Aug. 13, 2021
According to data from the Coin Laundry Association, the cash flow of laundromats is usually between US$15,000 and US$300,000 per year. This huge bonus has attracted countless entrepreneurs. And many entrepreneurs are also attracted to laundromats because they seem to be able to operate without labor, even though the owner must purchase and maintain facilities and laundry equipment. However, before starting a business, entrepreneurs must consider the profitability and risks of the business. So what is the profitability of the laundromat business?
The profitability of the laundromat business depends on many factors. For instance, the laundry equipment you invest in your business will have a significant impact on the benefits you get from it. Therefore, you may be wondering what are factors that influence the profitability of the laundromat business. Here are we list the following 4 factors:
Choosing a suitable location can help you increase the income of the laundromat. Being close to the main road, having obvious signs and providing plenty of parking spaces will attract the attention of customers. Taking into account the main population distribution in the area, areas with many apartments and young people may need laundromats more than communities with affluent families. In addition, don’t be too close to other laundromats. Increasing competition will not do you any good when you are just starting out.
Your profit will largely depend on your investment. If you use energy-saving machines, your initial cost may be high, but the subsequent water and electricity bills will be reduced. If you buy cheap but poor-quality washing equipment, the subsequent maintenance costs will waste the money saved, and at the same time, your reputation among customers will be lower and customers will be lost during the time. Therefore, investment in stable high-quality vend laundry equipment is significantly important. In addition, do you need to hire part-time staff to keep the store clean and handle other basic duties? Do you need to hire security services? Will you just provide customers with a coin-operated washing machine to wash their clothes, or will you provide additional services such as ironing tables, folding machines, and other laundry equipment to improve your competitiveness? Those are also important to take into account to boost your Return on investment.
Check your competitors to see if you will have an advantage in their business. If there are already multiple laundromats in the area, it would be very unwise to open another laundromat unless they are in very bad condition or have a bad reputation. However, maybe your laundromat will be cleaner and safer. It also provides additional folding services or is equipped with a TV and vending machines as well as a cafe. As long as it attracts customers more than the laundromat in the same area, your laundromat will definitely be successful.
If you maintain the laundromat well, it will attract new customers and get repeat customers. Therefore, you need to hire staff to clean and maintain the laundromat, or you can do the job yourself. In addition, if the customer does not know your existence and the excellent service you provide, you will not be able to make a profit. Consider advertising, buying attractive signs, and providing online services to attract customers.
If you’re interested in opening a laundromat, be sure to check out with JINAN OASIS. With a high-tech expertise team, abundant experience in management, unique washing technology, earnest service, and reasonable performance-price ratio, the machine from Oasis has been exported to more than 60 countries and has received the trust, support, and favorable comments from both laundry experts and users. To learn more about our products and services, please feel free to contact us online. We look forward to hearing from you!
