Few businesses have quite exactly the same relationship using their equipment as laundromats. Essentially, your devices are almost the whole draw of your business. Customers will be regularly paying you to directly utilize your equipment, so it is obvious that you want to spend a lot of time considering your equipment purchases.
If you’re thinking about starting your own laundromat and want to obtain a sense of how much the equipment will cost, where to purchase it, and the way to finance it, you’ve come to the best place. Read on for more information.
The Equipment You have to Begin a Laundromat (& How Much It Costs)
If you’ve visited a laundromat, you probably have a general concept of what kinds of equipment you’ll need to get your laundromat ready to go. Nevertheless, let’s lay them out to ensure we’re on a single page. You’ll need, at least:
- Commercial washers ($700 – $25,000 each)
- Commercial dryers ($1,000 – $20,000 each)
- A payment system
- Coin-based ($100 – $200 per machine, $700-$1,200 per bill-to-coin changer)
- Card-reader system ($40,000 – $80,000)
- Water heating system ($15,000 – $40,000)
You’ll probably want:
- Tables for folding ($60 – $600/each)
- Seating ($30 and up/each)
- Laundry carts ($50 – $80/each)
- Vending machines for snacks/detergent ($1,000 – $5,000/each)
- Entertainment (variable)
Commercial Washers
This is the reason your customers will come! Commercial washers are available in a variety of sizes, with capacity which range from 1.7 cubic feet to over 4.5 cubic feet. Many laundromats provide different sizes for different loads, charging more to be used of the larger machines. Generally, top-loaders are cheaper than side-loaders but they are less energy and water-efficient. Nevertheless, there’s quite a enormous range of prices for washing units. For any given model, you want to capture into consideration the long-term costs from the machine in terms of both utilities and maintenance. If you’re aren’t looking for the absolute cheapest or most expensive models, you can probably count on paying somewhere between $1,000 and $3,000 per unit.
Commercial Dryer
Most customers who use laundromats will even want to dry their clothes on site. Dryers could be heated by electricity or gas, however the most of new laundromats will most likely opt for electric (typically 240 volts) unless they already have a handy infrastructure for gas. If you’re short on floor space, you may want to consider stackable dryers, which allow you to double the number of units you are able to fit within your shop. Count on paying a little more for that privilege, however.
Dryers generally have a larger capacity than washers, which range from 5.5 to in excess of 9 cubic feet, weight loss space is required to effectively dry exactly the same quantity of clothes. Like washers, you can probably find decent units for between $1,000 to $3,000 each.
A Payment System
Coin-Op
The once-ubiquitous coin-operated laundry is really a rarer sight than it was once, but it’s still a possible option for laundromats seeking to minimize startup costs. The coin boxes, feeder slides, and wiring add a little bit of expense to each machine. You’ll also need to spring for any bill-to-coin changer or two to ensure that your visitors have quarters to give your machines.
The downsides of a coin-based system come into play down the road. When you won’t exactly be considered a bank, you’ll have a lot more cash onsite, meaning you’ll have more security risks than you'd with a card-based system. Those risks can also add expense–collecting the coins, transporting them, etc.
Card-Based
A card-based system, however, provides a large amount of long-term conveniences. You won’t need to bother about collecting or monitoring coins, as well as your customers won’t need to bother about having cash on hand once they walk in. Even better, these systems help you to track your sales. Additionally, they are able to function similar to loyalty cards, encouraging customers to return and spend on the value on their own cards. Some systems also permit you to offer perks like dryer credits.
The downside, of course, is the fact that scalping strategies are pricey to install, adding up to $40K to your startup expenses. If you can afford it, though, the general consensus seems to be that they’re worth it.
Water Heating System
If you’re offering warm and hot wash cycles, you’ll require a home heating for all that water you’ll be using. Scalping strategies include or without a storage tank. The advantage of the previous is that it keeps hot water prepared to be used, but utilizes more energy to do this. Either way, you’ll need to make sure your system is powerful enough to create enough hot water for all your machines should they run at once. With a tank storage system, you’ll be thinking about its recovery rate to ensure it may meet peak demand, whereas having a tankless system your concern should be with the amount of hot water it may produce on demand.
The Rest
While not essential by itself, there are several other things which will improve your customers’ laundromat experience and assist you to stand out from the competition.
First, there’s the stuff that helps customers take care of their laundry. I’m talking about carts that make it simpler to move wet laundry to dryers, and dry laundry to tables for folding. And speaking of tables, you’ll probably want those too. How about seating for purchasers who're waiting for their laundry to finish? And maybe a method to buy detergent, fabric softener, or dryer sheets when they didn’t bring their own?
Vending machines are a common sight in laundromats, and for good reason. Your busy, captive clientele will probably get thirsty or peckish. It’s not unusual for such machines to be a significant source of revenue for laundromats. Vending machine prices vary quite a bit with respect to the model and whether you purchase used or new, but you’re probably taking a look at an outlay between $1,000 and $5,000 each.
The final consideration is entertainment. Let’s face it, doing your laundry isn’t probably the most exciting thing in the world. Sure, many customers have smartphones, but maybe they’d be more comfortable watching TV! What about some toys to occupy kids? And who doesn’t associate laundromats with old-fashioned coin-operated arcade games? While none of those are essential, they can be difference-makers when individuals are going for where to complete their laundry.
Where To Purchase Laundromat Equipment
You can purchase laundromat equipment through a number of different sources. The choice that’s good for you will probably depend on your budget, where you are, as well as your business plan.
Distributors
Laundromats are such a common business there are quite a few firms that exist primarily to service them. These distributors specialize in selling, servicing, and installing laundry equipment. Additionally they usually deal in parts, which may be useful if you’re attempting to keep older machines running. If you decide to make use of a distributor, make sure there is a good reputation and work with the brands you need to use. If you’re seeking to keep costs suprisingly low, many distributors also deal in used equipment.
Manufacturers
You can also try to buy your equipment directly from the manufacturer. Even though many brands still use local distributors to market many, some also offer their own financing programs to assist customers buy many. Coincidentally, if you know the brand of equipment you want, you can often make use of a manufacturer’s web site to find distributors in your town.
Franchising
While they aren’t nationally known like some other industries, there are a number of laundromat franchises operating in america. Plugging into a franchise usually raises your starting costs. You’ll need to pay a franchise fee upfront, comply with franchise standards, and may need to pay royalties every month. In exchange, you take advantage of the franchise’s advertising and offer chains. Bear in mind, a franchise will most likely lock you into specific brands and layouts.
Retail
You can, obviously, buy equipment from retailers, but unless you’re benefiting from an excellent sale or can come to some type of bulk buying/financing agreement, this probably won’t be the greatest way to buy the majority of your laundromat equipment. It may, however, make sense to buy a number of your smaller one-off purchases by doing this.
Laundromat Equipment Financing Options
By now, you’re probably realizing that equipment makes up a lot of the price of starting a laundromat, with total costs to have an average-sized laundromat ranging between $200K – $500K. If you don’t obtain that much cash available under your mattress, you’ll have to seek other sources of financing.
Leasing
If you have decent credit (620+) and would rather have monthly obligations rather than a large initial expense, you are able to lease your laundromat equipment. Leases are available in two general forms: capital leases and operating leases. Capital leases are effectively loan substitutes, meaning you’re financing equipment using the intent to possess. Operating leases, on the other hand, are rental agreements that allow you to utilize equipment that is technically owned by the leasing company. This is often a useful arrangement if you wish to frequently change your machinery. If you’re buying from a manufacturer, see if they provide captive leasing, or are partnered with any equipment leasing companies.
Keep in mind, however, that leasing is nearly always more costly with time than buying.
Loans
If you’re looking to purchase and can afford a payment in advance, a rather cheaper option than leasing is to buy an equipment loan. Equipment loans are secured loans that use the gear being purchased as collateral. This tends to result in better term lengths and rates than you’d see with a similar unsecured capital loan.
SBA Loans
The Small Business Administration might help new business organisations that won't otherwise be eligible for a competitive loan rates and terms to get them. The two most popular programs, 7(a) and 504, can both be employed to purchase equipment. The term lengths provided by these programs can spread the price of your equipment out on the long period and give your company time for you to mature. Just be conscious that applying for SBA loans is definitely an involved, time-consuming process.
Start Your Laundromat Business Served by The Right Equipment
Remember, a laundromat is itself something of the equipment rental business, using the customer “borrowing” your machines for brief intervals to wash your clothes. Which means your equipment should be one of the top priorities of your business.
Ready to complete some purchasing? Take a look at the most popular equipment financers. Confused about a few of the terminology? Take a look at our breakdown of the differences between equipment loans and leases.
