Outsourcing Work When Crazy Busy?

[Derekaztec]

I would believe its ok to outsource for things you cannot do inhouse, but not for things you are capable to do just because your to busy to do them.
Raising your prices will slow your production work a little but you will make more that way then scraping the pennies off the floor
of potential botched jobs by 3rd parties. Which you reputation could be liable for. But that is my opinion. Now with that said I am a new to the
decal and sign industry so my methods may not roll over from the machining world.

Ok, time to rip my post apart... Popcorn any one

 

[visual800]

I would believe its ok to outsource for things you cannot do inhouse, but not for things you are capable to do just because your to busy to do them.

Gotta disagree with this, the business is feast or famine and always has been. Sometimes it needs to be done. Your other suggestions of raising prices is a great move at this time and the MOST important thing I can say is DO NOT get yourself in a bind and agree to outlandish deadlines. Say No! or give them another deadline. 95% of deadlines are made up BS by the customer to pull a power punch

I have a pretty good relationship with other sign companies in this town, 2 in particular that I can turn to and "ask" if they would do a job get paid for it and stay silent so I still get credit and stay good with that company. I have done the same for them in the past. Of course all printing is outsourced and I have no desire to own a printer.

 

[kcollinsdesign]

I outsource as much as I can. Design, illustration, hand lettering, hand carving, gold leaf work and some vinyl production work is handled in-house. Most commercial installations are handled in house, most large electrical installations are bid out.

Without the expensive overhead of printers, laminators, routers, paint booths, and specialized fabrication equipment (and the overhead and payroll that goes along with that), we retain excellent profits with reduced liability. We use companies with state-of-the-art equipment that far surpasses anything I could reasonably afford, plus these same companies have much more efficient production lines from purchasing and inventory through fabrication and shipping. Profit for us is much higher outsourcing than attempting to fabricate in-house.

When asked, we proudly point out that we out-source from highly qualified suppliers. We explain to the client that this is how we are able to offer a higher quality product at a very competitive price. My competition goes to great lengths to point out that we do not make many of the signs we sell, and I sincerely appreciate them for that. It helps the client to understand how we can offer such high quality products at such reasonable prices. I think that being open and honest about what we do and embracing efficient production options and logistics is part of what distinguishes our company.

I view most production as a commodity. What I look for in a production partner is consistent quality, on time delivery, and reasonable pricing. Most of our outsourcing choices are not based on cost alone, but a combination of those three attributes together with positive relationships and shared vision. The prices of most signs and installations are fairly sorted out, with only small variables. The value of the design, however, is subject to negotiation. I often charge much more for design work than the actual sign. A lot of our profits come from our design, programming, and project management expertise.