At some point on your journey toward starting a successful laundromat business, you’ll be faced with the choice between retooling an existing laundromat and building a new laundromat. But which is better? In this article, we’ll explore the benefits of each option to help you choose the right one for you.
Did you know that Laundrylux’s team of dedicated laundry experts will open a successful laundromat business? Contact us today to learn more about how we can help you purchase a great laundromat or build the perfect new store!
4 Reasons To Buy and Retool a Laundromat for Sale
- You want to learn the ropes
- There is a suitable business for sale in your target area
- There are no empty lots available
- Neighborhood demographics don’t support a new store
1. You want to learn the ropes
If you’re new to the laundromat business, buying and retooling an established laundromat business is a great option. An existing laundromat will already have an established customer base, an entire store of commercial laundry equipment (though this will likely need upgrading), and maybe even staff who are willing to stay on after you take ownership. This type of setup is an excellent opportunity to enable you to find your feet. After that, maybe you’ll start looking for a second location to grow your laundromat empire!
2. There is a suitable business for sale in your target area
There are many reasons why someone might decide to sell a laundromat. Just because there’s a “For Sale” sign outside the store, it doesn’t necessarily mean that the business is failing. Perhaps the owner is retiring, or they might own multiple stores and be looking to downsize. That “For Sale” sign could be the key to you owning a profitable store with a loyal customer base. And remember, even if the store is not lucrative now, once you have retooled it with efficient and profit-boosting washers and dryers, you could start bringing in serious profit in no time.
3. There are no empty lots available
One problem a future store owner may run into, particularly in well-established areas, is the lack of empty lots available to build their new laundromat. Often, the more attractive the neighborhood is to you as a prospective business owner, the more likely it is that someone else has gotten there first. If ground-up construction is impossible in your area, you can either retrofit an existing retail space or, even better, buy and renovate an existing laundromat business.
4. Neighborhood demographics don’t support a new store
There are currently around 29,500 laundromats in the US, and this figure is growing annually with the steady increase in population and the trend toward renting. However, the demographics of your neighborhood won’t always be able to support a brand-new store. Do some research into planning proposals in your neighborhood – if there is a new block of apartments on the cards in the area, then a new store could be supported by the increase in the renting population. On the other hand, if there are already enough laundromats within close proximity to each other, then buying an older store and retooling with energy-efficient equipment could be your best option. You’ll have less competition for starters and can focus on offering the best possible customer experience.
Did you know that Laundrylux will provide a complete demographic analysis of your target area to identify the most suitable neighborhoods for a laundromat?
4 Reasons to Build a New Laundromat
- You can’t find suitable laundromat businesses for sale
- You think you can beat the competition
- Population density is on the rise
- You want to own a mega laundromat
1. You can’t find suitable laundromat businesses for sale
As you’ve already learned, buying an established store is a great way for an entrepreneur to enter the laundromat business. But what if there are no suitable stores for sale in your target area? Should you abandon your goal of starting a laundromat business? Of course not! Buying or renting an empty lot and transforming it into a thriving laundry business is an excellent opportunity for investors with a hands-on approach who want to design their laundromat from scratch. Certain businesses, like restaurants, match the utility requirements of a laundromat – so if you find locations that have previously housed a food business, it could be a thrifty way to convert the space into a laundromat.
Our construction specialists can help you build a new store and guide you through everything from store layout and design to selecting the best equipment bundle for your needs.
2. You think you can beat the competition
Established laundromats in your target neighborhood are likely to have a loyal base of weekly customers that may have been using the store for many years. But this also means that their washers and dryers may be past their best. By building a new laundromat equipped with Next Level energy-efficient washers and dryers, you may be able to persuade many of these customers to try your new laundromat business instead. With the rise of more eco-conscious consumers, your new energy-efficient equipment would give them a greener option. And if helping the environment isn’t top of their list, they’ll love how they can complete their laundry faster than anywhere else in town!
3. Population density is on the rise
Population density is a critical demographic factor for new laundromat owners. Typically 12,000+ people per square mile is a good rule of thumb to support a laundromat, but if there are other stores in the area, this number will need to be higher. Population density is on the rise in many urban and suburban areas across North America, and many neighborhoods that could previously only support one store can now support two or even three thriving laundromats. If you see this trend affecting your chosen area, a brand new laundromat will serve the rising population.
4. You want to own a mega laundromat
There is a definite trend in the laundromat industry towards larger and larger stores. While high population-density areas may support two or three laundromats, they can also support larger mega-laundromat stores. Years ago, a 2000-square-foot store would have been considered big; nowadays, it is not uncommon to see a 6000-square-foot laundromat being built. While building a store this large may seem intimidating, new owners may choose this route when the numbers suggest that this is the option with the most profit potential.
Whatever path you choose, our laundromat experts can support your project every step of the way — from brokerage, financing, and construction to marketing your new store. Contact us today!
Don’t forget to check out our “7-Step Guide To Starting A Laundromat” for everything you need to know about opening a profitable laundry business.