You will find there's lot to be considered when it comes to locating a coin operated laundromat business or buying an existing operation. Several concerns is the location. The right location will help you to get the volume of customers that you need to sustain your business. On the other hand, a poor setting could mean that your coin laundry is doomed right from the beginning. Let's take a look at how you should go about in need of and assessing the best laundromat locations in your area and beyond.
Are Prominent Locations Best?
Many people will explain that you will do best in a prominent, 'high profile' or busy location and this is a logical assumption. That reasoning goes that you should try to locate your laundromat on a corner, on a main road, in a busy component of town or next to other businesses that are busy. This is generally the best approach. However , the problem with these prime locations is that they also come with an expensive price tag in terms of the leasing terms.
On the other hand, you can also rent an area for your laundromat that is not in such a great location and thus end up paying a much lower monthly rent. As long as you are generally within a convenient distance from your market then it may not matter if your laundry is in a back streets or down an alley. Under these circumstances you would need to compensate for your lack of exposure by working at some promotions to try and make the market aware of your presence. You would also need to put extra emphasis on customer service together with retention.
These are two very different approaches and you need to consider many factors before you decide which approach is perfect for you.
Customer Profiling and Area Demographics
Before making a decision on location you should do a little research and discover out what kind of customers your laundromat will likely be serving. If you are serving a transient population such as backpackers and holiday campers, then it could pay to be in a spot where they can easily find you. On the other hand, if you are providing a population of permanent residents then you could consider a location that is not so obvious. If you have regulars you can find the money for to have an inferior location, but if your customer base is changing all the time then you may be better off in an Some sort of grade spot.
Laundromats are one business model that can thrive in areas where a large percentage of the people are unemployed or on low incomes. Many households in these areas are often unable to afford some sort of washing machine and dryer yet still see doing laundry as a necessity.
A laundromat will generally do far better in an urbanized area where people typically own smaller sized apartments or are renting. Your chances of financial success also increase if the average household size in the area is high. Large families with lots of children will not surprisingly give you more business than unmarried singles or couples with no kids.
Suburban laundromats are not as well-known as suburban households are more likely to have washing machines and these areas are more spread out. You can still do well with middle class and wealthy areas although you will have to offer more up market services.
Another great sector to target is students. If you are considering locating close to a university or other educational institutions then make certain you find out what options students currently have available for washing their clothes.
Expect to serve people mostly within a one distance radius in a built up area and slightly further afield in a suburban setting. Having a large number of apartments inside walking distance is ideal. Focus on understanding the market within these immediate areas the most. You should be able to find a demographic report about an area that has been composed from US census data.
Future Trends
As well as taking a superior mental snap shot of the current market demographics of an area you also need to consider the future. Are there any trends that will result in growth or contraction of your market over the coming years?
The Competition
After you have a good understanding of the people within a area, the next criteria for determining a great location is the level of competition. If there are competitors then you ought to assess how successful their businesses are as the pie may be big enough for both of you to get a slice. Take into account that some apartment complexes and universities have washing machine facilities on-site so you have to make sure that you are aware of all of the solutions that consumers have in the area.
Depending on how close your location is to competitors, you may be able to steal away a number their customers as well as get new ones. Customers will usually consider changing laundromats if a new one is far more convenient in terms of distance or appears to offer a better service. Check out your competition first so that you can find out what kind of experience clients are having there.
Surrounding Businesses
It is great if you can find a location that has other successful businesses nearby. Near by businesses can help you out by giving customers a reason to use your laundromat rather than others in the area. If a customer goes a nearby cafe, fast food restaurant or hair salon then chances are it will be convenient for them to also use ones laundromat. People like to get everything done in one spot without having to make trips all over town.
Parking A lot
Should you consider parking when it comes to choosing laundromat locations? Well again you really have to consider the demographics of your usual customer. While parking is certainly a bonus it may not be essential for an urban laundromat. Remember that those applying laundromats on a regular basis are usually members of low income households. If families cannot afford a washing machine in that case it is likely that they are also unable to afford a car. Still, you would need to be sure of an areas potential before you would probably consider opening up in a spot where there were no parking options at all.
Safety Considerations
It is important that your laundromat is in a reasonably safe location. Customers have to feel that they are safe using your facilities during your opening a long time. You also have to know that you are not in danger when you come to collect cash from your machines or perform other direction tasks.
Mapping it Out
A great way to put your research into a form that is easy to understand set out your research findings for a map. Mark out neighborhoods and make notes on household demographics in those areas. Pinpoint the positioning of all laundromats already doing business in the area. You can then check out some locations that seem ideal in terms of being near to the market and an optimal distance from competitors.