This Laundromat Makes $3 Million?

he went from zero dollars to a laundromat that does three million in revenue in one year yep he did so i gave him 100k to grow a laundry empire or i guess a laundry mat rocket ship introducing drumroll please the fold laundry they're projected to bring in a cool three million dollars and on their path to what mark ceo says will be 50 million we're gonna break down their business so you can see how they did it and how we can too who knew folding clothes that stuff your mom didn't want you to leave on the ground it's pretty profitable so profitable in fact check it out they got like 10 bands over here all to deliver this laundry that they're throwing around inside of these washing machines at the fold today we're going to talk about money how wild when you think about it like you used to have an actually cool job right you used to do like kayaks and fishing gear right what happened what made you want to own a laundromat we thought uh folding dirty laundry would be more fun i don't think that's true we were young professionals the service didn't exist and this was around the same time that uh uber was coming out all these delivered to you services yeah that didn't exist for laundry it was really novel at the time yeah and uh we were kind of one of the first movers in the industry and now it's proven to be this established revenue stream for laundromats [Music] [Music] what's uh let's break this down a little bit how many pounds of water you guys do it's like an elephant yeah we need six to ten thousand pounds at night all of these are running basically what's the percentage you guys use every night at night we use 100 of the machines the and how many of these bad boys do you guys have about 164 machines total what are some of these costco they're expensive that's a that's a used car right there and they're getting more expensive so an average washer will cost between three and ten thousand dollars three and ten thousand dollars but i guess the cool part is that uh you can finance right and finance it they last 10 to 15 years beat the hell out of them like uh okay eight to ten years three to ten k so it's like a honda there's laundromat blenders that'll go up to tenth but yeah traditional sba works uh you can you can find us at wella for five years so these are clean or dirty these are clean these are clean all right should we see what's in here yeah let's pull some laundry we've got a lot to do okay fold some laundry huh [Music] there's so many things people don't like about laundromats right it's like you know uh they break all the time they're too expensive right now so let's break into some objections let's start with first doesn't everybody have one of these bad boys at home why does anybody name these people come to laundromat to either get it done for them or to use the high capacity machines these are really well cared for it's big bright clean and safe for the four keywords that that's laundromat marketing and do you think that market's going away of people coming into the laundromat to do it themselves i think if you looked at it as a whole it might be shrinking but what's growing faster than the self-service is shrinking is the full service so when i see laundry mats 10 years from now it's not the for car wash comparison like it's not the car wash at the gas station it's all grungy that uh you you run it through yourself it's the mr car wash where there's 60 employees in uniform doing it for you yeah so i think laundromats are growing bigger and they're trending towards more full service mr carwash went public to the tune of i don't even remember was it a couple billion i don't know it was massive and they're popping up yeah we'll put the numbers up here this is a business that multiple private equity firms have owned all of these private equity firms independently made money on both the sale of it and then some sort of dividend or distribution and they took this old car wash model that used to be the way to like these nice ones whereas you mentioned that tucked you know shirts are tucked in pull everything stacked same experience every single time almost like a franchise or a mcdonald's or whatever and you guys think that something similar is going to happen boring business layer on technology layer on full service it's exactly the mr carwash mark you're gonna make me do all this folding by myself this is how ceos work huh not something i thought i'd be doing as a private equity investor but you know what when all the other investors say that they don't do value-add i just want to know are they helping you fold underwear because i think the answer is no here we go full serve this is actually full service and do you get really particular like like how sop on how to fold everything so part of your training it's actually a digital sop so we send you the chapter before the first day of class and you have to learn how to fold before no way so am i failing every pair of underwear every bra every towel has an exacto same way okay wait we should probably go see how the pros are doing it right okay how does how does this work is i mean though she was basically saying that the process is all about showing the same love that you would for your own clothes so that the mamas can come and take care of their kids and show them some love so at your house is it this clean uh i try dude it is not this clean in my house [Music] these ladies over here who are all foaling as we're talking um like they probably know the people that they're folding laundry on better than anything else like i this is an important number for you guys this is super important number of sex toys you found in laundry overall if uh vegas had a line on it over under 20 i'd take the over yeah you learn a lot about you learn a lot about people uh folding their laundry we've seen it all you know we've seen we see the stains on the sheets we see the holes in the underwear we see everything you accidentally leave in your pockets and we have to take out so luckily standard operating procedures for all of it but yeah you definitely learned a lot about people doing the dirty work it's hysterical so i guess you get clean clothes and maybe clean sex toys on accident full service is what we're delivering here yeah the future laundry map laundromat folks it probably looks like uh for you it probably looks like nothing this is what laundromat owners love massive exhaust pipes good construction and space so every every square foot in here is usable for us this is an on deck our goal for our production line is that where housers move it from point a to point b and this is point c so every square foot to your lies so most people buy their from costco right right and you guys what do you do how does this work this is we buy in bulk we've got wholesale suppliers we pump our own gallons so even you know top tier laundry mat owners doing pick up and delivery will still go pay that disgusting procter gamble markup if you're looking at cost centers for a laundromat or wash and pulled service soap and labor are big so we were able to get in wholesale with a soap distributor and pump our own soap you know pump some soap yeah i want to puff some soap when you start your shift pump your gallon and this is how you escape the 600 markup that procter gamble likes 600 percent look at this dirty businesses all right samuel we have to be done there's no world in which i can pump any more of this last drop i'm an investor here we can't be wasting so that's pretty good so a typical laundry mat owner spends a bulk of their time just moving quarters to and from machines and taking cash to the bank right save you a ton of time if you put a hard system in 90 of our laundromat transactions are through credit card customer comes in they will swipe their credit card to add balance and they'll get an internal economy laundry card which they can use to start all the machines do you have to empty this every day uh our managers empty it every second or third day yeah so move it to the safe just to okay okay how do we get it out so we don't break it so we're gonna press this yellow button uh-huh we're gonna pull the canister off look at this but then and then we just take it out like this exactly okay [Music] so now we're going into the delivery side of the house which is basically where you do the most stuff and that's how you get to that fancy three million dollar revenue number this year all right so we come into this warehouse i like it not many laundromats have this much today so this is like full of flags and clean laundry that's going to get delivered today that's pretty heavy it is okay it's got rate prices okay 50 bucks 50 bucks all right so you basically get it delivered in through the front door and then you put it into line how does dirty laundry comes in clean laundry goes out so we've got different racking locations yeah um so basically this is also a driver doesn't have to run around and look for sally jay's order right it's all warehoused through our software to exactly the pick location that they need to go to so delivery driver comes in grabs the bags 50 bags each about 250 stocks 7 to 10 drivers 7 to 10 vans we're all over town 40 miles in every direction that's the nice thing about the delivery component yeah is that most laundromats are constrained by a three to five mile radius for all their customers and we're going out to every neighborhood and we can go grab customers in higher socioeconomic neighborhoods and bring them back to us do really supply chain minded which is one of the things i think is so cool is basically you guys think about laundromats like people think about uh an amazon warehouse you know from point a to point b there are people that have only one job which is wild one of the jobs may be pushing this like i am into samuel sam and watch out um and pushing this into the warehouse full of bags and then it might be what else what are the other ones that they do over there this is a warehouse this is logistics business yeah it's all assembly line based we have inbound loader loads dirty laundry into washing machines outbound loader loads clean laundry into dryers from the washing machine and the folders fold and we've got positions for warehousing too they're just moving bags to where they need to be in the warehouse everybody has a job and one job only and it's assembly line we run 22 hours a day wild 22 hours a day super cool isn't it we thought laundromat owners weren't that smart yeah that's amazing passive income right super passive yeah this will kind of be like in the future your thesis is that as common as it is to get pizza delivered it'll be like have somebody else do your laundry absolutely yeah i can totally see that because my husband and i were actually saying today we did laundry last night and we were like time to do laundry 45 minutes to an hour time to full laundry four to six business days like located on my bed or in the closet or wherever yep and so yeah it's kind of embarrassing and there's only two of us i couldn't imagine with kids and like little monsters running around getting dirty all the time right that makes perfect sense to me it doesn't need to be a permanent lifestyle change most of our customers use it as a get out of jail free card not a weekly subscription so life comes up you're traveling kids are busy you fell behind it's a get out of jail free card is a one-time service yeah it doesn't have to be mixed it's never going to replace your washer and dryer yeah but it's a it's it's like ordering pizza it's when you don't want to cook you have an easy get out of jail free card to take care of the chore for you i love that mario you told me that you had a ridiculous story about something you picked up yesterday what was the deal we pick up trash bags with full of clothes when with their first time customers when we got to the location the gentleman left a trash bag plus an extra trash bag and we brought one of the bags back in with dirty diapers oh no crazy stories did you have to wash them uh no no no no no actually the boss didn't thank you we got back to the shop and yeah everyone was laughing what'd you do before this um so i sold i've sold cars for about 12 14 years um and then i got into the delivery business just because i kind of wanted time to myself and i was tired of chasing the cell i came across the fold one of the owners that i met i could just relate with him you know they come from a sport background um and then the way they're building the business i i was intrigued by it so at that point i i committed nice to meet you yeah i think we've got time to deliver some laundry what do you guys think let's uh let's go show it up at somebody's house in austin and uh yeah give them some laundry bags now i'm not going to actually drive it because i think that part's kind of illegal but i'm gonna get in and then our main man mario's actually gonna drive him down you guys ready bye guys delivery special delivery the fold it's cool with you yeah logos out okay excuse me that's a wrap under max baby all right until next time do you know why i invest in small businesses well look what's happening here in this world there's no politics no tech workers complaining about how their sleeping pod isn't warm enough no crying circles these are normal everyday humans just like you and me and i want to see them win i want our operator to have a better life the people needing to use this place to do it safely and with a little love thrown in if it's true that small businesses are the lifeblood of this country of ours if we buy them and invest in them and support them it's just one less walmart on the street and that is a story i can get [Music]

Channel: Codie Sanchez

Views: 494,904

Keywords: Laundromat business, How to start a laundromat, Laundromat for sale, passive income, passive income business, boring business

Id: 6fcxFri3mq4

Length: 15min 40sec (940 seconds)

Published: Wed Mar 23 2022