Considering the potential profitability of a laundromat, you might be considering how much it costs to get one off the ground.
Admittedly, laundromats are generally associated with low costs, low liability, and are pretty recession resistant.
But, low cost does not equal no cost. So, if you’re wondering how much to start a laundromat, where can you start? Well, here are some of the factors that will influence the bottom line.
● Buy vs. build vs. lease
The first and biggest impact of expense is whether you will buy an existing laundromat, build a new one, or lease one that already exists.
If you buy or build, you’ll need the most funds. Depending on the cost of the real estate you should expect that to cost between 200,000 and 500,000, if not much more.
As for leasing, that will cost you less up front than if you build, buy, or buy and renovate, but you will have ongoing rent/leasing fees that will eat into your bottom line over time as well.
● Taxes
Taxes are a fact of life not only for individuals but for businesses as well and the laundromat industry is no exception.
● What commercial laundry equipment you buy
Commercial-grade washing machines and dryers are built to a much more rigorous standard of quality than residential systems. They are rated to handle heavier loads and more cycles than their domestic counterparts.
As a result, they are also considerably more expensive. Outfitting a laundromat with equipment will cost tens of thousands of dollars (if not more) but again, that also depends on the size and scope of the operation.
● Maintenance
Maintenance and repair costs are by and large unexpected, so it’s hard to account for them in your startup projects – still you must be prepared with contingency funds as downtime impacts profitability.
● Utilities
Washers and dryers use water and electricity, and these things cost money. All else being equal, buying the most efficient systems can help you save in the long run.
● Business insurance
Laundromats will have to maintain, at minimum, liability insurance, although other riders and provisions may be necessary to protect the business.
● Personnel costs
One of the great things about laundromats is that they are associated with minimal staffing. You may even be able to plan a model that does not require any real-time oversight
● Marketing costs
Unless you buy a laundromat with an established clientele, you will need to have a marketing plan so you can grow your customer base.
● The costs of other services
In the event you plan on offering pick up or delivery services, you will need to account for a wide range of other costs, including but not limited to employee wages, vehicle maintenance and insurance, and more.
How Much to Start a Laundromat: Where to Get Started
For anyone reading this in the New England area, it pays dividends to work with a local partner that has many years of experience serving this very industry.
That partner is Garment Machinery Company, who has served clients in New England for over 75 years, offers maintenance and repair services, marketing services, and much more to prospective laundromat operators.
They even offer services to help startups get off the ground. Visit their website for more information on the many ways they can help you get your business model in order.
