Here’s a common story. See if you recognize it . . .

A sign shop is not meeting profit expectations. So what is the first thing the owner does? Looks for more sales and cuts costs, right? And what is the obvious cost-cutting target? Material costs. But that is most often not a solution. It may look like a solution but it could result in a bigger problem than already exists.

Cutting material costs usually means buying poorer quality materials which brings with it the risk of poorer quality output. And poorer quality output is not going to improve sales. So, rather than focusing on cutting material costs and risking lower quality output, look at overheads for savings, look for improved efficiency in operations, look for price increase opportunities, and look for an additional market area.

Never cut quality; it’s false economy.