Laundromats are widely regarded as one of the most reliable and recession-resistant small business models in the service industry. Their simple operations, consistent demand, and low inventory costs contribute to solid profit potential. But to run a truly successful laundromat, understanding and optimizing your profit margin is essential.
What Is a Profit Margin in a Laundromat?
Profit margin is the percentage of revenue left over after all expenses are paid. In a laundromat, those expenses typically include rent, utilities, loan payments, maintenance, labor, and supplies. A healthy profit margin ensures your business stays sustainable, scalable, and resilient through seasonal shifts or economic downturns.
- Formula: (Revenue – Expenses) ÷ Revenue × 100
- Measures operational efficiency and overall financial health
- Helps assess pricing strategies, service costs, and overhead
- Crucial for planning expansions or investments in new equipment
Average Profit Margin for Laundromats
Most successful laundromats operate with net profit margins between 20% and 35%. This means for every $1,000 earned, the business typically keeps $200 to $350 as profit. However, margins can vary significantly depending on location, service offerings, machine efficiency, and management style.
- Typical range: 20%–35% net profit margin
- Top-performing laundromats: 35%–45% with optimized operations
- Poorly managed or high-cost locations: 10%–15% or lower
- Profit margins are usually higher in self-service, unattended stores
- Margins may dip when offering labor-intensive services like delivery or wash-and-fold—but overall revenue tends to increase
Major Expenses That Affect Profit Margin
Managing your expenses is just as important as increasing revenue. Laundromats often have predictable costs, but they can vary by region, utility provider, or lease terms. Keeping these costs in check helps protect and grow your margins.
- Utilities (water, gas, electricity): Often 15%–30% of revenue
- Rent or mortgage: Can be 10%–25% depending on area
- Maintenance and repairs: Typically $500–$2,000/month
- Labor: Minimal for unattended stores; 15%–20% for attended/full-service
- Insurance, licenses, and fees: Fixed annual or monthly costs
- Supplies: Detergent, plastic bags, and vending items for wash-and-fold or retail
Revenue Sources That Boost Profitability
While self-service machines generate the core of a laundromat’s income, additional services can significantly increase both revenue and margin. High-margin services may take more time or staffing but offer better returns than machine-only revenue.
- Wash-and-Fold: Charges $1.50–$2.50 per pound; high markup after labor
- Pickup and Delivery: Expands customer base and boosts average ticket size
- Vending Machines: Passive income from snacks, soap, and drinks
- Loyalty Programs: Encourage repeat visits and higher per-visit spending
- Commercial Contracts: Stable, recurring income from businesses like gyms or salons
How to Improve Your Profit Margin
Boosting profit margin doesn’t always mean raising prices. Many improvements come from optimizing operations, reducing waste, and increasing customer retention. Small changes in multiple areas can lead to a noticeable increase in profitability.
- Upgrade to high-efficiency machines to reduce water and energy costs
- Install smart payment systems to increase upsell opportunities and reduce cash handling
- Use preventative maintenance to reduce expensive breakdowns
- Implement time-of-day pricing to increase off-peak usage
- Offer premium services like express wash or detergent upgrades
- Train staff to improve productivity and customer satisfaction
- Review and renegotiate utility contracts or lease terms when possible
Margin Considerations by Business Model
Different laundromat models come with different margin profiles. Understanding which one aligns with your goals helps you plan realistic profit expectations.
Unattended Self-Service
- High margin (30%–40%)
- Low labor cost
- Consistent overhead
Attended/Full-Service
- Moderate margin (20%–30%)
- Higher labor and supply costs
- Higher ticket value per customer
Pickup & Delivery Model
- Lower margin per order but higher volume
- Requires drivers, fuel, scheduling, and customer service
- Best margins when routes and operations are tightly optimized
Conclusion
Laundromat profit margins are among the most attractive in the service business world—especially when managed strategically. A well-run laundromat can expect a net margin of 20%–35%, with opportunities to grow through premium services, efficiency improvements, and expanded offerings. By understanding where revenue is coming from and where costs are going, owners can build a lean, profitable business that thrives for decades.
