how does the "little guy" compete

[ontsigngirl]

I'm just at the beginning of starting my own business. Today I was looking at some of my "competition" I've got to say I'm a little freaked out.

My questions: can the little guy hold his own in this business and economy.
How do you stand out from the crowd?

Thoughts anyone?

 

[signmeup]

I do hand carved stuff. The average shop around here can't do that. It helps me sell regular cut vinyl and printed signs because I am percieved as a "craftsman".

 

[J Hill Designs]

http://www.signs101.com/forums/showthread.php?threadid=70836

 

[petesign]

Provide a quality product at a reasonable price. What can separate you from your competition is a good clean design and well put together products. A lot of people out there are hacks who will put out a crappy looking sign, or a poor product that doesn't perform over time like it should. It will take you some time, I hope you haven't planned on making any money for two years.. but if you put your best into it, people will notice and your customers will all become repeat customers, and even generate you referrals.

If you go in and lower your prices so far just to get their business you wont last.. you'll end up giving everything away and eventually burn out... or end up making a terrible product that gets you a bad reputation.

Good luck.

 

[Pat Whatley]

If you're doing the same thing as the established shops you won't be able to compete. The chances of you surviving long enough to build up clientele are slim to none. If you don't already have the skill set to compete you're in for a long, painful learning curve before you're proficient enough to start peeling accounts away from your competitors.

You've got to do something different. Offer products they don't offer, market yourself differently than they do to go after a different market share, do better design work or offer outstanding service, whatever you've got to do to make yourself a better option for people to spend money with.

If you can't do anything different your only other option is to compete on price. If you go down that path you've already lost. You'd be better off finding a job with less competition.

 

[OneUpTenn]

Well said Pat!

 

[Rick]

Why are you freaked out?... Does your "competition" design better than you?, Faster than you? More established?

I had to read your intro to get where you are coming from. With 20 years of design and pre-press experience, you have way more experience than the majority of start-up sign companies.

DISCLAIMER
>I have not seen your work though... there was some blunderbuss a while back who was spouting off his 20 years of design skills and could not design himself out of a bag so I am a little hesitant in giving you a free pass on that..<

From what I understand, being a little guy has an advantage in this type of economic climate. As long as you planned it out well and do not over buy on equipment. Your experience is your strength, you are gonna stand out from the majority sign shops if you have good design skills and understand the process.

I think you have a lot less to worry about than the majority of sign shop start ups... plus you have the added benefit of offering services using your other skills.

 

[jiarby]

anyone can make a cheap sign and plenty of them do... so it is hard to compete unless you have a big bankroll and can buy in bulk quantities to get lower pricing on materials.

Competing on price is a losing battle that you cannot win in the long run. There is ALWAYS going to be someone cheaper. Find a niche, and get great at it. Focus your business until you nail it, then grow and expand into other markets & products. You can't do everything out of the gate. It may take you 20 years to build up to where your "competition" is. What you don't know is that it took them 20 years to get there too!

Alot of guys think they can buy a 24inch "kitty-cutter" for $250 on eBay and then be "in the sign business".... nope, it takes more if you are going to compete.

You also need big expensive machines:
4x8 CNC
Flat bed UV printer
Large Format Solvent Printer
Laminator
Commercial sewing machine
Vinyl cutter
Endless small hand tools
Maybe a welder
Metal fabrication tools
Panel Saw
Table Saw
Chop/Miter Saw
Air compressor
Paint Sprayer
Maybe Paint Booth/Room
Ventilation system
Materials supply storage shelving
Truck Door - Install bay
Design Computers & Software
RIP computer & RIP!
Various small printers
Point of Sale computer/Cash Register
Accounting Software
Estimating Software
Maybe a sublimation printer
Heat press
Maybe an engraver (Laser? Rotary? Both?) for ADA work
Corner Rounder
Edge Beveler
Raster Braille System
Braille Translation Software
Maybe a screen press (graphics & flat stock, aparrel, or BOTH)
Screen storage Rack
Drying Racks
Exposure Unit
Washout Booth
Chemical Storage
Power Washer
Truck? Van? Lift Truck?
Scissor Lift?
Ladders




The good news....

Accumulating all this gear IS THE EASY PART. It just takes money. Any chimp can beg, borrow, steal, or earn some dough and buy all kinds of stuff.





THEN..... the hard part/ AND the part that will allow you to "compete"





You need to get good at using all that stuff.

 

[Gino]

Let's do this backwards for a moment.........

• Why did YOU get into the business and what made you think you could do it ??
• Did you think you had something these other people didn't have or lacked in offering ??
• Do you have a desire in your stomach that these others don't have anymore ??
• Do you find yourself an ambitious person or expect to have things drop in your lap ??
• Do you have a strategy as to how... and to stop your competition from blowing you out of the water ??

The main ingredient everyone forgets about is..... YOU are now the new competition and they need to move you out before you settle in and become established. You see, they aren't your competition, because technically, you don't even exist until you start making a dent in their sales.

Either make your presence known and start with some killer promotions or keep your self so low, they don't notice you while you create a reputation. However, that reputation is up to you as to how you handle yourself and adjust to this business in this economy.... and then work along side of your new found competition and survive. Don't view them as the enemy, or you'll go down quickly.

 

[James Burke]

Here's the way I heard it put...it's the three stages of business maturity:

-First, you fear the competition

-Next, you ARE the competition

-Lastly, you no longer fear the competition (but keep an eye on them) because that's when you get your opportunity to differentiate and stand out from all the rest.

Jim

 

[Mosh]

I owe NO money to anyone, no car, house, equipment payments so I can charge way less than any shop in the area. I have in fact ran several shops out with my low pricing, then when they are gone I raise the prices back up to normal.

 

[petesign]

I owe NO money to anyone, no car, house, equipment payments so I can charge way less than any shop in the area. I have in fact ran several shops out with my low pricing, then when they are gone I raise the prices back up to normal.

I sure am happy you aren't near me.. surprised nobody has burned your building down yet, lol.

 

[AUTO-FX]

Wow, Mosh, you're like a freakin' shark or something! hahaha

For cryin' out loud Jiarby, she doesnt need all that equipment!

Just pick a few things, do them REALLY WELL, and at reasonable prices ( do not low ball) and network your *ss off. It'll take a while, and you might have to work a second job for a while, but you'll slowly build up a following. Quite often, one job done really well leads to another, and another.

 

[Dave Drane]

Welcome from Down-Under!

 

[btropical.com]

Look though the big guys dumpsters

 

[AUTO-FX]

Look though the big guys dumpsters

that's funny!
for what, may i ask?

 

[btropical.com]

his suppliers boxes , whats he using , beer cans for recycling ect

 

[Morgeaux]

Find a niche and capitalize on it. If you cannot compete on equipment, price, experience, client lists, etc, what can you do to make customers want to work with you? Great designs are a fantastic way to differentiate yourself, but consider using non-traditional ways to advertise (Twitter specials, Facebook contests, etc). Figure out what your unique selling proposition is and go from there. And stay away from eBay--prices that some people are asking for some basic products are just criminal and will freak you out. Those people don't last and they certainly don't have repeat business!

 

[sdimmick]

Excellant Customer Service being personable and honesty have gotten me some work from others in the area....trust me, im the small guy too.

 

[Embosstek]

In Real Estate it is Location, Location, Location...

In the 25 years that I have been producing signs and graphics, for me it has been Service, Service, Service and Quality, Quality, Quality!!

I have advertised very, very little over the years and really only ever had business cards until they ran out, but I didn't care because my referral business was more than enough to keep me busy. I built a reputation of the two qualities that I mentioned above.

Here are a few things I did to separate myself when starting AND to this day...
1) I, PERSONALLY, deliver every job I sell to the customers door within 20 miles without a delivery fee. (obviously, if they are out of your county or beyond this isn't feasible) This just blows people away and almost always gets them talking about or even requesting something else = repeat business!
2) If there is ever an issue with the sign, label, decal, nameplate, etc., I show up at their door to assist in figuring out the problem. It may be an employee issue or seldom a material problem. Either way it is a "we will take care of it now" attitude.
3) I NEVER deliver JUNK. If you make a sign, I don't care how little or much you are charging, never send it out full of bubbles, slits, wrinkles, etc. This will put you in what I call the "Fast Food" Sign Shop category - It is a bang-it out concept. This is not where you want to be, unless you want to spit out corrugated signs all day.
4) Don't cut corners on materials if it could jeopardize a customer relationship. Intermediate vinyls and materials have their place, but using them for the purpose of being "cheaper" than the competition is a dangerous path to take unless the customer knows upfront.

Maybe to "dip" your toes, you might start a relationship with a signmaker a little bit out of your main area and purchase vinyl and signs wholesale to get started before investing in equipment and also to see if you have what it takes to be an OntSignGirl!!

These are just some things that work for me, the others here have some great advice also.