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Archive for September, 2008

Brooklyn’s a rockin’ with Rock-A-Wash

Monday, September 29th, 2008

 

Wascomat_fulllogo

 

Rock A Wash
864 Rockaway Ave.Brooklyn, NY
Josh Rosenblum – josh@mayroseag.com
Hershy Mayer – hershy@mayroserealty.com
(917)577-1240

  Brooklyn’s a rockin’ with Rock-A-Wash

  When business partners Josh Rosenblum and Hershy Mayer started advertising their 5,800 square foot open store for lease on Rockaway Boulevard in Brooklyn, they knew nothing about the laundry industry. After being approached a number of times by potential renters who wanted to open a laundromat there, the two decided it might just be a perfect new business for them. They owned the property and had a great location – which they knew were major steps in the right direction. They have a super successful 8,000 square foot Family Dollar anchor store in their strip (number 13 in the nation), a 1,200 apartment building directly across the street, and the surrounding neighborhood has a large number of 2-3 family homes without washers and dryers. Josh and Hershy wanted to work with a professional who knew the business inside and out and could supply the whole package – knowledge, business skills, experience, equipment, layout, installation, and more. They also knew the installation would be complex and that they needed someone with a high level of expertise to handle it from start to finish. They turned to friend and industry veteran, Noel Cooper. From the beginning, Noel (long-time Wascomat dealer and owner of Garden State rockawashOwnerLaundry Systems), worked hand-in-hand with Jim Colletti of Wascomat Distributors based in New York to ensure the project went smoothly. These two professionals, with almost 75 years of combined experience, have been working on projects together for decades and knew how to make it a successful operation.

When Noel demonstrated the features and benefits of Wascomat’s Compass Control washers, Josh and Hershy immediately knew it was the right choice. “We did a lot of research and felt confident that Wascomat was the superior, most reliable product on the market,” states Hershy. “We believe in using high quality products, so Wascomat was a perfect fit for us. We don’t have the time to fix and tinker – we want the machines to work without a hitch and for customers to find them easy to use. The new Compass Control washers fit that bill exactly.” Noel showed them how they could not only customize their wash programs, but how they could increase store revenue with the Heavy Soil and Extra Rinse buttons – something not available in competitors’ machines. The washers also display two languages at the same time, which is a great benefit to their client base. 

With a huge, brightly lit sign on top of the building, Rock-A-Wash officially opened on Monday, March 17, 2008. Since that time, business has been excellent – and growing steadily. Open 24/7, this big, beautiful store has ground to ceiling windows across the entire front letting in lots of natural light. They have 2 attendants working each shift and a computerized system for inventory, accounting, and wash-dry-fold services. It feels good to be there – safe, bright and cheery, lots of room in the aisles, plenty of folding tables and seating, TVs, and a children’s play area. They have 20 security cameras and the ability to logon their computers and view the store from anywhere. The bright blue LCD displays on the stainless steel Compass Control washers are easy to read, even in direct sunlight.  They have a card system installed and, even though many customers had never used a laundry payment card before, it has been very successful. “We needed to use a card system for the simple reason that it’s not our only business and we have to be very smart with our time,” states Josh. “It makes accounting very easy, it’s safer, and it saves us an enormous amount of time and effort.”

Josh and Hershy have owned their strip of stores on Rockaway Avenue for a couple of years, so they are known and well-respected in the neighborhood. They made sure that the people living in the surrounding areas knew they were opening a laundromat and that they would be offering grand opening specials. “Our customers appreciate that we let them know about each stage of construction and that we care about the community,” states Hershy. “They also love the new equipment, especially the Compass Control washers. They are easy to use and the high-speed extraction saves them time and money in the dryers. They also appreciate the full time attendants, cleanliness and safety of the facility. It’s a much needed and great addition to the neighborhood.”

Since opening, Rock-A-Wash is rockin’ and the clientele is growing. “We owe a lot to our Wascomat distributor,” shares Hershy. “They were with us every step of the way, even now. Noel’s son, Marc Cooper, grew up in the business and knows what works and what doesn’t. He came by on grand opening day and spent time showing customers how to use the washers and card system. These gentlemen have a keen insight into this business and they know how to build a successful store. We learned a lot from them and I’m sure we’ll be working together again in the future.”

Wascomat Compass Control Washers
  26 SU620cc
  24 SU640cc
  8 SU675cc

Wascomat dryers
  4 WC758
  29 WC236

Meet Stefan Meir – Wacomat’s new manager of OPL and National Accounts

Monday, September 29th, 2008

Wascomat
 

 

 

Meet Stefan Meir – Wacomat’s new manager of OPL and National Accounts

Stefan Meir joined Wascomat in April 2008 as manager of OPL and National Accounts. His role is to develop a structured OPL marketing program to increase Wascomat’s sales and overall market presence. Stefan is in the process of developing programs to help differentiate Wascomat from its competitors throughout North America. “I envision a working plan that will provide stability and support to our current OPL distribution network, as well as attract new high-quality distributors,” shares Stefan. “A good plan is never stagnant, it keeps evolving to successfully address the growing needs of our dealers and customers. That’s at the top of my list in my overall planning process.” StefanMeirandfamily

Stefan previously worked for Wascomat from 1996-2001 in Sales and as Director of National Accounts. For the past seven years, he worked in sales for two different laundry equipment distributors. Now back at Wascomat and based in the NY office, Stefan is enjoying the job and sees an exciting future with huge potential for growth. “I’ve always believed in the Wascomat product,” states Stefan. “Everyone in the industry knows the equipment is superior. I am equally thrilled with the direction and vision of the company, dealer support, marketing, and new technologies. We have a great opportunity to make a real impact in the OPL market and to position Wascomat as the professional laundry industry leader.”

Stefan enjoys meeting new and existing OPL dealers to help them improve sales and develop local national accounts. His wealth of knowledge, skills at developing new markets, and ability to increase business has already made headway in the OPL and National Accounts arenas. National Sales Manager Dan Goldman says that Stefan fits right into the “new” Wascomat with his sharp organizational skills and enormous capacity for work. ”He brings a great deal to the table,” state Goldman. “His experience working on both the manufacturing and distribution sides of our business is a great benefit to Wascomat and our dealers.”

Howard Herman, President of Wascomat, agrees. “His enthusiasm is commendable,” states Herman. “Combine that with honesty and sincerity, years of experience, solid skills, and a great work ethic – and you have a better picture of who Stefan Meir is. We’re very happy to have him back at Wascomat. He is already making great strides and our dealers and customers are excited to be working with him.”

Born and raised in Queens, Stefan now lives in Smithtown, New York with his wife Grisel and their three children: Brandon (8), Lorenzo (6), and Jessica (2). In his free time, Stefan enjoys jogging, fishing, and camping with his family.

 

Information for prospective Laundromat buyers.

Sunday, September 21st, 2008
 
You never pay more than 3 to3.5 X the net.

Always be ready to walk away.

 

How far are the closest Laundromats?

 

You must look at the Tax returns for the past 3 yrs.
No one would lie to the taxman and say they are making more.

Everyone tells everyone they take from the top.
This is wrong and should not even be taken into consideration.

 To me that’s a RED flag!
      

Don’t go into this unless you are ready to work hard. This is not an easy job. You don’t just collect Quarters!

I tell people to go to the Laundromat they are looking to buy, with a bunch of towels to be washed and dried.

 

Don’t open your mouth. Sit and watch.
Plan on staying there a while. Be a FLY on the wall.

Watch, look, and listen. Remember, no matter how hard it is don’t talk to anyone there.

It’s not fair to the seller or to their employees.
Now I don’t mean for you to go just one time.  I am telling you to do this for at least a week or two. (Maybe every third day).

If you do buy this Laundromat, believe me you will be spending more time there then a week or two.
 

You are spending your hard earned MONEY.

Try not to be an obvious neophyte

Good luck.

 
This is only my opinion. You do what you think is right; Follow your business instincts.

 
Coinwash.com

Jonathan
 

 
 

 

The Financials
 

Seller’s stated Profit and Loss Statement
Water Bills (last 12 months)
Electric Bills (last 12 months)
Gas Bills (last 12 months)
Parts? Receipts on repairs? Service Contracts?
Tax Filings?
 

 

The Assets


Washers and Dryers / Make,Model/Yr/PriceVend
Water Heater(s)
Condition of Floors
Condition of Counters/Tables for Folding.
Vending Machines
Soda Machine
Soap Machine
Candy (Gum/Bulk) Machines
Pay Phone
Video Games
Changer Machines
# of Carts/ Baskets
Alarm System
Which Alarm Company is being used?
What type of service is in place?
Can I see the contracts?

 

 

 

 
 

 

Vending


Which machines are owned?
Which machines are leased?
Vending Lease Contracts/Agreements?

 

 

 

 
 

 

Service


Who has been providing equipment upkeep and service?
 Receipts?
Any Contracts/Agreements?
Who has been supplying vending goods? Soda?
Who supplies the video games?
contracts? Agreements? What’s the cut?

 

 

 

 
 

 

Insurance


Liability Insurance
Hazard Insurance
Current Insurance Carrier?
Any problems with insuring the place?
Get the current insurance contract, check for clauses.

 

 

 

 
 

 

The Employees


# Of Employees
Hours and Pay
Contract Personnel? Salaried? Hourly?
Duties
Are they willing to stay on after purchase?
How long have they been contracted/employed?
 

 

The Legal and Corporate Issues

Accounting Fees
CPA Costs Annual / Quarterly Reports
Legal Fees?
Business License Cost

 

 

 

 
 

 

The Company’s Contracts and Leases

Vending Contracts/Agreements?
Supplier Contracts/Agreements?
Video Game Contracts/Agreements?
Alarm/Security Company Contract/Agreements?
Any Insurance Contracts/Agreements?
Property Lease Contract/Agreements?
Equipment Service Contracts/Agreements?

 

 

 

 
 

 

Property Lease


CAM Fees – cost / what is included in the CAM Fees
how are CAM fees divided amongst tenants?
Who determines CAM fees and items?
What percentage of fluctuations in CAM fees in
the past or foreseeable in the future?
Can I get a breakdown of the CAM/ RE Insurance / RE Tax?
What is personal property tax? Of $33?
Current Lease
Lease Increase Rate
Lease Expiration/Options
Lease Deposit

 

 

 

 
 

 

      The Suppliers


1.       Vending Suppliers? Any Contracts?