Launderettes have a bit of an image problem.
They tend to be seen as places brimming with students and other people on low incomes, staffed by a woman resembling EastEnders’ Dot Cotton.
The low cost of washing machines – both to buy and to rent – had dented the launderette market to a certain extent, and many established business were forced to close down.
But given the social changes that Britain is going through, launderettes are experiencing something of a renaissance.
There are more single people than ever before, working longer hours and living busier lives. Money might not be at a premium, but time certainly is.
LAUNDRETTE RENAISSANCE
So, while the dilapidated and dingy launderette still exists, there are increasing numbers who have revitalised their decor and facilities, raised the standard of their services and courted the cash-rich, time-poor customer.
Hygiene, efficiency, safety and a better ambience, combined with the right customer base, mean that income is no longer restricted by the low prices traditional customers demanded.
Additional services are vital
Ironing, dry cleaning, clothes repair or alteration services, collection and delivery and the cleaning of special items such as duvets are just some of the ways in which the typical offer has been extended.
One Manchester-based launderette even offers internet facilities for customers so they can surf the net while doing their washing.
As self-service laundry is quite a time-consuming process, these services prevent your revenue being determined simply by how many customers can be in your launderette at one time.
Televisions, music systems, advertising from local businesses and food and drink vending machines are other, simpler methods by which launderettes are improving their image and differentiating themselves from the competition.
Instead of the old coin-operated system, many launderettes have introduced a card or token system in combination with an electronic pay point.
Of course, most launderettes have always offered services over and above the standard coin-operated washing machines – notably the service wash, where customers can have their clothing washed and ironed for a set fee.
As most custom has typically come from the local community, launderettes have tended to expand their customer base by offering services to local businesses as well as residents.
However, despite these moves upmarket in some city areas, most launderettes still tend to be located in districts where there is either a poor or particularly transient population. This still accounts for the bulk of the market.
Students and those working away from home will often not have access to a washing machine. Young professionals, particularly in London, may not have the space for one; while poorer families won’t be able to afford one.
It’s important to bear in mind that people don’t travel far to use a launderette.
There is a fair bit of bad news to swallow when it comes to the bottom end of the sector: they do not make a huge amount of money unless they have a wealth of additional services and products.
Launderettes are expensive to fit out, too. Electrolux estimate that the typical cost for a set-up is £19,550 – five standard and two large washing machines plus seven dryers.
The leasing alternative will cost around £500 per month over a five-year period, with a six-month deposit payable in advance.
Many launderettes on the market will be in need of substantial refurbishments, of which some may be legally necessary – for the example, the installation of flues, air vents, new power sockets or an extractor to remove excess water from the premises.
The business is also slightly seasonal, as the winter months bring in people who may not have dryers or space in which to dry their clothes indoors.
Undemanding business
One thing which is worth noting is that this is an extremely undemanding business, especially if the launderette is self-service.
It’s fairly secure, too, as you are offering an essential service which will be required regardless of the state of the economy.
The more added extras you offer, the more profitable – and more stressful – the operation will become.
Whether these extras are viable really depends upon whether you are operating a budget business in a low-income or transient area or whether you are aiming at businesses or the time-poor professional. Businesses in the centre of big cities can have turnovers far in excess of the small local operations.
The ‘new wave’ of launderettes and laundry services is only really just beginning.
Now is the time to think about how you can reinvent the concept and make some money out of a sector that will only expand as Britain gets busier and more time-precious.
