7 Elements of a Profitable Laundromat

 

Among small businesses, a coin laundry business stands out as a steady and lucrative option. With an ever-present need for clean clothes and linens, along with a sizable population that lives in multi-family residential buildings with limited laundry facilities, there will always be a market for retail laundromat services. And, as we discovered during the recent pandemic, laundromats enjoy special status as essential businesses.

However, there’s no guarantee of success in the vended laundry industry. A profitable laundromat business requires careful planning, strategic decision-making, and ongoing management. Whether you’re considering opening a new laundromat or looking to improve an existing one, understanding the key elements that contribute to profitability is critical. Below are a few of the elements we've found that help laundry businesses stand out from competitors and turn a nice profit.

1. Choose a Strategic Location

Your coin laundry must be located in a highly visible in a busy retail area, adjacent to densely populated multi-family housing with plentiful parking. This will ensure a ready supply of potential customers.

 

2. Install Modern Commercial Laundry Equipment

Offer customers use of attractive, easy-to-use, high efficiency commercial washers and dryers. These late model machines not only appeal to customers but they also have lower utility costs which is important to your business' bottom line. 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
• Include both card- and coin-operated washer and dryers to attract different demographics

 

3. Provide a Clean, Bright, and Safe Laundry Facility

"Clean, Bright, and Safe" has long been a mantra in the vended laundry industry—for good reason. Customers must feel welcome, comfortable, and safe in your laundromat. Otherwise, they won't come back. Dark, dingy interiors with blind corners won't cut it. If you're taking over an old laundromat, you will have to renovate it accordingly. Make sure your building has working security cameras, alarm systems, and good lighting to deter theft and vandalism. Credit and smart card vending systems also reduce the amount of cash sitting around your laundromat, making it less of a target and improving safety.

 

4. Provide Excellent Customer Service

Good customer service starts with a well-trained staff who understand the equipment, your business' values, and how to provide a good laundry experience. Many laundromats operate with little to no staff, which can be frustrating when the customer experiences an issue, causing them to turn elsewhere for their laundry needs. How you handle those issues, including giving refunds when a machine malfunctions, what to do when someone is injured, etc. is key: how you respond to a negative situation can make or break your business. 

 

5. Provide "Must-Have" Amenities

Laundromat customers have come to expect free Wi-Fi, entertainment (TV-video or music), vending machines stocked with laundry supplies and snacks, and more. If you don't offer these essentials, customers are likely to take their business to the nearest competitor.

 

6. Offer Value-Added Services

Depending on the local market, laundromat owners should consider offering increasingly common value-added services such as wash-and-fold and pick-up and delivery. These high margin services can bolster your bottom line while attracting a broader set of customers.

 

7. Attention to Detail

Clearly, the ability to pay 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).

 

Partner with Martin-Ray Laundry Systems

The experts at Martin-Ray Laundry Systems have experience helping laundromats across Colorado, New Mexico, Wyoming, West Texas, and western Nebraska find success. Contact us today to learn how we can work with you to optimize your vended laundry business for maximum profitability.