A hotel-linen laundry’s profit depends on the difference between service revenue and the full cost of processing, delivery and capital. Simple calculations based only on wash price and electricity can be misleading.
Build revenue from actual item counts or linen weight, contracted prices, expected occupancy and operating days. Include separate pricing for urgent orders, stain treatment, rental linen or repairs only when customers have agreed to pay for them.
Include labor, water, electricity, steam or gas, chemicals, packaging, transport, rent, wastewater treatment, maintenance, insurance and administration. Also account for rewash, damaged linen and bad debt.
Equipment depreciation, financing and facility modifications affect the true return. Automation can reduce labor per kilogram, but only when volume is sufficient to use the capacity.
Model expected, conservative and stress cases for utilization, pricing and costs. A diverse customer base and disciplined receivables management are as important as production efficiency.
Note: Local data and professional financial advice are required before investment.