Water becomes the Highest Costing Utility.
In several municipalities Water & Sewer costs have risen to be the Highest costing utility, even costing more that Natural Gas. Natural Gas is used to dry the clothes and also to generate Hot water. Traditionally Natural Gas has been the Highest costing Utility expense for Laundromats. Typically Gas costs have been 3-4 times the cost of electricity and significantly higher than the combined water & sewer costs.
In the new age reality, Water & Sewer costs have become a very expensive and significant Utility expense. Why have Water & Sewer costs risen to be one of the highest utility costs? During the last 5 years of the recession the demand for Natural Gas has dropped and so has it price. Natural Gas is probable at its lowest price in the last 8-10 years. The low cost of Natural Gas is directly due to the sluggish economy and the excess capacity of Natural Gas. Fracking in the Northeast and bring online more Gas wells in the Gulf of Mexico has caused an increase in Natural Gas supply.
On the other hand, local municipalities have had to improve their plumbing infrastructure by increasing and updating their sewer capacity and also increasing the water quality of the effluent leaving the sewer plant. In addition local communities have been forced to increase the water quality standards for drinking water by installing huge (and expensive) filtration plants. Both the water supply and sewer improvements have cause huge capital costs that the local towns & counties have passed along to the water consumers.
One of the largest consumers of water & generators of sewage are Laundromats. The costs of water & sewer have been steadily increasing over the last 10 years. Currently deregulated Gas & Electricity and the recession have stabilized the price of these utilities. But the costs associated with water & sewage have kept on increasing to the point where now the Water & Sewer cost more than the cost of Natural Gas.
This is an interesting but also an alarming trend. Do we see the costs of water & sewer stabilizing? Are utilities another way for local government to nickel & dime the public to help balance their budget? I don't know. All I know is that the once insignificant costs of water & sewer have grown in proportions to be a major concern. For our Laundromats to make money, we need to keep our eye on all of our expenses and to increase our vend prices accordingly.
Microprocessor Washers can Save up to
55% of your Water & Sewer costs.
Many of the New modern washers build after 2005 are controlled by Microprocessors. All washers are either controlled by microprocessors or by fixed timers. Microprocessors allow the Laundromat owner to customize the wash cycles they provide for their customers. It also allows them the ability to save up to 55% of their water & sewer costs.
I own a Laundromat in Mt. Kisco, NY where several years back we were paying over $44,000 a year in water & sewer costs. The old washers had fixed timers and we had taken the un-usual step of eliminating the pre-wash and only had 4 water changes (1 wash & 3 rinses). We decided to replace these washers with the (back then) the new "A" Microprocessor washers. We set the new washers to have only 3 water changes and were hoping for a reduction in our water bill.
After several months of operation 3 things became apparent.
1.) Customers appreciated the new washers and told us so,
2.) Customers did not notice any difference in wash quality (a big concern we had), and
3.) The new washers saved us 25% of our water and sewer bill providing almost $1000 a month in savings. This was $1000 a month that could go to pay our monthly equipment note payment. This was like getting an additional 40% discount above and beyond our best equipment price. This was a Huge savings.
In hind-sight, we purchased new laundry equipment and received a 3 year parts warranty and (back then) a 5 year warranty on bearings and seals. We showed our Laundromat customers that we were investing in the future of their Laundromat. Finally we were saving (in real dollars) almost $1000 a month or close to $12,000 a year.
This a win-win situation. We purchased new machines and reduced our utility costs. Call us at HK and set us show you how much money we can save you in utility costs. Remember a dollar saved is a dollar extra in profit.
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