“The Maintenance Monster - The Unknown Expense”

It's impossible to know exactly how much money you will spend in one year for engineering related expenses.  We know that certain expenses are unavoidable, but how do we plan and budget properly? If a transmitter failure makes you spend more money than your budget allows, will you wait to January 1 to go back on the air?  With a little organization and planning, you can ensure that your engineering budget is sufficient to keep your facility going.

Equipment Maintenance Costs-
Tackling the equipment maintenance monster

With so much equipment, and so many things that can break, how is it possible to predict the cost of maintaining your radio facility? Here's an easy way to get started:

First of all, have your engineer compile a list of the stations' equipment in a computer database such as DBASE  III. The exact computer program is not important, just get the information entered into the computer!  Make sure that every piece of equipment in your facility is entered. Now enter the exact known cost of maintaining each piece of equipment. (For example: Pinch rollers for cart machines need to be replaced every 6 months to a year....etc.) Next enter the cost of possible major repairs for each piece of equipment. The repair costs should be based on major component failure. Set up a separate parts budget to cover any minor equipment repairs.  When you've compiled your list, get a total amount and don't faint. Each piece of equipment in your facility won't need major repair each year. Your facility will have a certain failure rate and you need to guess what the failure rate will be at your facility. If you guess to high, you'll be under-budget, too low and you'll be over-budget. A good place to start is 30%. Take the total from your  database and multiply it by 30% (.3). Now you've got your equipment maintenance budget. After one year you may need to adjust this failure rate depending on your facility.

Physical Plant Costs-

Power -
You can easily budget your energy consumption by reviewing the previous year's power bills. If the power company hasn't changed their rates, month by month power consumption should track closely year to year.

Electricity costs can be reduced-
With today's technology, there are many ways to reduce overall power consumption. Consider an energy audit by your local power company or an independent consultant.
Look at your power bills and then compare them to other radio facilities' power usage.  Most power bills show kilowatt usage and/or demand which makes a comparison very easy. If  your power meter incorporates a demand meter, you are charged a premium when you need more power. Ask your engineer to run only one transmitter at a time.  Test the back-up transmitter directly on the air (not into a dummy load) or if your facility has an emergency generator, test the back-up transmitter when the generator is on-line. If the generator is on line, you are not using the power company's resources and the demand meter will show no change). The whole idea is to reduce the amount of energy you demand from the power company at one moment. You'd be surprised how much money this can save!
Power companies sometimes offer different rate structures to large power consumers, this also can save you big $$$. Check with you power company to see if you qualify for one of these bulk rates.

Service contracts- Friend or Foe?

Service contracts are great because they are a known quantity, we know  exactly what the costs will be to maintain several areas of our facilities, but they're not cheap. Some contracts include labor only, so make sure to budget extra money for parts. Your vendor should be able to supply you with a guesstimate of the yearly parts costs.
Service contracts usually cover the following areas:
Air Conditioning
Telephone systems
Computer systems
Generators
Office equipment

Air Conditioning (AC) -
In order to have a reliable air conditioning system,  the AC units must be checked monthly and the air filters must be changed. This is best done by a qualified air conditiong company, and an AC service contract usually includes these services.
Be careful, most AC service contracts are labor only. Make sure that your contract includes 24 hour service in case of emergencies. Depending on your transmitter site, lack of AC can put you off the air and damage your equipment.  Your on air-personalities aren’t going to be performing at their best in a studio that’s 95 degrees!
Prevent catastrophes by installing redundant AC units at the studio and transmitter site. You can significantly reduce your power bill by installing energy efficient AC units at the studio and transmitter site.

Telephone systems -
How long can you operate with your telephone system out of commission? Probably not for long. Don't bog down your  engineering department with telephone repairs, invest in service contract for your telephone system. A service agreement will get you back up and running quickly and will shield you from unexpected maintenance costs.
Larger phone systems should have a parts & labor contract.

Computer Systems -
Computer system service contracts are usually expensive and sometimes unnecessary. If your facility uses IBM compatible computers, your engineer can stock a total compliment of replacement parts at a fraction of the cost of a service contract. If a particular computer is critical to your station, then you might consider keeping a complete back-up unit or a service contract on the particular unit.
Generators -
If you have a generator at your transmitter site, you most likely have one at your studio location plant. These generators need weekly maintenance or they'll fail when  most needed.  Have your generators serviced on a parts and labor basis, and schedule one major service per year. Your generator company can give you an idea of the yearly costs for this type of schedule.  Your engineering department should test all generators on a weekly basis and then log the results of the tests.

A radio station is no different than a car.

With proper preventative maintenance and a good mechanic, it can run for years. In order to keep your radio facility operating properly, equipment must be maintained and repaired. A radio station is no different than a car. With proper preventative maintenance and a good mechanic, it can run for years. You can set up a budget with sufficient funds to properly maintain your facility. Review your equipment failure rates on a yearly basis and make budget adjustments accordingly.  Give your engineering department the tools needed to keep the facility running smoothly. Use service companies to fill in areas that are out of your engineering department's expertise.