Demographics- A Key Factor In Any Laundry
A couple of years ago there was an article in Planet Laundry. It was actually a question as part of an article:
“I was interested in buying another laundry, but after checking the financial statement and the utilities, I noticed a considerable drop in volume over the last three years. The store looks to be clean and in good working order. And there aren’t any new stores in the area. What’s the problem? Can I increase the business?
If the store is in good mechanical order and kept clean, the problem is likely a drastic change in the local population and demographics. Perhaps a large portion of the store’s customer base has moved out of the neighborhood. In recent years, this has been especially common in strongly Hispanic areas, where the job markets have dried up. Another possibility is that the neighborhood going through a gentrification process, and converting from a low-income area to a high-income neighborhood. In such neighborhoods, the people moving in will remodel and most likely install their own washers and dryers.
Look more closely at the demographics for this store. You certainly don’t want to be in a market where laundromat customers are moving out.”
Many factors can be the reason for a reduction in a stores volume. It’s easy to see if it’s because of the cleanliness of the store of the equipment but it becomes the chicken and the egg question.
Is the store run down due to lack of customers or is did the lack of customers cause the store to be run down?
Always check the demographics for any store or location. It doesn’t hurt to check them on your own stores every 3-5 years.
If you have any comments please post them below.
Ken Barrett
800-792-1941 ext 2
Ken@WashinCoinLaundry.com
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