7 Elements of a Profitable Laundromat

 

Among small businesses, laundromats stand out for their steady revenue potential and profitable business models. But not every coin laundry has what it takes to turn a profit, even with this industry’s strong demand. While you might know the importance of careful planning, strategic decision-making, and ongoing management, those aren’t the only factors for success.

Whether an existing or new laundromat is profitable depends most on the location, equipment, facility features, customer service, and oversight. Review how each of these elements can change the business’s trajectory and determine where your coin laundry startup costs and investments in improvements can make the biggest impact.

Strategies to Improve Laundry Profits At-a-Glance

A laundromat can be a very good business to own because there are many ways to improve its profitability to make the venture successful. We’ve identified the elements below as critical to startup or improvement planning. Use this quick reference guide to get started and find even more tips below.

 

Element	Why It Matters	Solution/Strategy
A Strategic Location	Drives steady foot traffic and offers customers convenience	High visibility near dense housing & businesses
New Laundry Equipment	Attracts customers, lowers utility bills, and reduces downtime	Energy-efficient machines with varied capacities and payment options
Good Facility Condition	Comfort and safety keep customers coming back	Upgrade lighting, install cameras, and keep the interior organized and safe
Customer Service	Retains business & solves problems	Train staff thoroughly and be responsive to customer needs
Amenities	Enhances customer experience and satisfaction	At a minimum, add Wi-Fi and vending machines
Value-Added Services	Boosts revenue and attracts customers	Test wash-and-fold or other services to see where to invest
Management	Identifying and fixing issues early can drive profit and RIO	Adopt smart machines to help you monitor use and costs

 

1. A Strategic Location

If you don’t carefully select a coin laundry location, poor sales due to low foot traffic won’t be the only impact on your store’s profits. The location can also influence operational costs and expenses, like rent and labor. 

Leasing in an undesirable location can mean you need to reduce wash prices or offer unsustainable promotions to attract business. You might also have to pay top dollar to recruit reliable staff, further impacting your bottom line.

An ideal property will be in a highly visible, busy retail area, adjacent to densely populated multi-family housing with plentiful parking. If this sounds like a lot of qualities, it is—but achieving a good balance of these elements can go a long way. Consider spaces in strip malls and shopping centers with attractive anchor stores, or mixed-use high-rises or new developments.

 2. Modern Commercial Laundry Equipment

Attractive, easy-to-use, high-efficiency commercial washers and dryers are huge selling points for customers. You’re likely competing with several well-equipped, modern laundromats, and if your store is showing the signs that it’s time to upgrade (outdated, slow, or inefficient machines), it could directly impact your profits. Investing in new machines can help attract customers plus lower utility costs, and improve your coin laundry profits. Keep these tips in mind when planning your equipment purchases or upgrades:

• Work with a brand-name manufacturer whose machines are known for their durability to decrease the likelihood of breakdowns, which will cut into your profitability.
• Offer a variety of machine sizes to serve a diverse customer base—ask an expert distributor for advice!

Include card-operated washers and dryers to attract renters and students who prefer cashless payments, and others looking for extra convenience.

 3. A Clean, Bright, and Safe Laundry Facility

"Clean, Bright, and Safe" has long been a mantra in the vended laundry industry—for good reason. If customers don't feel welcome, comfortable, and secure while using your laundromat, they won't come back. If you're taking over an older store, you may need to do more than freshen the paint to create the inviting, safe atmosphere customers desire. Consider how to renovate the laundromat design to deter theft and vandalism, and minimize injuries from crowded, cluttered spaces. Some features worth investing in include:

• Security cameras, alarm systems, and good lighting 
• Credit and smart card vending systems 
• Cashless washers and dryers
• Janitorial supplies or staff to maintain cleanliness
• Good lighting, inside and out 

4. Excellent Customer Service

Many laundromats operate with little to no staff, which can be frustrating for customers when issues arise. Stores with undertrained or inexperienced staff can also cause clientele to take their business to a competitor. 

Invest time and resources to develop a well-trained staff who understand the equipment, your brand values, and how to meet patrons’ basic needs—with a smile. Having friendly, responsive staff available to answer questions, monitor amenities, and make your business a standout in the community, and keep your laundromat profitable.  

5. Essential Amenities

Laundromat customers expect more than washers and dryers, and can be disappointed when their chosen store doesn’t offer any extras for entertainment or convenience. Amenities like free Wi-Fi, seating areas, television, and vending machines stocked with laundry supplies and snacks are no longer ‘nice-to-haves.’ If you don't offer these essentials, customers may feel frustrated and reconsider where they choose to do their laundry. A well-appointed laundromat signals to customers that you value their time and comfort, and makes you more competitive in the local market. 

6. Offer Value-Added Services

Services, such as wash-and-fold and pick-up and delivery, can be easy ways to help your coin laundry business profit from additional revenue streams and boost customer satisfaction. Not only can these services maximize machine usage during slow hours, but they also help attract a broader set of customers. When higher-income families, professionals, and small businesses are willing to pay a premium for time-saving services, your laundromat can benefit from recurring revenue opportunities. 

7. Managing Metrics

Paying close attention to details is an overarching theme in running a successful laundromat. Astute financial management is key to achieving a positive Return on Investment (ROI), but you should also consider operational and customer-focused metrics. Here are some areas where oversight can help you understand how to make a laundromat more profitable:

• Operational: Tracking machine downtime, maintenance intervals, utility usage per load, and cycle times can help you identify machine issues to maximize resources and reduce profit loss.
• Financial: Analyzing metrics like cost per load versus revenue per load can help you fine-tune pricing and define a break-even point to gear your business goals toward profitability. 

Customer: Monitoring retention and repeat visit rates and review scores can signal whether you’re meeting customers’ needs or if improvements are necessary.

 

Partner with Martin-Ray Laundry Systems

Now that you know how to make a laundromat more profitable, get help executing your plans from Martin-Ray Laundry Systems. Our specialists have experience helping laundromats across Colorado, New Mexico, Wyoming, West Texas, and western Nebraska find success. Contact us today to learn how to optimize your coin laundry business for maximum profitability.