These are queries I got through comment. I will reply based on my experience, (briefly). This will give an idea, but research is still necessary. My replies would be in the italics.
I am currently studying masters in management in one of the universities here in Cebu. As part of the course requirement, we are required to submit a feasibility study, and i have chosen the laundry business for my study.Through the internet, I came across your postings about tips in putting up a laundry business. In this regard, i hope you won’t mind if i ask you the following questions about your business:
1. How much was your capitalization in starting up the business? I started with a 100k capital.
2. How many years have you been in the business? I’m already turning 8 years in the business.
3. How many machines did you have at the start and what were these machines? (Pls specify details; e.g. washing machine wiht 10-11 kg capacity) I started the business with only a pair of washer and dryer, Both 10kg capacity.
4. How much is you rent per month if you are renting? I’m renting the whole place at 20k but rental is shared by my other businesses.
5. What is the approximate area does a small, start-up laundry shop usually occupy? I have an area of 24 sq.m. when I started.
6. How much is the estimated sales per day? What is its sales growth for the past years? Sales vary from 1500k-4000k per day.In terms of sales growth, if you stick in one area, there’s really none, unless you expand, meaning put up branches. I already have 4 branches at present, all stand alone, meaning not a pick up station.
7. How much is the estimated water and electricity expense per month? Consumption depends on the business coming in. The more customer, the bigger the expense.
8. How profitable is the business? (Its estimated percentage to sales) Depends, to say the ball park figure of direct cost: It’s 14%.
9. What are your services and their corresponding prices? I set a standard of 28-30/per kilo of wash dry fold. Wash dry press at 70/kilo.
10. What is the time frame for every laundry job? 24 hours
11. How many employees do you have? Are they full time? 2 All around. Full time
12. How long did you get your return on investment? Ranges from 3 to 6 months
13. What is the condition of your business now? How does it deal with competition? Business is doing good. I compete with quality service. I never bring down my price, it’s not good for the business.
14. How do you dispose of your water waste? Goes straight to the city sewage system.
15. What are your SOPs to avoid wastage of detergents and damage to the fabrics? I keep an inventory. I also use a very efficient type of detergent, very convenient on usage and almost 0 wastage.
16. What are your firm’s advantages over your competitors? How do you attract and keep customers? Our advantage is we are already 8 years in the business and we were able to develop a system that makes our business run smoothly. We offer quality service, which is value for money. We keep our customers by maintaining good relationship, we keep our promises and deliver with pride.
hi mr.laundry
thank you for having a site that will cater all our laundry queries.
to begin with,im operating my laundry shop in my home im using my 7kg washer and 5kg electric dryer as a start up.
im not renting and i dont have an employee now.
i pick up clothes and deliver it right to their doorstep.
i have’nt attended any seminar yet but im planning to this september.
my question po:
1.what is the justifiable price for wash dry fold?
wash dry press?press only?
how much should i charge the comforters,maong jeans?
can you pls give me the price quote for each items.
since im just new in the business.
2.should i have a different charge for delivery and pick up customers and much lower price for the walk in customers?
3.how much detergent should i use for each load?
4.since im using electric dryer mas mataas po ba ang consumption nito compare to lpg?
5.if i hire a employee as a start up ilan po ang kailangan ko and how much should i pay them?
6.what is the best detergent,softerner to use?where can i buy them?
thank you and hope to hear from you soon.
godbless