How Much Does the Average Laundromat Make In a Day? – Laundromat Resource (2024)

FAQs

How Much Does the Average Laundromat Make In a Day? – Laundromat Resource? ›

The average laundromat makes between $450-$500 per day. This includes revenue from the washers, dryers, and other secondary income streams such as vending revenue. The range of daily income from self service laundry is around $100 per day to $1,500 per day.

According to Coin Laundry Association, the annual turnover for a laundry shop can vary significantly and can range between $30,000 and $1 million. However, based on the total market value and the total number of laundromats in the US, the average annual turnover of laundromats is $142,857.

Laundromats in the U.S. see an average cash-on-cash ROI of 20-35% ⁽⁹⁾—much higher than most alternative investments. And when you factor the flexibility and low labor costs, laundromats just make sense.

A typical laundromat returns between 25%-35% return on investment (ROI).

While not entirely passive, laundromats do provide a high rate of return, usually 20-25%+, for a minimal amount of time investment. Any business that deals with people and equipment will need some managing, but there are ways to set up your laundromat business to make it relatively passive.

Dave Menz's initial purchase of a run down laundromat he found on Craigslist has led him to becoming a millionaire. Here's how he did it – and you can, too. As of 2022, there are 18,264 laundromat businesses in the United States that generate about $5 billion in combined nationwide gross annual revenue.

Laundry Services: Offering customers additional laundry services is a common method for laundromats to gain additional revenue. Wash and fold, delivery, ironing, and dry cleaning are a few examples of laundry services that can help attract new customers and increase engagement among existing customers.

Laundromats are actually quite recession-resistant. Unlike other businesses, people still need to wash their clothes even when money is tight. So, while you may see a decrease in business during a recession, it is unlikely that your laundromat will go out of business.

What is a good cap rate for a laundromat? ›

Put another way to make for an easier comparison with laundromat valuations, at a 5% cap rate a commercial property is valued at 20 times the net operating income. A laundromat, however, is typically valued at 3.5-4.5 times the net operating income.

All-in-all, the average cost of a laundromat per month depends on several factors. But an owner who runs his or her store well – who keeps it clean, repairs its equipment quickly, uses energy-efficient systems, and offers good customer service – can expect to see profit margins of about 35 percent annually (source).

Start with a multiplier of 50. Then, adjust it up or down in response to the factors that impact a laundromat's value and the strength of the area's real estate market. Finally, multiply the laundromat's monthly net profit by the multiplier that you decided on. This should give you an idea of the business's value.

Laundromat business model

With an ROI (return on investment) of between 20-35%, laundromat businesses have a 94.8% success rate, bringing in a gross income anywhere from $30,000 to $1 million a year.

Running a laundromat is fairly straightforward – the equipment is easy to maintain, labor costs are low and there's no inventory involved. It's also a reliable source of income, as you can expect a steady stream of customers at any time of the year.

How profitable are laundromat vending machines? Laundromat vending machines are a very solid way to make some income. You can even finance most new ones for less than $500 per month, and you'll likely see an ROI of around $1,000 per month.

Laundromats tend to be profitable even in an economic downturn. During a recession, more people will turn to self-service laundry rather than outsourced laundry or dry cleaning.

Laundromat machines are highly efficient and use much less water than washing machines at home. At a laundromat, the washing machines typically use only 15 gallons of water, while an average washing machine at home generally used double that amount. That will save you money on your utilities.

Success Rate/Return on Investment

The laundromat industry sees about a 95% success rate. Laundromat businesses average between 20-35% ROI.

What are the risks in a laundromat business? ›

High utility costs

A laundromat relies on electricity, water and sewage for daily operations. As utility costs increase, you might find it hard to turn it into a profitable business. While you can't control inflation, you can definitely control the energy and water efficiency of your equipment.

There are a number of risks associated with laundry operations including fire, water damage and health and safety, which if appropriately identified and managed can be greatly reduced or even avoided.

How Much Money You Need to Start a Laundromat Business. The minimum initial investment required to start a laundry business when using leverage is $50,000. When purchasing a laundry business leveraged, plan for a minimum of $200,000. When building a new laundry business, a minimum of $250,000 will be required.

Individuals and families are often the target market for laundromats, although full-service laundries serve both individuals and companies such as hotels, hospitals, and restaurants.

Laundry Care providers do laundry at home for people in their area and are earning over $15 an hour for the work. Even beginner providers and people in new regions are making on average $150 a week.

Research shows that small-scale, self-serve car washes can earn around $40,000 annually in profits, while more extensive, tunnel car washes can make close to $700,000 a year. Even though it may take some time to see the profit after you start, the return after a few years can very well pay off.

Most people do not have enough storage space in their homes to store a lot of clothes. Laundromats provide an extra place to store your clothes while they are being washed, which is especially helpful if you do not have enough storage space at home.

During the pandemic, laundromats were one of the few businesses that remained open, proving that the industry is extremely resilient and will continue to provide store owners with dependable income in 2023 and beyond.

Generally, if left in a washer the attendant will dry them, to keep them from smelling, you can then retrieve your cloths by paying the drying cost and a small fee for finishing your laundry. Once dry, or if already dry in the dryer, they will be set aside for a few days to see if the owner returns.

Is a laundry business seasonal? ›

The laundry business can be seasonal. But the swings aren't as bad as most businesses. If you owned a car wash and it rained for two or three weeks.

Combining all of these factors, the average cost of a load of laundry is $1.27. At this cost, if you do one load per week, doing laundry costs $66.04 per year. If you do four loads per week, doing laundry costs $264.16 per year. If you average eight loads per week, doing laundry costs $528.32 per year.

Investors hoping for deals with a lower purchase price may, therefore, want a high cap rate. Following this logic, a cap rate between four and ten percent may be considered a “good” investment. According to Rasti Nikolic, a financial consultant at Loan Advisor, “in general though, 5% to 10% rate is considered good.

That number is 30%. So 30% of the US population (317,000,000) is 951,000. I believe these numbers are plausible as I work in a real estate office and this is based on trends. Is the USA the most racist country in the world?

But it begs the question, what is the best cash-flowing investment to acquire. Laundromats make the best cash-flowing investments. With an average, unleveraged return of 20-30%, the average laundromat investment is far superior to the average real estate investment, which will cash flow between 7-10%.

How much does a Laundromat make in New York? As of May 7, 2023, the average annual pay for the Laundromat jobs category in New York is $28,273 a year.

As a general guide, the average Australian laundromat generates returns of approximately 25 percent of the initial investment each year, translating into earnings ranging from $300 to $1300 per day.

An important component of valuing your laundry business is using that number to help you sell it, if needed. So what are the common selling multiples for laundromats? Ordinarily, the industry standard is to use 3-5 times the annual profits as a selling price.

Most laundromats provide vending-machine detergent. Some even supply you with detergent for free. Nevertheless, you may wish to bring your own because of preferences or allergies. Jugs of detergent and softener can be cumbersome, so invest in travel-sized containers.

Laundry business is a very lucrative business that you can make money from. You need a good location and a good marketing approach, you can make a lot of money from it. Decide the scale you want to start. Do your feasibility studies and know the cost of things in the environment you want to set up.

Do laundrettes make money? ›

A good starting point is to let you know that laundrettes are businesses with some of the highest success rates, and they can be very profitable and sustainable if you run them efficiently. If you're thinking of buying a laundrette and want to know what it takes to run it, let's get straight to the point.

Most vending machine owners mark up the price of their products at least 100%... but oftentimes as much as 200% or 300% or more.

Yes vending machines can be a very profitable business. You may earn $8,000 or more each year from having just 1 machine. You may get a 100% ROI within 18 months which is considered an excellent return on investment.

Costs will vary depending on size, rent, equipment capacity, number of machines, services offered and fit-out. All things considered, setting up a laundromat from scratch generally requires an investment of between $100,000 and $400,000.

After years of ownership, many sellers find themselves ready to retire from the semi-retired life of laundromat ownership. They may want to travel more, spend time with family, care for health concerns, or a combination of reasons. Owners who are ready to retire from the business are some of the more common sellers.

Easy To Operate And Low Labor Costs

Of course, your store must be cleaned, and you may choose to offer extra services, but compared to other retail-type businesses, laundromats incur very low labor costs are relatively easy to maintain.

Customers Demographics

Low income renters are the primary users of coin laundries. More than 60% of laundromat patrons are women. 87% of customers live within a mile of the facility. Laundromat customers' median household income is $28,000.

Laundromat machines are highly efficient and use much less water than washing machines at home. At a laundromat, the washing machines typically use only 15 gallons of water, while an average washing machine at home generally used double that amount. That will save you money on your utilities.

Founded in 1968, PWS is the largest distributor of commercial laundry equipment and commercial laundry replacement parts in the United States.