Why Outsource?
You are enjoying some success and feeling good about the direction of your business, but you are running short of
Time – there just isn’t enough in the day and you can’t do it all.
Time for your family and personal life: who is in the shop late in the evenings and on weekends getting things done?
Space – you need more space for work underway, materials, scrap, machines and people
Your business is just taking off and you do not want to risk it all with heavy new investments in machinery, dust collection, electrical systems, or buildings
Cabinet boxes are a commodity, essential but low margin and not often special – there is a higher ROI on custom parts of your work and you need to concentrate on those elements – doors, dovetailed drawers, custom trim and moldings, special features, and even installation
You need enough time to run the business other than making sawdust – while the boxes are being built, you have more opportunities for marketing, meetings with customers and other personal contacts, managing the books and paying the bills, managing and training employees, field measurement and designs
Outsourcing lets you take on more volume, which translates to more cash flow, more profit and more flexibility to take on new jobs. You buy only what you sell.
Success brings more demand for your products and you need more capacity FAST!
You want to take on more good paying work without major changes in your business
Outsourcing is, in effect, subcontracting or partnering with an extension of your business
Why not outsource? There are reasons, such as giving up a degree of control – which means you must truly trust your outsource partner to do work the way you want it done, and to be ready to move quickly if there is a problem, damage, etc.
Pride – you are proud of your work. But how special are standard boxes, when there may well be more reward in the finished products that truly highlight your special skills, such as special designs, custom trim, moldings, doors, drawer fronts and exposed panels, and truly custom cabinets?
Shipping or freight costs are a concern. But you always pay them one way or the other – either from your outsource supplier or to your hardware and material vendors, where it is not visible but build into their pricing to you. Also, freight may well be less than you imagine and, if you can pick up your products at the source, you can avoid that extra freight charge altogether.
Your outsource supplier is, in effect, your partner and an extension of your business – which is an important mutual relationship. You need to find one that meets your standards of quality and dependability – if they don’t measure up, you need to move on. A good one will work hard to help you out and meet those high standards – their business depends on your satisfaction.
