Laundromat Automatic Washing Machines Coins Operated Laundry in Thailand, just a trend or profitable business ?

[rech]

hello,

 

What do you think about these new laundromat ? otteri, maru, laundrowash, wash and dry, clean pro, etc...

so many brands, so much competition, for so expensive washing machines everywhere, with so few customers.

do you think that this business could be profitable ?

how many will close because of expensive rent ?

or maybe it's not clothes that people who open this business have to launder ? ????

 

please tell me what i dont understand.

 

Thanks guys

 

[NiwPix]

I didnt go over the numbers, but just a gut feeling that this business model is profitable if at the right location and some business / marketing sense.

However, the only problem I see ( and it is a very big problem ), the concept can be easily copied. So if you put in the work and time to make it successful, it will be quickly copied.

[rech]

Do you call this a business model ?!

 

 

[NiwPix]

Yupp, I think this could do well if you can figure out a way to make it unique or too difficult to copy.

[rech]

I still believe that they are not profitable when you have to pay a 10000+ rent monthly.

Only the franchise company will make profit from the idiots paying for it.

 

 

[scubascuba3]

I don't think they are profitable unless a very low rent. Maintenance will eventually go down hill and customers will go elsewhere. A shop near me pays 20k rent a month, plus Otteri costs whatever they are plus all the initial outlay costs which are very high, 250k a machine from Japan.

 

They can't increase prices either or people will go elsewhere.

 

I use an Otteri weekly, no need to buy a machine

[Andrew Dwyer]

A shop near me seems to do well, I believe the rent is 6k and is in a busy market area so very visible.

[blackcab]

Why not do the same thing but use LG top loading washing machines with a coin box on the side? In Bangkok, a new LG 10kg machine costs 12,500 baht delivered and installed including the coinbox (you need to supply the water supply and waste supply).

 

You get a warranty for the motor and parts are readily available. No franchise costs, no expensive parts to replace and no huge investment. These machines can also be sold on the second hand market when you want to dispose of them due to upgrades, etc.

 

That would be my preferred choice.

[scubascuba3]

6 hours ago, blackcab said:

Why not do the same thing but use LG top loading washing machines with a coin box on the side? In Bangkok, a new LG 10kg machine costs 12,500 baht delivered and installed including the coinbox (you need to supply the water supply and waste supply).

 

You get a warranty for the motor and parts are readily available. No franchise costs, no expensive parts to replace and no huge investment. These machines can also be sold on the second hand market when you want to dispose of them due to upgrades, etc.

 

That would be my preferred choice.

the reason people go to these Otteri type places is they are side loading and have hot water, far superior to those outside LG top loading ones you see everywhere

[Pravda]

My gf has a few machines in a condo building.

 

She paid off her investment in 6 months, but only because her friend owns the actual building and she pays no rent.

 

I have no idea if it would be profitable or not but it surely is low maintenance side gig. Actually no maintenance at all.

 

 

[CGW]

If there is a laundry shop "next door" that washes and irons your clothes for the same price? I know where I would be going, that is why they have never caught on in the past.

[ukrules]

On 1/3/2020 at 2:28 PM, rech said:

What do you think about these new laundromat

There's nothing new about them.

 

I'll tell you how they do it though.

 

You provide the machines, water filters and tanks (no filters and your machines won't last long) and you then do a profit share with the land owner. You also pay the electric and water costs before the profit is split into whatever ratio you've negotiated.

 

If they want rent then don't split any profit with them. The greed instinct kicks in once they hear about percentages.

 

This provides a passive income for the shop owner with no risk to them and no cost apart from equipment to you and you can remove it and put it somewhere else any time you want if it's not profitable.

 

Then be ready to maintain and clean the things constantly.

[TallGuyJohninBKK]

The wife and I needed to wash and dry some bedding lately that wouldn't fit into our home washer, and we wanted to have it machine dried, not air dried, so we went out looking in BKK.

 

Found a staffed laundry shop on Suk Soi 15 that offers full service, but also the option of self service (not coin operated) for both washing (no hot water) and drying with good-sized commercial machines -- 70 baht per cycle self serve.

 

Nearby, we came across an outdoors place where some laundromat company had installed a whole bank of coin operated washers and dryers along a wall in front of a commercial business. No staff there at all, entirely self serve. Just a coin change machine. The rates at that place were 100 baht per wash or dry cycle, but I believe the wash cost included automatic soap dispensing.

 

When we traveled back to the U.S. late last year, a couple motels/hotels we stayed at hand their own self-serve coin operated washers and dryers on site for guests. The rates there were typically $2 U.S. (or about 65 baht) per wash or dry cycle.

 

Finding a hot water wash laundry place here seems to be very much the exception to the rule.

 

 

[PatOngo]

If you want to come out with a little money, just make sure you start with a LOT!

[scubascuba3]

28 minutes ago, CGW said:

If there is a laundry shop "next door" that washes and irons your clothes for the same price? I know where I would be going, that is why they have never caught on in the past.

it's not the same price though, Otteri 40 baht for 10kg wash 10 baht for detergent and softener. Laundry shops lowest price is 70 baht a KG

[NiwPix]

9 hours ago, blackcab said:

Why not do the same thing but use LG top loading washing machines with a coin box on the side? In Bangkok, a new LG 10kg machine costs 12,500 baht delivered and installed including the coinbox (you need to supply the water supply and waste supply).

 

You get a warranty for the motor and parts are readily available. No franchise costs, no expensive parts to replace and no huge investment. These machines can also be sold on the second hand market when you want to dispose of them due to upgrades, etc.

 

That would be my preferred choice.

In theory, I would agree with you, but in praxis that is a setup for failure...or at least high risk of failure.

"simple" example. Coffee shops. Could you honestly name me 1 or 2 family owned, 1-store coffee shops that has been around for more than 1 or 2 years?....and preferably successful.

I could name a few seemingly successful and semi successful coffee franchises....Amazon, Starbucks, Doi Chaang, Dao Coffee. Why is a franchise obviously so much more successful than single fmily owned shops? The most simple reason(s) is a good marketing DEPARTMENT and professionally designed outlets. Just the marketing alone, mom and pop shops generally cannot compete with.

So I think a laundry franchise would do better than non-franchise laundry franchise. Even if your service is slightly better and a few baht cheaper. The marketing department will take that advantage away in no time.

[blackcab]

7 minutes ago, NiwPix said:

So I think a laundry franchise would do better than non-franchise laundry franchise.

 

I completely agree. The only chance an independent has is getting a killer location.

 

For example, inside a 100+ room apartment building with nowhere nearby for the competition to go.

[scubascuba3]

17 minutes ago, NiwPix said:

 

"simple" example. Coffee shops. Could you honestly name me 1 or 2 family owned, 1-store coffee shops that has been around for more than 1 or 2 years?....and preferably successful.

 

Yes, Benjamet in Pattaya