BUILDING A NEW LAUNDROMAT

How much does it cost to build a new laundromat?

There are several factors that can impact your potential cost.  Location, demographics of the area, layout of the site, size of the laundry, sizes of the equipment, water heaters, water storage tanks, plumbing, exhaust venting, etc., will all contribute to the total cost of the store. A properly designed and equipped coin laundry can cost between $250,000 to $600,000 or more. More important than the actual cost of a store is what a store will generate in revenues and profits for the owner relative to the cost – that is what determines the owner’s return on investment. 

A coin-operated laundry is a smart investment, particularly in today’s economy.  It’s an all-cash, low labor, and recession-resistant business. Many owners see their initial investment paid back in a short period of time, and this is a business with little inventory, or accounts receivable problems to worry about.

Compared to many businesses, a laundromat is actually a very easy business to start.  The requirements for start-up capital are very reasonable, there are no franchise fees, smaller stores have only minimal labor requirements (since customers do most of the work), and there are no spoilage factors.  With manufacturer sponsored financing programs once you have your start-up capital, it is very easy to finance the equipment you need.  Beyond the obvious revenue from your coin-op washers and dryers, additional services such as wash & fold, dry cleaning, alterations, and on-site vending can also generate additional revenue.

People from all walks of life are investing in the commercial laundry industry.  It is a common sense business, requiring minimal supervision. It can be run on an absentee basis, which helps you avoid giving up your current profession or other source of income.

The Opportunity

So, how do you maximize on an investment in a self-service laundry?

1) Pick a good location.
• Close proximity to dense population
• Safe, ample parking (if applicable)
• Affordable rent or acquisition cost
• Adequate size, 800 square feet minimum

2) Negotiate a good lease.
• Long term, at least 10 years
• Small increases
• Construction time, 3 to 6 months (if needed)

3) Consult with a qualified equipment distributor.
• Use only reputable companies who are willing to share existing customer testimonials
• Look for longevity in business and get to know your distributor
• Listen to your distributor’s advice without taking installation shortcuts
• Learn from your distributor’s mistakes to avoid your own

4) Use modern equipment
• Save water
• Save electricity
• Save gas
• Reduce cycle times to maximize customer turnover
• Reduce downtime to increase customer satisfaction
• Increase capacity to win new customers

We believe to compete and excel in the self-service laundry business you need to make doing laundry as easy and as fast as possible.  Make it easy to find your store, park, and gain access to the machines. Have your machines in working order, and simplify change making or use a card system.  Always provide laundry carts and spacious folding areas.  The key to success is efficiently processing happy customers.

Location

Things to consider:

• Where is the store located?  Is it a busy street?  What are the demographics of the neighborhood?  What type of customers is this store going to attract?
• 80% of a coin laundry’s customers come because the coin laundry is closest to their home.   How close is this store to its ideal customers?
• Is the store well-lit?  Is it visible from the street?
• Is adequate signage available, or is it possible to install it?
• Does it have easy access in and out?  Is it handicapped accessible?
• Is ample off-street parking available?  Is it easy to get into and out of the parking lot?
• What other types of business are located in the same area?  Are these businesses that could increase or decrease business?
• Where is the competition located?  What services do they offer and how do they impact business of this store?
• Is the store clean and safe for customers?
• Some areas may require additional services such as drop-off laundry or dry-cleaning.
• If the store is existing, does it have the technical capabilities the owner will need for utilities, plumbing, etc?
• If the owners want to lease, can they get a long-term lease with reasonable rent?  Do they have availability of options to renew, and low rent increases?

Design & Layout Considerations

1) Additional services offered.
• Do you, or are you going to offer dry cleaning, wash/dry/fold service, or alterations?
• Make sure you allow plenty of space to accommodate any additional services you might be providing, including ATMs, video games, etc.

2) Number of machines & load capacity.
• Make sure you have enough machines for weekends, a laundry’s busiest time
• Include small, medium, and large washer capacities to accommodate many different individual needs
• Have plenty of drying capacity for customers to finish their loads

3) Efficiency of customer flow and facilitate processing speed.
• Help your customers move around quickly and efficiently with smart planning that includes: high extract washers, laundry carts, wide aisles, and folding space.

4) Plan safety in your design.
• A laundry’s design should help customers both keep safe and feel safe by complying with all codes, having ample interior lighting, plenty of open spaces, and non-slip flooring.
• Be sure to have emergency shut-offs and a recordable camera security system.

5) Other elements to consider.
• Add personality with decorations
• Easy access
• Elbow room to work
• Lighting
• Future expansion
• Secured office space
• Cleaning supply storage

6) General planning.
• Dryer venting and intake air, 12″x12″ after screens, louvers, and opening covers
• Each washer & dryer should have its own disconnect
• Leave at least 2 feet behind the washers & dryers
• Leave 6 feet between washer rows for laundry carts and customers
• Make sure there are enough folding tables
• Wash dry and fold will need some storage area
• Vending can bring in additional dollars-remember to plan for electrical outlets
• Match washer pounds with dryer pounds, ratio of 1:1
• Install a dedicated power outlet for the computer network and phone line nearby

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