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franchise.co.nz – PUTTING PEOPLE IN BUSINESS
ith slowing net migration, the rental market is pretty flat around most
of the country at present, prompting landlords to look for other ways
to realise a return on their investments.
“Yes, property offers capital gain in the good years, but it can be quite
high risk, and high maintenance too,” says Royce Little. “That’s why it’s
no surprise that we’ve seen more and more people turning to
Speed Queen recently.
“We have one client who was so pleased with his first laundromat that
he set up a second, then a third, fourth and fifth. He sold up all his rental
properties and now focuses only on laundromats. That might surprise
some, but not us – we’ve proved again and again that, set up properly,
Speed Queen-equipped laundromats can offer a 20-30% return on
investment. With cashless payment and remote operation, they are a
semi-passive investment.”
Royce is head of laundromat sales for Speed Queen, the oldest and largest
manufacturer of commercial laundry equipment in the world. “Despite
being founded in 1908, we’ve always been at the cutting edge of technology
and trends. That’s why our operators continue to make big profits,” he says.
“Our modern laundromats offer technological advances that have been big
game changers for the industry. By offering cashless payment and remote
operation, laundromats have become even more attractive opportunities for
owners as investors. And because you don’t need expensive high street or
mall locations, Speed Queen’s partners are reaping the rewards of us being
ahead of the game.
“That’s why we say Speed Queen is a perfect model for anyone seeking a
semi-passive income.”
Cashless means payment assured
“From an investor’s perspective, cashless payments offer a lot of benefits,”
explains Royce. “For a start, with no cash on site there are no security
issues. There are no worries about handling, collecting and banking
coins, either.
“That’s why we developed our own sophisticated system for laundromats,
which allows not just for cards but payWave and Apple Pay, too. You don’t
need pockets full of heavy cash to be able to wash your clothes anymore.
And, for our investors, it means the payments go directly into their
accounts with no risk of default – not like being a landlord!”
Remote operation
Speed Queen offers another massive benefit to prospective investors:
remote operation. “This has revolutionised the way owners interact with
their businesses – you can sit in Kerikeri and watch the profits flow in from
Invercargill, if you like,” says Royce.
“Via the internet, you can have complete visibility of all operations in your
store from wherever you are: how many cycles each machine has done,
when the peaks and troughs of the operating cycle are; and if there’s been a
very rare fault or issue. If there is a blocked drain, for example, the machine
will message you immediately to let you know.
“Even if there is a fault, it’s not a problem – we have servicing agents in
every town in the country. They rarely have a lot of work to do for Speed
Queen, though, because our equipment is pretty indestructible! Our
machines will work reliably, day after day, for an average of 15-20 years.”
Better than a franchise
Speed Queen is not actually a franchise – you operate under your own
brand, but Speed Queen provides all the help you need to get up and
running. This covers everything from site selection according to proven
demographic and parking criteria, to meeting council regulations and
launching your business.
“We carry out a full feasibility study on any site, looking at the demand and
potential capacity of turnover versus fixed costs to ensure the right mix of
equipment in the right place,” says Royce. “By putting in bigger capacity
machines, customers can do their whole week’s washing in an hour, and
enjoy free wi-fi while they wait. It’s an approach that has proved incredibly
reliable and has created a perfect semi-passive investment opportunity.”
A medium-sized laundromat requires a total investment of $250-350,000,
much of which can be financed. The deposit required is $100,000. “The
return on the total investment is in the region of 20-30%, and we’ve had
some owners do much better than that,” says Royce.
“This is an excellent opportunity that suits investors looking for an
alternative to property,” Royce explains.
“We want to hear from anyone who has
the desire to build a successful business
in any part of the country… and you don’t
even need to move!
“Whatever your situation, give me a call.
Let’s discuss how Speed Queen can
help you.”
Speed Queen
www.speedqueen.co.nz
Contact
Royce Little
09 528 5600
royce@speedqueen.co.nz
Advertiser Info
BETTER THAN A RENTAL
Opportunity: Retail
Landlords turning to Speed Queen
laundromats to provide good returns.