FAQs
The average laundromat makes between $450-$500 per day. This includes revenue from the washers, dryers, and other secondary income streams such as vending revenue. The range of daily income from self service laundry is around $100 per day to $1,500 per day.
How much profit does the average laundromat make? ›
According to Coin Laundry Association, the annual turnover for a laundry shop can vary significantly and can range between $30,000 and $1 million. However, based on the total market value and the total number of laundromats in the US, the average annual turnover of laundromats is $142,857.
How profitable is a small laundromat? ›
Laundromats in the U.S. see an average cash-on-cash ROI of 20-35% (9)—much higher than most alternative investments. And when you factor the flexibility and low labor costs, laundromats just make sense.
What is the average return on a laundromat? ›
A typical laundromat returns between 25%-35% return on investment (ROI).
How much passive income does a laundromat make? ›
While not entirely passive, laundromats do provide a high rate of return, usually 20-25%+, for a minimal amount of time investment. Any business that deals with people and equipment will need some managing, but there are ways to set up your laundromat business to make it relatively passive.
Can a laundromat make you a millionaire? ›
Dave Menz's initial purchase of a run down laundromat he found on Craigslist has led him to becoming a millionaire. Here's how he did it – and you can, too. As of 2022, there are 18,264 laundromat businesses in the United States that generate about $5 billion in combined nationwide gross annual revenue.
What are the weaknesses of laundry business? ›
Cons of Owning a Laundromat
- High Startup Costs. Don't mistake “simple” for “cheap''. ...
- Potential for Failure. ...
- Competitive Industry. ...
- Unforseeable Demands. ...
- Disorderly Customers. ...
- Significant Capital Expenses. ...
- Volatile Customer Demand.
How can I increase my laundromat revenue? ›
Laundry Services: Offering customers additional laundry services is a common method for laundromats to gain additional revenue. Wash and fold, delivery, ironing, and dry cleaning are a few examples of laundry services that can help attract new customers and increase engagement among existing customers.
How do I start investing at a laundromat? ›
Here are some valuable tips for buying a laundromat and maximizing the return on your investment:
- Start with a financial assessment.
- Decide if you want a partner.
- Consider just buying the building.
- Hire a sharp estate agent.
- Consult with multiple lenders.
- Have a 'why' before investing.
- Look into REITs.
Are laundromats recession proof? ›
Laundromats are actually quite recession-resistant. Unlike other businesses, people still need to wash their clothes even when money is tight. So, while you may see a decrease in business during a recession, it is unlikely that your laundromat will go out of business.
Put another way to make for an easier comparison with laundromat valuations, at a 5% cap rate a commercial property is valued at 20 times the net operating income. A laundromat, however, is typically valued at 3.5-4.5 times the net operating income.
What are the margins for owning a laundromat? ›
All-in-all, the average cost of a laundromat per month depends on several factors. But an owner who runs his or her store well – who keeps it clean, repairs its equipment quickly, uses energy-efficient systems, and offers good customer service – can expect to see profit margins of about 35 percent annually (source).
How do I estimate the value of my laundromat? ›
Start with a multiplier of 50. Then, adjust it up or down in response to the factors that impact a laundromat's value and the strength of the area's real estate market. Finally, multiply the laundromat's monthly net profit by the multiplier that you decided on. This should give you an idea of the business's value.
What is the ideal monthly ROI for a laundromat? ›
Laundromat business model
With an ROI (return on investment) of between 20-35%, laundromat businesses have a 94.8% success rate, bringing in a gross income anywhere from $30,000 to $1 million a year.
Is a laundromat an easy business? ›
Running a laundromat is fairly straightforward – the equipment is easy to maintain, labor costs are low and there's no inventory involved. It's also a reliable source of income, as you can expect a steady stream of customers at any time of the year.
How profitable is a laundromat vending machine? ›
How profitable are laundromat vending machines? Laundromat vending machines are a very solid way to make some income. You can even finance most new ones for less than $500 per month, and you'll likely see an ROI of around $1,000 per month.
Is laundromat a good side business? ›
Laundromats tend to be profitable even in an economic downturn. During a recession, more people will turn to self-service laundry rather than outsourced laundry or dry cleaning.
How do I write a business plan for a laundromat? ›
What to Consider When Writing Your Laundromat Business Plan
- Location of Your Laundromat. ...
- Type of Machines: Coin, Coin & Card, or Card Only. ...
- Additional Services and Amenities. ...
- Hours and Staff Considerations. ...
- SWOT Analysis. ...
- Who is Your Competition? ...
- Who is Your Target Market? ...
- Financial Costs/Sales Forecasting.
Does a laundromat save money? ›
Laundromat machines are highly efficient and use much less water than washing machines at home. At a laundromat, the washing machines typically use only 15 gallons of water, while an average washing machine at home generally used double that amount. That will save you money on your utilities.
What is the failure rate of laundry business? ›
Success Rate/Return on Investment
The laundromat industry sees about a 95% success rate. Laundromat businesses average between 20-35% ROI.
High utility costs
A laundromat relies on electricity, water and sewage for daily operations. As utility costs increase, you might find it hard to turn it into a profitable business. While you can't control inflation, you can definitely control the energy and water efficiency of your equipment.
What are risks in laundry business? ›
There are a number of risks associated with laundry operations including fire, water damage and health and safety, which if appropriately identified and managed can be greatly reduced or even avoided.
How much money do I need to invest in laundry business? ›
How Much Money You Need to Start a Laundromat Business. The minimum initial investment required to start a laundry business when using leverage is $50,000. When purchasing a laundry business leveraged, plan for a minimum of $200,000. When building a new laundry business, a minimum of $250,000 will be required.
What is the target market for laundry business? ›
Individuals and families are often the target market for laundromats, although full-service laundries serve both individuals and companies such as hotels, hospitals, and restaurants.
How can I reduce my laundry business costs? ›
8 Tips To Save Money & Reduce Utility Costs at Your Laundromat
- Invest In Energy Efficient Laundry Equipment. ...
- Clean and Maintain Machines. ...
- Encourage Cold Water Use & Install Ozone. ...
- Use a Light Timer or Sensor. ...
- Adjust Laundromat Temperature. ...
- Train Laundromat Staff. ...
- Share Eco Friedly Practices with Customers.
How much can you make doing laundry? ›
Laundry Care providers do laundry at home for people in their area and are earning over $15 an hour for the work. Even beginner providers and people in new regions are making on average $150 a week.
Are car washes a good investment? ›
Research shows that small-scale, self-serve car washes can earn around $40,000 annually in profits, while more extensive, tunnel car washes can make close to $700,000 a year. Even though it may take some time to see the profit after you start, the return after a few years can very well pay off.
Why do people use laundromats? ›
Most people do not have enough storage space in their homes to store a lot of clothes. Laundromats provide an extra place to store your clothes while they are being washed, which is especially helpful if you do not have enough storage space at home.
Is a laundromat profitable 2023? ›
During the pandemic, laundromats were one of the few businesses that remained open, proving that the industry is extremely resilient and will continue to provide store owners with dependable income in 2023 and beyond.
What do laundromats do with lost clothes? ›
Generally, if left in a washer the attendant will dry them, to keep them from smelling, you can then retrieve your cloths by paying the drying cost and a small fee for finishing your laundry. Once dry, or if already dry in the dryer, they will be set aside for a few days to see if the owner returns.
The laundry business can be seasonal. But the swings aren't as bad as most businesses. If you owned a car wash and it rained for two or three weeks.
How much does the average person spend on laundry in the laundromat? ›
Combining all of these factors, the average cost of a load of laundry is $1.27. At this cost, if you do one load per week, doing laundry costs $66.04 per year. If you do four loads per week, doing laundry costs $264.16 per year. If you average eight loads per week, doing laundry costs $528.32 per year.
What is a fair cap rate? ›
Investors hoping for deals with a lower purchase price may, therefore, want a high cap rate. Following this logic, a cap rate between four and ten percent may be considered a “good” investment. According to Rasti Nikolic, a financial consultant at Loan Advisor, “in general though, 5% to 10% rate is considered good.
What percentage of Americans use laundromats? ›
That number is 30%. So 30% of the US population (317,000,000) is 951,000. I believe these numbers are plausible as I work in a real estate office and this is based on trends. Is the USA the most racist country in the world?
What is the cash flow of a laundromat? ›
But it begs the question, what is the best cash-flowing investment to acquire. Laundromats make the best cash-flowing investments. With an average, unleveraged return of 20-30%, the average laundromat investment is far superior to the average real estate investment, which will cash flow between 7-10%.
How much do laundromats make in NYC? ›
How much does a Laundromat make in New York? As of May 7, 2023, the average annual pay for the Laundromat jobs category in New York is $28,273 a year.
How much does a laundromat make in Australia? ›
As a general guide, the average Australian laundromat generates returns of approximately 25 percent of the initial investment each year, translating into earnings ranging from $300 to $1300 per day.
What is the sales multiple for a laundromat? ›
An important component of valuing your laundry business is using that number to help you sell it, if needed. So what are the common selling multiples for laundromats? Ordinarily, the industry standard is to use 3-5 times the annual profits as a selling price.
Do laundromats provide detergent? ›
Most laundromats provide vending-machine detergent. Some even supply you with detergent for free. Nevertheless, you may wish to bring your own because of preferences or allergies. Jugs of detergent and softener can be cumbersome, so invest in travel-sized containers.
Is laundry a lucrative business? ›
Laundry business is a very lucrative business that you can make money from. You need a good location and a good marketing approach, you can make a lot of money from it. Decide the scale you want to start. Do your feasibility studies and know the cost of things in the environment you want to set up.
A good starting point is to let you know that laundrettes are businesses with some of the highest success rates, and they can be very profitable and sustainable if you run them efficiently. If you're thinking of buying a laundrette and want to know what it takes to run it, let's get straight to the point.
What is the average markup on vending machines? ›
Most vending machine owners mark up the price of their products at least 100%... but oftentimes as much as 200% or 300% or more.
Does a vending machine make profit? ›
Yes vending machines can be a very profitable business. You may earn $8,000 or more each year from having just 1 machine. You may get a 100% ROI within 18 months which is considered an excellent return on investment.
How much business capital do you need for a laundromat? ›
Costs will vary depending on size, rent, equipment capacity, number of machines, services offered and fit-out. All things considered, setting up a laundromat from scratch generally requires an investment of between $100,000 and $400,000.
Why do people sell their laundromats? ›
After years of ownership, many sellers find themselves ready to retire from the semi-retired life of laundromat ownership. They may want to travel more, spend time with family, care for health concerns, or a combination of reasons. Owners who are ready to retire from the business are some of the more common sellers.
Why is a laundry business good? ›
Easy To Operate And Low Labor Costs
Of course, your store must be cleaned, and you may choose to offer extra services, but compared to other retail-type businesses, laundromats incur very low labor costs are relatively easy to maintain.
How do I get clients for my laundry business? ›
8 Easy Ways to Attract More Customers and Grow Your Laundry Business
- Host a special event. ...
- Join a community business group. ...
- Sponsor a team or organization. ...
- Partner with other local businesses. ...
- Increase your social presence and following. ...
- Improve your exterior look. ...
- Freebies, rewards, and giveaways.
Who uses laundromats the most? ›
Customers Demographics
Low income renters are the primary users of coin laundries. More than 60% of laundromat patrons are women. 87% of customers live within a mile of the facility. Laundromat customers' median household income is $28,000.
Do laundromats use a lot of water? ›
Laundromat machines are highly efficient and use much less water than washing machines at home. At a laundromat, the washing machines typically use only 15 gallons of water, while an average washing machine at home generally used double that amount. That will save you money on your utilities.
What is the largest chain of laundromats? ›
Founded in 1968, PWS is the largest distributor of commercial laundry equipment and commercial laundry replacement parts in the United States.