has anyone here ever owned a dry cleaning business?

[cantdrv55]

Reason I ask is the new owner of an existing business here in town just bought a 1 mil dollar house about two miles from me. He bought the biz about 8 months ago then relocated from Sacramento. Get this, he's only 28 years old. I guess George Jefferson ain't the only one a movin' on up!

[URY914]

I hope he never loses a judge's pants.....

[TerryBPP]

Cash business are great ways to launder money (no pun intended).

[asphaltgambler]

A long time friends family, then she, owned a dry-cleaning business in the northern Va area. Then (25 yrs ago) had 7 locations and doing very well.

Fast forward to now

Seems the chemicals, equipment and procedures are under ever intense control and governing by the EPA. To the point that the gross margins from the past have shrunk to a very, very thin line.

My friend determined that the industry had peaked and that it was just not worth the time and financial investment. She sold out four years ago.

[boboli]

I worked for a guy who owned a chain of cleaners in Florida in the mid-80's. Made good money,but not enough for a million dollar home. Maybe the kid inherited some coin or is doing something else besides laundry.

[Chocaholic]

Relocated from Sacramento. Hmmm. Good chance he sold his middle-of-the-road $1.3M suburban home, and used the windfall to buy the Taj Majal wherever you are (assuming you're not on the left coast).

[vash]

28? his parents helped him.

(or lots of folks leave coins in the pockets, and the kid has one hell of a coin jar going)

[cantdrv55]

Originally posted by Chocaholic
Relocated from Sacramento. Hmmm. Good chance he sold his middle-of-the-road $1.3M suburban home, and used the windfall to buy the Taj Majal wherever you are (assuming you're not on the left coast).

It's the other way around. I am on the left coast. Vash is probably right in that his parents may have helped him.

[kaisen]

Coin operated laundry $$ > dry cleaning business $$

[legion]

When I lived in Naperville, my first job was a dishwasher for a local restaurant. The owner's parents had bought them the restaurant as a way to set them up fo the rest of their lives. It's a wonder the restaurant survived, as the owners sat in their office, drank booze from the bar, and played Sega Genesis all night every night.

[Chuck Moreland]

Read the book "the Millionaire next door". As I recall the business that produced the most millionaires was Dry Cleaning.

But if he recently bought the business, he hasn't made any money from it yet.

And as Wayne points out, having a million dollars in debt is not the same as having a million dollars.

[the]

Originally posted by Chuck Moreland
Read the book "the Millionaire next door". As I recall the business that produced the most millionaires was Dry Cleaning.

I think a lot of that has to do with the people that have traditionally gone into dry cleaning, moreso than the profitability of owning a dry cleaning store.

Yes, you can become a millionaire, but those that have done it generally work the businesses tirelessly, both the husband, wife (and often children) work there 12 hours per day 6 days per week, they hire a minimal number of paid employees because if they do, the salaries eat up the profits. And they tend to be frugal savers.

[Chuck Moreland]

You're right.

The bit about being frugal was sorta the central theme of the book. That buying a lot of expensive things and accumulation of wealth are not the same thing. With the exception of appreciating assets (real estate) they are almost polar opposites.

Everyone assumes the guy spending a lot of money has a lot. Usually not true. Usually they are just spending every penny, and then some. With no wealth accumulation.

[the]

Originally posted by Wayne at Pelican Parts
That's the neat little secret about classic / collector cars. They have for the most part fully depreciated, and when you buy them, you can often sell them for near or higher than what you paid.

Like you did - that was a sweet sale!

[epbrown]

Originally posted by Wayne at Pelican Parts
That's the neat little secret about classic / collector cars. They have for the most part fully depreciated, and when you buy them, you can often sell them for near or higher than what you paid. Of course, you still lose money due to the maintenance, but financially, it's far better than buying a new car...

The secret to it: Yes, you can wind up only paying running costs. The trick to it: you have to be able to buy well. People don't often understand that it's better to spend $90k on a nice 356 Speedster than $40k on a project, because the nice one will still be worth $90k in a few years while the project will most probably become a pile of boxes in the garage your spouse complains about.

[RANDY P]

if this is his 1st foray into being self - employed (read - less than 2 years) he didn't qualify clean.

8 mos. on your own isn't enoughtime for ANYBODY.

He probably listed himself as an employee of his own biz.

rjp