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Financial Impact of an Internet Outage

No Internet service provider can guarantee their network will be up 100% of the time. Regardless, you need a reliable high speed internet connection; because the financial impact of an Internet outage can mount up quickly.  

The payroll cost. Your employees can’t do their job when the Internet goes down. In addition to the obvious loss of email and VoIP phone service, many of us use cloud based CRM, accounting, videoconferencing, and file storage solutions. With no Internet, there is no work being done.

The cost of idle workers increases with every minute that passes. To calculate the total loss for an internet outage, simply multiply the total amount of time the Internet is down by each employee’s hourly salary. Then add each worker’s total together. If the internet is down for very long, the cost can increase very quickly.

The unable-to-pay cost. I recently went to a restaurant and watched people go to the counter, shake their heads, turn around, and walk out. I quickly discovered the cause of the frustration when it was my turn at the counter. The Internet was down and so were the restaurant’s credit card machines. They were offering to write down everyone’s card information on a form and submit it when the Internet came back up, but they had very few takers. I wondered how many dollars walked out the door because of that outage during their lunch peak.

The lost customer cost. How many times would you attempt to contact a company before you quit trying and went somewhere else? If you’re like most of us in this fast-paced world, not very many times. This one is impossible to calculate, because no one is going to contact you later to tell you they tried to do business with you, but couldn’t get through to you. We expect companies to be available and we see it as a sign of poor customer service when they’re not.

You don’t need a master’s degree in accounting to understand that an Internet outage impacts your bottom line. When it comes to your business health, Internet dependability is just as important as Internet speed. We understand and work hard to make sure our network is solid. Do your homework and make sure your Internet service provider is reliable.

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