Owning and operating your own commercial laundromat can be quite rewarding, but not without a few hiccups and headaches. If you've been around the laundromat business for any length of time (especially heavy-use operations), you recognize that at times, your equipment will be down. It could be that the water line to your washing machines has been compromised or your dryers aren't running as efficiently as they should be which is causing customers to run their loads at least two times (rather than just once). Whatever the case, having any sort of equipment downtime can be bad for business. With that in mind, today we'll discuss the real cost of equipment downtime for your commercial laundromat business.
Equipment downtime means that for whatever reason, your machines aren't functioning in a way that your business can operate. Much like having a cash register that won't open and no way to accept payment, when your machines aren't working, customers will go elsewhere to conduct their business. Clothes still need to be washed and dried, and if your target market has other options, they'll quickly leave you high and dry.
While equipment downtime can't always be avoided, there are a few things that you can do as the business owner to minimalize the downtime and reduce unnecessary expenses. But before we get to that, let's talk about the real costs associated with equipment downtime.
Equipment Downtime Costs Per Employee
If you have at least one employee on your team, you have real costs associated with equipment not running. In fact, it can cost up to $50 per hour, depending on how many workers you have. Your business is designed to pay employee wages through equipment usage. When that equipment is down, you must essentially pay those costs out of pocket. Furthermore, if your equipment is down for too long, you may have to reduce your staff. As such, equipment downtime can affect at least 20% of your total staff.
Equipment Downtime Costs Per Hour
Building on our previous point, equipment downtime can cost you revenue up to $50 per hour as you're quite literally losing money every hour that your equipment is down. Don't forget that your business requires a certain amount of revenue each day just to open your doors for the day, so when your machines are down, it can hurt! Depending on how long your equipment is out of commission, up to 30% of your overall revenue could be affected.
Don't Forget Repair Costs
This may seem obvious, but if your equipment is down, you're going to have to pay someone to come out and repair your machines (unless you have that specific skill set). If you have enough machines to function, this could mean paying emergency charges for after-hour service. And if the repairs exceed the worth of your machines, you could be looking at purchasing new equipment. Yikes!
What Can You do to Get Ahead of Equipment Downtime Expenses?
As we mentioned earlier, at some point, every commercial laundromat will experience some amount of equipment downtime. It's going to happen, so go ahead and mentally prepare yourself for it.
Actually, take that mental prep a step further and save for the expense. Much like homeowners should have a "rainy day" fund, you too should have money put aside for emergencies. Not only should you have money in the bank, but also make sure that if you ever have to hire an emergency repair company during off-hours, that you have cash available.
The Best Commercial Dryer SC Has Offer Is at T & L Laundry Equipment!
If you are ready to see what purchasing the best commercial dryer SC has to offer can do for your business, give us a call at T & L Equipment Company. We have 40 years of experience in the business, so you can be confident that with our help, you can make the right investment in your business