Quote:
Originally posted by DrinkingHard
I have been thinking more often about opening up a laundromat. Think about it... The start up cost is about a dozen heavy duty washers and dryers plus extended warranties on all the machines if they break down. Plus location and a huge power bill... You pay some kid $6 an hour to break change and you throw a shitload of food and video games in the place for people to spend on while their laundry is going on. Most of the vending machine people give you a deal 50% of the profits go to you and you don't have to spend a dime!
But the upside is if you put this business in a low income area Stywith lots of apartments you will have a ton of clientele and it is all cash!
I have been thinking about it a lot more often recently.
DH
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Startup costs on a decent new laundry mat will run you close to 500k if you do it right. You have to think about the plumbing and all the new electrical that has to be done. If you're going to set it in a shopping center, those places aren't set up for that. You're going to have to pay to bring that all in. It's enormous. A buddy of mine picked up a thrashed laundry mat for a little under 100k and in 9 months has turned it around to 8k net per month. His costs are around 4k including rent. His uncle owns two laundry mats in orange county and NETS 25k a month. Yes, all in cash. It's a lot of work though. If you think paying a kid $6 bucks an hour to keep it up is going to cut it, it's not. Machines go down, even new ones, and you're constantly repairing them. I've learned a lot about the business through him and it's definetely a good business because it's recession proof. You always have to wash your clothes.