When we’re sitting down talking to a new customer about our fees, we sometimes find that they’ve had what we’d consider to be unfair contract terms with their previous laundry operator. Of course, there’s going to be some fees for the various services offered, and some are healthy normal fees, and there are some that aren’t. Here’s a summary of some of the contract terms we see, and whether we find them to be fair:
The commission share we offer depends on many factors, including the size and service needed at your facility, and we’re very open with you about your options when offering our quotes. Each property is different, and this is usually one of the areas in the contract that could be negotiated.
There is a bank fee for processing each debit and credit card transaction. Splitting these processing fees is a fair and common practice.
Sometimes laundry vendors will include a reasonable connectivity fee in their contracts, which allows for payment systems to connect to processing service. This should be a pass through fee from a cellular data carrier or other internet provider.
We find these so-called technology fees to be excessive and unnecessary. These are often used to justify new equipment, which they should be updating regularly as a part of their normal business operations.
Larger laundry corporations recently have instilled new ‘administrative fees’ in the middle of a contract, which we here at Coin Meter believe is unethical. Once that contract is signed, it should stand for the duration of the contract, period.
There’s often an Auto Renewal clause in contracts, which means that the terms are automatically renewed at the end of the specific time period of the contract, with an option to cancel within a window. At Coin Meter, we usually include an auto renewal equal to the original term of the agreement. This automatic renewal is usually advantageous, because rates stay level and you continue to get taken care of with good service!!
First right of refusal
This clause gives you the first right to refuse a new contract after the first contract ends. It sounds good, because it gives you the chance to continue to work with them ‘first,’ but really it shouldn’t be included in a laundry contract because it’s not needed. It’s more of a way of creating a sense of scarcity to add pressure to renew, while also giving room for a change in contract terms.
If you have any questions on your contract terms, we are happy to sit down with you and go over it together – whether it’s our contract or someone else’s! We’re located right here in the northwest, and we easily come by and help you understand what you could be agreeing to. As always, our representatives at Coin Meter can also meet to discuss payment systems, service calls, and resident concerns. Contact us today! Email or Call 503.452.4111.