Power outages can have a devastating effect on operations, especially for businesses that hold stock requiring continuous electricity.
The Cost of Power Loss
Power outages are not just inconvenient—they’re costly. An independent grocer in Northern New South Wales unfortunately learned this the hard way, suffering significant losses due to repeated power failures in 2021-22.
For this grocer, located in a region prone to severe weather, the impact of losing power was substantial. Over four separate outages, the store lost power for a total of 40 hours. The consequences were severe:
• Stock Loss: Without refrigeration, much of the store’s fresh produce, dairy, and frozen goods spoiled.
• Revenue Loss: Forced closures during outages led to lost sales and missed business opportunities.
• Operational Disruption: Staff were unable to perform their duties effectively, leading to inefficiencies and added costs.
In total, these 40 hours of power loss cost the store owner approximately $32,000—a significant blow for a small business.
In late 2023, they installed a Hyundai diesel generator to help protect the store from future outages, which saved them from suffering during the January 2024 thunderstorms. Not only were they protected from stock spoiling, but they were also able to continue trading.
The Hyundai 45kVA diesel generator, complete with constant potential battery charger and ATS panel, with a local electrical contractor’s installation fee totaled $24,400.00 + GST. This generator will start automatically on loss of mains power, keeping your stock, staff and customers safe.
For the store owner, this was a worthwhile investment in the future stability of the business.
The Impact of the Backup Power Solution
Since the installation of the Hyundai diesel generator, the grocer has experienced peace of mind knowing that the store is protected against power outages. The generator’s ability to kick in automatically has proven invaluable, ensuring that the business can continue to operate smoothly even during unexpected power cuts, like those experienced in January.
• Uninterrupted Operations: The most significant benefit was the ability to keep the store open and fully operational during the January power outages. This has not only prevented further losses but also allowed the store to serve customers during times when competitors may have been forced to close.
• Protecting Stock: With reliable backup power, the store’s perishable goods are kept at the correct temperatures, preventing spoilage and the associated financial losses.
• Customer Trust: Customers trust that the store will be open and ready to serve them, even during adverse conditions. This reliability has reinforced the store’s reputation in the local community.
• Employee Safety and Productivity: The generator also plays a crucial role in keeping the store safe and comfortable for staff, allowing them to work efficiently without the stress of power-related disruptions.
The Real Value of Backup Power
For businesses like this independent grocer, the real value of a backup power solution lies in the security it provides. While the upfront cost of a generator may seem significant, the potential savings far outweigh the investment. In this case, the $24,400.00 spent on the generator and its installation was more than justified by the prevention of a single major power outage.
It’s also important to consider the broader benefits of having a reliable backup power solution in place. Businesses can focus on growth and customer service without the constant worry of what might happen during the next storm or unexpected power cut. For the grocer, it means confidence in the business’s future and the ability to plan for growth rather than simply reacting to emergencies.
Power outages are more than just an inconvenience; they can be a financial disaster for small businesses. If your business cannot afford the risk of power loss, don’t wait until it’s too late. Now is the time to consider investing in an automatic-start backup power generator. Genelite offers a range of reliable generators and will tailor a solution to meet the unique needs of your business.
Contact our team today on 1300 305 912 to discuss how we can help protect your business with a customised backup power solution.