If you’re looking for a new business opportunity with an excellent return on investment (ROI) and high success rate, invest in a Laundromat. Laundromats have consistently been profitable in comparison to other investments. Plus, your investment can be even more successful when partnering with a trusted commercial laundry distributor like Metropolitan Laundry Machinery Sales, Inc. Our commitment to customer success sets us apart from the competition. In addition, our high-quality, energy-efficient commercial laundry equipment only adds to the success you can achieve in the laundry industry.
As a leader in commercial laundry equipment distribution since 1968, we are honored to be known as one of the largest and most respected distributors in the Northeast. Let us share some of the top reasons why a Laundromat is the right investment opportunity for you.
High Success Rate in Owning a Laundromat
Owning a Laundromat is an excellent investment — and research from laundry industry leaders consistently backs that up.
According to Speed Queen, one of the most trusted commercial laundry equipment brands we proudly distribute, Laundromats are profitable and have almost a 95% success rate. Research from the Coin Laundry Association (CLA) found that Laundromats are typically valued around $50,000 to $1 million and have a cash flow of around $15,000 to $300,000 annually. That’s higher than the average one-person business, which sees about $46,978 in revenue each year.
Taking the necessary steps to build and maintain a laundry business is also key to the success of your Laundromat. Finding the right location for your Laundromat will help you reach the members of your community who need your services regularly and increase the likelihood of success.
Consistent Customer Base
Laundromats generally have a built-in customer base, particularly in populated areas where laundry is called for outside of the home. According to the CLA, population growth and an increase in rental housing have increased the customer base for coin laundries.
When you buy an existing Laundromat, you already have a head start. Your business will have an existing, reliable customer base. Therefore, you won’t have to spend as much time setting your Laundromat apart from the competition and investing in different marketing tactics for your business. However, there are some improvements you can make to your store that will help you attract new customers and enhance the experience for your already existing customer base.
Enhancements such as improved lighting, more comfortable seating, and better vending machine options are simple and easy to make. By upgrading your laundry equipment with technology that rewards customers for doing their laundry at your store or easy-to-understand cycle modifiers, you are more likely to draw in a new audience and retain your existing customer base.
Quality Commercial Laundry Equipment
When you install best-in-class washer/extractors and tumble dryers, you let your community know you care about their laundry needs. Our equipment is unique and engineered to deliver tailored wash and dry cycles. When a Laundromat offers ultra-efficient equipment that features high extract speed and fast dry times, you position your business to save on utility bills. In our experience, when you outfit your store with machines that have advanced features and intuitive controls, you generate revenue unlike anything in the industry.
Revenue-generating controls that increase profits — such as fully programmable cycle modifiers — are efficient ways to optimize your equipment and stay in control of your store from anywhere you have an internet connection. With the use of advanced controls, you position yourself to work smarter.
Flexible Payment Systems
Today, multiple payment systems are available for commercial laundry equipment, making it easy for customers to pay for your laundry services with an app or a card. Unlike other businesses that may still operate with a card-only or cash-only model, payment options also allow owners to choose the ideal payment method for both their business and their customers. You’ll never have to turn a customer away!
As the market changes, so should your payment methods. Our team at Metropolitan Laundry Machinery Sales, Inc. always recommends customers move toward more convenient payment options — such as cashless or card laundry equipment options — to stay up-to-date with ever-changing technology.
Laundromats are Mostly Self-Service
Overall, a Laundromat that is set up efficiently and effectively can almost run itself. However, that doesn’t mean you want to be hands-off. Being present in your stores demonstrates a commitment to your business and the customers that frequent your Laundromat. By offering the latest technologically advanced ancillary equipment, customers can turn their cash into quarters for coin-operated machines or turn bills into laundry cards. Next, they select their laundry cycles and let the machines do the work. While Laundromats are mostly self-service operations, the staff is required to maintain the equipment and support customers with their laundry needs. We recommend you staff your stores based on the traffic and flow of your customers.
We recommend you staff your stores based on the traffic and flow of your customers. According to an article from IBISWorld, the average Laundromat business in the United States has 2.6 employees. These low overhead costs compared to other self-service businesses makes owning a Laundromat a desirable option.
With the extra time and money, you can invest in efficient and effective commercial laundry equipment that exceeds the needs of their customers or steady online marketing tactics that get people through the door.
It’s an Excellent Return On Investment (ROI)
According to Speed Queen, Laundromats in the United States see an average cash-on-cash ROI of 20-35%. Therefore, when you calculate the cost to set up your laundry business and factor in efficient costs to operate your store and the monthly return on your investment, you’ll quickly see what a profitable business model owning a Laundromat can be.
Work With a Trusted Laundromat Partner
When deciding to invest in a Laundromat, it’s essential to work with a trusted commercial laundry partner that will be there for you before, during, and long after the sale.
At Metropolitan Laundry Machinery Sales, Inc., we’re here for Laundromat owners after they purchase their commercial laundry equipment and open their doors. Our highly skilled technicians are on hand to service your Huebsch and Speed Queen commercial laundry equipment, along with providing genuine parts. We are here to provide your business with reliable and efficient commercial laundry equipment services.
You’ll have a peace of mind guarantee that your equipment will be serviced and back up and running. Contact us today to learn more about investing in a Laundromat and how we can help you achieve your goals of successful Laundromat ownership. Our team is here to help you understand what investing in the laundry industry could mean, how our equipment can help your business succeed, what financing options are available, and much more.