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 whatyour 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.

Calculators

Aluminum Sign Calculator
Coroplast Sign Calculator
Magnetic Sign Calculator
Ready to Apply Vinyl Graphics Calculator
Sandblasted Cedar Sign Calculator
(Sintra) PVC Sign Calculator
Vehicle Wrap Calculator
Vinyl Banner Calculator
Wood Sign Calculator
(3M ControlTac) Digital Print Calculator
Vehicle Wrap Calculator