For example, if you have 20 machines, used 50% of the time (18 hours a day) and at an average rate of $5.00 per wash (30min per wash), daily revenue is ~$1,080. Now, assuming your laundromat is open 7 days a week, monthly revenue is $32,400.
Answer: Monthly profits can vary widely based on the location, size, and operational efficiency of the laundromat. 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.
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.
A single laundromat washer and dryer unit can generate up to $190 per day. If we assume that the average wash is $2 and takes 30 minutes and that the laundromat is open 24 hours per day, you could do 48 wash cycles per day at full capacity. $2 x 48 = $96 for wash revenue and then another $96 for dry revenue.
The industry terminology for individual equipment usage is "cycles per day," or "turns per day (TPD)." These designations refer to the average number of times each machine is used per day. While this statistic varies widely, the average for washing machines is generally from 3 TPD to as high as 8 TPD.
Understanding laundromat value
U.S. Laundromats post impressive numbers with a 95% average success rate and 20 - 35% profit margins.
Entrepreneurs normally spend between $100K and $1 million to start a new laundromat or buy a laundry business for sale. Dave suggests that you should normally spend between two and five times revenue, but that you should base your business valuation on what it's worth to you.
Utilities are a significant ongoing expense for laundromats. Since the business relies heavily on water, gas, and electricity, you can expect to pay between $4,000 and $8,500 monthly, depending on the size of your operation and local utility rates.
On a typical scale, launching a laundromat will set you back anywhere from $200,000 to $500,000. Your financial footprint hinges on whether you're breathing new life into an existing establishment or embarking on a ground-up venture, coupled with the prevailing real estate climate in your locale.
In one blog post, the store owners took inventory of the hours spent managing their two laundromats. After one month, they found that they had spent an average of eight hours a week between the two stores.
The high rate of success, excellent ROI, flexibility, scalability, and easy-to-manage cash flow make laundromats a smart choice for new and experienced small business investors. To learn more, explore our blog post “Is the Coin Laundry Business Right For You?” or contact an expert at Laundrylux today.
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.
Setting up a new laundromat will initially take time as you get to know your customers and their needs, but there is generally very little maintenance once you get established. Depending on the type of store you want to open, you could manage your laundromat in just a few hours every week.
While not legally required, there's a compelling case for starting your laundromat as a limited liability company (LLC).
Laundromats have long been seen as steady and reliable businesses. But if you're considering entering the laundry industry, you're likely asking, “Are laundromats a smart investment?” The answer, for many, is a resounding yes. Typically, see an ROI return on investment) of between 25-30% a year.
Monthly General Liability insurance costs for laundromat
Exploregeneral liability insurance costs. Most of our customers can expect to pay: Between $54 and $257 per month.
There's no way around it: Buying and opening a laundromat requires a lot of money. The industrial equipment is expensive, and many newer laundromats have a large real estate footprint. The Entrepreneur article estimates that laundromats require between $200,000 and $500,000 in starting costs.
Survival Rate: Approximately 95% of laundromats succeed over the first five years of operation (higher than average for other small businesses).
Laundry pickup and delivery model has seen rapid growth, especially post-pandemic, and now represents about 40% of the organized laundry market. Initial investments range from ₹10-20 lakhs ($12,000-$24,000 USD), with potential monthly revenues of ₹1.5-3 lakhs ($1,800-$3,600 USD).
The number of washers and dryers you need can vary significantly based on your unique circumstances. For instance, in a small-town setting with limited square footage, you might only require a handful of machines, perhaps five or six washers and dryers, to generate income and serve the local community.
Even without a lot of capital, you can open a laundromat by renting equipment, providing services to local businesses, or using a crowdfunding platform like Kickstarter to raise funds. Coupled with a solid business plan, commitment, and smart management, a laundromat can be a worthwhile investment.
Starting a wash and fold laundry business from home can be a viable small business opportunity, especially in communities where there is a demand for such services. Here are some tips to consider when starting this type of business: Research and Planning: Conduct market research to understand the demand in your area.