Laundromats 101 - Owning a Laundromat Business. Although one of the standard benefits of being a business owner is that you can come and go as you please, that is not the case with a laundromat. If you like working with your hands, and don’t mind the occasional customer contact, then you can have a successful experience with a laundromat. Even households who are extremely thrifty will do their laundry on a regular basis That means you have access to a reliable revenue stream when you own a business in this industry. You must have the foresight to understand what your community requires in a laundromat, then provide those services with your business. Every business opportunity involves some level of risk. With a laundromat, it is your customers who are doing most of the work. Once you understand the quirks of this opportunity, you’ll have more freedom to take care of pressing needs. You must make your business available to your community all day, every day throughout the year. You’re not required to have a specific certification to get into the business with most communities. If you don’t have a change machine in your laundromat, then you’re going to lose customers. We've heard or experienced many ups and downs along the way, and we want to pass the lessons we've learned on to new entrepreneurs. Without full availability, customers have less loyalty. Combined with the fact that you’re not dealing with payments sent through the mail or AR/AP issues, it is a business which lets you feel good about serving the basic needs of your community while you earn a fair return from the initial investment. Unlike other businesses which must adapt to varying neighborhood conditions, a laundromat is a straight-forward opportunity. It's a really great industry; one that all of us here at Martin-Ray Laundry Systems, and our customers, are passionate about. Most laundromat businesses offer customers access to coin-based equipment which allows them to run a single load of laundry. You will find unreasonable customers in any line of work, and the laundromat industry is no exception. It’s a lot cheaper for the owner to fix equipment when it breaks down instead of hiring a contractor to do so. However, any business investment should be weighed carefully. That means you’re not spending a lot of time ordering, rotating, or discarding items to keep your shelves fresh. Home » Pros and Cons » 21 Pros and Cons of Owning a Laundromat. These facilities employ one to three staff to help with basic services, such as providing change, selling detergent, or responding to equipment failures. For a standard laundromat, you will need a business license or permit and nothing more. Contact HK with any questions or equipment needs you have, we have what it takes to help you open and run a successful laundry business in Connecticut or New York. People must pay in advance to use your services. Because there are extensive equipment purchases involved with a laundromat, you can take advantage of depreciation right away to support your growing business. Staffed laundromats are another option available in some communities. ", How Does WhatsApp Make Money: Business Model & Revenue Explained, How Does Discord Make Money: Explanation of Business Model, Is Mercari Legit and Safe: 15 Tips for Buyers and Sellers, NEO PI-R Explained: Neuroticism vs Extraversion vs Openness vs Agreeableness vs Conscientiousness, 100 Powerful Gratitude Affirmations to Fill You with Joy, Keirsey Temperaments Explained: Artisan vs Guardian vs Idealist vs Rational, 101 Positive Affirmations for Work and Career Success, DiSC Personality Types Explained: D-Style vs I-Style vs S-Style vs C-Style, 100 Confidence Affirmations to Boost Self-esteem, Japanese Blood Type Personality Guide: A vs B vs AB vs O. The typical laundromat offers access to washers and dryers without much personalized professional help. The pros and cons of owning a laundromat offer a schedule that is reasonably flexible as you become an established business owner in your community. Customers manage themselves, which allows you extra time to focus on specialty needs or provide service in specific situations. You can open a laundromat in the perfect part of town, have access to plenty of customers, and never earn a profit. Most people encourage would-be owners to purchase an existing laundromat if they want to get involved with this industry. You get cash, which then goes straight into your company accounts. Some cities require you to have a laundry license for your facility. The primary capital investment comes from the equipment required and your property ownership or lease. If your equipment breaks down or people damage their clothes while using your facilities, it could be a short ownership experience. A lot of people get into the laundromat business because they think it will be easy, only to discover that the competition is high, and so are the costs. Although most homeowners own laundry equipment, renters do not always have that luxury. You might find trash lying around because people didn’t bother to clean up after themselves. It's not something you jump into unprepared. You must hang signs inside the laundromat which instruct customers not to leave their items unattended and that you are not responsible for loss if that happens. Martin-Ray has been a leading laundry equipment distributor in the Rocky Mountain region since the 1980's, so we've helped our fair share of laundromat investors get started. The only time there are customer service issues is if the equipment breaks down or damages the clothing of the customer in some way. The laundromat business offers very few variables that you must worry about. Although there are some capital expenses that may put this opportunity out of reach for some, the comeback at the end of the tax year makes it a bearable expense as you work toward profitability. If even one of those categories is viewed as being subpar by your community, profits for your business could slide by one-third. When equipment breaks down, it must be fixed as quickly as possible. If you’re wanting a business opportunity that is glamorous, breaking into the laundromat world is not it. How Technology Keeps Laundromat Customers Loyal, Designing a Functional Laundry Equipment Layout, Maintenance Tips for Commercial Laundry Equipment, Key Statistics Laundromat Investors Should Know, Why Investing in Laundromats Is Your Best Option, partnering with a trusted distributor (like Martin-Ray Laundry Systems), 10 Ideas for Your Laundromat Grand Opening. Entrepreneur estimates the cost of beginning a new laundromat between $150,000 to $300,000. COVID-19 — Where Do Laundromats Go From Here? That means you’re not stuck waiting for batch payments to clear or a third-party to ensure the validity of a check or charge. Some even complain about the heat or water levels as a way to get a refund from you, essentially getting to do their laundry for free. Beyond your utility and detergent costs, your budget is fixed. The laundromat industry in the United States is vast, reaching five billion per year in 2018; and it is stable, remaining at approximately the same level for the past five years. Also check out these related articles for more information: Copyright © 2020 Martin Ray Laundry Systems. So, you're considering opening a coin laundry business? You’re not forced into a position where returns must be processed because people changed their minds or discovered the item they bought was defective. You can stay in business without the upgrade, but a lack of investment will eventually cause fewer people to use your facilities. People who live in apartments or rental homes without laundry access will use this type of business to take care of their personal items. Even the repair work is usually not that technical. So, you're considering opening a coin laundry business? The Coin Laundry Association reports that the laundromat owners who see the highest profits in the industry are those who run their facility well. If you’re thinking about this business option as a future opportunity, then here are the pros and cons of owning a laundromat that you’ll want to think about. However, when considering opening a laundromat, there are some pros and some cons to consider: Pros of Owning a Laundromat: 1. The skills required to do laundry are basic, especially if you’re not including dry-cleaning services with your organization. Some self-serve laundromats can even operate with zero staffing. The pros and cons of owning a laundromat offer a schedule that is reasonably flexible as you become an established business owner in your community. Once you get your business up and running, you’ll find people complaining about things like not being able to see enough soap in the washing machine – even though they’re the ones who loaded the machine in the first place. In this video, he talks through the pros and cons of owning a laundromat business. A growing trend in the industry is to provide food and beverage services for customers as they work on washing, drying, and folding their clothing. Communities might want to inspect your coin operations to ensure you’re not ripping off the customers.