Knowing how to price your work in the signage or wrap industry is a tough business. There is no one way to answer this question. However, I’m going to try to explain the best practice. If you’re just starting out in this business, be mindful that pricing is not based on how you feel. Pricing is based on many more factors; such as time, material cost, years of experience and manpower. Don’t forget your overhead to run your business. Some people in the wrap and Signage industry go by square footage or hourly rate. There really is no set formula when it comes to pricing, just make sure you’re making a profit, for you and your organization.
Doing research and market analysis will help you better understand pricing or how to price in this industry. Be sure to note that prices are a little higher or lower depending on the region you live in. Also note that experience plays a big role in how you price. Be creative with your price points, never let your current situation or where you are currently located dictate how you price your services are products. My philosophy is price is not dictated by what everyone else is charging, but how well you know your client. Knowing what your clients’ problems are, are the key factors in determining Whether you get the sale or not. You must ask probing questions to get the client talking and make sure you can meet their needs. Don’t just think about the sale, think about what you can do to make your client’s experience meaningful enough to do business with you and not someone else. Focus on your target audience, if you want your client base to be high end, then project your services or products to be of high quality and deliver. Find out what separates you from your competitors in your market and do what they are not doing.
Create a niche within the signage and wrap industry for your company, find out if anybody else is doing what you are trying to do. Once you can determine this, you can create or find a demand for your service or product. You can charge according to your skill or niche. Remember there is no one size fits all when it comes to determining what to charge your clients. Knowing how to price in the signage and wrap industry is part art and part science. You’ll have to decipher what a reasonable price for a particular job will cost. For example, if a client ask that you install 20, 5’x7’ oomph boards and 40, 3” x 4” stand offs, installation only. How would you price this? Will you use the square footage method or the hourly rate method or a combination of both? There are many situations like this that can make calculating a price difficult. Understanding and being knowledgeable about materials, production and the different substrates that these materials will be applied to will help you determine the best price to charge for.
Years before all the technical advancements it would have been years before anyone would have acquired this knowledge. Technology has made it so easy for us to achieve so much in so little time; however, it can be a bit overwhelming. There are so many apps and gadgets to choose from. How do you know which one to pick? Trial and error, pick the simplest master it, as your needs grow choose another tool. Now there are tools to help you without even being knowledgeable about the product. Click on the two links below let them be a guide to help you on your journey.
- Use a square footage calculator, determine the width and Height and your price per square feet. Use calculator soup: Square Footage Calculator (calculatorsoup.com) This is my go-to calculator when I just want to give a fast and reliable quote. This is just one of many examples out there so do a little research. Note: All materials are not created equal, and the difficulty of installation will play a big part in what price to charge.
- Hourly rate/shop rate: go here you will thank me later, SignCraft Magazine most of the features are free. Be sure to sign up for this website, it is a great resource for all things signage.
As you navigate the treacherous waters of pricing in the signage and wrap industry, be sure to focus on solving problems, meet the needs of your clients, price is less of a factor if you are determined to help your clients. As business owners and as contractors we tend to be so consumed with the bottom line and how much money we can get out of our clients. We let industry standards dictate what our needs are and what the needs of the clients should be. You should know more about what your needs are and what your clients’ needs are better than anyone else. You set the standards for your organization. Be of service, guide your clients, give them the experience that they will not get from anyone else.
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