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Is there a room in professional PAT testing for a business model other than 'per unit'?

I ask because I've been giving this some thought. I've just finished the 2377-22 course. Not with the intention of actually doing any PAT testing professionally, rather mainly for the purpose of my own 'in-house' testing for a handcraft luminaires business I intend to launch soon. Originally I was dead against the idea of offering testing to others, mainly because I think of it as rather dull and I also couldn't find any serious competition locally. You may find this counter-intuitive, but I sometimes take lack of competition to be an ominous sign for a new business idea, as to my way of thinking it may indicate a lack of demand for the product or service. If lots of people are doing the same thing, I often take that as a good sign, the only challenge being then to find a differentiator.

Anyway, I live in a tourist area and my tutor on the 2377-22 course has suggested I look into hotels, B&Bs and what not, and I've had a re-think about it. It could be done as a spin-off from my lamp business, using my machine tester, and would be a way of acquiring a bit of electrical experience on my path to (I hope) qualifying as an electrician; and, it affords me some experience of interacting with clients, maybe with a view to building up a client list of my own. Plus, you never know, I may make a bit of money out of it, if I can find a niche.

My understanding of the conventional business model for PAT testing is that you price per item tested and you have a minimum fee that you charge irrespective. Thus, typically 'Anywhereshire PAT Testers' might charge £1.50 per item tested with a minimum fee of, let's say, £50.00.

I've also noticed that one or two testing firms have a 'site fee', similar to the minimum fee, which applies at the lower end of the fee scale, and covers the provider's costs for site attendance in addition to item fees.

The per test fee tends to be scaled progressively according to number of items tested, with a 'POA' for testing over a certain limit depending on the provider's capacity - typically 'POA' might kick in at 10,000 items.

I realise that, in reality, many providers - especially the larger ones - have driven down pricing considerably, in some cases significantly below £1.00 per unit. I can only assume this is a risk sharing strategy on the part of client and provider (a sort of cost-driven Faustian bargain), in which the provider relies on value-added and spin-offs to achieve greater margins while the client is narrowly concerned with the trade-off of risk and is, in effect, paying to outsource compliance regardless of whether the provider is good, bad or indifferent. They simply don't care if the equipment is actually inspected properly or machine-tested or even looked at all.

Whatever the morals of all of this, it is commercially understandable, and the purpose of this thread is NOT to criticise it or get into a debate over the rights or wrongs of it. I merely seek to understand it because this pricing model, as I have outlined, seems to be ubiquitous to the industry. I have seen variations on the theme, but all providers seem to stick to this core model, albeit that some are more ethical than others. I have hunted high and low and cannot find anybody who departs from it - which is interesting in and of itself.

I am now going to outline a slightly different approach and invite constructive feedback:

(i). My interest would be in providing thorough, proper, ethical, competent in-service testing. I would take the emphasis off simple machine testing and instead emphasise advice/guidance about sound and pragmatic inspection and re-testing regimes for different types of devices, with the aim of both safety and long-term cost reduction.

(ii). I would charge a day rate or fixed overall job rate, rather than a per item rate. So instead of £1.00 per item or whatever, my price would be per job or visit - let's say for argument's sake, £75.00 per visit or £75.00 for the whole job.

(iii). I would visit clients with business premises over two days - the first day would be scoping, preparation and paperwork, and based on this I would provide the client with a quotation. If the quote is agreed, the second day would be the actual inspection and testing, and I would then e-mail the client the final report and invoice. For landlords, I would try to combine these steps into one single day so as to minimise disruption to tenants.

(iv). I would market my service to small, owner-managed businesses such as shops, B&Bs/guest houses, small hotels, professional firms, small officers, perhaps the smaller independent care homes, and letting agents/managing agents, HMO landlords, etc.

(v). I would set clear parameters to my service, based on my competence and capacity. I would make clear that I am not an electrician and cannot undertake general electrical work. I would seek to assist clients only with ordinary consumables that can be tested adequately using a basic device such as a Martindale HPAT600 or similar. I would not undertake Fixed Appliance Testing or testing of commercial/industrial scale equipment, especially those with switching parts. There are other exclusions, which I won't exhaust here.

(vi). I would stick to my local area - this helps me to control overheads and allows me to provide proper support to clients and makes testing/re-testing cycles more viable.

(vii). I would add value by offering free simple repairs (within clearly-defined parameters), free replacement electrical accessories such as bulbs and fuses (up to a given maximum) and discounted accessories over the maximum. I would also provide a government-licensed waste disposal service at no cost to the client in regard to items that 'Fail' and cannot be viably repaired.

Any thoughts, comments or advice? I ought to just make clear that I'm familiar with the basics of starting a business (insurance, etc.) and I've done a lot of my own research, but I have never run or offered electrical services to the public, even at a basic level such as PAT testing. It's just an idea at this stage.

I'm particularly interested in whether anybody here has tried (ii) above. If so, what was the response to that method of pricing? How was it put across to the client? If you abandoned this method, why was that?

I'm also interested in knowing whether it is worthwhile joining one of the schemes for PAT testers like NAPIT?
 
Is there a room in professional PAT testing for a business model other than 'per unit'?

I ask because I've been giving this some thought. I've just finished the 2377-22 course. Not with the intention of actually doing any PAT testing professionally, rather mainly for the purpose of my own 'in-house' testing for a handcraft luminaires business I intend to launch soon. Originally I was dead against the idea of offering testing to others, mainly because I think of it as rather dull and I also couldn't find any serious competition locally. You may find this counter-intuitive, but I sometimes take lack of competition to be an ominous sign for a new business idea, as to my way of thinking it may indicate a lack of demand for the product or service. If lots of people are doing the same thing, I often take that as a good sign, the only challenge being then to find a differentiator.

Anyway, I live in a tourist area and my tutor on the 2377-22 course has suggested I look into hotels, B&Bs and what not, and I've had a re-think about it. It could be done as a spin-off from my lamp business, using my machine tester, and would be a way of acquiring a bit of electrical experience on my path to (I hope) qualifying as an electrician; and, it affords me some experience of interacting with clients, maybe with a view to building up a client list of my own. Plus, you never know, I may make a bit of money out of it, if I can find a niche.

My understanding of the conventional business model for PAT testing is that you price per item tested and you have a minimum fee that you charge irrespective. Thus, typically 'Anywhereshire PAT Testers' might charge £1.50 per item tested with a minimum fee of, let's say, £50.00.

I've also noticed that one or two testing firms have a 'site fee', similar to the minimum fee, which applies at the lower end of the fee scale, and covers the provider's costs for site attendance in addition to item fees.

The per test fee tends to be scaled progressively according to number of items tested, with a 'POA' for testing over a certain limit depending on the provider's capacity - typically 'POA' might kick in at 10,000 items.

I realise that, in reality, many providers - especially the larger ones - have driven down pricing considerably, in some cases significantly below £1.00 per unit. I can only assume this is a risk sharing strategy on the part of client and provider (a sort of cost-driven Faustian bargain), in which the provider relies on value-added and spin-offs to achieve greater margins while the client is narrowly concerned with the trade-off of risk and is, in effect, paying to outsource compliance regardless of whether the provider is good, bad or indifferent. They simply don't care if the equipment is actually inspected properly or machine-tested or even looked at all.

Whatever the morals of all of this, it is commercially understandable, and the purpose of this thread is NOT to criticise it or get into a debate over the rights or wrongs of it. I merely seek to understand it because this pricing model, as I have outlined, seems to be ubiquitous to the industry. I have seen variations on the theme, but all providers seem to stick to this core model, albeit that some are more ethical than others. I have hunted high and low and cannot find anybody who departs from it - which is interesting in and of itself.

I am now going to outline a slightly different approach and invite constructive feedback:

(i). My interest would be in providing thorough, proper, ethical, competent in-service testing. I would take the emphasis off simple machine testing and instead emphasise advice/guidance about sound and pragmatic inspection and re-testing regimes for different types of devices, with the aim of both safety and long-term cost reduction.

(ii). I would charge a day rate or fixed overall job rate, rather than a per item rate. So instead of £1.00 per item or whatever, my price would be per job or visit - let's say for argument's sake, £75.00 per visit or £75.00 for the whole job.

(iii). I would visit clients with business premises over two days - the first day would be scoping, preparation and paperwork, and based on this I would provide the client with a quotation. If the quote is agreed, the second day would be the actual inspection and testing, and I would then e-mail the client the final report and invoice. For landlords, I would try to combine these steps into one single day so as to minimise disruption to tenants.

(iv). I would market my service to small, owner-managed businesses such as shops, B&Bs/guest houses, small hotels, professional firms, small officers, perhaps the smaller independent care homes, and letting agents/managing agents, HMO landlords, etc.

(v). I would set clear parameters to my service, based on my competence and capacity. I would make clear that I am not an electrician and cannot undertake general electrical work. I would seek to assist clients only with ordinary consumables that can be tested adequately using a basic device such as a Martindale HPAT600 or similar. I would not undertake Fixed Appliance Testing or testing of commercial/industrial scale equipment, especially those with switching parts. There are other exclusions, which I won't exhaust here.

(vi). I would stick to my local area - this helps me to control overheads and allows me to provide proper support to clients and makes testing/re-testing cycles more viable.

(vii). I would add value by offering free simple repairs (within clearly-defined parameters), free replacement electrical accessories such as bulbs and fuses (up to a given maximum) and discounted accessories over the maximum. I would also provide a government-licensed waste disposal service at no cost to the client in regard to items that 'Fail' and cannot be viably repaired.

Any thoughts, comments or advice? I ought to just make clear that I'm familiar with the basics of starting a business (insurance, etc.) and I've done a lot of my own research, but I have never run or offered electrical services to the public, even at a basic level such as PAT testing. It's just an idea at this stage.

I'm particularly interested in whether anybody here has tried (ii) above. If so, what was the response to that method of pricing? How was it put across to the client? If you abandoned this method, why was that?

I'm also interested in knowing whether it is worthwhile joining one of the schemes for PAT testers like NAPIT?
You could do better if you referred to the testing by it's correct title, it's not PATtesting it's In Service Inspection and Testing of Electrical Equipment that refers to fixed, stationary equipment, such as hand driers, sanitary disposal units etc, not just plug in stuff, may get your proposed business plan off to a better start, if you get the terminology right in the first place.
 
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You could do better if you referred to the testing by it's correct title, it's not PATtesting it's In Service Inspection and Testing of Electrical Equipment that refers to fixed, stationary equipment, such as hand driers, sanitary disposal units etc, not just plug in stuff, may get your proposed business plan off to a better start, if you get the terminology right in the first place.

I know what it's called, I've read the Code of Practice cover-to-cover and word-for-word, but "PAT testing" [you'll notice I often put it in scare quotes, I do so for a reason] is the commonly-used term and I'll use it in marketing. This very Forum uses the phrase, as does virtually everybody here, as does literally everybody in the industry who carries out the testing. Rightly or wrongly, it's what people call it.

In fact, until you just commented, the only person on here who had referred to it by its proper terminology was MYSELF!
 
I would also try and stress the correct title as Pete says. Remember, probably the biggest part of the whole process is inspection, rather than test.

Saying that, people will always call it PAT testing.
 
I would also try and stress the correct title as Pete says. Remember, probably the biggest part of the whole process is inspection, rather than test.

Saying that, people will always call it PAT testing.
The ill informed may Mate, don't make it right though does it??
 
I think like most of these things, the market has already plenty of companies who offer Pat testing, sorry Pete ISITEE. It may be in your area you could have a little niche; you'll only know if you try.

I'm an electrician by trade, now working in maintenance. My employer is in the process of repairing & calibrating our PAT tester, so I can go round testing all our equipment. Which is really interesting, because only the other week I was informed it was impractical for me to replace luminaires on site, 'cos I don't have a mission statement, or necessary risk assessments. So if anything goes wrong its my risk, not the companies. Just like to share that.
 
I apologise for my earlier response, it reflects a flaw in my character in that I don't like to be 'told' stuff, especially if I already know it. I'm too old to correct it now.

It is a good point you make that I could differentiate myself by referring to the process properly, so I will take that on board and think that through some more. My initial reaction to it, though, is that it will probably just cause confusion. I have in mind here the market I am aiming it, which isn't technically sophisticated, whereas they will have a broad idea what is meant by "PAT testing" and it's then up to me to differentiate myself.
 
I think like most of these things, the market has already plenty of companies who offer Pat testing, sorry Pete ISITEE. It may be in your area you could have a little niche; you'll only know if you try.

I'm an electrician by trade, now working in maintenance. My employer is in the process of repairing & calibrating our PAT tester, so I can go round testing all our equipment. Which is really interesting, because only the other week I was informed it was impractical for me to replace luminaires on site, 'cos I don't have a mission statement, or necessary risk assessments. So if anything goes wrong its my risk, not the companies. Just like to share that.
Not just in my area Mate Country wide actually, just because you may call it PAT testing doesn't make it the correct designation, similar to " Electricians calling a RFC a ring main", lack of professional acumen in my book, a ring main can mean anything that's wired in a ring formation, take a HV ring as an example, pedantic ? maybe, but I'm right aren't' I ?
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I know what it's called, I've read the Code of Practice cover-to-cover and word-for-word, but "PAT testing" [you'll notice I often put it in scare quotes, I do so for a reason] is the commonly-used term and I'll use it in marketing. This very Forum uses the phrase, as does virtually everybody here, as does literally everybody in the industry who carries out the testing. Rightly or wrongly, it's what people call it.

In fact, until you just commented, the only person on here who had referred to it by its proper terminology was MYSELF!
Carry on then Mate and good luck
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I apologise for my earlier response, it reflects a flaw in my character in that I don't like to be 'told' stuff, especially if I already know it. I'm too old to correct it now.

It is a good point you make that I could differentiate myself by referring to the process properly, so I will take that on board and think that through some more. My initial reaction to it, though, is that it will probably just cause confusion. I have in mind here the market I am aiming it, which isn't technically sophisticated, whereas they will have a broad idea what is meant by "PAT testing" and it's then up to me to differentiate myself.
Nobody knows it all Mate, and no one is to old to be corrected, Tel will tell you age is just a number.
 
Not just in my area Mate Country wide actually, just because you may call it PAT testing doesn't make it the correct designation, similar to " Electricians calling a RFC a ring main", lack of professional acumen in my book, a ring main can mean anything that's wired in a ring formation, take a HV ring as an example, pedantic ? maybe, but I'm right aren't' I ?

I'm with you all the way Pete, my remark was tongue in cheek.
 
I know what it's called, I've read the Code of Practice cover-to-cover and word-for-word, but "PAT testing" [you'll notice I often put it in scare quotes, I do so for a reason] is the commonly-used term and I'll use it in marketing. This very Forum uses the phrase, as does virtually everybody here, as does literally everybody in the industry who carries out the testing. Rightly or wrongly, it's what people call it.

In fact, until you just commented, the only person on here who had referred to it by its proper terminology was MYSELF!
And Me of course
 
Just to be clear, are you saying don't use the phrase "PAT testing" at all? The cogs are turning in my head about this and I'm starting to warm to the idea.
If you are thinking of this as a business, you could steal a mark on your competitors by using the right terminology. Not all electrical appliances are portable.

Have you read the H&S guidance on this subject?
 
Here is my tuppence worth...
Yes, there is a different business model other than "per unit", but everything depends upon your target customer.
I do PAT testing (ugghh!)
PA Testing...
ISITEE, the correct term...but I accept that most of MY target group will understand PAT Testing, so that label does have a place, despite its inaccuracy.

My target group is private landlords and small, local offices and businesses. This dictates my business model, as does the fact that I do not have to make a living out of it.

I get work from local estate agents who deal with rental properties. They have loads of "electricians" who do this stuff for them, because the tenancy agreement requires some form of certification that appropriate checks have been carried out to show that appliances in a rental property are safe for use...and most are happy that a "PAT test schedule" satisfies that requirement. ( I would mention that I am in Scotland, so there are different requirements here for the PRS-private rental sector).

My model is a simple charge for the inspection and testing, regardless of number of items. Why?
Because very few rentals have more than 20 items, some have 6, some have 30, but a fixed price quote evens everything out over time, and provides security of a fixed price for the landlord.

As for small businesses and offices, I usually have a quick look-see first, but still use a fixed price structure. Like my price? I'll do the job. Don't like? No problem, get a sticker jockey in. Those who are only concerned with price are those who are less concerned with safety and only want a piece of paper...these people are not my target.

My target group don't need/want digitally produced inventories, automatic emails, all that clever stuff...they want a list of tested items and a pass or fail. Anything more, I am likely to decline. There are many reasons for this, but that's a whole different topic.

Thus, as I said earlier, it's a question of choosing your customer group, and sticking to it. They know what you provide, you deliver, they pay, and job done. If you try to do absolutely all types of customers' works, you will end up with stuff you don't want. if you stick to your niche, all goes well and you sleep at night knowing you have done the right job.

Two points i would add:

1. If you won't test "fixed" items, you may find yourself out on a limb. For example, let's say you are testing a B&B. In bedroom 1 there is a wall-mounted heater, plugged into a socket. Easy job, plug it in, pass or fail. However, in bedroom 2 is an identical heater, but wired into a FCU. Do you refuse to test that one? In my view, you ought to have both the equipment and the knowledge to test that one too, else you are not providing the service that the customer requires. Nobody wants a list of stuff that is marked "Could not test". That is not really of much use to the often inexperienced customer...after all, he is hoping you will be his "one-stop" shop for all his "appliances". You won't get repeat business from him, or the introducer, because you didn't test stuff.

2. There can often be items that need replacement. For example, on FVI you find a 13A fuse in an item that should have a 3A or 5A fuse (that's another story, ok?). Do you charge for that replacement fuse? Of course not...not on a fixed price structure.
Does an ancient appliance with a "rogue plug" on it get failed because of that? No, of course not...not on a fixed price structure. If the L and N pins have no insulation, you put on a new plug...end of. Then, when you leave the venue, you have inspected, tested and fixed where appropriate, and the customer is happy. No need for further work, no need for disclaimers...writing a disclaimer takes more time that changing a plug or fuse, and a customer wants his job done and dusted. By all means write a disclaimer for matters where there really is no option, but don't fudge the issue because of a minor remedial matter which can be taken care of for a few pence.

The OP asked if there is another business model apart from "per item". I submit that there is. The above works for me, but I fully accept it will not work for everyone.
However, my attitude to risk, and my view of what is a proper service, means that I am always confident that the job I have done is complete, accurate and safe, for a fair price, with no comeback...and plenty of repeat business.

If you want to make a living out of ISITEE, good luck!
If you want a sideline which can lead to other work, go for it, do a proper job, and reap the longer term benefits.
 
Is it not PA testing other wise you are saying portable appliance testing testing :) .Any way it would be great if you could charge a day rate for testing as charging per item just encourages the "put as many stickers on as you can " but unfortunately in this world a lot of customer are not interested in safety they just want a report saying all there stuff is safe for as cheap as possible. But saying that it could be a good idea running it along side your other business as non profit making exercise build up a good customer relationships. Then slowly building up your prices . I suppose the trick is convincing the customer that is worth paying more to have the job done properly.
 
Everyone calls it PAT testing.

The only person I ever heard call it anything else was an up his own rear letting agent who took great delight in correcting my terminology. To be fair though he was a pompous git and I don't think he could help himself.

If you don't call it PAT testing your customers won't know what on earth you are talking about.
 
Everyone calls it PAT testing.

The only person I ever heard call it anything else was an up his own rear letting agent who took great delight in correcting my terminology. To be fair though he was a pompous git and I don't think he could help himself.

If you don't call it PAT testing your customers won't know what on earth you are talking about. Then your customer don't know their business.
What ever floats yer boat Mate
 
Everyone calls it PAT testing.

The only person I ever heard call it anything else was an up his own rear letting agent who took great delight in correcting my terminology. To be fair though he was a pompous git and I don't think he could help himself.

If you don't call it PAT testing your customers won't know what on earth you are talking about.
You just need to educate your customers. Otherwise we can call bonding earthing, or earthing bonding. Then there’s r1 or R2, or amps or a or A or Kw or kW.
 
If you are thinking of this as a business, you could steal a mark on your competitors by using the right terminology. Not all electrical appliances are portable.

Have you read the H&S guidance on this subject?

The more I think about it, the more I like the idea.

Note: While studying for my 2377-22, I read Scaddon (4th. edition) on this topic, who in his Preface states the following [p.vii]:

"All electrical equipments connected to the fixed wiring of an installation will need attention, not just portable appliances. I have, however, left the title of this book as PAT: Portable Appliance Testing as such words are now indelibly imprinted on our minds, even though it should read 'Inspection and Testing of In-Service Electrical Equipment'. PAT means an appliance tester that is portable, not a tester just for portable appliances!!".
 
I think you're right to refer to it as PAT testing, but I would educate each customer on the actual correct term and also the background of why we test and/or inspect
 
The more I think about it, the more I like the idea.

Note: While studying for my 2377-22, I read Scaddon (4th. edition) on this topic, who in his Preface states the following [p.vii]:

"All electrical equipments connected to the fixed wiring of an installation will need attention, not just portable appliances. I have, however, left the title of this book as PAT: Portable Appliance Testing as such words are now indelibly imprinted on our minds, even though it should read 'Inspection and Testing of In-Service Electrical Equipment'. PAT means an appliance tester that is portable, not a tester just for portable appliances!!".
Just read H&S guidance, before you tell your customers they need PAT ISITEE testing.
 

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