Several innovations have resulted in improvements in quality, productivity and operating costs have made the commercial laundry business increasingly attractive to many entrepreneurs with the right skill sets and infra-structure.
In this exclusive feature, MAGNARAB, a highly specialised UAE-based laundry equipment consultant and equipment supplier, takes a look at the essential pre-requisites to consider when entering this market, avoiding pitfalls for the unwary along the way!
The region is finally opening up post the lockdown of the pandemic. It is business as usual in the laundry industry, however there’s good news as one can see tremendous growth potential in the region post the lockdown. MAGNARAB, a highly specialised UAE-based laundry equipment consultant and equipment supplier, gives Clean Middle East an insight into why this might be the right time to invest in the market.
There are two schools of thought – one, who feels that the right time to strike into the market is when it is low and two, who feel it is too risky. The question, however, is really not if this is the right time or not. The real question is how big is your appetite to enter the market, says MAGNARAB. Capital investments that require high gestation period should be done at the time when the market demand is low.
This way, one can take advantage of favorable lease terms, attractive deals and offers for capital intensive equipment purchase and infra-structure fit-outs, availability of skilled human resources etc. The downturn also might see a market correction when many unorganized and inefficient operators are forced to scale down or fold their operations which can open up opportunities for the right facilities. The RoI of such investments could be the highest, especially if the company is willing to take a calculated risk with re-furbished industrial duty machines to reduce the CAPEX.
Opening a commercial laundry is not just about knowing about the market situation. To invest in a profitable Commercial Laundry, one has to be aware about a profitable laundry design and the right equipment to gain the maximum ROI from the facility. Before you, as an entrepreneur, jump into the investment, you need to be aware of the requirements and the various strategies that can be used to ensure the investment is a sound one.
Here are some top strategies to a setting up a profitable laundry!
The key aspect while planning the laundry is to keep in mind the business model. Be it hospitality, healthcare, retail, or even work wear, knowing the model gives a clear picture of your target market and offers an estimate on what kind of investment you should make.
After defining your business model, the next step in creating a profitable laundry is to define your unique selling points (USPs), which you will use to create a competitive edge. With a highly competitive market, it is key to have a good USP. The checklist provided by MAGNARAB explains the various factors that create the USP of a commercial laundry. Some of them being, speed of service, quality process, reliability of machines, management efficiency, etc.
Facility & Market Information
While location is key, having the right set of equipment within the facility is the secret ingredient. And you, as an investor, are spoilt for choice in this regard. But a word of caution from MAGNARAB. The company says that it is essential to understand what will give the investor the maximum results and at the same time save on energy & water costs before deciding on the equipment.
While new projects have flexibility, existing laundries that are looking to refit their laundry or establishing a new one will find constraints within the existing building – water, energy, drainage and ventilation, for instance.
MAGNARAB says that the ideal layout should promote the best possible work ergonomics, the shortest distance between each process and optimum use of available resources. It is a common industry practice to describe machine capacities in kg or pounds of dry weight per load. Where there is not much variation in the article types or where the demand for deliveries is straightforward, this is the usual way to establish the capacity and quantity of equipment required.
Energy usage, water consumption, chemicals discharge to the environment and noise audible inside and outside your premises are the critical factors that make up your impact on the environment. MAGNARAB says that most washer extractors are broadly similar in their consumption of water energy and chemicals, but the one that has been independently assessed by a very reputable body makes for a sound choice.
Noise pollution is becoming a larger problem for laundries. It is now essential to check the noise output of each washer and gauge the impact of the entire laundry, with all equipment operational, prior to purchase. Noise and vibration levels during the washer’s spin and the roar of the tumble dryer exhausts are often the critical factors.
Above all, it is important to do your own market research to understand the potential risks and how to turn them into ‘profitable’ business opportunities. MAGNARAB is sharing their expertise with potential stakeholders at an upcoming webinar. The key is to provide a wealth of knowledge for those planning to get into the laundry market or reworking on their existing ones.
Learn more about setting up a commercial laundry in the exclusive WEBINAR ‘Designed to Deliver: A Webinar on Setting up a Profitable Commercial Laundries by MAGNARAB’ on July 15, 2020; from 3.30 pm to 4.30 pm.