Purchasing a Laundromat can be an amazing opportunity. However, there’s a lot that you need to think about when assessing a Laundromat’s profitability.
Machine Quality and Maintenance Needs
A Laundromat’s machines are a major factor in its operating expenses and revenue potential. Ideally, you want the machines to be relatively new, energy-efficient, and still in production. Machines that are no longer being made may be more difficult to get replacement parts to repair. Machines that are more than ten years old may need to be replaced altogether.
When you’re buying a Laundromat and assuming responsibility for its lease, you have to make sure that you thoroughly understand all of the lease terms. It’s important to consider how much time is left on the lease, whether the rate will increase, and if it includes a percentage of the business’ income.
Another key element to assess in determining the profitability of a Laundromat is its monthly utility costs. Get information about how much the electric and water bills are so you can accurately calculate your overhead.
A Laundromat needs to have reasonable and predictable operating expenses in order to be a worthwhile investment. If you’re new to the industry, consider a consultancy or partnership with an experienced Laundromat operator who can offer valuable insight.