QuickSTART™ Lesson #5 “Finding the Perfect Location for a ...

QuickSTARTTM Lesson #5

"Finding the Perfect Location for a Laundromat"

Hey laundrepreneur. It's me again, and here's the thing.

I've got to get something off my chest right out of the gate...

...there may not be a "perfect" laundromat location.

*insert sound of sad trumpet* But before you send an angry mob after me, let me say something.

You can still shoot for perfection, I just don't want you to waste months and months chasing it.

Because with laundromat locations, "good enough" is good enough.

And whether you're wanting to buy existing or build new, scouting locations is pretty much the same for either option.

So just what should you be looking for when it comes to finding that ideal location? Let's jump right in.

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Population ? Higher-density, low-to-medium income areas with plenty of

multi-family apartment buildings nearby.

As a general rule of thumb, a population density of 10,000 people in a one mile radius is decent, 20,000 people is considered very good, while a population density of anything 35,000 or greater is excellent.

Optimally, the population will consist of a minimum of 25% renters, with anything over 50% being excellent. Older, blue-collar neighborhoods are generally good candidates.

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Parking ? Your ideal location will have plenty of parking. Watch out for

surrounding businesses that may take up parking on an extended basis. You don't want to be battling with the bowling alley next door for a handful of parking spots.

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Exposure ? The best locations are easy to see from the street, and have an

exposed front. In contrast, a store buried in an inside corner or the back side of a strip mall is not as preferred.

And if there is street-side signage available, even better.

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Access ? Check that customers don't have any significant physical barriers to

your store. Review a map of the area and check for railroads, freeways, rivers and bridges. These reduce the effectiveness of your marketing and block direct access to your store.

Customers should also be able to access your location from either travel direction, without having to make a U-turn. You'd be surprised how even that minor detail can affect business.

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Competition ? In order to be sure you can get a decent percent of the local

business, you want no more than two competitors within a 1-mile radius of your target store.

Visit the laundromats in your target area as well as do research into nearby apartment complexes to get a better idea of prices, what amenities are offered, and the condition of the laundries.

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Proximity to Your Home ? If you plan on handling customer issues yourself,

you'll want your laundromat to be no more than 20 minutes away from home, at the most. Anything more than that, and you'll have unhappy customers who have to wait for you to arrive to rescue their laundry from a malfunctioning machine.

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QuickSTARTTM Lesson #5 (continued)

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Surrounding Businesses ? locations within major shopping centers that

contain one or more anchor stores such as grocery and pharmacy generally work well.

Smaller shopping centers with food and service-type businesses like car washes, minimarkets and fast-food restaurants are also considered good locations.

But with all of this information I'm giving you, there is one thing I want to mention right up front...

If there's an upscale, modern laundromat with plenty of machines and amenities smack dab in the middle of your desired location, it is

best to move on.

Don't "pick a fight" with an established 5-star location, the odds are not in your favor.

On the other hand...if you find an area where there are several laundries but they are rundown and neglected, it might be a good opportunity to stand out.

You could consider either building a new store in the area or trying to purchase one of the existing stores and rehab it so that it shines again.

And...if you can provide a service that none of the stores in the proximity offer ? wash-dry-fold, for example, or even just an amenity like free coffee or wireless internet ? you're that much more likely to be successful.

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QuickSTARTTM Lesson #5 (continued)

So...Are the Guidelines Firm? Or Flexible?

At this point I've shared with you some guidelines to keep in mind when looking for an ideal laundromat location. But even with all of this information coming at you from left and right, there is still one more critical piece you need to think about before starting your search. You need to think about what type of environment you will be operating in. We've had many people over the years ask us... "What if I want to own a laundry in an area that's not as populated? The guidelines don't make sense." So here's the deal. When we talk about the general guidelines that make for a great laundromat location, it doesn't mean they are firm and inflexible. Maybe you want to be in a densely populated busy urban center. Or you want to be "the only game in town" in a thinly populated rural market. That's okay. It just means approaching the guidelines a little differently depending on where you plan to operate. So let's briefly talk about the three types of geographical areas; urban, suburban and rural. A laundry can do well in any of these three areas, but a laundry that can thrive in a rural area may look much different from one that does well in an urban setting.

URBAN

An urban area is densely populated. Real estate is at a premium, so buildings tend to sprawl upwards and not sideways. You'll often find multi-story apartment buildings, mixed-use buildings with commercial businesses on the ground floor and residences above, limited parking spaces, and a younger demographic.

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QuickSTARTTM Lesson #5 (continued)

Rents are usually higher, spaces smaller, and this means commanding higher prices. However, this younger demographic is willing to pay a higher premium to do laundry in a place they feel is safe, modern and close to where they live.

As to our earlier guidelines, for an urban area, you will tighten the radius down to roughly 1/2 mile to 1-mile.

And while population is more dense is these areas, usually so is the competition. Like we mentioned earlier, if there is a newer, modern laundry already operating in your target neighborhood, then move on. It's not worth the fight.

However, if you find an urban area where the local laundromat options are run down and neglected, you may have a good location on your hands.

Because these urban areas swing more towards a younger demographic, perhaps college-aged or young professionals, their expectations are a bit unique and cannot be overlooked when planning your store.

? This demographic will be looking for a clean and modern laundry, using the latest technology, with a trendy brand and name, and current music (or television) playing in the background.

? They will expect amenities such as free Wi-Fi, charging stations for their devices and app-based or at least card-based payment options (Apple Pay, Google Wallet, Android Pay, Debit/Credit cards).

? It's also important to note that in these urban areas where parking is at a premium, there may only be a handful of parking spaces on the street in front of the laundry. But don't rule out an urban location just because parking is limited. It's just one of those items where the guidelines must be altered a bit because you're dealing with an urban setting.

In fact, it's not unusual for these urban customers to walk to and from the laundromat with their laundry in a backpack or they may even use a bicycle. So you may want to consider providing a bicycle rack at urban locations, for convenience and security.

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