A Recession Proof Business
Vended laundries are often buffered from fluctuations in the economy because clean clothes, like food, water and shelter, are a basic human need. When the economy is slow, there is often a greater need for self-service laundries because ownership of washers and dryers decreases. Moreover, it’s often less expensive to launder clothes at a vended laundry than it is to do them at home!
Investment Growth
The homeownership rate in Manitoba is 68 percent. That means renters occupy 32 percent of the province’s 13 million households. Since renters have historically been major contributors to vended laundries, the outlook for vended laundries is bright. Because today’s vended laundries often provide multiple services, such as full-service wash/dry/fold and drop-off dry cleaning, they also cater to homeowners – strengthening their business position.
Locating Your Store
Store location is key to the success of your store. That's why it's critical to locate your store in a demographically appropriate area. There are many factors to consider, including traffic density, population, competition, availability of utilities, store visibility and even parking. At Westbrook, we evaluate potential locations, provide demographic studies and develop cost analyses to ensure they hold merit before you invest!
Management
Vended laundries can make excellent business investments. The typical store operates on a cash-in-advance basis with little inventory; thereby eliminating risks such as a control shrinkage, theft or spoilage. Plus, a card or coin laundry is an owner-controlled business, creating a great degree of management control.
Resale Value
Vended laundries normally sell for three to seven times their net earnings with average historic returns exceeding 40 percent, according to the Coin Laundry Association (CLA), a non-profit, coin laundry trade association. Today’s energy-efficient laundry equipment and ancillary products help improve profits for higher resale value.
