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The Savings are Huge When You Buy Your Own Uniforms

TIRED OF HIDDEN COSTS WITH LAUNDRY SERVICES? IT’S MUCH CHEAPER TO BUY THAN TO RENT, HERE’S WHY...

A standard-term contract for an industrial laundry uniform rental program is a five-year commitment.but if you’re unhappy with their service, it can be difficult and expensive to break the contract. The terms of a rental contract might specify the laundry is entitled to multiple percentage price increases during each year of the contract.

Unplanned added costs can have a dramatic impact on the total cost for renting uniforms. Most bids compare the financial impact of a uniform program using only unit pricing. However, as much as 20 to 40 percent of the annual costs for rental uniform programs come in the form of ancillary charges, which can cause agencies to exceed their uniform budgets year after year.

COST COMPARISONS

An estimated average flat-rate garment cost for renting five changes of standard 65/35 Poly Cotton uniform pants and shirts is about $6 per week per employee. This would be $312 per employee per year, per employee.

However, if you purchase these same five new pants and five new shirts, it would cost about $135. Cost savings would therefore be $177 per employee per year or 57 percent.

ADD-ONS

One common add-on cost of a rental program is for new employees. There is normally a prep or setup charge to add each new employee hired during the term of the contract. This is an added cost for the laundry to pull garments out of inventory and add a laundry tape to each garment. Five changes of pants and shirts require 11 sets to be used. An average setup charge is $1 per garment. Twenty-two garments at $1 each results in a $22 setup charge per employee. Purchasing uniforms often eliminates this added cost.

There may also be oversize charges, and you may be charged as much as 20 to 30 percent for sizes above XL.

A fee of $1 to $2 per garment may also be charged when an employee requests a change in size during the term of the contract. A rental contract ranges from three to five years, and almost all employees have at least one size change during that time span.

Another add-on charge may be for wastewater or special energy costs passed on to the agency. Also, most rental contracts state that their own pickup count is the proof of lost or damaged garments. The agency is not made aware of a loss of garment add-on charge until they are invoiced for the replacement garment, which are usually billed at full retail price.

Button replacement and other repairs are also billed at full retail price as an added charge. Depending upon the contract, it may cost as much as $3 to $5 to have a button sewn on.

UNDERWASH CHARGES

One of the highest expense costs when using a rental uniform contract is to pay for something called under-wash. Under-wash refers to the customer being charged fees for weekly rental and cleaning services that are not performed because employees did not turn in their uniforms to be cleaned. Many employees forget to bring their uniforms in or are sick or on vacation on pickup day. Many more employees prefer to wash their own uniforms at home for personal hygiene reasons. It is reported that the average number of employees within rental uniform programs who do not turn in their uniforms for cleaning ranges from 30 to 33 percent. This means that as much as a third of the cost of a uniform rental contract may be billed to customers with no return for that investment.

COST COMPARISON

Rental estimate per employee - annual cost for 5 pairs of pants and 5 shirts = $312.00 x 5 yrs = $1,560.00
and this without those expensive add-on charges that can raise the cost even higher!

Purchase estimate per employee – one time cost for 5 pairs of pants and 5 shirts = $135.00 x 5 yrs = $135.00

So, why are you renting, when you can buy so much cheaper? If your job function includes daily exposure to heavy soil, grease and oil, then you may need to rent. But if not, you are much better off buying your own uniforms

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