Two dozen washing machines. Illuminating signage. An accountant to get your affairs in order. A repairman when a dryer breaks down . . . Running a laundry business can be expensive. So before starting your own laundromat, consider the various costs involved and how they will influence your revenue. Once you know what to expect, you can make a solid and informed plan for the future. For help, scroll down to learn about the many expenses in the laundry business.
Expenses in the Laundry Business
First, of course, you will need a physical location for your business. This initial cost will be substantial and will include many factors, including the rent/mortgage, insurance, and renovations (if necessary). Of course, you could also choose to build your own facility. Either way, you will need a business license, and some laundromats also need a water pollution control permit, a sign permit, and/or a permit from the health department (if food will be served). Finally, municipal fees like those required to hook up water and sewage lines are crucial.
Once you have a building, you must fill it with laundry equipment to transform it into a laundromat. Commercial washers and dryers come in many forms, but consider investing in high-quality and highly efficient equipment to lower your utility bills and reduce your impact on the environment. Factor in the expected longevity of your chosen washers and dryers as well.
Supplies & Accessories
If your machines are not coin operated, you may wish to add a card reader system. If your machines will rely on coins, consider adding a change machine. Other possible supplies and accessories include laundry carts, cleaning equipment, soap, signs, trash cans, clocks, and security cameras.
Water & Electricity Bills
To power your laundry equipment, you will need to pay utility bills covering your facility’s gas, water, electricity, and sewage. Water and electricity are essential to the health of your laundromat. To lower these costs, as we mentioned above, invest in energy-efficient washers and dryers. Depending on the needs of your market, you might also consider limiting your hours.
Some laundromats are largely self-sufficient and don’t require constant supervision; others always have a staff member on-site during open hours. Will you need to hire general staff members to man the facility? In addition, if you don’t wish to act as manager yourself, you will need to hire someone to oversee the day-to-day operations of the laundromat (maintenance, repairs, cleaning duties, revenue collection, etc).
Maintenance & Repairs
Your washers and dryers will need routine maintenance to stay in good working condition. In addition, even with proper maintenance, breakdowns will happen occasionally. Consider the cost of both parts and labor when you factor in the price of maintenance and repairs.
You may need professional assistance to support your business. At the very least, hire an accountant to ensure that your finances and taxes are in order, but you may also need a janitor, a bookkeeper, and/or a marketing professional.
Now that you understand expenses in the laundry business, are you ready to get started? If you’re interested in opening a laundromat, be sure to check out Laundry Solutions Company, a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Since 1976, we have been providing exceptional sales support, laundry design services, commercial laundry equipment (and leasing options), and laundry equipment service and parts. To learn more about our products and services, please give us a call at 800-383-9274 or contact us online. We look forward to hearing from you!