You may wonder how to calculate the financial loss of a power outage? It certainly helps to understand the financial risk that not having a power protection system incurs. Economic and/or safety risks are involved – how critical are the protected applications and what is the cost of down time per hour lost?
REMEMBER – It usually takes up to 4 hours to recover from a one hour power loss.
The calculation is simple, worked out on an hourly basis:
Cost of average employee per hour x the number of employees = LOSS
Cost of lost distribution if trucks cannot be loaded x number of trucks = LOSS
Cost of lost telephone orders x average number of received orders per hour = LOSS
Cost of loss of RF system not allowing picking of goods in warehouse x per hour = LOSS
Cost of loss of company status due to inability to function for x number of hours = LOSS
Cost in inability to prepare next day’s distribution / orders = LOSS
Loss of corporate website per hour = LOSS
Loss off corporate e-commerce site per hour = LOSS
Loss of service department’s ability to communicate to customers per hour = LOSS
Loss of cutting edge to your competition that are still functioning = LOSS
Loss of corporate company image / efficiency and operational status = LOSS
Total effect on your company and cost per hour = LOSS
Finally, the crunch question: which customers / clients will not renew their contracts next year because of your inability to function during the power outage?
The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.