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?
