Selling Price Versus Cost of Ownership

By Alex Kane | Jun 11, 2010

OK, you’ve made up your mind that you need to buy some commercial laundry equipment, either as an initial purchase for a new coin laundry or as replacement for some older equipment. Now what? How do you determine which brand of equipment to buy and from what source?

You may start by comparing laundry equipment from all of the various manufacturers, comparing spec-to-spec to make sure that they match up. Once you’ve determined the comparable equipment from each manufacturer, you just compare the prices and make your decision, right?

I suggest there are many additional pieces to the puzzle aside from the selling price. When you purchase something that lasts 10 to 15 years, the process of buying that item changes from a simple purchase to an investment. When making an investment in something, you look at things a little differently. If the equipment isn’t reliable or has other operational costs that you didn’t anticipate, 10 to 15 years is a long time to deal with that problem and can end up costing you much more than you bargained for.

There is one thing to keep in mind, no matter what or where you choose. Don’t forget about the cost of ownership for the equipment.

There are many other products that you may be familiar with which have a low selling price but a high cost of ownership. There was a time in the recent past when the Hummer SUV vehicles were selling at very low comparative prices. The reason for this price drop was based mostly on the price of gas at that time. The Hummers used such a large amount of gasoline that the cost of ownership was prohibitively expensive.

Another example can be found in certain inkjet printers. These days, you can open the Sunday paper on any given week and find inkjet printers at a very low selling price. However, the ink cartridges, which are quickly used up by this machine, are very expensive. The cost of using this product on a daily basis, again, the cost of ownership, is very expensive.

Listed below are some very important factors that should be considered when choosing commercial laundry equipment:

Washer Efficiency

In recent years, great strides have been made in washer efficiency, mostly with the use of frontloading washers and inverter-driven (ramp-up) motors. What is the water usage of the washers? How much residual moisture is left in the clothes after spinning out? (High-speed spinout can effectively pre-dry the clothes.) How much electricity and torque is required when the motor rotates the basket?

Dryer Efficiency

There also have been advancements in dryer technology, which help dryers to be more efficient. Does one dryer have a lower BTU rating with the same dry results as equipment with higher BTU ratings? (The BTU measurement corresponds to the amount of gas that a dryer uses; lower BTU = less gas.) Does the dryer have insulating features that help to contain the heat within the dryer (increasing efficiency and keeping the laundry cooler and quieter)? Are there moisture sensors to help limit gas usage after the clothes have dried?

Labor and Parts Warranty

Most distributors provide a labor warranty and support the manufacturer’s parts warranty program. How long is the labor warranty? How long is the parts warranty? Which parts in the machine have limited warranty coverage and which are fully covered? Does the warranty cover the original owner only? Read the fine print here.

Distributor

As you initially invest in the equipment and throughout its life cycle, it is important that you have a reputable distributor to help you expertly install and support the equipment purchase. How long has the distributor been in business? How knowledgeable is the salesperson? What quality of service can be expected? Is there a fully stocked parts department and service technicians to support the product?

Durability of Equipment

Admittedly, the most difficult aspect to gauge is the “lasting power” of the machine after continued use, since most times you are buying the newest model. Do you have any experience with this brand of equipment? Can you speak to someone who already owns the brand that you are considering? Can you go to a showroom and put your hands on the machine in question, perhaps even taking off the covers to examine the inner workings?

There are many factors that you must consider when making an investment in laundry equipment. It is not a simple purchase, based on the selling price alone. Instead, it’s an equation that needs to be considered carefully in order to maximize the money that you’re spending, both now and 10 to 15 years down the road.

Doing your homework now can save you a lot of stress, time and money in the long run.