Financial Overview
According to the Coin Laundry Association’s Brian Wallace, the annual gross income from one store can range from $30,000 to $1 million. The expenses incurred while running a store range between 65 and 115 percent of the gross income.
Laundromats in the U.S. see an average cash-on-cash ROI of 20-35%. All the benefits of a profitable investment––without all the risks. While coin laundries can be quite profitable, there are also some challenges that come with running this type of business. For example, you’ll need to constantly maintain and repair your machines, as well as keep the laundry area clean and organized.
Opening a Successful Coin Laundry
Tips to open a successful coin laundry:
- Choose the right location
- Buy quality machines
- Offer value-added services
- Market your business
The longevity of laundromat investments and high survival rate — 95% of stores are still open after five years — may be explained by the recession-proof nature of the business.
Profitability Questions
Can owning a laundromat be profitable?
Owning a laundromat can generate $15,000 to $300,000 in cash flow per year. However, profitability depends on location, equipment, and management. With the right factors, laundromats can provide 20-35% ROI.
What affects laundromat success?
Location impacts customer volume. High-quality machines reduce repairs and improve customer experience. Regular maintenance also lowers costs. Considering these critical factors provides a complete view of potential profit.
Industry Statistics
The laundromat industry brings in $5 billion yearly. With careful planning, laundry owners can enrich their lives and communities.
Starting Your Own Coin Operated Laundry
The laundromat industry sees an average return on investment of 20-35%. Once a laundromat owner succeeds with one store, a second location can easily be opened. However, profitability depends on location, equipment, and management. Considering critical factors provides a complete view of profit potential. The self-service nature of laundromats might sound attractive because they can be low maintenance to run.