How Much Money Can You Make Owning a Laundromat?

Owning a laundromat can be a stable and lucrative business opportunity. It’s a venture that requires relatively low management, provides steady income and caters to an essential, ongoing need. But how much money can you actually make?

The answer depends on several key factors, like your market, pricing and turns per day. But you can size it fast: Estimate monthly revenue from machine cycles and any services, then subtract rent, utilities, maintenance, labor and financing to get to your laundromat business profit margin. If you’re weighing the startup cost for a laundromat or asking how much it costs to open a laundry in your area, start with the basics below—we’ll help you uncover what drives revenue, what drives costs and how location changes both.

Understanding the Basics

The first step to understanding your laundromat business profit margin is to grasp the basic operational model.

You’ll want to consider:

• One-time costs: Site build-out, permits, equipment, installation, signage
• Ongoing costs: Rent/lease, utilities (water, gas, electricity), maintenance/repairs, insurance, cleaning/supplies
• Optional labor: If you offer attended services, like wash-and-fold or extended hours
• Staffing: Stores can be unattended, partially attended or fully attended—each option affects both revenue and costs At its core, a laundromat requires an initial investment in real estate, equipment and operational setup, followed by ongoing expenses such as utilities, maintenance and stocking of amenities.

What Are Average Earnings for a Laundromat?

The potential earnings of a laundromat can vary widely based on location, size, foot traffic and operational efficiency. On average, a well-run laundromat can generate an annual gross income ranging from $30,000 to $300,000 or more. The key to achieving higher earnings lies in optimizing costs and prioritizing customer satisfaction.

Factors Influencing Income

• Location: Placing your laundromat in a densely populated area with limited residential laundry facilities can significantly boost your income. Urban areas or neighborhoods with a high concentration of rental properties typically have a higher demand for laundromat services.
• Equipment Efficiency: Investing in durable, energy-efficient equipment like Huebsch® offers supports reliable operations and long-term performance. Modern and simple to use machines attract customers and ensure timely turnover.
• Additional Services: Offering additional services such as wash-and-fold, dry cleaning or vending machines and Wi-Fi can provide supplementary income streams. These services cater to customer convenience.
• Exceptional Customer Experience: A clean, well-maintained, and safe environment attracts customers. Consistent uptime and service quality fosters customer loyalty and word-of-mouth referrals.
• Hours and Mix: Right-size machine capacities and set hours that match your neighborhood’s local routines.

What Are Operating Costs for Laundromats?

Certain expenses will consistently impact your profit margins:

• Utilities: Water, electricity, and natural gas expenses are significant, but investing in energy-efficient machines can help mitigate these costs.
• Maintenance and Repair: Regular upkeep of the equipment ensures longevity and reliability.
• Lease and Insurance: Rent and insurance costs vary by location and scale of operations but are crucial fixed costs that impact net profit.
• Labor (if your location needs it): Staffing adds costs but enables high-margin services like wash-and-fold or extended hours.
• Financing: Monthly payments and equipment maintenance can affect your cashflow and paycheck timelines.

Strategies to Expand Earning Potential

• Price Smart: Evaluate and adjust pricing structures according to market demand, fluctuations in utilities, and competition without compromising customer loyalty.
• Use Laundromat Management Software: Introducing technologies such as mobile- or app-based payments, machine availability tracking and remote price updates can enhance customer convenience and satisfaction. Huebsch Command™ laundromat management software offers an owner portal for easy management, customer app for added convenience, CRM to drive customer engagement and more!
• Build Local Partnerships: Collaborating with local institutions like colleges, gyms and apartment complexes, short-term or vacation rentals and restaurants can help create a steady stream of clientele.
• Promotions and Loyalty: Implementing off-peak specials, bundled options (e.g., wash- and-fold by weight) and loyalty programs can drive traffic and increase profits.
• Balance Your Mix: Offer machine sizes that match local laundry load needs—like large- capacity for bedding—to improve your turns per day.

Owning a laundromat can be a rewarding and profitable business when managed effectively. By understanding the factors that influence income and strategically managing costs, you can create a thriving business model. From choosing your location to identifying which laundromat management software will be most beneficial for you, the Huebsch team is here to help!