How to Start a Successful Laundromat Business

As a leading distributor in the commercial laundry equipment industry, we’ve helped many entrepreneurs achieve their goals with laundromat startups. We can attest to the work required to turn an idea into a thriving business, and to the payoff when a new venture is properly planned.

While you may be eager to dive in, don't let the excitement of opening day rush your decisions. To take a laundromat startup from a blueprint to a profitable business, you'll need to understand the costs, customer base, location, services, and equipment. Our team is here to consult with you on any questions or considerations for your vended laundry business — reach out anytime.

The Strength of the Laundry Industry

Laundry is an essential business that will likely always be in demand. The industry’s flexible business models can all be profitable, whether you want to run a self-serve operation or a full-service laundry with fluff-and-fold and delivery.

Entrepreneurs wanting to earn semi-passive income, continue the tradition of a family-owned brand, or be their own bosses can reach their goals with a well-planned and executed laundromat startup.

Whatever your motivation, we’re enthusiastic about working with you to outfit your new business with best-in-class Dexter coin-operated washers and dryers — the equipment that’s helped our other clients start their own successful laundromats.

Getting on Board With Modern Laundromats

Gone are the days of finding an old laundromat for sale, making a few updates, and showing up at the end of the day to collect money from the machines. Still, opening a laundromat has the potential to generate substantial income, especially if operations are managed right.

The downside of owning a laundromat in today’s climate is that you’ll need to be prepared to compete, and doing so takes more effort than it once did. Customers now expect:

Nicer, cleaner facilities
Amenities, such as free Wi-Fi or USB charging stations
Value-added services, such as fluff-and-fold or delivery
Card payment options

Meeting these demands requires understanding the landscape and finding a commercial laundry partner who can help with every hurdle. Use this guide for laundromat owners to understand how to start a coin laundry that’s successful and profitable:

1. Estimating Laundromat Startup Costs

A frequently asked question about opening a laundromat is how much it will cost. The answer hinges on whether you've invested in an existing business or if you plan to open a laundromat from scratch. Keep in mind that location affects startup costs for a laundromat, but the ballpark figures for an average-sized business can reach $500,000 (or more in a competitive urban area). Underestimating the expense can leave your new business without the financial backing to start strong.

Prioritize Investments

Besides the building purchase or lease, a startup’s capital also must cover utilities, insurance, licenses and permits, washers and dryers, and furnishings. While some items (such as storefront and permits) are non-negotiable, it can be hard for laundromat owners to decide which other optional expenses to invest in next. Here are some tips to guide these decisions:

Equipment upgrades: Customer satisfaction increases when washers and dryers feature the latest technology, such as cashless payments or custom wash cycles. Newer machines are also more efficient, saving you from costly utility bills.
Amenities: Extras such as vending, coffee, or a lunch counter can add incremental income to th ebusiness and help it become profitable early on.
Signage and curb appeal: An inviting, safe exterior with adequate parking is essential for a new business that may have limited chances to make a good impression.
Marketing and advertising: Smart, DIY marketing tactics can boost the bottom line for a laundromat startup, helping it get off the ground faster.

2. Choose the Location Wisely

Owning a successful coin-operated laundry means finding the right location from the beginning. The area you select will have a big impact on the startup costs for your laundromat and also its profitability, so you may find that investing a bit more to secure an optimal spot is worth it.

Laundromats should be conveniently located in an area populated with people who need easy access to good washers and dryers. In short, look for available land, vacant storefronts, and spaces to lease near:

Communities where income levels don't affford room in the budget for purchasing laundry equipment
Housing complexes, such as apartments, rentals, or dorms
Public transportation and walkable routes, like those close to shopping centers, strip malls, and grocery stores

3. Strive to Impress Customers

Many new owners make the rookie mistake of thinking self-serve laundries are hands-off businesses. Both may be vended, but running a laundromat is nothing like managing snack or beverage machines, where a customer walks up, drops in coins, gets something, and then leaves. People entering your laundromat are guests and have expectations for the facility and the staff they interact with. Both must be on pint to earn their loyalty.

Good customer relations don’t add to the startup costs for a laundromat but can have a big impact on sales and retention. When staff make the effort to smile, make meaningful small talk, provide quick tips, and get to know repeat customers by name, it builds a sense of community that people gravitate toward. A welcoming environment can make a huge difference in your laundromat’s success and can generate invaluable word-of-mouth advertising (especially if you’re competing with other businesses in the neighborhood).

4. Make Cost-Efficient Decisions

It’s not uncommon to visit a laundromat with free Wi-Fi, a kids’ zone, or dry cleaning, but you don’t need to offer all of these from day one. You may not have the funds to start a laundromat that includes a café and gathering area (as did one of our clients), and you might need to wait a while before adding delivery service. That’s okay.

You can still set your laundromat apart with budget-friendly additions, such as:

Using soothing paint colors to make the interior pleasant
Appropriately planning the machines, carts, and folding tables for the size of your business
Maintaining your equipment to boost your reputation for dependability
Posting clear signage with operating tips and instructions and your store hours
Maintaining a tidy, clean store (with extra-clean bathrooms)
Keeping th eparking lot well-lit and accessible
Stocking inexpensive entertainment, such as coloring books, crayones, and magazines

As you begin to make money, you can invest in other ways to add value to your coin laundry. The point is to give your customers a little something extra that makes them choose you over a competitor, even from the start.

5. Invest in Equipment

Outdated washers and dryers can be one of the biggest weaknesses of a laundry business, impacting their turns, utility costs, and customer satisfaction. That’s why a laundromat startup needs to focus on its equipment selection and maintenance to set itself up for success well beyond opening day. A facility with shiny new washing machines and dryers looks clean and attractive, helping get customers in the door. When the equipment features custom wash cycles, mobile payment options, and ozone wash systems, both the business and its clientele benefit.

If you need a guide for your laundromat startup, speak to one of WSD's vended laundry specialists. We’re happy to sit down and walk you through key decisions based on our years of experience in the industry. There’s a reason we have so many success stories from laundromat owners, and we’d be honored to tell yours next. Contact our team today and get started.