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Setting the Record Straight with Andrew Cunningham — Transcript

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0:00If you find something you really like,
0:03tie [music] it up. Don't wait for this
0:06or don't wait for that. Make it subject
0:07to a lease that's acceptable. Make it
0:09subject to verification of the equipment
0:12or verification of the utilities or
0:13veric of the revenue. Make it subject to
0:16bank financing. Even if you're going to
0:18pay all cash, tie it up. You're going to
0:22come to me in 6 months and say, "Andy, I
0:24still haven't found anything." And you,
0:25you know, I should have bought that
0:26laundromat that you and I talked about
0:28six months ago. I can't tell you how
0:30many people have said that to me. Don't
0:32be afraid to pay a little bit more for
0:33the laundromat because that's
0:34opportunity. So, lease, financials,
0:37equipment, location, growth potential,
0:40and opportunity costs. This is an
0:42opportunity cost.
0:44What do you think is the most important
0:46or one of the one of the most important
0:48things that existing owners need to be
0:51either thinking about or doing right now
0:53[music] to not get left behind as things
0:55are changing pretty rapidly in our
0:57industry right now? I I think that they
0:59I think that everybody should be um
1:02>> Hey, what's up guys? It's Jordan with
1:04the Lawnmat Resource Podcast. This is
1:06show 240. I had to go look it up. I'm
1:10losing count. There's too many uh for my
1:12fingers and toes these days. Uh but I'm
1:15super pumped that you're here today cuz
1:17today you know him, you love him. He's
1:20the human laundromat encyclopedia.
1:22Andrew Cunningham back on the show to
1:25talk all things. If you guys don't know
1:28Andrew Cunningham, this is a going to be
1:30a treat for you. And if you do know who
1:32Andrew Cunningham is, this is also going
1:34to be a treat for you. It was a treat
1:36for me. Always grateful for Andrew
1:38coming on the show. Uh listen, I don't
1:41want to, you know, create any further
1:44ado. I don't [laughter]
1:47I don't think that's the right way to
1:48say that. But anyways, uh I want to jump
1:49into it right with Andrew. Hey, I just
1:51want to point out real quick, we've got
1:53a bunch of free resources at
1:54lonerresource.com/resources.
1:56Just go check them out over there.
1:58Browse around on the website. There's a
2:00whole bunch of stuff to help you get
2:01started or
2:03give you a rocket boost on your
2:06laundromat journey. So, depending on
2:07where you're at, go check it out.
2:08Lawnmatresource.com.
2:10Let's jump into it with Andrew
2:12Cunningham back on the show. Andrew
2:15Cunningham back on the show, man. How
2:17you doing?
2:17>> I'm doing great. How are you,
2:20>> D? You know what? Anytime I get to sit
2:21down and talk mats with you, I'm having
2:24a great day already. So, I'm I'm
2:26excited.
2:27>> I agree. You know, you've been around
2:28the world a few times and uh you've got
2:31some really interesting uh podcasts with
2:33other people and their experiences. And
2:35I like the idea that people are sharing
2:37more and more about this industry. Uh
2:40the smarter we operators
2:43become, the better off we're going to be
2:45in the long run.
2:46>> That's right. And uh it's it's important
2:49to stay enlightened in what's going on
2:50with what's happening in industry. And
2:53uh the reason why we're going to talk
2:55today is a couple things that I've got
2:56on my mind that I haven't been able to
2:58talk to pretty much anyone with. And so
3:00I figured well I I'll come in and twist
3:03your brain since you hear a lot of
3:04things.
3:05>> That's right. Well,
3:07>> listen, man. There's anybody who you can
3:10gripe about this industry with. Uh and
3:12uh it's me, man. I I love uh talking the
3:16good things and the bad things and and
3:18talking about how we can make these
3:19things better and how we can make it
3:21better for owners, how we can make it
3:22better for people getting into the
3:24industry. And uh I know we share that
3:26>> that desire, that passion. So, uh what's
3:29on your mind, man?
3:31I said, what's on your mind? I mean,
3:32that's a little bit of a scary question
3:34to ask you what's on your mind, but
3:36>> there's a lot on my mind. Um you know,
3:38it's interesting. Um you know, I get a
3:39lot of questions these days about wash,
3:41dry, fold.
3:42>> Yeah. and and it's a it's a topic that
3:45um we're all still learning about and
3:47you know um
3:51some of the biggest things that that I'm
3:53faced with when people want to grow
3:54their business, they want to get into
3:55the wash, dry I fold business and um
3:58they have an existing laundromat and
4:00when you look at the existing
4:01laundromat, there's really no room
4:04to do what they want to do
4:07>> to do it
4:10efficiently. I won't say poorly, but
4:13efficiently because you need a place for
4:16somewhere to drop it off. You need a
4:18place for a scale if you're using a
4:19scale or if you're using bags and you're
4:22just charging per bag. But you also need
4:24a place to store the finished product.
4:26And then you need rules and regulations
4:28for the employees about when they can do
4:30wash, dry, and fold. What machines do
4:32they use for wash, dry, and fold? Um, if
4:35you're at a card system, you're in a
4:36better off because they can start the
4:38machine. you know what machine they're
4:40starting and what it's costing them. If
4:42it's cash, you don't have any really uh
4:46uh uh uh restraints on it. Some cash
4:48gets walking.
4:49>> Yeah. No cash accountability there.
4:51>> Yeah. And um and then you also have I I
4:54don't want you to do laundry when it's
4:56busy. Well, they don't know what busy
4:57really means.
4:59>> Um and you know, they may have uh two or
5:01three machines they're using, but
5:03they're spread out over the whole store.
5:05Um and and and then do you do the the
5:08business at night and now you got more
5:10labor hours so you got more cost
5:12associated with that product. And then
5:14where do you store the product and how
5:15many days product do you store? What's
5:18the average
5:19turnaround for someone to come back and
5:21pick up their clothing once it's done?
5:23And so you start to cannibalize the
5:25existing self-service with is I think I
5:28could take out a couple of dryers. Well,
5:29if you take out a couple of dryers now,
5:31you're going to upset the balance
5:33between the poundage for my washing
5:35machines and the poundage for my dryers.
5:37And you know, okay, well then I'll add
5:39some bigger dryers. And you go, okay,
5:41but you're really only gaining 15 lbs
5:43per dryer if it's a 45 lb stack or it's
5:46a 50 lb 20 lb. So, how many more of
5:48those do you have to put in? And the
5:49next thing you know, it's a 50 or
5:51$60,000 hit for five more machines or
5:54whatever the case may be. And it's
5:56starting to not make it look profitable.
5:58So you kind of pull the reinss back. So
6:02the question is is that what I thought
6:04of is that at all these seminars and I
6:07haven't been to one and I probably will
6:08be going to a couple but all these
6:11experts in the seminars that they're
6:13putting on in uh oh I see ten and
6:17Nashville and across the United States
6:18and Texas whatever. When you go to these
6:21seminars what are they talking about?
6:23How to do laundry quicker more
6:24efficiently? How to raise prices? How to
6:26market? Are you talk where's the growth?
6:29And if they're talking growth, what are
6:31they talking about growthwise and how to
6:34take existing things that we have and
6:36use them and expand it from there as
6:39opposed to
6:41trying to grow it by adding another
6:43location? Well, you're going to add
6:44another location. You still have all the
6:46utilities, all the startup costs, all
6:48that. So, you you're you're up against
6:50the wall that every laundromat owner is
6:52up against. If I want to make my own
6:54laundry, what's it going to cost to
6:55build a new laundry? So, those are some
6:57of the things that I get asked weekly
6:59from my customers
7:01>> that, you know, it's it's it's a it's a
7:03conundrum.
7:05>> What have you heard or what have you
7:08>> Well, you know what's interesting? I
7:09mean, it's interesting you bring this up
7:11because and and by the way, this is uh
7:14you know, Andrew has mats unfiltered.
7:16This is mats unfiltered. We have not
7:18prepped this. We can just wrap on
7:20laundromats all day long. So, you're
7:23getting the uh laundromats unfiltered
7:24here with the Andrew Cunningham. Uh, but
7:27it's interesting you bring this up
7:28because I've actually been uh having
7:31more and more clients who are interested
7:34in building from scratch uh in in you
7:39know in Midwest markets but also in
7:41coastal markets uh which I would say
7:44happens less so or has traditionally at
7:46least happened less so because it's
7:47expensive in a lot of the coastal
7:49markets. But I think one thing we're
7:51bumping up against and you're kind of
7:53dancing around this too is we've got an
7:56aging infrastructure of laundromats in
8:01our country right now where um yes I
8:04mean like pipes and stuff are getting
8:06older. But what I mean by aging
8:07infrastructure is most of the
8:09laundromats that were built in a lot of
8:11these places were built for a different
8:14kind of laundromat business than we're
8:17running these days. Right now, we're
8:19running larger machines. We're running
8:22more machines. We're doing wash and
8:23fold, pick up and delivery. What's the
8:25biggest constraint, the biggest
8:27complaint from anybody who has a wash
8:29and fold or pick up and delivery?
8:30Storage. And the reason for it is stores
8:34were built smaller. They were jam-packed
8:35with machines. There was no forethought
8:38into storage on the wash and fold. And
8:41so, you know, a lot of people are
8:43actually just looking at the laundromats
8:45around. Number one, they're really hard
8:46to find right now to buy them. Um, in
8:49fact, um, by the time this comes out at
8:52least, that I will have had a video out
8:53that goes through our insane system that
8:57our team goes through to help people
8:58find a laundromat. We have an insane
9:00system, but that's what it takes to find
9:02laundromats for clients these days. And
9:03if you're looking too, uh, it's it's
9:06tough to find them, right? So, even if
9:07you can find them, they're priced high
9:09and they have this sort of aging
9:12infrastructure. They're built for a
9:13different business model than what where
9:16our industry is heading right now. And
9:18it it's tough. This is tough to navigate
9:21all this.
9:22>> Are you So, we're going to touch on a
9:24couple of things that you just mentioned
9:25now because coincidentally that I have
9:27on my cheat sheet here, but are you
9:29specifically dealing with self-service
9:32or wash, dry, and fold? Are you finding
9:34more clients calling you up and you go,
9:36you know, I like self-service, but I
9:38don't want to pay the price for that
9:41for that store because it's it's it's
9:43it's not worth it. And so, am I better
9:46off finding a thousand square foot uh uh
9:49industrial building and opening up my
9:51own wash, dry, and fold because I really
9:53just want to be in the wash, dry, and
9:55fold business. I don't really want I I
9:57don't mind being in self-service, but I
9:59don't want to pay the price to be in
10:00self-service.
10:01>> Yeah. Yeah. What's the cost of startup?
10:04So, are you seeing an influx of people
10:07calling you up and going, "Hey, do we
10:08have any just washd dry fold
10:09facilities?"
10:10>> Uh, some Yeah, some. Yeah. But I I mean,
10:13I think here's the thing is that all the
10:15social media hype right now is on
10:17laundromats, right? And and like
10:20laundromats specifically, and I guess by
10:23by that I mean mostly self-s serve is
10:25highlighted the most. Collecting the
10:27coins, showing the fat stacks of cash,
10:29talking about how we left our 9 to5. So,
10:31I mean, I think that's the biggest hype,
10:33but I see a huge influx of people coming
10:37in trying to start a pickup and
10:38delivery, bootstrapping it. Um, either
10:41doing it somebody else's laundromat or
10:44picking up a couple machines in their
10:45garage or something like that. We've had
10:47a couple of them on the on on the show
10:48here. Um, and I I am seeing more, but
10:52still not very many people who are like,
10:54I want to go build uh I want to go build
10:57a a pickup and delivery warehouse. uh
11:01processing plant. Um I have I have two
11:03clients like that right now that are
11:05looking for that but still not a lot
11:07compared to people looking
11:09>> Yeah.
11:10>> I have something for them.
11:11>> Awesome.
11:11>> I won't let it out today but I but you
11:13and I will talk privately. I have
11:14something for them and then that's part
11:16of this this this feel about about what
11:19are they talking about in these
11:20seminars.
11:21>> How are they talking about growth and
11:22how do they expect to get growth?
11:23because I personally believe that the
11:26wash dry fold income as it is right now
11:31based on selfservice so the total number
11:34I think that it's probably you're
11:36looking at about a 6040 60% uh
11:39self-service and 40% wash dry and fold I
11:42believe wash dry and fold will eclipse
11:45>> selfree
11:46>> I think that the the the younger
11:49generations um are not interested in
11:51doing laundry on the weekends or during
11:53during the week. Uh they they want
11:55somebody else to do it and
11:57>> they're going to go do something else.
11:59But
11:59>> here's the thing. I I don't think I
12:01qualify for the younger generation
12:02anymore. And and uh I also don't want to
12:05do laundry on the weekend. So I I don't
12:07think it's just the young I I know
12:08you're saying like that's the trend.
12:09That's where it's going. But here's I'm
12:11curious what you think about this
12:12because here's another um thing that I
12:16think we might be heading towards right
12:18now is it might be necessary
12:21for most laundromats or at least many
12:24laundromats to have
12:27a a larger wash and fold or pick them
12:29and delivery business in order to make a
12:31living. Like I'm watching uh machine
12:34prices go through the roof. Just talked
12:36with a client yesterday who they they uh
12:39bought and retoled a laundromat last
12:41year. They're doing it again right now
12:43and they got an equipment quote for an
12:45ident identical uh equipment mix. Same
12:48exact distributor. Uh no no new versions
12:53of the equipment or anything like that.
12:55$120,000 more this year than last year
12:58for that same quote. And we're seeing
13:00those prices going up. Obviously, like
13:03rents are going up, utilities are going
13:05like expenses are are tough right now.
13:07And I'm wondering if we're going to get
13:11forced [snorts] into having a wash and
13:13fold business here pretty soon,
13:15especially in the bigger markets. I'd
13:16say
13:17>> I would agree. I think that the the
13:19social economics that you just
13:21explained, as well as the the the
13:25lack of space in the existing
13:28>> Yeah.
13:29um are going to create that need. It's
13:31it's it's it's a it's it's a real thing
13:33that's happening here and it's something
13:35that needs to be addressed.
13:37>> Yeah. Which by the way, I mean, this is
13:38a little teaser and you and I can talk
13:40offline. We haven't really talked about
13:41this yet, but I'm I I've got a potential
13:44solution to to that issue as well. I
13:46know uh you've got some ideas, too.
13:48We've talked about a little bit of that,
13:49but uh I I got some stuff to share, too.
13:51It'll be coming out here not too long,
13:53but I'll I'll I'll fill you in before we
13:55go public with it, for sure.
13:56>> Right. Yeah. Oh, yeah. [laughter]
13:59Okay. Um, so, so that that covers that
14:02covers that topic. The next topic that I
14:04wanted to talk about was, you know, um,
14:09it's near and dear to my heart because I
14:10I haven't seen anybody address it yet.
14:13And, um, and I'm going to share this
14:15with everybody out there. And so,
14:16anybody that wants to have a
14:17conversation with me on it, don't don't
14:19be shy. Zing me. Just send me questions
14:22left and right. This industry is in dire
14:25need of a a service and repair company.
14:30Dire need.
14:31>> Yep.
14:32>> And the only way it's going to work is
14:34if you give them part of the company so
14:37that they don't leave you in in a year
14:39and a half after they've get all their
14:40knowledge to go out on their own. You
14:43got to make it fat enough to where hey,
14:45everybody's going to make some money
14:46here. But I mean, there's only a handful
14:48of installers. [snorts]
14:51Good luck getting them in at any given
14:52time. And on any given time, any
14:54installer that you have is going to get
14:56a hit. It's going to take a hit. They're
14:58going to get dung for not being there on
15:01time, working on another project, trying
15:04to finish up. They've got six or seven
15:05deals going on cuz they're trying to
15:07live, too. And you need four four dryers
15:10installed. It takes forever. Or you need
15:13something repaired, god forbid, and try
15:16to get a mechanic in there. Try to get
15:19them in there with the parts.
15:21>> Mhm. and then the time it takes to do
15:24it. So if someone came to me today and
15:26said I want to make a lot of money and I
15:27want to be in the lawn man industry, I'd
15:29say I'd start my own service company
15:33and I would and I would make keep it
15:35small to begin with and I wouldn't just
15:37limit it to washers and dryers. and I'd
15:40branch out and it would be security and
15:42it would be the cameras and it would be
15:43in the cloud and it would be the voice
15:45down and you would sell your own have
15:47your own subscription on a monthly basis
15:50and you'd have trucks that went out and
15:52just handled the cameras. You'd have
15:53trucks that went out and just handled
15:55the equipment and you keep it small so
15:57you can replicate it and then someone's
15:59going to come along and go, "Does this
16:00really work?" And you go, "Yeah, here it
16:01is. I got eight employees. I got four
16:03trucks and this is what we're doing."
16:05And they're just going to put the money
16:06in and expand it. But this what's really
16:09needed in this industry in the big
16:12picture because there's nothing out
16:14there and the guys that are out there
16:15now are already in their 40s
16:18>> or later.
16:19>> Yeah.
16:20>> Or later. And it's and
16:23you're you're not going to get what you
16:24need. And so if you want to do it, and
16:26most of the owners will say, "Well, the
16:28big the chain guys, and this is I like
16:31this, the chain guys, anything east of
16:34Colorado, cuz everything west of
16:37Colorado, you don't see a lot of chains.
16:40You see more chains in the Midwest and
16:41the East Coast, you know, you got a guy
16:43that's got 40 40 stores. In California,
16:46I know there's chain operators, but
16:48there aren't a lot of them. And a lot of
16:49the chain operators are three or four
16:51unit, 5 unit operator. They're not 10,
16:5315 or 20 unit stores. I mean, chain
16:55operator.
16:57Most of them have a in-house service and
17:00repair. But for the mom and pops that
17:02have one and two stores, they rely on
17:05themselves to be a handyman and they
17:07rely on themselves to be able to do some
17:10of the minor repairs, not a bad thing.
17:12But for the major repairs, which every
17:13laundromat has over time, they're sunk
17:16and they have to wait. And what suffers
17:19is your pocketbook suffers because you
17:20can't have that equipment fixed in a
17:22reasonable amount of time. Customers
17:24walk in, they don't have faith in the
17:27fact that your machines are going to
17:28work and therefore they're going to go
17:29to somebody else who's got newer
17:31equipment, not because it's newer, but
17:33because it works and and and that's
17:37where you're at. And then you struggle
17:38to find a guy to keep them. And you
17:41might pay him some more, which would
17:42probably wouldn't hurt. But that's the
17:44biggest challenge I see in this industry
17:47going forward besides the wash drive
17:49full which you talked about. But the
17:50reality of it is we need to find or
17:53somebody needs to step up and start the
17:54service and repairs and make it work
17:57because we can't fix everything else we
17:59have out there right now.
18:01>> Yeah. Well, I listen, I know you and I
18:04have had conversations over the last
18:06maybe couple years about putting
18:09something together there. And uh I you
18:11know, listen, I'm just going to put it
18:13out there. Uh anybody out there who's
18:15like, "Hey, I want to join these two."
18:17And I think I think we need one more to
18:19get us going and get us in the right
18:21direction. Somebody's out there and it's
18:23like, "Hey, the three of us can can get
18:26this thing off the road. I'm I'm in."
18:28Shoot shoot one of us an email.
18:29jordanatresource.com.
18:31Andrew is at LaMats unfiltered. Uh
18:34laundromats-unfiltered.com.
18:36Right.
18:36>> Right.
18:37>> Uh yeah, connect up with us if if that's
18:39something that piques your interest
18:40because I think it's a huge
18:42uh I I'll call it an opportunity, but
18:44only because I'm putting a positive spin
18:46on a huge problem.
18:48>> Uh and and you know, the the problem is
18:52real. And I, you know, I refer clients
18:56out to service, uh, you know, repair
18:59techs right now all the time, but if I
19:02can, but most of those guys are already,
19:05they're full, man. They don't have
19:07>> I didn't get a call back.
19:08>> Yeah,
19:10>> it's not my company. I don't know what
19:11to tell you. I mean, let me try to find
19:14somebody else for you. But
19:15>> yeah, they're they're full. and and it's
19:18because you know there's plenty of
19:19business out there cuz you know you
19:21mentioned they're they're all 40 40 plus
19:23most of them. Uh but but the other thing
19:26of it there's not enough of them like
19:29even whatever age it doesn't matter what
19:3280 doesn't care it doesn't matter 20 uh
19:34there's just not enough of them out
19:36there and so it's a huge problem um and
19:40and I can say confidently I know you can
19:41say this too but I can say confidently
19:43it's not a Southern California problem.
19:46This is a nationwide problem.
19:48>> I was just going to say that. I mean, I
19:49would love to have input from Texas and
19:52and Oklahoma and New Jersey and
19:54whatever. I think that we're not this
19:56isn't isolated. This is something that
19:59needs to happen. And there's companies
20:00out there that, you know, are looking
20:02for expansion
20:04>> and and this would be, you know,
20:07you you could take just an appliance
20:09company that fixes equipment and say,
20:11"Hey, you've got the vehicles. You want
20:13to stay busier?
20:16We'll show you how to do it. I mean,
20:19>> yeah. Or maybe we just go out and
20:21acquire some of these appliance
20:22companies.
20:22>> Well, that would be then another one to
20:24look at, you know, and I'm sure there's
20:25a couple appliance companies that are
20:26for sale. The guy's worn out and he's in
20:28his 60s or 70s and he wants out and he's
20:31tired of it and, you know,
20:34>> but but it is, I think, one I think the
20:36number one issue uh when it comes to uh
20:39the operational aspects of the lottery.
20:40I think we're nailing down the POSOS
20:43systems, the card systems, and the
20:45verifications of this and tightening up
20:47on this and labor on that. We're doing
20:49our best to cut back on utilities. Um,
20:52putting all the energy efficient things
20:54together. And I think this is this is
20:56just the one big glaring hole that uh
20:58that that really absolutely needs to get
21:00uh uh looked at and and try to figure
21:02out. It's not going to happen overnight,
21:05but at least, you know, we're going to
21:06address it here. Well, it's a it's a
21:09potentially fatal point. It's like the
21:11the weakness in our armor here because
21:14we can't we can't run laundromats if we
21:18can't get them repaired, right?
21:20Distributors can't sell laundromats.
21:22Manufacturers
21:24>> will not be able to manufacture more
21:26machines because they're not getting
21:27sold because they can't get fixed,
21:28right? It and on down the line. Uh we
21:31can't operate our businesses, our
21:32clients can't get their clothes washed
21:33if we can't get them fixed. And I mean
21:35obviously listen there are people out
21:37there who can who can work on them on
21:39their own or and there are service techs
21:41out there but just not enough and the
21:44downstream and upstream effects of that
21:46as this problem continues to get worse
21:49are only going to get exaggerated
21:52exacerbated. They're going to get worse.
21:54>> Exacerbated.
21:55>> Yeah. Thank you. Yeah.
21:56>> All right. So let's talk to another one
21:58of my favorite little [laughter] topics
21:59here.
22:00>> We're just checking them off the list
22:01right now. I love the list. So, I can't
22:03tell you how many times in the last six
22:06months, you know, I got a listing and,
22:09you know, and I'm answering all the biz,
22:11buy, sell leads, and it was quite a few
22:13of them. and you know, they start to
22:16talk to a buyer and uh the first thing
22:18is is that sometimes you got to reframe
22:22them from whatever they've talked to or
22:24whoever they've talked to prior to
22:26talking to you because they've got some
22:29ideas that were they were given that
22:31that really aren't um not truthful is
22:34not the right word, but um um beneficial
22:38or or uh they're not the total picture.
22:42>> Yeah. wouldn't say they're lying, but
22:44you know, it's it's it's this been told.
22:47>> There's some [clears throat]
22:47misinformation out there.
22:48>> Yeah. And you need to kind of put them
22:50back on the put the train back on the
22:53track and watch you go down a lane. And
22:55and and and the biggest one is is that
22:57they want to buy a laundromat for 3x.
22:59Now, I can't tell you the last time I
23:02saw a laundromat that was for sale for
23:043x. By the way, for anybody who doesn't
23:07understand, 3x is the multiple that you
23:09give the net income after the proper
23:11expenses and the gross income. It's the
23:14it's
23:14>> determine the value of of the laundry.
23:16That's what we're talking.
23:17>> You factor in age of equipment, length
23:19of lease, and condition of the the
23:22industry itself, and then you weigh it
23:24on the the competition and and what
23:26they're doing and free parking and
23:28exposure and lighting and and all the
23:30above that goes into this package.
23:34Several times I've had a talk with them
23:36and say, "Where are you getting 3x from?
23:38In fact, where are you getting 4x from?"
23:42and and and a and you know, I'm sure
23:46that there's 4X's out there that you
23:48could buy, but I'm not sure that the
23:49length of the lease is the right one or
23:51or you haven't really taken into
23:53consideration that there's nine
23:54competitors or there's a bunch of other
23:56things and and
23:57>> or the net income's not right and it's
23:59not really 4x, it's 7x when you get the
24:02real numbers,
24:03>> the real expenses and you know, it's
24:05it's it's it's Yeah. So, so it it's it's
24:10where are we? And and and and in today's
24:12market, first of all, um I can I I can
24:16speak for most brokers out there,
24:21the ratio, and this is probably a little
24:23bit wonky, but I will tell you that the
24:25ratio of buyers to sellers is probably
24:28500 to one.
24:31>> Oh, yeah.
24:32>> Because of all the advertising, all the
24:35Tik Toks, make your money. Oh, I just
24:37saw one the other day that got me was I
24:39was a nurse and now I'm I'm I'm I'm I'm
24:42in the laundry m industry. Look at all
24:43my money.
24:44>> Yeah. Okay. Okay. So, I mean, I love the
24:48story.
24:48>> Good for her.
24:49>> Yeah. Good for her.
24:50>> Yeah. Yeah, I'm not.
24:51>> Yeah,
24:51>> but the reality of it is is that you're
24:54trying to buy a laundromat in a a a a
24:56rougher neighborhood and you're going to
24:58repaint it and make the floor nice and
25:00you you're going to add equipment
25:01hopefully and you're going to give it a
25:03shot of making this thing more
25:04profitable than it was before, which is
25:06the truth. But the truth of the matter
25:08is that things are selling at 5x. And
25:11I'll tell you a quick story. I was at
25:13the clean show and uh I was sitting down
25:17for lunch and I was introduced to a guy
25:20by the name of uh Hinrich
25:24and and he's uh on the east coast and uh
25:27he's uh his dad had the distributorship
25:29and I think he had the distributorship
25:31but he owns a chain of laundry and I'm
25:33having lunch and he we traded
25:37how long we've been doing what we've
25:38been doing and we got some good laughs
25:40and and he said to me he goes is a card
25:44store
25:46worth more than a coin store?
25:50And I looked over at him and I said,
25:52"Well, of course it is."
25:54And so we debated back and forth the
25:56reasons why it was. There's no
25:58collecting of quarters anymore. No
26:01hassles with that. You don't you're not
26:03playing your dirty dirty money. It's not
26:04I mean all the things that went in.
26:06You're saving four or five hours a week
26:08from collecting quarters. U changers.
26:11Real quick, I just want to I just want
26:13to say there is no debate about that.
26:15It's absolutely more valuable and it all
26:17that stuff is true that you're saying,
26:18but the the real reason it's more
26:20valuable is and this is I think where
26:23you're going with it, but the real
26:24reason it's more valuable is because
26:26it's trust and and security, right? You
26:29you have a better idea of how the
26:31laundromat is actually performing.
26:33That's worth more than the ambiguity of
26:37the napkin P&L or the spreadsheet P&L
26:39even. And that's why it's worth more and
26:43all the other things and the management
26:45all that but but the the the core of the
26:49value is certainty trust uh security
26:54less risk in those stores and like
26:57you're saying the the management
26:59capabilities but that's I would say I
27:00would argue that's secondary to
27:04the the lack of risk in those stores.
27:06What the other thing is that I know that
27:09that that that that that
27:12the lenders in this industry are happy
27:13when they get a 18-month printout from
27:16one of the card systems and they look at
27:18it, they go, "Yep, numbers are here. I
27:21mean,
27:22I don't need I don't need the the the
27:25the the tax return or whatever the case
27:27may be. This is perfect for me. It's it
27:30makes our job that much easier to to get
27:33the buyer to see that there's what
27:36they're telling is the truth. And then
27:37you match that up and then you go with
27:39the expenses. You got the only thing you
27:40don't have on expenses
27:43nowadays is actually the the repair
27:44bills.
27:45>> Repairs. Going right back to it. Huh.
27:47>> Right. I am right back to the repair.
27:49>> Right back to it. Yeah.
27:52And so um so anyway, so
27:55what we what I ended up talking with
27:57this gentleman with who's been in the
27:59industry longer than I have and I've
28:00been in quite a bit um is the fact that
28:04is 6x
28:06around the corner
28:08and I I got news for you. It is.
28:12>> It's not. It's already here. And so like
28:15some of these card stores are already
28:16going. If they're newer machines, fully
28:19automated,
28:20>> shorter le longer leases and and the
28:22rent to gross ratios are all falling in
28:24under the 20%. You're looking at it,
28:27you're going, why wouldn't I?
28:29>> And the other problem is what's on the
28:31market? What is available today?
28:36You take today versus 2021
28:41>> and you look at on the average that
28:44there was probably 30 laundry mats for
28:46sale at any given time in Southern
28:47California. Not the rest of the world,
28:49but just Southern Cal. And of those,
28:52there was at least 15 of them that were
28:54really sharp. You could go in there, it
28:56had a nice long-term lease. You didn't
28:58have to negotiate that. You were going
28:59to buy new equipment because you wanted
29:00to change the equipment mix from those
29:01top loaders into another. You were you
29:04were going to make this a run. and you
29:05did.
29:07That was then. This is now there. There
29:09probably is a half a dozen decent
29:12laundromats on the market today. And
29:15most of the laundromats that are very
29:18profitable and are selling for 6x, the
29:21broker who has the listing, he's already
29:24selling it to one of his buyers
29:26>> and it never hits the market. Mhm.
29:29>> So when I talk with clients and I'm
29:31trying to give them a p perspective of
29:34what's going on, I say, "Look, if you
29:37find something that you like and it's
29:39worthwhile and you're not going to get a
29:4120% ROI, but you're around 16, you may
29:44want to look at that and say, I think
29:46I'm going to take that, so I take it off
29:47the market because is there anything
29:49better that I've seen in the last 6
29:51months or a year that's going to beat
29:53that?" And to stick on this
29:5620% ROI. Listen, I'm with you. But
29:59today, you're going to have to look at
30:01it from a different perspective.
30:03Brings you to the next question. Wash,
30:06dry, fold, pick up, and delivery.
30:09Are they worth the same multiple or are
30:13they worth more or are they worth less?
30:18>> Are you asking me? You want me to
30:19answer?
30:19>> Sure.
30:21>> I mean, we're we're playing volleyball
30:22here. I want to see the ball go back and
30:24forth.
30:24>> Yeah. Yeah, I mean always it comes back
30:26to it comes back to uh what would you
30:28rather have a card operated self-s
30:31served laundromat that made $100,000 a
30:33year net or a pickup and delivery where
30:37you have more employees you have more
30:38logistics you have a vehicle you have to
30:40maintain but you still make $100,000
30:42which one would you pay more for and I
30:44think unless there's huge potential to
30:48massively grow that wash and folder that
30:51pick them and delivery easily
30:5499 times out of 100, you're going to
30:56choose the self-s serve because it's
30:57easier. So, the multiple for that self
31:00serve is more appealing on the on the
31:03market right now than the wash and fold,
31:06which means that the multiple is higher
31:08than than the wash and fold.
31:10>> I don't know. Do you agree or disagree?
31:12>> Well, you so so so well, I've had I've
31:14had conversations where people have told
31:15me the wash fold is only worth 3x,
31:19>> and I'm like,
31:20>> well, I don't know about that. No, no,
31:22no. I My question is why would you say
31:24it? Why would you where would you give
31:26me the data to support why it takes more
31:30to get there?
31:32Okay. And they're going to say, well,
31:33you don't have permanent customers.
31:35Well, hold on. That's not to say that
31:36they don't, but tell me that you have
31:39permanent customers in your
31:40self-service. Show me, demonstrate to me
31:43that the reason why those customers are
31:45here because they have a monthly
31:46contract with you. They don't have a
31:48monthly contract with you. You just
31:50happen to be giving them the best
31:52possible service and the self-service, a
31:54clean, safe, well-lit laundry
31:55laundromat, well priced, good parking
31:57that they can come in and come and go
31:59they want. Safe. Okay. No different than
32:02wash, dry, and fold. Those people are
32:04actually paying more for the service.
32:06>> Well, and I I I think I would argue
32:09that's where there's a little more risk
32:11in the wash and fold, pick them
32:12delivery. Again, I don't I don't think
32:14the dispare the disparity between
32:16multiples is very big, but I would still
32:19I think unless you can convince me
32:20otherwise, which I'm willing to be
32:21convinced, I would still think there's a
32:23little more risk on that because I know
32:25that as hard times hit or you know,
32:29recessions hit or business model
32:31changes, you lose some customers or
32:32whatever,
32:34those things that you outsource often
32:36times become the first things that
32:38you're like, okay, we'll take them on
32:40ourselves to save a little bit on money.
32:42And that's where I think there's a
32:43little more risk on the service side of
32:45the business, wash and fold, pick up and
32:47delivery, than on the self-s serve side.
32:49I don't know. I'm I'm open though.
32:51>> My my thought process I don't think the
32:53discrepancy is that far.
32:56>> I don't either. I I think that
32:58>> and I think it's narrowing to be honest
33:00with you because like you said,
33:01especially if there's even an
33:03established wash and fold or pick up and
33:05delivery that's breaking even or making
33:08a little bit of money like I think you
33:09were starting to say this like it's a
33:11lot of work to start these businesses
33:13from scratch.
33:15>> It's a lot of work, a lot of time, a lot
33:16of effort and there's a ton of value in
33:19being able to start from that pedestal
33:21of, hey, we're already breaking even or
33:23making a little bit of money and to be
33:24able to build up from there. I agree.
33:27You know, uh that's why and same thing
33:29with pickup and delivery because you've
33:30got you've got more com more components
33:33go together.
33:34>> Yeah. I think even more so on the pick
33:35up and delivery. Yeah.
33:37>> I'd be interested to hear some people
33:38chime in on that that that have the
33:40experience like finance people or what
33:42haveot. They're looking at doing
33:44valuations and why they're valuing if
33:46they are the pickup and delivery list.
33:48That would almost be like, well, let's
33:51just let's take out the vending because,
33:52you know, the vending is, you know, you
33:54just stock a machine and then they just
33:56buy it and it's not worth it. But I
33:58haven't seen anybody discount the
34:00vending. I mean, I know some people that
34:02do 7 8 9 $10,000 a month in vending.
34:07>> Oh, yeah.
34:08>> And it nets it nets about 50% or about
34:1045% of that. You're going to tell them,
34:12"Oh, that's only worth a oneex." And
34:15we're going to se we're now going to
34:16separate self-service from pickup and
34:18delivery and wash, dry, and fold because
34:20pick up and delivery and wash, dry, and
34:22fold both have different uh multiples.
34:24And then you have vending and it has a
34:26different multiple. I don't think that
34:28that's the way it should be, but I'm
34:31telling you that there's a thought
34:32process that goes with that. I'm not for
34:34it. I think it all goes together for hey
34:37here's a value of your business based on
34:39the cash flow the correct cash flow the
34:42expenses
34:44um the the location the age of the
34:47equipment the length of the lease and
34:49the the the language in the lease on
34:51whether the options are personal to the
34:54seller or they're not personal to the
34:56seller and on down the line and you
34:58start to look at it and those are the
35:00things that you use to value a
35:01laundromat.
35:04Agree. Agree. And I mean, I think it
35:07it's a I'm glad we're having this
35:08conversation right now because it'll be
35:09interesting to jump back on here next
35:12year or uh
35:14>> I might wait years I want to wait 90
35:17days and we'll come back. Oh, listen. I
35:19listen I I know that, but I mean I think
35:21revisiting this conversation next year,
35:22two years from now to see I I think
35:25there's a there's a chance that
35:26flip-flops, you know, where in at least
35:29in my mind where wash and fold, pick
35:31them delivery, that multiple is actually
35:33higher than than the self-s serve
35:36laundry because your your potential for
35:38growth, your your potential for
35:40expansion, your potential for your your
35:43cash flow is much higher most of the
35:46time in pickup and delivery than than it
35:48is in self-s serve because you're so
35:49limited by such a small radius in self-s
35:52serve and you're also limited on how you
35:54can get customers and what kinds of
35:56customers you can get. Whereas on the
35:58pickup and delivery, you can go
35:59commercial, you can go, you know, small
36:01commercial like spas and salons and
36:04stuff like that. You can go residential,
36:06you can go big. I just did an interview
36:08that either will have just come out or
36:11maybe come out right after this uh with
36:14uh with Randy who is crushing it and
36:18does big big big big commercial clients
36:21um in his laundromat in his laundry
36:23facility. So, uh, I I think the
36:26potential for revenue is massive in
36:28there and I think there's a possibility
36:31there's a point in time where wash and
36:33fold pickup and delivery business is
36:35actually valued more than the self-s
36:36serve.
36:37>> Well, I think I think what's going to
36:38happen and I don't I don't like to hear
36:40this, but I think what's going to happen
36:41is this is a smaller thousand foot or or
36:451500 foot laundromats going to going to
36:47be faced with higher rents. utilities
36:49are going through the roof and and they
36:52can't they [clears throat] can't put
36:53more poundage in there because they
36:55don't have wall space and you're gonna
36:59>> There's a solution coming for that.
37:01>> Yeah,
37:01>> there's a there's a solution coming for
37:03that uh ASAP. Well, and here I'll just
37:05you know just one of the things I saw at
37:06the clean show,
37:07>> right?
37:08>> Uh is you know one of the one of the
37:11things that won product of the year is
37:13the uh washerd dryer combo machine where
37:17it's a washer and dryer. There's no
37:18changing from one machine to the other.
37:21Um, Electrolux had one. I want I think
37:23they won product of the year there, but
37:25right, I want to say even maybe Alliance
37:27had one or somebody else had one as
37:28well.
37:29>> And uh, there's more of that coming. I
37:32think that that is
37:33>> coming up in the future here where those
37:36washerdryer combo machines which have a
37:38questionable reputation in uh, in the
37:42residential space. Some people love
37:43them, some people hate them. But when I
37:46travel overseas, I'm seeing these
37:48machines crush it and they're way more
37:50technologically advanced. And I think
37:54there's a huge uh case to be made for
37:56them.
37:57>> I interesting and
37:59>> it it'll be interesting to see. And if
38:01you don't have uh if you don't have to
38:03put a washer and a dryer, two separate
38:05units, you you know, for your washer and
38:08dryer, now you've just doubled your
38:09capacity, your wash capacity by getting
38:12rid of a bunch of those. But okay, but a
38:15limitation to that would be is that
38:18you're going to have to have venting for
38:20those washers,
38:22>> for those dryers and and therefore
38:26Okay, so now you're going to you're
38:27going to break away from the old pattern
38:29of having dryers in the wall
38:31>> because that's how they vent. Okay. And
38:34then the backto back situation that you
38:37have, your aisles are now going to be
38:38twice as wide. that the bulkheads are
38:41going to be twice as wide because you're
38:42going to need the mechanical parts to be
38:45able to vent up through there and go
38:48straight up, too. So, there's some
38:49things that
38:50>> I think they're they're they're
38:52engineered a little differently. I think
38:53you're going to be surprised at how
38:55these things come out and how how well
38:56they are.
38:57>> I'd like to see some pictures.
38:58>> Yeah. Uh I I'll show you. I've taken a
39:01look at some of them. Uh pretty hard
39:02look at some of them and I think you'll
39:04be surprised at how well they go. Uh I
39:06don't know. I'll I'll be interested to
39:07see if they catch on here in the States.
39:10Uh and uh I but I think that there's a
39:14case to be made especially especially in
39:17some of the bigger cities like New York
39:20where there's LA where there's a lot of
39:22bowling alley laundromats, things like
39:24that. I mean I think that's
39:25>> that's huge. So anyways, I don't want to
39:28get down that rabbit trail too far, bro.
39:30We got that. Um,
39:34so
39:36we covered repairs, we covered
39:38installation, we covered the seminars
39:39and the growth.
39:43Where are we going with this?
39:45Well, that's that's one of my questions
39:48here is uh I mean, what are you what are
39:51you seeing? I mean, we we talked about a
39:52lot of this stuff. Like, what are you
39:53seeing for this industry? like is this
39:56I'm I'm not trying to be uh you know
39:58tongue and cheek here or anything but
40:00but genuinely like we've talked about a
40:02lot of like these difficulties in the
40:03industry right now. What do you are you
40:06still are you still bullish on
40:09laundromats if somebody's thinking about
40:11getting into them right now? We're
40:12talking about a higher multiple
40:13increased costs
40:15>> the struggles no repairs like what do
40:17you think? I think I think that we're in
40:19a in a uh a growing pains
40:23u process right now. We're in growing
40:25pains. Um a lot of attention's been
40:28brought to our table which um uh the
40:32industry has tried for a long time to
40:34get aware people aware and now uh I'm
40:38not sure that they um were um
40:43>> ready for it.
40:44>> What's that?
40:45>> Ready for it? Yeah. [laughter] or
40:47prepared for the onslaught that would
40:49happen. And I think that because of the
40:51internet and everything that it
40:52represents, it uh aided and abetted this
40:55in a big way. [snorts]
40:56>> Um so, you know, I I'm I'm still
40:59bullish. I still think that there's a
41:01there's years to go and miles to go on
41:03this and and and uh a smart savvy uh
41:06operator uh is going to do quite well in
41:09the business. um and to keep his eye
41:11focused on um you know providing
41:13services and and and in in a safe
41:15environment and and and you know um
41:18every year raising your prices so that
41:20you can keep ahead of the inflation and
41:21keep ahead of utilities and the uh the
41:24rents and what have you. I think you
41:26know I think you're going to be there.
41:27That's why another reason why on the
41:29wash dry fold you're going to see that
41:31the prices inch up and on the individual
41:34machines and someone's going to go you
41:36know it would be cheaper if someone did
41:37it for me and if someone can do it for
41:38me I would pay for that. So, you know,
41:41that that portion is still there. Um,
41:43but any, you know, anyone who who who
41:46wants to to to talk to you or me about
41:49uh the industry, they can always give
41:50either one of us a a ring and say, "Hey,
41:52what do you think of this and what do
41:53you think of that?" Cuz we're both open
41:55to new explore new ideas and I would
41:57embrace it. Um you and I have to talk
41:59about uh this idea that I have on uh the
42:02wash fold which uh I think I shared with
42:04you but I think uh um now's the time to
42:07probably look at how we can uh improve
42:10upon that uh model.
42:13>> Yeah. Yeah. Yeah. And I've got some
42:15ideas and we have talked a little bit
42:16about it. Uh and I've got some ideas but
42:18I I you know uh first of all I like how
42:23you were able to sneak makeup air back
42:26in here. I feel like every episode
42:27Makeup Air has to come back in. Uh, and
42:30I still curse you by the way. Curse you
42:33because I still
42:35every single week I have at least one
42:37consulting call where somebody's talking
42:39to me about makeup air and every time
42:40I'm like that son of a gun, Andrew
42:44Andy, he'll tell you all about
42:45>> Yeah. Yeah. son of a gun, man. He's
42:47making me talk about makeup air again.
42:49Uh, but uh yeah, snuck it in there. Uh u
42:53listen I'm I'm curious you know we
42:56talked a lot about like what's happening
42:58now and a little bit about like where
43:00things might be going where we think
43:02might things might be going uh in in a
43:04in a few different ways. Uh I I'm
43:07curious if you have any like okay you're
43:09talking to an existing owner out there
43:13right now. What do you think is the most
43:16important or one of the one of the most
43:18important things that existing owners
43:20need to be either thinking about or
43:22doing right now to not get left behind
43:24as things are changing pretty rapidly in
43:26our industry right now?
43:27>> I I think that they um I think that
43:30everybody should be on the security
43:31train
43:33>> and everybody ought to have cameras and
43:35everybody ought to be able to videotape.
43:37There's more slip and falls. There's
43:39more BS happening. Um and and even to be
43:42able to voice down and say, "I'm
43:43watching you. I've called the police to
43:45the guy who's about to use your top
43:47loader for unmentionable things." And
43:49and I mean just and it's all happened
43:51every
43:53>> everybody every one of us has been
43:55there. Um and and um I think that um
43:59it'll give you a sense of um uh a level
44:02of security, but the cost to put in
44:05eight cameras um and for someone to
44:08maintain it for you um is is a
44:10lifesaver. I think that uh I think the
44:13next level is to for a peace of mind
44:15that you can do that. Um, and I also
44:18would recommend that they all have
44:20automatic door locks that they
44:21automatically open in the morning and
44:23then at night someone closes them so
44:25that they're not constantly having to be
44:26there. Remember, your time is valuable.
44:28Um, and that's be some of the things I'd
44:30look at. The other thing I'd look at now
44:32that you brought it to my attention is
44:34on coinries. If you're still in the coin
44:37business, I think you ought to consider
44:38in your next upgrade to go to a card
44:40system. Um, the benefits outweigh
44:44anything you could. If not, then you
44:46need to look at your changers and you
44:48absolutely positively have to have at
44:51least
44:53um enough coin in those changers so that
44:56you can fill your store once a week.
44:59Now, you will have to probably uh
45:02collect the 80 pounders and maybe the
45:0660s cuz the coin boxes are full uh on a
45:09Thursday. But the rest of the laundromat
45:11you won't have to collect until the
45:12weekend if you're if you're still doing.
45:14But you got to have enough money in your
45:16changer. If not, you're shooting
45:17yourself in the foot and you're probably
45:19losing money because your machines are
45:21always out of order and you don't have
45:23enough quarters. So,
45:25>> can I sense
45:27>> Yeah, I've got a I'm I'm glad you said
45:29that actually because I got a video that
45:31I'm putting together right now where I'm
45:33talking about, hey, laundromats then
45:34versus laundromats where we're going,
45:37future versus past." And I'll just say,
45:39I mean, you said it kind of nicely and
45:41and gave some alternatives.
45:43Listen, my my belief is only getting
45:47stronger that the the coin versus card
45:50debate is dead. Or if you don't have a
45:53cashless payment system, a card payment
45:55system or something like that, at least
45:57as a hybrid, minimum,
46:00you're you're getting left behind. Like
46:02you are you are nobody uses coins
46:04anywhere else in the world. the bus
46:06doesn't use coins or tokens anymore.
46:08There's nobody else who uses them. And
46:11the fear of using these things is
46:14keeping you, it's making you lose money.
46:16It's making you waste more of your time
46:18and it's keeping you from growing. I
46:20mean, I'm just like I am Every time this
46:23gets brought up, I am like I feel like I
46:25want to throw up. I'm like, shoot
46:27yourself in the foot, man.
46:29>> Obama doesn't like cars.
46:31>> Yeah. Yeah.
46:34But the little the nine-year-old can
46:37say, "Let me show you how to use Google
46:38Pay, Mom." And and he knows already, he
46:40or she already knows how to use it. The
46:42other thing is, why would you subtract a
46:44woman who
46:46who's watching two kids who's doing I
46:48don't know, a fair amount of laundry,
46:50and you're going to force her to put
46:51nine quarters in a machine or 29
46:53quarters in a machine? [laughter]
46:55>> I was like, where are you going for nine
46:56quarters right now, man? No.
46:58>> Yeah, that's true. Nine quarters.
46:59>> A dryer, maybe.
47:00>> Right. Maybe for maybe for a cookie.
47:03Yeah.
47:03>> Yeah. You're going to you're going to
47:04pump in 25 or 30 quarters. It's like
47:06why?
47:09>> Yeah. It's Yeah. I I just
47:11>> marketing capabilities with a card. Uh
47:14if if you used a card and it's a loyalty
47:16system, you're you're giving out $23 for
47:19a $20 bill. I mean, you know, there's
47:22more than one ways to market it.
47:23Marketing. And I keep saying guorilla
47:25marketing is still one of the best there
47:27is. Um, I mean I there's a ton of things
47:30you can do to to improve your marketing
47:32that you don't have to go to X or you
47:34don't have to go to the big social media
47:36and pay a whole lot of money. You can go
47:38to the local guy at the local apartment
47:39building and say, "Here, here's $20.
47:43Tell all your customers to come to my
47:44laundromat. If they give me this card,
47:46I'll give them a free dry." And all of a
47:47sudden, you're gaining customers left
47:49and right because you paid one guy off
47:51and he's going to make sure that the
47:52people he sees go go to that laundromat.
47:54There's more than one ways to market
47:55this. Gorilla marketing works well in
47:57this industry. It still does. So,
48:02>> yeah. I love it, dude. I love it.
48:05>> Uh, okay. Last question that I have for
48:08you. I know you got to run here pretty
48:09quick, but I got one more question for
48:11you. I asked you, what do owners need to
48:13be focusing on right now? Let me flip it
48:15on you a little bit and say, hey,
48:17somebody who's brand new trying to get
48:19in the industry right now, it's a it's
48:20trickier to get in this industry right
48:22now than ever before. What does somebody
48:24who's trying to get into this industry,
48:26get their first laundromat, get their
48:28foot in the door? What do they need to
48:30know right now and going forward getting
48:33into this business?
48:36I think the biggest issue is they're
48:38going to be looking at laundromats that
48:39are not going to be giving them that 5x
48:42and they're going to have to embrace the
48:44fact that how do I get around that or
48:46how can I improve
48:48the the the 5.5x and not be stuck on it
48:52because I promise you here's what here's
48:54what my experience is my experience has
48:56been this first of all don't be afraid
48:58to pay a little bit more for the
48:59laundromat because I call that o that
49:02that's the opportunity expense that I
49:04tell everybody that's opportunity. So,
49:07real quick,
49:08>> lease,
49:10financials,
49:12equipment, location, growth potential,
49:15and opportunity costs. This is an
49:17opportunity cost. So, you're going to
49:20come to me in 6 months and say, Andy, I
49:22still haven't found anything. And you,
49:23you know, I should have bought that
49:24laundromat that you and I talked about 6
49:26months ago.
49:28I can't tell you how many people have
49:30said that to me.
49:31>> And I I just shake my head and say,
49:32"Yeah, I understand." and not like hey
49:34knucklehead you should have but you
49:36didn't you didn't see the value in it
49:38now today 6 months later it's a great
49:41value so
49:44also too one more thing if you find
49:46something you really like tie it up
49:51don't wait for this or don't wait for
49:54that make it subject to a lease that's
49:56acceptable make it subject to
49:57verification of the equipment or
49:59verification of the utilities or veric
50:01of the revenue make it subject to bank
50:04financing. Even if you're going to pay
50:05all cash, tie it up.
50:09Don't let the seller or the broker get
50:11into I'm going to collect 50 offers
50:14before I study anything. Be the first
50:16one in the door and have them present
50:17that offer for you. At least they're
50:20going to get the first foot in the door
50:22and make it subject to. And that way you
50:24don't waste anybody's time and you're
50:26going to get what you want. It's going
50:27to be on your terms, not on their terms.
50:31>> Yeah. And here's here's what's here's
50:33what's difficult about that and I want
50:34to I'm going to say this even though uh
50:37this might be self- serving for both you
50:39and I. Uh but I'm going to say it
50:41anyways because here's here's uh here's
50:44the reality is if you're buying your
50:46first business or your first laundromat
50:48or your first laundromat and your first
50:49business uh it's it's scary and it's
50:52difficult. Yeah.
50:54>> But like like you're saying, good deals
50:56don't sit around. they don't last and
50:58you have to act quickly and get them
51:00tied up uh under contract. But it's
51:03scary and it's hard and you want to
51:05analyze. You don't know if it's the
51:06right thing. Here's what I suggest that
51:08you do.
51:09>> If you're in that boat where you're
51:10looking to buy a laundromat,
51:13buy and borrow somebody else's
51:16experience and knowledge
51:17>> and their confidence that you're going
51:20to make the right decision. Right?
51:22>> If you don't know if the decision is
51:23right, hire Andrew, hire us. Hire
51:27somebody who knows the business, who you
51:30trust, and who you get along with to
51:33help you act quickly and know when to
51:36pull the trigger on a good deal, and
51:38when to pass or to slow down.
51:41>> Buy that 10,000 hours worth of
51:42experience. Buy that expertise. Buy that
51:45confidence to make the move even if you
51:47don't have it yourself. Right?
51:48>> I know both of us offer that service,
51:50and I know that can sound very self-
51:52serving,
51:53>> but even still, do it anyways. I highly,
51:56highly, highly encourage you to do that
51:57because it's so easy to go wrong buying
52:01one of these businesses. And I've done
52:03it before. If you buy it wrong the first
52:05time, it's really difficult to dig your
52:07way out. And I've done probably both of
52:09us have done tons of consultations where
52:12somebody calls us after the fact and
52:14we're like, "Okay, listen. You either
52:15got to ditch it and lose some money or
52:18you're going to have to dig deep to dig
52:19your way out of it. It's going to take
52:21time, effort, money, blood, sweat,
52:23tears, all the above to get out of it.
52:25>> It's true. Somebody in there.
52:27>> Save yourself and and have somebody. All
52:29right. I don't want to like That was
52:31like my soap box there. But
52:33>> yeah.
52:34>> All right. I've got a I've got a
52:36scadattlele. It's been Oh, there it is.
52:38It's been an hour. So
52:39>> there there it is.
52:42>> The wife is the wife is calling. But
52:44man, I appreciate you coming on. We
52:45always have uh a blast just chatting
52:48mat. So, uh, let's, you know, we
52:50probably should just make this regular
52:51once a quarter or something like that.
52:53And
52:53>> we probably make it sooner than that
52:55because I think that more things are
52:56going to happen quickly.
52:58>> I I agree. It's changing quick now. Uh,
53:01>> not just laundromat quick. Laundromat
53:03industry quick, but actually quick right
53:05now. So,
53:06>> absolutely.
53:07>> Yeah. So, awesome, man. Appreciate it.
53:09Enjoy your uh date night tonight. And
53:12>> hold on. Hold on.
53:12That'sununfiltered.com.
53:15You can get a hold of me, Jordan
53:18Resources.
53:20>> Appreciate it.
53:21>> I appreciate it, man. And uh hey, we'll
53:23we'll do it again. Let's do a live one
53:25here uh pretty soon.
53:26>> Okay. I'd love
53:27>> Let's get some on the calendar.
53:28>> I'd love the input. I'd love to to talk
53:30to people online. We should I'll tell
53:32you what. You have my word. It's
53:34January. February. Absolutely. We'll do
53:37a live.
53:39>> Love it. You heard it here first.
53:40>> All right.
53:40>> All right, man. Looking forward to it.
53:42>> Take care. Thanks.
53:43>> You, too. Bye. Bye. All right, I hope
53:45you love that episode with Andrew
53:46Cunningham. The guy is just a wealth of
53:48knowledge. The guy knows the business
53:50and uh listen, there are big things
53:53coming. Um I know Andrew and I have been
53:56having a lot of conversations about this
53:57industry and Andrew and others and I and
54:01others. There's a lot of stuff happening
54:03right now. So keep your finger on the
54:04poll. Stay right here at Lone My
54:06Resource uh podcast and here on the
54:09YouTube channel as well. And um listen,
54:14all of this will have been very
54:16educational, very informative, maybe a
54:19little bit entertaining, but completely
54:22useless unless you put something into
54:23action. So take some action this week.
54:26That's what's going to help you get your
54:27goals. And we will see you here in the
54:29next episode of the Lord Resource
54:32Podcast. Peace.

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