The term coin laundry is defined as 'commercial-grade, self-service laundry equipment placed into service in a retail space.' Coin laundries generally occupy the retail space on long-term leases (5-15 years), and generate steady cash flow over the life of the lease. Coin laundries are unique small businesses in that they have no inventory or receivables, and no traditional employees. A minority of coin laundries employ attendants.
Coin laundries range in market value from $27,000 to $150,000, and can generate cash flow between $1,800 and $12,000 per month. Business hours typically run for 24 hours at Hostel College, hospital, apartment, military camp and shop lot rental from 8:00 a.m. to 10:00 p.m. The stores usually occupy 700 to 4,000 square feet of retail space. New coin laundries are valued based on actual construction and equipment costs; while existing coin laundries are valued based primarily on revenues. Coin laundries are perfect examples of passive-income generators. Coin laundries are also referred to as "coin-op laundries," coin-operated laundries," or "Laundromats."
Coin laundries are one part of the self-service laundry business; the industry is actually comprised of two distinct segments. The first is coin-op laundries, and the second is represented by coin-operated machines located in hostel college, apartment housing, hospital, police and military camp. This second segment of the business is referred to as the "multi laundry business" or the "coin route business." These two segments frequently overlap; in more mature markets, the self-service laundry business is estimated to be evenly split between the two. The self-service laundry market consists of an estimated primary customer base of more 5 million people living in rental housing, as of the 2005 Malaysia. The secondary customer base consists of the non-rental population, which uses coin laundries only occasionally.
Clean clothes, like food and shelter, are considered a necessity of life and coin laundries provide a basic health service for millions of Malaysians. While coin-ops are found in virtually all neighborhoods across the country, stores seem to perform exceptionally well in predominately renter-occupied, densely-populated areas. These areas are increasing in number with each year throughout the country. The intense population growth, coupled with the expansion of rental housing has increased the customer base for coin laundries.
Coin laundries thrive in periods of both growth and recession. During periods of recession, when home ownership decrease, the self-service laundry market expands as more people are unable to afford to repair, replace, or purchase new washers and dryers, or as they move to apartment housing with inadequate or nonexistent laundry facilities. The market size grows proportionately to the increase in population. Revenues of a coin laundry rarely vary from month to month. The public will always need this basic health service people always need wash clothes!
'Coin-Op' development system utilizes the analysis of demographic variables, traffic pattern, ares shopping patterns, ingress and egress analysis , road visibility analysis and a detailed feasibility study o that store locations are systematically selected for coin-op laundry success.
