Investing in a Coin Laundry
The coin-op laundry industry has developed into a reliable source of income for many investors and entrepreneurs. Servicing a primary customer base of 104 million people living in rental housing as of the 2014 updated census information, the average coin-op laundromat can generate cash flow between $15,000 and $200,000 per year with a market value between $50,000 and $1 million. Thanks to a steady market that remains productive, or actually improves during recession (due to an increase in the rental market), coin-op laundromats often occupy their retail space on long-term leases of 10-25 years. Learn more.
How to Start in the Coin Operated Laundry Business
The coin laundry business has always attracted aspiring entrepreneurs who not only want to be their own boss and make their own hours but who also enjoy working with the public and being an active member of the community. According to most industry experts, there are some 35,000 coin laundromats in North America, generating over $8 billion in sales, serving around 30 million people. It is said that the coin laundry business is "recession proof" there will always be a need for clean laundry.
However, the business is much more complex than many people realize and not everyone has the temperament and skillset to be a successful entrepreneur. In addition, the industry has evolved in recent years, and like everything else, has become much more competitive. These days, in order to succeed, coin laundries need to be optimally managed, energy-efficient, and offer the latest amenities, in addition to being in the right location. Here are some key considerations:
How to Attract Customers to your Coin Op
- Convenient location near high density housing, schools and popular retail stores.
- Marketing, including local advertising and use of social media.
- Prominent, attractive signage: make it easy for customers to find your store.
- Free & ample parking that's easily accessible.
- Clean, safe and bright space: attractive decor with high quality materials & a lot of light.
- Friendly, knowledgeable attendant(s) on duty for at least part of the day.
- Coin or Card - decide which your local market prefers (coin requires changers).
- Vend pricing that makes sense for your local market and demographics.
- Customer Loyalty Programs.
- User-friendly: appealing, reliable commercial laundry equipment that always works.
- Rugged laundry machines that will remain attractive and are durable for the long-term.
- Customers are able to get in and out quickly—no waiting—with efficient, high capacity machines.
- Good laundry care—clothes come out clean and looking like new.
- Large capacity machines to wash and dry bulky items such as bedding.
- "Standard" Amenities - "A/C", Wi-Fi, Cable/Satellite TV(s), seating, carts, charging stations.
- Vending Machines - snacks & drinks, laundry supplies.
Stand out from the Competition - Value Added Coin Op Services
- Drop-off wash & fold
- Pick up & delivery service
- Commercial laundry service
- Kids play area
- Video games
- Coffee Bar and/or Reading Area
- More ideas for staying ahead of the competition
How to Succeed in the Coin Operated Laundry Business
- Consult with an experienced, qualified equipment distributor who knows your market, before you get started. Ask for references from other customers.
- Use modern, high efficiency coin op equipment to save on utilities, reduce cycle times to increase customer turnover and satisfaction, and reduce downtime.
Western State has been helping coin op customers acquire, develop and operate profitable laundromats since 1974. Our 43 years of experience in coin operated and commercial/industrial laundry operations has allowed us to develop a level of expertise that is unmatched by others in the industry. Contact us and we will explain how we can help you with your new coin laundry business or improve the bottom line of your existing store. For further information, please contact one of our knowledgeable Laundry Specialists.