Operating a Laundromat business can be a haven for making some income especially if you get everything right from the basics to the start up requirements.
In a Laundromat store, you will basically be washing and drying clothes for clients at a fee. However, as much as you can get skeptical about the success of such a venture, note that its profitability will depend on how you set out to start the business and how you take care of the operational costs and other important basics. Whether it is a coin-operated Laundromat or a card-operated one, everything comes down to a number of factors. To best answer the question on how to make money in a Laundromat business, take a look at the following pointers.
How A Laundromat Business Can Make You Money
The Necessary Costs
Of course you first have to run into some costs like renting a space, buying or leasing the washing and drying machines. On top of this you will have to hire a technician to wire the coin-operated equipment properly. Top machines can cost around $500 each and the dryers around $ 2500 each.
You will also have to cater for a soap-vending machine that can cost up to $1000. You are not done yet as you still have to connect all your washing machines to the local sewer system. Charges here will be billed per machine. Maintenance services will also come in. Finally you may have to employ a person to collect the money at the end of a working day.
As an alternative you can buy a defunct or existing Laundromat. This is the most preferred option because starting from scratch can be a challenging and very demanding undertaking. Buying a building or new equipment also requires a considerable amount of money. Therefore, you will be better off starting a Laundromat business by renting a building and taking advantage of equipment leasing programs available.
The Income Potential
Now let’s get down to the income earning potential of your Laundromat business. Based on common assumptions in the market, you can look forward to operating your washing machines at least 4 times daily. Based on your average price per wash and the average cost of drying clothes- which is mostly 25% of the total washing revenue, you can expect a five-figure income at the end of the month.
Are You Turning A Profit?
However, you still have to calculate the profit earned for the month by deducting the necessary monthly expenses. If you are operating on a rented building and leased equipment you will pay such charges. In addition, you have to cover the utility fees for electricity, water and even refilling the soap and vending machines.
Maximize Your Proceeds
For obvious reasons, you want to see increased turnover and therefore would not want to run a Laundromat business whose returns on investment are low. Therefore, you can cut down on labor costs to maximize your monthly or yearly profits. You can take the incentive and buy Laundromats that customers can use to swipe their credit cards. Besides such equipments use less power compared to coin-operated ones.
Clients nowadays also appreciate a service that they can conveniently pay for and not with coins which less people carry anyway. If you can afford it, you can also operate your Laundromat business by purchasing washers and dryers that work on a refillable card system. The choices you can make are endless if you are indeed keen on increasing your profit.
A vital trick on how to make money in a Laundromat business is to get a balance on all the operating expenses- leases, rental charges, utilities and the amount you charge for washing and drying services. If your equipment are properly maintained they can conserve water and even the electricity consumed on a monthly basis.
Scrutinize both your water and electricity bills properly and analyze whether they have gone up or gone down in recent months. This assessment can help you adjust your average price per wash. Though it is important to ask how much you can earn from a Laundromat at the end of the month, the true question sometimes is how many Laundromats can you operate or own? You can then make a wise decision and run a successful Laundromat business.
For more information on leasing equipment for your laundromat business simply CLICK HERE.