The Life Cycle of a Uniform Rental Program

The Life Cycle of a Uniform Rental Program 

How it really works

The life cycle of a rental program. Whether you are a CEO, CFO, Business Owner, Buyer, Procurement Specialist, whatever your title is in some way you have dealt with the life cycle of your uniform rental or facility services rental program.

Call it what you want, competitive analysis, request for proposal, bids! It all circles right back to this.

Why?

One reason only, you do not see value in the services you are receiving for the cost that is being billed for. So, either you seek out a new vendor, which is what every uniform sales rep is hoping for, or you negotiate with the existing vendor. Either way who ends up having to deal with all of it? You!

Let’s walk through this! I am going to use the example of being a $100.00 a week rental account. That’s an all in weekly for uniforms, mats, towels, and other facility services.

At the start, the sale was made, and a sales rep that you will never see again is moving on down the road happy to cash their commission check and if they did their job you over bought.

Year 1- Anniversary day! Here comes that rate increase. “What” Yeah, anywhere between 8-12% each year. Now your $5,200.00 rental spend is $5,824.00 or $112.00 a week for year two.

Year 2- Here we are again, another year another rate increase. Your $5,824.00 annual rental spend becomes $6,522.88 you are now $1,300+ a year more than you were when you started. But wait there is more!

Year 3- Four months in and you are being notified that due to rising cost in the industry a need for a rate increase must be imposed. Time to tack on another rate increase. 17 weeks into the third year you go from a projected spend of $6,522.88 annually or $125.44 a week to now $140.49 making your rental spend for year three $7,049.63

Year 4- Happy Anniversary! Can’t believe four years have come and gone already. To celebrate here is your annual rate increase. You go from spending $7,049.63 to $7,895.59 or $151.84 a week for the same rental, the same mats, the same towels you started with at $100.00 a week. A 51.8% increase from when you started. Now, here is where it gets interesting, you start welcoming competitors in your door, you start talking about these costs with your current service representative. You are either negotiating or you are listening to a (sales rep) just like you spoke to in the beginning just from another company. All promising great value, great savings, great service.

Year 5- Decision time. 1. you can do nothing and watch the cost soar. 2. Renegotiate and may or may not get a price increase in the coming year. 3. Start all over with a whole new vendor and deal with all the headaches that come with it or stay with the current vendor and you may get a slight cost break for another 5-year commitment.

All of this is just rental rate and has nothing to do with setup fees, lost fees, damage fees, oversize fees, replacement fees, and more.

I have a question for you, why are you putting yourself through this? You have a business to run, right? You got money that needs to be made? Employees, Bills, a family to take care of?

Have The Uniform Broker take care of this for you! Imagine the relief you would have knowing you have an expert in your corner that can go to work on your behalf securing functional, economical, and accurate rental programs?

I do not work for any uniform company, I am not associated or affiliated with any of them. I work for you by applying over eighteen years of industry knowledge and experience.

Don’t entrust your business, your image, your money to those whose only job is to make themselves more money!

Learn more about what the uniform broker can do for you and your business and start saving money today! www.theuniformbroker.com

Check out this video https://youtu.be/nTcDd9Lb0wo