Laundromat business: From soap & suds to dollars & cents

Hey there!

Today, we’re talking laundromats. They might seem like they are out of style, but we’ve got some pleasantly surprising numbers and evidence of a low barrier to entry into the world of helping people wash all the things. 

Industry snapshot

• Revenue: $6.6 billion (That's a lot of quarters!)

• Number of businesses: 20,099

• Number of employees: 49,688

• Average revenue per business: $329,600

• Profit margin: 22.2% (Pretty clean profits!)

What’s trending?

1. Economic downs = Laundromat ups: When the economy takes a hit, more people turn to laundromats. Can't afford that washer repair or a brand-new appliance? Hello, laundromat!

2. Location, location, location: Success in this biz is all about where you set up shop. Near apartments or colleges? You're golden!

3. Tech is tumbling in: Smart payment systems and energy-efficient machines are making waves. Get tech savvy. Make it convenient. 

4. Green is clean: Eco-friendly practices are gaining traction. Think water-saving designs and (again) energy-efficient machines.

Who’s washing?

1. Renters (50% of the market)

2. Businesses (30%)

3. Government and institutions (20%)

Where’s the action?

The top 5 states for laundromat businesses are:

1. New York (19.6% of businesses)

2. California (9.8%)

3. Texas (6.7%)

4. Florida (5.6%)

5. New Jersey (5.2%)

Challenges to watch out for

• Seasonal swings (Winter can be slow ❄️)

• Rising utility costs (Ouch for those power bills 🔌)

• Finding good workers (It's tougher than removing a tough stain 🍝)

The bright side

• Low start-up costs

• Steady demand (People always need clean clothes!)

• Opportunity for year-round work with add-ons like dry cleaning

Quick tips for laundromat success

1. Location is key: Set up shop where there's high foot traffic and lots of renters.

2. Upgrade your tech: Invest in energy-efficient machines and user-friendly payment systems.

3. Create a welcoming space: Clean, bright, and safe laundromats keep customers coming back.

4. Offer extra services: Think wash-and-fold, dry cleaning, or even a small cafe area.

UpFlip’s exclusive laundromat launch guide!

We have a number of courses available inside the UpFlip Academy to help you launch your coin-op, wash-and-fold, or dry-cleaning empire…or any other entrepreneurial endeavor you decide to dive into…including our exclusive Acquire Your First Laundromat course with Dave Menz, the Laundromat Millionaire and CEO of Queen City Laundry.

Fun fact

Did you know that 94% of laundromat businesses have fewer than 20 workers? It's truly an industry of small business owners!

That's all for now. Remember, in this business, cleanliness is next to profitability. Who knows? Your quarter-collecting hobby could become the next big thing!

Stay fresh and keep spinning!
The UpFlip Team

P.S. Tell us which industry you’d like us to feature next by replying to this email.