In the Coin Laundry industry Water
Meter Analysis is the one of the ways through which we can calculate
the revenue. The results offered through this analysis are not
always exact but by doing this analysis properly, one can assess the
income within a certain margin of error. The concept is very simple in
the
Water Meter Analysis. Washer Machines are the prime source of
revenue at Laundromat, those machines use specific amount of water
for each wash. So when you check the amount of water used in the
machine for a specific period of time, you can ascertain the number
of times the washer machines have been utilized. Therefore you can
easily estimate the revenue.
Water Usage calculation
The water is sold by Water
companies in HCF or Hundred Cubic Feet units. 7.48 gallons of water
is equal to One cubic foot of water. So it is 748 gallons of water
per HCF (Hundred Cubic Feet). Instead of HCF, some companies may
write the actual gallons which have been used. To figure out the
total usage, find out the sum of HCF for 30 days and multiply it
with 748. Now to get the sum of gallons utilized each day, divide
the sum of gallons of water by 30. For example if Top loaders are
used 50 times a day in a Laundromat, you have to multiply the number
of times it is used (in this case it is 50) with the total number of
gallons used by a top loader to identify the total usage. After the
calculation, you can also verify these numbers on the meter to
verify whether they are
same.
Water Analysis Flaws
Water meter analysis is not
always accurate , it may be wrong due to many factors and buyer
should be aware about this. Sometimes, the water in the Laundromat
will be diverted or used by others. At times, dishonest
owners might show you a higher reading by just leaving the water
running before the sale. If you want to use the Water Meter Analysis
to gauge the operation in the Laundromat, perform it with
professional third party with the help of the IRS method for
auditing Laundromats. A consultant can help to do this analysis for
you, and then you can compare the reading with brokers or sellers.
In most cases, there will be a dispute between the broker and seller
based on the analysis. Avoid
relying on a Laundromat Broker to do this calculation for you, this
should always be done by someone who is subjective without any
financial interest in the transaction.
Estimation for Dryer Income
25-50% of washer returns will be
the Dryer income. Many stores follow many habits placed on location
and circumstances, hence till date there is no specific formula for
Dryer income. But normally the allocated time for every wash is 20
minutes. |
