The topics of discussions with the new set of mostly young investors have changed from the old school; Equipment features to business models, machine unit prices to value propositions, size to scope, payment terms to extended warranties and much more on the fundamentals of the business.
Owing to low entry barriers and an oversupply of machinery and supplies, availability of experienced P&L managers, commercial laundries had a disproportionate chunk of cowboy operators since many years in Dubai. Owing to incorrect and expensive initial choices and estimates, many have folded their operations in the past 3 years but the trend had almost stopped in late 2019.
MAGNARAB had acquired more than 15 such laundry facilities, starting in 2017 and we now hold stocks with a combined storage in excess of 15000 sq.ft, of some of the rarest and high value quality equipment making us one of the most valuable equipment trading company in the region in terms of stock value. In 2020, MAGNARAB has signed for interesting new projects and expansions in retail and workwear and are looking forward to signing few hospitality and healthcare projects, many of whom are scheduled to open in early 2021. And the exciting fact is that these potential investors are the smartest people to have entered this business thus far, and they are bound to change the name of the game in the coming years!
Click to watch the full webinar: Designed to Deliver: Setting up Profitable Commercial Laundries