Commercial Washer
A heavy-duty washing machine designed for continuous use in laundromats. These machines are built to handle large loads and frequent cycles, making them more durable and efficient than residential models.
Commercial Dryer
An industrial dryer used in laundromats, designed to handle large quantities of laundry and dry them quickly. These are built to withstand constant use and are essential for high-volume operations.
Top-Load Washer
A type of washing machine where clothes are loaded into the machine from the top. These washers tend to be cheaper but are less efficient compared to front-load models.
Front-Load Washer
A washing machine that loads laundry through the front door. Known for being energy-efficient and providing better cleaning, front-load washers are a common choice in modern laundromats.
Vend Price
This refers to the price customers pay to use a machine. It varies based on the machine type and service provided, usually ranging from $2.00 to $6.00 for washing and $0.25 to $1.50 for drying.
Cycle Time
The duration of a complete wash or dry cycle. In laundromats, wash cycles typically take 25 to 40 minutes, while drying cycles usually take about 30 minutes.
Capacity
The amount of laundry a washer or dryer can handle, usually measured in pounds. Laundromats often have machines with capacities ranging from 15 pounds for regular loads to 75 pounds for larger items like comforters.
Utility Costs
Expenses related to water, gas, and electricity required to operate laundromat machines. Utility costs can make up a significant part of a laundromat’s expenses, typically between 20-30% of revenue.
Wash-and-Fold Service
An additional service offered by some laundromats where staff washes, dries, and folds laundry for customers. This service is typically charged by the pound and is popular in urban areas.
Coin-Operated Machines
Traditional laundromat machines that operate when customers insert coins. While still common, many laundromats are transitioning to cashless systems.
Card-Operated Machines
Machines that accept credit or debit cards as payment. These are becoming increasingly popular in modern laundromats for convenience.
Mobile Payment Systems
Payment technology that allows customers to pay for laundry services via smartphone apps, eliminating the need for coins or cards.
Gross Revenue
The total income generated from all operations in the laundromat before any expenses are deducted. This includes income from washers, dryers, and any additional services like vending or wash-and-fold.
Net Profit
The remaining income after all operating expenses are deducted from the gross revenue. Laundromats typically have a profit margin of 20% to 35%.
Break-Even Point
The point where total income equals total expenses, meaning the laundromat is not making a profit or loss. Reaching this point is a key financial milestone.
Turnover Rate
The number of times a machine is used within a given period (e.g., per day). Maximizing machine turnover is crucial for increasing profitability.
Vended Laundry
Refers to the self-service model in which customers use coin- or card-operated machines to do their own laundry. This is the core business model of most laundromats.
Loyalty Program
A rewards program that incentivizes repeat customers. Customers earn points for each wash or service and can redeem them for discounts or free washes.
Ozone Laundry System
A technology that uses ozone gas to clean and disinfect laundry with less water and energy. Ozone systems are often used in eco-friendly laundromats.
Revenue Per Machine
A metric that calculates how much income a single machine generates over a period, such as daily, weekly, or monthly.
Stacked Washer-Dryers
Units that have a washer and dryer stacked on top of each other, saving floor space. This configuration is common in laundromats with limited space.
Hot Water Extractor
A specialized machine that removes excess water from clothes after washing, reducing drying time and energy use.
Utility Expense Ratio
The percentage of total revenue that is spent on utilities like water, electricity, and gas. Keeping this ratio low is key to increasing net profit.
DexterPay
A cashless payment system that allows customers to pay for laundry services using a mobile app. This technology is growing in popularity due to its convenience.
Coin Changer
A machine that exchanges bills for quarters or tokens used to operate coin-operated laundry machines. It’s essential for laundromats still relying on coin-based operations.
Soap Dispensers
Machines that sell detergent, fabric softener, and other laundry products. Soap dispensers offer an additional revenue stream for laundromats.
Dry Cleaning Drop-Off
A service where customers can leave their dry-clean-only items to be sent out for professional cleaning. The laundromat typically takes a fee or commission for facilitating this service.
Commercial Laundry
Laundry services offered to businesses such as hotels, restaurants, gyms, and hospitals. This service requires larger machines and often involves bulk washing of uniforms, linens, or towels.
Inverter Motor
An energy-efficient motor used in modern commercial washers and dryers that adjusts its speed based on the load size. Machines with inverter motors help reduce energy costs and are more durable.
Revenue Diversification
A strategy that involves offering multiple services (like wash-and-fold, dry cleaning, vending, and pickup/delivery) to generate income from various sources rather than relying solely on self-service laundry.
Leasehold Improvements
Renovations or upgrades made to a rented property, such as additional drainage or reinforced flooring for heavy machines, to improve its suitability for laundromat operations.
