Originally Posted by
A_Camera
That is certainly not as simple as you put it...
I am doing just that, small scale production, so this is my experience.
I started with the same idea, outsourcing initially, but because EVERYONE must earn his share, it is in fact very expensive for small scale production. If the volumes are very high then it is the opposite, it may be cheaper to outsource than buying new, expensive machinery, rent work shop area and employ people.
So after initially outsourcing and making zero profit, I quickly realized this and because of the pretty poor quality, yet fairly expensive CNC machines available in the lower price range, I decided to design build my own. That was the way to go, but if I had to get a machine quickly or was not capable to make one then I'd buy the best I can could afford, even if the price hurts initially. One reason is that there is no point in buying something you already from the start know is not good just because it is cheap. It will only result in a machine which will not be used and you'd need to buy a new one anyway, so the result is that you pay twice. Learning on good machines is easier because you LEARN and not trying to figure out who is doing something wrong, the machine or you.
But of course, if somebody is just making a prototype or some very small series and is never going to use the CNC again then outsourcing is the way to go. However, my philosophy worked out quite well for me... but it does not necessarily true for everyone.
Another reason why I outsourced initially, knowing I will not make money, is that I wanted to test the business idea of my product. It proved better than expected, so for me, there was no question about which is better, outsourcing or making my own parts. I am still doing this small scale, small volume production and it works just fine. If I'd need to make it into a large scale business I'd definitely look for another solution, which would be outsourcing.