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5 Reasons Why Owning A Laundromat Is Good For You

By: JJones, 11/15/17

The unemployment rate is dropping and the economy is growing. How are you taking advantage?

According to the National Association of Realtors’ Business Creation Index for June of 2017, 53 percent of the NAR’s commercial members saw an increase in businesses opening in their communities. Commercial laundromats are an ideal business venture for entrepreneurs looking for a new career or a profitable secondary business.

Here are 5 reasons why laundromats are the perfect venture to take advantage of a growing economy and the opportunities to start a new business.

  • Laundromats Are in Demand

The shift toward renting, rather than owning a home, continues. Take New Hampshire, for example. The state’s rental market has experienced a 15% increase, while the vacancy rate fell to 1.5%. Some rentals, whether they are apartments or single- and multiple-family homes, do not provide laundry equipment for their residents, leaving the residents to look elsewhere. A properly placed laundromat meets a consistent demand for the service.
People work – approximately 62.7% of the population over age 16 in this country are employed – which means they are busy earning money and have less time for chores… such as washing clothes! Adding a wash, dry and fold service fulfills their needs even better.

  • Laundromats Are Recession Resistant

Clean clothes are a necessity in life, not a luxury. People will make room in their budget to clean their clothes and they pay for service before it is rendered. Business will be stable and provides a steady cash flow

  • Laundromats are Profitable

Once your breakeven is reached, about 75 cents of every dollar is profit. Buying and maintaining equipment, paying rent or a mortgage, and utilities account for the bulk out of your expenses, but these can be controlled a few ways:

    • Secure a favorable long-term lease with the help of your attorney.
    • Use energy efficient machines to reduce utility costs.
    • Buy out an existing laundromat that has closed and has the plumbing, electrical and duct work still in place and functioning.
  • Laundromats can be a Community Hub

A laundromat can do more than just provide a place for people to wash and dry their clothes. You have the power to create a comfortable environment where people want to go. Some customers, for example, feature iPad tables in their laundromats for customer to use, occupying children and allowing adults to complete other errands online. Other potential extra services include:

    • Vending machines
    • Food and beverage service
    • Sales of laundry bags and accessories
    • Free Wi-Fi
    • TV
    • Adding extras services also means adding extra revenue streams.
  • Laundromats Require No Prior Experience

A laundromat, like any business, requires research by any prospective owner. However, laundromats are less complicated to run than many commercial ventures, such as a restaurant, making it a great first business to own.
And, don’t worry, you don’t need to take this journey alone. Here at Yankee Equipment Systems, Inc., we not only provide the best laundry equipment, we provide expert advice.

Contact us to find out how we can help you start your laundromat.

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38th Annual Vended Laundry Trade Show

By: JJones, 2/29/16

Join us for Yankee’s 38th Annual Vended Laundry Trade Show. When: Saturday March 12 and Sunday March 13, 2016 Where: Westin Hotel 70 Third Ave. Waltham, MA This March Yankee will host our annual Coin Laundry Trade Show. This will mark our 38th year of bringing Laundromat Owners and Industry Leading Manufacturer Representatives together under …

What is that sound?

By: TRistaino, 7/01/15

Have you ever stood in your laundry and wondered what that mysterious sound was? You didn’t hear it yesterday when making your rounds but today you hear it. It may be a thumping sound. It may be a high pitched whistle or a low pitch hum. It may be a grinding or a screeching sound. …

The Importance of Stocking Parts for your Laundry Equipment

By: JJones, 4/30/15

Machinery breaks down. It’s a truth of all industries that rely on equipment and the laundry industry is no different. So how do we keep your downtime on the equipment you depend on to a minimum? Preventative Maintenance programs and following proper maintenance schedules go a long way to keeping equipment of all ages in …

The importance of homework

By: TRistaino, 3/09/15

None of us liked being assigned homework when we were in school but in hindsight homework helped us deepen our understanding of certain conepts that were being taught. Also, it gave the teacher an insight into how well we learned the lessons that were taught. Homework is important in the laundry industry as well. No …

Slips, Falls, and Fires

By: TRistaino, 2/18/15

Slips, falls, and fires are three events that need to be minimized in self-service laundries. These events, probably more than any others, are drivers in higher insurance rates for laundromat operators. A diligent, discliplined approach to preventing slips, falls, and fires can save money on insurance premiums while maintaining strong customer relationships. Slips and falls …

Utility costs on the rise

By: TRistaino, 9/29/14

On Friday, September 26 there was a front page article in the Boston Globe regarding the pending, dramatic increase in electric rates in Massachusetts. Other states have posted similar stories recently as well. The announce increase by National Grid in MA was 37% over last winter!! Why the increase? Basically, it is due to the …

Sales Tax on Vended Laundry Receipts

By: TRistaino, 9/02/14

How would you like to pay anywhere from 4% to 8% of your gross laundry receipts to your state government by way of a sales tax? Can’t happen? Guess again!! Iowa, Hawaii, New Mexico and West Virginia currently collect sales taxes from laundromats. Several other states have considered or proposed imposing such a tax. Among …

Capital Budgeting

By: TRistaino, 12/16/13

Recently we discussed the importance of developing an operating budget for your business. Today, we will review the importance of developing a capital budget.  Unlike the operating budget which plans month to month activities for the year, the capital budget takes a longer view. In some cases it covers several years. Your capital budget plans …

Budgeting for Laundromat Part 1

By: TRistaino, 11/04/13

Each year businesses of all sizes and in all industries create budgets for the upcoming year. Since 2013 is winding down and we begin to look ahead to 2014 lets review some budget basics for a Laundromat. There are two types of budgets to create: operating and capital. An operating budget, as its title indicates, …

Annual Lint Cleaning

By: TRistaino, 10/09/13

As noted in previous articles the presence of lint in all laundries is a fact of life. We have written about what causes lint and how best to control it. Nonetheless, despite one’s best efforts lint will still be present in laundries. We have all heard of Spring and Fall cleaning as ritual around our …