Tuesday, August 24, 2010

Speaking on Laundry Equipment Efficiency

Last month, I wrote about the concept of Price versus Cost when choosing laundry equipment and how it’s important to research all aspects of potential equipment to determine what it costs in the long run.  This month, I’m going to dig in deeper on what defines one important factor of laundry equipment:  efficiency.

These days, there is a lot of “green” marketing which speaks of conservation, eco-innovation, sustainability and efficiency.  In other industries, many of the products and services that are marketed as green products sometimes cost more and don’t quite work as well.  Purely as a business owner, if the green revolution costs you more for a lower quality product, what’s the incentive to move towards a green initiative?

As a laundry owner, what does going green mean to you?  More importantly, are there tangible benefits that you can obtain from the green revolution which don’t cost you more money but instead make you more money?  I’m happy to report that, in the laundry business, going green with more efficient products can make you money!

The main reason that a more efficient product makes the laundry owner more money boils down to one simple principle:  The coin laundry business is, in a large respect, selling utilities.  Customers come to your store and use your equipment which in turn uses large amounts of water, natural gas, sewer, and electricity.  These combined utility costs are one of the largest expenses for a coin laundry owner.

The coin laundry business is selling utilities, so one of the most basic and effective ways to cut costs is to lower your utility costs.  The most basic way to do this is to choose equipment that is the most energy efficient in the industry.

Let’s start with the washers.  The most obvious (and costly) utility used in a washing machine is water.  If you still have top loading washing machines in your store, these are the most obvious water guzzlers.  The newer front-loading washers can reduce water consumption by as much as 30% from top-loading washers.  However, even the newer front-loading multi-load washers have a much lower water usage than their older counterparts.  Great strides have been made in recent years to lower the water consumption of all washers and this efficiency can directly transfer to bottom line savings to you, the laundry owner.

Of course, the next obvious utility saving factor is sewer costs.  Lower water usage in your equipment translates to less waste water produced and less impact on the sewer system.  In many cases, the sewer fees are calculated by measuring the direct water usage in a facility.  Sewer costs and impact is a factor that is more and more important these days.

If the washer uses less water, it most likely will use less hot water.  This is important because that hot water doesn’t heat itself; it costs money to make that water hot!  So, when a washer uses less hot water, there is a lower associated charge (in the form of natural gas, in most cases) to heat that water.

In addition to all of the water-associated efficiencies that the modern washing machines have, there is a factor which saves on another important utility cost:  electricity.  Most modern washing machines have inverter-driven motor systems.  These inverter motors allow motors to ramp up to speed, maximizing efficiency and lowering start-up amp draws.  Not only does this save on electricity costs, but it maximizes the life of the motor and associated sheaves, belts, couplings, and other system components.

The final utility saving factor in the washing machine is the remaining moisture content (RMC) within the laundered items after the washer is complete.  Front-loading washers, especially soft-mount washers, spin at very high speeds and the resulting increased G-force squeezes extra moisture from the laundered items.  The savings from this lowered RMC is realized as the clothing is dried (for a shorter period of time).  Let’s move on to the dryers and discuss this further.

As for the dryers, the utility saving equation is much simpler.  Most all of the utility usage in a clothes dryer is in the form of natural gas.  The more time that a dryer is burning gas (heating), the more gas is consumed.  A direct measure of the gas used by a dryer as it is operating is the BTU rating.  Simply put, the higher the BTU rating, the more gas that a dryer uses.

When we remove the clothes from the washer that has spun them out with a very high g-force to reduce moisture content, it takes less time (and BTU energy) to get the clothes to the same level of dryness.  Now, there are those that say that less time in the dryer means less income for the dryers but I disagree.  Everything is relative in this world, including dry time.  I would suggest that you raise your dryer vend prices to achieve the same income for a lower dry time.  The key is that your customers will spend less time in your coin laundry.  Your customers will appreciate this fact.  With soft-mount washers paired with efficient dryers, you can market your laundry as a Quick Wash and Dry store, a marketing advantage which would surely appeal to your customers in this fast-paced world!

The most important point about dryer efficiency is that the BTU rating of the dryer relates directly to the gas usage.  There are some dryers on the market which are built to be very efficient in their gas usage and the conservation of heat within the dryer.  These dryers are built with better insulation, improved air circulation, and more efficient ignition systems.  When evaluating a dryer, look carefully at the BTU rating.  A dryer that can dry items in the same time as an older dryer with a lower BTU rating is worth its weight in gold!

Washers and dryers have come a long way in the last several years in terms of efficiency.  The good news for you, as the coin laundry owner, is that you can directly translate these energy savings to money in your pocket.  With the energy efficiencies built into the latest and greatest equipment, you owe it to yourself to examine the savings that this more efficient equipment can provide.  With careful planning and careful vend price analysis/adjustment, newer equipment can help to pay for itself!

Selling Price Versus Cost of Ownership

Okay, you’ve made up your mind that you need to buy some commercial laundry equipment, either as an initial purchase for a new coin store or as replacement for some older equipment.  Now what?  How do you determine which brand of equipment to buy and from what source?

You may start by comparing laundry equipment from all of the various manufacturers, comparing spec-to-spec to make sure that they match up.  Once you’ve determined the comparable equipment from each manufacturer, you just compare the prices and make your decision, right?

I suggest there are many additional pieces to the puzzle aside from the selling price.  When you purchase something that lasts 10-15 years, the process of buying that item changes from a simple purchase to an investment.  When making an investment in something, you look at things a little differently.  If the equipment isn’t reliable or has other operational costs which you didn’t anticipate, 10-15 years is a long time to deal with that problem and can end up costing you much more than you bargained for.

There is one thing to keep in mind, no matter what or where you choose.  Don’t forget about the cost of ownership for the equipment!

There are many other products that you may be familiar with which have a low selling price but a high cost of ownership.  There was a time in the recent past when the Hummer SUV vehicles were selling at very low comparative prices.  The reason for this price drop was based mostly on the price of gas at that time.  The Hummers used such a large amount of gasoline that the cost of ownership was prohibitively expensive.

Another example is certain inkjet printers.  These days, you can open the Sunday paper on any given week and find inkjet printers at a very low selling price.  However, the ink cartridges which are quickly used up by this machine are very expensive.  The cost of using this product on a daily basis, again, the cost of ownership, is very expensive.

Listed below are some very important factors that should be considered when choosing commercial laundry equipment:

Washer Efficiency
In recent years, great strides have been made in washer efficiency, mostly with the use of front loading washers and inverter-driven (ramp-up) motors.  What is the water usage of the washers?  How much residual moisture is left in the clothes after spinning out? (High speed spin out can effectively pre-dry the clothes.)  How much electricity and torque is required when the motor rotates the basket?

Dryer Efficiency
There have also been advancements in dryer technology which help dryers to be more efficient.  Does one dryer have a lower BTU rating with the same dry results as equipment with higher BTU ratings?  (The BTU measurement corresponds to the amount of gas that a dryer uses; lower BTU = less gas.)  Does the dryer have insulating features which help to contain the heat within the dryer (increasing efficiency and keeping the laundry cooler and quieter)?  Are there moisture sensors to help limit gas usage after the clothes have dried?

Labor and Parts Warranty
Most distributors provide a labor warranty and support the manufacturer’s parts warranty program.  How long is the labor warranty?  How long is the parts warranty?  Which parts in the machine have limited warranty coverage and which are fully covered?  Does the warranty cover the original owner only?  Read the fine print here!

Distributor
As you initially invest in the equipment and throughout its life cycle, it is important that you have a reputable distributor to help you expertly install and support the equipment purchase.  How long has the distributor been in business?  How knowledgeable is the salesperson?  What quality of service can be expected?  Is there a fully stocked Parts Department and service technicians to support the product?

Durability of Equipment
Admittedly the most difficult aspect to gauge is the “lasting power” of the machine after continued use, since most times you are buying the newest model.  Do you have any experience with this brand of equipment?  Can you speak to someone who already owns the brand that you are considering?  Can you go to a showroom and put your hands on the machine in question, perhaps even taking off the covers to examine the inner workings?

There are many factors which you must consider when making an investment in laundry equipment.  It is not a simple purchase, based on the selling price alone.  Instead, it’s an equation which needs to be considered carefully in order to maximize the money that you’re spending, both now, and 10-15 years down the road.  Doing your homework now can save you a lot of stress, time, and money in the long run.