And that's only one laundromat! I can't remember if it's this guy specifically but I saw someone who does similar videos on yt a while ago and he had like half a dozen of these places.
@@caffienatedcanuck4294 I think one person could manage 2 with a tiny bit of help from spouse or friend. But as soon as you get those half dozen numbers you're looking at 5-10 hands in your bucket (I. E. A management company). I can't imagine the upkeep on a shitty month... Owning a house is a pain in the ass. Now imagine having 6 houses that all need something fixed nearly all the time! You'd be lucky to clear 100k year after year. Although if done carefully I'm sure it can be extremely lucrative.
@@AndyRock1yeah and the only thing I will add is this month he had 0 maintenance. I would be curious what the average annual monthly maintenance fee is. How often does a machine or two go down and need fixed 🤷♂️. Seems highly profitable but I was just curious!
yknow, for once this is a youtube short where its actually reasonable numbers and believable. unlike some dude recently who claimed he'd make 40k a year just from 2 vending machines
The thing he didn't loose a word about is what his initial investment was. For all we know it might be dwarfing his income. So, believable? yes. Complete? No.
@@josephwodarczyk977 Joseph's secret lemonade recipe; Equal amounts of lemon juice, water, and sugar, boiled and stirred into a syrup, then added into 3 cups of water and a sliiiiight splash of nature's goodness... freshly powdered heroin.
@@troopergames8173 So the machine like, burns the gas to create the heat instead of using electricity? Got it, thanks. We don't really use gas here outside of camping so i don't know really how it is used elsewhere.
@@Gary_Harlow I've never seen a gas-heated dryer where I live, and we use natural gas extensively to heat houses here, at least in town. Out in the country it's all LPG, but they just pipe it into the same furnaces, so I'm guessing the fuels are more or less cross-compatible. Maybe commercial dryers are gas heated, but I kind of doubt it. My guess is the "gas connections" referred to by the OP is the exhaust ducting from the dryers. If you don't clean out the lint screen at least once every other cycle and occasionally blow out the ducting, lint buildup will start fires. But everyone knows that, or I should hope they do. . Or maybe I'm just full of it and every laundromat uses gas headed dryers, I could be full of smoke.
then he said he bought no parts.... which means nothing broke that month, not every month will be like that. Machines will go down. Time of machine down will cost you money, and also the time it takes to repair it cost money. Time is money.
@@DubhghlasMacDubhghlas Down machine costs you nothing unless every other machine is in use and customers have to go elsewhere because that one machine is broken. This is almost never the case in any laundromat I've been in. I don't think I've ever seen more than 1/3 of the machines in use at any time.
Well if he understood that he'd have moved to card operated machines already instead of spending every day collecting quarters from machines (which also makes it less flexible with pricing)
@@dsracoon For a business that caters to poor people (you know, people that don't have their own laundry machines at home) locking out customers that don't have credit cards/bank cards would be a huge loss of revenue. Meanwhile spending a few minutes a day doing a task at a place he needs to be anyways costs literally nothing.
There was one for sale in my city. Price was a million and a half. It was smack in the middle of a poorer neighborhood where a lot of college students who don't live on campus also lived. About half of the value were 3 apartment's buildings (with 12 units total) attached to the same land. If I had the down payment for a loan of that size I would have jumped on it.
@@joseph1150 Most laundromats are for sale at 1million because they dont want to sell but will if someone is dumb enough to pay that much. The only reason you would pay that much is if you want to help the community rather than make a profit. A laundromat would take around 20 years to break even... Most real estate investments for that much money break even in 5-10 years.
@@QargZer Try again. One laundromat + Three 4-unit apartment buildings = 1.5 million. Intelligent people read the Entire statement before they reply so they don't embarrass themselves by jumping down a rando's throat for no apparent reason whatsoever.
@@omidm.935 What he sees on average after all the expenses isn't even close to bad. He still makes way more than most people that are working for a company and then some. In reality, you don't need to profit hundreds of thousands for it to be worth while, he is sitting pretty regardless.
That’s still a ton in California. The people who leave those comments are rednecks not living here, or people who do live here and just want to be drama queens so their comments can get likes from the first group. 😂
*Did you NOT NOTICE* that he didn't include ANY utilities and ANY of the LEASE/mortgage or INSURANCE costs or ALL THE OTHER COSTS?? *I can't believe people are literally this stupid* where they just believe a video like this WITHOUT even having ONE QUESTION about ALL THE OTHER COSTS he didn't include because they *CAN'T EVEN THINK OF JUST ONE OF THE COSTS HE DIDN'T INCLUDE, LET ALONE ALL OF THE COSTS HE DIDN'T INCLUDE.* People nowadays are super happy just to be lied to in order to give them false hope. It's so effing sad.
@@bland9876 I wanna get a heat pump A/C because of him. Gotta replace my current A/C and my furnace is 20+ years old, so that should get replaced, too. The money, though...
@@Beanzoboy HVAC tech here, I would not recommend replacing your furnace if it has not been giving you problems. Parts for those furnaces are much much cheaper than newer furnaces and they are more reliable too. Especially if you get a heat pump as that would do most of your heating until it gets colder than 10*F depending on the heat pump.
@@Redtooth75 Mine's a gas furnace, so there's not a lot of mechanical/electrical/moving parts that could fail. But companies usually give discounts if you replace both at the same time. It is old and crusty, and I'd prefer it not to start leaking gas into my house. It's a Ruud furnace (and the A/C is Ruud also) so they were put in when the house was built. The A/C is a Freon one (can't get the chemical anymore in the US) so that's gotta go anyway. Not sure it would be all that easy to find replacement parts for 20+ year old equipment.
For anyone who doesn't know what CAM means (next to rent) It stands for Common Area Maintenance, and it's a charge that all commercial tenants at a property will split. Think snow removal, exterior painting, landscaping, etc. Commercial leases tend to have this build out as a separate line item where they charge a monthly estimate, then reconcile yearly vs the actual costs.
So my questions are, how much did all the machines cost, what was your initial investment to get this all started? Also, what kind of unexpected expenses crop up for you from month to month? Oh and how long have you been doing this / what made you decide to get into this business?
That’s the thing they don’t tell you, people might think he’s good right now. However they don’t track that he might be 10-15 years in debt if not more. Laundromats depending on the store, location or how good the equipment is can cost from 65,000 - 7 million dollars. And the 65,000 laundromats are usually the ones that get the least amount of revenue. People end up leaving or reselling the property. There’s also the fact that he has to pay for plumbers, electricians, and repair man incase something happens to the store or the equipment.
My boss just bought a brand new washer which holds 30 lbs of wet clothes. It looks line the size above small but not medium. It cost 6k, not including the water pump and or the electrician to install a dedicated breaker.
@@f3n1xplat3ad0 Yea. There are specialized industrial washers they use, right? That can hold up to some public abuse? Unlike the ones in homes that are kinda precious and fragile lol.
That’s some good ass profit for such a low effort job. Really all you gotta do is cleaning, maintenance and restocking, nearly $120,000 a year is PHENOMENAL for such work
LMAO spoken like somebody who has never dealt with the dipshit public before. You'd be amazed with the stupid ass shit people can do to a washer or dryer to break it and/or ruin their clothes. Then you have to repair your equipment and deal with their bullshit on top of everything else. Yeah you can put up not responsible signs but they can still take you to small claims court or even just trash you on google, yelp and social media hurting your business. And this is assuming their fuck up doesn't cause a minor flood in the building, clog a drain pipe or cause some other costly disaster. I need to go back and look and see if he included liability insurance because if he doesn't have it he is one asshole away from being out of business. He also mentioned that he does a laundry service, that means he does people's laundry for them by the pound and he either does that work himself or pays somebody to do it since clothes don't wash, dry and fold themselves. And I guarantee you at least a couple of times a month some asshole claims his laundry service ruined a piece of their clothing whether they did or not. EDIT OK he does have insurance listed in his monthly costs. I hope he has good coverage and read through his policy thoroughly.
Gas going up in January makes sense. It’s always higher in colder months when you use it more (and when it takes more to heat from a lower starting temp)
The gas is more from the machines than the heating of the building. Im sure. It will be high in Jume, just like it was in January. Depending on rates of course, consumption will be stagnant if not higher in the warmer months as people need to do more laundry and are out more often
Nice numbers, but somewhat misleading. You cannot take any single month to figure out your expenses. Maintenance and parts are an example. You may not have expenses in this month, but may incur quite a bit the next. As a result, you need to work it out average over a year (or even the life of the machines). you are also missing depreciation of the value of the equipment, each washer and dryer has a limited lifespan that you have to account for. Finally, you also have to look at the general upkeep of the property. If you have to essentially gut and redo the facility every 10 years (varies by business type in retail) then you have to figure those costs and amortize them over the period for it to make sense. You can do this backwards (taking original setup costs and taking part of the expense each month until the forecast next update, or byu taking a reserve each month towards the next update. So you may have made 10k "gross", you might actually be at 5K or less once you consider all of the true expenses going forward, and not just a "good month" snapshot.
@Not fred two different things. A variable cost like gas will go up and down based on price and usage. Entirely leaving out direct costs like mortgage, taxes, expected maintenance, depreciation,and so on can be misleading. Those costs may remove much of the profit.
I feel bad for anyone having to use a laundromat. Here in Sweden, if you don't have your own washing machine in your appartment that appartment complex will ALWAYS have a washing room for tenants to book for free. Very cheap and common to have them in your home as well. Obviously every house has their own.
I was scrolling the comments to see if anyone else has laundromats in their homes, and i found the exact comment i was gonna post myself lol. Yeah here in Sweden this business would never work. Practically everyone has access to either their own or a free laundromat here.
And how so. Statistically the average person in this country makes $70,000. That's from last year. He's making roughly $50,000 more than, and in reality a good chunk of people don't even make that $70,000, since that average includes the very upper bracket of highly paid workers.
@@zerowolf6202 Depends where you live. Pick a business area around lots of apartments and hotels/motels with very few laundromats. Don't start up one in a rural or suburban area, because most people will have a washer and dryer already. It's like the one single car wash in my area. They get tons of money because they are the only car wash around and they are in a rural area so everyone has a car and buses don't come here. So they are loaded. Everyone goes there. Be like that car washing business.
My time is free until it's cheaper to higher someone else. I still do my own brakes and other maintenance, but I get my oil changes done now as it just doesn't financially sense anymore with how cheap my local Walmart will do them. $27 for a conventional 3000 mile service, or $55 for a full synthetic 6000 mile service.
@@karldavis6022 I guess? What does that have to do with anything? I'm just saying his time and parts aren't free, he's taking home the profit so that had better be worth his time.
@@Kagrath It has to do with a lot considering it cost hundreds of thousands/millions to even begin to afford enough machines to start. How much do you think the $9.8k/mo minus energy/loan/rent/employes/taxes/water/insurance/replacement/all that actually is even if one single person's labor is 'free?'
You should consider the amortization of your machines in your maintenance costs so even when it's zero its not zero because you have to account for the inevitable cost of replacing the equipment.
Even if you don’t buy parts you should still pay into a maintenance fund for later, spreading out the pain of the eventual failure so you don’t have any sudden need for funds. Have you considered solar heaters? They work great for laundry mats if you have the roof space. You won’t have free gas since your demand is so high but the ROI will be very short from the huge savings you will get.
You might consider paying yourself a reasonable wage for repairs/maintenance and also for cleaning and any other general work you do. It can be advantageous tax-wise (ask your accountant) but also really help you to see all the true costs involved in the business (including opportunity costs).
This. Maybe get some advice from an accountant to maximise the overall profit. It might even work to change the structure of his business so he employs himself and deducts the wages.
117,960 Per year is absolutely insane for America considering average salary is like nothing and considering it takes about $60-$70,000 just to support yourself means that this man has Quite a bit of money for himself
Not sure where this guy is located but 120k a year is like a mid-level salary in California, just based on the cost of living. While you can survive on 70k in the smaller towns, it's certainly not enough in the Bay Area or even San Diego/LA after taxes. Rent is high and mortgages are worse, if better financially in the long run.
If the loan or pocket money was $250k and the cap rate is 7%, then $17.5k per year? If the time managing is $25/h but “doing my own maintenance” is $45/h, then profits were overstated.
I appreciate the sincere effort to calculate. I can see now how hard it is for this guy to estimate. I encourage y’all to get reliable comprehensive figures.
"I don't pay maintenance because I do it myself" - You are paying yourself for that time and work; don't discount it. One of the first things I learned in business/finance in college.
That doesnt always mean anything. If he is sitting around doing nothing then time isnt money. Time is money to businessmen that try to fill every hour of their day making money or to a person who runs a service center where the person is doing all the service. If you are a small business owner of any other type, that phrase rarely matters to you. For his place, the machines do the work and he is there to make sure bills are paid, do repairs, customer service, marketing, etc... But repairs come in his free time, which he likely has plenty of unless he chooses to run multiple businesses. Since he does his own repairs I have a feeling that he doesnt do much else, so i dont think time is money to him because he has more time than he has work that he wants to do. He isnt looking to fill the time with more money making schemes.
Same thing happened to my near by laundry mat, they even put up a sign saying plainly that their gas bill shot up so the dryer prices will reflect that fact.
No taxes mentioned anywhere? You performed work as part of doing maintenance, that should also be accounted for even if its 'free' because you did it. And even if you didn't pay for parts this month... you need to look holistically at LEAST a quarter. Something you'd actually want to account for is the maintenance cost per machine, per quarter, so that you can account for that in a budget. I feel like you made every accountant explode.
yep taxes magically dont exist in this type of videos and apparently property aka those machines, lights and anything else inside his business isn't effected by any form of depreciation which is more expenses
@@somebody700 Even if it's a 24 hour facility, the owner/operator usually has a feel for the slow periods and knows when they have a quick 10 minutes to clear the machines.
If you find one for sale, be sure to do your research. Check the selling owner's tax returns for the past several years to see if it's still profitable. Don't want to buy a failing business. Especially if there's more nearby laundromats than needed.
Now take taxes health insurance ect. And this is a month where he could fix every issue himself and didn’t need to buy any parts. Sounds like a miracle month.
I really appreciate this video. So many just show all the cash brought in, which is meaningless if you don't know what it costs to bring in that revenue.
I think you can make good money off of any good business it just depends on the location. I don't think I'll be able to make money around my area unless I do some more research.
Rent or own the building? Did he buy an existing laundromat or have to purchase all the machines? If purchased, where did he purchase commercial-grade machines? Did he have to get a loan? This isn't something you can jump blindly into.
If I were you I would get the U.S. Bank Cash+ Visa Signature Card. It gives you 5 percent cash back on utility bills. That would make you an extra 250 each month based on the expense of utilities. That would be 3k a year you would be getting of pure rewards
This is why poor people can't get ahead. You have to already be financially secure to start expanding your income in this way. I wish more people recognized this.
So whereas the money is good, the real question we need to figure out is 1. How much time is committed to this job? 2. Are there any costs that are normally irregular but do repeat frequently enough to estimate your annual profit? Such costs would be machine replacement. Also, for those in the US, keep in mind that this is self employed income meaning that as the owner, he covers both sides of the tax (medicare/social security) which comes out to roughly 15% which doesn't include his federal tax and his state tax (if any).
I know that's all a lot more money than I've ever even seen before, but I'm astounded how MUCH is paid in expenses. Like, those profits are high, but they're such a small part of overall revenue.
In truth that's typical. A lot of the money that is brought in is usually spent on expenses meant to keep a business running and as such, usually the profit margin is usually in the single digits in percentage. He's still doing great, but yeah. If only people knew how expensive it is to run one.
Now take off the renting of the space as well, or if you own the place the money you could have made if you just rent out the place, also calculate your Amortization, and at last what you are left with take off your tax what you are left with is your actual monthly net income divide that by the hours you are working and lets see the hourly rate
When power rose I installed 3 life PO4 batteries, during the night our rates were cheaper and I charged them, during the day they supplied power to my shop into the breaker. Drastically cut my bill.
Have you conscidered going solar to lower your electric bill and switch rrom gas to electric to save on the gas bill? If you own the property, an upgrade might be covered by a grant. Grants are not loans so you don't have to pay them back. Also using rain catchers, you can offset your water bill as well but requires self filtering.
Maintenance also means replacement part cost- if you have to fix a unit and it needs a part its still a maintenance cost even though you do it yourself. So $0 is not viable without exception when nothing is broken that week lol
Next thing you know, IRS swoops in like a swat team and takes a couple slices of that pie, after already taxing your customers for their purchases and taxing you on your expenses. Business owners don’t just get double taxed, they get triple.
If you use gas only for heating the building, I'd recommend a heat pump. Not an expert though, so it's probably best to run the numbers. It's powered by electricity and significantly more efficient than resistive heating. It uses the exact same technology as air conditioning, but instead of pumping the heat out, it pumps the heat in.
There is a big difference between accounting profit and economic profit. I believe that the economic profit must be zero in all small businesses otherwise competitive firms would enter until it equals zero.
maintenance is $0, but what about depreciation cost on the machines? they have an average lifespan after which you have to replace with a new one, if one machine cost $1200 and can last 5 years, that is $20 a month for each machine you have to set aside or take into consideration.
As for cable and phone just in general if they're through a cable company if they're like my local one make sure to call them and renegotiate your bill. If you're nice usually and get a good rep they will get you on a New plan to lower the price. The thing is if it's video though that is usually something they cannot control. Video prices are controlled by the TV stations and the owners of them. Cable used to be cheaper because so many people used to have independent ownership of those companies. Now that they've consolidated it's basically has backed cable companies into corner with barging meaning they have to pay what they are told and they pass it along to you. Ideally cable companies would be able to pick and choose what they could do then they could do that for you. They don't get that option so you don't.
If you: 1) Install Solar Panels with x2 Tesla Battery Packs; 2) Install Water Tank capture rain water; 3) Recycle drain water from all the machines; 4) Swap phones and Internet with Voice IP and secure WiFi Would these save you money?
Look into propane instead of natural gas. Depending on where you live it might be worth it to pay to install a giant 1000 gallon propane tank to supplement the cities natural gas line during the months that have higher rates.
Seems like it would be better to invest in many vending machines in many places, since their costs would not be impacted by gas prices. Only downside is daily restocking, but you also aren't needing to be there all day keeping an eye on things if there's a camera in the area. The issue with this is that if it were that easy everyone would do it, and then there'd be tons of competing vending machines.
Don't forget a salary for yourself. That's necessary for you and your business tax wise. Less profit for business helps tax rate. Personal income tax is less.
$118,000 a year ain’t bad.
And that's only one laundromat! I can't remember if it's this guy specifically but I saw someone who does similar videos on yt a while ago and he had like half a dozen of these places.
@@caffienatedcanuck4294 I think one person could manage 2 with a tiny bit of help from spouse or friend. But as soon as you get those half dozen numbers you're looking at 5-10 hands in your bucket (I. E. A management company). I can't imagine the upkeep on a shitty month... Owning a house is a pain in the ass. Now imagine having 6 houses that all need something fixed nearly all the time! You'd be lucky to clear 100k year after year. Although if done carefully I'm sure it can be extremely lucrative.
Replacing machines too often whether by bad luck or ignoring maintenance can cause you to evaporate profit really easily.
What's the amortized cost on the hardware? That has to be replaced on a semi regular basis.
@@AndyRock1yeah and the only thing I will add is this month he had 0 maintenance. I would be curious what the average annual monthly maintenance fee is.
How often does a machine or two go down and need fixed 🤷♂️.
Seems highly profitable but I was just curious!
yknow, for once this is a youtube short where its actually reasonable numbers and believable. unlike some dude recently who claimed he'd make 40k a year just from 2 vending machines
The thing he didn't loose a word about is what his initial investment was. For all we know it might be dwarfing his income. So, believable? yes. Complete? No.
Dude those are rookie numbers. My lemonade stand is listed on NASDAQ.
@@josephwodarczyk977 bro's got investors lining up for his lemonade stand 💀💀
@@josephwodarczyk977
Joseph's secret lemonade recipe;
Equal amounts of lemon juice, water, and sugar, boiled and stirred into a syrup, then added into 3 cups of water and a sliiiiight splash of nature's goodness... freshly powdered heroin.
@@thecashier930 then there will likely be maintenance costs in other months, and then tax. Likely results in $50k a year.
Make sure you maintain the gas connections to the machines. One near me burned down because of a dryer overheating due to poor maintainence
Why do you need gas for laundary mashines and dryers?
@@Gary_Harlow idk about laundry but gas dryers are pretty neat I have one. I don’t really know if it drys better or worse but it works for me!
@@troopergames8173 So the machine like, burns the gas to create the heat instead of using electricity? Got it, thanks. We don't really use gas here outside of camping so i don't know really how it is used elsewhere.
@@Gary_Harlow I've never seen a gas-heated dryer where I live, and we use natural gas extensively to heat houses here, at least in town. Out in the country it's all LPG, but they just pipe it into the same furnaces, so I'm guessing the fuels are more or less cross-compatible. Maybe commercial dryers are gas heated, but I kind of doubt it. My guess is the "gas connections" referred to by the OP is the exhaust ducting from the dryers. If you don't clean out the lint screen at least once every other cycle and occasionally blow out the ducting, lint buildup will start fires. But everyone knows that, or I should hope they do. .
Or maybe I'm just full of it and every laundromat uses gas headed dryers, I could be full of smoke.
How often should you have them looked at as far as maintenance? How often should you get them checked out?
"Maintenance costs came out to $0 because I do my own maintenance" The opportunity cost understander has logged on.
then he said he bought no parts.... which means nothing broke that month, not every month will be like that. Machines will go down. Time of machine down will cost you money, and also the time it takes to repair it cost money. Time is money.
@@DubhghlasMacDubhghlas Down machine costs you nothing unless every other machine is in use and customers have to go elsewhere because that one machine is broken. This is almost never the case in any laundromat I've been in. I don't think I've ever seen more than 1/3 of the machines in use at any time.
@@paulh2981 Yes down machine cost nothing to repair or replace.
Well if he understood that he'd have moved to card operated machines already instead of spending every day collecting quarters from machines (which also makes it less flexible with pricing)
@@dsracoon For a business that caters to poor people (you know, people that don't have their own laundry machines at home) locking out customers that don't have credit cards/bank cards would be a huge loss of revenue. Meanwhile spending a few minutes a day doing a task at a place he needs to be anyways costs literally nothing.
I would love to open a laundromat. Doing your own repairs is really excellent and makes a world of difference.
There was one for sale in my city. Price was a million and a half. It was smack in the middle of a poorer neighborhood where a lot of college students who don't live on campus also lived. About half of the value were 3 apartment's buildings (with 12 units total) attached to the same land. If I had the down payment for a loan of that size I would have jumped on it.
You really need to calculate the depreciation and loan cost to open a laundromat, those will eat into his profit real quick.
You should learn first how to even get a job kid 😂
@@joseph1150 Most laundromats are for sale at 1million because they dont want to sell but will if someone is dumb enough to pay that much.
The only reason you would pay that much is if you want to help the community rather than make a profit. A laundromat would take around 20 years to break even... Most real estate investments for that much money break even in 5-10 years.
@@QargZer Try again.
One laundromat
+ Three 4-unit apartment buildings
= 1.5 million.
Intelligent people read the Entire statement before they reply so they don't embarrass themselves by jumping down a rando's throat for no apparent reason whatsoever.
Whoever said 15k a month isn’t much must clearly live in California
The point is you may get 15k a month, but not much is left AFTER EXPENSES
@@omidm.935 What he sees on average after all the expenses isn't even close to bad. He still makes way more than most people that are working for a company and then some. In reality, you don't need to profit hundreds of thousands for it to be worth while, he is sitting pretty regardless.
@@Cumin69 I was explaining the commenter's meaning
That’s still a ton in California. The people who leave those comments are rednecks not living here, or people who do live here and just want to be drama queens so their comments can get likes from the first group. 😂
@@jasonhondakker9231 aw poor buddies feelings got hurt cuz people talk bad about his state
That's pretty damn good for one place of business.
*Did you NOT NOTICE* that he didn't include ANY utilities and ANY of the LEASE/mortgage or INSURANCE costs or ALL THE OTHER COSTS??
*I can't believe people are literally this stupid* where they just believe a video like this WITHOUT even having ONE QUESTION about ALL THE OTHER COSTS he didn't include because they *CAN'T EVEN THINK OF JUST ONE OF THE COSTS HE DIDN'T INCLUDE, LET ALONE ALL OF THE COSTS HE DIDN'T INCLUDE.*
People nowadays are super happy just to be lied to in order to give them false hope. It's so effing sad.
@@jonslg240 Jesus Christ my guy, calm your tits
@@jonslg240ok
@@jonslg240 Chill, if the business was bad none would do it, it is obviously profitable in the proper area.
@@jonslg240 parasocial schizophrenic moment
go outside bro you seem riled up over pixels
Thank you for being so transparent with us its shows honesty and integrity
In the future I’d definitely look into hybrid heat pump dryers to really reduce the costs for them to operate, 50-60%+ increase in efficiency.
I learned about those on Technology Connections.
@@Beanzoboy he really is a good source of knowledge on how to improve your house.
@@bland9876 I wanna get a heat pump A/C because of him. Gotta replace my current A/C and my furnace is 20+ years old, so that should get replaced, too. The money, though...
@@Beanzoboy HVAC tech here, I would not recommend replacing your furnace if it has not been giving you problems. Parts for those furnaces are much much cheaper than newer furnaces and they are more reliable too. Especially if you get a heat pump as that would do most of your heating until it gets colder than 10*F depending on the heat pump.
@@Redtooth75 Mine's a gas furnace, so there's not a lot of mechanical/electrical/moving parts that could fail. But companies usually give discounts if you replace both at the same time. It is old and crusty, and I'd prefer it not to start leaking gas into my house. It's a Ruud furnace (and the A/C is Ruud also) so they were put in when the house was built. The A/C is a Freon one (can't get the chemical anymore in the US) so that's gotta go anyway. Not sure it would be all that easy to find replacement parts for 20+ year old equipment.
For anyone who doesn't know what CAM means (next to rent)
It stands for Common Area Maintenance, and it's a charge that all commercial tenants at a property will split.
Think snow removal, exterior painting, landscaping, etc.
Commercial leases tend to have this build out as a separate line item where they charge a monthly estimate, then reconcile yearly vs the actual costs.
so its split between leaser and leasee assuming he doesn't own the space?
So my questions are, how much did all the machines cost, what was your initial investment to get this all started? Also, what kind of unexpected expenses crop up for you from month to month? Oh and how long have you been doing this / what made you decide to get into this business?
Also he never mentioned rent or a mortgage
That’s the thing they don’t tell you, people might think he’s good right now. However they don’t track that he might be 10-15 years in debt if not more. Laundromats depending on the store, location or how good the equipment is can cost from 65,000 - 7 million dollars. And the 65,000 laundromats are usually the ones that get the least amount of revenue. People end up leaving or reselling the property. There’s also the fact that he has to pay for plumbers, electricians, and repair man incase something happens to the store or the equipment.
@@Joe60459 its said rent at the bottom of the screen with the gas
My boss just bought a brand new washer which holds 30 lbs of wet clothes. It looks line the size above small but not medium. It cost 6k, not including the water pump and or the electrician to install a dedicated breaker.
@@f3n1xplat3ad0 Yea. There are specialized industrial washers they use, right? That can hold up to some public abuse? Unlike the ones in homes that are kinda precious and fragile lol.
That’s some good ass profit for such a low effort job. Really all you gotta do is cleaning, maintenance and restocking, nearly $120,000 a year is PHENOMENAL for such work
>low effort
Bro that's def not just these 3..
Maintenance on machines and the property eats a lot of that up. You don’t end up with that much as a yearly salary
he forgot the money he needed to buy everthing + rent lol 10 years debt here we go
LMAO spoken like somebody who has never dealt with the dipshit public before. You'd be amazed with the stupid ass shit people can do to a washer or dryer to break it and/or ruin their clothes. Then you have to repair your equipment and deal with their bullshit on top of everything else. Yeah you can put up not responsible signs but they can still take you to small claims court or even just trash you on google, yelp and social media hurting your business. And this is assuming their fuck up doesn't cause a minor flood in the building, clog a drain pipe or cause some other costly disaster. I need to go back and look and see if he included liability insurance because if he doesn't have it he is one asshole away from being out of business. He also mentioned that he does a laundry service, that means he does people's laundry for them by the pound and he either does that work himself or pays somebody to do it since clothes don't wash, dry and fold themselves. And I guarantee you at least a couple of times a month some asshole claims his laundry service ruined a piece of their clothing whether they did or not.
EDIT
OK he does have insurance listed in his monthly costs. I hope he has good coverage and read through his policy thoroughly.
@@theplayerofus319he added rent in the gas section. Man, is a short video. If you can't even watch a short video before talking...
Gas going up in January makes sense. It’s always higher in colder months when you use it more (and when it takes more to heat from a lower starting temp)
And even if he didn't need more than the other months, the general demand will spike the price anyway.
The gas is more from the machines than the heating of the building. Im sure. It will be high in Jume, just like it was in January. Depending on rates of course, consumption will be stagnant if not higher in the warmer months as people need to do more laundry and are out more often
Natural gas was jacked up over the winter, even more than usual because of global issues with Russia, EU, etc.
Nice numbers, but somewhat misleading. You cannot take any single month to figure out your expenses. Maintenance and parts are an example. You may not have expenses in this month, but may incur quite a bit the next. As a result, you need to work it out average over a year (or even the life of the machines). you are also missing depreciation of the value of the equipment, each washer and dryer has a limited lifespan that you have to account for. Finally, you also have to look at the general upkeep of the property. If you have to essentially gut and redo the facility every 10 years (varies by business type in retail) then you have to figure those costs and amortize them over the period for it to make sense. You can do this backwards (taking original setup costs and taking part of the expense each month until the forecast next update, or byu taking a reserve each month towards the next update.
So you may have made 10k "gross", you might actually be at 5K or less once you consider all of the true expenses going forward, and not just a "good month" snapshot.
Bro you a accounted or what 😂😂
You're right, but at that rate he also shouldn't say gas was $3,500 because that too was an outlier. Goes both ways
@Not fred two different things. A variable cost like gas will go up and down based on price and usage. Entirely leaving out direct costs like mortgage, taxes, expected maintenance, depreciation,and so on can be misleading. Those costs may remove much of the profit.
5k a month still sounds much better than most jobs and doesn't need as much man hours to achieve.
Didnt see him account for employees at all
I thought the electric was low, then I saw the gas... also, that seems like an absurdly low water bill for a profitable laundromat...
I feel bad for anyone having to use a laundromat. Here in Sweden, if you don't have your own washing machine in your appartment that appartment complex will ALWAYS have a washing room for tenants to book for free. Very cheap and common to have them in your home as well. Obviously every house has their own.
I was scrolling the comments to see if anyone else has laundromats in their homes, and i found the exact comment i was gonna post myself lol. Yeah here in Sweden this business would never work. Practically everyone has access to either their own or a free laundromat here.
If you think owning a single laundromat is a profitable $118k a year business, trust me, it's not.
- A previous laundromat owner
Tbf it's not just a laundromat
Depends where you live
Laundromats are scams
And how so. Statistically the average person in this country makes $70,000. That's from last year. He's making roughly $50,000 more than, and in reality a good chunk of people don't even make that $70,000, since that average includes the very upper bracket of highly paid workers.
@@zerowolf6202 Depends where you live. Pick a business area around lots of apartments and hotels/motels with very few laundromats. Don't start up one in a rural or suburban area, because most people will have a washer and dryer already. It's like the one single car wash in my area. They get tons of money because they are the only car wash around and they are in a rural area so everyone has a car and buses don't come here. So they are loaded. Everyone goes there. Be like that car washing business.
the quarters and dollars are so satisfying to watch being sorted and counted
Thanks for explaining this. Too many people brag about how much they make without explaining what they actually get after all debts are settled.
Clothes aren't the only thing being laundered 😂
For real lmfao phone internet and cable is NOT that much
@Kevin Stephen for business plans those actually seem low... around here you pay like 300 a month for business internet
where I live $110 gets you 1GB of speed those bills aren’t high especially for a business
@@XIEvansX it’s a laundry mat? Are you running a work from home business out of the back?
@@kevinstephen4979 that’s residential pricing for a GB, which I don’t pay for. All I pay for is the basic package
Ah the ole "my time and parts are free right? " a classic
My time is free until it's cheaper to higher someone else. I still do my own brakes and other maintenance, but I get my oil changes done now as it just doesn't financially sense anymore with how cheap my local Walmart will do them. $27 for a conventional 3000 mile service, or $55 for a full synthetic 6000 mile service.
He's taking it home so it's worth 9.8k a month.
@@Kagrath Cool, only half a year of profits and he can afford another machine if one breaks down.
@@karldavis6022 I guess? What does that have to do with anything? I'm just saying his time and parts aren't free, he's taking home the profit so that had better be worth his time.
@@Kagrath It has to do with a lot considering it cost hundreds of thousands/millions to even begin to afford enough machines to start.
How much do you think the $9.8k/mo minus energy/loan/rent/employes/taxes/water/insurance/replacement/all that actually is even if one single person's labor is 'free?'
You should consider the amortization of your machines in your maintenance costs so even when it's zero its not zero because you have to account for the inevitable cost of replacing the equipment.
Another excellent point.
Even if you don’t buy parts you should still pay into a maintenance fund for later, spreading out the pain of the eventual failure so you don’t have any sudden need for funds.
Have you considered solar heaters? They work great for laundry mats if you have the roof space. You won’t have free gas since your demand is so high but the ROI will be very short from the huge savings you will get.
You might consider paying yourself a reasonable wage for repairs/maintenance and also for cleaning and any other general work you do. It can be advantageous tax-wise (ask your accountant) but also really help you to see all the true costs involved in the business (including opportunity costs).
This. Maybe get some advice from an accountant to maximise the overall profit.
It might even work to change the structure of his business so he employs himself and deducts the wages.
😂😂😂😂😂😂funny I’m in a laundry mat now, and the ad just popped up.. there watching us 😂😂😂😂😂😂😂😂
A little free library in the laundromat! What a great idea! :D
Have a take one leave one more likely to keep a good rotation of books and people less likely to steal them.
Gas has gone up everywhere! It does suck. Thanks Biden !
117,960 Per year is absolutely insane for America considering average salary is like nothing and considering it takes about $60-$70,000 just to support yourself means that this man has Quite a bit of money for himself
60-70k just to support yourself? Where are you living? That's a high salary in most areas of the country. Enough to raise a family.
60-70k to support yourself? Tell me you're 13 without telling me you're 13
Not sure where this guy is located but 120k a year is like a mid-level salary in California, just based on the cost of living. While you can survive on 70k in the smaller towns, it's certainly not enough in the Bay Area or even San Diego/LA after taxes. Rent is high and mortgages are worse, if better financially in the long run.
@@xThunderxWolfx more like, tell me you live in a low ass cost of living area without telling me.
@@xThunderxWolfxin San Francisco or NY that might rend you a single bed apartment and enough left over for a bag of rice to feed you.
Ooops forgot to add paying off the capital cost of acquiring the laundry mat (machines)
I was waiting for that to be said.
those are one-time fees
If the loan or pocket money was $250k and the cap rate is 7%, then $17.5k per year? If the time managing is $25/h but “doing my own maintenance” is $45/h, then profits were overstated.
I appreciate the sincere effort to calculate. I can see now how hard it is for this guy to estimate. I encourage y’all to get reliable comprehensive figures.
@@439bananas still need to write them off over some period of time and it's not being mentioned.
For your cable bill if you’re using tvs for customers, you csn buy mini tv mountable antennas, theyre like $10 and mine get 40 channels
Thanks for helping people to get their laundry done.
This was so straight and forward and no bs I feel like I'm being tricked.
"I don't pay maintenance because I do it myself" - You are paying yourself for that time and work; don't discount it. One of the first things I learned in business/finance in college.
almost like he works for himself and he gets all the profit. dumb comment
That doesnt always mean anything. If he is sitting around doing nothing then time isnt money.
Time is money to businessmen that try to fill every hour of their day making money or to a person who runs a service center where the person is doing all the service.
If you are a small business owner of any other type, that phrase rarely matters to you.
For his place, the machines do the work and he is there to make sure bills are paid, do repairs, customer service, marketing, etc...
But repairs come in his free time, which he likely has plenty of unless he chooses to run multiple businesses.
Since he does his own repairs I have a feeling that he doesnt do much else, so i dont think time is money to him because he has more time than he has work that he wants to do.
He isnt looking to fill the time with more money making schemes.
Same thing happened to my near by laundry mat, they even put up a sign saying plainly that their gas bill shot up so the dryer prices will reflect that fact.
Being able to do your own maintenance is a great thing. Having a skill like that will mean you can always support yourself!
That maintenance for parts and replacing machines can eat up an entire 1-3 months profit in a heartbeat. Those laundry machines are expensive
No taxes mentioned anywhere? You performed work as part of doing maintenance, that should also be accounted for even if its 'free' because you did it. And even if you didn't pay for parts this month... you need to look holistically at LEAST a quarter. Something you'd actually want to account for is the maintenance cost per machine, per quarter, so that you can account for that in a budget. I feel like you made every accountant explode.
yep taxes magically dont exist in this type of videos and apparently property aka those machines, lights and anything else inside his business isn't effected by any form of depreciation which is more expenses
That's because his FOURTH job is RUclips - and RUclips doesn't care about accuracy as much as nice looking numbers :D
My sad ran his own laundromat and he made $15,000-$20,000 dollars a month as well... and strangely just like yours his was also nearly always empty 🤨
Ignorant comment
its not called laundering money for no reason...ha ha ha...bad joke i know
@@somebody700 Even if it's a 24 hour facility, the owner/operator usually has a feel for the slow periods and knows when they have a quick 10 minutes to clear the machines.
@@SerunaXI based on the replies i think mine was too 🤣
Thank you for giving me this great information I want to buy a laundromat because it's profitable❤
If you find one for sale, be sure to do your research. Check the selling owner's tax returns for the past several years to see if it's still profitable. Don't want to buy a failing business. Especially if there's more nearby laundromats than needed.
Now take taxes health insurance ect. And this is a month where he could fix every issue himself and didn’t need to buy any parts. Sounds like a miracle month.
I really appreciate this video. So many just show all the cash brought in, which is meaningless if you don't know what it costs to bring in that revenue.
So how long did it take until you covered the entry costs? Like building, washers, dryers, etc...
That's what I wanna know too, nothing being mentioned about mortgages or other business loans.
Well it was his dad's so 0.
@@kawkasaurous Well that just about explains everything. I'd be happy making videos too if I was gifted a profitable fucking business lmao.
@@kawkasaurous well thats kinda sad haha takes away the realism for normal people
y'know what this is more useful to society than being a landlord you keep doing you laundry guy
That puts you the top federal tax bracket.
30%+ plus, SStax, local and state taxes. Heavy expenses but still pretty good.
Then Uncle Sam takes a cut of that sweet money after the util bills.
Dang that’s pretty good!
How much was your initial investment??
This is a fantastic question
65k he said it in another short
plus about 25k for new machines etc
@@starwarsnerd5812 Including the property?! That’s a steal.
I'm an Accounting tutor, and I enjoyed watching this!
I don't know how people say that this is completely normal in the US. In germany you are rich with 118k a year
Those rates aren't going down my guy, once companies realize people will pay more, the rates never go down again
Exactly
Not enough after taxes 😂
Cash money business
Cash money? You still need to report earnings. Probably through a 1099 form
@Melywood Al Capone is that you?
"That's not that much"
Pulls in over 100k per year. Okay bro.
It’s more like 70-80 after taxes. And that is low for a business, but considering it’s a laundromat it makes more sense
I think you can make good money off of any good business it just depends on the location. I don't think I'll be able to make money around my area unless I do some more research.
Will you do a video on how you started your laundromat? Really curious
Rent or own the building? Did he buy an existing laundromat or have to purchase all the machines? If purchased, where did he purchase commercial-grade machines? Did he have to get a loan? This isn't something you can jump blindly into.
If I were you I would get the U.S. Bank Cash+ Visa Signature Card. It gives you 5 percent cash back on utility bills. That would make you an extra 250 each month based on the expense of utilities. That would be 3k a year you would be getting of pure rewards
Is there no rewards caps?
@@joebuslife9275 there is. It’s 2k per quarter on home utilities.
Many utilities don't allow a card. ACH or check only.
@@isaackvasager9957 My utilities here where I'm from do. I pay all my utilities with credit cards.
@Daniel Robles I don't doubt that, but I've lived in 3 cities and none of them allow it.
Not bad! Over $9000. That’s pretty good! 👍🏼
you forget the part where he has to pay rent and buy all the machines etc. lol
What about the rent for the building space? And the finance of the washers & dryers? Or the budgeting for the replacement of these machines?
Now put this next to a uni and see how much money you make £££££
Internet bill is gonna go up tho lmao
On a cash basis, sure. You forgot taxes and depreciation…
FINALLY someone posts real expense and profit figures.
That's pretty fucking solid my dude! Congrats on your successful business 🎉🎉
This is why poor people can't get ahead. You have to already be financially secure to start expanding your income in this way.
I wish more people recognized this.
Not too bad if you have a regular job too
Owning a laundry is great, they have inserts you throw in that use credit cards too. You only have to tab them.
So whereas the money is good, the real question we need to figure out is
1. How much time is committed to this job?
2. Are there any costs that are normally irregular but do repeat frequently enough to estimate your annual profit? Such costs would be machine replacement.
Also, for those in the US, keep in mind that this is self employed income meaning that as the owner, he covers both sides of the tax (medicare/social security) which comes out to roughly 15% which doesn't include his federal tax and his state tax (if any).
I know that's all a lot more money than I've ever even seen before, but I'm astounded how MUCH is paid in expenses. Like, those profits are high, but they're such a small part of overall revenue.
In truth that's typical. A lot of the money that is brought in is usually spent on expenses meant to keep a business running and as such, usually the profit margin is usually in the single digits in percentage. He's still doing great, but yeah. If only people knew how expensive it is to run one.
Notice: EMPLOYEES aren’t an expense. Are they paid THAT little?
💯
There are no employees I guess
Maybe he considered his employees an asset.
Given he’s only talking about positive and negative portions of his revenue it’s very possible he included labor costs as an expense
@@guywithacoat409
Have you ever been in a laundromat that does Wash&Fold that has zero employees???
Wash and fold expenses were 14k a month surely you don't think that's all detergent and water???
Irs nice the washing and folding service already pays for the employee wages.
Why are phone and internet plans so expensive in North America? I was shocked when I heard how expensive it is in Canada especially.
Monopolies
You forgot to include taxes & mortgage
Now take off the renting of the space as well, or if you own the place the money you could have made if you just rent out the place, also calculate your Amortization, and at last what you are left with take off your tax what you are left with is your actual monthly net income divide that by the hours you are working and lets see the hourly rate
For a second I thought his alarm bill was for waking up in the morning
Thats so crazy that you can be making more in a month ON PROFIT than a year of minimum wage here in just a laundromat
When power rose I installed 3 life PO4 batteries, during the night our rates were cheaper and I charged them, during the day they supplied power to my shop into the breaker. Drastically cut my bill.
A better way would be to consider depreciation cost of machinery and expected life of your overall assets
The maintenance cost is the loss in revenue for the time the machines were down.
It’s wild that people still buy from a vending machine despite the prices being outrageous. I do not understand people
Have you conscidered going solar to lower your electric bill and switch rrom gas to electric to save on the gas bill? If you own the property, an upgrade might be covered by a grant. Grants are not loans so you don't have to pay them back. Also using rain catchers, you can offset your water bill as well but requires self filtering.
How about the amortized monthly cost of the business itself? Those machines weren’t free.
Maintenance also means replacement part cost- if you have to fix a unit and it needs a part its still a maintenance cost even though you do it yourself. So $0 is not viable without exception when nothing is broken that week lol
Next thing you know, IRS swoops in like a swat team and takes a couple slices of that pie, after already taxing your customers for their purchases and taxing you on your expenses. Business owners don’t just get double taxed, they get triple.
maintenance costs are zero just don't have any parts break follow for more business tips.
If you use gas only for heating the building, I'd recommend a heat pump. Not an expert though, so it's probably best to run the numbers. It's powered by electricity and significantly more efficient than resistive heating. It uses the exact same technology as air conditioning, but instead of pumping the heat out, it pumps the heat in.
Nice! Most people don't do the actual profit. At least from what I have seen.
Glad things are going well for you and hope that sh*t goes down cause a multiplier of 2 for gas is crazy
There is a big difference between accounting profit and economic profit. I believe that the economic profit must be zero in all small businesses otherwise competitive firms would enter until it equals zero.
Im here making close to 6k a month working 40 hour weeks .Good on you brother, im sure its not easy to manage that much responsibility.
maintenance is $0, but what about depreciation cost on the machines? they have an average lifespan after which you have to replace with a new one, if one machine cost $1200 and can last 5 years, that is $20 a month for each machine you have to set aside or take into consideration.
I hope to someday do things like this for money. Although owning a laundromat probably isn’t an option, I could definitely get some vending machines
Nice, dont listen haters. You have totally earned that money and keep motivating rest of us.
As for cable and phone just in general if they're through a cable company if they're like my local one make sure to call them and renegotiate your bill. If you're nice usually and get a good rep they will get you on a New plan to lower the price. The thing is if it's video though that is usually something they cannot control. Video prices are controlled by the TV stations and the owners of them. Cable used to be cheaper because so many people used to have independent ownership of those companies. Now that they've consolidated it's basically has backed cable companies into corner with barging meaning they have to pay what they are told and they pass it along to you. Ideally cable companies would be able to pick and choose what they could do then they could do that for you. They don't get that option so you don't.
Fiona could have totally rocked her laundromat
If you:
1) Install Solar Panels with x2 Tesla Battery Packs;
2) Install Water Tank capture rain water;
3) Recycle drain water from all the machines;
4) Swap phones and Internet with Voice IP and secure WiFi
Would these save you money?
Look into propane instead of natural gas. Depending on where you live it might be worth it to pay to install a giant 1000 gallon propane tank to supplement the cities natural gas line during the months that have higher rates.
Hmm 🤔 there’s also state and federal taxes. It also depends if you’re a corp, S.corp, LLC, sole proprietor. But my guess is the net income is lower.
for that level of gas volatility, you should look into solar as alternative power supply. not just photovoltaic but also heat capture
I'd love to make that much.
The hours must be insane though.
Seems like it would be better to invest in many vending machines in many places, since their costs would not be impacted by gas prices. Only downside is daily restocking, but you also aren't needing to be there all day keeping an eye on things if there's a camera in the area. The issue with this is that if it were that easy everyone would do it, and then there'd be tons of competing vending machines.
It's interesting how much vending machines can add to your profits.
Don't forget a salary for yourself. That's necessary for you and your business tax wise. Less profit for business helps tax rate. Personal income tax is less.
Thank you for the transparency 🙌