How much does it cost to open a laundromat? What could be the laundromat startup cost? What are the average profits this business earns? We’ll be discussing all this here and more to guide you with your commercial laundry startup/investment. Keep reading the blog to find your answer and discover modern and super-efficient tools like Clean Touch EPOS by Axcess IT to give that “boost” whether your launderette is new, renovated, or is missing out on something.

How much to start a laundromat? Initial Investment Breakdown

Here are the top factors to be evaluated whenever considering “how much does it cost to start a laundromat”.

Factors to Consider for Laundromat Valuation

1. Location

Location is the key factor that makes a commercial laundry business a win or lose. Choose the best possible location in your budget, preferably near universities (attracts students & hostels), somewhere near apartments or complexes, etc. Such locations drive more walk-ins, but the cost of a laundromat here could be higher because of high rent for prime areas.

2. Quality and Technology of Equipment

When buying laundry equipment, you may think of cost-effective but high-maintenance ones or high-cost yet low-maintenance ones. Other factors to count on are energy-efficient washers and dryers that lead to low electricity bills.
Besides quality of equipment, make sure to have modern technology installed at your premises, like Clean Touch EPOS, for streamlining admin tasks, inventory management, staff management, garment-tracking, and more of the vitals that can be done in a short time and with greater efficiency.

3. Reputation through Customer Base

It is better to have a launderette with a loyal customer base than one with more walk-ins. Did you get the difference? If your business fails to retain customers, the laundromat’s worth could gradually decline in the long run. So, prefer offering reputable services so that it adds value to your business too.

4. Market Trends

This is associated more with local demographics. For instance, areas with a growing rental population or student complexes would provide consistent demand as compared to self-service laundromats having fluctuating demand.

5. Add-on services

Laundry and dry-cleaning are the basics when you own a launderette, but you need to go overboard for those extra pounds. Offer “additional” services like garment-care products, wash and fold, ironing, pick-up and delivery, vending machines, etc that customers find attractive and useful.

6. Amenities for customer satisfaction

Allow your customers to access Wi-Fi for free, have seating spaces, facilitate multiple payment methods, etc, for optimal customer satisfaction.

Laundromat Cost Analysis

Understanding the laundromat cost analysis will help you determine the different “spend” groups which have a huge impact on the profitability of the business.

Here is the much-needed Laundromat Cost Breakdown to consider before it goes live:

Initial Costs – These are the costs mostly relatable as “one-time” or those requiring to be “less spent on” later. For instance, purchase or lease agreements, equipment & technology investment, licensing costs, etc.

Fixed Costs – If the outlet is rented, the owner will be paying a fixed amount as rent every month, staff salaries, insurance, etc, loan repayments (if any), etc, are some of the fixed costs for the business.

Fluctuating Costs – Some amount need to be spared for fluctuating costs like utilities (electricity bills, water bills, gas bills, detergent & similar supplies).

Long-term Costs – While laundry & dry-cleaning businesses have heavy-duty equipment with long life span but still those inevitable breakdowns, replacements, or upgrades need attention too.

What is the Average Laundromat Revenue?

After identifying the startup costs, you may be curious to figure out the laundromat profit margins. While it varies according to the size of business, location, customer base, services offered, etc., an average commercial laundry business is estimated to generate around £200,000 to £500,000 yearly.

You can say, the profit margins can be 20% to 30% which makes it a stable revenue-making business option. If add-on services are offered (like wash and fold, dry-cleaning, pickup and delivery, related product upselling, etc), then the revenue can spike significantly.

Investing in smarter systems like Clean Touch EPOS can help laundromats track performance, run detailed analysis, outline key improvement areas, reduce overhead costs, and ensure long-term success.

The Takeaway

This guide on how much does it cost to open a laundromat will help whether you are among those curious laundromat investors or someone thinking of a laundry & dry-cleaning business for startup. As seen, different factors influence this aspect including location, machinery, services provided, add-ons, product upselling, etc. Conducting thorough research will let you know what works best for you according to your budget and how you can make the most out of your resources. The average cost may seem higher initially but the scalable opportunities and steady profit margins can make the investment worth. And as the services become popular, there is no looking back.

Empower your business with advanced technology like Clean Touch EPOS by Axcess IT which optimizes tonnes of routine to management & promotional-level tasks for your launderette. Overall, it’ll become one of the best decisions for your business (no matter if a startup or a well-established outlet). Your ROI will only grow!

Schedule a FREE CONSULTATION for your Custom Laundromat EPOS solutions today.

FAQs

How much does it cost to open a laundromat?

The Average Laundromat Cost varies according to the location choice, quality, and number of equipment preferred, size of the business, etc. It could cost around £150,000 to £500,000 (approx.).

How much does a laundromat cost?

The launderette cost depends according to your preferences, whether buying an existing setup (might cost budgetary) or starting afresh (costs high or low according to location, equipment, store setup, etc).

How much to open a laundromat?

For a mid-sized laundromat startup fledged with impressive ambiance, modern machinery, and amenities, the average budget requirement is around £200,000.

How to Buy a Laundromat?

A lot of research goes into buying a laundromat. From evaluating your budget with choice of location, deciding the customer base your business will be serving, quality and technology of equipment, staff requirement, etc, are certain key factors.