The telltale signs letting you know it’s time to replace your commercial laundry equipment are obvious. Parts are being replaced more frequently. The exterior of the machine is starting to look worn out.
But you want to try to get another year or two out of the machine, so you keep making repairs and try to ignore its appearance. You are about to go past the point of diminishing returns.
It’s not a trip you want to make.
By trying to wait before re-investing in new equipment, you are probably hurting your bottom line. You may get a few more quarters tossed into the machine, but that could be significantly outweighed by the dollars lost from the cost of parts, repairs and an increased energy bill.
Depending on the type of equipment, usage and level of maintenance, commercial laundry equipment generally lasts around 10 years. Here are four questions to ask before trying to extend the life from an older piece of equipment.
1. How does upgrading save me energy?
New equipment performs better and is built to be more energy efficient. The savings can be considerable.
- In one case study, a laundromat that upgraded to new Huebsch equipment saved 86,000 gallons of water per month, which equates in a savings of $715 in its monthly water bill (HUEBSCH).
- By upgrading dryers, a business can save 25-35% in gas consumption, while improving performance at the same time (HUEBSCH).
2. How does upgrading effect my customers?
In a survey conducted by the Coin laundry Association, customers ranked their three top priorities as security, cleanliness and having enough availability.
- New equipment can create a destination with accessible wifi, clean floors, fresh paint and peak performance machinery that customers will spread the word about.
- 64% of customers prefer large-capacity machines, which allow for faster turnaround times and higher turnover rates so customers don’t have to wait and the machines are more profitable.
3. How can upgrading aid my maintenance costs?
Upgrading equipment has short- and long-term effects on your maintenance budget.
- Immediate savings on repair and parts.
- Stronger frames and leak detection reduce costly preventative maintenance and repairs.
4. What’s the ROI?
At the end of the day, any decision you make that affects your business should consider the bottom line.
- When you make a new capital investment, you can write off that investment through several government-offered incentives, such as the IRS Section 179 and bonus depreciation.
- The implementation of new equipment into a business also makes the value of the entire business increase immediately.
- In having the most relevant equipment in the industry there is less risk in losing customers to competitors (HUEBSCH)
- Money Savings – a business with new equipment will save money on utilities, earn money with faster cycle times and increase revenue through appeal and performance. (HUEBSCH)
- Interest rates have been low, but that may soon change dramatically. Locking in a fixed rate now could translate into significant savings long-term.