Author: David Shulick

According to a CNN report, the commercial real estate (CRE) industry has finally hit a wall. Since the pandemic, some CRE properties are only 50% occupied, with office vacancies are at a record 13.1% high according to the National Association of Realtors.

At a time when the future of CRE seems uncertain, providing value by adapting to new consumer behaviors is integral for surviving the currently high interest rates in this credit-dependent industry.

A possible value proposition is offering a comprehensive list of services within the space. The appeal of convenience, the added foot traffic, and the sense of community can all go hand in hand in unlocking an environment profitable for business. David Shulick reviews how services like vended laundry can make a commercial property more successful.

Boosting Property Appeal Through Convenience

A way to set property apart from others is providing a diverse array of services at a single location. Although e-commerce now accounts for 15% of all retail and is slowly becoming the default way consumers shop, not everything is possible online.

When running errands, the convenience of letting a consumer do their laundry, stock up on groceries, and get a haircut all at the same location can be the deciding factor for a thriving commercial space.

Generating Multiple Streams of Revenue

Services that require minimal supervision, such as vended laundry, allow spaces to generate income almost passively. And by leveraging technology, the management of these facilities become even easier.

Remote monitoring and cashless payment systems can allow the owner or building manager to oversee the operation of the laundry facility without being physically present. The ease of use can also be appealing to consumers, particularly the younger, tech-savvy demographic.

While vended laundry is unlikely to cover the operational costs of an entire commercial space, it’s still a reliable source of cash flow that contributes to the bottom line.

Attracting Foot Traffic to Different Areas

For unused areas of the property, turning them into services that fulfill a basic need, like vended laundry, can generate income and increase foot traffic to the surrounding areas as well.

The foot traffic can range from students to travelers, to the occasional professional with a stained suit. This diverse mix of people are then exposed to the other businesses available within the space, allowing businesses to cross-pollinate each other, ultimately increasing overall profitability.

Creating a Shared Space for Community Interaction

Humans are creatures of habit, and this shared space can become an area for people to interact, connect, and build relationships while engaging in a routine task.

Aside from amenities and accessibility, the feeling of community and belongingness can also be a factor for happy tenants and a profitable commercial space.

Conclusion

Adding low-maintenance, self-sustaining services like vended laundry can be a financially rewarding investment for CRE. By anticipating the needs of the property’s tenants and the surrounding market, this addition can unlock success, profitability, and a thriving community by providing value that other spaces have overlooked.

According to the Coin Laundry Association, coin laundries are able to generate anywhere between $15,000 to $300,000 of cash flow in a year. The numbers are surprising for this unassuming sector, but they make sense–everyone needs to wash their clothes.

Coin laundries can be seen in practically every American neighborhood, but they perform best in areas with a high population of renters. With a recession-proof track record, vended laundry is an attractive opportunity for investors who want financial stability with operational simplicity.

In this article, David Shulick takes coin laundry businesses for a spin, enlightening potential investors on the benefits of clean clothes and tidy profits.

Hygiene is a Basic Need

There are many businesses with peaks and valleys depending on the season, or are significantly impacted by economic factors. However, like many basic human needs, the demand for clean clothes remains stable regardless of current economic circumstances.

In fact, laundry services could experience an uptick in usage during dire economic situations where more people are forced to rent and/or choose more affordable services in response to tightening budgets.

Predictable Cash Flow

Cash flow issues are the reason why 82% of small businesses fail. Meanwhile, a coin laundry is a pay-as-you-go operation, meaning monthly cash flow is easily predictable once enough time has passed to gather data.

The simplicity of the business model allows owners to strategize for success more effectively as compared to other business ventures. This simplicity extends itself to the operations side as well.

Simplicity of Operations

Aside from the knowledge of how to troubleshoot a malfunctioning washer or dryer, there’s minimal know-how required to get a coin laundry business running compared to other businesses.

Because a coin laundry requires minimal supervision, an owner can allocate their focus on growing other sources of income while at the location, or even invest in tools that allow them to monitor their business without being physically present.

Minimal Inventory or Employees Needed

There’s very little physical inventory needed in a coin laundry, and the few that it does require like detergent, fabric softener, and dryer sheets aren’t perishable. This streamlined inventory means lower operational costs with less risk of waste.

As coin laundries are self-service, the customers are the ones washing and drying their clothes. The self-service nature means there is minimal need to hire a lot of employees, and the extra help can quickly learn to manage the location with simple accounting and basic property and equipment maintenance.

Conclusion

For the savvy investor, clean clothes represent not just personal hygiene, but also a bright future of financial stability. By entering the world of coin laundries, aspiring business owners can build a recession-proof asset that can be passed down to the next generation.

As our cycle around the lucrative world of vended laundry comes to an end, one thing is clear: this is not the average commercial real estate investment. With the right location, machinery, and maintenance solutions, a coin laundry can be financially rewarding while only requiring minimal involvement and a bit of smart decision-making from the owner.

Vended laundry businesses, more commonly known as laundromats, are some of the most successful businesses in the United States.

Vended laundry franchises are plentiful; membership is offered by companies such as Eco Laundry Company, Speed Queen, and Zoom Express. Compared to private ownership, franchised laundromats come with a number of benefits: a higher rate of success, higher profitability, an easier startup process, and more advantages for customers are a few of the highlights.

Below, David Shulick discusses the opportunities and benefits of franchises in the vended laundry industry.

Franchise Opportunities in Vended Laundry

Nearly 20,000 laundromat businesses are operating in the US, and a large portion of them belong to franchises. The startup costs associated with vended laundry businesses are high, and there can be many barriers to entry. Luckily, there are plenty of laundromat franchises eager to expand their reach across the country. Three of the most popular franchises are:

1. Eco Laundry Company: This company prides itself on environmentally-sound business practices. It is also one of the more accessible franchises with its lower buy-in amount and liquid cash requirements.
2. Speed Queen: Speed Queen has fairly strict requirements for membership, but they offer a lot to the people who make the cut: an online management platform, payments via an app, and bonus services such as pickup and delivery.
3. Zoom Express: Zoom Express is another accessible franchise that specializes in time management; faster wash and dry times allow franchisees the opportunity to offer a unique service to their community.

No matter what type of laundromat business an individual has in mind, or what their net worth looks like, there is a franchise out there perfectly suited to their needs.

Benefits of Franchises Over Private Ownership

Vended laundry franchises are associated with several advantages over private ownership. Franchise-specific benefits do exist as well, but there are a few that are common to all.

Higher Rate of Success

Although laundromats in general have a very high rate of success, there is even more of a guarantee when the business belongs to a franchise. Networking opportunities, high-quality machines and products, and an intact consumer base all contribute to high rates of success with franchised laundromats.

Higher Profitability

A privately-owned vended laundromat will make, on average, $15,000-$100,00 each year. Laundry franchises, on the other hand, can make as much as $10,000-$40,000 each month. Since higher profitability will translate to better business security and more opportunities for growth, franchises are the clear winners here.

Easier Startup Process

Just like any other franchise industry, membership in a franchise streamlines the startup of a new business. Established marketing structures, supply chains, and well-tested equipment makes it a lot easier for new business owners to get their business up and running. Plus, there are plenty of experts available to answer questions or offer advice.

More Advantages for Customers

Many franchise locations offer unique benefits for their consumers that private owners just can’t offer. This can look like alternative payment methods (card or mobile), play areas for kids, pickup and delivery services, comfortable seating, and more.

Wrapping Up

The versatility of the vended laundry franchise market offers every individual the opportunity to get off to a great start in the industry. Given the long list of advantages and the incredibly high success rate, franchised laundromats are the best way forward.

On an annual basis, small businesses account for half of the economic activity in the United States. They are much more important than headlines would lead people to believe. But how do small businesses boost economic growth?

David Shulick says that unlike large corporations, small businesses need to outsource things like accounting, marketing, maintenance, and legal services. They primarily choose local businesses for this purpose, and this is the main way they contribute to local economic growth. Small businesses are also responsible for the majority of job creation and innovation across many industries, further stimulating growth in the economy.

Small Businesses Impact the Local Economy in Big Ways

Small businesses are an integral component of local economies, but their influences often go unnoticed by the general public and industry experts alike. However, small businesses actually contribute more to the economy than large corporations. Here’s how.

Outsourcing

Small business owners outsource many of their organization’s needs; they simply don’t have the internal structure to handle it all in-house. Services such as marketing, accounting, maintenance, and legal counsel are usually provided by other local businesses. Many of them may also be small businesses, and the shared benefits of the partnerships will improve the local economy for all.

Job Creation

Over the past 25 years, small businesses have been responsible for the creation of 12.7 million jobs; that’s 66% of all new jobs created during those years. After the coronavirus pandemic, small businesses alone were responsible for a 60% recovery rate from the 9.1 million jobs that were lost as a direct result of the pandemic.

As countries—and their economies—have rebounded in the wake of COVID-19, small businesses have become even more relevant than ever before. Many people turned to small business ownership as a source of income, and as they’ve grown, they have hired other individuals from their local community.

As small businesses earn more money and hire local individuals, those people will be able to contribute more significantly to the local community with their shopping habits.

Innovation

Two defining characteristics of small businesses are flexibility and an entrepreneurial spirit. These two traits allow for fresh perspectives, operational changes, and innovative thinking without too much financial investment or community backlash.

As a result, small businesses are drivers of innovation in their industry. In their startup phase, small businesses have the flexibility to try new things and see how they work out, a luxury that is not afforded to large corporations. When these innovative ideas pay off, it not only benefits the entrepreneur and their business but also the local economy through media awareness.

Final Thoughts

Although the importance of small businesses is underrepresented in the media and overlooked by business tycoons, small businesses are more impactful than large corporations when it comes to both economic fundamentals like job creation and revolutionary advancements in various sectors of industry. On a local and national level, small businesses contribute to the economy in big ways.

Amidst the hustle and bustle of everyday life, one often overlooked yet essential service silently supports our communities – vended laundry. However, just like all forms of technology and appliances around to make our lives a bit easier, vended laundry is evolving. David Shulick explains more on this innovative laundry concept below.

According to industry experts, the popularity of vended laundry hubs seem to indicate that it is the next big vended laundry modernization. Possible reasons for the popularity of laundry hubs may be the advanced technology used, the wide range of people it can serve, and the community partnering that it strengthens.

Below, the main reasons why laundry hubs could quite possibly be the newest vended laundry trend is discussed.

Vended Laundry Hub Trends

Vended laundry hubs have gained immense popularity and are considered the next step in the evolution of the traditional vended laundry service. There are three primary reasons behind their widespread appeal, highlighting their significance in the industry.

Additionally, vended laundry hubs cater to a wide range of customers, making them highly inclusive and versatile.
Lastly, these hubs excel in community partnering. They understand the importance of fostering strong relationships with the communities they serve.

In the subsequent sections, an exploration of how the advanced technology, diverse customer base, and community partnerships have revolutionized the vended laundry landscape is explained.

Advanced Technology

Technology keeps moving forward, and the laundry business is no exception to this trend. First and foremost, these hubs boast advanced technology, incorporating cutting-edge features that enhance the laundry experience for users. From high-efficiency washers and dryers to smart payment systems, the integration of such technology sets them apart.

Wide Range of Customers

Whether it’s individuals seeking a convenient and efficient laundry solution, busy professionals with limited time, or even students looking for an accessible option, these hubs accommodate diverse needs. Their ability to serve a broad customer base has significantly contributed to their popularity.

Ultimately, more services are provided beyond self-service. This appeals to more demographics who with an interest in dropping off clothes to pick up at a later date/time.

Ultimately, this grows profits as the options have expanded.

Community Partnering

Finally, community partnering is one of the most significant reasons why laundry hubs are the way of the future. Timeless services are usually centered around timeless values, like helping one another and building community.

Laundry hub offers this in the form of giving back to communities. This is done through the network of owners and operators of laundry hubs which work together to supply charitable or generous events for the communities they’re stationed in.

By collaborating with local businesses, organizations, and even schools, these hubs establish themselves as more than just laundry facilities. They become integral parts of the community fabric, offering additional services, supporting local initiatives, and creating a sense of belonging.

This sense of community will last as long as technology itself, from generation to generation.

In Conclusion

The vended laundry industry’s newest innovation is laundry hubs. As these hubs continue to gain momentum and redefine the landscape of the industry, it is evident that they encapsulate innovation and convenience like never before.

As more and more individuals and communities embrace the concept of laundry hubs, they are here to stay, marking a significant leap forward in the evolution of vended laundry. So, whether you’re a busy professional seeking efficiency, a student in need of accessibility, or a community looking for a reliable partner, laundry hubs are poised to become the go-to choice, revolutionizing the way we approach laundry in the modern era.

Self-service laundromats have undergone an image change in recent years. Instead of run-down places to be endured, their popularity is on the rise.

Setting up a vended laundry business is simple, and although helpful, previous experience in the sector isn’t required to be successful. But what aspiring laundromat owners should consider is the ideal location for their store in a mature market, and any other additional services that they can provide to increase revenue.

David Shulick provides below some reasons why this business is so profitable, and how best to set up a laundry business for success.

Selling Points of a Vended Laundry Business

One of the main factors that make opening a laundromat so appealing is the fact that it is very easy to do. Maintenance costs can be low, and some people find that they learn how to repair the machines quite quickly. Labor costs are negligible, and aside from the machines, there is no store inventory to manage.

Laundromats are also a safe option. Unlike other businesses, they don’t see any seasonal declines in usage, as people will always need a way to wash and dry their clothes. According to a study by the Coin Laundry Association, over the span of 5 years, coin-operated laundry businesses had a 95% success rate.

Due to lower labor costs and requirements to operate a laundromat, business owners can dedicate less time to their stores. Many owners choose to see the enterprise as a part-time venture, allowing them to dedicate time to other projects. On the flip side, those with more than one location tend to devote themselves to the laundry business full-time.

Setting up a Laundromat

When looking to set up a coin-operated laundry business, a number of factors should be considered to ensure the best return on the investment.

Location

Entrepreneurs should look for a suitable location for their laundromat that ensures that they will have a reliable customer base. Locations that are surrounded by rental or student accommodation, apartment blocks, or low-income areas see more traffic. Often these types of properties don’t have the infrastructure to support a washer or dryer, or they have no outside space for a clothesline.

Potential laundry business owners should make sure that the unit they choose is at least 2,500 square feet in size. Accessibility features, such as easy access and nearby parking can also entice customers.

Payment Options

The most common type of laundromat setup uses coin-operated machines. However, there has been an increase in the number of cashless machines. Although more costly to set up, it can help to futureproof the business as people start to carry less cash with them and provide a hygienic payment option. Some businesses have a combination of coin and card-operated equipment to offer customers the choice.

Opening Times

Although laundromats don’t see seasonal drops in customers, there are certain times in the day when they are used more often than most.

Common times for people to wash their laundry are after work, or on a weekend, so staffing around this time is crucial to offer assistance and services. If the laundromat doesn’t have any additional services, they could facilitate this by operating 24/7.

Initial Expenditure and Licensing

The initial cost for starting in the vended laundry business varies depending upon whether an existing laundromat is being taken over, or a retail unit is being purposefully renovated into one. For an average size laundromat with no extra services or features, estimates can range between $200,000 and $500,000.

New laundromats will also have to consider the cost of permits and licenses. These include health and safety licenses, fire department permits, and sewer connection fees.

Potential Earnings from a Laundry Business

Despite the initial expenditure, laundromats can start to see a return on investment quite quickly.

One store’s annual gross income might range from $30,000 to $1 million, with the running costs and expenses ranging between 65 and 115 percent of the gross profits. For example, a laundry business that is turning over $50,000 a year nets $17,500 at best and loses $7,500 in the worst-case scenario.

As technology continues to advance, new and innovative laundry machines and dry-cleaning equipment have made the industry more competitive. The added pressure is pushing dry cleaners to differentiate their services and offer competitive pricing. However, by expanding their facilities with vended laundry, dry cleaners can increase business and overcome market pressures.

By adding vended laundry units to their existing storefronts, dry cleaners can attract more foot traffic and generate new customers while tapping into a revenue stream that can offset the cost of traditional dry cleaning. Furthermore, David Shulick says that expanding into the vended laundry industry can improve customer loyalty thanks to the added convenience and affordability of DIY laundry.

Vended Laundries Attract Customers Seeking Convenience

Dry cleaners that offer vended laundry services can benefit from the increased foot traffic and customer base that these units attract. Customers are always looking for new ways to save time and vended laundry provides a convenient solution for those who don’t have the time (or desire) to wash their clothes at home.

What’s more, customers can use vended laundry units at any time of day or night, making them a convenient option for those with busy schedules. And, thanks to the 24/7 availability of vended laundry, dry cleaners can generate revenue even when their storefront is closed.

Vended Laundry is an Affordable Option for Customers

In addition to being convenient, vended laundry is also an affordable option for customers. The DIY nature of vended laundry means that customers can save money on laundry services, which can entice them to use a dry cleaner’s vended laundry units over a more traditional laundromat.

Moreover, the lower prices associated with vended laundry can help dry cleaners attract price-conscious customers who may not have considered using their services in the past.

Vended Laundry Units Can Offset the Cost of Traditional Dry-Cleaning

By expanding their business to include vended laundry, dry cleaners can offset the cost of traditional dry cleaning. The initial investment in vended laundry units may be higher than the cost of traditional laundry machines, but the added revenue can quickly make up for the difference.

Furthermore, the lower cost of operating vended laundry units means that dry cleaners can pass the savings on to their customers, making their services even more competitive.

Expanding Into Vended Laundry Can Improve Customer Loyalty

In addition to generating new customers and revenue, expanding into vended laundry can also improve customer loyalty. The added convenience of vended laundry units can make dry cleaners’ existing customers even more likely to use their services. What’s more, the increased foot traffic that vended laundry units attract can lead to more customers using the dry cleaner’s traditional services.

Final Thoughts

The laundry industry is becoming increasingly competitive, and dry cleaners are feeling the pressure to differentiate their services. However, by expanding their business to include vended laundry, dry cleaners can increase business, generate new customers, and offset the cost of traditional dry cleaning. Thanks to the convenience and affordability of vended laundry, dry cleaners can improve customer loyalty and attract price-conscious customers.

Building on the momentum of two successful events spotlighting women in vended laundry, the Coin Laundry Association (CLA) has assembled a task force dedicated to empowering women in the industry. One of the primary goals of this task force was to develop initiatives designed to address the issues most important to women who own or work in laundromats.

At their first meeting last September, the task force—which comprises a diverse group of women from across the country—came up with the following two initiatives for the CLA to implement as part of its goal to make the industry more fair and accessible for all. Below, David Shulick, a vended laundry industry leader, discusses the programs being implemented for women in the industry.

Building Leadership and Confidence

The first initiative is to build leadership skills and confidence among women in the laundry industry through targeted training and coaching programs. The link between self-confidence and leadership ability is well-researched, and the task force believes that finding tangible ways to help women gain industry confidence will expand the number of female leaders at all levels of the industry.

The task force urged the CLA to provide virtual or in-person leadership training designed to help female entrepreneurs find their voice and gain new levels of self-assurance. Additionally, the group suggested implementing mentorship programs that pair established women laundromat owners with newcomers to the industry. These programs would incorporate male role models to help open new channels of communication and mentoring.

Changing the Narrative

The second initiative the task force generated is to change the way women in the industry are perceived. Despite the fact that there are more women in the workforce than men these days, a 2019 Gallup poll found that women still take on more than half the share of domestic upkeep in most households, including laundry. Advertisements and popular media reinforce the stereotype that laundry is a woman’s burden and a thankless chore.

The task force wants to empower women in the industry by switching the narrative to focus on female leaders, entrepreneurs, and business owners. The CLA can accomplish this by featuring female business owners in their publications, recruiting more women into leadership roles within the vended laundry industry, and providing spaces where female entrepreneurs can drive discussions with each other.

In Celebration of National Women’s Small Business Month

October is the month in which female small business owners are celebrated throughout the country, so these initiatives could not have come at a more opportune moment. Using this framework as a guide, the CLA can begin to create an environment where female leaders and business owners are surrounded and uplifted by their peers. Altering the way the vended laundry industry will require improving gender representation across all levels and creating a space where women can come together to discuss their biggest concerns.

The CLA’s task force is off to a promising start, with two initiatives targeted at changing the face of the vended laundry industry. Further meetings and assemblies by its members will likely lead to an even more focused approach to empowering women in vended laundry today.