Cost To Buy A Laundromat [HOT]
Are you curious about investing in a laundromat but looking for expert advice on the costs associated with this business venture? You've come to the right place! Coin-O-Matic has been in business for over 100 years, and we have the industry expertise and experience to guide your business venture!
cost to buy a laundromat
The start-up costs for opening a brand-new laundromat are substantial. Generally, we advise business owners to budget for at least $200-$300+ per square foot for laundry equipment, amenities, and the buildout of an existing vanilla box. Typical laundromats range from 2,000 to over 5,000 square feet, costing $400,000 to over $1,000,000 all in. There are variables that go into these equations, including construction abnormalities, finishings, amenities, and municipal-related expenses such as water, sewer tap fees, etc.
PRO TIP: The big money made from a laundromat is on its sales and operational efficiency rather than its investment cost. Remember, your money will be made on sales over time, not the initial investment in the business. Invest smart initially to make money over the entire lifespan of your equipment! Focus on the future return on investment, not your upfront costs.
Investing in an existing laundromat? Our general rule of thumb when it comes to investing in an existing laundromat is that it is worth four to six times the annual net revenue. Of course, the age and condition of the laundry equipment, the location, and any associated real estate leases all come into play here, as does the accuracy of the current businesses' financial record keeping.
PRO TIP: DO NOT purchase an existing laundromat without the help of professionals like the staff from Coin-O-Matic. We will help you sort through fact and fiction. No need to risk the chance of paying too much for a laundromat and then have invested more money to replace outdated laundry equipment and related ancillary items. You also need to pay a whole lot of attention to the real estate lease agreement. Details like this can make or break your success, and a qualified consultant can help.
If you are interested in opening your own coin-operated laundromat, contact Coin-O-Matic's Laundromat Investment Specialists today! If you have more questions about the costs of opening a laundromat, you can also reach us at 1-708-377-3408.
The laundromat business model is straightforward: this is a place where people go to wash their clothes. Typically serving lower-income renters who may not have washer-dryers at home, laundromats are a fixture in the neighbourhood, with 87% of customers living less than a mile away.
First things first, you need a location! An average laundromat is 2,170 square feet. Depending on where you are, this will cost between $200,000-$500,000, and could be as much as $1 million or more.
Keep in mind that with sole proprietorship, there is no legal distinction between you and your business. For most small businesses, an LLC can provide the most protection, making sure you are not personally held liable if your laundromat is sued.
Consider the concept and brand of your establishment. Will it be a 24-hour laundromat or run only during daytime hours? Will it offer full service (you do the washing/drying/folding), or be fully self-service, with no attendants at all? Will it be a hybrid model, such as a laundromat-cafe? This will determine how you advertise your new business and who your key demographic is.
An average gross income of a laundromat in the USA varies greatly, from $30,000 to over $1 million a year, according to the Coin Laundry Association. Once expenses are factored in, at the higher end the net profits could be as high as $350,000 a year.
The laundromat industry in the US is worth $5bn, with over 21,000 businesses in operation that employ over 50,000 people. Do I have your attention? If I do, then here are 20 steps to follow to start your laundromat!
Have you ever found yourself wondering how much money a laundromat makes? Or, is the average laundromat cost something I can afford? Established organizations provide the information you need. Keep reading.
Starting a laundromat business does not require any super-special skills, training, or education. Just shake the wrinkles out of a few of the skills you already have and stain your brain with a little knowledge.
He searched for a laundromat for sale near his home, a great way to spend more time with his family in traffic-choked LA. Consider what this could mean for you and your family. He found an existing laundromat ten minutes away.
Justin runs advertisements in local newspapers, costing $75 to $150 per month. He also advertises through ValPack mailers, for which a five-month subscription costs about $300, reaching 10,000 residents.
The cost to open a laundromat must factor in creating and maintaining a safe environment for you, your staff, and your customers. Most importantly, do not be negligent of safety because it can result in lawsuits!
Start-up costs for a laundromat can be high. In addition to commercial space at a suitable location, the business requires commercial-strength washers and dryers. Other start-up costs include professional installation, furniture, business incorporation or formation costs, utilities installation and customer supplies, such as a detergent vending machine.
Typically, start-up costs for a laundromat can run from about $200,000 to over $1,000,000. After assessing your start-up costs, your budget should include allowances for regular future expenses, such as loan financing payments, rent and maintenance.
Decide whether to buy or to build. If you buy an existing laundromat, your start-up cost is primarily the amount you pay for the business, as it will already be stocked with the necessary equipment and hook-ups. If the sale doesn't include the land, you'll need to factor that cost in as well, which is dependent upon your specific location. If you choose to build your own laundromat, a 2,000 square-foot space will typically cost between $200,000 and $500,000.
Cities charge laundromats fees to hook up water and sewage lines under a variety of names, including impact fees, tap-on fees and wastewater fees. These fees can range from $200 to $8,000 per washer. Contact your local water authority to determine which fees would apply to your start-up laundromat.
Multiply the number of laundry machines you need by the unit cost. Estimate that top-load washing machines cost about $500 to $700 each, while front-loaders run between $3,500 and $20,000 each, depending on size. Stacked dryers generally cost between $5,000 and $6,000. For an average laundry, it may cost you between $150,000 and $400,000 to fully stock it with machines.
If you choose to add a card reader system to your laundry machines, those typically price out at between $40,000 and $80,000. With a card reader system, you issue prepaid laundry cards to your customers that are something akin to credit cards. Rather than having to carry bags of change to use your laundromat, a customer can simply swipe the card. This can be a huge convenience and may help retain customers. A card reader system also tracks usage, which can help you focus your budget, and allows you to get paid in advance.
Optional items you might want to include in your start-up laundromat include a soda vending machine for between $3,000 and $4,000, a security system typically running between $6,000 and $10,000, a television set for between $200 and $500, or a wi-fi connection for about $40 to start.
Although you may be in the position to pay your start-up costs in cash, most likely you will have to finance your new venture. As a start-up business, a bank or other finance company will probably ask for a sizeable down payment before extending you a loan. Once you have calculated your start-up costs and determined the size of the loan you will need, estimate your down payment at 20 to 30 percent of the loan amount.
So, expenses are a big deal. To start, you can estimate that your average ongoing cost will be somewhere between $4,000 and $8,500 per month. But as a savvy business owner, you should do a little more digging to find a number that will better match your business.
LocationWhere you choose to open your business will greatly affect the average cost per month of your laundromat. Rent and utilities are the biggest contributors here. For example, what you spend in rent will be higher in Portland, Oregon, than it will be in Wichita, Kansas. The same goes for your gas, sewer, water, and electric bills. Additionally, fire, theft, and liability insurance will vary from state to state. So when calculating the average cost of a laundromat per month, consider these specifics.
Store Size and Operating HoursThe average-sized laundromat is 2,000 square feet. Obviously, the size of your laundromat and your operating hours will affect your utilities. Longer hours, more machines, and bigger stores mean more lighting, heating, cooling, and water usage and a bigger bill. However, the convenience of round-the-clock service and zero wait time for your customers might be the edge your business needs.
Number of EmployeesMany customers prefer (and feel more comfortable in) laundromats with customer service staff. However, hiring full- or part-time employees will add to your monthly expenses. Employees and their benefits should be factors you consider when calculating the monthly costs for your business.
Add-OnsAny time you decide to add vending machines, free coffee, or other customer perks to differentiate your laundromat, it adds ongoing monthly expenses. However, you have to spend money to make it. These types of business add-ons may very well help your business. Treat add-on expenses like investments, just like purchasing energy-efficient washing machines or hiring a new employee could increase your revenue in time.
Owning a laundromat is an appealing choice for a potential new business owner. Laundromats are generally considered to be recession-proof, and the business has few barriers to entry. On the other hand, it is critical to understand startup and operational costs, and the demands on owners to provide customer service, maintenance, and more. 041b061a72