Numbers is the name of the game in the shopping centre business: keeping revenue up and costs down. Are you keeping on top of the hidden costs that can eat your profits over time?
Proactive maintenance empowers you to take control of your shopping centre's financial future. While delaying maintenance offers the illusion of saving money in the short term, it often leads to significantly higher costs down the line.
Ignoring maintenance has far-reaching consequences beyond simple breakdowns and inconveniences. Let’s explore how to avoid the common mistakes of neglecting maintenance in a shopping centre.
1: Prioritising Short-Term Savings Over Long-Term Costs
Sure, you might be able to save some costs by ignoring the escalator maintenance schedule, but when it eventually breaks down it will come with a hefty repair bill, plus the cost of visitors losing easy access to upper levels.
The “fix-it-when-it-breaks” approach is costly. Uninspected equipment can erode out of sight – minor issues can become major headaches.
Emergency repairs need to be fixed right away. You can’t wait for a convenient day for the contractor, and you’ll need to buy parts from whoever can supply them quickly rather than a cheaper supplier.
There are other expenses too. Neglected equipment often needs to work harder, which consumes more energy and leads to higher utility bills. Let’s consider a couple of core systems:
HVAC Systems
- Dust and debris building up in filters and coils. This makes the system work harder, using more electricity.
- Inadequate lubrication, causing friction and overheating – shortening the system's lifespan.
- An unaddressed refrigerant leak can damage expensive compressors.
Plumbing
Neglected plumbing can suffer from scale and sediment buildup, corrosion, and worn seals. This could lead to leaks and water damage. In some cases this can result in burst pipes and extensive damage to walls and floors. This could mean flooded shops have to temporarily close.
Other Critical Systems
Electrical wiring, elevators, escalators and roofing face similar risks. Neglecting these systems leads to fire hazards, component failure and structural damage.
2: Losing Customers Through Reputational Damage
A shopping centre at its best, maintained the best, is a seamless, enjoyable experience. A poorly maintained shopping centre damages the reputation of the business and can erode brand loyalty.
Without a comprehensive maintenance plan, you can only hope nothing else breaks while your contractors are still fixing that escalator. Customers don’t like inconvenience, and those inconveniences can stack up quickly: broken equipment, dirty restrooms, dim lighting.
Negative online reviews can create a lasting impression that can be difficult and costly to reverse. Keep things looking good and feeling fine, and you can avoid all the drama.
3: The Ripple Effect (Tenant Relations)
Strong tenant relationships start with strong maintenance, and neglected maintenance doesn't just annoy shoppers, it's a direct hit to your rent-paying tenants. Tenants will be the first to complain about that broken escalator cutting off their customers.
The ripple effect goes like this: poor maintenance leads to fewer shoppers, making for unhappy tenants, then a revenue plunge for the shopping centre.
Bottom line: professionals with a comprehensive maintenance plan communicate well and fix things fast to keep your tenants and your profits happy.
4: Getting Lax on Safety and Liability
Neglecting maintenance isn't just a bad look; it's a liability minefield. Neglecting safety can lead to potentially serious consequences, including:
- Endangering Customers and Tenants: Faulty electrical wiring can spark fires and put everyone at risk.
- Increased Accident Risks: Poor lighting, broken handrails and uneven surfaces can all contribute to a higher risk of accidents.
- Legal Troubles: For example, inadequate wheelchair access could lead to costly and reputation-damaging legal battles and settlements. Shopping centres need to have adequate access and comply with all accessibility regulations.
- Higher Insurance Premiums: A history of accidents or safety violations could mean higher insurance premiums.
- Compliance Fines: Neglecting maintenance can lead to fines and penalties for non-compliance.
Proactive maintenance is the best defence against these risks. Partnering with professionals and sticking to a comprehensive plan can keep shopping centres out of all that hot water.
The Solution: Let First Response Tackle Your Hidden Costs
Working with an experienced maintenance provider is the best way to avoid all these common mistakes.
At First Response, we have proven experience with shopping centres. We know the pitfalls of the industry and can make sure that everything keeps running smoothly when things get busy.
We can provide support for your current maintenance efforts or act as your comprehensive maintenance partner. Contact First Response to learn how our tailored maintenance solutions can support your shopping centre.