Laundromats are a good business venture with a good return of investment and demand. After all, doing laundry is a necessity! So, if you have considered getting into the laundry industry, you’re most likely also looking into the expenses involved in operating one.
We aren’t talking about the startup costs like the business permits, equipment, location security deposits, or commercial laundry parts from places like Laundry Replacement Parts. We’re talking about the ongoing costs and how much it takes to continue operations after investing in the laundromat.
There’s no exact answer to that, as the monthly cost of a laundromat would vary from state to state and business to business. But with a bit of digging and calculations, you can find a more specific figure to answer your questions. Read on to learn about the costs to consider and get more gist.
The Average Monthly Costs of Laundromat Operations
Laundromats would usually have fewer costly recurring expenses compared to other businesses, such as utilities, rent, dexter laundry parts, among other factors. Even then, potential buyers or investors must be aware of them.
The lease is considered as the highest monthly expense, with potential laundromat owners looking for a lease term best suited to the industry’s standards. These are the other ongoing monthly expenses a laundromat would incur:
- Rental or lease costs
- Employee payroll and benefits
- Miscellaneous supplies, such as the bathroom, cleaning, and vending supplies
This does not include the equipment and necessary maintenance checks, as these aren’t always necessary to be factored in monthly. Expect to shell out around $4,000-$8,500 a month to start. While this seems like a lot, you’ll be happy to know that many established laundromat owners still report an average of $5,000-$7,000 of net profit monthly!
That said, those numbers are still a wide range, so it’s best to conduct research based on the factors that affect the average laundromat cost.
The location of your business significantly affects your laundromat’s cost per month, as rent and utilities are the most significant contributors. For instance, rent, insurance, and utilities may be higher in some states but lower in others.
Store Size and Operating Hours
The larger your laundromat and the longer the operating hours are, the higher your rent and utility costs will be. But that also means more room for customers and better service because of the 24/7 feature.
Customers feel more comfortable doing their laundry in laundromats with staff, though more employees mean more monthly expenses. Your expenses must account for your future employees’ wages and benefits
Add-ons include other income opportunities, such as adding vending machines or other customer perks to give your laundromat the edge. These should go to your monthly expenses considered investments for more satisfied customers!
Wrapping It Up
Now that you’re more aware of how much it takes to operate a laundromat continuously, take these numbers into account when making your business plan.