Are you running a dry cleaning business that’s doing okay but not but not as profitable as you’d like? You’re not alone. Many established dry cleaners struggle to boost their dry cleaning business profit margin without working longer hours or cutting corners.

The good news? With the right strategies, you can increase profits while keeping your operations efficient and your customers happy.

In this guide, we’ll explore 11 proven ways to improve your dry cleaning business profit margin, from smarter pricing to modern technology upgrades and high-margin services.

1. Understanding Your Current Profit Margins

Before making changes, know where you stand. Most dry cleaning businesses have net margins between 10-20%, meaning if you earn $10,000 per month, your actual profit might be only $1,000 to $2,500.

Fun Fact: The U.S. dry cleaning market is worth $9.4 billion in 2025, showing there’s plenty of opportunity in the industry! 

2. Optimize Your Pricing Strategy

Pricing sets the foundation for your profit margin. Customers often value quality and convenience more than a small price difference.

Tips to price smarter:

  • Research competitor rates in your area
  • Gradually raise prices by 5-10% on select items
  • Offer premium services at higher prices
  • Create bundle deals to increase average order value

Pro Tip! Test price increases on less popular items first to gauge customer reaction.

3. Invest in Modern Technology

While technology comes with upfront costs, it can save money and boost efficiency in the long run.

 Strategic tech investments include:

  • POS systems that provide an all-in-one solution like Xplor Spot
  • Route4Me is a Route Optimization software that integrates directly with Xplor Spot for all pickup and delivery needs. 
  • Energy-efficient machines
  • Customer management apps

Energy Savings Tip: Switching to wet cleaning can reduce electricity usage by up to 75%, and energy calculators can save 10% to 20% annually.

4. Reduce Operating Costs

Cutting costs is one of the fastest ways to improve your dry cleaning business profit margin. Focus on:

  • Energy: Upgrade to LED lighting and energy-efficient machines. These changes can cut your electric bill by 20-30%.
  • Supplies: Buy supplies in bulk, negotiate better rates with suppliers and track usage to avoid waste.
  • Labor: Cross-train employees to handle multiple tasks. This reduces the need for extra staff during busy times.

5. Expand Your Service Offerings

Adding new services is a great way to boost your dry cleaning business profit margin without finding new customers. Your loyal customers are more likely to try additional services.

Popular add-on services include:

  • Alterations and tailoring
  • Shoe repair and cleaning
  • Leather cleaning and conditioning
  • Wedding dress preservation
  • Pickup and delivery services
  • Wash, Dry, Fold services

6. Improve Customer Retention

Retaining costs 5 times less than acquiring new ones. Happy customers also spend more, boosting your dry cleaning business profit margin.

Customer retention strategies:

  • Loyalty programs with discounts or free services
  • Reminder texts when items are ready
  • Quick follow-up on complaints
  • Consistency, high-quality service

Impact: Increasing retention by just 5% can raise profits 25-95%

7. Streamline Your Operations

Efficient operations mean lower costs and higher profits. Look for ways to make your dry cleaning business profit margin better by working smarter, not harder.

Workflow improvements:

  • Organize your workspace
  • Checklists for common tasks
  • Scheduled equipment maintenance
  • Staffing according to peak hours

Inventory management tips:

  • Track supplies to avoid low inventory
  • Negotiate supplier payment terms

8. Focus on High-Margin Items

Not all cleaning jobs are created equal. Some items give you a much better dry cleaning business profit margin than others. Focus your marketing and upselling on these profitable services.

Prioritize services that yield the best profit:

  • Specialty items like wedding dresses
  • Leather and suede cleaning
  • Designer clothing
  • Rush services
  • Stain removal

9. Optimize Your Marketing Budget

Effective marketing brings in more customers without breaking the bank. This helps your dry cleaning business profit margin by increasing sales while controlling costs.

Attract more customers without overspending:

  • Google My Business listing and reviews
  • Social media before/after photos
  • Email newsletters with offers
  • Referral programs
  • Local business partnerships

Pro Tip! Encourage happy customers to leave reviews—they’re a powerful driver of new business.

10. Negotiate Better Supplier Terms

Suppliers can significantly impact your dry cleaning business profit margin. Don’t just accept the first price they offer—negotiate for better deals.

Negotiation strategies:

  • Buy in larger quantities for volume discounts
  • Pay invoices early for cash discounts
  • Compare prices from multiple suppliers
  • Ask for extended payment terms to improve cash flow
  • Join buying groups with other dry cleaners for better deals

11. Monitor and Measure Your Progress

You can’t improve what you don’t measure. Keep track of your dry cleaning business profit margin and other key numbers so you know what’s working.

Track key numbers to see what works:

  • Monthly profit margins
  • Average order value per customer
  • Customer retention rates
  • Operating cost percentages
  • Revenue per square foot of space
  • Piece counts (per day)
  • Revenue by service type (.e.g., Delivery/Pickup, Kiosk/Locker, etc.)
  • Pieces per operator per hour (PPOH)
  • Inventory Percentages

Set aside time each month to review these numbers and adjust your strategies as needed.

BONUS: Leverage Software to Maximize Profits

Managing your business efficiently is easier with the right dry cleaning software. Tools like Xplor Spot help streamline pickup and delivery, optimize routes, track customer orders and manage inventory—all in one place.

By automating these tasks, you save time, reduce errors and boost your dry cleaning business profit margin without adding more work.

Interested in software built to streamline operations, reduce waste, and open new income streams? Book your FREE personalized demo today!

Increase Your Dry Cleaning Profit Margin

Improving your dry cleaning business profit margin takes time, but these strategies can make a real difference. 

Start with one or two changes and build from there. Remember, most successful dry cleaners maintain gross margins between 30%-50%, meaning there’s room for improvement if you’re below that.

The dry cleaning industry may face challenges, but smart business owners who focus on their dry cleaning business profit margin will continue to thrive. Take action today, and watch your profits grow!

Related: Dry Cleaning Upsells

  • First published: September 12 2025

    Written by: Tom Talbot