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Commercial linen and laundry, who pays for it?

moneyIf you haven’t used a commercial linen and laundry service for your business before, you are probably thinking, “How can I afford it?  I can’t add more costs to my business, even if it does save me time.”

The solution to this is pretty simple.  You need someone else to pay for it.  And those “someones” are your customers.  As an example:  When you take your car to the repair shop, you pay for the service completed.  Likely, you also pay a small shop fee, usually 5-8% of your total bill.  You probably have never noticed or questioned it.  Your car repair shop needs to charge this in order to cover all of their expenses and still make a profit.

There are two ways to pass along your costs to your customers:

Option 1:  Add a small fee to every sale.  You can call it a linen and supplies fee.  We recommend that it is about the same percentage as a car repair shop:  about 5% of your sale.  Your Point of Sale software should have a function to include this.

You can place a small sign at your counter, letting your customers know that this will be added to each transaction to cover your costs.  Your customers will understand!  And, now you have a way to pay for your linen service without reducing your profit.

Option 2:  Raise your prices!  Many business owners get nervous about adding fees to their prices.  This is understandable!  The alternative is extremely easy.  Raise your prices by the amount of the service fee.  If you are a massage therapist, add a couple of dollars to the price you charge for a massage.  If you are a barber or hair stylist, same thing.  You are providing an excellent service that your customers want, and they are gladly willing to pay you for it.  But to maintain an acceptable profit margin, you need to charge your customers for your costs, and this includes the linens, towels, sheets, and cleaning rags that you use in order to serve your customers.

In summary, you must remember that your customers are the ones who are able to pay for every part of your business, from your rent, to your salary…to the laundry that you generate.

Contact us for more information about our commercial laundry and linen service.  We offer pick-up and delivery in Overland Park and surrounding communities.

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Wonderland, AK 45202
(513) 555-7856