What Advantage is There Using a Broker to Sell Your Laundry

Throughout the history of civilization, when treaties, pacts and deals were to be made, agents were used. Instinctively, it was seen that a less involved, more neutral third party would be able to negotiate a better deal between the parties than they could do themselves. This is why nations use ambassadors, super star athletes use agents to negotiate contracts and why the majority of coin laundries are sold by laundry brokers. The deal maker is less likely to become emotionally involved, as a buyer or seller might. In direct negotiations, one party might say something seen as ridiculous or insulting by the other side. It could kill the deal. Said to a third party, it gets smoothed out and watered down by the time it''s reported to the other side, and the deal is still on. It''s natural for buyers, especially new buyers, to be suspicious of a coin laundry seller''s records. After all, it''s an all cash business, and new buyers, without the help of an experienced third party really have no way of verifying reported income. It''s also natural for sellers to be leery of prospective buyer''s ability to qualify to buy their business. One of the principal jobs of a coin laundry broker is to prequalify buyers. Brokers save sellers from wasting their time on everyone who answers an ad about a laundry. No one wants to spend their time dealing with people who aren''t serious or can''t qualify to buy. Brokers also have only so much time and they are usually very serious about not wasting it on tire kickers, lookey loos or on those who will probably never be able to qualify to purchase your laundry. There is only one advantage for owners selling their own business. They don''t have to pay a commission. A disadvantage is that they''ll likely get a lower price than using a broker might bring. Time is a big factor. To sell on your own takes a lot of personal time. Who answers the phone, who weeds out the unqualified buyers and wastes time explaining the coin laundry industry? If time is money, then an owner can spend a frustrating lot of time and effort to keep from paying a usual commission. There is proper paperwork. Escrows do sales documents, but unless they are told otherwise, it''s the same for all sales. They don''t know if the note is to include an acceleration clause. They don''t know what values to place on good will, equipment or improvements. They are not concerned about tax consequences. All they want is the deal closed and the proper money paid. An experienced coin laundry broker has been part of many sales, and should be in a position to make suggestions as to what terms and conditions documents should include. They are not lawyers and will not offer legal advice, but they can offer suggestions based on their previous experience. Sloppy paperwork can cost sellers far more than they''d pay in commission. In the sale of existing coin laundries, the listing and selling brokers are usually the same. There may be two different agents involved, but they are probably both employed in the same organization. Most laundry brokers keep listings exclusive, and since there''s no multiple listing, one of the broker''s agents will find the buyer. Although the listing broker officially works for the coin laundry seller, he also provides services for the buyer. His job is to turn prospects into purchasers who are able and willing to pay a fair price for the coin laundry. Often this is more than the owner would have gotten on his own. That doesn''t mean that buyers will be paying more than the laundry is worth. It means the broker shows potential buyers the true value of the business, and helps them to arrange the purchase. Buyers entering a new field, as the case of first time laundry buyers, have basic fears because this industry is unknown to them. The broker is responsible to provide a buyer with sufficient background in the business to permit them to make their buying decision with confidence. Further, brokers have a moral, if not a legal responsibility, to provide at least some business training for the buyer. A buyer needs to know how to arrange for equipment repairs and find sources for parts, vend items, service training, etc. When all is said and done the ethical coin laundry broker will be there to assist the buyer throughout the buyer''s ownership and be available to offer advice and assistance whenever it is needed. Besides, to do so is just good business. After a time, the new owner may decide to sell. The broker, that has treated him right from the beginning, is far more likely to get the listing and get the chance to earn another -commission. The coin laundry broker should become expert in learning the prospective buyer''s aims, ambitions and needs. He has to understand their income level and tax picture. He needs to know which kind of laundry has the best potential to meet the needs of that buyer. Then, he must show the laundry''s value in relation to the buyer''s personal situation. Most new buyers do view the seller''s books and other information with suspicion, because this is a cash business. Most do not know how to find or compute the real value of the laundry. Many sellers imply that they have been pocketing ''unreported income''. Most sellers actually report it all on their taxes, but only smile if they are asked. It''s one way an unscrupulous seller can get a higher price for his laundry. This is one of the largest causes of lawsuits, and the broker has an obligation to keep that from happening by showing the buyer how to review laundry income records and be confident in the purchase. Brokers can show buyers comparative laundries in the area, and add credibility to the asking price. Brokers teach buyers enough about the business to give them confidence that they are being told the truth about a laundry they are considering a purchase of. Also, brokers have their own business reputations to protect. When you are ready to buy or sell a coin laundry, consider using a broker. Experienced brokers structure a sale in such a way to maximize the seller''s price and cash, and achieve the best value and balance of cash flow for the buyer. Brokers are able to attract qualified buyers. They sell more laundries, and very often get sellers a higher return than they could hope to obtain on their own. Remember, the broker''s fee you pay should be more than made up for by the success of the transaction they produce and the amount of personal time they save you. You receive a fair sales price and the buyer gets a good deal so both sides are happy. That''s a win, win deal.