Tips for Calculating Laundry Budget Hotel Costs

iStock-644365816-280201-edited.jpgCalculating laundry budget hotel costs can be tricky business. If you aren’t already separating out all laundry-related expenses in your budgeting, there’s a good chance you’re underestimating the true cost and throwing off your forecasting.

For OPL hotels, or properties with on property laundry, there are direct, indirect or “hidden” costs to consider that add up over time.

With the tricky nature of the costs and expenses in mind, here are some tips for calculating laundry budget hotel costs.

Direct Costs

The easiest step in determining laundry budget hotel costs is to identify and list direct laundry costs. These include:

  • Labor, including FTEs, annual hours per FTE and hourly average labor cost
  • Chemical supplies, including chemicals related to laundry and water treatment
  • Utilities, including gas, electricity, water and sewer
  • Maintenance and repairs on commercial laundry equipment
  • Miscellaneous general supplies, including carts, gloves for laundry room staff and other materials

Indirect Costs

You may look at that list and think that you’re done calculating the total cost of hotel laundry service, but you’re missing a whole group of indirect expenses. These are considered “hidden” because properties overlook them so frequently.

Indirect laundry costs include administrative and payroll costs, such as pay to management, taxes, garbage and consulting fees.

There’s also the depreciation of your equipment and laundry room to consider. The value of your machines and the space that holds them is declining every year unless you’re making major upgrades.

Total Costs

Once you’ve got a more complete look at your expenses, you’re ready to accurately calculate laundry budget hotel costs for this year and beyond.

If you’re finding the whole exercise difficult, keep in mind that one of the benefits of outsourcing hotel laundry is streamlining your expenses.

By leaving your laundry to the professionals, you’re eliminating your own costs for utilities, chemicals and depreciation and simplifying your calculations.