Thursday, 10 September 2015

RESOURCE SUFFICIENCY



NON-FINANCIAL RESOURCES NEEDED FOR A LAUNDRY LOUNGE
NON-FINANCIAL RESOURCES
AVAILABILITY
Affordable space space for the laundry lounge, which meeds to be large enough to provided private areas for add-on services
Yes but requires much effort
Key equipment : washing and drying machines specialized in Laundromat industry
Yes but requires much effort to achieve high qualified products
Others key equipment such as book self, big screen TV, computers, chairs, tables, delivery vehicles, camera
Yes
Foods, drinks and Internet suppliers
Yes
Staffs in the store
Yes

SWOT ANALYSIS


STRENGTHS
WEAKNESSES
 
ü  Modern equipment especially payment system
ü  Convenient service from washing, drying, ironing to home delivering
 
 
ü  Store with limited space
ü  Small number of washers and dryers
ü  Low brand awareness
ü  Unclear price list
OPPORTUNITIES
THREATS
 
ü  Small number of self-service laundry stores in Malaysia
ü  Large amount of working people and students
ü  Cheap labour source
 
 
ü  Daily habit of washing clothes by hand at home
ü  The business model is easy to copy

CUSTOMER SEGMENTATION OF THE LAUNDRY LOUNGE


GEOGRAPHIC
DEMGRAPHIC
NATION
CITY
OCCUPATION
AGE
MALAYSIA
RAUB
STUDENTS / HOUSEWIFE / EMPLOYEES
18 – 35 Years Old

PORTER'S FIVE FORCES ANALYSIS FOR A LAUNDRY LOUNGE IN RAUB, PAHANG


Bargaining power of customers
Bargaining power of suppliers
 
ü  Low costs of switching to similar services (ââ)
ü  Tight budget (â)
ü  Large number of Students (0)
ü  Clean clothes as necessity of life (0)
ü  Uniqueness of Laundry Lounge (0)
ü  Few substitute service available (0)
 
ü  Small number of commercial laundry equipment suppliers (ââ)
ü  High cost of switching to other laundry equipment supplier (ââ)
ü  High importance of washing and drying machines in the business (ââ)
ü  Start-up company (ââ)
ü  Large number of suppliers for Laundry Lounge’s additional services (0)
ü  Numerous premise for lease (0)
 
Rivalry of existing competitors
 
ü  Existing brand recognition is low (+)
ü  Low industry growth rate (0)
ü  Small number and small size of self-service laundry stores (0)
ü  No outstanding competitors (0)
ü  Poor diversity (0)
ü  Information about the industry is no yet complicated (0)
ü  No or very small advertising expenses (0)
 
Threats of new entrants
Threats of substitute services
 
ü  Easy to copy (â)
ü  No proprietary factors in the industry (â)
ü  Brand value in the industry is still low (â)
ü  Moderate capital requirements (+)
ü  Difficulties in finding suppliers (0)
 
 
ü  Daily habit of washing and drying clothes by hands at home (â)
ü  Low or moderate quality
ü  High price (0)
ü  Clear differentiation (0)

INTERNET USERS IN MALAYSIA


Wednesday, 9 September 2015

INFLATION RATE & CUSTOMER SPENDING RATE AT MALAYSIA

Malaysia Inflation Rate 

The inflation rate in Malaysia was recorded at 3.30 percent in July of 2015. Inflation Rate in Malaysia averaged 3.68 percent from 1973 until 2015, reaching an all time high of 23.90 percent in March of 1974 and a record low of -2.40 percent in July of 2009. Inflation Rate in Malaysia is reported by the Department of Statistics Malaysia.

 

Malaysia GDP Annual Growth Rate

The Gross Domestic Product (GDP) in Malaysia expanded 4.90 percent in the second quarter of 2015 over the same quarter of the previous year. GDP Annual Growth Rate in Malaysia averaged 4.77 percent from 2000 until 2015, reaching an all time high of 10.30 percent in the first quarter of 2010 and a record low of -6.20 percent in the first quarter of 2009. GDP Annual Growth Rate in Malaysia is reported by the Department of Statistics Malaysia.

 



Malaysia Consumer Spending
Consumer Spending in Malaysia decreased to 134900 MYR Million in the second quarter of 2015 from 135507 MYR Million in the first quarter of 2015. Consumer Spending in Malaysia averaged 94217.40 MYR Million from 2005 until 2015, reaching an all time high of 138638 MYR Million in the third quarter of 2014 and a record low of 56768 MYR Million in the second quarter of 2005. Consumer Spending in Malaysia is reported by the Department of Statistics Malaysia.

WHY GO INTO THE COIN LAUNDRY BUSINESS?

  1. Coin laundries are a basic-need business
  2. Coin laundries are low risk business
  3. There are very few employees.
    • Generally only two employees per shift
  4. Very little retail inventory (no waste)
    • Soap
    • Bleach
    • Fabric softener
    • Coffee
    • Soft drinks / snacks
  5. Coin laundries are an all cash business.
  6. Owner have the only keys to the cash boxes
  7. Coin laundries are an excellent absentee owner business.
  8. Good coin laundries are very high in demand and easy to sell.

Company Objectives

It is our goal to offer our clients a valuable long-term laundry service but also a place where you can relax, have a nice coffee and meet people. We go beyond just looking at immediate problems by asking the appropriate questions to help customers plan for the future. We understands that a strategic plan combined with a pragmatic mind-set is required for a business to remain competitive:
 
  1. We are dedicated to total satisfaction.
  2. To be present in all the target market areas.
  3. We will achieve superior performance, as measured by return on investment, through systematic, substantial and profitable growth.
  4. We are committed to operating as an independent Laundromat service firm.
  5. Be able to expend our services in the region of choice.

COMPANY VISION

Our mission is to be a provider of Laundromat services to all levels and especially to University student, housewife and employees living in surrounding of our company.

"Helping people reach new heights" is the mission that Raub Laundry Lounge embraces for its clients.

As a self service laundry solution and a place to relax, our laundry offers its clients solution that result in a positive return on investment.

Based open the evaluation of our client's needs, we recommended both new and proven technologies, and implement solutions that provide our clients with better than expected result for their laundries.

Our laundry has a dynamic approach in providing Laundromat solutions for its clients by:
  • Listening to clients needs, goals, concerns and expectations.
  • Observing their processes, target market, and competition.
  • Recommending viable laundry solutions based on deep analysis and collaborative review.
Managing and deploying a successful project within budget.
  1. In our chosen market, our laundry is the leader in laundry operations as well as in clients satisfaction, professionalism, superior quality and innovation.
  2. We are the architects of responsive and creative Laundromat solutions to our clients' benefit, compensation and human resources needs.
  3. We combine technical excellence with a superior understanding of client needs and the environment in which our clients operate.
  4. We are committed to working partnerships with our clients that add value and consistently exceed expectations.
  5. Our aim is to get market share up to 15% until the end of the first year.

COMPANY MISSION

At Raub Laundry Lounge, our mission is to provide our customers with quality coin-operated laundry service within a comfortable ambient with friendly service. our laundry make it easy for you. We take out all the headaches from you, just come and relax here while you do your laundry.

Raub Laundry Lounge will SAVE YOUR TIME, MONEY WHILE YOU ARE ENJOYING!

Monday, 7 September 2015

EXPENSES

Expenses

This is a business expense category launderette which will face: accounting, advertising, insurance, legal fees, licenses, maintenance (wage labor and parts), salaries, rent, utilities (water, gas and electricity) and so on other

Total sales, and individual store performance varies, based on several factors. These factors can include demography; the overall service offered; design and general condition; selection of equipment, conditions and vend price; hours of operation; exposure of the building; parking; and competition.

Income hair can vary due to the amount of the estimated weight in kilogram washing is produced; vend price of the two washers and dryers; heating efficiency dryers; The amount of air in relation to the cleaners; and the size and capacity of the dryer. Income hair is usually expressed as a percentage of overall revenue. Generally, income hair varies between forty and sixty per cent of total revenues washing machine. Income and expenditure percentage may differ significantly for stores that offer additional services such as dry cleaning and fluff and fold.

ABOUT LAUNDROMAT

Industry

Coin laundry industry about 60 years old and are mainly composed of the owner / operator of individuals. At present, there are about 35,000 coin laundries in the United States, generating nearly $ 5 billion in gross revenue per year.

Clean clothes, such as food and shelter, are regarded as necessities of life and operated laundries provide basic health services for everyone. Although Laundromat found in almost all parts of the country, stores seem to perform well in the area is densely populated mostly tenant-occupied. These areas are growing in number with every year throughout the country. Intense population growth, coupled with the development of rental housing, has increased its customer base to the Laundromat.

Business Cycle

Coin laundries thrive in periods of both growth and recession. In the last recession, when home ownership decreases, the self-service laundry market expands as more people can not afford to repair, replace or buy a new machine and clothes dryer machine, or as they move to apartment housing with laundry facilities are inadequate or non-existent. The market size grows in proportion to the increase in population. People will always need health services is fundamental - people always need to wash your clothes!

Features and Trends

Industrial growth based on demographic density, mixed population and incomes of the population. The more concentrated population, the greater the need for quality self-service laundry facilities. Demographics of the United Syartikat show tenants, the main users laundromat coin, is the fastest growing segment in the country.

According to the US Census, 31 percent of the 116 million households in the country were occupied by renters. The number of coin laundries built over 60 years ago has increased as the population has grown and shifted to areas where there are more populous. This industry has developed a mature, stable and predictable turnover rate and financial self-service laundromat, and expansion and replacement of equipment.

Market value

Laundromat usually sold at multiples of their net income. Aneka may vary between three and five times the net cash flows, depending on several factors. The main factors creating the following markets:

 Net income before debt service, after adjusting for depreciation and any items that are not standard including owners salary or wage costs in services.

Terms importance of property (lease), especially long; frequency and amount of the increase; expenditure; and the overall ratio of rent to gross income.

Age, condition and use of the equipment, and leasehold improvements; the physical properties of real property in which the coin laundry is located, especially the entrance / exit, visibility of the road and parking lot.

Existing conditions, such as vend price structure in the market.

Demographic profile in common areas or regions.

Replacement cost and land use issues.

The resale market standard scenario assumes the owner / operator, without provision for external management fees. Time marketing to stores average sales of 60 to 90 days, depending on the price, terms of financing and the quality and quantity of existing stores at the time of sale.

Standard acceptable shelf life for commercial coin-operated laundry machines are as follows:

Washing Machine Download Top (6kg to 7kg): 5-8 years
Front Load Washing Machine (9kg to 25kg): 10-15 years
Clothes Dryers (15kg to 30kg): 15-20 years
Coin Exchange Machine: 10-15 years

Life expectancy depends on the use of laundry machines, the number of sales and maintenance.

DEFINATION

Definition

Launderette or laundry coin is defined as a commercial-grade, self-service laundry equipment put into service in the retail space. Coin laundries generally occupy retail space on long-term leases (10-25 years) and generate strong cash flow over the life of the lease. Launderette Laundromat is a unique small business because they do not have inventories. There is a Laundromat that uses labour to please the customer.

In the United States, Laundromat can range in value from $ 50,000 to more than $ 1 million, and can generate cash flow between $ 15,000 and $ 200,000 per year. Business hours usually run 6 am - 10 pm and the stores usually occupy 1,000 to 5,000 square feet of retail space, with an average of 2002 to 2,260 square feet. The new self-service Laundromat and evaluated based on the actual construction cost of the equipment, while the existing Laundromat assessed based on income. Laundromat coin is a perfect example of passive income generator.