Heard a stat…

[Christopher Thomas]

the other day that the majority of new laundromats fail in the first 3 years due to equipment finance costs. Sounds like the manufacturer then buys that machines back for pennies on the dollar and resells the whole laundromat with machines to a new owner. Great deal if you’re the second owner or manufacturer, but very scary if you’re the first. Has anyone here had similar experiences with new or used machines? i.e., is margin that much better on used machines? What if you need to upgrade your machines after a few years? Does the same thought process apply?

Thanks!!
Chris

[Matt]

My understanding is there is more to it then that.. I hear a lot of people don’t know what they should be paying and they over pay. There are a lot of other factors. But I don’t doubt the story, just the other factors around it. (Like buying a car, some over pay and some don’t more depends)

[Juan]

Agree with Matt the stat is likely higher than but in addition to that is a general mus-understanding of the business, the operations, the customers, and yes the equipment. Lets be honest here generally speaking, dealers will sell you whatever is gong to benefit them. There several different brands and choices.

Using the car analogy, there are decent vehicles, there are excellent vehicles, and there are vehicles that folks will shy away from. Cost of machines should not always be your deciding factor. Ease of use, reliability, dealer support are all part of the decision making process. This is especially true and important depending on your business model. Are you going to be fully attended, partially attended or unattended? Technically, all of that matters.

Reliability is of the upmost important to me for my business model as i work full time, travel alot, am in meetings, or crawling around vehicles evaluating issues. i don’t have time to

[Author]

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