Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape. Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Now that you’re up to date with the laundry industry let’s start refining your business idea. At this stage, you’d rent a bigger commercial space and hire staff, reducing your profit margin to 15% and a profit of $30,000. If you could serve 20 clients a day and each spends $2 to wash and dry a load of laundry, you’ll be earning nearly $30,000 in annual revenue and more than $10,000 in profit assuming a 35% margin.Īs you gain more clients and add more machines, your annual revenue could climb to $200,000 a year. In your first year or two, you could set up a basic wash and fold laundry with five washers and five dryers. The potential earnings vary widely, so it’s up to you to make your business a success. Industry analyst AmericanDr圜 estimates that most small dry cleaners generate about $200,000 a year in revenue. Laundromats generate revenue anywhere between $30,000 to $1 million each year, with profit margins running from 15% to 35%. How much can you earn from a laundry business? Setting up a business name and corporation Here’s a cost breakdown for a basic wash-and-fold laundry, excluding the cost of the commercial space or building: Start-up Costs Laundromats and dry cleaners, on the other hand, can cost $500,000 or more due to the significant equipment requirements. The average startup investment for a laundry is $40,000. How much does it cost to start a laundry business?Ĭosts vary, but if you’re starting a small wash-and-fold operation, you’d need as little as $20,000, while larger operations could cost $200,000 or more. Number of businesses – The US is home to about 35,000 laundromats, according to industry expert Martin Ray Laundry Systems(( )), and more than 14,000 dry cleaners.(()).Growth forecast – The market is expected to grow 4% annually through 2028.(( )).

Industry size and past growth – The US laundry facilities and dry-cleaning services market was valued at more than $10 billion in 2020(( )), after posting steady growth from a little over $8 billion in 2016.(()).Despite the recent pandemic-driven slowdown, market analyst IBISWorld expects the US dry cleaning industry to grow nearly 6% in 2021.(( )) Industry size and growth )) With an impressive 95% success rate, laundry businesses boast an average return on investment of nearly 30%.ĭry cleaning is doing particularly well in recent years. The US is home to about 35,000 laundromats, which generate some $5 billion in annual revenue, according to industry expert Martin Ray Laundry Systems.((.

Laundry supplies