by Speed Queen Laundry Systems
last updated 14/09/2023
Keeping It Simple
by Speed Queen Laundry Systems
last updated 14/09/2023
A tried and tested formula from Speed Queen means a smooth and easy start-up for investors
There’s a simple five-step formula we use to help someone set up a successful new Speed Queen laundromat – and it’s not failed us yet,’ says Royce Little, Speed Queen’s head of laundromat sales. ‘In fact, our track record shows that a typical operator can expect an overall return on investment of 20-30 percent – and we are very keen to maintain that!’
Speed Queen has been manufacturing commercial laundry equipment for over a century, with equipment that combines robust reliability with the latest technology to help investors maximise the return from each machine.
‘We’re not strictly a franchise, but we are way more than just an equipment supplier. We help people set up successful businesses by providing lots of support, including everything from site location to design, building consents, and fit-out. It means you can invest with confidence in your business then sit back and enjoy the rewards as the machines work for you 24 hours a day. Here are five key factors to consider.’
One of the keys to building a successful laundromat is finding the right location. ‘It doesn’t have to be complicated when you know what to look for,’ says Royce.
‘There are a number of factors that determine the ideal location – we teach people what to look for. Prioritise locations that are near your target customers and easily accessible. For instance, look for areas close to apartment complexes and major roads, with ample parking. We usually advise against setting up too near an established laundromat but, in some locations, a Speed Queen’s superior advantages have led to considerable success for the owner.’
2. Size matters
The perfect size for your new laundromat will depend on various factors. ‘A compact design may be suitable for low costs and small spaces, and we have several which are filling niche markets very successfully. Equally, a larger outlet with greater capacity may yield higher profits. We always look to assess the demand in the area so our clients make the right choice. Whatever the size, we look at every square metre of floor space as potential revenue. The mix of machines installed can greatly determine the return, so that is our primary focus. We will have a very good estimate of total costs and potential earnings by this stage, with a good overview of where the investment is headed.
‘Finance options are available. We do our utmost to take the pain out of set-up to make sure we get the very best results for our customers.’
Royce advises choosing a location that you can easily transform into an appealing and welcoming space. ‘Making your outlet an appealing and welcoming space is all part of the “kerb appeal” that has led to Speed Queen’s success. Even small investments in lighting and clean interior design can go a long way to attract customers and make it easy to keep fresh.
‘Our 3D design software enables us not just to lay the space out for maximum returns, but also to create an attractive environment for customers. You’ll be able to see exactly what your business will look like, and build in all the right features from the start.’
4. Payment options
While not directly related to location, payment options are crucial to consider. With Speed Queen, you can decide whether you want to deal with coin or token collections on a regular basis, or if you prefer cashless payment options.
‘Being cash-free is a convenience for all parties – both users and laundromat owners,’ Royce explains. ‘No tedious end-of-day banking, no theft or coin/token jams, and you can simply watch the money pouring into your account as a passive income stream.
‘Eftpos is king with Speed Queen machines and we’ve built extra layers of support into the remote management. For example, if there were to be a faulty terminal, the software enables us to direct the machine to another terminal, which means you won’t lose hundreds of dollars whilst it is down.’
5. Total control
The clever software also enables you to increase turnover through instantly-programmable promotions.
‘Your local marketing initiatives will be central to your long-term success, and the remote operation that Speed Queen has perfected means you can arrange all manner of marketing. You can offer loyalty points to build a regular client base, offer jackpot-type free washes in certain machines, or create happy hour pricing at traditional down times.
‘Best of all, the customer app and social media management mean you can reach people with offers at a moment’s notice, all from the convenience of your own armchair – no matter how far away you are.’
It works for anyone
Speed Queen is keen to work with would-be laundromat owners all over the country. A medium-sized investment will be between $250,000 and $300,000, with a deposit required of $75-100,000.
‘Our current operators come from very diverse backgrounds, from ex-CFOs to dairy owners. The concept will work for anyone prepared to put in a bit of effort and some initial legwork, so give me a call and find out more.’
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