Perfect Plan

New Speed Queen-equipped laundromat is the ideal side-hustle for local family

Walking into Whangaparāoa’s Coast Plaza shopping centre a few months ago, our editor was surprised and delighted to be greeted by a stream of bubbles from a new doorway. Looking beyond the bubble machine, he realised they were promoting a newly-opened laundromat –and it was working. The stream of people heading between the car park and escalator found their attention grabbed – and Stuart Rutley’s new business was on the map.

Three months later, we sat down with Stuart to ask him about his experience of working with Speed Queen to set up his business.

Stuart is a local lad, having been to school just down the road from Coast Plaza. ‘I don’t know if you remember the gumball vending machine that used to be upstairs here, but that was my first-ever business,’ he laughs.

‘I was at school and wanted to make some pocket money, and Dad’s friend had this machine. They did a deal and I had my first taste of semipassive income – I just had to stock it from time to time. I suppose a laundromat is another giant vending machine in some ways, but there’s a lot of automation and your customers do the work themselves.’

Between gumballs and laundry, Stuart did a business degree, got married and, with his wife Leah, developed an online distribution company specialising in maternity gear. With five children themselves, they had plenty of experience, but when they sold it they were looking for a side-hustle they could operate alongside Stuart’s day job as manager of a business selling security products.

Only one stood out

‘Laundromats had been in the back of our mind for a while, so now we started looking seriously,’ Stuart recalls. ‘We looked at three different suppliers of equipment, but only one stood out – Speed Queen. They weren’t the cheapest, but the service and advice they provide is really good, the machines themselves are robust, and the technology is brilliant. Royce Little, Speed Queen’s head of laundromat sales, really listened and got invested in the project with design and costing analysis to maximise the potential of the business.

‘They produced four different floor plans to suit our unusually-shaped space, and a 3D render which showed exactly what they would look like. They were so accurate that I was able to use one for pre-opening promotions – in fact, it’s still on the wall outside. And their advice was spot-on. When I was looking at dropping one machine to reduce costs, Royce said, “Don’t drop that one, it’s the prime earner” – and he was right, it’s our busiest machine of all.’

‘They produced four different floor plans to suit our unusually-shaped space...'

'...and a 3D render which showed exactly what they would look like. They were so accurate that I was able to use one for pre-opening promotions', says Stuart

Technology maximises income

Speed Queen held another major advantage for Stuart and Leah –properly-integrated software that allows the owner to manage and promote the business remotely. ‘Every equipment supplier does Eftpos, but Speed Queen offers a complete turn-key solution with contactless payment and a loyalty app that allows you to carry out promotions and reward repeat customers – they can see which machines are available on a map of the store and don’t have to carry coins or a loyalty card to get a discount.

‘It also helps them manage their time – they can load their machine and get an alert when it finishes, so they can go off and do their shopping, have a coffee or drop the kids at school rather than hanging around.

‘As an owner, I use the management software to analyse usage and program in promotions. At the moment, for example, I’m running Big Wash Wednesday. On Wednesday morning all the prices drop for the day, and automatically go back to normal for Thursday without me having to do a thing. At any time, if business is quiet I can see on the app and put out a Happy Hour promotion there and then on social media – all without having to go near the store. It’s very effective, and it’s so reliable. I’ve dealt with a lot of computer systems and this one just plugged in and worked immediately!’

After just three months, Stuart says the business is already up to about 60 percent of where he wants to be. ‘I’m probably physically in-store 8-10 hours a week at the moment, talking to people, learning and looking at new ideas, but the laundry itself is completely hands-off. The app means I always know what’s going on, so it’s mostly about building the customer base.’

20-30 percent returns

Speed Queen is not actually a franchise – you operate under your own name, but the company provides all the equipment and assistance you need to get up and running. ‘The return on investment is in the region of 20-30 percent, and some of our owners have done much better than that,’ says Royce.

‘Cash-free operation means no security concerns, and many sites run 24/7, meaning investors are earning a return at all hours of the day or night. A medium-sized investment will be between $250,000 and $300,000, with a cash deposit required of $75-100,000 and finance options available.

'It's the perfect money-making investment - high returns, low involvement and remotely manageable. Give me a call to find out more.'

Advertiser Info

Speed Queen

www.speedqueen.co.nz

Contact Royce Little

P 0-9-528 5600

royce@speedqueen.co.nz