How Much Does It Cost to Open a Laundromat?
Millions of Americans start a business every year, and a laundromat is a favorite choice for many business owners. But if you’re considering trying to start a commercial laundry business, you might be wondering how much you’ll have to fork out to get your endeavor off the ground.
So how much does it cost to open a laundromat? What are some of the factors that go into it?
Luckily, you’ve come to the right place. Read our handy guide to find out!
Where Will You Open a Laundromat?
Location is one of the most important things that will affect your costs. If you’re trying to own a laundromat in a very expensive city, you’re going to pay a lot more for the building and business costs than if you’re in a small town somewhere.
Because there is so much variability, there is a rather wide range for how much you can expect to pay to open a laundromat. However, the typical range that people see is somewhere between $200,000 and $500,000.
Bear in mind, this price is not only due to the city where you open your business. You also have to factor in what size of laundromat you want to open and the equipment you’re going to have to furnish to keep things running.
New vs. Existing Laundromat
Some people manage to find an existing laundromat to get their business started. If you’re lucky enough to be in a situation like that, congratulations! Your startup costs are going to be quite a bit cheaper.
But even if you don’t have a laundromat business handed to you, there are still some factors to consider before you can own a commercial laundry business of your own. Will you need to renovate your building to handle the laundry machines and other equipment? What about the cost of all the utilities?
At the end of the day, you can definitely save a lot of money if you have less work to do at the beginning. Try to find ways to save some money on startup, and you’ll be amazed how far you go!
Washing machines and dryers are the main equipment for your business, and they can be quite pricey. A safe estimate for washing machines is around $1000 per unit, or even more if you go for larger front-loaders.
Even worse, commercial dryers tend to cost another few thousand dollars each. Equipment tends to be a large portion of your total commercial laundry business costs, and can often reach a couple hundred thousand dollars all on its own, depending on how many machines and what type you get.
And if your equipment breaks, you’ll have to factor in the costs to fix it. Commercial laundry equipment repair will be a necessary part of running your business, so make sure you include that in your budgeting.
Don’t forget the payment systems! Credit card readers and coin systems both have their benefits and drawbacks, so you’ll have to decide what you want to use for your machines.
Additionally, you’ll need a big industrial water heater to handle all the hot water, as well as the utilities and infrastructure to deal with the water and electricity costs. These can add thousands more to your operating costs, contributing to that original $200k-$500k estimate.
Learn More Great Business Tips!
This overview of the costs needed to open a laundromat should give you a good ballpark to start figuring out how to start your own laundry business. But you’ll need to do a lot more research before you dive in and start buying equipment!
Feel free to check out the rest of our blog if you have more business questions or want to learn some more business tips! We’re eager to help you make your business the best that it can be.