![]() To improve customer experience, Jono installed audio cameras in the store and added QR codes to the machines. When machines at a self-service laundromat don’t work, customers tend to get anxious because there’s no one there to help them. People who use laundromats are typically happy with the bare minimum, i.e., a clean place and working washers and dryers. Improving Customer ExperienceĪnother thing that Jono noticed was how customers don’t really have high expectations when it comes to laundromats. So, Jono built a website, which made a huge difference in terms of how people living nearby found out about the laundromat. Jono also noticed that the laundromat had zero web presence, explaining that the previous owner wasn’t interested in marketing and didn’t know much about the internet.īecause of that, the laundromat didn’t actually have a website, and it had a resident-generated Google My Business page that didn’t even have the right business name on it. Now, 70-80% of the laundromat’s payments are made on card. They can just tap their card,” Jono explained.Ĭashless payments were a learning curve for some customers, but customers who knew how to do them didn’t hesitate to teach the non-tech savvy ones. “People were happy to come in and not have to break a note or go to an ATM. So, he implemented cashless payments, and it made an impact almost immediately. One of the things that stood out to him was that the laundromat was cash only, which Jono says simply wouldn’t fly in Australia. Jono wasted no time making improvements when he took over the laundromat. Therefore, the security of a lease is really important in a laundromat deal. With a laundromat, it’s more complicated than that because you need plumbing. “If you sell shoes and your lease runs out, then you can rent the shop next door and just move your boxes into the storeroom,” Jono explained. The laundromat also had four years left on the lease, which he was really happy with. Jono thinks the purchase price is quite reasonable because the laundromat had 12 commercial washers, which could have set him back AUD 200,000 if he bought them brand new. He paid the rest with a bank loan, which was anchored by an equity in existing property. He paid 20% of that amount with his own money. ![]() He took that data and extrapolated it over 12 months, arriving at 83,000 AUD. Jono personally verified that figure by counting how many customers came in to the store at different times of the day and how much they spent on the machines over a two-week period. That figure represented a roughly two-year multiple on the income from the business. Jono purchased the laundromat for AUD 83,000 (around $56,000 USD today). ![]() It also appeared to be in the right price range, so he took the plunge. He found a laundromat in Northcote, which wasn’t too far from where he lived. allow him to add value through his skills and tech (he wanted to improve the business)Ī laundromat fit the bill, so Jono checked out aggregator websites like SEEK Business to look for laundromats for sale.be non-consolidated (he didn’t want to compete with large companies).be relatively hands-off (he was working a full-time job).With that investment goal in mind, Jono created a checklist of what he was looking for in his next investment. “I want to choose how much of my time I give to people for money by the time I’m 40,” Jono said. He also invested in some properties but found himself wanting to diversify his portfolio. Jono has been investing in stocks since his late 20s. – Start your 30-day free trial today!. ![]()
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