According to the Coin Laundry Association, coin laundries are able to generate anywhere between $15,000 to $300,000 of cash flow in a year. The numbers are surprising for this unassuming sector, but they make sense–everyone needs to wash their clothes.
Coin laundries can be seen in practically every American neighborhood, but they perform best in areas with a high population of renters. With a recession-proof track record, vended laundry is an attractive opportunity for investors who want financial stability with operational simplicity.
In this article, David Shulick takes coin laundry businesses for a spin, enlightening potential investors on the benefits of clean clothes and tidy profits.
Hygiene is a Basic Need
There are many businesses with peaks and valleys depending on the season, or are significantly impacted by economic factors. However, like many basic human needs, the demand for clean clothes remains stable regardless of current economic circumstances.
In fact, laundry services could experience an uptick in usage during dire economic situations where more people are forced to rent and/or choose more affordable services in response to tightening budgets.
Predictable Cash Flow
Cash flow issues are the reason why 82% of small businesses fail. Meanwhile, a coin laundry is a pay-as-you-go operation, meaning monthly cash flow is easily predictable once enough time has passed to gather data.
The simplicity of the business model allows owners to strategize for success more effectively as compared to other business ventures. This simplicity extends itself to the operations side as well.
Simplicity of Operations
Aside from the knowledge of how to troubleshoot a malfunctioning washer or dryer, there’s minimal know-how required to get a coin laundry business running compared to other businesses.
Because a coin laundry requires minimal supervision, an owner can allocate their focus on growing other sources of income while at the location, or even invest in tools that allow them to monitor their business without being physically present.
Minimal Inventory or Employees Needed
There’s very little physical inventory needed in a coin laundry, and the few that it does require like detergent, fabric softener, and dryer sheets aren’t perishable. This streamlined inventory means lower operational costs with less risk of waste.
As coin laundries are self-service, the customers are the ones washing and drying their clothes. The self-service nature means there is minimal need to hire a lot of employees, and the extra help can quickly learn to manage the location with simple accounting and basic property and equipment maintenance.
Conclusion
For the savvy investor, clean clothes represent not just personal hygiene, but also a bright future of financial stability. By entering the world of coin laundries, aspiring business owners can build a recession-proof asset that can be passed down to the next generation.
As our cycle around the lucrative world of vended laundry comes to an end, one thing is clear: this is not the average commercial real estate investment. With the right location, machinery, and maintenance solutions, a coin laundry can be financially rewarding while only requiring minimal involvement and a bit of smart decision-making from the owner.
