With the current downturn in the economy, business’s throughout all different industries are looking for way’s to cut cost’s or streamline business expenditures. As a result of this the Electrical appliance testing industry for one felt the effects of this, as business’s thought there was an opportunity to decrease spending by investing money in a staff member and some equipment and they would be off and racing.  However the extra costs involved were not taken into account.

The other costs that are often forgotten include:

  • The consumables involved
  • The ongoing maintenance and calibration of the PAT, and
  • The Profit Loss incurred while staff are appliance testing

The final point regarding the Opportunity cost is an important one, as it is in most cases the greatest cost to a business. Opportunity Cost is the “cost” incurred in order to undergo a specific task. This can either be a direct monetary cost or an indirect monetary cost.

For example if a staff member’s time when working on a project is billed to a client. The opportunity cost of having this staff member Testing appliance’s is the hourly rate times the hours spent testing, that they could have invoiced to a client. The indirect monetary cost is less specific, as it takes into account the potential effects of delaying the roles of that particular staff member.

For example, although a staff member doesn’t invoice their time to a customer, if they are your sales liaison, your receptionist, invoicing officer or even your store-man, the effect of these employees focusing on Appliance testing and not on their key role could delay order’s, sales, invoices, deliveries and depending on the industry make or brake a client or effect the runnings of the business.

What is important with Testing is that it has your complete attention and focus because when it comes to safety a mistake could cost either your staff or your customer their life.

If you have any questions regarding the pro’s and con’s of DIY feel free to contact the team here at After Hours Test & Tag.

Best Regards

Jamie Sedgman

Operations Manager

  • Tradey Friendly – Why stop work to have your tools tested

    No Surcharge, No Frustration, Its just too Easy!
  • A Scheduled Reminder System.

    Our aim is safety, so if you like, we can send you an email/text message to let you know your tools are nearly due.