Cut Energy Costs, Boost Your Bottom Line
Here Are a Number of Options to Help Keep Today’s Utility Costs from Eating Away at Your Profits
Water rates in Escondido should increase, and should continue being tiered, to encourage conservation and maximize revenue, the City Council was told last night. City staff is also proposing substantial increases in what businesses are charged for sewer service.
San Diego Union-Tribune, June 7
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Independent oil and gas producer Devon Energy Corp. expects natural gas prices to remain high in the next couple of years as little new supply will reach the market, the company's president said.
Devon's John Richels said he expects natural gas prices to fluctuate between $6.50 and $9 per million British thermal units.
Reuters, June 7
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Electric rates are going up again and will cost the typical ratepayer an extra $5.38 per month, boosting the average bill to $56.35 a month.
The Electric Light Commission last night voted unanimously to raise rates in order to pay off an estimated $55 million remaining on an electric lawsuit and to continue building a "rate shock fund" to ease the blow when the town has to purchase wholesale power in 2009.
Daily News Transcript (Mass.), June 5
If you’re like most owners across the country, the chances are good you're looking for ways to save your self-service laundry business some money. One source of savings that should never be overlooked is the cost of utilities, such as electricity, natural gas and water.
There are some things laundry owners can do without. Unfortunately, utilities don't fall into that category. Though many factors can affect utility rates, such as international unrest or natural disasters that can cause prices to spike, the cost of your utility bills are not entirely out of your control. By being proactive and following a few steps, you can help ensure that you are paying as little as possible to keep your utilities running.
Where to Start
Because the energy costs and needs from one laundry to the next are certainly going to differ, there are no hard-and-fast rules for keeping your utilities expenses down. But here are a few areas you should look into:
Make sure your equipment is running efficiently. Whether you have a small laundromat with a few banks of toploaders or a 7,000-square-foot mega-store with every size washer and dryer imaginable, make sure that all of your equipment is running correctly. Even a small malfunction could cost you big in wasted energy bills. Of course, always stick to the recommended maintenance schedule for all of your machinery.
Investigate alternative energy sources. While it might not be feasible to convert your entire operation to solar energy, you might be able to keep heating costs down in the winter by simply installing more windows and leaving the blinds up.
Check current contracts. While you may have gotten the best rates possible when you initially signed your utility contracts, they may not be the best rates today. Rates change, and sometimes those rate changes may be more favorable to the customer. However, a utility company is unlikely to call to tell you that a different plan might save you some cash, so making a quick phone call to see if you have the best possible plan could save you money in the long run.
Scope out the competition. You're more likely to find a better deal if your laundry is in an area with competing utility providers. Call different companies to see who has the best rates. If your business has more than one location, you may have more leverage if a utility provider can win the business of each location. Don't be afraid to tell your current utility provider that you're shopping around for a better rate. That may give the utility company enough incentive to offer you a better deal. Also, find out if your local utilities company has any "green power" incentives for making the switch to more eco-friendly energy sources.
Avoid peak usage. Utility billing cycles are often broken up into peak and non-peak times. During peak times, energy is typically the most costly. By finding out from your utility provider what parts of the day are peak times, you may be able to decrease your energy consumption during those periods. For example, if you process your wash-dry-fold and/or commercial accounts on certain days a week or at a certain time of day, it may make sense to handle those jobs during non-peak hours, if you have the option.
Bid for energy. In some regions, utility companies bid for customers through reverse auctions. In such a scenario, multiple companies would submit a quote in order to win a company's business. These auctions can result in huge savings for a business. Energy brokers and utility consultants work to help customers get the lowest bids from competing utility providers.
Become energy efficient. Of course, one of the best ways to cut energy costs is to use energy more efficiently. Spend a little money now to enjoy great savings later. For example, timers and occupancy sensors can be used to cut off or decrease lighting when areas of your laundry are not being used. Likewise, lighting upgrades can enable the use of energy-efficient bulbs, and insulation can be used to keep heat or cool air from escaping from the building. Also, be proactive about fixing things that will raise your utility bills, such as leaks.
Buy fuel-efficient vehicles and keep them properly maintained. If your laundry business uses a fleet of company vehicles for pickups and deliveries, be sure that you buy fuel-efficient models. Read the different consumer reports. Test drive a hybrid and see what you think. Keeping cars well-maintained – checking and changing air filters, keeping tires properly inflated and so on – also will help you get the most mileage for your gas costs.
In addition, some nationwide companies offer options to lease cars for as many hours a week as you need them. The price of gas and insurance is included.
Be vigilant. If your attendants have access to company vehicles, be sure that you keep an eye on the mileage. If they're using the vehicles for out-of-the-way personal errands, ask them to make up the difference in gas costs. If you reimburse employees for gas costs in their own vehicles, look over their logs and make sure the mileage estimates are reasonable.
While the high cost of energy won't be going away any time soon, you don't have to feel helpless in the face of this problem. A little watchfulness can go a long way in finding the most cost-effective solutions for your energy needs.
Your utilities are services that your coin laundry cannot do without. But with some forethought and effort, you can make sure you're paying as little for them as possible.