Is Owning A Laundry Mat Profitable?

Updated: Mar 28






Is it your dream to own a laundry mat? Now is a perfect time. Each laundry mat has the potential to gross a minimum of $880-1720 a month(in one location alone). The Laundry Mat business is experiencing steady growth. With little time and more work to be done, the masses require easier to conduct their daily affairs. Laundry is one such task that has undergone a significant shift in recent years. From cleaning cloths at home to public coin-managed washing machines and visiting a dry cleaner; to quickly tapping a smartphone. It has become simpler than ever before for individuals to get their attire ready when needed.


The efficient full-cycle approach being followed by on-demand laundry enterprises (from booking to pick-up, cleaning as per instructions, and delivering at scheduled time) has changed consumer behavior so that people won't settle for anything less than this VIP treatment. If you own a laundry mat, it is time to tap this technology and reinvent your business model in terms of the on-demand sector. Companies like Washio, ByNext, Rinse and others have already realized the immense potential in this technology and are thus ready for the future. Interested to know more about Uber for Laundry? Read On!


Earlier, people used to visit laundries having coin-operated machines where they could sit, relax, read magazines and even have some snacks to munch on while their clothes were being washed. No doubt, such laundries provided excellent value to customers and did a great business. But people had to spend time, and quite often, they had to stand in a queue waiting for their turn. Even if someone preferred a dry cleaner over laundry machines,

they also had to take time to visit the store to the first drop and then pick up their clothes. All these problems seem to have vanished with the arrival of on-demand startups in this space, disrupting the laundry industry.


Entrepreneurs have successfully created and launched mobile apps by which a user can request the pick-up of dirty clothes by providing his location and a suitable time and getting them delivered to his doorstep after they are washed. The ease of getting one's clothes passed with the help of tapping a button on a smartphone has caught people's fancy in a big way. Often called "Uber for Laundry," the on-demand economy has

integrated so well with this industry that traditional laundry setups are almost on the verge of being extinct. Let's take you through the value propositions being offered by startups in the on-demand laundry industry and how successful they have been. But before that, here are few facts that powered this change.


Related Article: Is Owning A Gas Station Profitable ?


Laundry Industry at a glance


According to available statistics of the year 2014–15, thirty thousand companies in the laundry and dry cleaning business made over 10 billion dollars in annual revenue. These companies served about 30 million people. If we talk about these 30,000 companies, stats

show that 70% of these were retail Laundry and dry cleaning operations while 30% were coin-operated laundry locations.


Without a doubt, the laundry industry is a huge one and has got real

growth potential. On-demand Uber for Laundry startups is disrupting this industry by hacking the growth. These on-demand laundry companies are increasing their customer base not by steps but by leaps. The fact that so many investments have been

made in the on-demand laundry space is also an indication of these companies' bright future. Here's a list of few companies in the on-demand laundry space that

have attracted funding and are doing good.


- Cleanly = Founded in the year 2013. Received seed funding of

$2.3 Million.

- Washio = Founded in the year 2013 and has received funding of

$16.8 Million.

- Taxi = Founded in 1990. They changed their business model

to on-demand. Got $123.2 Million.

- Laundrapp = Founded in 2014 and received $5.9 Million

funding till date.

- Rinse = Founded in 2013 and received $3.5 Million.


There are many more on the list, which are growing rapidly. The companies listed above operate in different geographical location and have their unique selling points with other business models. Let us take you through the three possible business models in the on-demand laundry sector or, as they say, the "Uber" for Laundry sector. If you own a Laundry / Dry Cleaning Service Business and have a team of specially trained staff which can help you create an excellent experience for your customers, then on-demand on-site a model can work best for you.


Specific technology solutions can help your customers:


- Schedule a pick-up according to their time.

- Specify laundry preferences along with the request (if any).

- Get prompt notifications on their phone when the clothes have

been cleaned.

- Pay your bills quickly — online, COD, or other options chosen by

you.

- Receive clothes delivery at their specified time.


Besides all this, you get to create an incredible quality and experience for your customers with speedy turnaround and control over your vetted cleaners. All activity of your mobile

workforce can be tracked in real-time. The on-demand in-store model is best suited for entrepreneurs who want to deliver a customer-friendly environment by enabling them to drop off their clothes at laundromats located in specified areas in the city. This model does not require a dedicated staff for pick up. Instead, it is handled by kiosks where users can add details of the clothes being dropped.



This model can help your customers:


- Drop off their dirty clothes at a laundromat.

- Add details for each cloth and know the prices.

- Add specific delivery times to receive clothes.

- Make transactions from the app.

- Marketplace (Aggregation Model)


Another business model possible in the on-demand laundry space is the aggregated model, where an app acts as a marketplace. This business model can be adopted by anyone, irrespective of owning a laundry. Over here, information is provided by multiple third

parties, whereas the marketplace operator processes transactions. All services are delivered and fulfilled by the participating laundry providers. In this model, an entrepreneur can

take a cut out of every transaction happening on the platform. This model gives you a massive database as all users are primarily your customers.


This model helps users:


- Choose a laundry store based on ratings and reviews.

- Give a rating and review to laundry after services have been

provided.

- Filter laundries based on prices, ratings, location, etc.

- Make easy transactions on the platform.


Conclusion


Open your door to a profitable business with little competition and huge margins; these laundry mats are among the most profitable businesses around. The fact that everyone wants to wear clean clothes makes the laundry industry an evergreen one and highly scalable. Still, dreaming? Get Started Now!

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