Laundry businesses are successful and widespread ventures in Saudi Arabia due to their importance in helping many people clean their clothes. The need for clean, well-ironed clothes is essential, making laundries operate year-round and attract a large customer base. However, the most significant concern for those planning to invest in a laundry business is knowing the monthly income the project can generate.
This article will discuss the expected monthly profits of a laundry business, factors affecting income size, and tips from marketing experts and successful laundry business owners.
Categories of Laundries in Saudi Law
To answer the question of how much a laundry business earns monthly, we must first determine the category under which the laundry falls. Saudi law divides laundries into two categories:
- Category (A)
- Category (B)
The category of the laundry plays a significant role in determining the expected profit percentage and the net profit ratio of the project.
What is a Category (A) Laundry?
A Category (A) laundry is one that starts with a space of 48 square meters. Any laundry located in Riyadh, Mecca, Medina, Dammam, Khobar, Dhahran, Jeddah, Buraidah, Hail, Tabuk, Arar, Taif, Al-Hofuf, and Hafr Al-Batin is a Category (A) laundry. This category offers services like receiving and delivering clothes and furnishings, self-service laundry, and washing patient clothes and hospital textiles.
What is a Category (B) Laundry?
A Category (B) laundry starts with a space of just 12 square meters in any of the centers and governorates of Saudi Arabia. Or it is a laundry located in cities like Abha, Al-Baha, Najran, and Jazan. These laundries offer services of receiving and washing clothes and furnishings, and self-service laundry only.
Monthly Income of a Category (A) Laundry
Category (A) laundries charge between 4.45 and 5.60 Saudi Riyals per piece. It is expected that the laundry will wash between 2,000 and 4,000 pieces per month. In this case, the total monthly income of the laundry ranges between 8,900 and 22,400 Saudi Riyals. The average income of the laundry is the sum of the minimum and maximum profit divided by 2. Therefore, 8,900 + 22,400 = 31,300 / 2 = 15,650 Saudi Riyals.
After calculating the expected monthly costs for a Category (A) laundry, the net income can be predicted by subtracting the total costs from the total expected monthly profit. After adding the cost of rent, raw materials, utility fees, worker wages, administrative expenses, and marketing, the total costs range between 6,000 and 10,000 Saudi Riyals. Therefore, the average variable monthly operating costs for a Category (A) laundry project are 8,000 Saudi Riyals.
Thus, the net monthly income for a laundry in Saudi Arabia of Category (A) is the result of the operation 15,650 – 8,000 = 7,650 Saudi Riyals per month. To calculate the monthly net profit percentage, we rely on the following equation; (Monthly net profit ÷ Total monthly expenses) × 100. Therefore, to calculate the monthly net profit percentage when the total monthly expenses are 8,000 Riyals and the monthly net profit is 7,650 Riyals, it is = (7,650 ÷ 8,000) × 100 = 95.63%.
This percentage is excellent, as according to the latest statistics, a# How Much Does a Laundry Business Earn Monthly?
Laundry businesses are successful and widespread ventures in Saudi Arabia due to their importance in helping many people clean their clothes. The need for clean, well-ironed clothes is essential, making laundries operate year-round and attract a large customer base. However, the most significant concern for those planning to invest in a laundry business is knowing the monthly income the project can generate.
