Tuesday, February 26, 2013

Cost vs. Benefit I


Cost benefit analysis should be factored into all business decisions. In some cases inferior goods are feasible and quality should be compromised when the benefit is miniscule. For example, store brand cereal verses name brand cereal, or store brand cotton swabs verses Q Tip cotton swabs. For most products and services there is no brand differentiation. Gas is gas, whether you fill up at the Mobil or the local BP. Why pay more for the same product or service? 


Does electrical service fall into this category? 

Not exactly and here are a few reasons why. According to the law, a license holder is required to perform all electrical work. Home and business owners tend to hire journeyman for execution of small projects to reduce costs. Customers tend to believe that a lack of overhead will insure a more cost effective job. This is possible. This is also illegal, but it happens. 

However, a professional license holder is optimal in regards to executing any project. These projects may include open Certificates of Occupancies, Legalization's, and open permits. A licensed electrician is recognized by the county or city for their skills and qualifications. The license holder is knowledgeable and works according to the NEC, National Electric Code book, which is tested. The NEC is the governing law to maintain safety and correct installation of everything electrical; including materials and controls. A license holder in Westchester, NY is required to have a minimum of 11.5 years experience in order to qualify for the exam and if successful they are obligated to be insured. 

This means your license holder has been tested and certified to have the experience necessary to manage any electrical project. The licensed electrician should be capable of consulting, offering suggestions and advice to a customer based upon the task at hand. Another positive is that the project should be done correctly the first time. A journeyman cannot file for a job and if the job is not done properly the customer could be fined or forced to shut down, or close their residence. The benefit of having a licensed electrician is the peace of mind will save you money and time. 

 Michael M Muqattash MBA, February 19, 2013.