What Every Buyer Needs Know Before Signing a Uniform Rental Agreement

Unit Rates

A unit rate is a pricing term, referring to the cost per garment.  A wearer is typically outfitted with 11 garments.  5 in the locker, 5 being laundered, and 1 being worn.  A unit rate of $.30, for example, would be multiplied by 11 to get the total cost for a wearer each week.

• It’s important to know what a unit rate includes and doesn’t include.  For example, if you have to pay additional fees for a wearer change, loss, damage, locker fee, etc., that unit rate can quickly escalate and become unpredictable.

Loss & Damage

Loss fees are fees charged for uniforms that disappear from the inventory after a certain period of time (oftentimes taken home by a wearer).  Damage fees are fees charge for garments that are turned in with a rip, tear, or other damage to the garment.

• Some uniform companies use loss and damage as a means of offsetting low unit rates. Don’t agree to a low garment unit rate without understanding exactly how loss and damage fees will be assessed.
• As employees lose, destroy, or change sizes, garments are sometimes pulled from a used inventory. If that used garment suffers the same fate, a charge for replacement may be assessed. Don’t accept being charged full replacement value for a garment if it was never new in the first place. It’s like paying a new car price for a used vehicle; it doesn’t make sense for the customer.
• Don’t get assessed for damaged garments that aren’t actually damaged. Ask to verify and visually inspect any damaged garments before a fee is assessed.

Upgrades

Over time, every garment experiences wear and tear and needs to be upgraded to a new garment – this is one of the benefits of choosing a uniform rental program!  Make sure you understand how often your uniforms are eligible for upgrades and what types of “wear and tear” qualify for an upgrade.

• Be wary of an extremely low unit price negotiated with a vendor. The price concession may be offset by fewer garment upgrades and replacements.  For example, a garment that is supposed to be proactively upgraded will stay in rotation for 4 to 5 years. This is long past its useful life, resulting in a poor image for your organization.

Adding a Wearer

Uniform rental programs are extremely beneficial in areas of high turnover, allowing you to easily add and remove wearers from the program.  Get a quote in writing on what the cost will be for adding a wearer to the program – prep fees, emblem fees, etc.

• A uniform company will generally waive the cost to add and set-up a wearer in the garment program at the beginning. However, any garment wearers added after the initial install can come with a hefty price tag.

General Costs

• Clarify the vendor’s policy on fee changes and get it in writing. If there is no limit on fee or unit rate changes, you could be subject to a price increase in as little as thirty days after signing the service agreement. This includes the ancillary rate charges.
• Inspect a sample invoice and make sure it is formatted so that charges and fees can be easily audited. For example, damage and loss charges are easier to audit if they are listed in one location instead of by wearer.