How much does it cost to open a laundromat?
Are you curious about investing in a laundromat but looking for expert advice on the costs associated with this business venture? You've come to the right place! Coin-O-Matic has been in business for over 100 years, and we have the industry expertise and experience to guide your business venture!
Let's look at the numbers to see how much it costs to open a laundromat!
Cost to Open a New Laundromat
The start-up costs for opening a brand-new laundromat are substantial. Generally, we advise business owners to budget for at least $200-$300+ per square foot for laundry equipment, amenities, and the buildout of an existing vanilla box. Typical laundromats range from 2,000 to over 5,000 square feet, costing $400,000 to over $1,000,000 all in. There are variables that go into these equations, including construction abnormalities, finishings, amenities, and municipal-related expenses such as water, sewer tap fees, etc.
PRO TIP: The big money made from a laundromat is on its sales and operational efficiency rather than its investment cost. Remember, your money will be made on sales over time, not the initial investment in the business. Invest smart initially to make money over the entire lifespan of your equipment! Focus on the future return on investment, not your upfront costs.
Cost to Purchase an Existing Laundromat
Investing in an existing laundromat? Our general rule of thumb when it comes to investing in an existing laundromat is that it is worth four to six times the annual net revenue. Of course, the age and condition of the laundry equipment, the location, and any associated real estate leases all come into play here, as does the accuracy of the current businesses' financial record keeping.
PRO TIP: DO NOT purchase an existing laundromat without the help of professionals like the staff from Coin-O-Matic. We will help you sort through fact and fiction. No need to risk the chance of paying too much for a laundromat and then have invested more money to replace outdated laundry equipment and related ancillary items. You also need to pay a whole lot of attention to the real estate lease agreement. Details like this can make or break your success, and a qualified consultant can help.
If you are interested in opening your own coin-operated laundromat, contact Coin-O-Matic's Laundromat Investment Specialists today! If you have more questions about the costs of opening a laundromat, you can also reach us at 1-708-377-3408.