The laundries have been those businesses where there were almost never staff and many have always wondered if it is really a profitable business, since all households have a washing machine. Thus, what was previously a rarity imported from the United States, today has become an investment that many consider “passive.” But is it really?
The Creator of Content Adrián G. Martín has visited one of the laundries the Wash in Madrid, leading chain in Spain with more than 350 centers, to discover how much it costs to open one, what profitability offers and if it really is a business that generates income without hardly work.
You may be interested
A young Spanish who works in the United States reveals his salary of thousands of dollars: “I don’t do it to show off”
Adriana Carvajal, former Google worker: “If they ask you about your salary expectations, don’t give any number”
The first surprise comes with the initial investment. According to Daniel, Wash Expansion Director, setting up a self -service laundry requires about 80,000 euros between machinery, work and equipment. “We start from a minimum investment of 45,000 euros, but we must add the work costs, which usually represent an additional 25 or 30%,” he says. In total, with five or six machines, you can open a completely operational center for that figure.
“It is not a passive business, but disregarded”
Although many see it as an automatic source of income, Daniel is clear: “It is not a passive business. It is a unattended business, but needs management.” It is not necessary to be physically in the premises, but control the maintenance, cleaning and stock of products. “You have to be aware that everything works, that the laundry is clean and to offer a good experience to the client,” he emphasizes.
The Wash has designed a completely automated system: the openings and closures of the premises can be done remote, the incidents are managed online and the payments are centralized in a machine that accepts effective or card and emits electronic invoices. Everything is designed to simplify daily management.
Each machine can generate 1,000 euros per month
Profitability is the main claim of the model. On average, a laundry is about 5,000 euros per month, although the best located premises can exceed 12,000 or 13,000 euros per month. Each machine, according to the Wash, must generate between 800 and 1,000 euros for the business to be profitable.
“On average, the investment is recovered in three years,” explains Daniel. With an approximate margin of 50%, the numbers are striking. “An average invoice 60,000 euros a year. In three years there are 180,000. With a 50%profitability, about 90,000 euros are earned, enough to recover the initial investment.”
Fixed expenses include rent, about 1,000 euros per month, insurance, call center service and maintenance. Variables (water, light, gas and detergents) represent 25% of the total turnover. In total, the costs are very controlled, which allows high margins compared to other retail businesses.
“The location is the key to success”
Not everything depends on the machines. Daniel insists that the location makes the difference between a profitable laundry and another that barely covers expenses. “We use geomarketing tools to find the areas with greater transit and visibility,” he explains. A main street or a commercial area close to small homes usually guarantees a stable demand.
The client’s profile has also changed. “The floors are smaller, people have less time and seek comfort. Here the laundry is made in an hour and with an average expense of about 10 euros per month per customer,” says the manager.
The growth of the sector relies on these new urban habits. In Madrid, for example, self -service laundries record demand peaks in winter, when it is more difficult to dry clothes at home. And more and more franchisees open a second or third place: 30% of the Wash investors repeat.
A model without canon or royalties
One of the peculiarities of the Wash is that, despite being a franchise, it does not charge entrance canon or royalties. Its business model is based on the sale of soap and the softener to the franchisees. “Our benefit comes from the fact that the laundry works well. The more the franchisee invoices, the more products it buys. It is a relationship in which we all win,” Daniel summarizes.
The average detergent spending represents between 7% and 8% of the billing (about 100 or 200 euros per month), a cost that franchisees assume easily thanks to the operating margin that leaves the business.
Digitization, the future of the sector
Far from being saturated, the self -service laundry market continues to grow, especially in large cities. The trend points towards total business digitalization: remote control, sales analysis, loyalty systems and broader local with more washing machines and dryers.
Among the most common mistakes, Daniel notes not to analyze the location well and not digitize management. “Many do not know how much they are selling or who their customers are,” he warns. Therefore, the brand is committed to technology that allows to monitor all aspects of the business in real time.
“This is a simple business, but with its peculiarities,” he concludes. “You have to choose the place well and rely on a brand that supports you. With that, profitability comes alone.”