I FINALLY Got A Gas Station - But There's A BIG CATCH

I sort-of got a gas station, finally. The unfortunate problem is we're just getting the work for one, and I won't end up owning it. HOWEVER The good news is that I at least have learned I can do the roofing for it when we buy one!

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[saltyfish]

How did this guy go from a nasty little laundromat in the hood to buying a roofing company, real estate and now a gas station…. I’m confused. Something is not adding up. Btw I’m a fan, really just curious…

[WanderingCactus]

Amazon lockers are a cool thing to look into, AFAIK, they charge nothing to put them in, assuming your location is one they want, compare that to say Luxe (luxor?) whose lockers I think are better, or at least more versatile, but you gotta pay for them and they aren't cheap.

[jwg]

If you've ever dealt with an unbranded gas station and bad gas even once, you'll understand why people are willing to spend the premium as insurance... One call to BP and they're taking care of things.

[joemygawd]

Been subscribed to your channel for a while but I guess its been a while I watched your stuff. It seems the content has evolved since the purchasing vending machines in laundry mats. I enjoyed peeking into the entrepreneurs brain for 18 minutes. Keep up the good work.

[HDHQDIRECT]

Dude, I am in the industry and there's no way it costs 20 to 30 million for a car wash. I am including purchasing the property, building construction and equipment.

[backacheache]

I am really confused, the title of the video poses a question but the start of the video doesn't match the narrative and is instead about unloading what looks like foam insulation followed by an ad for credit company?

[EvieTheCat_OFFICIAL]

Quick math with some aggregious assumptions:
Weekends:
1700+700 quarters = $600
Undisclosed $1 bills 🤷 = $150
A weekend = $750.
50 /52 weekends (some may be dead) = 37, 500 expected.
Weekdays
$750 of the weekend, divided by 3 for per day sales, multiplied by 50% as I am aggregiously assuming it's 50% less busy during an average day than it is over the weekend, as nobody wants to do laundry during the weekday.
750/3/2= $125 per day
4 days a week * 52 weeks*$125 = 26, 000.
(For reference, this figure would be 52, 000 if we assume every day's sales are at the same level as the weekend)
Operation activity:
He said 0.25 per 8 minutes of a dry, a dry takes 1h maybe 1.25h's so he is likely charging $2 per wash and per dry (60 minutes/8 * $0.25= 1.875 to 80/8*0?25 = $2.5 averaging manually to $2)
$350 of revenue on a weekend /$2 means 175 wash and dry cycles. So divide this by 2 for a full cycle and another 2 for the number of loads done per customer, and we get:

88 customers expected per day.

Why do we care? Location concerns, and sanity check on utilities.

He said he bought this in a small town. He's claiming a small town supports 88 customers PER day using his laundromat. That's probably aggressive on some assumption. But, the only way I'm guessing that could work is a central location like downtown. So we will assume a premium rent in a LCOL town.

He sounds kind of like me so im going to assume South Dakota Sioux Falls. 200k population. This feels like a population that can support 88 customers needing laundromat / day.
So because it's a Laundromat, I'm assuming triple net lease. It appears about $6/Sqf of rent. He does not give an indication of size. I'm guessing 1200 sqf. 6*1200= 7200 rent.
Operation expenses (brutal guessing)
Rent: $7200
Utilities: $3500
Staff: ($15/h) $60, 000
Insurance: $3000
Rep & maint: $2000
Misc/office/unknown: $1500
Total estimated expenses: $77, 200

Estimated income: 37, 500+ (high guess) 52, 000 = 89, 500

Estimated Net income: 89, 500-77, 200 = 12, 300.

(STOLEN COMMENT)
ROI
Revenue is 89, 500, likely a 1x to .9x revenue multiple if he purchased this at what it's worth. So he should have paid 89, 500 for this business. That said. Throw in some goodwill -- round it off to 100, 000. Estimated yearly return on investment is 12.3% (12, 300/100, 000).

Assumptions
1. Owner is not considering time spent IN the business. 12.3% is a return only on capital, not on labour and opportunity cost.
2. The biggest variable is employment expenses. I am assuming only 2 minimum wage staff paid hourly for part time wages. This could be wildly different than reality. Do situation analysis based on your own assumptions.
3. Most paper cash seen is float money. Revenue is primarily driven by quarters. Only 1 flash of bills shown for vending machines ($78) but looked like 2 available to pull so $150.
4. Did not factor in COGS for the $150 vending machine sales. If you want quickly assume a 100% markup.
5. Obviously where this takes place and it's effect on traffic and rent
6. I'm sure other obvious assumptions but this should cover my bases on an obviously wildly estimated business summary.

[GeordyColeman]

Joy, if I may, you are using the sent tree wrong. You are meant to only expose a little at a time using the bag, slowly pulling it down a little at a time. That's why it smells so strong. I only say that because I know you are into helping people, and if you tell your customers about it, you might get some long-standing ones faster, plus it will save them some money

[fxstsi]

You should’ve got a tracking number with your order from the supplier.
Having worked in translation as a driver and in operations I feel pretty good believing you were given notice. Basically it boils down to no one reads emails or takes deliveries seriously until they show up.

Thanks for the motivation. I'm in cook county, near Naperville. We have to start over with our investments because Covid killed us. I wish the government did more to protect small business owners. And it was a shame a lot of those loans were given to the wrong people. I love the laundry mat ideas. I seen some investments in rockford too, but seems that area isn't that great like it use to be.

[Dancing_Alone_wRentals]

Good to see you enjoying the next project.
( I had to raise the white flag....the first 2bd 1bath went up for sale as-is. After years I could not put together a crew. Wishing you all the best in the New Year! )

[AttilaSVK]

Man, I would love to pay 3, 50 for a gallon of gas :D I pay 1, 50 for a liter of unleaded 95 here in Hungary, that's about 5, 68 bucks for a gallon.

[HunterDishner]

14:25 I've done the same thing. My car is a hold for neutral and I had the same issue in the end

[sohx]

Black Ice is my favorite "flavor".

[zachm.]

Homeboy in the red sweater, LOL I thought he was gonna fall over!

[thedogman]

I can’t wait to see your end of the year numbers on the roofing company. I have a little bigger operation then you have so I have a good idea on the numbers.

[Tonyv]

More videos! Longer videos! I like your content!!

[olicoasters]

The title of this video made me immediately think of that 2000’s K-Mart commercial

[tucobenedicto]

Delta Sonic is a good car wash. In Buffalo there is NOCO refinery or gasoline warming/storage. It's no name gas so they buy probably from them with thier own pumps.

[Twentysix]

I finally figured it out, YOU’RE THE KINGPIN, YOU’RE WILSON FISK !!!