How Do I Price My Laundromat Business Profitably?
- Nate Jones, CPCU, ARM, CLCS, AU
- Nov 4
- 2 min read
Setting the right price for your laundromat business is key to staying profitable and competitive. Whether you’re deciding how much to charge customers for wash and dry services or determining the value of your business for sale, accurate pricing starts with understanding your costs, market trends, and customer expectations.
At Wexford Insurance, we help laundromat owners protect their investment with specialized insurance programs. . If you’re starting or selling a laundromat, make sure insurance is part of your pricing strategy.
1. Understand Your Pricing Goals
There are two main scenarios:
Customer Pricing: How much to charge per wash, dry, or specialty service.
Business Valuation: How to price your laundromat if you’re selling or attracting investors.
Both require different approaches but share common factors like operating costs, market demand, and profitability.
2. Factors That Influence Laundromat Pricing
Location: Urban areas often command higher prices due to demand and real estate costs.
Operating Costs: Utilities, rent, maintenance, and labor significantly impact pricing.
Equipment Quality: Modern, energy-efficient machines allow for premium pricing.
Competition: Analyze local competitors to stay competitive without undercutting your margins.
Additional Services: Offering dry cleaning, wash-and-fold, or pickup/delivery can justify higher prices.
3. How to Price Wash and Dry Services
Calculate Cost Per Load: Include water, electricity, detergent (if provided), and machine depreciation.
Add Profit Margin: Typically, laundromats aim for a 20–35% margin.
Benchmark Against Competitors: Check local rates to avoid pricing yourself out of the market.
For small business pricing strategies, explore the SBA guide
4. How to Value Your Laundromat for Sale
Business valuation often uses:
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization): Multiples range from 3x–5x for laundromats.
Revenue Multiples: Annual revenue multiplied by industry-standard factors.
Asset Valuation: Equipment, leasehold improvements, and property value.
Learn more about energy-efficient upgrades at the energy government
5. Don’t Forget Insurance Costs
Insurance is a critical part of your pricing strategy. Protecting your investment ensures stability and peace of mind. Common laundromat insurance policies include:
Tips for Maximizing Profitability
Upgrade to energy-efficient machines to reduce utility costs.
Offer loyalty programs or bundle pricing for frequent customers.
Diversify services (e.g., vending machines, Wi-Fi, wash-and-fold).
Final Thoughts
Pricing your laundromat business is more than just setting wash and dry rates—it’s about understanding your costs, market trends, and long-term goals. Whether you’re starting fresh or preparing to sell, accurate pricing ensures profitability and sustainability. Don’t overlook the role of insurance in protecting your investment and maintaining financial security.
Ready to safeguard your laundromat business?
Contact Wexford Insurance today for a tailored insurance solution that fits your needs.
