All business owners look for ways to save money. In recent times companies have discovered the financial benefits of outsourcing, and remote working.
By reducing the number of full-time employees, businesses reap a number of financial benefits. And yet, these businesses also gain from a wider pool of talent, and happier workers.
Business owners need to innovate to stay ahead. Different tactics can be used such as vertical integration to cut costs and streamline operations. Alternatively, supplier contracts may be renegotiated.
One area that may not be considered financially beneficial is plumbing maintenance.
How does plumbing maintenance directly save businesses money?
Hiring a local professional for emergency work is unavoidable at times. Local means a prompt response usually too. Therefore, you may search for a plumber in Adelaide if you lived nearby and had a burst pipe to fix. Yet, plumbing maintenance can help to avoid burst pipes and other emergencies completely.
Avoiding the inconvenience of emergency plumbing means businesses can continue to operate, and this is just one way that regular maintenance saves money. Here are eight ways in which plumbing maintenance directly saves businesses money.
1 Mitigates loss of revenue
If your business suffers a serious plumbing failure of any kind, it can halt operations. Downtime costs money and halts production.
When a flood occurs or heating fails, your business may have to stop operations temporarily. This leads to a loss in revenue which could be avoided through preventative maintenance.
2 Loss of inventory
Burst pipes release a shocking amount of water surprisingly quickly. Soon after a pipe burst occurs, your storage area could resemble a swimming pool rather than a small warehouse. Floods cause loss of property due to water damage. This could mean you lose a significant amount of stock.
3 Loss of productivity
When business operations stop, productivity drops. Despite your best efforts to have a productive business, a plumbing failure can stop the production line.
4 The impact on customer retention
A serious flood could put your business on hold until the restoration has been completed. A business in the hospitality industry for instance would be hampered severely by plumbing problems.
For instance, your kitchen may be unable to function. Or your bathrooms may have to be closed off to customers. This could lead your regular customers to turn to your competitors. And it costs more to attract new customers than keep existing ones.
The general rule of thumb is that it costs 5 times more to gain new customers than to retain current ones.
5 Prevent major repairs
Sewer backups are unpleasant and will need thorough cleanups. But, a major burst pipe can cause serious damage. Preventative maintenance helps to spot corrosion and identify areas that need attention.
Replacing older pipework and fixing leaks will help to prevent major floods. The cost of water damage in a commercial establishment can be huge. Flooring and carpets may need to be replaced. And furnishings and decor will be hit too.
Insurance may help with water damage. But, if your business is found to be negligent where maintenance is concerned, your insurance provider may not pay out.
6 Improved energy efficiency
No doubt you often look for the best deals for your business. But, you can also save money on utility bills by being more energy efficient. Updating plumbing features and carrying out maintenance will lead to a more energy-efficient system.
Smart plumbing systems, insulation, and modern heating systems will all help to conserve energy. And water consumption and energy efficiency are closely linked.
7 Reduce water wastage and improve conservation
Energy is used to treat water and on delivery systems. Inefficient plumbing systems or leaks cause water wastage and increase utility bills.
The UK’s water network experiences huge problems with leakage every year. But, you can help your business by fixing local leaks promptly. Old fixtures such as toilets can be swapped out for modern dual-flush types.
Plumbing services include maintenance and also guidance on how to introduce water-efficient fixtures. Modern plumbers help businesses to improve energy efficiency, and thus, save money.
8 Improve the lifespan of fixtures
Regular inspections by a plumber and follow-up maintenance will improve the life of plumbing fixtures. Faucets, water heaters, and toilets will last longer due to preventative maintenance. Your business will save by not having to replace appliances and fixtures.
If even small leaks are allowed to continue, pipes will become corroded. Moisture causes mildew also. Maintenance helps to avoid rust and mold, and therefore extend the life of fixtures.
What are the non-direct financial impacts of plumbing problems?
Not all the advantages plumbing maintenance brings are immediately obvious. Several gains might not directly save money but still have financial benefits. Below are five ways in which plumbing problems will impact your business.
A plumbing problem could cause temporary closure. Or it might result in late orders. Either of these is enough to impact reputation. 70% of market value is intangible. Such assets as brand equality or goodwill are intangible but extremely important. Reputation is vital to businesses today, especially with the internet and online reviews.
A loss of reputation will hit revenue and customer retention. For some small businesses, this reputational loss may never be recovered.
2 Staff morale
Poor equipment and constant disruptions affect staff morale. Poor plumbing maintenance may lead to employee bathrooms being closed. If staff perceive their employers are unwilling to invest in basics such as plumbing maintenance, morale will drop. And this will affect productivity.
Investment often affects staff morale as it is a clear sign of intent. New equipment and training programs show that employers wish to invest in growth. But, cutting costs on basic things such as maintenance could lead to a drop in morale.
3 Hygiene and health & safety
Clean water and hygienic work environments are vital for employees. They are also essential for businesses dealing with the public. Poorly maintained plumbing systems can lead to contaminated water and problems with sewer lines. This could lead to health and safety issues and penalties.
4 Investor confidence
If a business is forced to close even temporarily, it can affect investor confidence. After all, if you cut corners on plumbing maintenance, where else might your business have problems?
Companies often rely on investment, and if business operations are affected, investors may be reluctant to put further money into your business. This could directly affect further growth and expansion.
5 Continuity – Business disruptions
This has been mentioned in different ways already. But, the impact of business downtime isn’t something to ignore.
Business disruptions affect more than just production lines. A serious disruption could force a promotional launch to be delayed. It could also affect your ability to service debts as cash flow is hit.
Preventative maintenance of any kind is usually preferable to emergency repairs. Plumbing maintenance helps to avoid major repair work. Burst pipes can cause inordinate amounts of damage. Water damage restoration is costly, not to mention the hit your revenue may take during a closure.
Carrying out regular inspections and maintenance will keep plumbing systems running efficiently, and avoid downtime. Experts often talk about the cost of network downtimes, but a plumbing failure can be financially damaging to any high street business too.