Thanks to improvements in technology, commercial laundry equipment has come a long way. Washers, dryers, and other laundry machines are now faster, quieter, and more energy-efficient than ever before. If you’re still using older laundry equipment at your facility, it may be taking more of a toll on your business than you realize. Here are … Continue Reading »
If you’re considering opening a laundromat, you probably have a lot of questions. It’s a big decision and investment, and you want to make sure you’re setting yourself up for long term success. Before getting too far in the process, here are a few key things you should know about the laundry industry and opening a laundromat.
Laundromats have a high ROI.
Do you want your business investment to pay off in the long run? Of course you do! If you decide to invest in the laundry industry, you’re in luck. Laundromat businesses in the United States generally see between a 20 to 35% return on investment and about a 95% success rate. Since clean clothes are always a personal and health necessity, the laundry industry is also resistant to rises and falls in the economy.
It’s a flexible job.
Flexibility is one of the best things about being a business owner, and the laundry industry provides it. While it’s no doubt running any business takes hard-work and dedication, laundromat owners are able to customize their business around their lifestyle. About 36% of current laundromat investors consider their store a part-time job. Hours and number of employees can also vary, so you’re able to choose what works best for you. Laundromats are typically open between 6 a.m. and 11 p.m., though you could operate on a 24-hour model.
Start-up costs are low.
Your initial investment can vary greatly depending on size of the space, location, financing, etc. However, the average upfront costs for laundromat investors is about $100,000 to $300,000. Compared to other business ventures, these costs are low. By partnering with a laundry distributor like OEM Laundry Parts, you can also get creative financing options that meet your financial needs and overall business goals. Distributors that also offer industry insights, business consultations, and ongoing support can save you money and help your business grow long-term.
Location is key.
Location is one of the most important things to consider when diving into the laundry industry and a key component of success. Laundromats thrive in areas with rental properties and low income households, which means ideal locations have surrounding apartment buildings, university/student housing, mobile homes, and condos. Because they attract a lot of foot traffic and similar demographics, businesses like grocery stores, convenience stores, and auto parts stores make great neighbors for laundromats. You should also look for locations that are easily seen from roadways and have plenty of parking nearby.
Before settling on a location for your new business, it’s important to do both online and in-person research. Your realtor, other business owners, police reports, demographic reports, and your own observations are all great resources for gathering information. Take time to visit the surrounding businesses, take notes, and ask plenty of questions.
Invest in high-quality commercial laundry equipment.
Obviously equipment is a key element for success in your laundry facility. That’s why it’s important to invest in high-quality commercial laundry equipment from the get-go, rather than down the road. The most recent and up-to-date equipment is more energy-efficient, which will save you money when it comes to utility costs.
Having newer laundry equipment also means less machine downtime and costly repairs, which in turn, means more money in your pockets. Top brand names like Whirlpool, Huebsch, Tolon, and Speed Queen will also help attract customers and help you to outshine the competition.
If you’re ready to start your journey into the laundromat industry, OEM Laundry Parts wants to help! Contact our team of laundry experts for the latest in commercial laundry equipment and industry insights and find out how we can help you hit the ground running with your new laundry business.