Laundromat Resource › Forums › Laundromats › Laundromat Newbie – NJ

last updated by Jeffrey Sanchez 5 years, 9 months ago
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    • June 3, 2020 at 7:59 am #1709
      Jeffrey Sanchez
      Participant

        So glad to be a part of this forum. I absolutely love the podcast!

        I’m a newbie on the search for a store to take over. Basically, I’m not looking to buy an existing business, but looking to take over an existing lease of a failed or failing store.

        It’s been going slowly, but made some progress on a few stores in my area. In fact, 1 I’m very excited about since the property manager acknowledged the issues with the current operator and waiting to hear back. Wish me luck!

        My question is this:

        If I do take over this store, there’s no question new machines are needed. There’s too many that are not working (but enough working where I can keep it open until I get new machines) Is it best to get brand new machines or is used equipment the way to go?

        I’ve spoke to several operators and they all tell me there’s an abundance of used machines out there just collecting dust in warehouses out there?

        Also, do equipment distributors also perform the installations? Or is that up to me to hire someone to do it?

        Thoughts?

      • June 4, 2020 at 1:28 pm #1725
        Jordan Berry
        Keymaster

          Hey congrats! I hope one of those stores works out for you!

          On the new vs. used question, I’ll give you my thoughts but just know that different people feel differently about this issue. I don’t think there’s a right or wrong.

          Personally, however, I wouldn’t buy used machines. It can be very tempting to buy used, especially when you’re trying to get into the business on a budget. Here are a couple of reasons I would think twice about it.

          1. It’s really hard to tell what kind of shape the equipment is in when they’re sitting in the warehouse. The equipment is being sold “used” for a reason. Generally, it’s because a poor operator couldn’t keep their laundromat in business and had to return the equipment, or the equipment was old and the operator replaced it with new equipment. In either case, the condition of the equipment is going to be questionable at best.

          2. The usable life is much less than with new equipment. They’re obviously not going to last as long because they’ve been in service for some years already.

          3. Financing can be more difficult. It’s much easier to finance new equipment (and let the business pay for the equipment) than used equipment.

          4. Customers love new machines. It will be much more attractive to potential customers to come to a new laundromat with new machines than to a new laundromat with used machines.

          5. New machines command a higher vend price. You can charge more per wash/dry with new machines than with used machines.

          Those are a few of my thoughts. What do you think?

          In terms of installation, typically distributors work with installers so they already have that connection. You don’t have to use their installers, but if you don’t hae anyone else to do the installations the distributor will. Hope that helps!

        • June 4, 2020 at 3:40 pm #1728
          Jeffrey Sanchez
          Participant

            Thank you! I had the same thoughts myself actually. I would much rather new equipment because just like you said, customers love the bright & shiny new machines.

            I guess I shouldn’t hide the fact that I’m a student of Danny D’Angelo. I’m sure you’ve heard of him. In fact, I hired him to negotiate a lease on my behalf. The process has been slow but effective most likely due to the pandemic. We’re finally starting to get through to people, hence the prospective 2 stores I have. I’m putting in all the ground work I need to and then some. Danny’s doing the part I know I could not do on my own and that’s negotiating a lease and twisting that landlord’s arm 🙂

            I know that I will end up with a store especially with Danny on my side. When that happens I’d love to be a guest on your show! I have an interesting story to tell on how I began with my laundromat journey.

            Thanks again and keep up the good work with the podcast. 🙂

          • June 8, 2020 at 10:54 pm #1734
            Jordan Berry
            Keymaster

              Hey that’s awesome that you’re making progress! And smart to hire out your weakness and focus on your strength. No shame in that! Keep me posted on your progress!

            • June 9, 2020 at 8:28 pm #1744
              Jeffrey Sanchez
              Participant

                Sure will Jordan and thanks for the shout out on the most recent episode!

              • June 14, 2020 at 12:02 am #1780
                AnneMarie Gillan
                Participant

                  Oh this is interesting! I don’t really have anything to add but I want to follow it in case more people chime in! thanks for letting me listen in on this conversation guys!

                • June 16, 2020 at 3:24 pm #1814
                  Jeffrey Sanchez
                  Participant

                    Welcome AnneMarie 🙂

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