The Economics of Everyday Things

Episode 113: Laundromats
Host: Zachary Crockett (Freakonomics Network)
Guest: Jordan Berry, owner and consultant, Laundromat Resource
Date: November 3, 2025

Main Theme & Purpose

This episode unpacks the surprising complexities of running a laundromat—how the industry works, what it takes to succeed, and why laundromats are both challenging and rewarding. Host Zachary Crockett and laundromat operator-turned-consultant Jordan Berry reveal the nuts and bolts of the business, the clientele, the changing industry landscape, and the unexpected personal stories and hurdles that come with running a "simple" corner business.

Key Discussion Points & Insights

1. Jordan Berry’s Unlikely Entry into Laundromats

• [01:22] After 15 years as a youth pastor, Berry wanted a "low effort" business to free up time for family.

  "A friend of the family ended up buying a Laundromat and working five to ten hours a week. So I thought, you know what, that sounds good. Let's shoot for that." — Jordan Berry [01:22]

• [02:03] His first purchase: a rundown “zombie mat” in East LA for $70,000, financed new equipment, and renovated from scratch.

2. History & Evolution of Laundromats

• [03:03–04:38]
  • Ancient laundry methods: soaking clothes in urine, brushing with hedgehog skin.
  • First laundromat opened in 1934, Great Depression era—machines rented out by the hour.
  • Industry shift from rental to self-serve coin-op model.
  • ~30,000 laundromats in the US today.
  • Two main segments:
    • Self-service: Customers do their own laundry.
    • Service-based: "Wash and fold," delivery services increasingly popular ([04:41] "Yes, please.").

3. Demographics & Customer Habits

• [05:37] Target market: renters below median income, larger households ("Kids... are filthy, disgusting creatures and create a lot of laundry." — Jordan Berry [05:37])
• [06:04] Key business strength: habitual use — loyal, repeat customers ("...predictable recurring revenue." — Jordan Berry [06:04])

4. Commercial Clients

• [06:25] Airbnb managers, restaurants, hotels, salons; laundromats clean tablecloths, napkins, uniforms, etc.

5. Ownership & Industry Trends

• [06:50–08:15]
  • Historically run by Asian immigrants due to discrimination in other jobs.
  • Now attracting investors aiming for multi-store portfolios.
    • "We've just started getting some tech introduced to our space... manage more locations much easier." — Jordan Berry [07:14]
  • Digital payments, management software, and YouTube “laundromat influencers” increase popularity ([08:15–08:33]).

6. Buying and Equipping a Laundromat

• [09:09–11:29]
  • Average price: $400,000–$500,000; can range from $50,000 to multi-millions.
  • Machines are the biggest capital expense:
    • 30–40 washers, similar dryer count.
    • Top-load vs. front-load: front-loads are more efficient.
    • Small front-load: $4,000–$5,000; Large (80+ lb): $25,000+.
    • Full new equipment: $500,000–$600,000 for a medium store.

7. Operating Economics

• [11:29–15:15]
  • Revenue streams: by-the-load ($3–$12), snacks, detergent vending.
  • Key metric: Turns per day (machine cycles); 3–3.5 is average, 8–10 is high.
    • "The big boy machine is the big boy money." — Jordan Berry [11:42]
  • Larger machines (80+ lbs) maximize space and profit.
  • Most still coin-operated; cash cycles are a hassle (“Quarters get real heavy, real fast.” — Jordan Berry [13:23]).
  • Coins often recycled; emptying depends on neighborhood—anywhere from every two days to once a week.

8. Real-World Operations

• [19:45–21:55]
  • Revenue example: $27,000/month (approx. $17k from coin ops, $8k from delivery, $2k from vending).
  • Costs: machine repairs, utilities (15–25% of revenue), rent, labor.
  • Repairs are constant (door locks, coin jams, especially underwires from bras — "the bane of my existence." — Jordan Berry [20:12])
  • Skilled repair techs are in high demand.
  • Infrastructure: heavy utility loads, hot water systems, bulkheads for plumbing/electric, lint management (“What do you do with all the lint?... It's another business opportunity out there.” — Jordan Berry [23:33])

9. Profit Margins & Oddities

• [23:43–24:51]
  • Typical margins: 20–35% (comparable to dentists or law firms).
  • Customers try to wash everything: giant rugs, bath mats, shoes, etc., leading to memorable mishaps.

10. Human & Community Side

• [25:00–26:15]
  • Lost & found: cash, jewelry, notes found in machines/drains.
  • Leftover clothes are donated if unclaimed.
  • Unexpected community hub: people hang out, socialize during cycles.
    • "There's not too many places left where we just go and we hang out for an hour and we talk to people in our community...” — Jordan Berry [26:02]
  • Laundry is intimate—handing off personal items for others to clean.

11. Berry’s Perspective & Looking Back

• [26:38] Berry now lives in Hawaii, consults others, and values the path—despite its rocky beginnings.

  "There was a period of time there in those first couple years where I was not glad that I bought a laundromat... But looking back now, it's tough to beat." — Jordan Berry [26:38]

Notable Quotes & Memorable Moments

• “Buckets full of quarters. It’s really fun to see huge stacks of cash. But whenever you have people and you have machines, you’re going to have problems…” — Jordan Berry [02:51]
• "Kids... are filthy, disgusting creatures and create a lot of laundry." — Jordan Berry [05:37]
• "The big boy machine is the big boy money." — Jordan Berry [11:42]
• “Quarters get real heavy, real fast.” — Jordan Berry [13:23]
• "The bane of my existence was the underwire in a bra." — Jordan Berry [20:12]
• “If anybody out there is looking for a new business, being a service technician on commercial washing machines would be a great one." — Jordan Berry [20:48]
• “It's another business opportunity out there. If you can find out how to monetize lint, hit me up and we'll make a fortune together.” — Jordan Berry [23:33]
• "There's not too many places left where we just go and we hang out for an hour and we talk to people in our community that we don't run into anywhere else. It's a really fulfilling part of the business." — Jordan Berry [26:02]
• "I felt a few times during this interview like, oh man, I'm really nerding out right now." — Jordan Berry [27:41]

Timestamps for Important Segments

• Jordan’s journey into laundromats: [01:22–02:28]
• Industry history & self-service evolution: [03:03–04:41]
• Demographics & customer loyalty: [05:37–06:25]
• Tech and investment trends: [07:14–08:15]
• Buying a laundromat & equipment costs: [09:09–11:29]
• Turns per day, larger machines trend: [11:42–12:38]
• Why coins remain king (and the hassle): [13:23–14:46]
• Monthly revenue breakdown: [19:45–20:07]
• Machine repair challenges: [20:48–21:20]
• Utility and infrastructure details: [21:36–23:10]
• Profit margins, quirky customer behavior: [23:43–24:51]
• Laundry as a community hub: [25:48–26:02]
• Berry’s reflection: [26:38–26:57]

Tone & Style

The episode balances curiosity and real-world realism, matching Berry's straight-talking, hands-on experience and Zachary Crockett’s blend of historical curiosity, economic analysis, and dry humor. The tone is both practical (“machines need a rest like us too”), surprising, and sometimes personal—with a dash of business nerdery.

This summary covers the full arc of the episode, from its colorful technical details to the surprisingly intimate and human aspects of running a laundromat, offering value to listeners and non-listeners alike.