Quote from: blueknight1968
Hi to everyone. I’m new to this forum and after going through the thread I found a lot of good and useful tips for starting and managing a laundry business. I’m planning to enter the laundry business market soon by buying an existing laundry business.
I hope you can help me out in determining the purchase price of the business. What will be my main considerations in negotiating the purchase price of an existing laundry business?
I checked out the shop this morning and got the following information from the attendant:
1- Rent is P10,000/mo.
2- Shop is one of three laundry shops inside a condominium building and is farthest of the three shops from the lobby.
3- Area is 30 sqm.
4- Shop is handling an average of 50 kg/day and charging P25/kg.
5- There are two front loading washers and two LPG-operated dryers. The machines are already four years old with one dryer needing a motor replacement.
6- The shop is beset with unpaid association dues and rent amounting to P100,000.
7- The shop will need minor painting and carpentry repair works which I my contractor estimated at around P10,000.
I understand that a forum member gives out seminars from time to time. I’m interested in participating in one of these seminars and hope another seminar could be arranged in the next few months.
Pahabol na tanong – where can I buy a weighing scale for the clothes? Is there a particular type that is suitable for a laundry busines. The one i saw in the shop is similar to the ones being used in the palengke.
Buying an existing laundry shop is ok, provided that it is of good track record, or at least you’re not one
being lead into a sinking business.
looking at your information,
it looks like you’ll end up break even based on the monthly gross income, taking into consideration na ang average walk-in lang per day is 50 kg.
50 kg if converted into cash, based on 25peso per kg is only P1250.
1250 x 30 days = 37,500
association dues ?
it would be better if you also gather these other informations, so that you could come up with the average net income of that laundry shop.
also, the machines are already old, and the shop has long overdue accounts with rentals.
if i were to buy that business, i’d price it at 100k only, which should cover the rentals already.
i presume you are not to absorb the overdue accounts. from the looks of it, the owner of the space can actually confiscate the contents given that scenario..
anyway, if you decide on pursuing the biz,
you should increase the daily sales by at least 80kg at 30 orr 25 pesos per kg,
you do that….and you’ll be able to pull the business up..
i hope i’ve shared enough..
and also, get trustworthy staff.