Laundromat business has buyers in a spin

Media Release

Laundromat business has buyers in a spin

Gisborne’s only coin-operated laundromat has been placed on the market for sale, offering potential new owners a cash-generating business with the opportunity to expand.

The Laundromat, located in a busy central shopping centre at 103 Wainui Road, is a multi-faceted business including clothes washing services, internet provider and coffee facilities. It is being marketed for sale by Bayleys Gisborne.

Open seven days a week from 7am – 10pm, customers can wash and dry their clothes using 10 coin-operated washers and dryers, at a cost of $3 per wash for top loading machines, $8 for commercial size front loaders, and $2 for dryers.

The business has been set up for client comfort, with internet café and a coffee machine available, both also coin operated, as well as a children’s play area.

Bayleys Gisborne salesperson Colin McNab said the tidy, well-run business had points of difference that made it stand out among other laundromats in the city.

“It is the only cash-operated Laundromat in Gisborne, with other operators using tokens or a charge key system where users buy credit at another location. The driers are gas fired, and are more efficient and cost effective compared to power-operated machines.

“The Laundromat also includes a large capacity Rheem hot water cylinder providing hot water for delicate wash cycles, unlike other laundromats in Gisborne, which only offer cold water,” he said.

During wet weather the business is particularly well-patronised as there is heavier demand for clothes drying. The service is particularly popular with many members of the city’s various soccer, rugby and rugby league clubs.

“A lot of sporting clubs roster the washing of team kit to players throughout the season. The wetter and muddier the season gets, the dirtier the playing kit gets.

“For many players on washing duty, it’s simply a matter of convenience to have the whole team’s gear washed and dried in one go rather than interfere with the weekly domestic washing at home. And besides, having 11 to 15 jerseys and shirts hanging on the line at home takes up a fair bit of space.”

The business is for sale for $210,000 (plus GST if any), including all chattels and equipment except three computers, which are leased. The cash-only business has no debtors, and requires little input from potential new owners, but also has the potential to be expanded to generate additional income, said Mr McNab.

“Operation of the business only requires a few hours of work a week for cleaning, checking and general maintenance. Existing part-time staff are paid to clean, open and shut the business.

“The owners have set up an internet café area with leased equipment, which generates a steady income. This revenue stream could be increased if the computers were owned rather than leased.”

The net annual return of the business is approximately $60,000. This figure is expected to increase in the next financial year.

The annual net rent is $12,600 (plus GST and outgoings). The three-year lease was renewed in September last year and has two more three-year terms remaining, but can be extended further if required.

Centrally located, The Laundromat is a few hundred metres from Gisborne’s CBD in an area with one of the highest traffic counts in the city. It is easily accessible for customers and has free parking.

Since starting the business five years ago, the owner has developed it to be user friendly, with systems in place to ensure the premises kept tidy and operating well. Due to commitments with other business interests the vendor has put the property on the market for sale.

“This business would be ideal for someone who wishes to be occupied for a small amount of time daily, a person working full time or even operated remotely, as long as trustworthy staff are retained,” said Mr McNab.

The washers have recently been serviced as part of general maintenance to ensure all are running well for a potential new owner. The rear of the machines are easily accessible via a hallway and back storage room, for servicing and inspections.

The existing owners have a good relationship with the Lotto Four Square shop across the road, where customers can exchange notes for coins and it in turn gains extra trade. The two shops have similar opening hours. A change machine included with the chattels is not yet operational, but will improve efficiencies of the business when installed, said Mr McNab.

The spacious rear of the building includes an office, storage, toilet and shower. A number of chattels are included in the sale. Among these are a CCTV and alarm security system, coin operated soap dispenser, computer stools, Kenwood sound system, coin sorter and counter, coin operated WIFI unit and a children’s playpen.

Sudsational: The Laundromat in central Gisborne is on the market for sale with Bayleys

ENDS

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