How to Buy a Laundromat (and avoid pitfalls)

Finding an Opportunity When Buying a Laundromat

James found his laundromat in an interesting way – not through typical listings. “I was driving by this laundry every day… I sent out a letter in the mail address to the laundromat… attention owner.” He even hand-wrote the address on the envelope. Matt Simmons thought that personal touch likely helped it get noticed. Sure enough, the owner called him back after a month or two. Sometimes, reaching out directly can uncover an off-market laundromat opportunity when you’re looking into **buying a laundromat**.

Due Diligence When Buying a Laundromat

Never skip the due diligence phase! James worked with Andy Cunningham as a mentor. “I wouldn’t do it alone unless you got experience… you can get burnt and you can spend way more than you need to,” James advised. He made sure to get the financial records (P&Ls) and utility bills. He also suggested having a plumber inspect the sewer lines with a camera – catching potential big-ticket repairs early. Andy backed this up, saying first-time laundromat buyers especially need good advice to avoid common mistakes during the process of **buying a laundromat**.

Working with a Laundromat Broker (like Andy Cunningham)

Andy Cunningham, who’s been in the laundromat world for over 40 years, joined the discussion. He helps people as both a broker and a consultant, guiding them through the often confusing process of buying or selling a laundromat. He worked closely with James and his wife, Rosalia, helping them check out different laundromats and navigate challenges with the one they ultimately purchased. You can find Andy at Laundromats Unfiltered.

Transforming a “ZombieMat” After Buying Your Laundromat

The laundromat James bought needed some serious help; Andy called it a “borderline zombie mat.” But James wasn’t deterred. “It’s just not in me… There’s no way I could leave a borderline zombie mat in its current state,” he explained. His story shows that even neglected laundromats can be great opportunities if you’re prepared to invest the time and money to improve them after **buying a laundromat**.

Evaluating Laundromat Opportunities Prior to Buying

Andy described how he evaluates a potential laundromat purchase. It’s not just about the equipment inside. He starts by looking at the surrounding neighborhood, checking out the nearby competition, and even looking at how easy it is to get into the shopping center and whether there’s enough parking. This evaluation is crucial before **buying a laundromat**.

Getting into the Laundry Business When Buying a Laundromat

Andy’s advice for anyone new to the business? Get help. “You’re only a first-time buyer once,” he pointed out. Spending money on a knowledgeable broker or consultant for that first laundromat purchase can prevent costly errors down the road. He called it needing a “flashlight in these dark tunnels” when **buying a laundromat** for the first time.

Laundromat Competitive Analysis Before Buying

You have to know who you’re up against. Andy practices what he preaches: “I will drive at least a half a mile in each direction and look at all my competitors.” He recommends that potential buyers actually go use the competing laundromats. Do a load of laundry, see what their machines are like, check their prices, notice how clean (or not clean) the place is. Understanding the local laundromat market is critical when **buying a laundromat**.

Laundromat Location Analysis for Potential Buying

The physical location matters a lot. Andy looks at practical things: Is the shopping center easy to drive into and out of? Are there traffic lights or crosswalks? How’s the parking situation for laundromat customers? He also checks out the other businesses nearby. “Restaurants eat up parking just like you do,” he warned. Sharing parking with busy neighbors can affect your customers after **buying a laundromat**.

Laundromat Capacity and Equipment Mix When Buying

How do you tell if a laundromat is truly busy? Andy shared a tip: look at the dryers. “If every dryer is being used… you’re at your max.” You simply can’t serve more customers at that moment. He also studies the mix of machines – the ratio of washer capacity to dryer capacity (by poundage). Following Andy’s advice, James actually took out a row of machines to add more folding tables, which improved the laundromat’s layout after **buying the laundromat**.

Understanding Financials When Buying a Laundromat

Don’t just accept the numbers provided. Andy dives into the utility bills, comparing water, gas, and electricity usage month by month against the claimed income. “If there’s a spike in the income, there should be a spike in the utilities or vice versa.” If the numbers don’t match up, investigate. Was there a hidden water leak, or is something else going on? This check is vital when **buying a laundromat**.

Don’t Get Fooled by Sellers When Buying

Matt Simmons told a cautionary tale about a client whose seller completely faked the numbers – adding extra quarters to the collections, running water to inflate past utility bills. If the buyer had insisted on seeing a full year’s worth of utility records, they might have spotted the fraud. Andy also mentioned helping James look at another laundromat where the seller was asking “a couple hundred thousand more than it was actually worth.” Always be skeptical and verify everything when **buying a laundromat**.

Prove It! Verifying Laundromat Income Before Buying

Verification is key. James stated it clearly: “The math doesn’t lie, and if you can’t prove it, you know you shouldn’t pay for it.” The value of a laundromat should be based on what it has actually earned in the past, not just promises about the future. “It’s what did it do today and all the days before today.” This proof is essential before committing to **buying a laundromat**.

 Adding Value Through Improvements After Buying

James brought his “borderline zombie mat” back to life with real improvements. “It’s been 2 years and we’ve done a ton to this place… redid our bathrooms and we redid all the folding tables and we got the floor done.” Making the laundromat cleaner, brighter, and more functional directly benefits customers after you finish **buying the laundromat**.

Why Caring Makes More Money After Buying a Laundromat

James is convinced that putting in the effort leads to better results. “By caring you actually make more money,” he said. Customers definitely notice. He mentioned a customer commenting, “This place is looking crisp.” Good experiences lead to positive online reviews and people telling their friends – great free marketing for your laundromat, especially important after **buying a laundromat** that needs work.

Making Incremental Improvements When Buying a Laundromat

You don’t need to do a massive, expensive renovation all at once after **buying a laundromat**. James mentioned he still has some 20-year-old machines, but they’re clean and working. “It just needed that TLC big time,” he said. He and Matt talked about replacing laundromat equipment in stages – maybe one row of washers or dryers at a time. This approach is less disruptive and easier on the budget than shutting down the whole store for a complete overhaul.

Focusing on Revenue Centers After Buying a Laundromat

Andy pointed out that James successfully added wash-dry-fold services, and “that took off for him.” Matt recommended focusing initial investments on things that directly bring in more money, like wash-and-fold or pickup and delivery. That extra cash flow can then help pay for bigger upgrades, like new commercial washers and dryers, making **buying a laundromat** more profitable.

It’s one thing to add services like wash-and-fold or pickup and delivery, but managing them efficiently is where the real challenge lies. James’s story highlights this perfectly. While Andy Cunningham noted that James’s wash-and-fold service “took off for him,” the podcast also mentioned a key factor: James doubled this revenue stream within just three months *after* implementing the Curbside Laundries software solution.

This wasn’t just a coincidence. Growing these value-added services requires robust organization – tracking orders, managing routes, communicating with customers, and handling payments smoothly. Without the right tools, operators can quickly get overwhelmed, limiting growth potential. Curbside Laundries’ software provides the necessary system to handle this complexity, turning a potentially chaotic operation into a streamlined, profitable revenue center. It’s the kind of operational efficiency that not only boosts the bottom line but also ensures a reliable service that truly gives customers back their valuable time.