A Guide to Calculating Your Laundromat’s Startup Costs

When you’re thinking of investing in a laundromat, you’re also probably thinking of how much it takes to put one up. A laundromat’s startup costs can be quite high, as you’ll need to consider where to put up your business, the utility costs, staffing, as well as the equipment and commercial laundry parts from establishments like Laundry Replacement Parts.

On average, the startup costs for a laundromat ranges from $200,000 to $1,000,000. It’s a wide range as it depends on the business size, location, equipment, dexter laundry parts, among other factors.

Here are the factors to consider so you can calculate how much it would take to run your own laundromat:

1. Business Entity Fees

How much does it take to create a business entity? The state you will file in and the business structure chosen, may it be C-corporation or limited liability company, determines the fees to pay. The average startup paperwork would cost about $200 to $1,000.

2. Purchase of Build?

You can either purchase a franchise or build your own laundromat from the ground up.

If you decide to purchase an existing laundromat, the start-up cost would mainly be the amount you’ll pay for the business, which would already be stocked with the required equipment and hook-ups. You might have to factor in the location of the laundromat doesn’t include the property it is on.

If you will build a laundromat, then a 2,000-square foot space would cost about $200,000 to $500,000.

3. Municipal Fees

Cities would charge laundromat fees for hooking up water and sewage lines. It can be called various names, like impact, tap-on, or wastewater fees. Such fees can cost between $200 to $8,000 per washer. We recommend contacting your local water authorities to determine the exact fees.

4. Laundry Equipment

To estimate the laundry machine cost, multiply the number of machines needed by the unit cost. On average, top-load washing machines are $500 to $700 each, while front-loaders are $3,500 to $20,000 each, depending on the size. Stacked dryers would cost $5,000 to $6,000 each.

Overall, it can take between $150,000 to $400,000 to stock your laundromat with the appropriate machines. You may also want to add card-reader costs to make things more convenient for customers, which costs between $40,000 to $80,000. This is a good investment as it makes transactions easier for customers and you can easily track the machine’s usage and focus on the budget.

If you plan to provide hot-water washers, then it’s best to invest in a water heating system. This can cost between $15,000 to $40,000.

5. Supplies and Accessories

Laundry carts, cleaning equipment, trash cans, among other supplies can cost about $1,000 or more. You might also want to invest in optional items like a security system ($6,000 to $10,000), a television ($200 to $500), WiFi ($40), or a vending machine ($3,000 to $4,000). These can help improve customer satisfaction and experience.

Wrapping It Up

There is a lot to think about when budgeting your startup cost for a laundromat, which is why research is essential.