So you’ve decided to finally take the leap and open your own laundromat. It’s one of those businesses that never get old and has a high success rate provided you’re ready to invest in top-quality equipment and offer impeccable service!
However, before you jump the gun, there are a few risk factors that you might not be aware of if this is your first laundry business.
Here are the most common risks of running a laundromat!
High utility costs
A laundromat relies on electricity, water and sewage for daily operations. As utility costs increase, you might find it hard to turn it into a profitable business. While you can’t control inflation, you can definitely control the energy and water efficiency of your equipment. An initial investment in the right washers and dryers can spare you high expenses later on.
If you’re buying an established laundry business, make sure to check the utility bills before you sign any contract. If the numbers are high, ask the current owner if there are any plumbing issues you need to know about, so you can understand the challenges you’ll face.
Maytag Commercial Front Load Washers offer a large 9kg capacity for your laundromat users while only using a third of the water compared to Top Load Washing machines to keep your water bill down on site.
A coin-operated laundromat can be a profitable business, but there’s also a high risk of it attracting thieves. You’ll also need to keep cash on hand to provide customers with change for the washers and dryers.
The best thing to do is to switch to a cashless, card-operated laundromat. It’s a modern and safe solution and it also attracts more customers. That’s because most people don’t carry coins and prefer to pay via card.
If you’d like to know more about it, here are 3 Reasons to Switch to a Cashless Laundromat!
Location is very important for a laundry business. Choose a neighbourhood with high crime rates and people won’t venture outside after dark to do their laundry. You also need to consider the above point – if you run a coin laundromat, there’s a higher risk that someone will break in.
On the other hand, choosing a good neighbourhood implies high rent prices and the risk of them substantially increasing every time you renew your lease. Depending on what you can afford, you need to find a balance and if you’re in a more dangerous area, make sure your location is easily accessible, safe and well lit.
The location of your laundromat will also play a big part on what machinery you should install in your laundromat. A new laundromat surrounded by multi level apartments where each apartment comes with a little 5kg washer pre installed, would do best with larger washers and dryers for those apartment dwellers to wash their larger doonas and blankets in.
Where else, a laundromat in a tourist town will generate more profit for you with a mix of smaller equipment so the holiday makers can wash a couple days worth of clothing in before moving on to their next destination.
When you open a laundromat, don’t let your enthusiasm blind you to the risks associated with this type of business. Make sure you invest in high-quality equipment and take all the necessary precautions, for your peace of mind.
If you have any questions about Maytag Commercial coin or card operated laundrette machinery, contact the best commercial laundry equipment suppliers in Australia and we’d be happy to assist you!