Opening a laundromat might just be the best decision you ever make. Laundromats are recession resistant, provide passive income, and are usually associated with low operating costs, which can make them highly profitable.
All the same, you’ll still want to know about costs. So, how much does it cost to start a laundromat? This short post will break down some of the expenses so you can come up with a business plan.
Purchasing, Building, or Converting a Facility
Whether or not you decide to purchase, build new, convert, or lease will have a big impact on your overall startup costs.
If you build on real estate or buy an existing laundromat, you’ll be paying more upfront, probably starting somewhere around $100,000, although the figure for that initial investment could be much higher, depending on the size of the facility.
Leasing is less capital intensive out of the gate, although the costs can be higher in the long-term. Expect to lease at costs between $2,000 and $5,000 per month, although they could be higher.
Purchasing Commercial Laundry Equipment
If you’re converting a facility and need to purchase a fleet of commercial washers and dryers, expect that to cost anywhere between $100,000 and $300,000, although that figure could be far higher, impacting your overall costs to open.
Purchasing Commercial Laundry Supplies
You’ll also need commercial laundry supplies to start a laundromat, but remember this is a variable expense. Set aside several thousand for cleaning supplies, parts, and other commercial supplies like detergent and bleach.
Utilities Costs
When you open a laundromat you will want to be prepared with liquid to pay for utilities such as water and electricity. You will also want to consider other variable costs like business insurance with this.
Costs Associated with Monitoring
You may not need to, but some laundromats might want to invest in software and technology that helps monitor machines for performance and issues, as well as for security. You have to add these to their bottom line if you intend to utilize them.
Personnel Costs
If your laundromat will be staffed, you will need to account for the costs associated with employee wages. After startup, these can be among the highest costs.
Marketing and Advertising Costs
Startup laundromats will need to get the word out about the new operation, and you have to spend money to make money. Of course this is a flexible cost but it is still something for which you will need to account, so you can reach your target customer base and attract customers.
A Word on Maintenance and Repair Costs
Maintenance costs are not necessarily directly associated with the startup itself, but you should still budget several thousand in reserve to account for those unexpected circumstances in which you need to make repairs or replacements to keep everything running. Operating a laundromat will require you to make repairs to your washing machines and dryers from time to time.
So, How Much Does It Cost to Start a Laundromat?
All told, it really depends on all of the factors considered here, but at the end of the day you’re going to be looking at somewhere between $150,000 (on the extremely low end) and $1,000,000 to start a laundromat, of course those costs can be engineered down (or up, realistically). If you can settle with figures like those, you just might be in the clear.
