Do you want to know how much money laundry & dry cleaners make yearly? If YES, here are 7 factors that determine the income & profit margin for dry cleaners.
In order to have an idea of the amount a dry cleaning business owner is expected to make monthly or yearly, you should clearly define the services that dry cleaners offer. Dry cleaning is any cleaning process for clothing and textiles using a chemical solvent other than water.
Dry cleaning workers clean, repair, and press clothes, linens, and other fabric items that cannot be cleaned in water. A dry cleaner’s business with around 10 – 15 years history and some value added services and no local competition should expect to earn around $150k to $185,000.
With that you should be able to get a facility with a turnover of between $150 to $165,000 with a net profit of around $850 to $120,000.
It is important to point that there is no one-mold-fits-all when it comes to how much a dry cleaning business owner is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average dry cleaning business owner can make yearly and these factors are;
7 Factors That Determine How Much Money Dry Cleaners Make Yearly
1. The Size of the Dry Cleaner Business
You will agree that no one can conveniently state the amount a dry cleaning business owner is expected to make yearly if you do not know the size of the facility and the number of customers the facility can accommodate per time.
As expected, a dry cleaning business that operates from a small shop facility is expected to make less than a dry cleaning business that operates from a standard facility. If your dry cleaning business facility is a large enough, it can accommodate the order of more customers and that will mean increase revenue.
2. The Location of the Facility
A key factor that can greatly influence the money a dry cleaning business owner is expected to make is the location of the dry cleaning business.
If a dry cleaning business facility is located in a highbrow area, an area with the right demography and lifestyle especially as it relates to busy corporate executives, business owners, households, and of course people who have the financial means, then the owner of the dry cleaning business facility is expected to make more money.
The truth is that, you will struggle to make good money from your facility if you locate the business in an area filled with low income earners or where the residents do their washing at home.
3. The Type of Machines and Services Available in the Facility
Another important factor that will determine how much a dry cleaning business is expected to make yearly is the type of machines, processes and services offered by the dry cleaning business.
You will agree that a dry cleaning facility with state of the art machines that also offers pick-up and drop-off, mend and sew et al will earn more than a dry cleaning business that only offers basic drying cleaning services with low end machines.
4. The Management Style of the Business
Another key factor that will determine the amount a dry cleaning business owner is expected to make yearly is the management style of the business owner.
Trust me, the results you will get when you are a good manager will be far different from a dry cleaning business owner with poor management style. The idea is that a good dry cleaning business owner will not just retain their old customers, they will also keep getting new customers.
5. The Business Approach of the Dry Cleaning Business
There are different business approaches that a dry cleaning business owner can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly. A dry cleaning business owner may decide that they want to operate only one location and do their marketing alone, or they may want to go into franchising and also partner with other businesses that will recommend clients to them.
It is easier to find dry cleaning businesses that operate franchises make more money. A well- organized dry cleaning business that works with others will surely make more money than a dry cleaning business that only operates from one location.
6. The Advertising and Marketing Strategies Adopted by the Business
Another key factor that will determine the amount a dry cleaning business owner can make monthly and yearly is the advertising and marketing strategies adopted by the dry cleaning business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. You don’t expect a dry cleaning business owner that is engaging in aggressive advertising and marketing to make same amount with a dry cleaning business owner that is passive with its advertising and marketing.
7. The Number of Years the Dry Cleaners Business is in Existence
In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well-managed.
For example, in your first fiscal year (FY1) you might make a hundred thousand dollars (100,000), in your second fiscal year (FY2) you might make one hundred and fifty thousand dollars ($150,000) and in your third fiscal year (FY3) you might make one hundred and eighty thousand dollars ($180,000).
In conclusion, please note that in other to maximize profits in this business, you should try as much as possible to keep your capital investment at a minimum, and ensure that your dry cleaning business (machines) is far more capital efficient.
Estimated Profit Margin for a Dry Cleaning Business
In order to calculate the profit margin from a standard dry cleaning business, you should be able to place a figure on the recurring and ongoing costs of running the business. With all these factors in mind, the profits a dry cleaning business is expected to make monthly and yearly will vary tremendously.
The average margin in the dry cleaning industry is about 150 percent. The fact is that the average dry cleaner makes $1 or more in profit from each garment that they clean.