How much to have a laundry business?

 Running a laundry business in Australia might sound like a straightforward venture—wash, dry, collect coins. But the true cost of getting started (and staying afloat) is layered, subtle, and often underestimated. So, how much does it really cost to launch your own laundry operation? Let’s break it down, Aussie-style—straight-talking, no fluff, and full of smart moves.

TL;DR: How Much Does It Cost to Start a Laundry Business?

Starting a laundry business in Australia typically costs between $80,000 and $500,000, depending on the size, type (self-service or full-service), location, and equipment model (owned vs rented). Rental options can reduce upfront costs significantly, but you’ll trade that for ongoing payments.

Now let’s dig deeper—with real numbers, real decisions, and a few clever nudges to keep your margins tight.

What Are the Core Startup Costs?

Here’s what you’ll likely need to invest in upfront:

  • Commercial washers and dryers: $30,000–$250,000

  • Lease or property costs: $1,500–$8,000/month (location-dependent)

  • Fit-out & plumbing: $20,000–$100,000

  • Council permits & insurance: $2,000–$10,000

  • POS systems & signage: $5,000–$15,000

  • Initial supplies: $1,000–$5,000

  • Marketing launch budget: $2,000–$10,000

Anyone who’s opened a physical shopfront knows the hidden costs creep in fast—bin collection, floor drainage, fire compliance, eftpos integration… the list goes on.

Is It Cheaper to Rent or Buy Laundry Machines?

This decision is a game-changer for your capital layout.

Buying Machines

Pros:

  • You own the assets

  • Higher long-term profit margin

  • Better tax depreciation

Cons:

  • Huge upfront cost

  • Repairs and servicing are on you

Estimated Cost:

  • $5,000–$18,000 per washer or dryer (depending on size and features)

Renting Machines

Pros:

  • Low upfront cost

  • Maintenance is often included

  • Flexible scaling

Cons:

  • Ongoing monthly fees

  • Lower long-term margins

Estimated Cost:

  • $150–$400/month per machine

For many first-time operators, laundry machine rental offers a soft entry into the business, keeping cash flow positive while learning the ropes. Some rental services even bundle in IoT-enabled models that optimise energy use and track revenue.

What Ongoing Costs Should You Expect?

Once you’re up and running, the “silent killers” of your profit margins begin to appear. Here’s what to budget for monthly:

  • Utilities (water, electricity, gas): $1,000–$4,000

  • Maintenance & repairs: $500–$1,500

  • Staffing (if attended): $3,000–$10,000

  • Supplies (detergents, bags, etc.): $500–$1,500

  • Software, Wi-Fi & admin: $300–$800

  • Insurance & licences: $200–$500

A laundromat in suburban Melbourne shared their electricity bill surged 20% after switching to older machines during repairs. Efficiency matters.

What’s the Best Location for Profit?

Location can make or break your business. Look for areas that tick these boxes:

  • High foot traffic: Near uni campuses, apartments, or busy strips

  • Limited competition: Fewer nearby laundromats

  • Accessible parking or public transport

  • Reliable utilities and drainage systems

A regional spot may be cheaper, but your customer base might be smaller. Conversely, inner-city leases cost more but often deliver consistent volumes.

Should You Go Self-Service or Full-Service?

Your business model changes the equation:

Self-Service

  • Lower labour cost

  • Customers operate machines

  • Open 24/7 potential

  • Minimal customer interaction

Example: A solo operator in Geelong invested $110k all-in and pulls $4k–$6k monthly net with minimal supervision.

Full-Service (wash-dry-fold, pick-up delivery)

  • Higher margins per customer

  • Increased staffing and scheduling

  • Requires better systems and customer care

One owner in Brisbane reported doubling revenue by adding a pickup service—but also doubling headaches.

Is a Laundry Business Still Profitable in 2025?

Yes—if you’re smart about energy, machine choice, and services.

With rising energy prices and sustainability expectations, older equipment eats into profits. Many owners now choose IoT-enabled or smart machines that manage energy consumption and reduce downtime.

This deep dive breaks down how small tweaks in equipment choice and energy habits can save thousands annually.

Can You Start One Without Owning a Shopfront?

Absolutely. Mobile laundry services, van-based pickups, or laundry lockers in apartment complexes are all growing. Costs drop to around $15,000–$50,000, mostly for:

  • Van or storage lockers

  • Basic commercial machines (rented or shared)

  • Insurance & app/booking tech

It’s lighter on overheads and quicker to test your idea.

Real-World Example: Sarah’s Self-Service Setup in Newcastle

Sarah, a former nurse, started her laundromat after realising her local area had none within a 5km radius. She opted to rent five machines and leased a 60 sqm space in a small shopping strip.

  • Initial setup cost: $85,000

  • Machine rental (5 units): $1,500/month

  • Monthly revenue (after 6 months): ~$8,000

  • Monthly net profit: ~$3,200

“I didn’t think it’d be this satisfying. I love seeing the same faces weekly. It's like our own little club.”

Her success came down to community rapport (liking), a lean startup model (reciprocity in offering value), and consistent, friendly service (commitment and consistency).

What Are Some Hidden Costs New Owners Miss?

Here’s what tends to catch people off guard:

  • Drainage issues—Fixing poor outflow can cost thousands

  • Council red tape—Permits take longer than expected

  • Repairs—One downed dryer on a weekend? That’s $300 in lost income

  • Noise complaints—Soundproofing might be required in residential zones

  • Payment system failures—Cashless is great, until it glitches

Don’t budget down to your last dollar—always leave a buffer of at least 10–15% for the unexpected.

FAQ: Quick Questions on Starting a Laundry Business

Q: Can I start with just a few machines?
Yes—many start with 2–4 machines, especially if renting. It’s a great way to test demand before scaling.

Q: Do I need hospitality experience?
Not really. But having a knack for systems, service, and local marketing helps. Good customer experience is half the game.

Q: How long till I break even?
Most laundromats reach breakeven within 12–24 months, depending on cost structure and location.

Final Thoughts

Starting a laundry business isn’t just about machines and detergent—it’s about smart choices, customer habits, and keeping costs flexible. Whether you dive in with full ownership or ease in through laundry machine rental , the goal is the same: clean clothes, clean profits, and cleaner operations.

And in an era where time is money, the local laundromat isn’t just surviving—it’s evolving. For more insights on energy-smart setups, this Australian guide on business sustainability is worth a look.

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