When deciding on what type of business to have, many people prefer to choose one with passive income options that allow them to work smarter, not harder. And one way to do this is with a coin-operated laundromat. That is because this type of business can be run seven days a week with or without an attendant, which increases its potential earnings significantly. Also, its services are constantly in demand since everyone always needs to wash their clothes.
There are two different coin-operated laundromat options that a person can choose from though. The first one is a laundromat that is already established. It is more of a turn-key operation that can easily be taken over. But since it is rare to find this type for sale, most people have to choose the second option, which is a laundromat that has to be started from scratch. This route isn’t cheap, so it helps to know the following considerations in how to calculate its start up costs:
Building Costs
There are two choices in the building that is to be used. A person can either lease one or buy one of their own. Usually, it is necessary to buy one because of all the special plumbing and hook-ups that have to be installed. The building has to be able to fit quite a few industrial washing machines and dryers, so it needs to be fairly sizable and suitable for renovations.
And the land outside the building is just as important because it needs to have enough space for all the customers to park. That means, it could cost at least 100,000 dollars or more to buy the best property.
Washers and Dryers
The next major expense to account for in a coin-operated laundry is all the washers and dryers. To have the most profit, it usually takes a minimum of 28 of each of them. Industrial washing machines and dryers cost more than those meant for the home because they are designed for commercial use. So it is best to expect to pay a minimum of 500 dollars for each of them.
If any of the washers are front-loading, they can be closer to 1,000 dollars or more. And remember, a special large-capacity water heater has to be purchased too if the washing machines will be offering hot-water cycles for the customer’s clothes.
Accessories
Customers appreciate the little things that make doing laundry a little easier, like tables to fold their baskets of laundry on and carts to transport their clothes from the washer to the dryer. The tables are about 100 dollars each since they are fairly large. And the carts are roughly 50 dollars a piece. Other accessories that are helpful include a change machine, soda machine, and snack machine.
The prices of these items vary. Sometimes, money can be saved by contacting local vendors to see if they would be interested in setting up some of the machines for free. This takes away the potential income that could be derived from the machines though.
Utilities
The water and electric bills for a laundromat with a coin-operated washing machine for sale can reach the hundreds each month. Their total expected cost depends on what the local rates are though. You might want to consider the brand new Giant C range from LG. They are perfect for any commercial laundry and they are well known for their efficiency in water and energy usage.
Most municipalities require that their service technicians be hired for the initial installation of the water and electric connections. So the cost of their fees for these services has to be included as well.
It is also best to account for a monthly cable or satellite bill because customers enjoy being able to watch television while they are waiting for their clothes to be done. Of course, if cable is to be offered, there will be an additional expense of purchasing a television and chairs for a seating area. Some laundromats may also want wireless internet services for both the customers and operating their office computers.
Upkeep Products
The inside and outside of laundromats and coin laundry machines have to be cleaned and maintained regularly, so upkeep products also have to be purchased. This expense isn’t as high as the others, but it is best to allocate about 100 dollars or so for buying mops, brooms, sanitizing products, wet-floor signs, and, of course, laundry detergent and bleach. Some sponges, buckets, trash cans, and dusting clothes are also helpful.