Simplify Budgeting for System Care
Life safety system expenses don’t end after the installation is completed. Periodic maintenance for a system may often times cost more that the system itself. Tests and maintenance can be easily planned, but emergencies and part failures can put unexpected strain on your budget. How can you accommodate unplanned upkeep? Putting budget money aside is a way to guard yourself, but what if the situation is much more serious than you anticipated?
A Real World Example
Recently, in a facility, the mother board burnt out three times from April to July. The particular motherboard costs a median amount of $800. The system is down, resulting in overnight shipping costs of $200 to keep operations moving according to plan. To diagnose the problem, the service company sends out a technician costing $50 per trip and $100 per hour with a 2 hour minimum in labor. Once the panel arrives, the tech returns to the location again, adding another $50 and $200 for the second trip. Since this happened 3 times in one year, multiply the total by three.
The Cost Breakdown:
Mother board $800
Shipping Cost $200
Trip 1 Charge $50
Trip 1 Labor $200
Trip 2 Charge $50
Trip 2 Labor $200
Total for 3 Repairs $4500
In a three month period, the company had to pay $4500 for unexpected low voltage repairs. That’s $4500 out of their budget.
How can You Save Your Budget?
Thankfully, the systems industry is moving towards offering better options for customers by offering plans that allow you to pay for any repairs your system upfront.
If the facility in the previous example had a service agreement with their service provider, they might have paid $3000 upfront to cover any electronic repairs over a 5 year period. That would mean, in a three month period, that facility saved $1500. Note that these savings do not include any other repairs that occur either previously, or after those 3 months.
Why are Service Agreements a Smart Choice?
1. Most service agreements include exclusive discounts, saving you money over time.
2. Your equipment will continue to run efficiently.
3. Your service provider will remind you when your systems are due for maintenance.
4. Possible issues or inefficiencies will be caught before an emergency repair is needed.
5. Your service provider will already know your equipment, which can facilitate a fast remedy.
6. If you need a system part replacement, you’ll save on the cost of the part.
7. Your equipment has a better chance of running more efficiently for the rest of its expected life.
8. You will eliminate unexpected service bills and have a better chance of staying on budget.
9. You have the guarantee of priority placement in the service queue.
Service agreements can be customized, and most facilities will benefit from having them. Budgeting for your systems doesn’t need to be difficult. To find out more information or to ask a question, click here or call us at 937-859-6198.
Posted on: July 31, 2015