Most people assume opening a laundromat is as simple as buying a few machines and waiting for coins to roll in. It’s not. The essential steps to open a laundromat and make it profitable include choosing the right location, validating demand, securing smart financing, installing reliable commercial equipment, setting up efficient systems, and building consistent local foot traffic. Get those right, and you’re building an asset. Get them wrong, and you’re leasing expensive stainless steel.
I’ve spoken with small business owners across Australia who thought a laundromat was “passive income”. The profitable ones will tell you the same thing: it’s passive only after you’ve been strategic.
Let’s break down what actually works.
What are the essential steps to open a laundromat and make it profitable?
1. How do you choose the right laundromat location?
Location makes or breaks you. Full stop.
You want:
High-density residential areas
Apartment blocks without in-unit laundry
Student populations or short-term renters
Easy parking and street visibility
Limited direct competition within 1–2 km
In Australia, areas near universities or older apartment complexes often perform well. Anyone who’s lived in a small rental in Sydney or Melbourne knows the pain of a broken washing machine. That’s your opportunity.
Before signing a lease, spend time observing foot traffic. Count people. Watch who walks past. Talk to nearby shop owners. Social proof starts before you open — if locals say, “We actually need one here,” that’s a green light.
2. How much does it cost to open a laundromat in Australia?
Costs vary depending on size and location, but expect:
Lease and bond: $10,000–$40,000
Commercial washers and dryers: $150,000–$400,000
Fit-out and plumbing upgrades: $50,000–$150,000
Utilities connection and electrical upgrades
Permits, insurance and council approvals
Commercial-grade machines aren’t cheap, but cutting corners here hurts you later. According to the Australian Government’s business resource hub, planning and capital forecasting are critical in early-stage ventures (business.gov.au).
Here’s the reality: machines are your revenue engine. Downtime kills profit. Reliability builds reputation.
3. What licences and approvals do you need?
Requirements vary by council, but typically include:
Business registration (ABN)
Local council development approval
Trade waste agreement
Public liability insurance
Electrical and plumbing compliance
Check your state’s small business portal early. Delays here can blow out timelines and rent commitments.
Authority matters. When customers see a clean, compliant space with clear signage and operating hours, they trust you. Trust drives repeat visits.
4. Should you choose coin-operated or cashless systems?
This is where many new owners overthink it.
Cashless systems:
Reduce theft risk
Improve tracking and reporting
Allow loyalty programs
Enable remote monitoring
Coin systems:
Lower upfront tech cost
Familiar to older demographics
The trend? Cashless is rising. Customers expect tap-and-go convenience. And here’s the psychological edge: friction reduction increases usage. Behavioural science tells us the easier an action is, the more likely people will do it.
Make paying effortless.
5. How do you price services to stay profitable?
Pricing is psychology.
If competitors charge $5.50 per wash, you don’t automatically go cheaper. Instead:
Anchor with machine size tiers
Offer bundle discounts (wash + dry)
Introduce off-peak pricing
Provide loyalty bonuses
Loss aversion works in your favour. Customers hate feeling like they’re overpaying. Transparent pricing boards build credibility.
Run the maths clearly:
Revenue per day =
Number of machines × Average cycles × Price per cycle
For example:
20 washers×4 cycles×$6=$480 per day20 text washers times 4 text cycles times $6 = $480 text per day20 washers×4 cycles×$6=$480 per day
Scale that across dryers and seven days a week and you begin to see potential. Of course, subtract utilities, lease and maintenance — this is a business, not magic.
6. How do you reduce operating costs?
Profit isn’t just about revenue. It’s about margin.
Focus on:
Energy-efficient machines
Solar where viable
Negotiating water rates
Preventative maintenance
Smart scheduling for cleaning
Many experienced operators say maintenance discipline separates profitable laundromats from struggling ones. A $300 repair today can prevent check over here a $3,000 breakdown later.
7. How do you market a laundromat locally?
You don’t need flashy campaigns. You need visibility and community trust.
Start with:
Google Business Profile optimisation
Clear signage
Local Facebook community groups
Introductory offers
Clean, well-lit space
People choose laundromats that feel safe. Lighting, CCTV and spotless folding benches matter more than clever branding.
One owner in regional Victoria told me his best marketing was simply repainting the exterior and installing brighter LED lights. Foot traffic increased within weeks.
Consistency builds familiarity. Familiarity builds preference.
8. What additional services increase laundromat my response profit?
Here’s where smart operators lift margins:
Wash-and-fold services
Commercial contracts (cafés, gyms, Airbnbs)
Vending machines
ATM installation
Dry cleaning partnerships
Recurring commercial contracts provide predictable income. That stability makes forecasting easier.
If you’re exploring expansion models or broader laundry business insights, there’s a have a peek here helpful breakdown that explores the essential steps to open a laundromat and make it profitable in more detail, including operational considerations that many first-time owners overlook.
FAQ
Is a laundromat a good investment in Australia?
Yes, when location, demand and cost control align. It offers recurring cash flow and relatively low staffing compared my review here to hospitality businesses.
How long does it take to become profitable?
Most operators aim for 18–36 months, depending on debt levels and foot traffic growth.
Do laundromats require full-time staff?
Many are semi-attended. However, adding staff for wash-and-fold services can significantly increase revenue.
Final thoughts
Opening a laundromat isn’t glamorous. You’ll deal with plumbing, lint traps and the occasional machine tantrum. But there’s something quietly satisfying about building a business people genuinely rely on.
Clothes additional hints will always need washing. Renters will always need access. Families will always have overflowing baskets.
If you approach it strategically — location first, quality equipment, disciplined cost control and simple, trustworthy marketing — profitability becomes a system, not a gamble.
For a deeper look at planning considerations and common first-year mistakes, this practical guide on essential steps to open a laundromat and make it profitable adds further perspective worth reviewing before you commit.