Starting a self-service laundry isn’t just about plugging in a few washers and dryers. It’s about designing a business that runs smoothly, earns trust, and meets people’s everyday needs in the most convenient way possible. Think of it as building a space where time-poor locals, backpackers, and busy families all cross paths—everyone wants clean clothes, but no one wants hassle.

What is a self-service laundry and why does it work?

A self-service laundry—often called a laundromat—is a coin or card-operated facility where customers wash and dry their clothes without staff doing it for them. The appeal is simple: it’s affordable, flexible, and available outside typical business hours.

For many Australians, especially in urban hubs and near universities, laundromats are a lifeline. They cater to people without home machines, travellers, or anyone needing a big wash in one hit. The business model thrives because it reduces labour costs and runs on high turnover of repeat customers.

How do you start a self-service laundry business?

1. Research your location

The old real estate saying still applies—location is everything. Look for:

• High-density housing areas with small apartments

• Student-heavy suburbs

• Tourist or backpacker zones

• Sites with good parking and visibility

A laundromat near a campus or caravan park almost guarantees a steady stream of customers.

2. Plan your setup

Key equipment includes:

• Commercial-grade washers and dryers (energy-efficient options save on running costs)

• Payment systems (coins, cards, or mobile pay)

• Seating, folding stations, vending machines for detergents or snacks

Smart operators also install CCTV and good lighting—security builds trust, which is a persuasion principle Cialdini would call authority. Customers feel safe, so they keep coming back.

3. Calculate costs and revenue

You’ll face upfront costs for machines, fit-out, and lease. Ongoing expenses include utilities, insurance, cleaning, and maintenance. But margins can be strong—especially if you run 24/7.

A typical wash might cost customers $5–$7, with drying extra. Multiply that by dozens of loads a day, and you can see why many owners expand to multiple sites once the first location is established.

4. Make it easy for customers

Behavioural science tells us people stick with the path of least resistance. That means:

• Clear instructions on every machine

• Simple pricing

• Fast payment options

• Loyalty discounts for repeat use

Even offering free Wi-Fi or comfy seating nudges people to prefer your spot over the competition.

5. Market with community in mind

Unlike flashy retail, laundromats thrive on local trust and word of mouth. A few tactics that work:

• Local ads near supermarkets and community boards

• Google Maps and review optimisation

• Partnering with nearby cafés or hostels

• Small “grand opening” offers to get first-time visitors

Social proof plays a big role here—once people see their neighbours using your laundry, they’re more likely to try it too.

Is a self-service laundry profitable in Australia?

Yes, but it depends on volume and efficiency. A well-placed laundromat can become cashflow positive within a couple of years. The model benefits from being semi-passive—machines do the heavy lifting while you monitor, clean, and maintain.

The main risks? Rising electricity and water costs, plus competition. But newer machines are far more energy-efficient, helping buffer against utility price hikes.

Common mistakes new owners make

• Choosing a location without enough demand

• Buying cheap, non-commercial machines that break down

• Ignoring safety, lighting, and cleanliness

• Overcomplicating pricing systems

• Forgetting to market locally

FAQs

Do I need staff for a self-service laundry?
Not usually. Many run unattended with remote monitoring, though you may need part-time cleaners or tech support.

How much space do I need?
A small site might fit 6–8 machines in about 60m², while larger laundries can be 100m² or more.

Can I run one part-time?
Yes. Many owners treat it as a side investment, checking in daily or weekly.

Final thought

A self-service laundry isn’t glamorous, but it’s practical, steady, and often recession-proof. People will always need clean clothes. Done well, it’s less about machines and more about designing a smooth, trustworthy experience for your community. And if you’re curious about how everyday Aussies actually use these spaces, here’s a good read on Self Service Laundry.