Machines and Equipment: A typical laundromat might have anywhere from 20 to 100 washers and dryers, depending on the size of the facility and customer demand.
How many washer and dryer units does a laundromat need? According to Martin Ray, most laundromats have between 40 and 100 units. So if we assume that you purchase new machines, your equipment cost alone could be 40 small units x 1,000 = $40,000 or up to 100 large units at $5,000 = $500,000.
How much do laundromats make a year? According to Dave Menz, the average laundromat makes around $300K in revenue per year. Depending on the location, competition, number of machines, and additional services, a laundromat business may make more or less than this estimate.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins. But whether or not your laundromat can meet (or exceed) these industry standards depends on some important factors.
Washing Costs: The cost of using washing machines in laundromats typically ranges from $1.50 to $5.00 per load. This price variation is often due to the size of the machine (standard, large, or extra-large capacities) and the type of wash cycle selected (e.g., regular, delicate, or heavy-duty).
On average, smaller laundromats might earn between $1,500 to $5,000 in profit per month, while larger, well-established ones in prime locations might see profits of $10,000 to $30,000 or more per month.
Is it cheaper to do laundry at home or at a laundromat? In general, doing laundry at home can be more cost-effective over time compared to using a laundromat, especially when factoring in the initial investment in a washer and dryer.
Neglecting or mismanaging your business
Bad management is the top reason why many laundromats eventually fail. All too often, a person will purchase a laundromat with the idea that as long as they collect their earnings every week or two, the business will continue running.
We talked to the Laundromat Millionaire, Dave Menz, who owns four laundromats and makes nearly $2 million annually. He even helps other business owners navigate the industry to get more customers, become a full-service laundromat, and outshine absentee owners.
Running a Laundromat is simple, but creating or maintaining a successful laundromat takes hard work. An owner does not need to be in the laundromat every day, but they must understand their customers, equipment and competition. For coin stores, this will generally take place twice weekly.
It's easy to understand why: Laundromats are a stable, recession-resistant business that can generate passive income with a strong return on investment. But how much does it cost to open a laundromat? Opening a laundromat typically requires an initial investment of $200,000 to $500,000, plus ongoing expenses.
Speed Queen is the global leader in commercial laundry, proven by 100+ years of manufacturing durable equipment that lasts through continuous loads.
Facility Size: The average size of a laundromat facility varies depending on the market and location, but generally, businesses range from 1,000 to 5,000 square feet. Operating Hours: Laundromats are typically open between 6 a.m. and 11 p.m., while some offer a 24-hour model.
How Often Should Laundromat Machines be Cleaned? At Laundry Place, we pride ourselves on maintaining the highest standard of hygiene by ensuring our laundromat machines are thoroughly cleaned at least once a day.
1. High Success Rates. A recent Gallup poll found that 66% of potential entrepreneurs are held back by the fear of business failure. However, one study found that laundromats have an extremely high rate of success – approximately 95% of laundromats succeed over a five-year period.
A great laundromat location is on a main roadway, highly visible, and has plenty of parking with easy access. Also take note of the surrounding businesses and what type of clientele they draw in. Grocery, convenience, auto parts, and check cashing stores make excellent neighbors for laundromats.
Profitable businesses include consulting, legal services, food trucks, and real estate. Fast-growing sectors for investment are online retail, healthcare, and social media marketing. Best passive income options: digital products, affiliate marketing, online education, and dropshipping.
Irregular hours: As much as your schedule can be flexible to suit your needs, you also have to be flexible for your business. When emergencies and issues come up, your business and customers won't care if you're on vacation, sick, etc. You'll likely be tackling problems at all hours.
The average lifespan of commercial laundry machines is 8-15 years.
Location – Many laundromats suffer from “inferior location complex”. Laundromats located in a defunct plaza can suffer when the plaza has gone south, lack of upkeep to the plaza, poor parking, limited visibility, bad neighbors (neighboring businesses that attract the wrong crowd, fail to attract business, etc.)
Washing clothes at a laundromat can offer more flexibility than laundry service or in-home laundry. You can wash and dry multiple loads at the same time. At an average cost of $3 to $5 per load, you will spend $24 to $40 per month if you do two loads of laundry a week.
Washing machines typically range from $700 to $1,300, with an average washing machine price around $1,000. Dryers generally cost between $800 and $1,200, with factors like dryer size, dryer depth, and dryer capacity influencing the price.
Another factor to consider when choosing the best time to visit a laundromat is the day of the week. Weekends tend to be busier than weekdays, so if possible, try to schedule your visit for a weekday. Additionally, avoid visiting the laundromat on holidays or the day before a holiday, as these are typically busy times.