Startup costs for a laundromat include the cost of construction if a new building is being built or the cost of remodeling if an older building was purchased. If building, sewer connection fees must be paid, as well as licenses and permits. Equipment, including washers, dryers, tables, chairs and vending machines, must also be purchased. The cost of the rent, utilities, insurance and supplies must also be accounted for.Continue Reading
Startup costs for laundromats can fall anywhere between $200,000 and $500,000, as of 2015. Low end costs occur when a pre-established laundromat is purchased; with these buildings, little more than sprucing up the interior is required. Turning an existing space into a laundromat drives up the startup cost considerably. Sewer, gas and water pipes must be added, as well as a plethora of electrical outlets, and the equipment must be installed; these acts alone cost around $200,000, not including the purchase price of the equipment.
Licenses are an unavoidable expense when opening any business. Requirements change depending on the location of the business, but most municipalities require business licenses, as well as fire department, sign, and air and water pollution control permits. Public improvement and impact fees may also be charged. When installing washers, a sewer connection fee ranging from around $200 to $8,000 per washer is applicable.
When building a laundry, budget for $150,000 to $300,000 worth of equipment. Consider whether the laundromat should run on a card system, which costs between $40,000 and $80,000, or on a change machine, which ranges between $1,000 to $3,000. Other necessary expenses include a water heating system, soap vending machine and laundry carts.Learn more about Managing a Business