5 minute read
Live Life How You Choose
Speed Queen-equipped laundromats deliver impressive returns for investors
Shaneel Kumar fits more hours in the day than most people. In addition to his career in health & safety, he also volunteers with St John and the Red Cross, and serves the community as a Justice of the Peace. Oh, and he’s recently started a thriving laundromat business on the side. ‘Hopefully, my laundromat will allow me to give up my day job and concentrate on volunteering,’ Shaneel smiles.
Shaneel’s business came about after he started looking at buying a house. ‘Within the same development was the option for a commercial space, and I thought, “Why don’t I invest in a business instead?”
‘With a full-time job, I looked for something that could run pretty much on its own. A café would be a huge commitment and I’d need to be fully involved, so I rejected that. But the idea of a laundromat quickly grabbed me – I reckoned it was an ideal spot with a semi-captive market, and my research for equipment led me to Speed Queen.’
Helping set up successful businesses
Speed Queen has been manufacturing commercial laundry equipment for over a century, and combines robust reliability with the latest technology to enable investors to maximise their return from each machine they install.
‘We are not a franchise – every owner trades under their own brand – but we are much more than just an equipment supplier,’ explains Royce Little, Speed Queen’s laundromat sales manager.
‘We help people set up successful businesses by providing lots of support, including help with everything from site selection to design, building consents and fit-out.
‘We have equipped over fifty outlets in the last two years and can offer cash-free operation and online management software which lets you stay on top of your business from anywhere in the world. Our specially developed customer apps increase efficient use of the machines as well as building customer loyalty.
‘All this means you can invest with confidence in your business then sit back and relax – or, like Shaneel, get on with other interests – while enjoying the rewards as the machines work for you 24 hours a day, 7 days a week.’
Proven formula
One of the keys to building a successful laundromat is finding the right location, and Speed Queen have a proven formula to assess the suitability of any site for demographics, parking, accessibility and many other factors. ‘It’s never let us down and, in Shaneel’s case, it confirmed he’d found the right spot,’ says Royce. ‘His Takanini laundromat is in a growth area, right where the customers are, easily accessible and with plenty of parking.
‘Parking is critical as people have to carry baskets of laundry from the car, so very few if any of our laundromats are sited on busy high streets. We’re a destination business so less-expensive sites with adequate parking are ideal – Shaneel’s is surrounded by houses with a dairy and a nail salon alongside.’
Remarkably easy
Shaneel spent a lot of time visiting other laundromats trying to visualise how his might look and work. ‘I found it quite hard to imagine,’ he admits, ‘but Speed Queen have clever software that does 3D layouts and enables the maximum number of machines to be fitted into the minimum of space in the perfect combination to ensure it would be a sound investment. The results were excellent.
‘The whole set-up and fit-out process was remarkably easy. Speed Queen put me in touch with a finance company which knows the business inside-out and understands the model. They were very comfortable, and I was able to open for business in November 2022.
‘It’s been growing ever since. I get new customers coming in every week, many recommended by friends or family. Many have come much longer distances than you’d think and passed a couple of other laundromats en route. Word of mouth does work!’
Maximising a good investment
So what is the key to the Takanini Laundromat’s success? ‘I keep it clean, tidy and inviting,’ says Shaneel. ‘Everything is very bright, with LED lighting and stainless steel counters. Then there is the personal touch – 60 percent of my customers know me, and the resounding feedback is, “We come because your place is clean.”
‘That’s nice to hear, because I do the cleaning myself at the moment. I really enjoy being in the premises occasionally and meeting my customers, although like many Speed Queen owners I will get a cleaner in eventually so I can do more of the things that are important to me, like St John. After my first year it’s looking promising and I’d recommend this to anyone who is looking for a good investment.’
Royce says that, ‘With Speed Queen behind you, you can replicate what Shaneel has achieved. This is a near-perfect passive investment opportunity with returns in the region of 20-30 percent – some owners are doing even better than that. A medium-sized investment is between $250,000 and $300,000, with a deposit required of $75-100,000.
‘To find out more, give me a call. We have opportunities all over New Zealand.’
Advertiser Info
Speed Queen
Contact Royce Little
P 0-9-528 5600
