by Speed Queen
last updated 31/03/2022
Too Good To Sell
by Speed Queen
last updated 31/03/2022
Speed Queen laundromat owners hang on to their near-passive, pandemic-proof earners
There’s one question that Royce Little loves to answer. ‘I’m often asked by potential owners if it is a better strategy to buy an existing laundromat, or to set one up from scratch. My question to them is: how many Speed Queen laundromats have you seen for sale? There are hardly any in comparison to other brands, and that’s for a very good reason: why would you sell a successful business that can provide you with a near-passive income?
‘I put this down to two things,’ says Royce, who is Speed Queen’s head of laundromat sales. ‘First is the guidance and design we offer our owners, and second is the advantage Speed Queen has in the market over other laundromats.’
What makes us different?
So what makes Speed Queen different from run-of-the-mill laundromats? ‘It’s our focus on future-proofing – constantly improving everything we do to produce the best possible outcome for customers and owners, too,’ Royce says.
‘The US-built equipment is robust, reliable, efficient and long-lasting – you’ll get 15-plus years out of each machine. We’ve introduced cashless payment, increasing both convenience and security. There’s remote operation, meaning that an owner can manage their business from home, another town or even another country. And now we are introducing remote-controlled monitors, which enable owners to communicate to customers on-site.
‘The monitors mean that, instead of fixed signage, the pricing menu can be adjusted as required. For example, owners can offer different pricing on different days or at different times. They can feature special offers to maximise usage. They can carry live status information indicating which machines are available, which are busy and which are complete. And they can carry important notices, such as constantly-changing Covid messaging. It all adds extra value – and extra profitability – for our owners.’
And with self-service laundromats deemed an essential business even during Level 4 lockdowns, that profitability has continued throughout the last two years as other businesses have suffered. ‘That’s yet another reason why we say Speed Queen offers a near-perfect business opportunity,’ says Royce.
No ongoing fees
Speed Queen is not a franchise – each laundromat owner operates under their own brand – and there are no ongoing franchise fees, but that’s not to say there is no support. ‘We work with owners to create profitable, sustainable and manageable businesses which can be run as a passive investment,’ Royce explains.
‘This starts by gathering comprehensive information on any proposed site to ensure that it has all the characteristics we look for: location, demographics, parking, lease terms, price and traffic levels. Then there’s the design and layout of your space – something that not only creates a good environment, but maximises customer flow and thus increases revenue. It’s amazing how much difference the configuration of machines can impact your ongoing revenue, and that’s something we know all about.
‘Our powerful back-end software also gives you unique advantages. We can offer you full wrap-around support which ensures less downtime through quick troubleshooting, creating a healthy environment for customers, reducing the risk of interruption to revenue, and cost-saving on maintenance. If there is an issue, we have service engineers right around the country so machines are never out of action for long. We have also led the market in New Zealand by integrating our technology with a payment system incorporating Eftpos machines to ensure no sectors of your customers are excluded.
‘We’re proud to say that no Speed Queen laundromat has ever failed in New Zealand, and we work hard to keep it that way.’
Keeping it simple
As a Speed Queen owner, you can manage your laundromat simply using an app downloaded to your smartphone. The app allows you to access marketing and support functions, and get operational reports, as well as resolve any issues such as responding to customer queries and managing individual machines. For example, if a token gets stuck or an ‘error’ light is displayed on a machine, you can instruct the customer to load their washing into another machine which you can then start remotely.
‘You can also monitor the laundromat on your smartphone through in-store security cameras to add further peace of mind,’ says Royce.
Easy operation, excellent return
Royce says that the company does all it can to make opening your own laundromat pretty much a turn-key business.
‘We offer a solid financial package and won’t give the green light to anyone unless the fundamentals are right. We’ll also assist with all the required council regulations. The deposit can be as low as $80,000, and the return on total investment is in the region of 20-30 percent. We’ve had some owners do much better than that, too!
‘Right now, we’re looking to hear from anyone who has the desire to build a successful business in any part of the country. People will always have to wash and dry their clothes and, with cheap rent, no staff, cashless operation and remote management, I think you’ll find the Speed Queen opportunity ticks all the boxes. Call me to learn more.’
See this advertorial on page 49 of Franchise New Zealand magazine Year 30 Issue 4
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