Laundry businesses are prevalent throughout the nation, and there is a lot of room for growth and additional services as the industry evolves. While this industry is a lucrative one, there are some inherent risks that go along with owning and operating a laundry business. In this post, we’ll expand on some of the most common (and sometimes overlooked) exposures that these business owners face. The best way to mitigate this potential portfolio of risks is to equip the business with a CoinOp Advantage Insurance program.
High utility bills.
Running a laundry business obviously means using a lot of electricity and water. In fact, according to eHow, at many laundromats, lights stay on for 24 hours. The washers and dryers use gas (for hot water), electricity and water. The owner also has to provide heat or air conditioning for patrons. Utility costs can be as much as 30 percent of the gross income, although energy-efficient machines can trim this to 15 percent to 25 percent.
Coin laundry business owners rely on their utilities, and should they fall behind on payments, their business is headed for disaster.
Equipment malfunction.
As we mentioned in a previous post, equipment breakdown is another huge risk for coin operation laundry business owners. Whether a customer disregards warning signs, misuses equipment, or the machines are just suffering regular wear and tear, the cost of repairing and replacing washing machines and dryers can be daunting, especially as they come out of pocket.
Cash management.
Coin operated business rely on quarters to start machines. Therefore, these business owners have to lug around a lot of cash to the bank each day, which raises some security concerns. Money handling procedures are a huge priority here, especially for transportation to and from banks and overnight security.
About Irving Weber Associates
At Irving Weber Associates, we have a unique understanding of the Laundromat business. Our specialty programs offer protection to financially secure your business in the best way possible to ensure your success. For more information, contact our experts today at (855) 764-7406.