APE July 2023 | Page 16

FEATURE ket that service to prospective clients who want that service ,” stated Roberts . “ However , a properly run pavement marking a division in your company can operate at very high margins , and it should be considered if the company can support self-performing . There is a risk to self-performing a new service , as there is expenses and learning curves associated with it that will slow down profitability at first .” Estrada offered his perspective on the plusses of self-performing striping and pavement marking : “ By doing it yourself , you ’ re able to control every aspect of the project from start to finish . You ’ re also the ‘ face ’ of the expert service being provided , and the customer won ’ t ever forget that . But the flip side is that everything falls on you , whether it be positive or negative . Also , God forbid , if the project doesn ’ t go well , you will lose resources such as time and effort and there ’ s a good chance you might lose your customer .”
Estrada continued with his pros and cons of using a subcontractor . “ The big pro is that it frees your team up to take care of other projects . Using a trusted sub-contractor grows not only a bond between two companies , but allows you to provide services that ’ s out of your menu of services . Of course , the con is you ’ ll need to answer for any mistakes and liability or quality issues .” In terms of a good summary of the perspectives of doing it yourself or farming it out when it comes to line striping , pavement marking , and stencil tasks , Roberts said : “ Pavement marking is a niche service , and therefore , can be done at high-profit margins . It is not uncommon for striping companies to have gross profit margins well above 50 % for every project when they self-perform . Subcontracting it out will undoubtedly reduce the profitability , but when managed properly , can be an effective revenue and profit stream .”
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