Top Ten Costs of an OPL

Some or all of these costs may be saved by outsourcing laundry services:

  • Laundry Production Payroll:
    Payroll costs for wages paid to hourly employees who handle linen, including laundry production, soiled sort, washroom, flatwork, ironing, tumble dry operation, etc.
  • Management Payroll:
    Employees who handle linen inspection; linen control; janitorial services; machinery repairs and maintenance; and internal linen distribution.
  • Employee Benefits:
    Includes payment of social security, workers compensation, holidays, one-or-two week vacations, state unemployment (varies), health insurance (varies), union contributions, etc.
  • Laundry Chemicals:
    All detergents, alkalis, bleach, sour, fabric softener, bacteriostatic agents, starch, etc.
  • Maintenance, Repair, and Parts Costs:
    Includes all machine repair parts, lubricants, drive belts, iron pads and covers, tools, boiler treatment and water softener salt.
  • Utilities:
    Gas, electricity, fuel oil and water account for a large part of expenses.
  • Taxes, Licenses & Permits:
    Taxes, licenses and operating permits paid by the facility and allocated to laundry operations.
  • Equipment Costs:
    Equipment experiences wear every time it is operated. Replacement costs must be considered.
  • Insurance / Other Business Expenses:
    Insurance, lease charges, safety expenses, uniforms, training, and other expenses allocated to the OPL.
  • Lost Opportunity Costs:
    The space occupied by the laundering equipment could be used to house a revenue-producing facility such as a physical therapy or day care center (adult or child). An existing program or department within the facility also could expand into the available space, such as a new MRI Center, resulting in an increase in revenues from that department. The space could even be leased out to groups of physicians as office space.