How To Make A Profitable Laundromat In Florida
Have you ever wanted to start a business that makes huge profits? Well, a laundromat is the business for you. While they require a higher initial investment, they are in a unique category that allows business owners to receive a high ROI with low overhead and labor costs. Continue reading to see what it takes to operate a successful, modern laundromat in Florida and how much profit there is to be made.
Benefits Of Owning A Laundromat
- Your business is a necessity
- Not affected by seasonality
- Repeat customers
- Low labor cost
- Low risk of failure
Run Down Of The Investment
The average initial investment for a laundromat starts at $200,000. This will increase with added laundry machines and equipment, number of square feet of the facility, and the types of machines. The more you add to a customer’s experience, the more you will see back in returns.
It is recommended to have a minimum of 20 washers and 20 dryers.
The $200,000 is just an estimate and varies largely on preference and other factors. Here are some other factors that will affect your initial investment.
- Business entity fees- cost around $200-$1,000
- Buying vs building a laundromat- a new build will cost around $200,000-$500,000
- Municipal fees- this varies largely by location and is priced per washer
- Cost of machines- varies by manufacturer
- Card readers- cost around $40,000-$80,000
- Water heating system- cost varies from $15,000-$40,000 depending on the size of the location
- Supplies- laundry carts cost about $75 each and you will want at least 10
- Down Payment- banks generally ask for 20-30% down payment
Low Labor Cost
Since laundromats are self-service the number of staff needed is extremely low. The savings on labor is extremely unique to this business and is a big money saver. Most laundromats function perfectly with just one staff member at a time. This staff member can also function as an in-house laundry service member. This is a common option given by most laundromats where people can bring their clothes and have them washed, dried, and folded by a staff member for an additional fee.
Revenue Generation Ideas
Operating a laundromat is advantageous because most people stay in the location while their clothes are being washed. This allows the business about one to three hours to increase revenue while they’re in the store. Make their wait more enjoyable and increase revenue with these options:
- Arcade games
- Food and drink vending machines
Add-ons For Additional Profit Generation:
- Laundry detergent, fabric softener, and dryer sheet vending machines
- Special wash/dry cycles
- In-house staff to wash and fold people’s laundry
- Drop off laundry services
- Amazon pickup boxes
Differentiate Your Laundromat With These Features:
Laundromats are similar to car washes in a lot of ways, the main one being they’re both chores and they both require people to go to a business to get the task done. Instead of being somewhere they have to go to, be a destination they want to go to. Make the experience more desirable and convenient by offering these features:
- Free Wi-Fi
- Business stations for working professionals
- Reloadable cards to use on the machines instead of coins
- Kids play areas
Here’s the big question, “How much will I make?”.
Laundromats are high ROI (return on investment) businesses netting about 20-35%. Other businesses are a 15% ROI on the high end and 10% is common and considered a good ROI.
So let’s do the math if you spend $200,000 to open the business you will receive $40,000-$75,000 in profit.
Why Is Florida A Good Place For A Laundromat?
Florida is hot and humid most of the year. This means more sweaty clothes and more frequent trips to the laundromat.
The heat also means there are visitors all year round. This is not the repeat customer you’re searching for but none-the-less it has the potential to bring in more business.
Owning a coin-operated laundry business in Florida would be extremely profitable. Not only is it hot but there are many cities with older buildings that do not have the capability to hook up washers and dryers.
Then there are those who have the ability to hook up a washer and dryer, but find that it is more cost-effective to take their clothes to a laundromat instead of investing in their own washer and dryer.
Picking The Right Location
Choosing the location of your laundromat is crucial. Keep in mind the factors listed above when choosing your location. The rent to own percentage should be 35% renters in the area you choose. Placing a laundromat in a suburb with newly constructed houses may not be the best decision, but a densely populated area with older homes and buildings would be.
More specifically a shopping plaza is a great location for a laundromat. Since people are there doing other chores it makes it convenient and accessible if your customer doesn’t own a car.
Consider laundromats already in the area you are choosing. Competition can negatively affect your business so finding an area that doesn’t have many laundromats or that is up-and-coming with a large rental population would be ideal.
There is also the option of finding a struggling laundromat and giving it a facelift if you’re a go-getter that’s willing to put in the time and money. This would be beneficial for you because people would have already frequented that location and would be even more willing to come back to a nicer one.
What Should Your Laundromat Look Like?
You will want your laundromat to be inviting. Clean signage and an immediate street appeal are crucial. You will notice a lot of laundromats nowadays are large with colorful signs. They look like an adult playground at first glance.
Parking is also very important. There should be ample spaces conveniently located near the entrance.
Making And Maintaining Profits
Cleanliness, friendly staff, working machines, and extra services offered are ways to gain repeat customers. People are going to a laundromat to clean their clothes, so if it’s dirty that’s the fastest way to drive away business.
According to Brian Wallace of the Coin Laundry Association laundromats that follow the things listed above should see 35% profit margins.
Hours Of Operation
Hours of operation is an important factor to consider that will change based on location, customer base, and your preference. For example, if you’re in a college town it would be best to keep your facility open 24 hours a day since their schedules are often variable.
Saturday and Sunday have the highest foot traffic in laundromats so definitely be open those days.
If you’re not going to be open 24 hours a day it’s best to have an easily memorizable schedule that opens early in the morning and stays open till late at night. A 6 a.m. to 11 p.m. schedule is how most laundromats operate.
As mentioned above it is critical to have all your machines running at tip-top shape, not only for the customer’s convenience but for your profits. If a washer or dryer is out of service that’s money you’re not making. When you buy, lease or rent with Commercial Laundries of West Florida we back all of our products, therefore when something needs to be serviced we come and repair it.
While the cost to create a laundromat may be high we are here to help you with financing options that help you generate profit quickly.
At Commercial Laundries of West Florida were committed to helping you find the best quality commercial laundry equipment in Florida. We have multiple commercial laundry locations across the state in Tampa, Orlando, and Brevard. Our seasoned staff is ready to listen to your needs and provide the best recommendations from top quality brands like Huebsch, Maytag, Whirlpool, and Speed Queen. So whether you are looking to rent, lease, or buy commercial laundry equipment we are here to help. Don’t worry about installation, we have that covered too.
Contact us online or by phone at 1-800-876-1477.