Are You Using Too Much Gas?

[Adamski]

Guys,

I think it might be interesting to compare Total Gross Sales per CCF of natural gas consumed. To calculate this simply take the most recent month's Total Sales and divide that dollar amount by the Total CCF used on your most recent natural gas bill. The result is your Dollars of Sales per CCF bought.

Comparing your result with other operators could be an indication of a highly efficient facility ... or not.

I wanted to set up a survey for this thread but I cannot find the survey setup Wizzard. Sorry. Anyway, my place figures out to $16.32 in sales for every CCF of natural gas bought.

[KJ]

I only checked September & October

$ 13.50

[Howard]

Your ratio of self-service to WDF will have a huge impact on this number.

[Adamski]

Your ratio of self-service to WDF will have a huge impact on this number.

Howard,

Of course a laundromat doing a lot of Drop Off Laundry would have a higher number as would a laundromat with a generally higher vend price structure. I would expect that laundromats located in warmer climates would also trend higher since they're not heating their buildings.

[Howard]

Exactly my point Larry, your question as presented will likely not yield usable information. The only way to do this to make any sense is to take dollars out of the equation. If you compared quantity of gas used per total weight equalized washer turns or 30# equivalent dryer turns then you might be on to something. When you introduce dollars there are too many variables to yield useful information.

[BBG_LLC]

I would also think that it depends on what you use heat for (e.g. - hot water, dryers, facility heat, etc...).

Ben

Sorry, was writing this while Howard and Adam were having their discussion and don't know howto delete it from the post...

[Adamski]

Howard,

Yes, I could get real mathmatical with some specific equation that accounts for all variables but then no one would take the time to go through the exercise and come up with an answer. This way, at least, one can compare their number with that of other operators in their type climate.

[CanCanCase]

$26.374 for 3Q 2011

-Case

[MrMachine]

Exactly my point Larry, your question as presented will likely not yield usable information. The only way to do this to make any sense is to take dollars out of the equation. If you compared quantity of gas used per total weight equalized washer turns or 30# equivalent dryer turns then you might be on to something. When you introduce dollars there are too many variables to yield useful information.

Don't you also have to figure by therms instead of CCF, since therms can vary amoung utilities?

[Adamski]

Don't you also have to figure by therms instead of CCF, since therms can vary amoung utilities?

Paul,

I think a hundred cubic feet is a hundred cubic feet wherever you go. Gas is wholesaled in MCF which is 1,000 cubic feet. A therm is a measure of gas' ability to create heat. Meters do not measure therms.

[Adamski]

$26.374 for 3Q 2011

Case,

Your answer reflects your much higher vend prices where you operate. Good for you.

[Howard]

While there is something to be said for simplicity, there is also something said for accuracy. Larry, you don't do wash and fold, I did roughly one-third of my dollar volume as wash and fold. Your vend prices are low, compared to my area. Bottom line we could do it your way, but the numbers would have almost no value.

If done based on actual machine cycles then you take away the issue of vend prices and whether wash and fold is done or not. To be really acccurate you should install hour meters on your water heater(s) and space heater(s) as Duane, Dave, me, and others have done. Once you do that you can subtract out non-dryer gas usage and really get a handle on what is going on. That is a VERY useful exercise.

[CanCanCase]

Case,

Your answer reflects your much higher vend prices where you operate. Good for you.
Larry-

My smaller machines are actually priced lower than many of the reports I read here (and on that other board.) Since the majority of turns are on doubles, triples and 40/50's, there might be some other cause for a higher gross revenue to gas volume ratio....

What if a larger percentage of my gross comes from non-gas usage? If I offered a cold water discount, and/or customers here were more "Eco-conscious" and only washed in cold (and then, to take the example to an extreme, dried hanging on a line to save money or gas) wouldn't that have the same effect? Heck, since we're talking gross revenue, my vending sales spiked last quarter, and they involve zero gas whatsoever.

- Case

[Super Clean]

$22.23 not taking into account WDF sales. We do a quarter more in sales of WDF in relation to self serve. Heat was not on in the store at this time. I noticed a large drop in my Gas usage when we put in the New Electrolux Washers and Dryers. I think some of that goes to the fact the dryers have Residual Moisture Control bringing the dryers down to a Low Temp setting after the clothes are dry but they still have 20 minutes left. Also, the QuickWash is used more then any other wash, this being a warm cycle however still helps, ppl start the washer not realizing they need to turn the dial and they don't get to choose the hot wash lol.

[LaundrySOAS]

While there is something to be said for simplicity, there is also something said for accuracy. Larry, you don't do wash and fold, I did roughly one-third of my dollar volume as wash and fold. Your vend prices are low, compared to my area. Bottom line we could do it your way, but the numbers would have almost no value.

If done based on actual machine cycles then you take away the issue of vend prices and whether wash and fold is done or not. To be really acccurate you should install hour meters on your water heater(s) and space heater(s) as Duane, Dave, me, and others have done. Once you do that you can subtract out non-dryer gas usage and really get a handle on what is going on. That is a VERY useful exercise.

Howard:

Excuse my ignorance, but what is an hour meter?

Brian

[Howard]

Howard:

Excuse my ignorance, but what is an hour meter?

Brian


Good question if you don't know the answer, no apology needed. Very simply it is a meter that you can install across the wires that controls your gas valve to your hot water heater or any other device. It will record the time that the valve is energized. You can then take that reading and multiply it by the BTU input/hr to the device to see how much gas it consumed. If you do this for your hotwater heater and your space heating equipment then by difference you know how much gas goes to your dryer. Only issue is if you have a newer heater that has a modulating gas valve then this will not be 100% accurate.

[STOUT]

Are you taking into account all sales like; vending, arcade, rentals?
I supply all the heated water to my 2 tennents. How should ishow that into the formula?

[Adamski]

Are you taking into account all sales like; vending, arcade, rentals?
I supply all the heated water to my 2 tennents. How should ishow that into the formula?

Deward,

The formula merely provides a rough idea of how much revenue is generated from each CCF of natural gas. Certain unique situations, like providing hot water to your tennants, will skew the results.

My original intent was that all Sales income and all CCFs of gas consumption would be used in the calculation. However, many here feel that this calculation is not useful.

[rbh]

Mine comes out to right at $14 for each of the months I checked....and I don't consider my vend prices to be 'cheap'......$2.50 for tops, $3.75 for doubles, $5.25 for 40's and $6.50 for 60's. I can't imagine charging what it would take to get up in the neighborhood Case calculated he is at!

One interesting thing to note about this calculation, stores with 'express' equipment will/should come in at a higher figure.....as less is spent on dryers, so less gas usage as a % of total. Of course, that's not necessarily a good thing as dryers priced right should be a nice money maker, but just one more variable in the equation.