How Do You Find Out What Your Area Competitors Are Charging?

[equippaint]

What do you ask your competition when calling to check prices?

How much will it cost to make a Calvin sticker peeing on Ginos head? Sharpen your pencil cuz if the price is right Ill buy a second one for my wifes car. I need it this afternoon too. The guy down the road told me $5, buy 1 get one free, it seems high.

 

[Jburns]

LOL!! I almost started crying while laughing at the above post! "Sharpen your pencil..."

 

[WildWestDesigns]

If everyone else is quoting lower grade materials and cheap cheap prices, with no art charges, then it is going to be a tough go if I quote the best materials with art charges.

I'm not exactly sure an over the phone quote is going to get you all the info that you are going to need. You might get an average quote and if your lucky, you might get an average quote for good, better, best, but even then, you may or may not get material numbers etc to let you know exactly what they are using for those quotes. In my experience, to get that info, it's usually a written quote with all that info written down and there is an appearance that your more serious about the project then just the initial phone call asking for a quote.

Now, the big stick in the mud is assuming that they know their numbers as well. I've seen people quote cheap on really good materials. They don't want to lose the job, they assume that having the machine running period is better then not having it running at all. Or are they able to quote cheaper because they are more efficient or have better purchasing power, both or something else?

Knowing the price of everyone is good to know, but it only goes so far.

If it's price, price, price and nothing but price, price, price, then you are definitely placating to a commodity market and those customers will only be happy as long as their pocketbook is happy. Regardless of anything else. That's a market run on the thinnest of margins with the highest degree of efficiency.

So anytime someone needs to raise a price it's slimy? No one likes paying more but it's a fact of life that stuff increases in cost... a fact most people understand.

And a lot of people still question it. It's as if they want to make sure there is an up and up reason for why the price hike. Even on here. So while most people may understand it, they still want to make sure nothing slimy is going on in the background and the price hike is on the up and up.

 

[Texas_Signmaker]

I'm not exactly sure an over the phone quote is going to get you all the info that you are going to need. You might get an average quote and if your lucky, you might get an average quote for good, better, best, but even then, you may or may not get material numbers etc to let you know exactly what they are using for those quotes. In my experience, to get that info, it's usually a written quote with all that info written down and there is an appearance that your more serious about the project then just the initial phone call asking for a quote.

Now, the big stick in the mud is assuming that they know their numbers as well. I've seen people quote cheap on really good materials. They don't want to lose the job, they assume that having the machine running period is better then not having it running at all. Or are they able to quote cheaper because they are more efficient or have better purchasing power, both or something else?

Knowing the price of everyone is good to know, but it only goes so far.

If it's price, price, price and nothing but price, price, price, then you are definitely placating to a commodity market and those customers will only be happy as long as their pocketbook is happy. Regardless of anything else. That's a market run on the thinnest of margins with the highest degree of efficiency.




And a lot of people still question it. It's as if they want to make sure there is an up and up reason for why the price hike. Even on here. So while most people may understand it, they still want to make sure nothing slimy is going on in the background and the price hike is on the up and up.

I think too many here are too worried about raising their prices. There is a 40 year sign veteran in my town that is well respected in the sign world and he has by FAR the lowest prices of anyone. I don't think he's adjusted in 20 years and it makes everyone else look high. It also makes him look bad when he can't get to a bid for a month.

You may loose customers raising prices but that's the point, shed the lower profit work.

 

[Gino]

It's sorta easy to figure out when a competitor is calling and looking for information. Besides, with all the caller IDs available, you'll proably get caught. When a call comes in with blocked or private caller, I approach it differently. Sometimes I just give bad information on purpose, ya know..... too high or too low.

 

[WildWestDesigns]

I think too many here are too worried about raising their prices. There is a 40 year sign veteran in my town that is well respected in the sign world and he has by FAR the lowest prices of anyone. I don't think he's adjusted in 20 years and it makes everyone else look high. It also makes him look bad when he can't get to a bid for a month.

You may loose customers raising prices but that's the point, shed the lower profit work.

That really wasn't what I was getting at. I don't have a problem with raising prices, my costs go up, so does the cost of my output. My comment, atleast the one to your previous comment, was more about how people, that may understand about price increases, want to ask why you are going up in your price. Even though, they still may use you, they want to make sure that you are going up in price for the "right" reasons. It's even done on here, where people that should be more aware of this type of thing, their initial thought is that there is some slimy underhanded reason for it.

That makes it seem like anytime someone raises prices, that they are being slimy about it and the only way to know for sure is to question it.

Besides, with all the caller IDs available, you'll proably get caught. When a call comes in with blocked or private caller, I approach it differently.

Welcome to the wonderful world of VoIP calling. Some, if not all, VoIP providers allow for Caller ID configuration by the user. I once got a call at my house from "my house". While that's an obvious "do not answer", it just shows that info can be "spoofed" at least enough to bypass the lay person's checking.

 

[Texas_Signmaker]

That really wasn't what I was getting at. I don't have a problem with raising prices, my costs go up, so does the cost of my output. My comment, atleast the one to your previous comment, was more about how people, that may understand about price increases, want to ask why you are going up in your price. Even though, they still may use you, they want to make sure that you are going up in price for the "right" reasons. It's even done on here, where people that should be more aware of this type of thing, their initial thought is that there is some slimy underhanded reason for it.

That makes it seem like anytime someone raises prices, that they are being slimy about it and the only way to know for sure is to question it.



Welcome to the wonderful world of VoIP calling. Some, if not all, VoIP providers allow for Caller ID configuration by the user. I once got a call at my house from "my house". While that's an obvious "do not answer", it just shows that info can be "spoofed" at least enough to bypass the lay person's checking.

What would your response be?

 

[WildWestDesigns]

What would your response be?

If a supplier of mine increased prices? Their price is their price. I either use them or I don't as production inputs tend to be more commodity items to me. Yes, some may be sourced better then others, but for the most part, they are a commodity item. I'll have 3 or 4 different vendors that sell the same fabric, so really, the biggest difference is price. They aren't adding much value on top of that, if they are adding more value on top of that, that adds another variable.

I do try to be aware of concerns that may affect their prices (the various issues that would affect supply/demand), so I can try to be ahead of the game when it comes to price hikes. I try to determine if it's better for me to buy more at the lower price of something I know I can use quite a bit of and have a much slower rise to a higher price etc, so it's not as sudden for my customers.

 

[HulkSmash]

Yikes. Who cares what others charge? Figure out your overheads, and costs, and make a pricing structure that you are comfortable with and will help your business grow

 

[Billct2]

I care what others charge, I want to know the market. Some jobs are public multiple bids, so I get to see where everyone was. If customers are obviously shopping i will ask them if i don't get the bid. I haven't done it in a long time, but secret shoppers is an effective method too.

 

[bob]

What others might charge is a factor in your pricing in what way? You charge whatever it is you charge based on your expenses and your needs, if that turns someone off then most likely they'll object to whatever realistic price you might quote. If you land every quote you're quoting too low.

I have a friend that owns a mini mart and gas station. Every morning he drives by the local competitors to see what they're charging per gallon. He then adjusts his fuel prices to be a bit lower. One can only wonder what would happen if his competitors did the same thing. In his case he really doesn't care what he charges for fuel, he wants to get them into the store. The point being that unless you own a mini mart connected to your sign shop, this strategy is probably a Bad Idea.

 

[Billct2]

Maybe I'm leaving money on the table, or maybe I should just stop bidding certain products because the market doesn't support what I need to get.
Maybe I'm just curious to see what other places get. The idea that the local market should have no affect on your price is ridiculous. We don't live and work in a vacuum.
Investigating competitors and the market are basic practices in most businesses.

 

[Texas_Signmaker]

Maybe I'm leaving money on the table, or maybe I should just stop bidding certain products because the market doesn't support what I need to get.
Maybe I'm just curious to see what other places get. The idea that the local market should have no affect on your price is ridiculous. We don't live and work in a vacuum.
Investigating competitors and the market are basic practices in most businesses.

100% true. Amazing how other business owners here don't realize this too.

 

[Gino]

So, if you 3 neighboring competitors had cranes, buckets, drillers and a complete fabrication department, ran 2 and maybe even 3 shifts from time to time..... you're gonna compare your rate to them ?? Does that mean if their price to the consumer for them to make such & such sign is $2,500.00 and your price would've been $950.00.... you now feel like not leaving money on the table and going in at $2,120.00 is a fair deal for the customer, you'd be Okay with that ?? By calling around you found yourself to still the lowest.

 

[ColorCrest]

I really need to get a handle on the local market pricing. How do you find out? I don't want to start calling myself and pretend to be a customer. Should I hire someone to do that for me?

I asked Siri early on when this question was posted. It actually kind-a-sort-a worked.

 

[player]

So, if you 3 neighboring competitors had cranes, buckets, drillers and a complete fabrication department, ran 2 and maybe even 3 shifts from time to time..... you're gonna compare your rate to them ?? Does that mean if their price to the consumer for them to make such & such sign is $2,500.00 and your price would've been $950.00.... you now feel like not leaving money on the table and going in at $2,120.00 is a fair deal for the customer, you'd be Okay with that ?? By calling around you found yourself to still the lowest.

Yes.

 

[Billct2]

Gino, haven't you berated people for having a "garage" shop mentality when it comes to pricing? "I have no overhead so I can charge less."?
I don't spend time checking prices, but with your scenario, I'd love to make an extra $1k on a project once in a while. And why wouldn't the customer be happy, they saved money and got the same product. But that is a pretty fanciful comparison, rarely are prices that different. I compete against shops like that and we win some and lose some, so our pricing is in the same ballpark.

 

[TimToad]

Uber does it, airlines do it, gas stations, hotels, movie theaters, apartments...lots of industries do it. If people are demanding more service then I can provide, then I give myself a raise. If I start to slow down then I lower the prices to win more bids.

I think most of you have charged a "rush" fee before...that's a basic and simple example of dynamic demand pricing.

https://en.wikipedia.org/wiki/Dynamic_pricing

I was just joking about it, but if it works for you and your low end and high end combined fall within your overhead requirements, its all good.

 

[Rick]

I tend to agree with Gino and others about worrying about your overhead and pricing accordingly BUT...

Who here can't make 4' x 8's, logo designs, magnets, sandwich boards... this is basic chit. Are you doing this all week long? Do you offer anything unique? If basic promotional signage is all you do than what makes you different than the rest of the crowd?

If all you do is basic promotional signage, then I think you kinda have to call around and get prices, then start working on making your shop different, better, become the expert, add more services, otherwise your just another quirky, sticky, sign shop....

 

[Gino]

Gino, haven't you berated people for having a "garage" shop mentality when it comes to pricing? "I have no overhead so I can charge less."?
I don't spend time checking prices, but with your scenario, I'd love to make an extra $1k on a project once in a while. And why wouldn't the customer be happy, they saved money and got the same product. But that is a pretty fanciful comparison, rarely are prices that different. I compete against shops like that and we win some and lose some, so our pricing is in the same ballpark.

Yes and no.

I've always been firm on charging what you need to get to keep your doors open, feed yur employees and have a nice well oiled machine running. We're all in it, to make money and put some away, too.

However, if the shop next door is fabricating everything in-house, has a much higher overhead and set of costs to do business and charges out at $2,500.00 while for you to do the same item is $950.00..... and you have everything figured in and might have one or two middlemen in there helping you, but you were willing to accept $950.00 Why go all the way up to $21,120.00 when you don't need to at all ??

Because your overhead doesn't exist..... how does that equate to more than doubling your needs ?? I could see adding an extra hundred or two, but not 200%. However, if that's how you like it, then more power to ya. It just doesn't sound like a very fair way to play.