How Outsourcing Laundry Saves Money: The Real Cost of Doing Laundry In-House

For many businesses, laundry is simply considered part of the daily routine. Employees wash towels, uniforms, linens, sheets, cleaning cloths, and other washable items whenever they have time.

Because the business isn't writing a separate check to a laundry company, it can be tempting to assume that doing laundry in-house is the least expensive option.

But is it?

The answer may surprise you.

The true cost of doing laundry in-house includes much more than detergent and utility bills. Once you factor in employee labor, water, sewer, electricity, natural gas, equipment maintenance, repairs, replacement costs, laundry space, and lost employee productivity, your "free" laundry operation may actually be costing your business thousands of dollars every year.

Outsourcing laundry can eliminate or reduce many of those expenses while allowing employees to focus on the work that directly generates revenue.

For businesses in St. Petersburg and the surrounding Tampa Bay area, professional commercial laundry service can be a practical way to reduce operating costs and simplify daily operations.

Let's look at how outsourcing laundry can save your business money.

1. You Save on Employee Labor

One of the biggest expenses associated with in-house laundry is labor.

Someone has to sort the laundry, load the washers, transfer loads to the dryers, remove the laundry, fold it, and put it away.

That takes time.

Even when laundry isn't an employee's primary responsibility, the business is still paying that employee while they perform laundry duties.

For example, suppose an employee earns $18 per hour and spends five hours each week handling laundry.

That's:

$90 per week

or approximately:

$4,680 per year

And that's before considering payroll taxes and other employment costs.

If your business requires 10 hours of laundry labor each week, the direct wage cost doubles to approximately $9,360 per year.

The bigger question, however, is what that employee could be doing instead.

Could they be serving customers?

Could they be preparing rooms?

Could they be helping clients?

Could they be cleaning, selling, answering phones, or handling other important responsibilities?

When you outsource laundry, you aren't simply eliminating laundry labor.

You're purchasing back valuable employee time.

2. You Reduce Water and Sewer Costs

Laundry uses a significant amount of water.

Every load requires water for washing and rinsing, and businesses may process dozens or hundreds of loads every month.

That means your laundry operation affects both your water bill and your sewer bill.

The more laundry you process, the more those costs can add up.

Commercial laundry facilities are designed specifically for processing large volumes of laundry efficiently. High-capacity equipment can handle larger loads and may reduce the number of individual cycles required compared with smaller machines.

When you outsource your laundry, the water and sewer expenses associated with processing those loads become part of the service provider's operation rather than another variable expense on your utility bill.

Your exact savings will depend on your laundry volume, local utility rates, equipment, and service pricing, but the important point is that water isn't free.

It is part of the true cost of doing laundry in-house.

3. You Reduce Electricity and Gas Consumption

Water isn't the only utility involved.

Drying laundry requires energy, and depending on your equipment, that may mean electricity, natural gas, or both.

Commercial dryers can consume substantial amounts of energy when operated repeatedly throughout the day.

Businesses with high laundry volumes may have dryers running for hours at a time.

Then there is the energy required to heat the wash water.

When you calculate the cost of in-house laundry, your utility analysis should include:

• Water
• Sewer
• Electricity
• Natural gas
• Water heating
• Dryer operation

These expenses can fluctuate with utility rates and seasonal usage.

Outsourcing can make your operating expenses easier to manage because you no longer have the same direct utility burden associated with processing your business laundry.

4. You Spend Less on Detergent and Laundry Supplies

Laundry requires more than a washing machine and water.

Businesses may need to purchase:

• Commercial detergent
• Fabric softener
• Bleach
• Stain removers
• Odor eliminators
• Laundry bags
• Labels
• Hangers
• Other laundry chemicals and supplies

These expenses may not look significant when viewed individually.

But they add up over time.

A restaurant washing hundreds of towels, a salon washing dozens of towels every day, or a vacation rental company processing multiple sets of linens can go through a substantial amount of laundry supplies.

When you outsource laundry, many of these supplies are included in or built into the service.

That means fewer products to purchase, store, monitor, and reorder.

5. You Avoid Expensive Equipment Purchases

Commercial laundry equipment can represent a major upfront investment.

Depending on your business, you may need multiple washers and dryers capable of handling your laundry volume.

You may also need:

• Laundry carts
• Folding tables
• Storage areas
• Ventilation
• Plumbing
• Electrical upgrades
• Water heating capacity

The initial investment can be substantial.

And buying the equipment is only the beginning.

Eventually, machines need to be repaired or replaced.

Outsourcing laundry eliminates the need for your business to purchase and maintain its own laundry equipment.

Instead of investing thousands of dollars into a laundry room, you can use that capital for areas of the business that directly support growth.

6. You Reduce Repair and Maintenance Expenses

Washers and dryers are machines.

Like any other equipment, they eventually require maintenance and repairs.

A business operating its own laundry equipment may encounter:

• Broken belts
• Heating problems
• Drain problems
• Water leaks
• Electrical problems
• Door or seal failures
• Control system problems
• Routine maintenance

Repair costs can be unpredictable.

A machine may work perfectly for months and then suddenly require an expensive repair.

And while the machine is down, your laundry still needs to be processed.

That can create additional costs and operational headaches.

With outsourced laundry, your business isn't responsible for maintaining the laundry provider's washers and dryers.

7. You Don't Have to Replace Your Laundry Equipment

Eventually, every piece of laundry equipment reaches the end of its useful life.

A business may suddenly face a major capital expense when one or more machines need to be replaced.

That expense isn't always easy to budget.

A business that has invested heavily in laundry equipment may have tens of thousands of dollars tied up in machines that aren't part of its primary revenue-producing operation.

Outsourcing changes the equation.

Instead of owning the equipment, you pay for the laundry service you actually use.

That can turn a large capital expense into a more predictable operating expense.

8. You Recover Valuable Employee Productivity

This may be the most important financial benefit of outsourcing laundry.

Consider a restaurant employee who spends two hours each day handling laundry.

That's approximately 10 hours per week.

At $18 per hour, the direct labor cost is about $180 per week.

But the opportunity cost could be even greater.

Those 10 hours could potentially be used for serving customers, preparing food, cleaning dining areas, stocking supplies, or performing other tasks that help the business operate more efficiently.

The same principle applies to other industries.

A salon employee should ideally be focused on clients.

A property manager should be focused on managing properties.

A gym employee should be focused on members.

A restaurant employee should be focused on restaurant operations.

A business shouldn't automatically assume that laundry is a low-cost employee task simply because an employee can do it.

Employee time has value.

9. You Can Reduce the Amount of Space Dedicated to Laundry

Space is another hidden cost.

An in-house laundry operation may require a dedicated room or area for:

• Washers
• Dryers
• Laundry carts
• Dirty laundry
• Clean laundry
• Folding
• Storage

That space could potentially be used for something more valuable.

A restaurant might use it for additional storage.

A salon could use space for another service area.

A vacation rental company could use office space more efficiently.

A growing business may discover that eliminating an in-house laundry area creates room for expansion.

The value of that space depends on your particular business, but it should be included when calculating the true cost of in-house laundry.

10. Outsourcing Can Reduce Laundry-Related Downtime

Laundry problems can interrupt normal business operations.

A broken washer can create a backlog.

A dryer that isn't working can leave towels and linens waiting to be processed.

An employee who calls out sick can create another problem if that employee was responsible for laundry.

Suddenly, your business has to figure out how to get the laundry finished.

Outsourcing gives you another option.

Instead of relying entirely on your own machines and employees, you have a dedicated laundry provider handling the processing.

That can make your operation more resilient when business volume increases or unexpected problems occur.

11. Outsourcing Can Help as Your Business Grows

Laundry volume often grows along with a business.

More customers can mean more towels.

More guests can mean more sheets and linens.

More rental properties can mean more laundry.

More employees can mean more uniforms.

Eventually, an in-house laundry operation may reach its capacity.

The business then has to consider purchasing more equipment, hiring additional employees, or expanding its laundry space.

Outsourcing can allow your laundry capacity to grow without requiring the same investment in your own facility.

This can be especially valuable for seasonal businesses.

A vacation rental company, for example, may experience dramatically higher laundry volume during busy travel periods.

Instead of maintaining enough equipment and staff to handle the maximum possible volume year-round, outsourcing can provide greater flexibility.

What Does In-House Laundry Really Cost?

The easiest way to understand the potential savings is to calculate the complete cost of doing laundry yourself.

Add together:

Labor + water + sewer + electricity + gas + detergent + supplies + maintenance + repairs + equipment replacement + space + lost productivity

Then compare that number with the cost of commercial laundry service.

For example, imagine a business spends:

• $90 per week on employee laundry labor
• $20 per week on water and sewer
• $25 per week on electricity and gas
• $15 per week on detergent and supplies
• $20 per week on equipment maintenance and replacement allowance

That's approximately:

$170 per week

or:

$8,840 per year

And that example doesn't place a dollar value on the additional productivity your employees could provide if they weren't doing laundry.

Actual costs will vary considerably by business. The purpose of this example is to demonstrate how to calculate the total cost rather than suggesting that every business has the same expenses.

Simple Laundry Cost-Comparison Worksheet

Want to find out what laundry is really costing your business?

Use this simple worksheet to compare your current in-house laundry expenses with the cost of outsourcing.

Step 1: Calculate Your Current In-House Cost

Tip: To calculate annual costs from weekly costs, multiply your weekly amount by 52.

Step 2: Add the Cost of Employee Time

Remember that employee time can have an opportunity cost. If employees could be serving customers or completing other valuable work instead of doing laundry, consider that when evaluating your total cost.

Step 3: Compare With Commercial Laundry

To estimate potential savings, subtract your estimated commercial laundry cost from your total in-house laundry cost.

In-House Cost − Commercial Laundry Cost = Potential Savings

Keep in mind that commercial laundry pricing varies based on laundry volume, type of items, service requirements, pickup and delivery arrangements, and other factors. Use an actual quote from a laundry provider for the most accurate comparison.

Does Outsourcing Laundry Always Save Money?

Not necessarily.

Commercial laundry isn't automatically cheaper for every business.

A company that generates only a small amount of laundry and already owns reliable equipment may find that in-house laundry makes financial sense.

However, outsourcing becomes increasingly attractive when laundry volume increases or when employees are spending significant amounts of time doing laundry.

The goal isn't simply to find the lowest laundry price.

The goal is to find the lowest total cost of getting your laundry professionally handled.

That's an important distinction.

Who Should Consider Outsourcing Laundry?

Commercial laundry can be especially valuable for businesses that regularly process large quantities of washable items.

Examples include:

Restaurants

Restaurants may have kitchen towels, bar towels, uniforms, aprons, cleaning cloths, and table linens.

Salons and Spas

Salons and spas can generate large quantities of towels every day.

Gyms and Fitness Centers

Fitness facilities may process towels used by members and employees.

Vacation Rentals

Airbnb and vacation rental operators may need to process sheets, towels, pillowcases, and other linens between guests.

Medical and Professional Offices

Some offices use washable towels, uniforms, gowns, or other textile products.

Childcare Facilities

Daycare and childcare businesses may regularly wash blankets, bedding, towels, and cleaning cloths.

How to Decide If Outsourcing Makes Financial Sense

Before making a decision, track your laundry for at least a few weeks.

Record:

• How many pounds or loads you process
• How many employee hours are spent on laundry
• Water and sewer usage
• Electricity and gas usage
• Detergent and supply purchases
• Equipment repairs
• Equipment maintenance
• Equipment replacement costs

Then calculate your actual cost.

Don't forget to include employee productivity.

Once you know what your laundry is really costing you, request a commercial laundry quote and compare the two numbers.

You may discover that outsourcing is considerably more competitive than you expected.

Outsourcing Laundry Is an Investment in Your Business

The biggest mistake businesses make is thinking about commercial laundry as simply another expense.

Instead, consider it an operational investment.

You're not just paying someone to wash towels.

You're potentially buying back employee hours.

You're reducing utility consumption.

You're eliminating equipment maintenance.

You're avoiding capital expenditures.

You're freeing up valuable space.

You're simplifying operations.

And you're allowing your employees to focus on the work that matters most to your customers.

When you look at the complete picture, outsourcing laundry can make financial sense even when the service itself appears to be an additional expense.

Let Sum Beach Laundry Handle Your Business Laundry

If your St. Petersburg-area business is spending too much time and money handling laundry in-house, Sum Beach Laundry can help.

Our Wash-Dry-Fold service is designed for businesses that need dependable laundry service without the hassle and expense of operating their own laundry room.

We can work with businesses such as restaurants, salons, spas, gyms, vacation rental operators, offices, childcare facilities, and other organizations that regularly generate laundry.

Instead of paying your employees to spend hours sorting, washing, drying, and folding, let them focus on your customers and your business.

Less laundry work. Less equipment to maintain. More time for your business.

Contact Sum Beach Laundry to discuss your commercial laundry needs and determine whether outsourcing can save your business money.

Sum Beach Laundry — St. Petersburg, Florida.