If you own a laundromat, utility bills can have a major impact on your bottom line. Water, sewer, gas, and electricity are ongoing expenses that don't disappear when business is slow. That's why finding ways to lower laundromat utility costs should be part of both opening a new store and managing an established one.
The good news is that reducing utility expenses doesn't necessarily mean asking customers to use less laundry equipment or cutting back on the services you offer. In many cases, the biggest opportunities come from understanding how your equipment operates, identifying inefficiencies, and investing in machines that use resources more effectively.
So, what can laundromat owners actually do to reduce utility costs?
Why Are Laundromat Utility Costs So High?
A laundromat operates equipment throughout the day, often processing hundreds of loads over the course of a week.
Every load can involve some combination of:
- Water
- Sewer Usage
- Gas
- Electricity
- Hot Water
When you multiply those costs by the number of machines and cycles running throughout the day, even small inefficiencies can add up.
T&L has previously noted that utility expenses are one of the major ongoing costs associated with operating a laundromat, particularly when older or inefficient equipment is involved. That makes utility management an important part of protecting long-term profitability.
How Can You Lower Laundromat Utility Costs?
There isn't one solution that works for every store. Instead, successful utility management usually involves several smaller improvements working together.
1. Upgrade Outdated Laundry Equipment
One of the most effective ways to lower laundromat utility costs may be replacing older equipment with newer, more efficient machines.
Older washers can use significantly more water per cycle than modern high-efficiency equipment. T&L's previous guidance notes that older machines could use 32 to 38 gallons per load, while newer models may use considerably less.
Less water doesn't just mean a lower water bill. It can also reduce sewer costs and, when hot water is involved, reduce the energy required to heat that water. That means the right equipment can affect several parts of your utility bill at once.
Does Water-Efficient Equipment Really Save Money?
Yes, particularly in a high-volume laundromat. Think about the difference between saving a few gallons on one load and saving those gallons on thousands of loads.
The exact savings will vary based on the equipment, programming, utility rates, and number of cycles your store processes. That's why it's useful to look at efficiency in terms of cost per load, rather than simply asking how many gallons a machine uses.
Don't Forget About Your Dryers
When you're trying to lower laundromat utility costs, it's easy to focus on washers because water usage is so obvious. Dryers deserve attention, too.
Drying laundry requires energy, whether your machines are powered by gas or electricity. Equipment that takes longer to dry a load can increase operating costs and may also create customer frustration.
A properly functioning dryer should provide consistent drying performance without requiring customers to run multiple cycles unnecessarily. If customers regularly complain that clothes aren't drying properly, the problem could be the equipment, airflow, maintenance, loading practices, or another issue that deserves investigation.
How Does Maintenance Affect Utility Costs?
Equipment doesn't have to be old to become inefficient. Poorly maintained machines can consume more resources than they should.
Regular maintenance can help identify problems such as:
- Water Leaks
- Clogged Drains
- Poor Dryer Airflow
- Worn Components
- Heating Problems
- Improperly Operating Controls
A machine that isn't working correctly may continue running while quietly costing more money every day.
Check Your Water Usage
If your water bill suddenly increases, don't automatically assume that rates went up. Look for changes in consumption. A leak, malfunctioning washer, or plumbing problem can increase water usage without producing an obvious problem for customers.
Tracking water consumption over time can help you establish a baseline. If usage suddenly jumps without a corresponding increase in customer volume, it's worth investigating.
This is a relatively simple step that could help lower laundromat utility costs without requiring a major equipment investment.
Program Your Machines Carefully
Commercial laundry equipment is programmable, which means owners need to make sure the selected cycles make sense for the business.
Do customers really need the longest, hottest cycle for every type of load? Probably not. Appropriate programming can help balance cleaning performance with water and energy consumption. The goal isn't to sacrifice cleaning quality. It's to make sure you're not using more resources than necessary to accomplish the job.
Look at Your Cost Per Load
One of the best ways to understand laundromat utility costs is to calculate what it actually costs your business to process a load. Owners need to consider factors such as:
- Water Cost
- Sewer Cost
- Gas Cost
- Electricity
- Water Used Per Cycle
Those numbers can then be used to estimate the utility cost associated with individual machines and cycles. Once you know your approximate cost per load, you have a much better starting point for evaluating equipment upgrades.
Should You Replace All Your Machines at Once?
Not necessarily. A complete equipment replacement may make sense for some laundromats, particularly when machines are nearing the end of their useful life. For others, a phased approach may be more practical.
You could prioritize equipment that:
- Uses Excessive Water
- Requires Frequent Repairs
- Has High Operating Costs
- Produces Poor Drying Performance
- Has Limited Parts Availability
- No Longer Meets Your Business Needs
Replacing the machines that are costing you the most may allow you to begin improving efficiency without completely rebuilding the store.
What About Utility Rates?
Equipment efficiency isn't the only factor affecting your bill. Utility rates vary by location, and some businesses may have different rate structures depending on when and how they consume energy.
If your utility expenses seem unusually high, review your bills carefully and understand what you're actually being charged for. This can help you distinguish between:
“We're using too much water.”
and
“Our water or sewer rates have changed.”
Those are very different problems and may require very different solutions.
Can Energy-Efficient Equipment Improve Profitability?
Potentially, yes. Reducing operating expenses can improve the amount of revenue your business retains, assuming customer demand and other expenses remain consistent.
That's one reason equipment efficiency should be considered when you're evaluating a new machine.
Don't look only at:
“How much does this washer cost?”
Also ask:
“How much will this washer cost to operate over its useful life?”
A machine with a higher initial purchase price may make financial sense if it uses significantly fewer resources and requires less maintenance over time.
How Do You Know Which Equipment Will Save You Money?
This is where working with a commercial laundry equipment professional can be particularly helpful. Different machines have different water, gas, electrical, capacity, and cycle specifications. The best choice for one laundromat isn't necessarily the best choice for another.
T&L works with laundromat owners to evaluate equipment, store layouts, utility considerations, financing, installation, and ongoing service. An equipment provider can help you look at the bigger picture rather than simply comparing the sticker prices of individual machines.
Start With the Numbers
If you're trying to lower laundromat utility costs, start by understanding what you're spending today. Review your water, sewer, gas, and electricity bills. Track usage. Monitor equipment performance. Look for leaks and maintenance problems. Then determine which machines are responsible for the greatest ongoing expenses.
From there, you can decide whether maintenance, programming changes, equipment upgrades, or a combination of strategies makes the most sense.
T&L Equipment Sales Company has been helping laundromat owners and commercial laundry operators throughout North Carolina and South Carolina since 1976. The company provides commercial laundry equipment, planning, installation, financing, parts, and service.
If you're concerned about rising laundromat utility costs, T&L can help you evaluate your current equipment and explore options designed to improve efficiency and control operating expenses.
Sometimes the best way to increase profitability isn't to charge customers more. It's to find ways to spend less to provide the same service.
