When I started my company in 2005, the economy was booming, and I had ample companies that needed my services. There also wasn’t much competition, and the companies I worked with were buried with work that their departments couldn’t handle. Then in 2008/09, we all know what happened; the economy tanked. I lost 4 of my clients because they had to close their shops, and others had a significant slowdown in work.
Since then, I have come up against a much more competitive market of outsource drafting companies. The competition is great, and I welcome it. It has led to many improvements at CaseDraft, LLC. But at the same time, it has brought some bad apples to the industry. My pricing has hardly changed since 2005, and I know it is very competitive, but sometimes I come across pricing that doesn’t even make sense from a business perspective. The reason for this is that the former employee who isn’t running a business and wants some side work will likely just bid it at his hourly wage, which doesn’t cover the cost of a business. They also are possibly running an illegal version of AutoCAD or other design software, so software costs are $0, or maybe even using the current company’s resources he works for to do the work! (yes, this has actually happened).
Unfortunately, many times the bottom number is all people look for, but when you are up against this type of competition, I feel that some education on the industry could help. Here are 7 tips to consider when evaluating who to go with.
1.) Find out how long they have been in business.
The first thing to look for in an outsourcing company is the years they have been in business. This matters because there are many factors you learn to work with as an outsourcing company; not everyone has the same standards and construction methods. You also want to make sure they are an actual business.
2.) Make sure they have a legal & valid copy of AutoCAD and other software they use.
Software piracy is pretty rampant these days, and Autodesk has a team of people dedicated to finding out who is doing it. If they can’t answer this question, it might mean that they aren’t a reputable company. To me, this can speak to the integrity of the person or business. Profiting by using stolen software is just a bad way to do business.
3.) Are they a one-man show, or do they have other draftsmen?
Many CAD outsource companies are one-man operations. This isn’t bad, it’s how I started, but do they have associates or employees they can use if they get behind or backed up? Another thing to ensure is that this is their full-time job and not a weekend job they do after their full-time job, as this could seriously affect your lead times and reliability. I have many stories of clients who have been put in bad situations because of this.
4.) Have they done work in your specific area of woodworking?
This is VERY important to know as some of the smaller companies might only have experience in residential cabinetry or doors and windows. Ask for specific sample drawings of your primary work if they don’t have them in their samples. If they can’t provide them, I would stay away.
5.) Are they from the woodwork industry?
This may sound like a surprising question to ask, but the fact is that many outsource companies out there are CAD farms that have absolutely zero knowledge about cabinets and millwork. They will draw anything and have a crew of people doing it. I have seen their drawings, and they are BAD. Ask the salesperson you talk to about their history in the industry to find out if they know their stuff. Do they know what the AWI, WI, and NAAWS are? Also, be wary of overseas outsourcing firms; although cheap, the lack of industry experience and the language barrier can be a headache.
6.) Are pre-submittal revisions included?
At CaseDraft, we always allow you to review and send back the shop drawings before you submit them to ensure you get exactly what you want; even if you want massive changes, it’s all included in our fixed price. Many firms out there will charge you for changes. They figure they know best for your company and the drawings they gave you are perfect – I’ve seen it. Make sure you find out in detail what type of revisions are included.
7.) Stay away from hourly quotes and “estimates.”
In outsourcing, always get a fixed price on the drawings, and ensure they include a scope of work in their proposal outlining that price and exactly what’s included. Hourly charges will add up quickly, and if they don’t know how long it will take or how much it will be, that is a good red flag to stay away. At Casedraft, we always provide a fixed price and clear scope of work, so everyone is on the same page from the start. No one likes surprises.
I will close out with a story on going with the lowest price:
It was early on in my outsourcing company, and I bid on a job to a company. I called to follow up, and the owner said I was quite a bit higher than another company. I told him to contact me if he had any problems. About 3 weeks later, I got a call from him asking me to bid on another job, he went on to tell me that he should have gone with me, and that job was a disaster as far as drawings and timeline, his in-house CAD guy had to redo it all. After that, I did many jobs for that company at my price.
The fact is that the price isn’t the only factor to consider when choosing an outsourcing company; experience, quality, and reliability are critical.