With the recent domestic epidemic under effective control, the economy finally pressed the restart button. Many provinces, cities, and regions have launched cultural tourism night tourism projects, investing billions, tens of billions, or even hundreds of billions to stimulate the economic recovery and growth of night cultural tourism. In the current period when domestic and foreign demand is relatively weak, how to take into account the long-term development of the enterprise and achieve the best economic benefits has become one of the urgent demands of the company.
Is your “cost control” right?
The so-called total cost of ownership (TCO) refers to the sum of equipment purchase costs and the costs incurred during the entire life service cycle, including after-sales operation and maintenance costs. This survey found that companies pay more attention to TCO than just purchase costs.
In outdoor lighting construction projects, TCO is mainly composed of three parts: lamp cost, construction cost, and maintenance cost. Among them, the maintenance cost accounts for 8%-15%, while the lighting cost accounts for 55%-60%, and the construction cost is 25%-30%.
All interviewees agreed that TCO played an important role in the project. Among them, more than 45% believe that TCO is more important. After all, the project is the overall cost of procurement + installation + maintenance, while 43% believe that TCO is very important because money is spent on the blade. Although 11.39% of people think that the overall effect of the project is more important, they also said that the importance of TCO in the project cannot be ignored.
It can be seen that in the minds of lighting practitioners, especially owners, lighting designers, and engineers, TCO is the first restrictive element in starting a project. From the beginning of the construction phase, cost optimization should be considered as a whole, not only the equipment itself but also the operation and maintenance costs that may occur during the entire project operation cycle.
Redefine the “cost economy” of outdoor lighting
There is no doubt that the purchase cost of lamps directly affects the level of cost control in all aspects, and nearly 80% of the lamp’s own manufacturing costs have been determined by the raw materials at the beginning of the lamp design. What kind of light source, heat dissipation, waterproof and dustproof to choose? As raw materials, breathable valves have a direct impact on the cost of the lamp, and also affect the maintenance cost of 8% to 15% in the later period.
For the companies surveyed this time, their cost reduction mainly starts from project management costs, business costs, lighting costs, construction costs, and maintenance costs. Among them, 72.15% and 60.76% believe that project management costs can be reduced. And business costs for cost control; 50.63% and 48.1% of the interviewees think it can be optimized from the cost of lighting and maintenance.
Lamp cost and maintenance cost complement each other. Although low-quality products have low procurement costs, their subsequent maintenance costs will continue to increase sharply, which will still lead to a sharp increase in TCO. Therefore, in project procurement, in addition to considering the cost of the lamp itself, it should also consider its technical properties such as waterproof level, breathability, oil pollution, and salt spray, so as to effectively reduce the operation and maintenance risks and achieve the optimal cost configuration. Improve economic efficiency as a whole.
In addition, some people in the lighting industry said that they can also reduce unnecessary costs by reducing transportation costs for foreign-related projects, introducing smart management, and strengthening technology upgrades.
It can be seen that the total cost of ownership (TCO) control has penetrated into all aspects of outdoor lighting project operation, ranging from mid-term construction and later maintenance to the early purchase of lighting materials. Reasonable lighting costs, balanced technical construction, and good post-maintenance all provide unlimited possibilities for the optimization of the total cost of project ownership.