How much money does it cost to open a laundromat

To start a laundromat on average costs from $250,000 – $750,000. Sounds like a lot of cash for a new investment, Right? However, you need to know that a laundromat startup has many advantages over other investments. And in this article, our goal is to show you how quickly your investment can become profitable and to break down your laundromat business startup costs.

Table of Contents Show

How Quickly Will You See a Return on Your Investment?
Ready to Start a Laundromat?
Cost to Open a New Laundromat
Cost to Open an Existing Laundromat
How profitable is a laundromat?
Are laundromats a good investment?
Is owning a laundromat easy?

First, just like the US mail, laundromats never shut down for anything. Because, as we recently found out, laundromats are an essential business. Just like grocery stores and gas stations, laundromats are pandemic, and recession-proof. After all, people will always need to have clean laundry. So unlike other investments, yours will continue to make money when other businesses may fail.

How Quickly Will You See a Return on Your Investment?

Laundromats on average have a 25-35% ROI, making them a great investment. And with all of the new technology out there, like cloud-based payment systems, you need fewer employees than ever before. All of this combines to guarantee that a laundromat investment could certainly be your best one yet.

There are many factors that go into profitability, of course. Nevertheless, if you work with a great distributor, you’ll be able to plan for success. Be sure to partner with someone who knows the industry.

By choosing the ideal location and installing the best equipment, your laundry business could start paying you dividends within a few short years. Below is an example of a real laundromat started by Laundry Equipment Services.

Ready to Start a Laundromat?

If you’re ready to start a laundromat, the only thing you need to do is locate a distributor near you. Keep in mind, the distributor will be your partner throughout the entire process. From laundromat design, and financing, to the grand opening and beyond. They will be there every step of the way. So choose wisely, and base your decision on real reviews because you need a partner you can trust.

We also recommend visiting some of their installs for yourself. Talk to other laundromat owners who have used that same distributor, and do a load of laundry in the equipment that you want to use.

Once you’ve found the ideal distributor, you’re on easy street. They will take it from there. You can just relax and let them build your investment.

Are you curious about investing in a laundromat but looking for expert advice on the costs associated with this business venture? You've come to the right place! Coin-O-Matic has been in business for over 100 years, and we have the industry expertise and experience to guide your business venture!

Let's look at the numbers to see how much it costs to open a laundromat!

Cost to Open a New Laundromat

The start-up costs for opening a brand-new laundromat are substantial. Generally, we advise business owners to budget for at least $200-$300+ per square foot for laundry equipment, amenities, and the buildout of an existing vanilla box. Typical laundromats range from 2,000 to over 5,000 square feet, costing $400,000 to over $1,000,000 all in. There are variables that go into these equations, including construction abnormalities, finishings, amenities, and municipal-related expenses such as water, sewer tap fees, etc.

PRO TIP: The big money made from a laundromat is on its sales and operational efficiency rather than its investment cost. Remember, your money will be made on sales over time, not the initial investment in the business. Invest smart initially to make money over the entire lifespan of your equipment! Focus on the future return on investment, not your upfront costs.

Cost to Open an Existing Laundromat

Investing in an existing laundromat? Our general rule of thumb when it comes to investing in an existing laundromat is that it is worth four to six times the annual net revenue. Of course, the age and condition of the laundry equipment, the location, and any associated real estate leases all come into play here, as does the accuracy of the current businesses' financial record keeping.

PRO TIP: DO NOT purchase an existing laundromat without the help of professionals like the staff from Coin-O-Matic. We will help you sort through fact and fiction. No need to risk the chance of paying too much for a laundromat and then have invested more money to replace outdated laundry equipment and related ancillary items. You also need to pay a whole lot of attention to the real estate lease agreement. Details like this can make or break your success, and a qualified consultant can help.

How profitable is a laundromat?

Laundromats in the U.S. see an average cash-on-cash ROI of 20-35% ⁽⁹⁾—much higher than most alternative investments. And when you factor the flexibility and low labor costs, laundromats just make sense.

Are laundromats a good investment?

For example, the average return on investment of a laundromat business is 20% to 35%, a much higher return than the S&P 500 has historically provided. A laundromat is also relatively simple to set up and flexible to maintain. Here are 15 reasons to consider this potentially lucrative side business as your next venture.

Is owning a laundromat easy?

Unlike traditional retails businesses, laundromats have very little physical inventory. That means minimal ordering, rotating, or discarding products, which makes for easier management. It also means you won't have to deal with preparing and storing large amounts of expensive inventory ahead of time.