3 Questions laundromat owners should ask themselves
As your laundromat equipment gets older, now may be the right time to upgrade to new, state-of-the-art machines.
Commercial laundry equipment manufacturers are introducing some of the most powerful and efficient models ever. This efficiency combined with reduced maintenance versus older equipment goes straight to your bottom-line profitability. Profitability that usually offsets debt associated with the new equipment purchase. While the main benefit of upgrading your equipment is clear, asking yourself these 3 essential questions will help you decide if now is the perfect time to re-tool your laundromat.
- Are your machines older than 10 years?
The typical life cycle of laundromat equipment is about 8-10 years. Downtime for repairs of older equipment will likely eat into your profits as your laundromat’s capacity becomes limited. An “Out of Service” sign on your equipment may also turn away customers – especially during peak hours as they are unable to find an available machine.
- Do you have a long-term lease or own the building?
Having a long-term lease in hand gives you the security of knowing that there is enough time to make an acceptable return on your re-tooling investment. Additionally, if you are seeking financing for your re-tooling, a long term lease or owning the building may make you more attractive to lenders.
- Are you planning on keeping your store?
In making the decision to re-tool, you should carefully consider what your ownership plan is for your laundromat. Are you upgrading with the goal of making your business more efficient, saving on utility costs and reducing downtime as part of your long-term ownership plan?
Why re-tool? Here are a few more reasons:
- Save on your utility bills – newer and more efficient machines will save you money on water and energy.
- Easier on the environment – always good for business and your customers will be happy to know they are helping the environment too!
- Your customers are likely to like the refresh to your store.
- Stay ahead of the competition – while your competition hangs on to older and less efficient equipment, you’ll be positioned to reap the benefits of increased profitability and customer satisfaction from your new machines.
- Less frequent breakdowns – not only are your new machines less likely to go out of service for repairs than the old ones you replace, the fixes are probably easier and less expensive too.
At Eastern Funding, we can help you as you decide whether to re-tool. Should you decide to re-tool, we offer a wide range of flexible financing options for new equipment.