What is the Financial Loss of a Power Outage?

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?

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