A Clearly Defined ROI Through a Maintenance Plan
OVERVIEW
An On-Demand Repair is typically referred to as Reactive Repair and involves fixing various fluorescent, neon, LED, and HID (High-Intensity Discharge) fixtures.
When damage occurs, the reason is likely due to the current controls failing or from storm damage. In extreme cases, if there is enough damage to cause physical harm, like electrocution, a dispatching service would automate under an emergency or hazard situation.
Otherwise, 80% of repairs are due to the signage lights not working with a typical SLA timeframe of 3-days. However, what if you suddenly need several high-volume reactive repairs across your 600 properties?
Below is an example of how we supported a client who experienced a challenge regarding their signage maintenance strategy and how we mitigated their on-demand maintenance services to achieve their assets’ best ROI.
APPROACH
Assess
A national casual dining restaurant with 600 locations approached us regarding their spend of more than $600K last year on reactive repairs.
The client’s transformers were failing, and a recent wave of storms created electrical and face repair issues at a greater frequency than normal. Also, the client’s signs still utilized neon technology and stopped burning.
When assessing this situation, you must consider asking these two primary questions:
- What is the age and condition of their existing signage?
- How much is the client currently spending on maintenance?
If the signage condition is old, on-demand repairs are just throwing valuable resources away on old assets when the client can retrofit their signage to LED. Also, having the right partner take the time to recommend a preventative maintenance strategy can help mitigate future repair costs.
Execution
Since most of the client’s signs were over 10-years, we worked with this client to build a long-term repair solution to re-invest their budget dollars into other facility initiatives.
Not only did the client dramatically reduce their repair costs through our recommended solutions, but they were also able to reduce their electricity costs because their newly installed LED components were much more energy-efficient than their previous neon technology.
In addition, by partnering with a national signage partner, they have the reliability of a full-fledged partnership providing top-of-the-line value towards their ROI. They also have access to 200+ account managers and a 24/7 command support center for all of their maintenance support, including a highly-vetted database of 3000+ sign technicians.
Outcome
Overall, the client saved 80% of their energy expenditures and obtained a payback from their LED upgrades in 2.2 years, due to the retrofitted LEDs having up to 60,000 rated hours, which requires close to zero maintenance.
The client also cut down their total maintenance on-demand costs by 93% and reduced their on-demand site visits by 77%.
RESULTS
Energy Savings
Saves 80% of energy
Return Investment
ROI within 2.2 years
Maintenance Cost & Site Visits
Costs down by 93% & reduced on-demand visits by 77%
By making sure to connect with a multi-site national sign partner, you can acquire mass savings and re-invest your time and financial resources towards other business endeavors.
Specific things to look out for before signing your SLA are to make sure your requirements meet standards and that your partner can service your portfolio’s demands.
Additionally, you should have access to a streamlined dispatch platform with many agents to support your current signage program.
Only a few firms can handle large SOW requests and reactive repairs. Make sure your partner is one of them.