Selecting a Laundromat Distributor
Whether you’re considering building a new store or you’re an owner looking to replace or add new equipment, you are going to be dealing with a factory direct or local equipment distributor. If it’s your first time doing a search for your equipment supplier, you might want a few insights to consider in making that selection.
Initially, you must view distributors and their representatives as sales people. Give them as much import as any salesman. Would you expect a car salesman to give you anything but positive aspects about the cars they sell? Wouldn't you expect them to promote the brand they're selling? Such as: "Fords make the best trucks, Chevys are trash." Laundromat sales people are not evil, just fulfilling their obligation to their factories to "move metal."
Most distributors will also offer to help you design the layout of your store. Most distributors are skilled and helpful in this task. Others, however, push too many washers in their store designs and these layouts are unsophisticated, poorly done and ignore adequate traffic lanes, folding seating, folding tables and dryers to enhance the profit generating designs that overpopulate the number of washers and dryers they want to sell. They often push the most profitable sizes of equipment regardless of the demands of the marketing area. (The bigger the washer, the more money the factory makes, and therefore the distributor.) They will promote only the single brand of equipment they sell regardless of whether it is has the latest high speed extract speeds or reversing dryers. Distributors can ignore some of the aspects of success in building a Laundromat.
First, what is the actual demand level of the neighborhood, the population density, the need for the services in a Laundromat? This should establish need as well as the size of the store and equipment required to meet the need.
Second, what is the visibility of the store? Can it easily be seen from the roadway? Is there a monument sign? Is it an inside spot of the center, or even worse a "crotch" position of a neighborhood shopping center? With a transient population, old customers are moving out of their apartments and homes with new ones arriving regularly and these new residents need to be able to see and find your location.
Third, what is the parking available for the Laundromat? Laundromats need good parking, except, perhaps in New York City, and this means parking that does not require crossing a traffic lane to get to the door, and is not compromised by adjacent business that have long term parking demands or attracts customers that can interfere with your business. Free standing buildings usually provide the best parking.
Fourth, does the lease allow the owner sufficient time to recover the investment? A new store should be looking for a minimum of 25-35 years of original lease including options, with the options having the same terms and conditions as the original term. You should have someone who understands necessary or dangerous provisions that are written in commercial leases. A consultant or lawyer can often help in this area. In parts of the country the best solution is to buy the building and not worry about the lease.
I would be cautious about expecting distributors to "assist with a myriad of things from helping you find an ideal location, market research, equipment etc." Their prime motivation is to sell equipment and make a profit. The term "expert" is too loosely thrown around and often substituted for "experienced sales person." In my experience, I would guess that over half the Laundromats in the country are built in locations where a Laundromat should never have been built. These sites were often selected and approved by helpful "experts" employed by a distributor.
As a newbie to the business, I would contact an experienced advisor to provide you with enough advice and guidance before you decide to embark on a course of new store construction or purchase. You can waste thousands of dollars by placing full faith in strangers who are in the business of making their living off your purchases. Determine what you want to accomplish before you select a distributor to help you with your equipment purchases. There are many qualified and honorable distributors but as previously noted, some don’t possess the skills necessary for your success. These less qualified distributors are great when they stick to their lane of providing equipment, arranging shipping, advising on installation and providing ongoing service and repairs. Design, brand, locations, leases, amenities and projections are not normally their strong suit.
Just keep in mind that your lack of knowledge is a hindrance to your success. Don't expect others not to notice you're a newbie and attempt to financially benefit from your inexperience on location, design and price. It's the nature of sales. Most distributors have some staff members who are very qualified to help you build a new store, so asking for their history of previous successful locations and a few references of previous customers is a good idea before you put your deposit down.