Coin Laundromat for Sale – How to Find One that Makes Sense

Home > Laundromat Articles > Coin Laundromat for Sale – How to Find One that Makes Sense

I am often asked how to find a coin laundromat worth purchasing.  First, it is not difficult to find a laundromat for sale.  I’ve seen laundromats for sale through business broker listings, classified ads, and even direct owner inquiries.  The real challenge is determining whether or not the laundromat makes sense based on your personal and financial goals.

Target Income and Return on Investment

Before you look at any laundromats, it is important to determine the desired net income from the laundromat.  In other words, how much money do you want the laundromat to generate?  Most laundromats typically generate $4,000 – 8,000 net income and 15-24% return on investment (ROI).  Identifying these targets will help determine the price range of laundromats you should realistically consider.

Driving Distance

How far are you willing to drive to manage or check on your laundromat?  As a first-time purchase, I suggest locating a laundromat within a thirty minute driving radius.  Imagine having to drive an hour or two each way.  If you’re planning to personally manage the store, would you prefer commuting thirty minutes compared to an hour or more?

Make a List

The next step is to make a list of all the laundromats with your thirty minute driving radius.  A quick way to compile your list of prospective laundromats is to check your local Yellow page directory or search for this information on the Internet.  After you compile the list, simply check the address using an Internet mapping program such as Google maps, Yahoo map, or MapQuest.  These programs will help you filter out the ones that are within thirty minutes driving distance and ones that are not.

Figure Out Cash Flow

Now that you have a list of prospective laundromats, the final step is to estimate how much money they are generating.  On average, a washing machine in a coin laundromat is used between three and five times a day.  Based on this average, here is an easy formula to estimate the total laundromat income:

(# of washers) multiplied by (average price to wash a load) multiplied by (4 cycles per day) multiplied by (30 days in a month) equals (total estimated monthly gross income of washers in laundromat)

30 x $2.50 x 4 x 30 = $9,000 / month.

Now that you’ve estimated the washer income, simply multiple the washer income by fifty (50) percent and you’ll have an estimated income for the drying machines.  Using our example above, the dryer income would be approximately $4,500 / month.  Adding both figures together, the laundromat should be grossing approximately $13,500 / month.  Since the net profit for most laundromats is 35 to 50%, the laundromat example we just described should be generating between $4,725 and $6,750 per month.

I recommend visiting at least twenty different laundromats and run through this exercise. After visiting multiple laundromats and calculating their gross and net income, you should have sufficient preliminary information to help you determine which laundromats are desirable and worth acquiring if possible.

———————————————-

About Brian Brunckhorst

Brian Brunckhorst is one of the top experts on laundromats. He is dedicated to teaching entrepreneurs how to find, evaluate, analyze, and buy a coin laundromat. Brian is also the author of the best-selling eBook, “Secrets of Buying and Owning Laundromats”, and the Laundromat Teleseminar System.