How to Start a Cloth Diaper Service

Part 1 - How to start a Cloth Diaper Service business - Background

An increasing number of parents are interested in the environmental and economic benefits that cloth diapers offer, but not all parents want to deal with washing them. Cloth diaper services provide and launder cloth diapers so that parents don’t have to. Through 2022, the global diaper market is projected to reach an annual revenue of $67.46 billion. A significant portion of this growth is expected to come from environmentally friendly solutions like biodegradable disposable diapers and cloth diapers. This growth should create many opportunities for new cloth diaper services.

Our guide is in 3 parts:

• Part 1 - How to start a Cloth Diaper Service business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a cloth diaper service?

The startup costs involved in opening a cloth diaper service are fairly low. A service generally needs:

• One-size diapers: $220 for 12 pack

• Large diaper bags: $30 each

• Transportation; It’s very efficient to use your personal vehicle.

• Rubber gloves: ~$10

• Washing machine; Using your personal washer is ideal.

• Detergent: ~$14 per 68 loads

• Cloth diaper pail: ~$50 for 7 gallons, 1-2 day pail

How many cloth diapers business owners need to purchase initially depends on what brand of cloth diapers they get. Some brands offer just one size, while others have two or three different sizes.

Business owners who want to keep their startup costs as low as possible can begin by purchasing just three weeks’ worth of cloth diapers. This should be sufficient for one client, as it allows:

• 1 week’s worth of diapers to be with the client

• 1 week’s worth of diapers to be in the laundry

• 1 week’s worth of diapers as a backup emergency supply

For Mother Earth Baby, a basic full week’s supply is 80 diapers, so three weeks would be 240 diapers. (If using a brand that has multiple sizes, a service should purchase three weeks’ worth of diapers in each size available.)

While this only provides enough diapers for a single client, more diapers can be purchased as additional clients sign up. The one-week emergency supply should suffice for a week while new diapers are ordered. This lets business owners use the first payment that new clients make to pay for any additional diapers that are required.

Business owners can further reduce their upfront expenses by using their own car and washing machine. A special car isn’t needed, as most vehicles are big enough for diapers. A special washing machine also isn’t required, although it’s important to have hot water.

Read our cloth diaper service purchasing guide to learn about the materials and equipment you’ll need to start a cloth diaper service, how much to budget, and where to make purchases.

What are the ongoing expenses for a cloth diaper service?

The ongoing expenses for a cloth diaper service businesses are fairly low. They primarily include:

• fuel and maintenance for a vehicle

• detergent

• hot water

Who is the target market?

A cloth diaper service’s ideal clients are busy parents with a decent amount of discretionary income. If you are able to find a nursery business that uses cloth diapers, that could be an easy way to increase business.

How does a cloth diaper service make money?

A cloth diaper service makes money by charging for the rental and laundering of cloth diapers. Most services charge a flat weekly or monthly fee.

How much can you charge customers?

Many cloth diaper services charge between about $25 and $50 per week. Mother Earth Baby, for instance, offers a basic diaper service for $25 per week and an all-in-one diaper service for $50 per week.

How much profit can a cloth diaper service make?

How much a cloth diaper service can make depends entirely on how many clients it has. Nelson reports that services can have annual revenues around $25,000 with 20 clients.

How can you make your business more profitable?

Many cloth diaper service businesses increase their revenue slightly by offering cloth wipes and selling cloth diapers. Cloth wipes are typically an add-on service that’s between $5 and $8 per week. Cloth diapers may be sold new or used, with new ones commanding much higher prices.

Day-to-Day and Growth

What happens during a typical day at a cloth diaper service?

Cloth diaper service owners spend much of their time exchanging and cleaning diapers. On any given day, they may:

• drive to client’s homes, where they pick up dirty diapers and drop off clean ones

• count how many dirty diapers a client used, so they know how many to drop off the next week

• wash diapers, which sometimes requires multiple cycles

• dry diapers, which may require letting them air-dry

• sort diapers for the next week’s deliveries

When not doing these things, business owners are frequently marketing their business and managing bills.

What are some skills and experiences that will help you build a successful cloth diaper service?

Business owners should be familiar with both how to use cloth diapers and how to properly launder them. Although they’ll only be laundering the diapers, clients may have questions about using them—and they’ll expect business owners to know how to use the products they provide.

Many cloth diaper companies (which sell cloth diapers) and cloth diaper services offer classes on properly using and washing cloth diapers. For example, Jillian’s Drawers offers a free cloth diapering class, and Diaper Lab in Boston has a course for $30.

There are also books that have helpful tips on how to use cloth diapers. Confessions of a Cloth Diaper Convert and Cloth Diapers are two popular titles.

What is the growth potential for a cloth diaper service?

Cloth diaper services serve a single geographic area, such as a city or small regional area. Since you will probably be doing daily drop-offs and pick-ups, you will most likely be relatively limited in how far you can go. However, once you have enough income to hire additional drivers and maybe even additional branches, there is no limit to the area you can reach.

What are some insider tips for jump starting a cloth diaper service?

When washing cloth diapers, it’s extremely important to disinfect them. A good wash routine, Angie Nelson says, will use water that’s at least 160 degrees Fahrenheit. It also may involve multiple washings—some services use up to 13 changes of water when washing diapers.

How and when to build a team

Cloth diaper services can be run as one-person operations. If revenue grows enough, one or more employees may be hired to help with pickups, dropoffs and laundering. It is important to find employees with good social skills (if they will be delivering the diapers).

Read our cloth diaper service hiring guide to learn about the different roles a cloth diaper service typically fills, how much to budget for employee salaries, and how to build your team exactly how you want it.

Part 2 - Is a Cloth Diaper Service business the right fit for you?

Part 3 - Action plan to launch your Cloth Diaper Service business in 90 days