See how many cycles a day it takes to cover the utilities and the loan.
Machines, turns per day and price per cycle, with utilities and the equipment loan as the cost base.
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The assumptions, benchmarks, and drivers behind your laundromat projections.
A laundromat is a capacity business with almost no cost of goods and almost no payroll. Capacity is machines times turns per day times open days, utilization is the share of those cycles actually sold, and the ticket is one machine cycle, blended across a wash and a dry, so it sits around $5 to $7 even though a customer with a full load spends twice that. Cost of goods is vended soap and retail detergent only, around 6 percent, so gross margin lands near 94 percent. What takes its place is utilities: water, sewer, gas for the dryers and electricity for forty machines commonly run 15 to 20 percent of revenue, far above any other retail format.
Equipment plus plumbing, electrical and venting for a 2,500 square foot store commonly totals $250,000 to $500,000, with manufacturers' finance arms writing 70 to 75 percent of the project over ten years. Forty machines turning five times a day over a thirty day month is a ceiling of 6,000 cycles, and a settled store sells 60 to 75 percent of them. One neighbourhood store does roughly $200,000 to $400,000 a year; a figure well above that is describing a second store. The model holds debt service coverage at 1.25 or better and checks that the store is not quietly assuming every machine runs all day.
Because the store runs unattended and the cost base is nearly all fixed, two levers decide the result: how many cycles the neighbourhood buys and what each cycle costs to run. Utility rates and machine efficiency move the second one more than any pricing decision moves the first. The common way a laundromat with sound economics still struggles is a water or gas rate increase arriving after the equipment is bought, so the model is built to show how much of the margin the utilities line can absorb before coverage slips below what the lender requires.
Everything you need to know about laundromat financial modeling.
The numbers that matter most for a laundromat business, calculate any of them free.
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