About 35,000 laundromats operate in the U.S. today, making the business an essential point in the country’s economic landscape. Given that the market generates over $5 billion in annual total revenue, it’s easy to see why investors and entrepreneurs are putting their money in laundromats. If you’re thinking about buying one, though, here are a few questions to ask.
Does It Have a Good Location?
Pick a business in populated urban areas for continuous foot traffic. Sites with a high concentration of residents or renters will provide your laundry facilities with a steady stream of customers. Check out your competition, too, before you make a move to buy the business. If there’s too much competition in the area, that will make it harder for you to turn a profit. Look elsewhere.
When was the Facility Last Updated?
Don’t buy a laundromat without checking the equipment and shop to see if it’s been upgraded to recent laundry technology. Are there any machines with credit card payment capabilities? What equipment will you need to run the business?
Are the Machines Up-to-Date?
Your laundromat equipment plays an important role in whether you get customers or not. If yours is too outdated, that could turn prospective customers off. Shop for better commercial laundry equipment to get customers to your door. Also, some other laundromats lease their equipment. You’ll need to factor that into your buying decision, too.
Should You Buy or Lease Equipment?
Buying equipment is ideal if you’ve got the budget. However, leasing equipment will also work if you’re trying out several models. Go over the terms and conditions before you choose any equipment. Assess the potential pros and cons and work out if the terms align with your budget or not.
Where Do You Shop?
When it’s time to look around for purchasing a laundromat machine, choose a distributor that has been in the business for years. Check out the company’s offerings. Does it provide industrial laundry machines? What kind of reputation does it have? Does it offer financing options? What about environmentally-friendly options for reduced energy consumption and operating expenses? Ask us at AAdvantage Laundry Systems to find out.