This has been an ongoing industry question for many decades.

Years ago, laundries would just sign a buyout agreement, and the customer would be responsible if that product was purchased and the customer decided to breach the contract. Sometimes this is a standard industry product, but maybe that laundry does not purchase that product exactly. Sometimes it is a totally different product that the laundry has no need for in the future, and no other customers will ever choose to rent if that customer quits.

One example would be an Italian-made special napery for the tables at a restaurant that could be using their standard poly spun napery instead. But the owner of the restaurant saw a tablecloth he really wants and insists on only that napery. Years ago, a 100% cotton round tablecloth used to be a standard stock tablecloth, but now it is a special item, especially if it has a specific print like red checks. 

Another example would be a special scrub fabric for the female nurses when the laundry usually only carries plain ceil blue or navy scrubs. But the nurses do not like the cut and fit of the laundry’s product, so they choose a special fabric and manufacturer for their new scrub program.

In certain cases like these, the laundry must protect itself so it does not get stuck with product that no other customer will want to use in the future. So, a buyout agreement is used in case the customer changes their mind later, or the product becomes unavailable later and it becomes a liability for the laundry both financially and in terms of getting the product.

Most customers do not want a buyout agreement since these days it is easier for them to purchase the product and then have it COG-washed (customer-owned goods) instead.

This does not happen with terry items or towels, which is our specialty. For all of the product that we sell, we have backup manufacturers for them, as well as an in-stock backup program. The only product I sell that might be considered a special product is a high-end towel made for very high-end lodging users. These towels are much heavier than the industry standard. Most special items are in garments and occasionally in napery product. 

Over the years, laundry items have become more standard stock, even if at some point they were not considered standard stock products. Microfiber towels are a good example. I can remember when no laundry wanted to stock and clean microfiber towels, but now almost all laundries use microfiber towels as well as microfiber mops. 

Another example would be a special mat made solely for a particular customer with its logo on it. For example, a tribal casino would want its tribal logo versus a standard black or brown carpet mat. A buyout agreement would need to be signed on the mats as well. 

An alternative to special buyout agreements is a COG program where the customer purchases the special product themselves, either from the manufacturer directly or from the laundry, and then the laundry charges the customer for only the wash portion of the rental agreement versus as a rental item. The laundry would only have an agreement for washing that product versus leasing or renting it. This has become more popular over the years, and there are many large laundries that only do COG wash these days, especially in the hospital and hotel markets.

Items that can always be used by another customer, even if the cam is a bit different, are in the hotel market. These would be high-end bath and hand towels and washcloths. There will always be another customer, hotel-wise, that would take that particular cam, as the manufacturers of the terry towels only make eight to 10 different kinds of cams within the industry. There is always a laundry that will be happy to special-wash the product for them as a COG-washed product. Plus, many of the hotels are always happy to take a different dobby or cam if they have to, as long as they get a similar towel at a better price. 

The COG part of the textile rental industry is a very large, growing industry that specializes in washing customer-owned goods. In fact, many laundries that were once only rental laundries with few COG customers have gone to only COG now and into the future, as they feel it is a better solution in terms of liability as well as upfront costs of goods. 

As our industry continues to be bought up and the market continues to shrink in terms of available rental laundries, I feel the COG market will continue to expand and grow as a viable solution to make the customer happy with the product they choose, as well as the laundry. 

These days, the laundry really does not need to push back on any product unless it believes it will fall apart during an extensive wash cycle and test. It can just offer its services as customer-owned services instead, and everyone is happy — both the end user as well as the laundry, whether it is a smaller laundry or a large multi-plant operation. 

Customer-owned or COG laundries are the new trend, and a number of COG-only laundry plants are being built, with more on the horizon. They can wash for the military, prisons, hospitals, hotels, and whatever market wants their garments and towels to be hygienically clean.

From a healthcare perspective, the pressure to use textile items that enhance the patient/resident experience will not only continue but will be more important than ever before. 

The push to make the hospital and senior-living experience less institutional, along with an urge to increase patient dignity, has created an environment where new products are being introduced on a regular basis. While these products may complete their mission to increase patient satisfaction, they are not necessarily as efficient to process as their predecessors. 

The healthcare market sees this progression in many items, but particularly bedspreads, clothing protectors, and patient apparel. If you have ever been in the hospital and spent any time in a low-priced, straight-backed patient gown, you thoroughly understand the dignity issues.

I feel the key to working through the inefficiencies of potential new products is communication.

By communication, I mean being intimately involved with the customer, so you are at the table when these product decisions are being evaluated, not joining the party after the decision has been made. This means staying tuned into staff on the front lines, understanding the needs that are driving the search for new products, and finding a way to get on committees that make these decisions.  

Once involved in the process, you will be able to influence the design and construction of the new item. You will be able to see item specs that will prohibit the item from being efficiently processed and allow you to influence product modifications that will solve those processing issues.  

Additionally, involve your linen suppliers in this process. They may be able to provide valuable insight into making these new products more efficient in several ways, including production and processing.  

While you are involving yourself in your customers’ decision-making process, it would also be a good idea to involve your customer in your process. When they understand how important processing efficiencies are and how crucial they are in keeping costs as low as possible, they will be much more understanding and willing to listen to your thoughts regarding product construction.  

Read the conclusion tomorrow with insights from linen and chemicals supply experts.