5 Deceptive Practices to Avoid
You have been given ridiculously low prices from a commercial laundry company. You may think this is too good to be true. That’s because it is. Hold off on signing the contract. Discover the true cost behind their low price.
There’s A Better Way
With Mid City Services, you have:
- No Contracts!
- No Inventory Billing and Loss Charge Billing!
- No Automatic Price Increases!
The big national companies — Aramark, Cintas, AmeriPride, G&K Services, and Unifirst — have figured it out. You want a low unit price. Unfortunately, the vendor can’t make money on the price they quoted you, so what do they do?
They increase prices.
How do they do it?
The methods vary: sneaking in hidden charges, inventory billing, loss billing and sudden price increases are the main avenues.
The low price the commercial laundry company quoted you isn’t so low when you add all the charges up.
With national companies like Aramark, Cintas, AmeriPride, G & K, and Unifirst, you need to watch out for sophisticated billing structures designed to line their pockets at your expense. In addition to deceptively low prices, you will see many of the following unsavory billing practices:
1. Inventory Minimums
The big companies charge you on a percentage of your inventory regardless of the quantity they deliver. You may get 76 towels and be billed for your inventory of 250. Those 10 cent towels now costs 33 cents each.
2. Inventory Maintenance
The big laundry companies automatically bill you for lost merchandise each delivery. They usually bill from 1-3% of your inventory. This means that on an inventory of 400 towels, you might be billed for 12 towels. Those 12 towels are billed at a purchase price, not rental. 12 towels at $1.50 each = $18.00 of loss charges on just the towels.
3. Damage/Ruin Billing
Some of the national commercial laundry companies bill you for merchandise which they claim your people damaged — yet they don’t return the damaged merchandise. You have to take their word for it. And worse, the cost for replacement exceeds what they paid for it.
4. Price Increases
You may have signed on for one price. And even though the contract guarantees no more than a 5% increase, you’ll need to watch your invoices. It’s not uncommon to receive two to three increases per year. That amounts to 20-40% over the contracted price. Think about it. Why would they need a contract if their price is so good? Because they know you will try to leave when they jack up your rates!
5. Service Charges
At first, the monthly charges start out reasonable, usually $6 or a bit more. Then they start to go up and continue climbing.
Mid City Service charge rates have been the same for the past five years — $6.00 for invoices under $50.00 and $8.00 for invoices over $50.00. It’s simple when there’s one upfront price and no hidden fees!
Now that you know the facts, you can easily avoid some of the traps national laundry companies set for customers like you. Before signing anything, thoroughly review your contract. Surprise charges aren’t fun. Once you sign the contract, they won’t go away for a long time.