How do you price your signs?
How do you price the signs for your sign shop? What variables do you use to make sure you are making the proper amount of profit? Do you just use sign pricing software and not worry about the details? Do you KNOW how much profit you need to make in order to, not only stay in business, but also make it worthwhile to continue?
When it comes to estimating a custom sign project there are many different variables and pricing methods to consider. The pricing theories range from a “gut feeling” to “time & materials formulas” all the way up to in-depth analysis of sign company overhead, materials, labor, profit margins and perceived value.
BUT… none of these methods will do you much good unless you know what your true costs of doing business are. To be truly profitable, a sign business needs to know it’s expenses…
Fixed expenses (overhead): These are things you pay for even if you never sell a sign (ouch). Think of how much do you pay each month in rent, insurance, electric, phone & internet, loans & leases (vehicles, cash advances, equipment), labor, benefits etc.
Variable expenses: These are items that are directly related to producing whatever signs you make. Think of your materials, substrates, vinyl, ink, laminates, install hardware, subcontracted products etc.
So, as you begin to really get a handle on YOUR sign business (and how profitable you want to be) I have begun adding some very simple sign price calculators to TheSignExpert.com in order to help.
Here is a list of the calculators that are available and a couple that I am currently working on…