![]() ![]() Think about a business license, a health department license or wastewater fees and permits, and other municipal fees. Permits and municipal fees : Visit the city clerk to inquire about what permits are needed to open your coin-operated laundry business.Keep in mind that the area needs to be large enough to house your equipment. Space: Rental or building space can take a large chunk of your startup budget. ![]() On top of equipment costs, you will need to consider other fees necessary to operate like: Drain troughs, lint interceptors and lint baskets.Detergent or a detergent vending machine.Once you have a well-thought-out business plan, consider the equipment that needs to be purchased, including: How Much Does It Cost to Start a Coin Laundry?ĭepending on the type of coin laundry business you start, it can be quite costly. Although starting a business may feel intimidating, researching is pivotal in preparing you to start a laundromat business. As the years have passed, the coin-operated laundry industry has grown into a safe, social and convenient way to get those clean clothes. When you’re starting a coin laundry business, consider the costs, profits and other aspects of the industry to prepare yourself for success. The more the store grosses above the break-even point the greater the profitability.No matter the state of the economy, people will always need clean clothes. ![]() Remember, just a slight increase in sales over the break-even point creates a substantial profit. Now is the time that Laundromats show their real profitability. The equipment in a HK equipped Laundromat will easily last 15 to 20 years, and longer still if you keep the equipment in good repair and provide proper preventative maintenance.Īfter the commercial laundry equipment notes are paid off, the store is all yours and then the money being paid to purchase the equipment now goes into your pocket. ![]() This in conjunction with at least a 15 year lease will assure you a handsome return on your investment even if you can't renew your lease. The basic formula in buying a Laundromat is to put down at least 30 % (approximately $80,000-$120,000) and finance the balance over a 7 year note. These situations may lead to a very favorable tax position. There are several major tax advantages that are available to the Laundromat owner including equipment depreciation and the deduction of any financing interest. Available monies are limited and people will defer purchasing and repairing household laundry equipment. Some of the best times for Laundromats have been in times of economic down turn. Economic conditions have little effect on the overall volume of business. Advantages of a cash business include: 'no checks in the mail', no inventory, and no account receivables because the customer pays in advance and supplies their own labor.Ī coin-operated laundry is a recession proof business, as witnessed in our last recession. With Laundromats it is extremely possible to realize a 35-90% return on investment. If you have a good year in the Stock Market or invest in good Mutual Fund you might get 10% ROI. Terrific Money Market Funds are currently paying around 8 %. If you put your money into a savings account you would get 1-1/2 % Return on your Investment (ROI). Why should anyone get into the Laundromat business? ![]()
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