Q: If I’m a decorator that offers solely wearables, is there a way to calculate whether adding promotional products or personalized gift to my offerings will be profitable, or if it’s more practical to contract out such items?
Adding Promotional Products or Personalized Gifts
A: In my opinion, it is always best to start with contracting the work out to someone who is set-up to create those items. With any new market of technique we take on, there is a learning curve and certain things you just can’t know going into it. I would work with a reputable contractor first, learn from them what is needed, and get as much detail as you can first. This also allows you the opportunity to get a real picture of what the market is the promotional products or any other market you want to explore. While on the surface it may seem like you can make more money doing things yourself, there are certain costs and pitfalls, you just can’t quantify. For example, what is it going to cost you to figure out how to make a certain item in the form of man hours, wasted product, and lost opportunities? How about inventory and carrying costs? What about dead inventory and then the cost to your core business because you have diverted your focus to this new venture. By working with a contract service provider, you can still build these new market and grow into the equipment needed.
Use a contract to grow into a new market, let the profits from that relationship pay for the new equipment needed, or realize, you are better sticking with your strengths and continuing to contract it out.
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