Outsourcing prices - is it better to buy equipment or outsource production?

[organetic]

We're studying the option of acquiring our own equipment for production or outsourcing production to someone that expertises on printing services for resseling purposes.

The problem is that we don't have an idea on resseling prices.
How much can a banner or printed vinyl cost per sqm, on average?

 

[tylercrum]

 

[allamericantrade]

Price around your local market for prices. I outsource as little as possible. My customers like knowing I am the manufacturer and not some evil greedy middle man. A good reputation is required for constructing a good clientel base. If they feel their work was outsourced they will price around and try to cut you out. There is plenty of online cheap competition out there and you will not be able to meet the prices offered. Not to mention the pride felt by doing a great job and working on creating something from beginning to end.

 

[Pat Whatley]

Your profile says you've got Mimaki JV5-320, Mimaki JV3-250SPF, Colorspan 98UVX, Agfa Anapurna XL2w, SUN Evolution. What in the heck are you looking at subbing out?


I very respectfully disagree. We all run our businesses differently, I choose to outsource as much as possible. My customers don't know the difference so they don't have reason to care. Doing it in house or subbing it out does nothing for my reputation. Customers who are going to outsource will do it regardless of local availability. I can sub banners out, never touch them, and sell them retail cheaper than anyone in town....and still have a higher profit margin on them....I just don't. I've got one local shop that has their own printers but they still send their bulk banner order to me (and I sub them out). The pride of doing a job from beginning to end is all relative. I don't consider hitting the PRINT button to be a real important part of the job for me.

I ordered 10 different sets of yard signs yesterday. My total time investment was a little under three hours of layout time....my production time? ZERO. There are companies out there with millions invested in making it cheap for me to sub work out to them so I can maximize profits. I'm glad to support them in that endeavor.

Outsourcing CAN BE a great way to do business, especially if you develop the right kind of relationship with the right suppliers and focus on outsourcing things you can buy ready to go cheaper than you can produce them in-house.

 

[allamericantrade]

I can understand your point but I do more than just printing. I enjoy working with my hands and creating things. I like the production end of it. I can see outsourcing some things like I said I do outsource. It isn't my primary thing to do. I have a production set up for fabricating light boxes, channel letters, and various other projects outside of the printing realm. That was more of my building and seeing it through feeling. I am looking to invest in a CNC machine next to further my capabilities. I am also thinking of aquiring a flatbed printer as well for an alternative to vinyle application. I have more head aches in the pushing print area than any other area in my shop. Some days it does take me hours to bring the printer on line and print a correct test print so I can start printing. Unfortunatly its not billable time. I can't tell the customer I have to charge them more because of printer issues that day and thats when I totally see outsourcing as a possibility. I have a lot of customers who want something in the now and outsourcing will not work all the time for me. I can usually have a job complete same day if needed and can't outsource that kind of time frame. I've finished job's for certain cliants in less than an hour at times when it was needed. I charged them well for the service as not too many other shops near me can compete with their demand.

Basically there are many pro's and con's both ways and you could do it either or. It's a matter of how you decide to structure your business. Starting off it may be in your best interest to outsource and you can always decide later to invest into inhouse production or not.

 

[HulkSmash]

Portugal and north america industry im sure is much different.