![How to plan and track the budget of your laundromat [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-5_94eb69fe-a0e5-4793-8e95-433b9d3204bc.png?v=1715856373&width=1100)
If you don’t plan and track your laundromat budget properly, you're setting yourself up for failure.
When we developed our strategy pack for laundromat owners, we saw a lot of laundromat owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your laundromat's finances around and set you on the path to success!
Get the budget tracker tailored for laundromats
Most laundromat owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for laundromats
Here is an example of a (very) detailed budget for a laundromat, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for laundromat space | $3,000 | $36,000 |
| Electricity | Power consumption for washers and dryers | $1,200 | $14,400 |
| Water | Water usage for laundry machines | $1,000 | $12,000 |
| Gas | Gas for dryers and heating | $500 | $6,000 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $300 | $3,600 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Manager | 1 | $3,000 | $3,000 | $36,000 |
| Attendants | 2 | $2,000 | $4,000 | $48,000 |
| Maintenance Staff | 1 | $2,500 | $2,500 | $30,000 |
3. Laundry Supplies
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Detergents | Bulk laundry detergents | $500 | $6,000 |
| Fabric Softeners | Bulk fabric softeners | $200 | $2,400 |
| Cleaning Supplies | General cleaning supplies for the facility | $150 | $1,800 |
| Vending Machine Stock | Snacks, drinks, and laundry products | $300 | $3,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $200 | $2,400 |
| Social Media Management | Managing social media accounts | $300 | $3,600 |
| Print Advertising | Flyers, posters, newspaper ads | $150 | $1,800 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $100 | $1,200 |
| Promotional Events | Special events and promotions | $150 | $1,800 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of laundry machines | $400 | $4,800 |
| Uniforms | Staff uniforms | $100 | $1,200 |
| Licenses & Permits | Business licenses and permits | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $300 | $3,600 |
| Office Supplies | Stationery, pens, printer ink, etc. | $50 | $600 |
| Staff Training | Training programs and materials | $100 | $1,200 |
Some laundromats make 5x more profit than you!
We have studied the strategies of the best laundromats in the world. Replicate them now!
What are the biggest expenses for a laundromat?
Be mindful of these significant expenses. Here are five major costs every laundromat owner needs to consider, along with some tips on how to manage them effectively.
- Utility costsThese can take up a large portion of your budget. You're dealing with water, electricity, and gas, and prices can vary based on usage and local rates. To keep these costs in check, focus on using energy-efficient machines, optimizing water usage, and scheduling maintenance to ensure equipment runs efficiently. It's easy to overspend by not monitoring usage or failing to invest in energy-saving technologies.
- Staffing your laundromatYour employees are essential for smooth operations, but their wages, benefits, and training can be costly. This expense is always significant because you need a reliable team to assist customers and maintain equipment. You can optimize labor costs by scheduling shifts efficiently, cross-training staff, and monitoring productivity. However, be cautious not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your laundromatPrime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too big or too fancy for your needs.
- MarketingYou need to get the word out about your laundromat, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from washers and dryers to seating and folding tables. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient machines and maintaining them regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your laundromat?
Here are practical tips to help you, as a laundromat owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Utility Costs | Install energy-efficient washers and dryers to reduce electricity and water consumption. |
| Labor Costs | Use scheduling software to optimize staff hours and minimize overtime. |
| Maintenance | Set up a maintenance log for regular equipment checks and servicing to prevent costly repairs. |
| Cleaning Supplies | Train staff on the efficient use of cleaning supplies to reduce waste and costs. |
| Marketing | Run social media contests for your laundromat and collaborate with local influencers for free exposure. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Detergents and Supplies | Buy detergents and other supplies in bulk to take advantage of discounts. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on best practices. |
| Waste Management | Implement a recycling program for detergent containers and other recyclable materials. |
| Technology | Invest in multi-functional machines that offer both washing and drying capabilities to save space and costs. |
| Customer Amenities | Provide cost-effective amenities like free Wi-Fi and comfortable seating to enhance customer experience. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes for laundry services to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce over-ordering. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music to create a pleasant atmosphere for customers. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best laundromats in the world!
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Expenses that are just useless for a laundromat
Yes, some expenses for your laundromat are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Laundromat Expense | Reason It's Useless |
|---|---|
| Luxury Seating | High-end seating options don't necessarily attract more customers and can be a drain on the budget. |
| Premium Detergents | Unless you are targeting a niche market, most customers are satisfied with standard detergent options. |
| Excessive Machine Variety | Having too many different types of machines increases maintenance costs and can confuse customers. |
| High-End Washing Machines | Top-of-the-line machines are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your laundromat. |
| Multiple Uniform Styles | Having various uniform styles for staff increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Detergents | Using rare detergents can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized laundry bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Tableware | Luxury tableware in waiting areas is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Signage Designs | Frequently redesigning signs is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Folding Tables | Specialized folding tables are often unnecessary and add to costs without a proportional benefit. |
Stop working with a tight budget for your laundromat!
Managing a budget for a laundromat when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in improvements or new services, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to reinvest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of laundromats just like yours. Get them now!
Make your laundromat more profitable
We have studied the strategies of the best laundromats in the world. All their tactics are explained in our pack!
