Opening a Laundromat: How Much Does a Laundromat Cost

3rd July 2024

Opening a laundromat can be a lucrative business venture, offering a steady income and a necessary laundry service to the community. However, this needs to be an investment that will pay off, so understanding the costs involved in opening and operating a laundromat is crucial. As a new laundromat owner looking to open a new business, having a clear picture of the expenses and average costs associated with a laundromat will help you plan more effectively and avoid any unexpected financial challenges. By the end of this blog, you'll be equipped with a better understanding of the different financial factors to consider when opening a new store in the laundromat industry.

First, let's begin with the initial costs including location and business setup.

Initial Costs

Property

One of the first costs you'll make when starting out in the industry is finding a property whether you decide to build, lease or buy. Building from scratch comes with a range of costs covering aspects such as licenses, building structure, and the installation of electrics, plumbing and equipment. If you choose to lease then you will generally have to pay lower upfront costs due to the option of signing different lease agreements. You will tend to pay the regular rent plus a percentage of your revenue and the contracts can range from month-to-month to multi-year.

If you are buying a new store, then you'll need to place a significant initial investment. Purchasing a new coin laundromat can range from $50,000 to more than $1 million. However, you'll then have long-term stability and equity owning your own property with the opportunity to either sell or lease in the future.

Equipment

You'll need the all important mix of washing machines, dryers and other workstations to provide the best service to your customers. For a full breakdown of the different equipment you'll need for your business, you can check out this blog post. Today we will focus on laundry machines.

Top-loading washers: These are ideal if you are tight on space as laundry can be entered from the top. They are generally more affordable but they'll use more water and energy which is something to keep in mind with your utility bills.

Front-loading washers: With these washers, laundry is put in from the front. They are also more energy and water efficient.

Hard mount machines: Made for commercial use, the unit is directly bolted to a concrete foundation or a sturdy structure. The design is essential for handling the machine's vibrations and high-speed cycles which is why they are perfect for bulkier loads that tend to come from commercial clients.

The cost of an industrial-grade washer can range around $2,000 to $3,500 and a dryer costing around $1,000 to $2,500 each.

CleanCloud POS System

To efficiently manage your laundry business, investing in a Point of Sale (POS) system is essential. A specialized system designed for the industry, like CleanCloud, can make a significant difference. With CleanCloud, you can track every order from start to finish, accept online orders through our booking tool or app, and manage payments, marketing, and reporting all on one cloud-based platform.

We can also provide everything you need to launch your own pickup and delivery service, including a driver app to help your employees track orders and navigate routes. Our pricing varies based on the package you choose, and you can opt for either monthly or annual payments, allowing you to select a plan that best suits your financial needs. Experience the benefits of CleanCloud for your new business with our 14-day free trial, available for you to start today.

The initial costs of starting a laundromat can be substantial, but careful planning and budgeting can help ensure your investment pays off. Next, it's time to look at the operational costs.

Operational Costs

Utilities

Water, sewage, electricity and gas are all 4 crucial utilities to keep in mind within your budget. Operating a laundromat requires a significant amount of water, making water and sewer costs one of the largest ongoing expenses. The amount you’ll pay depends on your location, the efficiency of your machines, and the volume of laundry processed. Electricity is another major utility expense, powering washers, dryers, lighting, and other electrical systems such as vending machines.

Utility bills in the US can range between $2,000 to $4,000 a month, so it's worthwhile investing in water and energy-efficient machines to help reduce those costs. Plus, maintaining a regular maintenance schedule ensures your machines are operating at peak efficiency. Additionally, if your new laundromat uses gas-powered dryers, you'll incur ongoing gas costs. Gas prices fluctuate, so it’s important to budget for these changes.

Supplies and Inventory

Stocking up on laundry items such as detergent, fabric softeners, and other cleaning supplies is essential for your laundromat. Whether you provide these for free or sell them to your customers via vending machines. After a few months of operating your business, you'll begin to understand the quantities of items you need to stock each month. This insight allows you to allocate a specific budget for inventory more accurately. If your laundromat has vending machines for snacks and drinks, keeping them stocked is another operational cost.

Regularly restocking these machines and selling laundry items not only provides convenience for your customers but also generates a small amount of additional revenue for your business.

Staffing and Management

Employee Salaries

If you plan to operate an assisted laundromat, you'll need to hire a team of employees to manage daily operations and provide customer service. The wages for laundromat attendants in the US can vary depending on experience and the specific duties required. On average, attendants can expect to earn between $12 to $15 per hour and are often responsible for assisting customers with their laundry, maintaining cleanliness and handling transactions. If your laundromat requires a manager, either due to size or additional services offered, their salary will be higher. Managers in the US typically earn between $30,000 to $50,000 annually, depending on their experience and the complexity of their responsibilities.

Staff Training Costs

Training is essential to ensure your employees understand and perform their roles effectively. It's important to keep your staff updated on new procedures, safety protocols, and customer service skills. Initial training costs may include developing training materials, paying trainers, and compensating employees for their training time. Additionally, investing in periodic workshops, online courses, and refresher sessions can help maintain high performance levels, with costs varying depending on the depth of training required.

Marketing and Advertising

The laundry industry is quickly becoming a competitive market. Do some research and a market analysis to create an effective business model and advertising strategy to help attract and retain customers. When opening a new laundromat, building brand awareness and engaging with the local community can significantly impact your business's success but, this will also come with some marketing expenses.

Brand Identity

Creating a strong brand identity is the first step in your marketing strategy. This includes designing a logo, choosing a color scheme, and developing a tagline that represents your laundromat's values and services. If you need a graphic designer to help create these elements, hiring a freelancer typically costs between $30 to $50 per hour. A more experienced designer will charge slightly higher rates, usually ranging from $70 to $100 per hour.

Website Development

A professional website is essential for a laundromat business, especially if you are looking to accept online orders from your customer base. Your website should include information about your services, pricing, location, and contact details. You should also include an online booking system for pickup and delivery services. With CleanCloud, we offer a booking tool that you can easily integrate into your website. Simply copy and paste the embed code into a dedicated page!

Typically, hiring an expert to develop a website for a small business costs between $3,000 and $8,000. However, as a CleanCloud customer, you can use our streamlined website tool for free, complete with all the features you need! For more information, check out our article.

Advertising Campaigns

Launching initial advertising campaigns helps to build awareness of your new laundromat. This might include local newspaper ads, radio spots, and digital ads. Initial advertising costs really do vary depending on the size, placements and reach of your campaigns. If you are looking to advertise in a newspaper, a small modular add can start from $50.

An alternative is digital advertising. You can create and promote your own social media page for free, or advertise your laundromat services through platforms like Google Ads and Facebook Ads. This approach helps you maintain a steady stream of potential customers. The ongoing monthly cost for digital advertising on platforms such as Google varies based on your target audience and campaign goals, with payments depending on the number of clicks and impressions your ads receive.

Opening a laundromat is a great business venture, but it's important for your investment to pay off. it is key as a laundromat owner to understand the initial startup costs and operational expenses. In this blog, we have provided a breakdown of the key costs to consider when starting a new laundry business, to help give you a clear picture of the budget you will need to avoid any unexpected financial challenges.

If you are interested in trying CleanCloud for your business, book some time with one of our expert sales team who will be happy to answer any questions.


Latest Blog Posts

Laundry Service Advertising for the Winter Season

The holiday season is the perfect time for laundry service advertising. With potential customers looking for seasonal discounts and festive deals, we've shared some marketing techniques for your laundromat business this winter.

6th December 2024

10 Must-Haves for a Laundromat Website

For a laundry business to succeed, it's essential to have an online presence. In this blog, we've created a list of our top 10 must-haves for a successful laundromat website, including tips for those using CleanCloud's website builder.

6th November 2024

Decoding the Laundry Industry: Essential Key Terms

A glossary packed with terminology and keywords for the laundromat and dry cleaning industry.

29th October 2024

Wash Wagon

In this CleanCloud customer story, Eric from Wash Wagon in Canada, highlights how CleanCloud Pay has simplified and streamlined his processes with accurate and secure payments.

10th October 2024

The Future of Laundromats: A Chat with CleanCloud

CleanCloud Co-Founders John Buni and David Griffith-Jones joined Bob Nieman, Editor of Planet Laundry, to explore the ever evolving landscape of dry cleaning and laundry operations in this podcast episode.

8th October 2024

Ready to get started?

Trusted by thousands of laundromats and dry cleaners worldwide