According to the Coin Laundry Association, a coin operated laundromat can bring in anywhere between $15,000 to $200, 000 a year. There are over 35,000 of these owner-operator businesses in the United States. When you run a laundry business, there are many benefits, such as a consistent cash income without the need for direct contact with customers. There are also significant risks, which are detailed here.
Problems With High Utility Bills
One of the highest costs associated with running a laundromat is utilities. That includes electric, gas and water bills. At many laundromats, lights stay on for 24 hours. The washers and dryers use gas (for hot water), electricity and water. The owner also has to provide heat or air conditioning for patrons. Utility costs can be as much as 30 percent of the gross income, although energy-efficient machines can trim this to 15 percent to 25 percent.
If the laundromat owner gets overwhelmed with high utility bills and cannot pay, he is at the mercy of the electric and water company. If utilities are shut off and he cannot bring the accounts current in time, the laundry business is doomed.
The laundromat owner is also vulnerable to problems with public utility companies that are out of his control. There is always the risk of water-main breaks and unforeseen power outages that could put the business out of commission for hours or even days.
Another high cost is the machine maintenance. Since laundromat owners do not always monitor every washing machine or dryer at all times, there is the risk of misuse of the machines by patrons. For example, if a customer ignores warnings not to put a large comforter in a small machine, the equipment could break down. The repair cost must be paid by the owner out of pocket.
A laundromat owner may have to deal with disputes between customers. One common problem arises when a patron leaves his clothes in a washer or dryer for too long, and another patron removes the clothes on his behalf. There may also be arguments over stolen clothing or property that the laundry business owner may have to resolve.
Because a laundromat is a cash-driven business, the owner has to handle and transport a lot of cash (mostly quarters) to and from the bank. Unlike a retail store, there are no credit card sales that can be deposited directly to a bank account. So the owner is at risk of having a large amount of cash stolen from the business unless he implements tight security and money-handling procedures.
A laundromat is the first choice for many who need to wash and dry their laundry. Whether you don't own a washer...
How to Calculate Start Up Costs for a Laundromat
Starting a laundromat is not an inexpensive business venture. However, once you get it up and running, it can be very lucrative,...
How to Start a Laundry Business
A laundry business can be a simple and profitable business to start. There are many types of laundry businesses, including home-based and...
How to Start Your Own Laundry Mat Business
Knowing how to start your own laundry mat business will help you create your own fortune in this economy. Everyone needs to...
How to Reduce Risk to Home or School from Disaster
Natural disasters can be dangerous and destructive. Knowing how to prepare for and deal with disasters can reduce fear and anxiety during...
How to Design a Commercial Laundromat
The commercial laundromat can consistently produce a steady cash flow in both good economic times and bad. With upfront payment for your...
How to Run a Laundry Business
Laundry is the bane of most people&#039;s existence. The job is never done. Just when you think you&#039;ve done all of your...
E-business is an electronic form of business conducted over the Internet. This business model has increased in popularity as technology has advanced...
Risks Associated With Borax
Borax is a salt of the element boron. In its most common form, it is a chalky white crystal that contains a...