How much does a laundry make? Is it profitable?

Tech laundries are one of the business booms of recent years. This is due to its innovative model, which improves the users' wellbeing and adapts to their new daily needs.

This type of business is in full expansion, and facilitates the emergence of new models that not only allow us to wash clothes, but also offer home pick-up and delivery once they've been washed and ironed.  

This option has many advantages for users: 

• Saves time.
• Saves money.
• It’s comfortable. 
• Availability for washing bigger items.  
• Professional finish.
• Professional cleaning products. 
• Clothes are taken care of. 

But, how much does one actually make with a laundry of this type? Is it profitable in the short or long run? Keep reading this article and find out.

Laundry rentability: How to measure it?

If you’ve wondered how much a laundry makes, we have to tell you, the rentability on these types of places is pretty high.  

The data will tell you: investment in this sector is increasing by 48% annually. In addition, this market is estimated to move more than $181.4B per year.

And the trend is upward: more than 78% of people believe that laundry and ironing are two of the most hated household chores.

But the question we ask ourselves is: what is the profitability of a laundry?

To calculate the profitability of a laundry you have to take into account: 

• The total investment.
• External financing (if you need it).
• Laundry annual sales and revenues.
• The variable costs of the business.
• The fixed costs of the business.

Regarding the return on investment, we’ve got the following data:

Initial investment

For example, let's take Mr Jeff, a chain of laundry and delivery services.

To set up a Mr Jeff Laundromat, you need to have a 40m (130 ft) squared facility, and you must hire between 1 and 4 employees. 

As far as machinery is concerned, you need a washing machine, a dryer and an iron.

Profitability threshold

In principle, laundries such as Mr Jeff offer a high profitability threshold, which is three times the profit obtained by other types of self-service laundries.

Consider that the need for laundry is continuous, and the population is continuously growing.

In addition, society is increasingly focusing on convenience services, and this is having a positive and more specific impact on the laundry and delivery sector.

Regarding time frames, it's estimated that with a Mr Jeff laundry you will start generating profits from the eighth month, while the average payback or payback period is 30-36 months. 

Short, medium or long term?

Taking into account the payback period of the investment (30-36 months) and that the profitability of the model is around 25%, Mr Jeff laundries are a very interesting investment in the medium term.

How location affects how much a laundry earns

Choosing the right location will not only have an impact on your laundry's revenue: it can also be a key factor in building customer loyalty and determining the long-term success of your business. 

Some tips for choosing the best location for your Mr Jeff location are: 

•  Towns with a population of more than 20,000 inhabitants or that at least don’t already have this service. 
•  Preferably, in  central areas and within the city center. 
• Premises with high visibility.
• Premises that don't have other similar businesses within a radius of at least 800 meters (44 yards). 
• Premises that are close to shopping centers, schools, health centers, hospitals, offices, student residences or markets.

At Jeff we conduct a preliminary study of each location to ensure that it has sufficient traffic and favorable conditions for your laundry to have the best chance of success. 

Sources of income for a laundry

To know how much is earned from a laundry, we have to value all the services it offers, both online and offline. 

We establish two categories: 

1.  Income from one-time orders, monthly subscriptions, logistics and express service. 
2.  All services available, both through the app (online) and in-store (offline), whether laundry, ironing or dry cleaning. 

According to our data, 40% of orders in this type of business are handled directly on the premises, and the remaining 60% from online channels and platforms.

The laundry boom: is it a trend or is it here to stay?

Although we are talking about a boom or trend, the truth is that people's habits are changing, and it is becoming increasingly common to resort to services such as home laundries.

The growth of this type of business has a fundamentally demographic explanation: the "informal" tourist population and the number of immigrants in our cities is increasing. 

In addition, the number of single-person households is growing steadily, and many people do not consider putting a washing machine in their home: it is more profitable to go to a laundromat, where they save time, electricity, water, etc. 

On the other hand, our pace of life, especially in large cities, relegates household chores to the background and a much more precise organization of time.

And all this without forgetting that laundries like Mr Jeff have other potential clients, such as schools, hotels, restaurants, companies, etc. 

Do you want to open your own laundry?

Laundries are a very interesting investment, but it is advisable to analyze all the factors and develop a good project before making the decision. 

From Jeff we encourage your entrepreneurial spirit and help you to start your business. We reduce up to 32% the initial investment in Mr Jeff franchises, so you receive a ready to start business. 

 We also provide you with all the technological solutions of the Jeff ecosystem for an easy management of your business.  Request information here.