How much profit can a laundromat make?
Obviously, the answer will depend on a multitude of factors. That said, the average laundromat can make about $500 a day, including the revenue from washing machines, dryers, along with secondary income streams (like food). Self-service laundromats can earn between $100 to $1,500 daily.
Sure, those sound like huge numbers but remember that this is just an estimate.
Estimating a Laundromat’s Daily Income
If a laundromat can make around $500 a day, how can you compute for its average daily income?
There are two ways to do so:
- Check the Pro Forma
If a laundromat is for sale, the broker listing it gathers all relevant data of the laundromat from its owner. All the information will then be included in the pro forma. Think of the pro forma as a business’ highlight reel.
You will find relevant information on the laundromat, such as its name and address, the equipment included, along with the business’ income and expenses. The pro forma breaks down a laundromat’s income through the revenue from dryers, washers, and other income streams.
The pro forma also breaks down the expenses based on categories such as the cost of maintenance and commercial laundry parts from suppliers like Laundry Replacement Parts.
You can request the laundromat’s pro forma from the broker, so you get to see how much money the laundromat earns. That said, you can only use this method if you plan on purchasing an existing laundromat, if it’s for sale, and if you have expressed interest in buying it.
- Using Math Estimations
If you’re starting a laundry business from scratch or analyzing your own laundromat’s performance, you can perform a simple math equation.
Your laundromat’s performance is measured in ‘turns a day.’ One turn equals one use of a washing machine. When calculating for the turns per day, you get the average frequency your machines are used daily.
Once you have this, you can now calculate how much your laundromat earns daily.
Now, let’s say you have ten 40-pound washing machines with a $4.50 vend price. Multiply ten by $4.50, and you get $40.50, which is the cost per turn. Now, your washing machine gets about five turns a day. Multiply five by $40.50, and you get $202.50. This is how much your laundromat earns from the washing machines alone.
You can do the same equation with your other equipment and secondary income streams. If you don’t want to do this manually, there are online calculators to help you out.
But remember that this is just how much a laundromat makes, but it doesn’t account for its expenses, such as rent, utilities, dexter laundry parts, and the like. Once you know how much your laundromat makes in a month, you can subtract that from the monthly expenses to get your profit.
Wrapping It Up
Laundromats offer promising profits, but you’ll need to take the time to plan everything out and take into account the expenses and work one needs to put into the business.