by Speed Queen
last updated 08/12/2019
Earning Income While You Sleep
by Speed Queen
last updated 08/12/2019
Passive income from 24-hour operation means the money keeps rolling in for this Speed Queen operator
Konnie Roeun thrives on hard work, but it’s the passive income that she appreciates most about her Speed Queen-equipped laundromat. Originally from Cambodia, Konnie arrived in New Zealand 20 years ago with husband Sokha. The couple originally set up a bakery in Hamilton but, with three children at school and two in day care, found themselves making endless visits to their local laundromat.
‘We researched the laundromat business and discovered Speed Queen provides the most robust and best-designed equipment,’ says Konnie. ‘That’s what you need in a business that runs 24 hours a day, so we found a good site and set up our first laundromat with their help.’
A few years later, Konnie and Sokha decided to realise their dream of living in the Winterless North. ‘Because we had several businesses and the bank had got to know us quite well, it wasn’t hard to finance a move, but one thing we knew for sure – we wanted another laundromat and it had to be Speed Queen machines.’
Today, if you pass the famous toilets at Kawakawa you will reach Konnie and Sokha’s new bakery. ‘Directly opposite is our first laundromat in the far north,’ she smiles. ‘That has been open four years now and really manages itself. It requires nothing more than a single cleaner once a day while the machines make money. We even have double customers – people put their washing on, then come to us for a meal.’
Back in fashion
Laundromats are back in fashion. As apartments have grown smaller, domestic washing machine and dryer ownership has shrunk. ‘We’re following the trend that happened in America 15 years ago where self-serve laundromats became more and more popular,’ says Royce Little, Speed Queen’s head of laundromat sales.
‘In fact, as Konnie and Sokha have found, laundromats are almost the perfect business opportunity – cheap rent, no staff, potentially cashless and capable of being run remotely,’ Royce explains. ‘You don’t need a primary high street site – a less glamorous site with plenty of parking is ideal, although in the Roeuns’ case being opposite their bakery has worked extremely well for both businesses!’
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 trends, and that’s why our operators continue to make big profits,’ says Royce.
‘Our modern machines offer technological advances that have been big game changers for the industry. With cashless payment and remote operation, laundromats have become even more attractive opportunities for owners as investors, and Speed Queen’s partners are reaping the rewards of us being ahead of the game. That’s why we say this is a near-perfect model for anyone seeking passive income.’
Speed Queen delivers
‘Passive income has been a driving force for us, and Speed Queen delivers,’ says Konnie. ‘They are very pro-active when it comes to helping choose suitable locations, because that is crucial to your operation. When the site opposite our bakery came available, we grabbed it.
‘And the new cashless machines have made our business so easy-to-run. Everyone uses EFTPOS today, and I love seeing the money just arrive in the bank. My family have been so impressed with how well Speed Queen operates that we have already invested in another laundromat in Whangarei, and we are looking at building other outlets shortly.’
Royce Little says that, ‘From an investors’ perspective, cashless payments offer a lot of benefits. For a start, all the security issues have gone – there is nothing to steal on site anymore. There are no worries about cash handling, collecting and banking coins, either. 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.’
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. Speed Queen has equipped over 50 outlets in the last two years and supplied 6 of the largest laundromats operating in the Southern Hemisphere. 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,’ says Royce. ‘We’ve never built an outlet that has failed, and we’ve no desire to spoil that record. This is a near-perfect passive investment opportunity, and we are seeking further investors to satisfy the need.
‘One of our operators in Auckland didn’t even advertise when he started his outlet, and it grew exponentially purely by word-of-mouth. It’s all about location, and in his case the location was bang on.
‘If you are interested in opening your own cashless, money-making investment, we have several areas with considerable potential, so give me a call and let’s start talking.’
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