INDUSTRY NEWS
Price is everything, or is it? Covid – 19 has had an impact on all of us one way or another. The most obvious impact is financially. Many industries came to a standstill and revenues dropped significantly. However, there is a flip side. A large number of corporates are now allowing their employees to work from home post the hard lockdown which financially assists the employee by not having to pay for transport costs. Furthermore, it has cut running costs for the company through a reduction in electricity consumption and other basic costs. The bottom line is that everyone is “sharpening their pencil” and finding ways to do things in a less costly, smarter manner. The load testing industry is not immune to this. Being a relatively small and niche industry, the pressure to cut pricing on all sides is becoming more apparent.
quality of service delivered? I do believe there is always room for negotiation, however, there is a basic cost that needs to be adhered to and trying to negotiate below this will affect not only the service one provides but the quality of work delivered as well. Being in the Health & Safety industry, this should not be negotiable. In the long-term it could also result in a drop in salaries offered to certified Lifting Machinery Inspectors’ (LMI’s) which would be counterproductive in enticing new and competent people into the load testing industry. There are always ways to cut costs, but this should be scrutinised and carefully assessed.
Price sensitivity to the economic environment is required but perhaps the question should be, will this affect the standards and quality that is expected and required from the load testing industry?
For many companies, bonuses will have to be forfeited and Christmas lunches wont feature on the agenda, however, one can- not risk cutting costs that will have an impact on the quality of work.
Will price “wars” also have a longterm effect on the industry and
Cutting prices that will force a LMI to load test more units than he can
Is a cheap deal a good deal ? 38
Lifting Africa - Sep/Oct 2020
competently do, or hiring someone who views “load testing” as just a job for a lesser salary is not an answer. Every Lifting Machinery Entity (LME) will have to face this challenge, however, a lot of thought needs to be given to the solution. I don’t believe there is a one size fits all solution but rather an individualistic one. The load testing industry is a critical one and should be viewed as such. The adage “you get what you pay for” may apply to the future in the load testing industry if a prudent outlook is not taken to pricing. This is something that should be carefully considered when selecting your preferred LME. Load test prices need to reflect the quality and service that is delivered. After all, you get what you pay for.
Alpha Load Testing, +27 (0) 82 325 3585, Jennifer@alphalts.co.za www.alphaloadtesting.co.za
