While there are many factors you should consider when purchasing a laundromat, location is one that should not be overlooked. Approximately 85 percent of laundromat customers said that their decision on which laundromat to use was based on proximity to their home, according to Readex, Inc. data cited by The Coin Laundry Association. Below are some key demographics to focus on when deciding where to open your business.
Renters Versus Owners
An area with apartment buildings is ideal, as it can present a high number of potential customers. Even though some apartments offer laundry facilities, they are usually in the basement and do not offer enough washers and dryers for the tenants’ convenience. However, areas with three- or four-family homes can also indicate a good location for your business, as it is not uncommon for only one family to have access to the basement with the washer and dryer amenities.
Working class and lower income areas tend to have a higher demand for laundromat services, because families in these areas are less likely to own washers or dryers. Real estate prices in these areas are usually more affordable and can help keep your purchase costs low. It is important to investigate your potential laundromat site carefully to make sure the location offers a feeling of safety and security, in the interest of both you and your customers. Do not rule out upper middle class areas, since laundromats can flourish in these areas as well. However, customer expectations can vary and additional services may need to be provided in these areas to ensure your business has a competitive edge.
Accessibility and Traffic
The best laundromat sites will be easily visible, accessible and located in places with high foot traffic. Consider opening somewhere in or near a shopping center, where your business is sure to be seen by people on their way to get groceries or a manicure. A location near other stores ensures that your business will be seen, and is appealing to customers who may want to tackle two chores at once. Remember that parking is important to your business, so the location should be busy but not overcrowded.
If you are thinking of purchasing a laundromat or expanding your laundry business to a new location, access to affordable financing is essential. Contact a representative at Eastern Funding to discover your options for moving forward.