NinnJinn Posted July 20, 2010 Share Posted July 20, 2010 OHHH OK! I see what you are saying. Link to comment Share on other sites More sharing options...
kai1836 Posted July 20, 2010 Author Share Posted July 20, 2010 Why would the owner run the machines empty? It would only cost him money.......and while the lights may be old......the money in utilities will come from water and the power the machines use. Further forget the specs on the machines, the IRS has a formula they use to audit these things if you plug his numbers into that you should get a somewhat reasonable idea of what's going on. Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2010 Share Posted July 20, 2010 Why would the owner run the machines empty? It would only cost him money.......and while the lights may be old......the money in utilities will come from water and the power the machines use. Further forget the specs on the machines, the IRS has a formula they use to audit these things if you plug his numbers into that you should get a somewhat reasonable idea of what's going on. hmm thats interesting about the IRS formula i guess maybe washing machines all use some relatively standard amout of electric /water as far as running the machines empty, i'm assuming the gross revenue was used to come up with the price of the business, if i was an unscrupulous owner working in an all cash business and i would just run the machines empty for several months before putting the business on the market. would it cost me money? yes, but i'd recoup it from the unsuspecting buyer anyway Link to comment Share on other sites More sharing options...
agrantha Posted July 20, 2010 Share Posted July 20, 2010 I owned a laundry mat at one time made a ton of money Your gas and water will be a LOT more than light bill G-Vending Why did you get out of the laundry mat business? As most of you know, I want to own one when I grow up. Thanks Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2010 Share Posted July 20, 2010 So you would run up the utility bills to show their wasnt much profit?....I dont understand your thought process. Or would you be trying to show it is doing alot of business? i am saying if you wanted to increase your gross revenue figure artifically and the only way to verify it is by looking at the utility bills thanyou can just push those up by running the machines empty or other things i would imagine if the tax returns match the utility bills pretty closely then its probably trustable because not many people would pay more tax than they absolutely had to. Link to comment Share on other sites More sharing options...
G-Vending Posted July 20, 2010 Share Posted July 20, 2010 G-Vending Why did you get out of the laundry mat business? As most of you know, I want to own one when I grow up. Thanks The building my laundry was in was sold to a a$$hole and he forced me out of business.. There would have been no way I would have sold it I made a killing there,,Also did $125 week in soda and snacks Link to comment Share on other sites More sharing options...
dogcow Posted July 20, 2010 Share Posted July 20, 2010 The building my laundry was in was sold to a a$$hole and he forced me out of business.. There would have been no way I would have sold it I made a killing there,,Also did $125 week in soda and snacks was yours attended or unattended? Link to comment Share on other sites More sharing options...
mizugori Posted July 20, 2010 Share Posted July 20, 2010 have you ever owned another one since? If not., why not? This is something I have thought about doing, in addition to many other things. Link to comment Share on other sites More sharing options...
spdydre Posted July 27, 2010 Share Posted July 27, 2010 this is my next step also hopefully before next summer I want to own a small one. Link to comment Share on other sites More sharing options...
Jax Snacks Posted July 27, 2010 Share Posted July 27, 2010 What about maintaining the equipment? Who will fix them? Are the parts expensive? What is the life span of the equipment? Will it need to be replaced soon? If so, what is the equipment costs for brand new? What about the landlord? What are the lease terms? Landlords can be real pricks and can destroy a business. I have heard so many horror stories about landlords from my own accounts (especially the restaurant owners) that I would never want to own a business unless I owned the building as well. Do lots of homework on this one and if you rent watch out for the fine print on those leases. Link to comment Share on other sites More sharing options...
lurtsman Posted August 16, 2010 Share Posted August 16, 2010 The building my laundry was in was sold to a a$$hole and he forced me out of business.. There would have been no way I would have sold it I made a killing there,,Also did $125 week in soda and snacks I'd love to learn more about this. I'd be very hesitant to buy the business without the rights to the land under it. Link to comment Share on other sites More sharing options...
Jax Snacks Posted August 16, 2010 Share Posted August 16, 2010 I'd love to learn more about this. I'd be very hesitant to buy the business without the rights to the land under it. Three golden rules for tenants. Landlords are Pricks! Landlords are Pricks! Landlords are Pricks! Link to comment Share on other sites More sharing options...
agrantha Posted August 16, 2010 Share Posted August 16, 2010 Yes, Jax I would probably want to own the land and the building of the laundermat. Link to comment Share on other sites More sharing options...
Phil Posted May 23, 2011 Share Posted May 23, 2011 Good points. I think i will look into this Link to comment Share on other sites More sharing options...
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