If we had to sell banners that cheap.... I'd put a stop to doing banners, altogether. We get 3 times what you're getting and we're still competitive. We probably do 20 or 30 banners a week for end-users.
Recently, we just did 2pcs. 4' x 8' banners, 1-sided and got almost $25, a square foot. They liked them so much..... they ordered two more, plus some banner ups set-ups with banners.
Doing this stuff for the prices you mentioned is just plain ludicrous. Your prices are only too high if you are comparing banner to banner with the other shop. If the quality, craftsmanship and service are the same, then don't compete with a lowballer. Let
him get all of the banner business
he can get..... and let
him go out of business when at the end of the month
he can't pay anything except for more banner material and possibly some ink, but has nothing towards overhead, profit and more supplies.