Every business wants to maximize profits and minimize expenses. However, sometimes a business takes the wrong approach to reduce costs by only going with service providers that charge the least for services. Take signage, for example. As a business, you need good signage for your company. You also have a budget and you want to get the most out of your signage budget. You get bids from sign makers, and you are trying to decide whom you want to hire to make your signs. You get a bid that is particularly low, and you are tempted to choose that company to save some money. However, there are many dangers of choosing a sign company with the lowest bid without considering anything else. Before you make your decision, consider the information below.

Lack of Experience

Sometimes a start-up signage business will offer a low bid just to get the job. Your sign is supposed to represent your company. Would you really want a sign company with little experience to make your sign? Also, a sign company needs to have high-quality equipment in order to produce signs that are top-quality. A start-up business usually does not have the capital to get the best equipment just yet. So, there’s a chance that your signs might be produced on lower-end equipment. The lesson here is that you need to look at the background and experience of the sign company. If the company is relatively new, proceed with caution, or just walk away.

The Company Only Provides One Type of Sign

Maybe the sign company can charge very little because they do not offer much customization. They have standard templates and standard materials that they use for their clients’ signs, and they can do it cheaply. You might save money, but you probably will not get the best sign that represents your brand image. If you want a particular type of lettering or some unique decorations, you might not get them. You also might not have much say in the size of your sign. If you are satisfied with just your average sign that looks like everyone else’s because you can get it cheaply, consider what you might be sacrificing in terms of your brand image and customer appeal. You will be doing your business a favor by choosing something better.

Unlicensed, Uninsured, and No Knowledge of Permits

Depending on what kind of sign you want, you might need to get a permit. You probably don’t have any knowledge of that, but a reputable sign company should, and they are responsible for helping you with applying for the permit. If you want a sign that lights up, that also requires the sign company to have the right licensure to do electrical work. Your low-bidder probably will not have these credentials. When you use a service that is unlicensed, and probably not even insured, you take a lot of risks. If anything goes wrong with the electrical sign, you will be at fault for using an unlicensed service that offered you no guarantees. It is best not to put you or your business at risk just to save some money.

The Work Is Actually Outsourced

Let’s suppose you met with the company that offered you the lowest bid, and you liked what they are telling you. You sign a contract and wait for work to begin. To your dismay, the company calls you days later saying that there is a delay. They have a staffing shortage, they have problems with getting materials, and so forth. Then, you find out that the company actually does not have their own employees to do the work, but they sub-contract it. They outsource all the work and rely on whomever they can get. So, you actually will not know who will be making your sign or what kind of quality you will be getting. You paid minimal for the sign, so chances are you will get very low-quality results. Therefore, before you decide to accept this low bid and sign on the dotted line, do some background checking to see how the sign company operates.

The Bottomline: Avoid the Low Bids

As you can see, if you just go with the lowest bid, you expose your business to many risks and disadvantages that might cost you more money down the road. Avoid these pitfalls by selecting a reputable and experienced sign company right from the start. Do your research for the best sign company in your local area. Check for reviews from former clients. You will get a competitive bid for the full service that you will receive. Plus, a high-quality sign company will always stand by its work. If you are not happy, they will make it right. When you find a sign company that fits your needs, you will form a lasting partnership with a company that will help you bring out the best in your brand image.