![How to plan and track the budget of your laundry and dry cleaning service [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-5_93a0f0d1-c173-40ff-bdf8-064e665f7e37.png?v=1715856360&width=1100)
If you don’t plan and track your laundry and dry cleaning budget properly, you're setting yourself up for failure.
When we developed our strategy pack for laundry and dry cleaning business owners, we saw a lot of 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 laundry and dry cleaning business's finances around and set you on the path to success!
Get the budget tracker tailored for laundry services
Most laundry service owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for laundry services
Here is an example of a (very) detailed budget for a laundry and dry cleaning business, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for laundry and dry cleaning space | $3,000 | $36,000 |
| Electricity | Power consumption for machines and lighting | $1,200 | $14,400 |
| Water | Water usage for washing machines | $500 | $6,000 |
| Gas | Gas for dryers and heating | $400 | $4,800 |
| 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 | $3,500 | $3,500 | $42,000 |
| Dry Cleaning Specialist | 2 | $2,500 | $5,000 | $60,000 |
| Laundry Attendants | 3 | $2,000 | $6,000 | $72,000 |
| Customer Service | 2 | $2,000 | $4,000 | $48,000 |
3. Supplies & Inventory
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Detergents & Cleaning Agents | Soaps, detergents, and other cleaning agents | $1,000 | $12,000 |
| Packaging Supplies | Plastic covers, hangers, and bags | $300 | $3,600 |
| Machine Maintenance | Regular maintenance of washing and drying machines | $500 | $6,000 |
| Cleaning Supplies | General cleaning supplies for the facility | $200 | $2,400 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $400 | $4,800 |
| 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 | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Uniforms | Staff uniforms and aprons | $200 | $2,400 |
| 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 | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some laundry services make 5x more profit than you!
We have studied the strategies of the best laundry services in the world. Replicate them now!
What are the biggest expenses for a laundry and dry cleaning?
Be mindful of these potential pitfalls. Here are five major costs every laundry and dry cleaning business owner needs to consider, along with some tips on how to manage them effectively.
- Detergent and cleaning suppliesThese can take up a significant portion of your budget. You're dealing with consumables, and prices can vary based on quality, brand, and supplier. To keep these costs in check, focus on bulk purchasing, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium products that don’t add enough value.
- Your staffYour employees are essential, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a certain number of staff to provide quality service and keep operations running smoothly. You can optimize labor costs by scheduling efficiently, cross-training employees, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your facilityPrime locations come with high rent, but they can attract more customers. Utilities like electricity, water, and gas are essential but can 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 large or too upscale for your needs.
- MarketingYou need to promote your laundry and dry cleaning services, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we provide in our pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Equipment and maintenance costsThis includes everything from washing machines and dryers to pressing equipment. 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 laundry and dry cleaning service?
Here are practical tips to help you, as a laundry and dry cleaning business owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Detergents and Cleaning Agents | Buy in bulk from wholesalers and negotiate for discounts on large orders. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install energy-efficient washers and dryers, and use LED lighting throughout your facility. |
| Marketing | Run social media contests for your laundry service and collaborate with local influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing. |
| 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. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own garment bags. |
| 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. |
| Waste Management | Implement a waste tracking system to minimize waste and recycle where possible. |
| Technology | Invest in multi-functional laundry machines and utilize management software for tracking orders and customer preferences. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable garment covers. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes 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 spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| 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 laundry services in the world!
There are laundry services that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a laundry and dry cleaning
Yes, some expenses for your laundry and dry cleaning business are just unnecessary. They don't contribute to increasing revenue or improving customer satisfaction.
| Laundry Expense | Reason It's Useless |
|---|---|
| Luxury Waiting Area Furniture | High-end furniture in the waiting area is often overlooked by customers and can be a significant expense. |
| Premium Detergents | Unless you cater to a niche market, most customers are satisfied with standard, effective detergents. |
| Excessive Service Options | Offering too many services can complicate operations and increase costs without a corresponding increase in revenue. |
| Top-of-the-Line Machines | High-end laundry 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 laundry business. |
| Multiple Uniform Styles | Having various uniform styles 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 magazines or music often go unnoticed by customers. |
| Exclusive Cleaning Agents | Using rare cleaning agents can inflate costs and complicate supply chains. |
| Costly Decor | High-end decor 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 Lobby Decorations | Elaborate decorations in the lobby are often ignored by customers and add to the cost. |
| High-End Laundry Baskets | Luxury laundry baskets are 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 Brochure Designs | Frequently redesigning brochures 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 Pressing Equipment | Specialized pressing equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your laundry and dry cleaning service!
Managing a budget for a laundry and dry cleaning business 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 growth projects, 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 laundry and dry cleaning businesses just like yours. Get them now!
Make your laundry and dry cleaning service more profitable
We have studied the strategies of the best laundry services in the world. All their tactics are explained in our pack!
