Coin-operated laundry franchises are becoming a business venture that is increasingly attracting attention from entrepreneurs. One reason is the growing demand for fast laundry services.
However, this franchise requires considerable preparation, especially in terms of capital. Although the potential profits are substantial, they can also be substantial.
The following is a detailed explanation of coin laundry franchises, starting from the advantages and disadvantages, capital requirements, details of expenses and income, as well as franchise recommendations.
Advantages and Disadvantages of Coin Laundry Franchise
As with any business, a coin laundry franchise certainly has advantages and disadvantages that you should consider.
1. Advantages
- Return on Investment (ROI) is quite high, it can reach 20% – 35%
- Management is easier so it is easy to manage by beginners
- Not a seasonal business with high and stable demand levels
- Resilient to various economic problems, both domestic and foreign
- Get results immediately
- Doesn’t require many workers
- Flexible, can be a full time job or part time job
- Has enormous development potential
- It is very difficult to manipulate because the customer does everything himself.
2. Disadvantages
- Too many competitors
- Requires large capital
- Must be versatile and always ready to fulfill customer requests and those who need help
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Initial Capital That Must Be Prepared
1. Automatic Washing Machine and Dryer
This is one of the main components of the initial capital for a coin laundry franchise. Automatic washing machines and dryers must be carefully selected to meet the business’s capacity and operational needs.
The cost to purchase this machine ranges from IDR 50 million – IDR 150 million, depending on the brand, capacity and features.
2. Business Place
Whether renting or purchasing, a coin laundry business must be designed to meet its needs. Renovations or rebuilding may be necessary.
Costs can vary greatly, depending on the condition of the building, with estimates being as high as Rp. 50 million.
3. Coin or Token Payment Technology
Coin or token payment systems require technology that must be purchased and installed. The software and hardware for this coin or token payment technology can cost an additional Rp10 million.
4. Other Additional Equipment
In addition to washing machines and dryers, coin-operated laundry franchises must also provide folding tables, laundry baskets, and other cleaning equipment. The cost for these additional items is approximately Rp 5 million.
5. Initial Stock of Coins or Tokens
When a new business opens, you’ll need to establish an initial stock of coins or tokens as a means of payment. This is crucial to ensure smooth business operations. The cost of providing this ranges from Rp 5 million.
6. Initial Operational Funding
For the first few months you will need to have funds to pay for rent (if renting), utilities, employee salaries (if any), and other routine expenses.
Initial operational funds for the first few months are estimated to be around IDR 20 million.
7. Advertising and Marketing Costs
Advertising and marketing are crucial for letting the public know about your coin laundry business. The cost depends on the type of promotion you’re conducting.
8. Business License and Insurance
Of course, you must have a business permit from the authorities to have peace of mind when running your business and insurance to protect all your assets from unwanted events.
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Estimated Income and Expenditures Each Month
Some factors that must be looked at to calculate monthly income are:
- Average orders per day
- Laundry price per kg
- 30-day revenue target
For example, your daily target is 50 kg at a price of 10,000 rupiah per kg. The calculation is as follows:
(Laundry Target per Day x Number of Days per Month) x Laundry Price per Kg
= (50 x 30) x 10.000
= 1.500 x 10.000
= 15.000.000
So, the monthly income that will be earned is IDR 15,000,000
However, this isn’t net income, as you also need to factor in monthly expenses. If your laundry business expenses are around Rp 3 million, the calculation is as follows:
Monthly Income – Operating Costs
= 15.000.000 – 3.000.000
= Rp12.000.000
So, the net monthly income that you will get from the coin laundry business is IDR 12,000,000.
Coin Laundry Franchise Recommendations
If you don’t want to start a business from scratch with a large amount of capital, then you can choose the successful laundry franchise below.
1. eMAM Express
This is the first laundry franchise to obtain a Franchise Registration Certificate (STPW) from the Ministry of Home Affairs.
The franchise registration fee ranges from Rp 50 million to Rp 360 million for five years, including installation and interior design, and a royalty-free fee for the first year. Subsequent years will require a payment of Rp 75 million per year.
2. Laundry Coins
This franchise offers business packages ranging from Rp 38 million to Rp 414 million. The facilities provided are comprehensive, including a washing machine and dryer, liquid detergent and softener, a steam iron and ironing board, a digital scale, a cash register, and a laundry basket.
3. Coin Laundry
This franchise offers a variety of business packages, ranging from Rp 45 million to Rp 175 million. Each package, of course, offers different amenities.
However, most packages include a washer and dryer, a coin box, a basket, perfume, liquid detergent, a stain-repellent package, a cash register printer, plastic bags, a digital scale, and a folding table. Within Java, shipping, installation, and training are free.
4. Londria
The advantage of this coin laundry franchise business is that it uses imported washing machines and dryers from the United States and Europe.
However, Londria still exempts its partners from royalty fees or franchise fees, and even has the potential to provide up to 100% cashback on franchise fees.
The initial capital outlay starts at IDR 45 million for the Business Package and IDR 185 million for the franchise. The estimated payback period is around 7-8 months, but the minimum daily revenue must be 10 loads at IDR 20,000 per load.
5. MaxPress Coin Laundry
The initial investment to own a MaxPress franchise is Rp149 million, excluding royalty fees. The estimated net profit is Rp24 million per month, allowing you to recoup your investment within 6-7 months.
For those of you who are still short of capital, MaxPress also offers an installment system of IDR 2.3 million per month.
6. Mr. Klin
Having been known since 2009, this company, which has received the Superbrands Indonesia award, already has 200 branches throughout Indonesia.
Mr. Klin offers a starter package priced at Rp 53 million for home businesses and a self-service laundry franchise with prices ranging from Rp 219 million to Rp 287 million. All packages are royalty-free.
7. The Daily Wash
The Daily Wash Laundromat (TDWL) opened in 2018 and in just three years has opened 128 branches in 25 cities. The franchise reportedly recovered its investment in nine months.
Franchise fees range from Rp 395 million to Rp 750 million, with a Rp 50 million royalty fee. Included amenities include a washer and dryer, a coin changer, and installation services.
So, are you interested in a coin laundry franchise? When starting your business, don’t forget to have a management application to make running it easier.
One of them is the Labamu application which is designed to encourage business growth with various helpful features in it.
One of them is Labamu Desktop, which makes this application accessible at any time by simply opening a browser and logging in with email.
Come on, download the Labamu app on Google Play or the App Store to make it easier to run your coin laundry business!
