LAUNDRY FEASIBILITY STUDY
Laundry Shop Profiling
II. MARKETING ASPECT
The Laundry Business Industry
Supply and Demand Analysis
Plotting of Laundry Shops
iii. Comparative Price Analysis
iv. Marketing Strategies
III. TECHNICAL ASPECT
Types of Washer & Dryers
Preparing & Pre-Treating
Loading The Washer
Laundry Shop Procedure
Lay-out and Machine Requirements
IV. MANAGEMENT ASPECT
V. FINANCIAL ASPECT
Projected Return of Investment
I. LAUNDRY INDUSTRY
Since the early 1990’s the household market, particularly the middle income segment, has been an emerging market since the services of household help, or “labandera” had become difficult to obtain or if available, have become relatively expensive. This demand has been manifested with the mushrooming of laundry shops all over Metro Manila. Big Laundry companies whose main focus is institutional accounts, have also expanded their business to cater to this market segment with some offering franchises.
The household market is considerably saturated in regards the number of existing laundry shops. Many households still perceives the laundry shops as an expensive alternative primarily due to their impression of laundry shops charging high prices since these establishments maintain big operating and overheads cost and put the premium on their established image. Currently 50% of the potential household market is availing the services of laundry shops.
TYPES OF LAUNDRY BUSINESS
1. Large Laundry Houses (Famous, Manila Stream)
2. Franchise Laundry Networks (Lavandera Ko, Metropole)
3. Dry Clean & Pick-up (located in malls)
4. Stand Alone Laundry Shops
B. LAUNDRY PROFILING
Table 1: Registered Laundry Shops
| 2007 (Projected)
*2007 Projection is based on actual data from Jan to May then averaging for the remaining months * Monthly average for 2006 is 34 units while 28 shops for the year 2007 Chart2
* Data was based on DTI Registered Laundry Shops
Table 2: Forms of Ownership
| FORM OF OWNERSHIP
| Sole Proprietorship
| Grand Total
| MAKATI CITY
* 2006 to 2007 Data
This table shows that majority of laundry shops were sole proprietor which covers 95% of the total registered shops. 4% represents the corporations while 1% comprises the partnership.
Advantages of Sole Proprietorship are in complete control, and within the parameters of the law, may make decisions as they see fit. Profits from the business flow-through directly to the owner's account while on the other hand they are legally responsible for all debts against the business. Their business and personal assets are at risk. May be at a disadvantage in raising funds and are often limited to using funds from personal savings or consumer loans.
Advantages of a Partnership
4 Partnerships are relatively easy to establish; however time should be invested in...
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