Utilitiy Rebates Should Be One Consideration When Buying Washers

In an effort to encourage lower utility costs in laundries, many utilities are offering bonuses to laundry owners who buy approved energy efficient washers and dryers. Anyone who is thinking about new laundry washers or dryers would be wise to inquire if such programs are in effect in their area and to ask how these special programs work. Bonuses, or refunds range from $75 to $400, or more, per washer. Of course it all depends on which utility and what type of washer. As an illustration, one laundry owner in southern California wanted to replace 10 older top loads with some new front load washers. If he were to have purchased top loading washers, at that time the delivered and installed price for ten would run him from $6,800 to $8,500, depending on which brand. The price for new “double” washers he selected ran about $20,000. The utility rebate on the doubles was about $1,500. So, after rebate, and after installation, the new doubles were about $11,000 more than the top loads. Yet the laundry owner is able to charge 50¢ more per load. So, if the laundry was doing 4 turns per day, and things stayed the same, it would bring in an extra $730 per washer, times ten, each year of operation. That is $7,300 extra income on $11,000 additional investment. We know that these new washers reduce water and energy use by 20%, and save a nickel per load compared with top loaders. Over the course of a year, it amounts to $730+ savings in gas, electric, sewer and water. One can see that the additional cash investment will easily be paid back in fifteen months or less. So, from that point of view, it is an excellent buy. But, we’re not done yet. Manufacturers of front loading washers have maintained that the front loaders will out live any top load washer’s productive life. Some claim double and triple the life of a typical top load washer in everyday coin laundry use. For the sake of discussion, let’s give them the benefit of the doubt and say the washers will last at least twice as long. Could we then not take the top load washers price ($8,500 at ten years from now prices) and add that to the savings? The whole point of this discussion is that we need to consider each factor when we are looking to equipment in today’s economy. We need to know about all the utility benefits and special pricing available. We also need to learn all we can about the energy consumed by each type of washer we are considering for purchase. Our goal should not be just the lowest price we can find. Initial price is only one small factor in the buying decision. We should be striving to find the greatest long term financial bottom line benefit for our laundry businesses. Do it right the first time, and profit for many years. The energy you will be saving is just like money in the bank. The more energy saved should be more money banked, because as Ben Franklin was said to preach “a penny saved is a penny earned.