CHICAGO — Self-service laundry owners have faced a significant challenge in recent years: rising utility costs. As the costs of water, electricity and natural gas have increased, maintaining profitability while offering a reliable service has become more difficult.
The cost of utilities among self-service laundry owners in 2023 averaged 21.6% as a percentage of gross, according to results from American Coin-Op’s 2023-24 State of the Industry survey released in April. Nearly 40% of operators who were polled reported having a utilities cost that exceeded 20%; individual responses were as high as 75%!
By making strategic improvements and educating customers on best practices, owners can alleviate high utility costs and boost overall efficiency. Here are some tactics that store owners can embrace in an effort to combat rising costs and improve their operations:
Invest in Energy-Efficient Equipment
Investing in energy-efficient equipment is one of the most effective ways to reduce utility costs. Modern washers and dryers are designed to use less water and electricity while maintaining high performance.
If several years have passed since a laundry last upgraded its equipment, it may be time for the owner to take a look once again.
Utilizing the right mix of new, cutting-edge laundry equipment reduces utility expenses plus offers new profit-generating opportunities. It may require a sizable investment but could make sense for the operation once the costs tied to older, less-efficient equipment are taken into account.
Today’s advanced vended models offer many energy- and resource-saving features, including automatic weighing of loads so that precise amounts of water are used; high-speed extraction that removes moisture from every load, reducing dry time; customized wash programs that adjust water level, wash time and rinses per load based on customer need or preference; stronger machine frames and leak detection that reduce preventive maintenance and repairs; and dryer sensors that determine when laundry is dry and lower the operating temperature or stop the drum altogether.
Optimize Water Usage
It’s no surprise that water is a major expense for laundromats, so optimizing its usage is crucial.
Investing in a water recycling system can drastically reduce water consumption. These systems collect and filter water from the washers, allowing it to be reused in subsequent wash cycles. This not only lowers water bills but also reduces the environmental impact.
Install low-flow fixtures in sinks and toilets to reduce water usage. These fixtures are designed to maintain adequate water pressure while using less water, leading to significant savings over time.
See that all plumbing systems and machines are regularly maintained to prevent leaks. Even small ones can lead to substantial water waste over time.
Implement Energy Management Systems
These can help laundromat owners monitor and control energy usage more effectively. They provide real-time data on energy consumption, allowing for informed decisions and adjustments.
Smart meters provide detailed information on energy usage, enabling owners to identify peak usage times and areas of inefficiency. This data can be used to adjust operating hours or stagger machine usage to avoid high energy costs during peak times.
Programmable thermostats control heating and cooling systems more efficiently. These devices can be programmed to adjust temperatures based on occupancy, reducing energy consumption when a laundromat isn’t in use.
Automated lighting systems use sensors to turn lights on and off based on occupancy. This ensures that lights are only used when necessary, reducing electricity costs.
Explore Alternative Energy Sources
There are alternatives that can provide long-term savings and reduce dependence on traditional utilities.
Installing solar panels, for example, could significantly reduce electricity costs. Solar energy is a renewable resource with the potential to provide a substantial portion of a laundromat’s energy needs. While the initial investment might be high, long-term savings coupled with tax incentives make it worthwhile to consider.
If a laundromat is in an area with consistent wind patterns, small wind turbines can be a viable alternative energy source. Wind energy can complement solar power, providing additional savings in electricity.
Improve Operational Efficiency
Enhancing efficiency throughout an operation can lead to significant energy savings. By optimizing various aspects, laundry owners can reduce waste and improve overall performance.
First, look at load optimization. Encourage customers to use machines at full capacity, because underloading machines not only wastes water and energy but also reduces wash-and-dry cycle efficiency. Clear signage and staff education can help promote optimal usage.
Regularly maintaining machines ensures they operate at peak efficiency. Scheduled maintenance can prevent breakdowns and extend the lifespans of equipment, reducing the need for costly repairs and replacements.
And train employees on best practices for energy and water conservation. Doing simple things such as turning off unused machines and promptly addressing leaks can significantly impact utility costs.
Engage and Educate Customers
Helping customers to understand how energy and water conversation can impact the laundry’s — and, by extension, their — costs can boost efficiency.
Place informative signage throughout the laundromat to educate customers in why conserving water and energy is important. Provide tips on how to load machines properly and to use settings that minimize utility consumption.
Use incentive programs to encourage customers to use the store during off-peak hours. Discounts or loyalty rewards for usage during slower times can help balance the load on machines and reduce energy costs.
And be sure to market the laundromat’s commitment to sustainability and energy efficiency. Highlighting eco-friendly practices can attract environmentally conscious customers and enhance a business’ reputation.
More tips to come in Thursday’s conclusion...
Have a question or comment? E-mail our editor Bruce Beggs at [email protected].
