Winner: Laundry Locker

The laundry locker has a lower initial capital investment when compared with the coin laundry. A laundry locker is highly suitable for anyone who wants to start a laundry business without much capital. Or, if you are looking to understand the laundry business and want to start small.

The most capital-intensive investment in coin laundry is the equipment. The washing machine and dryers are essential in the business and can cost a lot of money. It can cost at least RM150,000 to set up a normal-size shop. However, you only need to pay RM25,000 for a locker.

The second highest initial cost is renovation. Like all other businesses, coin laundry needs renovation to operate and serve the customers based on its concept. In the laundry locker, there is no need for additional renovation to start.

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Winner: Coin Laundry

Coin laundry excels in business sales generated, giving it the edge over laundry locker, and is more suited for individuals who prefer higher business income. Because laundry chores are necessary, many people with no washing machine at home like to use coin laundry because it is cheaper. It has soon become the primary choice of the general public to get their laundry done.

As for the laundry locker, customers need to pay more to use the service. Unlike the self-service nature of coin laundry, the cleaning solution provider will do the laundry for those who use the laundry locker. In addition, it is also common to pay extra for cleaning methods like dry cleaning and hand washing. Therefore, customers who need help washing their clothes will enjoy the laundry locker service.

While the number of sales is crucial in business, expenses cannot be overlooked and threatened lightly. The maintenance and rental costs in coin laundry are a few times higher. If your business cannot generate enough sales, your financial situation will be at a higher stake because you will need to pay directly out of your pocket.

Winner: Coin Laundry

Since a coin laundry business operates with a physical shop, the business owners can expand their service offerings in the shop. Instead of offering laundry service, you can place vending machines and coin-operated massage chairs to increase your revenue stream. Customers will most likely spend an extra ringgit or two for entertainment while waiting for their clothes to clean and dry.

The laundry locker is different. You can’t grow the business as you want and beyond the existing services. But, You could give suggestions on any new services. However, it falls to the locker provider to decide.

If you plan to start a coin laundry business, consider placing a laundry locker in the shop. Both are not mutually exclusive because one can provide value to the other. For example, customers who can do the laundry themselves use the coin laundry. But for items (shoes, branded clothes, etc.) that require professional cleaning, the customers can use the laundry locker service.

Winner: Laundry Locker

For the laundry locker, you need to invest in the business only. And the operation is fully supported by the laundry locker provider. They will pick up the clothes, clean them, deliver them back and answer the customer inquiries. It works very similarly to the vending machine business. You earn a passive income without having much to do apart from paying some bills (rental & sim card).

Starting a coin laundry is popular because the effort to run it is minimal except when compared with a laundry locker. In a coin laundry, you do not need to hire a team of employees to run the business. All you need to do is clean your premise and answer customer inquiries/ complaints yourself. If your shop provides digital payment, you do not even have to go to your shop and collect the money.

Winner: Laundry Locker

The laundry locker concept is new in Malaysia, but it has achieved rapid growth in other countries. Since the competition is low, the location available to place a laundry locker is plentiful. If you can enter a space early, some places (like the condo or office building) will not allow a second laundry locker operator.

On the other hand, the competition among the coin laundry shops is heating up. In many mature areas, the coin laundry business is already very saturated. The shops in the same area ended up with a price war to compete for customers. Those with deeper pockets are always the ones who will win the battle eventually.