The On-Premises Laundry (OPL) Cost Calculator demonstrates the clear advantages to using an external provider of laundry service, namely avoiding the economic stress of maintaining an internally managed operation.
Cost reduction: Outsourcing enables laundry users to focus more on core business and reduce costs. OPLs are expensive to operate, usually lacking the volume to run highly efficient equipment, so they are labor intensive and consume large quantities of utilities like natural gas, water, sewer and electricity. Add maintenance and repair costs, chemicals, production supplies, overhead, insurance, workers compensation, taxes, licenses, permits, equipment depreciation, etc. and the REAL cost of processing a pound of linen emerges. Outsourcing reduces “hidden” costs through space savings, reduced linen inventory and eliminating the need to manage a non-core business.
Pay as you go: Many costs associated with an OPL cannot be avoided with a decline in occupancy level. As a result, in low occupancy periods, the cost to process a pound of linen increases significantly. Textile service provider programs replace this current fixed-cost structure of operating an internal laundry with a variable-cost model where users “pay as they go.”
Floor space use: Not having an on-premise laundry facilitates use of real estate for other purposes. Additional square footage is available for revenue generation.
Capital expenditures: Investment in laundry and material handling equipment can be very high. Using a textile service provider avoids depleting capital that can be used for other purposes.
Disclaimer: TRSA is not liable for results determined by the OPL Cost Calculator.