TOP 10 COSTS OF AN ON-PREMISE LAUNDRY
- LAUNDRY PRODUCTION PAYROLL: Payroll costs for wages paid to hourly employees who handle linen, including laundry production, soiled sort, washroom, flatwork, ironing, tumble dry operation, etc.
- MANAGEMENT PAYROLL: Employees who handle linen inspection; linen control; janitorial services; machinery repairs and maintenance; and internal linen distribution.
- EMPLOYEE BENEFITS: Includes payment of social security, workers compensation, holidays, vacations, state unemployment, health insurance, union contributions, etc.
- LAUNDRY CHEMICALS: All detergents, alkalis, bleach, sour, fabric softener, antibacterial agents, starch, etc.
- MAINTENANCE, REPAIR, AND PARTS COSTS: Includes all machine repair parts, lubricants, drive belts, iron pads and covers, tools, boiler treatment and water softener salt.
- UTILITIES: Gas, electricity, fuel oil and water account for a large part of expenses.
- TAXES, LICENSES & PERMITS: Taxes, licenses and operating permits paid by the facility and allocated to laundry operations.
- EQUIPMENT COSTS: Equipment experiences wear every time it is operated. Replacement costs must be considered.
- INSURANCE / OTHER BUSINESS EXPENSES: Insurance, lease charges, safety expenses, uniforms, training, and other expenses allocated to the laundry.
- LOST OPPORTUNITY COSTS: Probably the single most overlooked cost. The space occupied by your laundry and linen storage areas could be used for a revenue-producing facility, not a cost center.
