The coin laundry business can be a lucrative one if you know how to make the right kinds of deals. Not only can you make money just by owning and operating a coin laundry business, you can make money flipping them.
We all need to wash our clothes, and most of the time we think very little about doing laundry (besides it being one more chore). Home washing machines are common with single-family homes. However, millions of North American apartment and dormitory dwellers must rely on coin laundromats for this task.
It’s estimated that 35- 40 percent of US households are renter-occupied. These estimates are based on census reports and other official US statistics.
A significant number of these rented dwellings do not have in-house washing machines. The tenants must go to a coin laundromat in order to wash clothing.
It’s reasonable to conclude that facilities placed in high density, urban areas will generate significant busy. This is especially true of neighborhoods where a majority of dwellings are rentals (like apartments).
In fact, the Coin Laundry Association reports that the number of coin laundry business establishments has grown steadily over the past 40 years. They’ve grown even in spite of the recent recession. (No matter what the economy is like, people still need to do laundry.)
With potential to make a profit owning and operating a coin laundry business comes the potential to sell coin laundromats for a profit. According to the Coin Laundry Association, coin laundromats sell for between three and seven times their net cash flow.
The key to being able to make money buying and selling coin Laundromats is to buy low and sell high. The secret is figuring out how to buy a coin laundry business for less than its value and then selling it at the top end of its net cash flow.
Some of the secrets to buying low and selling high include:
* Buying fixer-uppers and spending a little bit on cosmetic improvements, then selling for more than you paid.
* Buying an existing facility and upgrading its machines to high efficiency ones. This can save you thousands on your annual electric bill. Plus, high efficiency machines are more appealing to potential buyers.
* Opening up brand new facilities in high density neighborhoods where no coin laundry business currently exists.
* Opening a new facility in a neighborhood under construction.
* Create turn-key facilities or start your own coin laundromat franchise.
These are just a few techniques to making money buying and selling coin laundromats. Industry insiders have lots of other tips and secrets that can help a buyer make money operating and re-selling a coin laundry business.
All predictions indicate that the population will only continue to grow. Along with the population growth will be an increasing need for rental housing. As we’ve already noted, rental housing areas are prime locations for a coin laundry business. The potential for growth is strong because there will always be a need for this kind of service.