Things to consider from a laundromat owner

Owning a laundromat can be a lucrative business. It requires few employees and is a favorite business for owners that can’t be present all the time. However, one of the biggest expenses to consider is the existing equipment. In good shape, this can be your biggest money maker. On the other hand if the equipment is constantly needing services and repairs, the business owner must make a decision whether it is more advantageous to keep repairing or invest in new washers and dryers.

One of the best case scenarios is if the business owners has the knowledge and time to repair the equipment himself. This saves the revenue that would be spent in repairs. He/she wouldn’t have to wait on repair technicians and could keep the washer and dryers serviced and maintained for free. This might, however, reduce one of the selling points of having a laundromat – not having to spend tons of time at the business.

If a business owner is constantly paying someone to replace parts and repair the equipment in the laundromat, they have to eventually consider if it’s worth the time and money they are spending to maintain outdated equipment. Parts are expensive and a repairman can charge over $100 an hour. Since a laundromat’s equipment is a huge part of the value of the business, deciding if and when to replace the washer and dryers is a very strategic decision.

When deciding if it’s time to replace equipment, the business owner must look at the chronological age, efficiency, and obsolesce of the current machines. Another factor is how the equipment has been maintained. Machines that have been services regularly and looked after, will fare much better in the long run and will last years longer. If the machines are too old, however, servicing them will become an issue. It will be harder to find a qualified repairman and parts will become scant and difficult to find.

Efficiency is a top factor to consider, too. Great strides have been made in the last decade regarding washer and dryer water and energy use. Therefore, replacing the laundromat equipment will more than likely save the owner money in the near future, even if there is a need to spend money initially. There could possibly be a tax benefit, as well, to buying more energy efficient washer and dryers. This could add to the financial benefit, too. Updated and energy efficient equipment will dramatically increase the value of the Laundromat. If a business owner is thinking about selling in the near future, they should think strategically consider updating the machines.