The Surprising Costs of Operating a Laundromat

Before you start delving into the nitty-gritty details of running a laundry business, you should probably know what it takes to operate a laundromat. There is a lot to consider, from the equipment and rent down to the staff and laundry parts from stores like Laundry Replacement Parts; there is lot to consider.

Read on to learn how much it costs to open and operate a laundromat.

How Much Does it Cost to Operate Laundromats?

Whether you’re creating a whole new business or investing in a franchise, entrepreneurs would spend between $200,000 to $500,000 for an average-sized laundromat.

The amount depends on the kind of laundry business you want to start. Are you beginning from scratch or getting an existing business? Or are you considering a laundromat franchise?

Investing in an existing business has benefits, as it prevents the issue of having to start a whole new industry. You have built-in customer loyalty already. The same goes for franchises, which can cost between $75,000 to $300,000, but with franchises, you already have business guidance, support, and a reputable company name that people trust.

But there’s more to operating a laundromat other than the type of business. Here are the things you should take into account for:

Property

You need a physical space for operations, and leasing property may cost a lot, especially in high-traffic areas around universities or apartment complexes. It’s essential to research the competition in your chosen location and your target market.

When you narrow down your options and find a few promising operating spaces, the cost will widely vary in price, depending on the market. For instance, operating a laundromat in expensive cities like San Francisco will mean higher rent than other cities or states with lower living costs.

Utilities

You’ll need water and electricity to run your laundromat, of course! The place you choose should have proper plumbing infrastructure and water like hookups so your equipment will work anytime.

You have to consider initial connection fees, then the utility bills in the long run. Note that your city may charge sewer connection fees, which might cost hundreds to thousands of dollars per washer!

Equipment

This is an obvious expense because how can you operate a laundromat without the laundry machines? Top-loading washing machines are about $1,000 each, while front-loading machines can cost anywhere between $700 to $2,000, while dryers go for a couple of thousand dollars.

This doesn’t include the costs of enabling card systems, which can cost at least $40,000!

Here are other costs to look into your business planning:

• Detergent and fabric softener
• Laundry parts from stores like alliance laundry parts
• Furniture
• Office supplies
• Laundry carts

All that said, there are more things you must consider, such as:

• Staffing and employee salaries
• Business insurance, which can range from $1,000 to $2,000 a year
• Marketing and advertising costs should cost 7-8% of your gross revenue.

Wrapping It Up

If you’re planning to operate a laundromat, take note of these costs and factor into it your business plan. Good luck!