Outsourcing question for vinyl cutting

[ddrummer88 2]

hi all.  i have an odd question, 

 

if you are starting a sign business, t-shirt business, or any side/full-time business where you will be using decals, what do you guys think is a more viable and sustainable business model:

 

1. - buy all your own equipment, learn the software and market yourself?

 

- OR - 

 

2. - outsource all your cutting needs to a cut store and then use the decals for whatever your venture is?

 

i know it depends on quite a few factors but let's assume you have someone who knows how to operate the software and equipment if you're going the "on your own" route.

 

i'm not sure the long-term costs of continually purchasing your own vinyl roles and machinery upgrades/maintenance, that's why i'm posing this question.

 

any feedback is appreciated! 

 

fyi working off mac and have posted same question in mac discussion forum.

[MZ SKEETER 4,708]

Own your equipment and vinyl if you have the room...You can start with a middle value cutter,  and get your money back quite easily and upgrade to a better cutter with a servo motor,,  A lot of people have gotten their money back with a first order.......Why would you want to keep outsourcing?    That person has to make a profit..  I only do vinyl graphics....and I own everything..

[101LEDs 100]

It all comes down to the numbers game. How much does outsourcing the items cost for the quantity you need? If the quantity is low and you are happy with the profit margin you earn stay with it and focus on quality since there is no rush to cut the next batch.

 

If you need high volume, at what point does the discount stop? They can only go so low. But if you need quantity, do you have time to cut what is is needed and still get your other work done without compromise?

 

I bought a cutter because we couldn't get any lower of a price on our decals that are sent with every order. What I spent up front in tools and materials be recouped making our own decals in about 3-3.5 months. And then it's saving us money every month after that and has the ability to earn more. 

[Cal 393]

I wanted to do the outsourcing method.  Unfortunately (or fortunately, perhaps) doing small quantities of any new design to see if they would sell made it impossible to cash flow.  Even when I offered a ready to cut eps no one in my area would do anything for less than $20, whether I wanted 1 or 20, unweeded no less.

So, I have my own machine now and only cut what I need when I need.

Cal

[pshawny 410]

I have a cousin with a very successful sign/graphics company. They outsource all of their screenprinting. Do what you want/can in-house and outsource the rest.

[knucklehead 530]

I've had a couple guys/gals ask about the same thing almost. Wanted to basically pay for the cost of the vinyl. Not even the retail price, wanted 'wholesale' price, whatever that is? I guess, because they have an Ebay, or Etsy store, they're entitled to a 'wholesale' price for their materials.