The importance of (clean) clothes is a lot in this modern society. A person is judged by what he/she is wearing. So if you are in a business that provides clean clothes, you will never run out of customers. Don’t know how to start a laundry business? Keep reading because you have landed at the rightmost resource!

Clothes make the man. –German proverb

We all love to maintain a good personality. But in this fast-paced life, who has the time to visit, wait until the clothes are washed and dried? People need something that replaces their efforts to go to such laundry outlets. Here enters the on demand laundry app. With such apps, customers can set a pickup and drop location and time for the clothes, and the employee of the on demand laundry service will come to receive/deliver the laundry.

Is Laundry App Development a Lucrative Business Opportunity?

To start a business is no game. It involves countless efforts, investment of lifelong savings, and a lot of time and energy.

Hence, whichever business idea you pick has to give you the highest returns. Lest it is a sheer waste of your time, energy, and money.

  • By 2026, the projected revenue in the USA will be $33,510 million.
  • Coin laundries and laundromats generate about $5 billion in combined nationwide gross annual revenue.
  • Within the period from 2022 to 2026, the laundry market is expected to grow by 3.04% CAGR annually. (I)

Laundry App Development Opportunity

Now that you are convinced with the above figures and details, let’s hop on to how to start a laundry business app?

What Factors Affect the On Demand Laundry Service App Development?

Get full insights on how to start a laundry business in this blog. Also know the steps, business model & cost of on-demand laundry delivery app development. Let’s go through all the factors that affect formulating your laundromat business plan.

Researching Business Prerequisites

There are some important things to know before setting up a laundry business, like:

  • Does your city or town need another on demand laundry service?
  • What do the existing laundry outlets lack, which you can provide?
  • What are their services and price point?
  • How much do these outlets earn on one individual service?

All these and many other questions should be satisfied before taking a plunge into setting up a laundry business. Visit your competitors’ websites, read about their services, and observe the customer reviews to get the correct picture.

Learn From Competitors

Learn From Existing On Demand Laundry App Competitors!!
In every walk of life, we must always learn from our own and others’ mistakes. And who’s beter than a competitor to know what mistakes we must not commit in our business route?

Search how companies like Washio, Cleanly, and Rinse prosper in this on demand laundry service industry.

USPWhere To Establish? – All these companies started their first branch in metropolitan cities like New York, Washington, etc. This gave them immense exposure as their target customers are the ones who do not have time to do their own laundry. So the idea that could be a complete failure in urban towns became a smashing success story in such metropolitan cities!

Cleanly is one of the companies that is still standing strong. Its long and successful survival is its thinking of first focusing on profitability rather than scalability. It has achieved immense success by making slow and methodical expansion across America instead of just selling bulk franchises.

Not only Cleanly, but there are also multiple on demand laundry apps functioning:

  • Hampr
  • FlyCleaners
  • PandG
  • Mulberrys Garment Care
  • Edaixi
  • Laundryheap
  • Press Technologies

The Right Laundry Business Model

Every plan that gives you good returns is a successful business plan.

We totally agree with the above statement. It is only a matter of business succeeding!

There are many business models that companies laundry service businesses follow. They have, in fact, achieved great heights in the on-demand laundry service industry. We will talk about some ideas to make your on-demand laundry business get better revenue.

  • 1. Self-service Laundromats

The first business model is the most common one. It has been prevalent since the early 40s. The customer goes to a nearby washateria, puts the laundry into the machine, inserts the coins, and waits for the clothes to be washed. Once dried, they fold and take their fresh clothes home by themselves.

  • 2. Wash & Fold Services

If you plan to get a higher chunk of profit from the laundromat business, this second model is a better choice for you. Under this model, the customers come to your laundromat store to give their laundry to be washed, dry cleaned, or ironed. You or your hired staff does the chore for them. They’ll return for their fresh clothes and pay you for your service. You can also equip your business account with p2p payment apps for receiving online service fees.

  • 3. Laundry Pickup & Delivery

Let’s bump up the previous model with an even greater customer experience and higher profit margin. The customer will ask for a laundry pickup via your laundry app; your employee will pick up the laundry. It gets washed and ironed at your laundromat and then delivered to the customer in their preferred time slot.

A Base of Operations

You need a place under the roof where you will start your laundry business. There are several things to consider while choosing your base of operations, but we can divide all of them into two broad sections: space and location.

Space for your Laundromat

The place should be enough to accommodate all the machines you plan to use and some more space to store bulks of clothes from the customers. Also, the building’s plumbing and electrical output should be enough for your business to function efficiently, even on the busiest of days.

Location of your Laundromat

The location of your laundromat is as vital as the space, if not more. While looking for the right property, the goal is to aim for a place close to most of your potential customers. The best locality would be where most people live in rental homes or off-campus living spaces for college students.

Equipment &Workforce

Once you finalize the location of your laundromat store, then it’s time to fill the space. You have to hire a workforce to run the place and machines to do the work. These are the two main base of your on demand laundry app.

Used or New Equipment

You need to get the right equipment in the correct quantity. An average-sized laundromat can have about 10-15 washing machines and dryers, nearly half of that. We’ll talk more about the cost of all these machines later in the blog.

There are also a few other equipment and machinery that you need to install, like:

  • Coin Dispenser Machines
  • Credit Card Payment System
  • Laundry Carts
  • Oversized Washing Machines
  • Soap Dispensers
  • Vending Machines
  • Security Cameras
  • Crowdsourcing for Workforce

Form A Legal Entity

You need to create a business entity. You will need to file articles of incorporation with the Secretary of State or Corporation Commissioner of your state. The incurring fee depends on which state you are starting your laundry business in and also the category of business you apply for. Typically start-up paperwork costs around $200 to $1000.

Several other legal procedures are to be done, like getting an EIN (Employer Identification Number), opening a business account in a bank, taking business insurance, and much more. It is better to get a business lawyer to help you get through all these steps quickly and make the best decisions for your business and yourself.

Creating A Brand & Marketing

The most important asset of any business is not the equipment, the employees, or even the owner; it’s the brand value. With the brand image that you create in your customers’ eyes, you can boost your reach in a short time. Also, you can bounce back from a bad business phase if people start recognizing your brand.

We might not know the entire core team behind Android or iOS technologies, but we know the brand values, like their integrity and accountability.

This section of the blog ‘How to start a laundry business?’ is the most crucial tip for your lifetime! You need to have a strong marketing strategy to break into this industry and make a name for your business in the quickest time frame. The best way forward is to get your name known on all the top social media platforms like Facebook, Twitter, Instagram, YouTube, LinkedIn, etc.

It’s cheaper than renting giant billboards and will get more eyeballs to your brand. Although, you also need to do old-school marketing activities like advertising in the local papers and magazines, flyers, posters, etc.

How to Get More Customers As Users on Your Laundry App?

Going an extra mile is essential at times. We are giving out three tips to retain your old customers and attract more users to your application.

  • 1. Good UI/UX

The app experience is everything. Hence, along with good laundry services, your laundry app should be free of glitches, and no lags, and you must remove bugs from time to time.

    • 2. Giving Special Offers Regularly

The laundry service application has to provide offers to the users. Users look forward to such discounts and coupons. Therefore, this is a great way to retain the existing customers and attract new ones to install the same.

        • 3. Eco-friendly Business Practices & Policies

You must only equip the laundromat machines with environment-friendly and toxin-free things from the very beginning.

Digitization: The Great Beyond

The telephonic bookings are not very feasible and friendly at these times. People want quick service with the least interaction, and that requirement screams mobile application. An on-demand service app is the solution, and its importance can be improved by launching a supporting website.

Before starting a laundry business, you need to have a high-functioning, user-friendly on-demand laundry app. There’s a myriad of benefits and features that a mobile app brings to the table, which will benefit your business and your customers.

However, to make such a fantastic on-demand laundry app, you need the laundry app development company to handle your digitization project.

Digitizing your laundry business is just the beginning, but smart integrations can increase the returns. Take AI, for example. It can transform your business operations by leveraging automation and data-driven strategies. Integrating AI into the laundry app offers more than just automation. Here are some of the key benefits of AI integration into the laundry business app.

AI in Laundry App: Triple Your ROI With This Integration!

AI in Laundry App
AI use cases in laundry businesses can be many, but if you focus on the operational aspects, it can truly transform the way you do business. From predictive maintenance to data-driven analytics and automation, AI can bring about a 360-degree transformation to your laundry business.

1. AI for Better Output

A significant cost for any laundry business is maintaining machines like washers and dryers. For example, if a dryer or washer breaks down, the average cost of repair can be anywhere between $120 and $500+, depending on what type of repairs your machines will need.

Imagine having a large-scale setup of several machines. The money you can save by avoiding breakdowns will be enormous. Plus, efficient machines also use less water and electricity, helping you optimize operational costs.

AI can help you optimize costs by maximizing the output and reducing running expenses. You can customize the AI algorithms to monitor machine conditions and get data-driven insights on performance. Plus, AI can power predictive analytics to ensure reduced breakdowns and improved output.

2. Manage the Demand Better With AI

On-demand laundry businesses often struggle to manage high demand due to limited resources. Predicting the high demand for laundry services is challenging, but integrating AI can help. It will help you identify key patterns and customer behavior to forecast demand for optimal resource allocation.

Further, you can use AI to manage resources and auto-allocate for optimal demand management. The best way to leverage AI is to track how many customers your business can accommodate in an hour. You can also track peak hours for laundry orders and allocate resources accordingly.

3. Optimize the Laundry Pickup and Delivery

Laundry businesses often need help managing pickup and delivery schedules. AI enables on-demand laundry businesses to manage pickup and delivery optimally.

You can integrate custom AI models to offer optimal routes for faster pickup and delivery of laundry orders. Further, you can also provide real-time delivery tracking for customers with AI-based personalization.

4. Personalize On-demand Laundry Experience

AI allows you to analyze customers’ personal preferences and offer more personalized services. For example, if some customers often place orders for laundry of bedsheets and pillow covers, which differs in terms of services from others, this can be identified.

AI analyzes such patterns and offers specific services catering to customers’ unique needs.

5. Provide AI-based Support

No customer likes to wait, and this is where AI-based chatbots can help. You can customize these chatbots and integrate them into your app for faster responses.

They can quickly solve user queries and improve the overall service experience. AI-based chatbots can also help gather key data like personal preferences, frequency of orders, and more.

Looking to Maximize ROI for On-demand Laundry Business?

Access Scalable AI-based Integrations With Top AI Development Company!

The Cost To Start A Laundry Business

How much does it cost make an app to start a laundry business with an on-demand laundry app like Cleanly?

Well, the short answer would be around $200,000 to $400,000 and more as you grow bigger in size. Now let’s get a detailed budgeting breakdown for setting up a laundry business.

Building a Laundromat will cost you more than an already existing one. If you choose to build your own Laundromat for somewhat 2,000 sq. foot space will cost between $200,000 to $500,000, including the machines (washing machines, dryers, etc.)

If you own a space and only need to buy machines, the top-load washing machines will cost you around $500-$700 each, while the front-loading machines will cost between $3,500 to $20,000 each, depending on the size of the machine. Dryers will cost you around $5,000 to $6,000 per dryer. All in all, to fully stock a Laundromat, you would need $150,000 to $400,000.

An app like Uber For Laundry or On Demand Laundry App Development is a must for this business. To do that, you should know how to hire the best Android app developers. The cost of building a laundry app like Cleanly depends on factors like what features you need in the app, how many platforms (Android, iPhone etc.) are you thinking to build it for and many others. Developing an on-demand laundry app will cost you around $10,000 to $25,000.

Ending the ‘How To Start a Laundry Business’ Guide…

Man is searching for automation in all walks of life, and the business that can provide this automation will have his money. You need to make your on-demand laundry app a full-circle loop that starts from picking up the dirty laundry to dropping off fresh ones.

Giving a complete service with a luxurious touch will help you win your customers’ hearts and money. And to achieve such feats, you need to have the workforce and technology walk hand-in-hand. If you are motivated to create your own laundry and dry cleaning service app, get in touch with Excellent Webworld.

FAQs on Laundry Service Business

Is a laundromat a good business?

With schedules getting busier, laundromat is a very good business. People don’t have the time and patience to do the menial chores at home. Hence, the nearby laundromats earn a lot. Also, you get a plus if you have digitized your business.

How to grow my laundry business in the USA?

Growing a laundry business in the USA is an opportunity to grab in this decade. The specific reason behind the same is that this decade has seen a significant rise in digitization. As a result, you can launch software or a mobile app to boost the bookings on your app.

How much time will the laundry app development process take?

You can’t get a fixed time frame to develop a laundry app without making a few important choices beforehand.

  • Which platform/s are you planning to launch your app for?
  • Would you prefer the native or hybrid app development approach?
  • What are the app features you want in your laundromat application?
  • Do you want the app to have a simple design or a high-end app design?
  • Which payment gateways do you plan to integrate?
  • Are there any advanced tech to be integrated like IoT?

Only after making these important decisions can an experienced business analyst study your request and provide an accurate timeline and pricing for the app development project.

How can a mobile app be used to manage the laundry process?

As a matter of fact, a mobile app is the best way to manage everything about the laundry process. A mobile application is instead an organized and structured way to manage the pick-ups and drops, clothes units, laundromat machine management, etc.

How does an on-demand laundry and dry cleaners app make money/profit?

The biggest chunk of revenue for a laundry and dry cleaning app comes from the price charged for the services availed by the customer. The pricing for washing, dry cleaning, ironing, would be different. Additionally, you can also charge a small price for home pickup and delivery service.

You can also offer a membership model where the customers will take up a monthly or yearly membership of your laundry service based on different categories of plans.

Other alternate revenue streams from a laundry app would be by showing advertisements of different brands, mostly related to cleaning products and other household goods.

Paresh Sagar

Article By

Paresh Sagar

Paresh Sagar is the CEO of Excellent Webworld. He firmly believes in using technology to solve challenges. His dedication and attention to detail make him an expert in helping startups in different industries digitalize their businesses globally.