Bumping Heads w/ the Internet

[Locals Find!]

I'd recommend against this approach--great if it's working for you but your "needs" as a person shouldn't have anything to do with your pricing structure. Pricing should be based on market conditions, costs, etc. not your "needs". If someone gave me that speech about kids to feed I'd walk away, guilting people into sales isn't a great way to build a trusted brand.

That said, never undercut your minimum margin. Stick to your guns, anyone who would go for the "cheapest possible" is probably a client you don't want anyway.

I want to say I am NOT quilting my customers into anything I am explaining to them politely the consequences of there actions. Most people don't understand the economics of constantly lowering prices and a low wage work force. I simply explain it to them in terms they can understand.

As far as my needs shouldn't be part of pricing I disagree. Pricing is all about needs. Needs to grow the business, need to pay yourself a salary, need to pay others a salary/commission check. IF you take out needs of the individual out of any business you end up with nothing. Prime example Communist Russia. We all see how that worked out so well when the Needs of the individual were removed.

 

[JAMEY]

"Online sign shops fund terrorists"

Awesome

 

[signswi]

I want to say I am NOT quilting my customers into anything I am explaining to them politely the consequences of there actions. Most people don't understand the economics of constantly lowering prices and a low wage work force. I simply explain it to them in terms they can understand.

As far as my needs shouldn't be part of pricing I disagree. Pricing is all about needs. Needs to grow the business, need to pay yourself a salary, need to pay others a salary/commission check. IF you take out needs of the individual out of any business you end up with nothing. Prime example Communist Russia. We all see how that worked out so well when the Needs of the individual were removed.

Communist Russia? What on earth are you talking about. Market conditions set pricing. If you can't bring home what you need to bring home because your profit isn't high enough, you need to sell more or change market conditions (increase demand via marketing, etc.)--you can't simply charge more just because you need more. If you could, all that means is you were under-charging your market in the first place.

Also "explaining the consequences" is extremely patronizing, that's a second signal that I'd walk away from you as a customer. Educating the client is a big part of this job but doing it in the framework of "I need to feed my family" is irrelevant. Frame it in the needs of the customer and why they should pay more (superior product, better support, etc.).

 

[Edserv]

Only 2 short years ago, our company, Lets Go Banners, attempted to be number one on Google for "vinyl banners." We got to number three and quickly abandoned this goal. We quickly realized that certain products were becoming "commoditized" and abandoned wide internet search terms for these products. We still sell a lot of banners, but it's not our main focus any more (even though we're called "Lets Go Banners.") We (as a plan) are not interested in commodity items. But having this goal or attitude will not provide you with any solutions. The secret or "trick" in my opinion, is becoming a leader in the industry, not a follower.

For us, this meant going into other product lines that were "ahead of the curve." We diversified our product line and carved-out 20+ products that we provide that are not easily turned into a commodity. If you don't know what I mean by commodity, just Google it.

We're staying completely busy with growing our niche products and services, and we now stay completely focused on introducing products and services that will (hopefully) not be "cost-depleted" with assembly line procedures- here or abroad.

I can give you a few examples: We specialize in wall murals, car wraps, and fundraisers. You may not make the connection with fundraising, but that's ok, it's kind of our trade secret. And there are probably hundreds of other niche markets that you've never dreamed of yet. Trust me, with the equipment you possess, you can make tons of products needed and wanted by local businesses and consumers.

 

[Locals Find!]

Selling commodities is always going to be a better business model for long term stability.Fads such as wraps, murals etc.. is not a good model to base a business on for long term stability. Fads fade over time. What do you do with all your equipment and materials when the fad fades?? You either have to create a new one or hopefully jump on the next bandwagon.

Products become commodities because, they are in constant demand. Much like water and food and housing are commodities. You can't survive without a commodity. I would rather sell commodities every day of the week and have a stable income for my family than to sell a Fad that will make money only short term.

Anyone remember the "Baby on Board" signs?? http://www.awesome80s.com/Awesome80s/Culture/Fads/Baby_on_Board.asp

 

[signsandsuch]

Just had a guy pick up 50 H wires, he got 100 coro signs yellow/2 colors,2 sided for 2.80 including wires. The wires are shipped saperately and have not arrived for 2 wks.

 

[binki]

If our price is higher I tell them to buy it there. If our price is lower I offer to raise our price.

I do warn them about the quality they might recieve online and offer to do it right once they get a product they are not satisfied with at my quoted price.

 

[visual800]

tv station called me and wanted one of those cheap pop up canopies with their logos on all 4 sides. I quoted $950. I found a guy that could sell me the tent and graphics for $450, not bad. I priced is a little low just to show some love to a new customer.

The person that called me was a sales chick. All of a sudden I quote price the GM had to get involved and he said he can get tent on internet for $150...I asked did this include graphics? He said no but he was sure it was not that much more expensive. I told him to order it, Im not gonna dicker with some prick GM over $400 and something dollars. Sales chick called back 3 days later and ordered the tent AND we added another $150 for a overnight fee cause the GM decided to order his own and fiound out just how much extra printing was on thos canopies, Guess my price wasnt so bad after all

 

[kage]

I tell them to order it online quick before the shop goes out of business, we rarely get those type here...but thats what i like to tell them.
Another thing I noticed about those type of peeps is after I suggest they get the cheap stuff online.. they will order from me instead...You dont get if you dont ask (they had to ask). Maybe some shops will drop their price to match...not me.
I know screenprinters in the big cities that print at really low prices..they have the big equipment and the staff to pump this stuff out... its sad to see the product fail tho'.

oh, i also like to tell them that if they look harder they can find even cheaper...lol...probably more evenings online just to save a few more $$s

 

[ALLAMERICANSIGNS]

I had a neighbor who hit me with the pricing from a well known internet provider that was mentioned earlier in the thread. I chose not to compete. He got the coro sign back and put one on his front lawn. I saw the sign after our discussion and the sign looks horrible. Useless clipart took up half of the sign and the 6 lines of text are virtually unreadable. Although I have several options where to walk my dog, I go past his house when he is working in the yard. The first time I squinted at the sign that was about 6 ft from the sidewalk and asked him - "what does the sign say?" He got p****ed and said - "could you have done better?" I simply said "Yep".. and walked away. He now goes in the house everytime I walk by and squint at the sign...Some people learn the hard way...like one of the other posters said - they're a printing service, not a sign shop - you offer value as in giving them a readable product that works - not a piece of crap that sits on their lawn and is unreadable...dont bang heads with the internet, have confidence in what you bring to the table.