Laundry professionals must consider missed-opportunity costs
In the business world, few things can be more expensive than missed-opportunity costs. Nowhere is that more accurate than in the laundry business. Laundromat owners putting off upgrading dated equipment will suffer a heavy missed-opportunity costs.
- Efficiency. Whether it’s upgrading top load washers to washer-extractors, or inefficient tumble dryers, the savings are significant. Washer-extractors not only bring improved water efficiency, but their high G-Force extraction speeds reduce drying times. Every day that goes by without an upgrade is money lost to the owner …in some ways, literally down the drain.
- Return on investment. Upgrading equipment, even just a bank of washer-extractors, gives owners an opportunity to command a higher vend. Now, add in the significant lift – sometimes in the double figures as a percent of revenue – from cycle modifiers, and the ROI can really raise the laundry’s bottom line. But again, every day that goes by is another missed opportunity cost to your business. Uncaptured revenue is gone forever.
- New investor. The business world moves fast. So, if you’ve embarked on the buildout of your new store, but your equipment supplier is nine months, a year, or longer in even getting your equipment, much less getting it installed, what’s the missed-opportunity cost of a year of lost revenue?
The same is true on the on-premises laundry front. Missed-opportunity costs cannot be recouped.
- Efficiency. Whether it’s upgrading top load washers to washer-extractors, or inefficient tumble dryers, the savings are significant. Washer-extractors not only bring improved water efficiency, but their high G-Force extraction speeds reduce drying times. The simple move to tumblers equipped with over-dry protection can save significant sums in labor and utilities. Every day that goes by without an upgrade is money lost to the property …in some ways, literally down the drain.
- Quality. Upgrading equipment expands beyond just utility efficiency and touches quality, labor, and linen replacement costs. Quite simply, user-friendly controls reduce training time – thus, maximizing labor – while also helping ensure correct cycles are utilized. All this combines for better care of linens and improved finished quality. Better quality means a better guest (patient/resident care) experience and longer linen life. But again, every day that goes by is another missed opportunity cost to your business. Uncaptured revenue is gone forever.
- Repairs. Dated equipment that needs frequent repairs bring cost as well. While it may seem like smart to keep limping dated equipment along, those repair dollars spent are gone forever. When you look at the efficiency and quality advantages of upgrading, repair dollars often are better invested in a more reliable long-term solution.
Bottom line, with the current business environment/economy, no business can wait for equipment. We understand this at Alliance Laundry Systems and that’s why we’ve worked hard to get our customers products as fast as possible with little or no waiting. Long lead times come at a significant missed-opportunity cost.
If you’re ready to invest in your laundry, we are ready to help. Visit us at the Clean Show from July 30 through Aug. 2, in Atlanta, Ga. at the Georgia World Congress Center.
We have some of the best lead times in the industry and our laundry experts can run cost calculations on just what your laundromat or on-premises laundry can reap in improved efficiency and ROI.