Most LA business owners underestimate the true cost of handling laundry in-house. Here's what you're actually spending:
Direct Labor Costs
- Laundry staff wages: $18-22/hour in LA
- Payroll taxes and workers' comp (hotels pay some of CA's highest rates)
- Employee benefits required under California law
- Training and supervision time
- Coverage for sick days and vacations
Reality check: That "$18/hour" laundry attendant actually costs you $25-30/hour when you factor in California's mandatory expenses.
Utilities - California's Premium Rates
- Water: LA's water rates run 30% higher than the national average. Commercial laundry uses 30-50 gallons per load.
- Gas/Electric: Dryers run constantly during peak hours, driving up energy bills
- Sewer charges: Often overlooked but based on water usage
- Rate increases: California utility costs keep climbing, especially during drought conditions
Typical monthly utility costs for commercial laundry: $800-$2,000+ depending on volume
Supplies & Detergents
- Commercial-grade detergents and fabric softeners
- Bleach and stain removers
- Dryer sheets and finishing products
- Replacement linens (towels, sheets wear out faster with frequent washing)
Monthly supply costs: $300-800 for most businesses
Equipment Maintenance & Repairs
- Routine maintenance: Filters, belts, hoses, lint traps
- Emergency repairs: Machines always break at the worst possible time
- Plumbing issues: Drain clogs, pipe leaks, water damage
- HVAC strain: Laundry rooms generate heat and humidity
- Service contracts: If you're smart enough to have one
Annual maintenance budget: $3,000-7,000 minimum, plus emergency repair costs that always seem to hit during your busiest week
Equipment Investment & Depreciation
- Initial purchase: $25,000-$75,000 for commercial-grade washers and dryers
- Installation costs: Plumbing, electrical, venting modifications
- Equipment lifespan: 7-10 years with heavy commercial use
- Replacement cycle: You're constantly budgeting for the next equipment upgrade
Real Estate Costs - Your Most Expensive Hidden Cost
That 300-500 square foot laundry room isn't free:
- Commercial rent: $3-5 per square foot monthly in LA
- Lost revenue opportunity: Space that could be generating income (hotel rooms, treatment rooms, dining space)
- Climate control: Heating and cooling a hot, humid laundry room
Monthly real estate cost: $900-$2,500 for space that only creates an operational expense
Time & Administrative Overhead
- Manager time dealing with equipment issues
- Scheduling and managing laundry staff
- Inventory tracking and linen replacement
- Vendor management for supplies and repairs
- Water damage or emergency situations
The hidden cost: Your management time that should be focused on revenue-generating activities and customer experience.
The Real Total
For a typical 50-room hotel doing in-house laundry:
- Labor: $75,000+/year
- Utilities: $12,000-18,000/year
- Supplies: $3,600-9,600/year
- Maintenance: $3,000-7,000/year
- Equipment depreciation: $3,500-7,500/year
- Real estate: $14,400-24,000/year
Total annual cost: $111,500-$141,100
Compare that to WonderWash professional service at $1.50-$2.50/lb.
Your savings: $31,500-$61,100 per year - and that's before factoring in the value of your time, elimination of equipment emergencies, and staff freed up to focus on guests.