Tips for putting up a small laundromat business
If you’re looking into starting a business with a stable demand, low-cost labor, and passive income potential, you might want to consider starting a laundromat business.
Not to be confused with a laundry shop, a laundromat’s main income is derived from the money customers pay to rent your washing machines and dryers. While you can also offer full laundry services, a laundromat specifically refers to an array of washing machines designed for public use.
Many aspiring entrepreneurs are drawn to this type of business because it’s one of the few businesses that require minimal labor—which is typically the largest expense in most businesses. What’s more, industry studies pegged the laundromat success rates at an astonishing 95 percent.
According to Statista, laundry care has a total revenue value of USD 108.10 billion. In addition, it comes with a compound annual growth rate (CAGR) of 3.18 percent from 2024 to 2028. Overall, it’s considered to be a stable and essential industry, one that’s resilient against economic downturns and disasters like pandemics.
Have you ever thought about owning a laundromat business as your primary or secondary income stream? If so, here are tips and strategies for starting and running this type of business.
Choose your location wisely
Do you have a location in mind for your business? What does the local neighborhood look like? Are there laundry facilities already established in the area? These are just some of the more important questions to ask when considering your laundromat’s location.
In deciding where to put up your laundromat, you have to consider your target demographic. For instance, most middle to high-income households tend to have their own washing machines at home. However, low-income households, travelers, and college students may need your laundromat to wash their clothes. So, it’s best to find a location near low-income housing, hostels, inns, and universities.
It may also be a great idea to choose a location that’s on the ground floor of residential buildings without their own laundry areas.
Come up with a unique selling point
In a competitive market, having a unique selling point or USP can set your laundromat apart from the rest of the laundromats in the area. Otherwise, customers will have little to no reason to visit your shop.
Some examples of USPs can be opening up a coffee shop on the premises, providing free Wi-Fi, and adding vending machines, among others. Moreover, you can make your commercial space stand out with aesthetically pleasing interiors and comfortable waiting areas. These improvements will help give your laundromat a distinct brand identity and attract customers.
Purchase smart and durable machines
Investing in reliable and energy-efficient laundry machines is essential for the smooth operation of your laundromat. For small laundry businesses, a front load washing machine and dryer capable of handling larger loads are ideal investments. These units are stackable, which means you can put more machines in a smaller space and thus allow you to accommodate more customers.
It’s also best to purchase high-quality, brand-new models instead of secondhand units to minimize maintenance issues and downtime in the long run. As your business grows, you can move onto investing in more industrial-grade units.
Add amenities to your laundromat
Enhance your customer experience by providing amenities like free laundry detergent or a Wi-Fi connection that customers can use while they wait. In addition, you can help your customers with their laundry tasks by providing them with laundry carts to haul their wet clothes to the dryer; installing folding tables, on the other hand, gives people space to organize their washed clothes. These thoughtful amenities can elevate the overall experience and encourage repeat business.
Keep up with your machines’ required maintenance
Every washing machine, even the ones you have at home, requires regular cleaning and maintenance. This is to ensure a smooth operation with minimal downtime. With your commercial washing machines being used constantly, you need to schedule maintenance regularly and likely more frequently.
Aside from cleaning the machine, maintenance tasks should include inspection and lubrication of components. You should also address issues ASAP, so you can lower your repair costs and ensure customers will always have a machine available.
Partner with a trustworthy repairman
Despite diligent maintenance, unforeseen problems may arise with your laundry equipment. That’s why it’s important to build your relationship with your washing machine technician. Avoid getting ripped off by finding experienced professionals who offer timely and efficient service at a reasonable price.
Ensure your business is visible online
These days, business marketing should be done both offline and online. Even small businesses can benefit from simple digital marketing strategies, such as listing your establishment on Google Maps and other local directories. This is so people needing laundry services can find your shop.
Since these online listings also allow for ratings, keep an eye out for bad reviews that you need to address and respond to. Responding to customer complaints in a respectful manner shows your commitment to good customer service.
Promote your business using social media
Harness the power of social media to connect with your target audience and build brand awareness. To support your online presence, regularly post social media content. These posts can be about new services, promotions, and customer testimonials. Make sure to vary your content formats as well; popular ones include static images, GIFs, short videos, and memes.
Upgrade your machines and amenities regularly
Stay competitive by upgrading your machines to more efficient and fast models. Aside from providing much faster service, you can also benefit from a more energy-efficient operation that translates to savings in electricity bills.
Keep utility costs low
While labor costs are considerably lower laundromats, your utilities usually deliver a major blow to your bottom line.
Fortunately, there are ways to keep utility costs down in your laundromat such as using solar panels to power your washing machines. What’s more, dome water treatment technologies are already being tested. If these advanced technologies are successfully implemented, they will not only help keep utility costs down, but also make your business more eco-friendly.
Launching a successful laundromat business requires careful planning, strategic decision-making, and a commitment to excellence. With these tips for starting your laundromat, you can gain valuable insight into how you can run your business and ensure success.
