When you’re creating a budget for your laundromat, you need the financial facts that will help it work for your business. If you’ve never done it before, you might be wondering how to find those facts. For example, how much does a laundromat make, and how can you use that information in your business planning?
How Much Does a Laundromat Make?
Owning a small business is the American dream. After all, what better way to serve your community and establish your career than running a successful business? However, being your own boss is often trickier than it sounds.
For one thing, it requires the ability to manage your finances well enough to keep the doors open. Let’s say you’ve always wanted to open a laundromat. The perfect spot becomes available in your neighborhood, and you’re ready to make it happen. In order to secure the space, you need a bank loan. You know that it costs between $200,000 and $500,000 to open an average laundromat. How quickly will you be able to pay off that initial investment? How can you make sure you’re bringing in the profits you need while you do so? How much does a laundromat make?
A Laundromat’s Profits Can Vary More Than You Think
With some businesses, budgets are easy. A set number of products are made and sold by a set number of staff, and it’s a simple thing to plan around. You may think of a laundromat the same way. After all, it’s a room full of washers and dryers, how complicated could it be?
However, if you own a laundromat, you know exactly how complicated it can be. Laundromats have a lot of sources of revenue, and the money they generate can vary dramatically:
- Equipment and Capacity: One number that probably won’t change much is the number of washers and dryers you have at your laundromat. This can give you a good place to start estimating your income. Laundry experts recommend estimating this by multiplying the number of types of machines you have times the vending price, and then multiplying that number by their projected typical daily use. So for example, if you have 25 washing machines that cost $2.00 per load, and you think each machine will be used 3 times per day, you can estimate that they will generate $150 per day.
- Laundry Services: Do you just offer coin-operated machines, or are you a full-service laundromat? Do you just work with walk-in customers, or do you do commercial accounts? The more types of laundry you do, the more revenue you can generate.
- Other Services: Do you have a vending machine for snacks? Paid Wi-Fi? Do you sell laundry supplies, like detergent? How about some old arcade machines to keep your customers entertained? Those add-ons can add up.
Considering all of these different factors, it’s not surprising that you find a range of numbers when trying to determine how much a laundromat makes. Most reliable estimates say that a laundromat makes between $450 and $500 a day. However, a laundromat that offers additional services can make up to $1,500 a day!
What’s the bottom line? Your coin-operated machines should be a reliable source of income to plan around, but don’t neglect the quality service and premium extras that will keep your customers coming back. Make sure your customers have a good experience every time they come to your laundromat, and your profits will continue to grow.
Learning how to run a laundromat can be tricky. Estimating how much money a laundromat makes is just one of the tips you can pick up from experienced laundry professionals. Check out our blog for more!
If you own a laundromat or are planning to purchase one soon, check out Laundry Solutions Company‘s products and services. We’re a full-service provider of premium vended, on-premises, and multi-housing commercial laundry equipment. Our leasing program provides no mileage fees, no service fees, and no parts fees. You will be able to use high-quality Speed Queen equipment while enjoying a flexible lease and predictable payments. To learn more, please give us a call at 800-383-9274 or contact us online. We look forward to hearing from you!