by Speed Queen Laundry Systems
last updated 22/07/2019
More Than Remotely Interesting
by Speed Queen Laundry Systems
last updated 22/07/2019
Future-proofed technology and remote operation makes Speed Queen an investors’ dream
Speed Queen is the oldest and largest manufacturer of commercial laundry equipment in the world. ‘Despite being founded in 1908, we’ve always been at the cutting edge of technology and trend – and that’s why our operators continue to make big profits,’ says Royce Little, Speed Queen’s head of laundromat sales.
‘Our modern laundromats offer technological advances that have been big game changers for the industry. By offering cashless payment and remote operation, laundromats have become even more attractive opportunities for owners as investors. And because you don’t need expensive high street or mall locations, Speed Queen’s partners are reaping the rewards of us being ahead of the game.
‘That’s why we say Speed Queen is a near-perfect model for anyone seeking passive income.’
‘From an investors’ perspective, cashless payments offer a lot of benefits,’ explains Royce. ‘For a start all the security issues have gone – there is nothing to steal on site any more. There are no worries about cash handling, collecting and banking coins, either. That was always a bit of a hassle, and new laws designed to prevent money laundering have made dropping coins into banks increasingly difficult, but the change has actually made owning a laundromat even more attractive.
‘Our research showed that even at the lowest end of the socio-economic spectrum, eftpos is universally liked. Without an eftpos card you can’t easily get money out of the bank or even access a benefit, so virtually everyone has one. Credit cards are pretty normal, too. As a result, cashless payments have become a readily-accepted form of payment that’s much more convenient.’
New Zealand’s eftpos environment means that Speed Queen couldn’t just plug in a cash-free solution from overseas, so the company went into partnership with Cashless Payment Solutions to develop a sophisticated system for laundromats here. ‘That’s also enabled us to future-proof the system for probable and possible changes, including Pay Wave and Apple Pay – it’s all a far cry from pockets full of heavy, jingling cash just to wash your clothes,’ laughs Royce.
Reliable at a distance
Having payments go direct to your bank account is an attractive proposition, and Speed Queen offers another massive benefit to prospective investors: ‘You can run your business from home and never even visit your laundromat!’ says Royce. ‘In theory, you can sit in Kerikeri and watch the profits flow in from Invercargill, if that’s your preference.
‘The key to this is that all Speed Queen laundromats can be fully networked via the internet. This allows complete visibility of all the operations: what is happening in your store from an auditing perspective; how many cycles each machine has done; when are the peaks and troughs of the operating cycle; and most importantly, perhaps, if there’s been a very rare fault or issue. If there is a blocked drain, for example, the machine will message you immediately to let you know. This has revolutionised the way owners interact with their businesses.’
But what if there is a fault or error at your store at the other end of the country? ‘Not a problem at all,’ says Royce emphatically. ‘We have servicing agents in every town in the country, but they rarely have a lot of work to do for Speed Queen. Our equipment leads the world because it was always built for the long-haul. The machines are pretty indestructible – they will work reliably day after day for 15-20 years, on average. So with agents nearby, you can live or holiday as far away as you like!’
A turn-key operation
Speed Queen has equipped over fifty outlets in the last two years and supplied six of the largest laundromats operating in the southern hemisphere. ‘This is a near-perfect passive investment opportunity, and we are seeking further investors,’ says Royce. ‘A medium-sized investment will be between $250,000 and $300,000, with a deposit required of $75-100,000. The return on the total investment is in the region of 20-30 percent, and we’ve had some owners do much better than that.’
Speed Queen is not actually a franchise – you operate under your own brand, but Speed Queen provides all the help you need to get up and running. This covers everything from site selection according to proven demographic and parking criteria to meeting council regulations and launching your business.
‘This is a turn-key operation which suits investors looking for passive income, a profitable sideline to a mainstream career, retirement funding or business diversification,’ Royce explains. ‘We’re ready to hear from anyone who has the desire to build a successful business in any part of the country … and you don’t even need to move!
‘Whatever your situation, give me a call, and let’s discuss how Speed Queen can help you.’
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