Originally posted – April issue/2012
Entrepreneur Adds Two Self-Service Laundries to a Mix of Business Ventures
Clearly, Kwah Wai Pang likes to stay busy.
With a background that includes general management, administration, computing operations, programming, and system design and development, Pang has worked in business development for more than 20 years. In addition, the Oklahoma City resident has owned and operated five gas stations with attached convenience stores since 2004. And, in his “spare time,” he also likes to dabble in residential real estate – owning apartment, duplexes and single-family homes.
But, apparently, that wasn’t enough to fill Pang’s plate – who, in 2010, decided to open two self-service laundries just three months apart from each other.
“I was looking for a way to diversify my business portfolio,” Pang explained. “I discovered coin laundries had a lot of the same characteristics as convenience stores; mainly, customer service is the key to success.
“Also, laundromats are a recession-proof business,” he added. “You have to do your laundry even if the economy is not doing well.”
Pang opened the 2,000-square-foot 66 Laundromat in Oklahoma City in March 2010, and in June 2010, he followed up with his 7,500-square-foot 44th Street Laundromat, also located in Oklahoma City.
“The first location was a smoke shop,” Pang said. “That first one’s location is on the east side of one of my gas stations, and there are businesses on two corners of the intersection; it’s directly across the street from a high-volume shopping center.”
“And the second store had been a Blockbuster Video, but it’s the perfect location for a laundromat since it sits on a busy intersection. The Blockbuster had been closed and the building vacant for some time. It has great demographics for a laundromat. The average household income is below $50,000, which is perfect for a coin laundry since most of those households don’t have washers and dryers in their homes. The other factor I like was the size of the households, which averages more than six per family – and the population just continues to grow. The demographics are some of the best I’ve seen at a location in a long time. It’s just great for a laundromat.”
44th Street Laundromat is a shopping center, which also features a grocery store, a Family Dollar, a Subway restaurant, an insurance agency, a convenience store and several thriving specialty retailers.
Each location, according to Pang, is on a 10-year lease, with two, five-year renewal options for a total of 20 years at each store.
“We had to retrofit both spaces completely to accommodate laundromats,” Pang noted. “During that time, we had a lot of obstacles in our way, such as building inspections and plumbing inspections – and we had to redo our drainage system twice.”
All in all, 66 Laundromat took 90 days to retrofit at a total cost of $175,000, with the equipment costing $125,000. With 44th Street Laundromat, the build-out was scheduled for 90 days, but it ultimately took 120 days to complete; that price tag was approximately $750,000, and the equipment represented slightly more than $600,000 of that total price.
To recoup his sizable investment in two laundries nearly simultaneously and to carve out a niche for himself in a bustling marketplace that features more than six other self-service laundries within a two-mile radius, Pang has turned to advertising.
In addition to installing huge signs in the front of his stores, he has done a lot of direct mailings that have included free-wash coupons, as well as distributing several flyers door to door at the nearby apartment complexes.
What’s more, just its size alone helps 44th Street Laundromat, which is unattended, to stand out from the crowd, according to Pang.
“The 44th Street Laundromat is completely different from any other laundry in this city,” he explained. “First, it’s a 7,500-square-foot building. Also, we have the most advanced washers and dryers, and we also have a card reader that enables credit cards and loyalty cards to be used.
“The store has a lot of space for families with kids to play and relax,” he continued. “In our upstairs lounge, we have a big-screen TV with video games and a snack machine that includes ice cream and sandwiches. We offer free coffee daily and free Krispy Kreme donuts every Saturday and Sunday morning. We also provide free Wi-Fi for any customer who signs up at the laundromat. And, last but not least, we built a 60-foot by 18-inch aquarium right in the middle of the laundromat.”
Both of the laundries – open from 7 a.m. to 11 p.m. daily – offer wash-dry-fold services, which are $1 per pound with a $10 minimum.
“This segment of the business is moving slower than I had expected, nevertheless it is growing,” said Pang, who employ three full-time attendants at 66 Laundromat. “The main reason [for the slower growth] is the fact that 90 percent of the customers in this area are Hispanic, and they are more accustomed to doing their own washing.”
Currently, Pang is not actively pursuing any commercial accounts, but he hasn’t ruled it out for the future. “We really should try to attract some commercial business,” he admitted. “I just need to develop a plan and go after it.”
Given his professional background and prior track record, it shouldn’t be long before the commercial business starts rolling in.
“My strength is business development,” Pang said. “I have a strong ability to identify business opportunities and get the deal done. Since we opened, business has been good and almost everything has moved according to plan. There were no major surprises. Revenue is growing monthly.
“We plan to open more laundromats this year and next year,” he added. “We are working with a consulting firm to put a business plan together for offering franchising opportunities and/or a partnership program to expand quickly.”
Equipment Mix
66 Laundromat – Oklahoma City, Okla.
16 Speed Queen 18-pound frontloaders
4 Speed Queen 30-pound frontloaders
2 Speed Queen 60-pound frontloaders
(Washer prices range from $1.75 to $6.75)
10 Speed Queen 30-pound stack dryers
2 Speed Queen 75-pound dryers
(Dryer prices range from 25 cents for five, six or seven minutes, depending on size)
1 American Changer bill changer
4 R&B Wire Products laundry carts
1 Vend-Rite Manufacturing six-column soap vending machine
1 soda vending machine
1 snack vending machine
Multiple video games
1 32-inch television
Wash-dry-fold service: $1 per pound; $10 minimum
Distributor: KeeWes Equipment Co., Springfield, Mo, (417) 862-8464
44th Street Laundromat – Oklahoma City, Okla.
12 Speed Queen 20-pound frontloaders
8 Speed Queen 30-pound frontloaders
8 Speed Queen 40-pound frontloaders
8 Speed Queen 60-pound frontloaders
8 Speed Queen 80-pound frontloaders
(Washer prices range from $2.25 to $9.25, depending on cycle modifiers; all machines feature Quantum Gold controls)
14 Speed Queen 30-pound stack dryers
4 Speed Queen 45-pound stack dryers
8 Speed Queen 75-pound stack dryers
(Dryer prices range from 25 cents for five, six or seven minutes, depending on size)
88 Spyderwash credit/debit card readers
2 American Changer bill changers
12 R&B Wire Products laundry carts
2 Vend-Rite Manufacturing 12-column soap vending machines
Multiple beverage vending machines
Multiple snack vending machines
Multiple video games
3 large-screen televisions
2,000 square feet of open space for vending, lounge and children’s play area
Wash-dry-fold service: $1 per pound; $10 minimum
Distributor: KeeWes Equipment Co., Springfield, Mo, (417) 862-8464
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