Laundromats

Any views? Seemed relatively passive income generator to me. I am one who shot it dwn immediately when my friend told me abt it. How many family in sg dun haf washing machines?? 

Started to notice more and more springing up in estates. Every sat, when i bring my son for tuition, will notice the laundromat nearby, at least 2 washer n 2 dryer operating. 

Any views?? Abt 130k to start a typical franchise, machines, reno etc included. Rental and utilities are recurring. Gross mus b more than these to be profitable. Min labor needed.

My neighbor of many years used to be in this line.

Before that, side track a bit.
My take is do not get involved in it unless you completely know what you are getting yourself into and what is needed to churn a profit. Generally speaking, most people are not suitable to run a business. It would be less taxing and more profitable to stick to a day job. In Singapore especially, unless you have an edge over the others, it is really extremely difficult to compete as a start up new business. Long hours, profitability not in sight, etc etc

Ok onto Laundromats.

Location location location.
So if you are going to have a sizable catchment with little or no competition, chances are you will need to pay very high rent.
If you manage to secure one with reasonable rent, and business is good, it wont be long before competition shows up. It is inevitable. And there is nothing much you can do to differentiate yourself especially self service ones. All are the same.

Consider renovation, 130K maybe a ball park sum. Washers and dryers require high capacity 3 phase power. Most shops dont have that, if you are upgrading power in a HDB shop, you are lucky as costs should be within 50K. If a private shop, good luck, it will likely involve digging up walkways, roads, and everything in between. Cost $250K easily. And that's just the electricity part.
Water's usually not an issue even though you need high capacity hot water tank.....it's 5.20 am and I think i need to sleep.

Just for fun,

Instead of opening Laundromat, why don't you develop an app to match make demand and supply in the neighbourhood.
There are working couples with plenty of laundry and no time. There are also housewives that may want a side income.

A typical pricelist

http://www.cottoncare.com.sg/pricelist/
Even for half the price, I think it is still a good side income.

If you run out of supply, u can consider opening a Laundromat.

Lol from the high setup cost and onging running costs, it seems laundromat business is really for money laundering purposes...

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(21-08-2017, 10:40 AM)BlueKelah Wrote: Lol from the high setup cost and onging running costs, it seems laundromat business is really for money laundering purposes...

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Tts precisely wat my friend said too.. Hahaaha..

(21-08-2017, 05:17 AM)Big Toe Wrote: My neighbor of many years used to be in this line.

Before that, side track a bit.
My take is do not get involved in it unless you completely know what you are getting yourself into and what is needed to churn a profit. Generally speaking, most people are not suitable to run a business. It would be less taxing and more profitable to stick to a day job. In Singapore especially, unless you have an edge over the others, it is really extremely difficult to compete as a start up new business. Long hours, profitability not in sight, etc etc

Ok onto Laundromats.

Location location location.
So if you are going to have a sizable catchment with little or no competition, chances are you will need to pay very high rent.
If you manage to secure one with reasonable rent, and business is good, it wont be long before competition shows up. It is inevitable. And there is nothing much you can do to differentiate yourself especially self service ones. All are the same.

Consider renovation, 130K maybe a ball park sum. Washers and dryers require high capacity 3 phase power. Most shops dont have that, if you are upgrading power in a HDB shop, you are lucky as costs should be within 50K. If a private shop, good luck, it will likely involve digging up walkways, roads, and everything in between. Cost $250K easily. And that's just the electricity part.
Water's usually not an issue even though you need high capacity hot water tank.....it's 5.20 am and I think i need to sleep.

(21-08-2017, 06:38 AM)yeokiwi Wrote: Just for fun,

Instead of opening Laundromat, why don't you develop an app to match make demand and supply in the neighbourhood.
There are working couples with plenty of laundry and no time. There are also housewives that may want a side income.

A typical pricelist

http://www.cottoncare.com.sg/pricelist/
Even for half the price, I think it is still a good side income.

If you run out of supply, u can consider opening a Laundromat.

Tt is my plan if i really open a laundromat. To provide such services. But may need to count in labor and more efforts. Then again, its part 2 of the plan, if it really pens out

(21-08-2017, 05:17 AM)Big Toe Wrote: My neighbor of many years used to be in this line.

Before that, side track a bit.
My take is do not get involved in it unless you completely know what you are getting yourself into and what is needed to churn a profit. Generally speaking, most people are not suitable to run a business. It would be less taxing and more profitable to stick to a day job. In Singapore especially, unless you have an edge over the others, it is really extremely difficult to compete as a start up new business. Long hours, profitability not in sight, etc etc

Ok onto Laundromats.

Location location location.
So if you are going to have a sizable catchment with little or no competition, chances are you will need to pay very high rent.
If you manage to secure one with reasonable rent, and business is good, it wont be long before competition shows up. It is inevitable. And there is nothing much you can do to differentiate yourself especially self service ones. All are the same.

Consider renovation, 130K maybe a ball park sum. Washers and dryers require high capacity 3 phase power. Most shops dont have that, if you are upgrading power in a HDB shop, you are lucky as costs should be within 50K. If a private shop, good luck, it will likely involve digging up walkways, roads, and everything in between. Cost $250K easily. And that's just the electricity part.
Water's usually not an issue even though you need high capacity hot water tank.....it's 5.20 am and I think i need to sleep.

Spoke to 2 franchisee, 130k include everything, those typical half shop laundromats we see... Incl laying of gas pipe or private gas tank for dry, electric supply of washers and dryers. Jus tt the gas pipe waiting time can be up to 3 mths.so rental for 3 mths wif no income..

(21-08-2017, 06:38 AM)yeokiwi Wrote: Just for fun,

Instead of opening Laundromat, why don't you develop an app to match make demand and supply in the neighbourhood.
There are working couples with plenty of laundry and no time. There are also housewives that may want a side income.

A typical pricelist

http://www.cottoncare.com.sg/pricelist/
Even for half the price, I think it is still a good side income.

If you run out of supply, u can consider opening a Laundromat.

This is a practical and sensible idea. Uber for laundry!

I believe there will be quite an active market; the young families outsourcing their laundry to their more elderly neighbours.

Asset light, plus you can get a ton of grants from government.

And then when you get enough users, get a windfall by selling to VC!

evolance: Try this first and if it doesn't take off, you won't lose much too. Then you can go on to try your laundromat shop idea.

In Singapore, almost all households expect to have washing machines. Only special service needed. Go upmarket
Not easy in Singapore for traditional laundry.

Services like carpet, curtain, special fabrics...etc

I am back after a long nap...

Laundry is a viable business, much like supermarkets.
The more stable and profitable ones are the big guys who handle hotels(think MBS/Sands and its employees and the amount of Laundry)/restaurants and other large corporations.

Smalls ones, also viable but difficult. No economies of scale for Utilities and consumables. Organic growth without ample financial backing is extremely difficult. Need scale in many businesses nowadays. Setting up a single brick and mortar small shop and hoping that it will generate enough profit is not easy. You need to be the top few in what you do in order to do well.