1. Lost Revenue
How much revenue per hour depends on that piece of equipment? If you can calculate this, you might be able to quantify the ‘uptime’ rate of the device and thus determine the revenue your business is losing when your device is down.
Lost Revenue Formula:
Lost Revenue = Revenue (per hour) of a device X Downtime (hours)
For example, a metal scrap yard depends on its scales to generate revenue. If the scrap yard generates $20,000.00 in an 8-hour day, that’s $2500.00 per hour. If 60% of that revenue is generated by their vehicle scale, that vehicle scale has an ‘uptime’ rate of $1500.00 per hour. If the scale is down for just 3 hours, the business will lose around $4500.00 of revenue.