If you’re thinking of building a laundromat or investing in a laundromat franchise, you’re probably weighing the pros and cons, seeing if it’s a promising venture. Fortunately, the laundry industry is a great one that holds a lot of benefits, but of course, it’s still important to know what you’re up against. It’s not just about considering rent, laundry equipment, and commercial laundry parts from places like Laundry Replacement Parts!
With that said, read on as we talk about the pros and cons of owning a laundromat!
The Pros of Owning a Laundromat
Here are the advantages owning a laundromat can give:
- High Return of Investment
The laundry industry is known to have a 20-35% return on investment and five-year survival rate, which is up to double that of an average new startup. Plus, there won’t be any inventory management needed; compared to food or retail startups, there aren’t significant requirements for stocking and ordering items other than dexter laundry parts as required.
- Extra Income
With many different customers doing business in your laundromat, staying for up to two to three hours to complete the laundry process, you can add an extra income source. Upgrade the customer experience and earn more by providing additional like food, beverages, WiFi, and other forms of entertainment. Not only does this help maintain excellent customer satisfaction, but the laundromat has a unique selling point amid the competition.
Other than extra income, there is unlimited growth potential, either operating it on a small scale in one location or at a larger scale, such as having multiple branches in a city or region.
- Easy to Manage
Technological advancements, such as laundromat management systems, make it easier to manage the business. Furthermore, owners can install cloud-based monitoring and coinless payment options, reducing the need for any onsite management. All these new technologies can simplify record-keeping while enhancing accuracy.
Plus, as a laundromat owner, you get to set your business’ operation hours to have more flexibility with your work-life balance.
The Cons of Owning a Laundromat
On the other hand, here are what to watch out for when owning a laundromat:
- Startup Costs
Like other small and new businesses, the initial startup costs might be too significant. You’ll need to select a location and decide whether you need to rent or purchase it, for starters. Then you will need to consider the laundry equipment, along with water heaters, accessories, and supplies. All in all, a laundromat can cost between $200,000 to over $1,000,000, depending on the business’ size and location.
Depending on the laundromat’s location, along with the neighborhood demographics, there are probably other laundromats in your area. That’s why future business owners need to research and learn more about the local competition, creating unique selling points to stand out. If not, then your new laundromat may end up being ignored as people would like to go to their usual laundromat.
Wrapping It Up
Now that you’re more familiar with what to expect when owning a laundromat, you know what’s next for your ventures!