Author: David Shulick

Self-service laundromats have undergone an image change in recent years. Instead of run-down places to be endured, their popularity is on the rise.

Setting up a vended laundry business is simple, and although helpful, previous experience in the sector isn’t required to be successful. But what aspiring laundromat owners should consider is the ideal location for their store in a mature market, and any other additional services that they can provide to increase revenue.

David Shulick provides below some reasons why this business is so profitable, and how best to set up a laundry business for success.

Selling Points of a Vended Laundry Business

One of the main factors that make opening a laundromat so appealing is the fact that it is very easy to do. Maintenance costs can be low, and some people find that they learn how to repair the machines quite quickly. Labor costs are negligible, and aside from the machines, there is no store inventory to manage.

Laundromats are also a safe option. Unlike other businesses, they don’t see any seasonal declines in usage, as people will always need a way to wash and dry their clothes. According to a study by the Coin Laundry Association, over the span of 5 years, coin-operated laundry businesses had a 95% success rate.

Due to lower labor costs and requirements to operate a laundromat, business owners can dedicate less time to their stores. Many owners choose to see the enterprise as a part-time venture, allowing them to dedicate time to other projects. On the flip side, those with more than one location tend to devote themselves to the laundry business full-time.

Setting up a Laundromat

When looking to set up a coin-operated laundry business, a number of factors should be considered to ensure the best return on the investment.

Location

Entrepreneurs should look for a suitable location for their laundromat that ensures that they will have a reliable customer base. Locations that are surrounded by rental or student accommodation, apartment blocks, or low-income areas see more traffic. Often these types of properties don’t have the infrastructure to support a washer or dryer, or they have no outside space for a clothesline.

Potential laundry business owners should make sure that the unit they choose is at least 2,500 square feet in size. Accessibility features, such as easy access and nearby parking can also entice customers.

Payment Options

The most common type of laundromat setup uses coin-operated machines. However, there has been an increase in the number of cashless machines. Although more costly to set up, it can help to futureproof the business as people start to carry less cash with them and provide a hygienic payment option. Some businesses have a combination of coin and card-operated equipment to offer customers the choice.

Opening Times

Although laundromats don’t see seasonal drops in customers, there are certain times in the day when they are used more often than most.

Common times for people to wash their laundry are after work, or on a weekend, so staffing around this time is crucial to offer assistance and services. If the laundromat doesn’t have any additional services, they could facilitate this by operating 24/7.

Initial Expenditure and Licensing

The initial cost for starting in the vended laundry business varies depending upon whether an existing laundromat is being taken over, or a retail unit is being purposefully renovated into one. For an average size laundromat with no extra services or features, estimates can range between $200,000 and $500,000.

New laundromats will also have to consider the cost of permits and licenses. These include health and safety licenses, fire department permits, and sewer connection fees.

Potential Earnings from a Laundry Business

Despite the initial expenditure, laundromats can start to see a return on investment quite quickly.

One store’s annual gross income might range from $30,000 to $1 million, with the running costs and expenses ranging between 65 and 115 percent of the gross profits. For example, a laundry business that is turning over $50,000 a year nets $17,500 at best and loses $7,500 in the worst-case scenario.

As technology continues to advance, new and innovative laundry machines and dry-cleaning equipment have made the industry more competitive. The added pressure is pushing dry cleaners to differentiate their services and offer competitive pricing. However, by expanding their facilities with vended laundry, dry cleaners can increase business and overcome market pressures.

By adding vended laundry units to their existing storefronts, dry cleaners can attract more foot traffic and generate new customers while tapping into a revenue stream that can offset the cost of traditional dry cleaning. Furthermore, David Shulick says that expanding into the vended laundry industry can improve customer loyalty thanks to the added convenience and affordability of DIY laundry.

Vended Laundries Attract Customers Seeking Convenience

Dry cleaners that offer vended laundry services can benefit from the increased foot traffic and customer base that these units attract. Customers are always looking for new ways to save time and vended laundry provides a convenient solution for those who don’t have the time (or desire) to wash their clothes at home.

What’s more, customers can use vended laundry units at any time of day or night, making them a convenient option for those with busy schedules. And, thanks to the 24/7 availability of vended laundry, dry cleaners can generate revenue even when their storefront is closed.

Vended Laundry is an Affordable Option for Customers

In addition to being convenient, vended laundry is also an affordable option for customers. The DIY nature of vended laundry means that customers can save money on laundry services, which can entice them to use a dry cleaner’s vended laundry units over a more traditional laundromat.

Moreover, the lower prices associated with vended laundry can help dry cleaners attract price-conscious customers who may not have considered using their services in the past.

Vended Laundry Units Can Offset the Cost of Traditional Dry-Cleaning

By expanding their business to include vended laundry, dry cleaners can offset the cost of traditional dry cleaning. The initial investment in vended laundry units may be higher than the cost of traditional laundry machines, but the added revenue can quickly make up for the difference.

Furthermore, the lower cost of operating vended laundry units means that dry cleaners can pass the savings on to their customers, making their services even more competitive.

Expanding Into Vended Laundry Can Improve Customer Loyalty

In addition to generating new customers and revenue, expanding into vended laundry can also improve customer loyalty. The added convenience of vended laundry units can make dry cleaners’ existing customers even more likely to use their services. What’s more, the increased foot traffic that vended laundry units attract can lead to more customers using the dry cleaner’s traditional services.

Final Thoughts

The laundry industry is becoming increasingly competitive, and dry cleaners are feeling the pressure to differentiate their services. However, by expanding their business to include vended laundry, dry cleaners can increase business, generate new customers, and offset the cost of traditional dry cleaning. Thanks to the convenience and affordability of vended laundry, dry cleaners can improve customer loyalty and attract price-conscious customers.

Building on the momentum of two successful events spotlighting women in vended laundry, the Coin Laundry Association (CLA) has assembled a task force dedicated to empowering women in the industry. One of the primary goals of this task force was to develop initiatives designed to address the issues most important to women who own or work in laundromats.

At their first meeting last September, the task force—which comprises a diverse group of women from across the country—came up with the following two initiatives for the CLA to implement as part of its goal to make the industry more fair and accessible for all. Below, David Shulick, a vended laundry industry leader, discusses the programs being implemented for women in the industry.

Building Leadership and Confidence

The first initiative is to build leadership skills and confidence among women in the laundry industry through targeted training and coaching programs. The link between self-confidence and leadership ability is well-researched, and the task force believes that finding tangible ways to help women gain industry confidence will expand the number of female leaders at all levels of the industry.

The task force urged the CLA to provide virtual or in-person leadership training designed to help female entrepreneurs find their voice and gain new levels of self-assurance. Additionally, the group suggested implementing mentorship programs that pair established women laundromat owners with newcomers to the industry. These programs would incorporate male role models to help open new channels of communication and mentoring.

Changing the Narrative

The second initiative the task force generated is to change the way women in the industry are perceived. Despite the fact that there are more women in the workforce than men these days, a 2019 Gallup poll found that women still take on more than half the share of domestic upkeep in most households, including laundry. Advertisements and popular media reinforce the stereotype that laundry is a woman’s burden and a thankless chore.

The task force wants to empower women in the industry by switching the narrative to focus on female leaders, entrepreneurs, and business owners. The CLA can accomplish this by featuring female business owners in their publications, recruiting more women into leadership roles within the vended laundry industry, and providing spaces where female entrepreneurs can drive discussions with each other.

In Celebration of National Women’s Small Business Month

October is the month in which female small business owners are celebrated throughout the country, so these initiatives could not have come at a more opportune moment. Using this framework as a guide, the CLA can begin to create an environment where female leaders and business owners are surrounded and uplifted by their peers. Altering the way the vended laundry industry will require improving gender representation across all levels and creating a space where women can come together to discuss their biggest concerns.

The CLA’s task force is off to a promising start, with two initiatives targeted at changing the face of the vended laundry industry. Further meetings and assemblies by its members will likely lead to an even more focused approach to empowering women in vended laundry today.