3 Reasons Why Commercial Building Owner-Operators Need to Calculate ROI for Water Leak Detection Solutions

Understanding the return on an investment is a fairly standard requirement when you’re running a business. Similarly, when you own or operate a commercial property (or portfolio of properties) it’s fairly standard to implement water leak detection solutions.

So why are so few commercial property owners & operators certain of the ROI for their water leak detection solutions?

Why calculating ROI for water leaks is hard

You need data you don’t have

Calculating ROI is hard if you don’t have the data. And the reality is that unless you’re claiming every single water leak on insurance, you’re probably not aware of how much they actually cost you each year. 

But we know from our own research that over 50% of facilities managers don’t make any insurance claims for water leaks, and that over 31% of facilities managers make insurance claims for less than half of the leaks they’ve experienced.

And if you’re not making insurance claims, it can feel overwhelming to try to figure out where to start when it comes to pulling together a list of costs associated with water leaks.

You might not like the time-to-ROI if you’ve chosen a traditional solution

Traditional water leak detection solutions may not offer quick time-to-ROI

Because it’s accepted that buildings need some kind of water leak detection, getting a first solution implemented can be quite straightforward. But traditional solutions tend to be pretty expensive, particularly if installation is invasive, or if your chosen solution is actually manual inspections.

Either way, no one’s exactly motivated to calculate ROI when it comes to big numbers that might only show positive numbers after 5 years.

3 great reasons to start calculating ROI for your water leak detection solution

1. You need less data than you think

If you’re just starting out, you don’t necessarily need a ton of data. You know what your solution(s) cost.

Then just think about the average water leak-related costs in any given month - labor, materials, downtime, and any specialist expertise you need to bring in. Multiply this by 12 and you have a starting point.

If you want to work out a more nuanced calculation, chat to your water leak detection solution vendor, who should be able to help you dig into some more detail. After all, it’s in their best interest to help you prove strong ROI.

2. Some solutions offer quicker time-to-ROI

Traditional solutions can be expensive - both to purchase, as well as to install. But newer, more modern solutions are available at more competitive price points, and may even include the cost of installation in their pricing. And a lower price point contributes towards faster time-to-ROI.

It’s also worth noting that some newer solutions are capable of detecting water leaks at earlier stages, which means being able to action repairs before expensive damage is done. This contributes significantly to a faster time-to-ROI.

3. Understanding ROI helps to maximize operational efficiency

Understanding the ROI of both current and potential water leak detection solutions helps you to maximize efficiency, and allocate budgets with the best possible impact in mind.

Even if you’ve already bought and paid for ropes or pucks, paying for an early water leak detection solution might cost less than the time, materials, and downtime associated with the repairs that your current solutions provide. And in the end, those cost savings matter.

We make it easy to calculate ROI for your water leak detection solutions

Whether you’re operating garden-style multifamily residences, high-rise office buildings, or manufacturing plants, water leaks will happen.

Calculating the ROI of water leak detection solutions should be a part of your procurement process - and one that any vendor should be happy to help you with.

Want to get started?

Download our eBook, How to Calculate ROI for Your Water Leak Detection Solution, then get in touch - we’d love to help.