Guide
Commercial laundry running costs: where the money actually goes
Updated
The purchase price of a washer-extractor is the smallest number in this decision. What you spend every week is the one that decides whether in-house was right.
Build your own cost per kilo
Outsourced laundry is quoted per kilo, so the only way to argue with the quote is to have your own figure. Build it from these lines, over a year, then divide by annual kilos.
| Line | Where the number comes from | Commonly forgotten |
|---|---|---|
| Water in and effluent out | Litres per cycle from the machine data, at your metered rate | Sewerage charge, usually billed on volume in |
| Heating the water | Electricity or gas at your tariff, per cycle | Standing losses on a stored hot water system |
| Drying | kWh or gas per dryer cycle at your tariff | Longer cycles when the extract spin is weak |
| Detergent and chemistry | Dose per kilo from the supplier, at your contract price | Dosing equipment rental and softener |
| Labour | Hours per week at your real employment cost | Cover for holiday and sickness |
| Servicing and repairs | Contract cost plus a realistic parts allowance | Downtime and emergency callouts |
| Capital or finance | Purchase spread over expected life, or the monthly payment | The replacement cycle arriving sooner than planned |
The three levers that actually cut running cost
- Extract harder. Every extra percentage point of water spun out is drying energy you never spend. High-G washer-extractors cost more and pay it back in the dryer.
- Fill the machine. Half loads are the most expensive laundry in the building, and they are usually a scheduling problem rather than a machine problem.
- Get the drying energy source right. Gas, electric resistance and heat pump are genuinely different economics. See the equipment guide.
Testing an outsourced quote
- Ask what the price includes at your frequency. Collection, delivery, and how many rounds a week.
- Ask for the rate at the band above and below. Volume bands are where a per-kilo price quietly changes.
- Ask for the charge schedule in full. Rejected items, re-washes, lost linen, damaged linen, minimum charges, fuel or energy surcharges.
- Ask how the price changes, and when. An annual uplift mechanism you did not read is the most common source of contract regret.
- Ask what happens on a missed collection, and get the answer in the contract rather than in the sales meeting.
Contract terms worth negotiating
- Term length against price. A longer term should buy a better rate. If it does not, ask why you are signing it.
- Notice period and rollover. Automatic renewal with a long notice period is where a good deal turns into a bad one.
- Volume flexibility. Seasonal businesses need a quiet-month position that is not a minimum charge designed for a busy one.
- Linen ownership. Renting linen moves capital to opex and hands you a loss and damage charge you cannot fully control.
- Service levels with teeth. A response time with no consequence attached is a preference, not a commitment.
Cost per kilo is site specific: tariffs, wage rates, machine efficiency and load discipline all move it, so we publish the method rather than a number. Get quotes for both routes and compare them against the figure you built.