By Mark Wallis
Many sign shops have found great success and control on their projects by owning their installation equipment.
Today, it seems everyone is pivoting their businesses to become a turnkey solution. If one cannot fully complete a project internally, they are forced to outsource, subcontract, rent (machines), or hire more staff. This poses a problem for many as they do not have the equipment or resources to support their workload internally.
When it comes to deciding on subcontractors, rental equipment, or outsourcing tasks and/or responsibilities, there are a variety of pros and cons sign shops must consider.
Subcontractors
Con: Can become expensive if problems occur during installation, fabrication, etc.
Con: More work is potentially required to ensure the quality meets the businesses’ standards.
Con: Unpredictable timelines. If the project is not a priority to the subcontractor, they may delay an install, which can not only become stressful for the client, but also a sign shop’s scheduling team.
Pro: No increase on the company’s payroll.
Pro: If it is a subcontractor-related issue, warranty work should not be a cost incurred by the sign shop.
Pro: Pricing can be quoted into the job so there are no surprises.
By having greater control over its products, sign shops take pride in the fact a large percentage of their work is produced directly by their skilled staff and operating equipment.
Rental equipment
Con: Expensive one-time fee.
Con: Potentially unreliable, i.e. damaged by previous renter and not caught by rental company, causing hours of lost time to replace.
Con: Dangerous, most rental companies will let customers rent any type of equipment even without proper experience. This can be very dangerous for unskilled employees who ‘think they can handle it.’
Con: Rentals extending past their intended pick-up time can become costly (if a problem occurs and the unit is needed for more than what was costed.)
Pro: No maintenance costs.
Pro: Free return if there is an issue with
the equipment.
Pro: No storage needed for the equipment.
Pro: Pickup, drop-off, and rental can be accurately priced to a client.
