Laundry Industry Profile

Basic Facts

Coin laundries are an all cash, no inventory business that offer investors many advantages, including high ROI, liquidity, tax benefits, and fast growing equity. Here is some basic information about self-service laundries:

The cost of buying an existing vended-laundry ranges from less than $100,000 to over $1 million, depending on size, age, and net income.
Laundries typically occupy between 1,500 and 4,000 square feet of retail space, however, some go up to 6,000 square feet. depending on market size, the density of the trade area, and the quality and number of competitors.
Most laundries occupy retail space that is rented on a long-term lease (10-25 years). Negotiating a satisfactory lease is the single most important part of developing a new laundry, or purchasing an existing one. PWS is an expert in this area and handles lease negotiations for all new stores we develop.

Laundries are a Growth Industry

There are over 35,000 coin- and card-operated laundries in the United States, generating more than $4.0 billion in annual revenue. And these numbers are growing!

Laundries perform especially well in densely populated, lower income areas. The primary customer base is the estimated 100 million people who live in rental housing – the fastest-growing housing segment in the nation.

Coin laundries also appeal to a broader array of customers because of their convenience, time and cost savings, heavy-duty equipment not found in the home, and fluff and fold services for busy workers on the run.

Business Remains Brisk During Recessions

In a slow-growth/no-growth economy, the self-service laundry market expands to meet the needs of people who are unable to repair, replace or purchase new washers and dryers. Declines in home ownership also increase demand, as people move to apartment housing with inadequate or non-existent laundry facilities. Throughout economic downturns, the outlook for the coin laundry business remains positive and vibrant.

Industry Trends

Business is constantly changing, and the laundry business is no exception. Here are several recent trends:

New Services

Most laundries were historically unattended. Today they’re offering new services, such as snack bars and bottled water, and employing full-time, on-site personnel.
Extended Hours

Most laundries are now open from 6:00 AM to 10:00 PM. Some even operate 24-hours a day to meet ever-increasing demand.
New Payment Methods
The term ‘coin laundry’ has been changed to ‘vended laundry’ because, in addition to coin-vended equipment, machines can now be activated by debit-cards and smart-cards.

What Can You Expect from Your Investment in a Coin Laundry?

Are you finding that the stock market isn't giving you the return you expected? Then, learn what the coin laundry industry has to offer:

Average of 15%-30% ROI!
Good Part-Time, or Retirement Business!
Steady Income!
Increased Demand by satisfying a basic need in the community.
Own a cash business with consistent income, varying only 10% to 20% annually.
Virtually no inventory control shrinkage, spoilage or theft.
High fixed costs combined with low variable costs, means "the more volume, the more profit".
Coin laundries are "recession proof". They can be somewhat insulated from fluctuations in the economy.
Coin laundries can be run successfully on a part-time basis.
The business lends itself to future expansion or multiple store ownership.

Consider the Long-Term Investment Value of a Laundry.

Coin laundries with proven track records are sold with relative ease and at top dollar. Just like other types of real estate, laundries appreciate in value. If you've run a profitable laundry and five years later decide to sell, you may expect to find a buyer quickly and, in most cases, your laundry will command a much higher price than you paid. In many cases, stores pay for themselves in just a few years, leaving you with a 'nest-egg' that may be far better than a conventional savings account, IRA, money market, or mutual fund.

Protect Your Investment!

If you buy a laundry that has a healthy monthly gross income, you'll want to find ways to improve your store's performance and add to the overall value of your new investment:

Replace older, worn-out equipment, and keep your new equipment clean and in good working order. PWS is the only factory-authorized coin laundry distributor of Speed Queen® premier commercial laundry equipment in California and Nevada. PWS also offers a full-service parts department, supplying genuine factory-replacement parts for all major commercial laundry equipment brands.
Provide a clean, safe environment. Your customers won't want to wash their clothes in a dirty laundry. They'll expect a pleasant atmosphere that will make them feel good about being there. You may want to consider our remodeling and design services. After all, the key to success is a clean, safe store.