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SUDS. Who, What, Where & Why? Suds is a Laundrobar & Café, located in the Old Port Green Laundromat in a Combo Bar & Café Wi-fi & Free Parking Music &

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Presentation on theme: "SUDS. Who, What, Where & Why? Suds is a Laundrobar & Café, located in the Old Port Green Laundromat in a Combo Bar & Café Wi-fi & Free Parking Music &"— Presentation transcript:

1 SUDS

2 Who, What, Where & Why? Suds is a Laundrobar & Café, located in the Old Port Green Laundromat in a Combo Bar & Café Wi-fi & Free Parking Music & Entertainment Local Espresso & Coffee, Snacks, Sodas & Beer Why? Maine Weather + Clothing = Half a Year + Trapped in a Laundromat Why not do it guilt-free and somewhere fun?

3 Mission Statement To provide Portland with clean, green, and affordable laundry services in a comfortable café environment. Suds aims to help customers reclaim their laundry time for themselves in Portland's only laundrobar & café. We offer free Wi-fi and entertainment so our customers can relax, multi-task, socialize, and enjoy locally-sourced coffee, baked goods, snacks & beer while their dirty laundry gets done.

4 Location 141 Middle Street Portland, Maine

5 Theme Green Local Modern/trendy

6 Food and Drink Locally sourced: -beer & soda -coffee -salty snacks -sweets

7 Hours of Operation Daily 7:00 a.m. – 11:00 p.m.

8 Floor Plan

9 Competition 15,145 Laundry Patrons Intown Aged Competitor Locations West & East Ends Downtown Neighborhoods of USM Product Offering: Identical, Similar, or Dissimilar Number of Competitors in Each Category: Identical = 0, No Laundrobars Similar = 1, Green Laundry Dissimilar = 10, Not Green

10 The Washboard Eco-Laundry Strengths Wet Cleaning Wash, Dry & Fold $1/lb. Wi-fi Close to Tavern, Convenience Store & Café Hours Sync with the Tavern Member of Portland Buy Local Established Clientele & Commercial Accounts Weaknesses Limited online presence (bad website, no Facebook, Twitter, Mobi deals, etc.) No Free Parking Limited Space & High Demand Not Located Central to Downtown No cafe atmosphere No Onsite Food or Beverages

11 Strategy: Product Offering Laundry With only one competitor to offer a substitute product, Suds can focus on competing with the Washboard Eco-Laundry on: Price Proportion of sales derived from self-service (Washboard’s is split 45% between self service and full service) Location Amenities: atmosphere, entertainment, in-house beverages and foods Café & Bar Multiple competitors in the Old Port. Instead of competing head-to-head, we emphasize our unique product offering & co-brand with other local coffee, beer & baked good producers. This does two things: Delivers consistency with our locally produced goods and our commitment to sustainability Delivers superior quality at comparable price

12 Strategy: Overall Being a green laundromat and offering only locally produced foods & beverages, Suds maintains its stewardship of our city, state, and the planet. Suds competes not only to turn a profit, but to better the environment and to improve the local economy. Goals: Year 1 Establish a Clientele & Drive Retention Rates Higher Year 2 & Beyond Install Solar Panels, Wind Turbine – Offset Energy Consumption & Integrate Additional Electronics (Arcade Games, etc.) Increase Stewardship & Green Offering (Sponsorships of Causes) Double Publicity & Marketing Efforts & Create More In-House Events

13 Assumptions  Portland population: 63,153  44% of the overall Portland population, or 27,787 individuals are between the ages of  15,801 non-family households in Portland  28,990 of the units are occupied  54.5% of the Portland housing units are occupied by non-family households - our target demographic  15,145 potential, overall Laundromat patrons  Target 20% of the potential patrons in Year 1, which is 15,145 x 20% = 3,029  78,749 unique visits from patrons annually Payroll Opening hours7AM-11PM16 hours/day Shift 1Shift 2 7AM-3PM 3PM-11PM Hourly Pay Daily Pay regular staff12 $ 3.75 $ manager11 $ $ Total Daily $ Total Weekly $ 4, Total Yearly $ 240,240.00

14 Target Revenue Forecast Assumption15144people in portland are our targeted customer Targeted Market Share20% Targeted Customer3029Assume customer visit Suds every two weeks with 1 load of laundry Annual Growth Rate7% Customer staying in Suds80% Customer buying coffee50% Customer buying food40% Customer buying beer50% Customer drops their laundry and leaves20% Year 1Year 2Year 3 Revenue Number of Visit Washing $ 188, $ 202, $ 216, $ 3.00/load Drying $ 125, $ 134, $ 144, $ 2.00/load Laundry Service $ 110, $ 117, $ 126, $ 7.00 /load(wash-dry- fold) Café $ 78, $ 84, $ 90, $ 2.50/person Food $ 75, $ 80, $ 86, $ 3.00/person Beer $ 110, $ 117, $ 126, $ 3.50/person Total Revenue $ 689, $ 738, $ 789,801.89

15 Cost Analysis Cost/Expense Smartcard system $ 80, Construction cost $ 200, Equipment(Washer&Dryer) $ 480,000.00* 30 washers & 30 dryers Utilities(Café Cost) $ 75, Total Sunk Cost $ 835,000.00* Borrow from Steel Head Capital, 7 years 6% ** Getting from 500 USM faculty, $110/each. Giving discount on returns Year 1Year 2Year 3 MaintenanceFC $ 1, * $150/month Rent (3,500 sq ft)FC $ 105, * $30/sq. ft. PayrollFC $ 240, Promotion and MarketingFC $ 6, * $500/month Licenses/PermitsFC $ 1, $ 1, InsuranceFC $ 10, Water Heating SystemVC $ 30, $ 32, $ 34, Food costVC $ 35, $ 37, $ 40, $ 1.41/food Coffee costVC $ 7, $ 8, $ 9, $ 0.25/coffee Alcohol CostVC $ 34, $ 37, $ 39, $ 1.10/beer Interest ExpenseFC $ 50, $ 42, $ 35,785.71**Simple interest Principal repaymentFC $ 119, Miscellaneous costVC $ 2, $ 2, $ 2, Total Annual Cost $ 643, $ 644, $ 645,170.60

16 Target Profit Year 1Year 2Year 3 Total Revenue $ 689, $ 738, $ 789, Total Annual Cost $ 643, $ 644, $ 645, Net Annual Profit $ 45, $ 94, $ 144,631.29

17 Funding Investment Company -Steel Head Capital (7 Years 6%) -$835,000 Angel Investor (Shareholder) -Owner of Skillful Vending, Ross Furman -Pool tables, Darts -$65,000


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