by ksporry » Sat Aug 01, 2009 11:32 am
If 2 frames per month is your output, I'm not so sure about cost effectiveness. You will be redecorating a bedroom, buy framing and mounting tools, materials, etc
You need to calculate all this if you want to do it properly. List the costs for setting up your "production room". Get some quotes/guestimations for getting mounts/frames, and list the prices for materials and tools you will need.
You will most likely find that redecorating a bedroom into a production facility, plus tools, is really not that cheap. In addition, you may find that with you output, material costs will be relatively high since quantity is fairly small.
I found that making my own mounts just isn't worth it when Ikea lives in the same city. Sounds corny, but it's true! Though fairly expensive at 10GBP, I love their mounts for 50x70 frames (the mounts come with posters fitted), and I haven't been able to source the materials myself yet. However, standard mounting board is also not cheap at about 5-7 GBP for a 50x70 sheet from the local art shop. In addition, the Ikea ones are 2x as thick, and have a lovely colour and texture to them (in my opinion of course), plus they are pre-cut.
You may want to have a chat with a local gallery, or mounter/framer. You might be able to strike up a deal in exchange for regular guaranteed purchases over a period of time.
If you list that all up you can calculate how long it takes before your investments will pay off. You would need to take into consideration any growth of your business of course.
For this you would have to look back at how much you have sold over the past 2 - 5 years, and to what extend sales have grown since.
When you calculate in growth/expansion of your business, you may find that at some point it will become worth doing it all yourself, and on further expansion, it becomes more profitable to outsource again.
Don't forget that you also have to calculate in time for your work to mount and frame. Time is money so you definitely need to consider this.
In short:
Calculate the costs for outsourcing based on your short term predicted sales.
Calulate the costs for investments, plus costs for materials and time for your short term predictions.
Compare the two and estimate how long it would take before your investments will pay off.
Do the same for medium term sales, taking the same costs into consideration but assuming a growth in business.
Then decide if you think its worth it.
Also consider potential changes in your personal life (job changes, family expansion, relocation, etc), as they may heavily affect the availability of that spare room, or cash to make all those investments.
Good luck!