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17025 accreditation: cost benefit

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Guest user Created:   Mar 08, 2021 Last commented:   Mar 09, 2021

17025 accreditation: cost benefit

What about higher income for 17025 accredited Cal's compared to non-accredited?  
I am trying to justify accreditation to an electrical test equipment rental company. They have not been needing accreditation for most customers, who are small electrical test companies. Occasionally, they have to pass when government customers need accredited cals. 
Do you happen to have a rough % of additional price that a lab can charge for an accredited calibration, compared to just a straight commercial cal with NIST traceability?
Just a rough estimate would be great.

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ISO 17025 DOCUMENTATION TOOLKIT

Step-by-step implementation for smaller companies.

ISO 17025 DOCUMENTATION TOOLKIT

Step-by-step implementation for smaller companies.

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Tracey Evans Mar 09, 2021

You asked

What about higher income for 17025 accredited Cal's compared to non-accredited?  Do you happen to have a rough % of additional price that a lab can charge for an accredited calibration, compared to just a straight commercial cal with NIST traceability?

Pricing all depends on your sector, market (competition) and regulations. I cannot provide an idea of a price increase. What I can offer is some advise on how to proceed towards a decision to implement ISO 17025 and seek accreditation. Typically, to secure more business and a higher price, it will involve “selling” the added benefit to customers - the assurance of consistent, reliable results. If accredited, it is not just the word of the laboratory, but that of the accreditation body that provides the client with additional confidence. Providing a calibration with NIST traceability alone does not provide assurance that only competent personnel perform the calibration, and that all the other technical requirements are met.

Accreditation is often mandatory for calibration laboratories; however, if it is not; to help make the decision,  I suggest that the laboratory obtain a quote from their accreditation body and estimate the total cost of obtaining and maintaining accreditation each year. Then do a risk /opportunities analysis. Look at the financial risks and benefits. Consider first, the current income and number of calibrations, and what you would need to increase the price by, to just recover your additional costs. Then consider the reputational opportunity (benefit) - whether you may gain (or retain) customers. Another benefit to consider is reduced costs due to improved efficiency and fewer repeats. This may lead, for example, to an opportunity to increase the number of calibrations performed monthly. Then look at the rates charged by competitors.

Financial management for the organisation should be able to assist with a model to decide whether the additional cost of accreditation could be recovered, from a financial perspective. Then by effectively implementing and maintaining the system, cost savings and further income should be realized.

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Mar 08, 2021

Mar 09, 2021