online prices / digital pricing

[thinksigns]

Some background, when I first started in this industry, the owner chewed out another employee that made a copy of the banner pricing page in the price book and gave it to a customer that was checking prices. That seemed crazy to me and it still does. From the first day on my own, I would hand out catalogs with prices and right now our website has our prices on it. I figure it helps by weeding out the customers that go solely by the cheapest price and it leaves us with the ones that appreciate better design and customer service.

Which brings me to my main point. When we move into our new location in about 3 weeks, we are also getting our first digital printer. My original thought was to just list prices by substrate for unlaminated prints. Then just a per sqft upcharge for lamination. Should I even give the customer the option of cut vinyl for their sign? I'm worried about my existing customers that are used to paying one price and that price is about to go up. For those that have recently made that transition, can you give me some advice?

 

[Locals Find!]

Some background, when I first started in this industry, the owner chewed out another employee that made a copy of the banner pricing page in the price book and gave it to a customer that was checking prices. That seemed crazy to me and it still does. From the first day on my own, I would hand out catalogs with prices and right now our website has our prices on it. I figure it helps by weeding out the customers that go solely by the cheapest price and it leaves us with the ones that appreciate better design and customer service.

Which brings me to my main point. When we move into our new location in about 3 weeks, we are also getting our first digital printer. My original thought was to just list prices by substrate for unlaminated prints. Then just a per sqft upcharge for lamination. Should I even give the customer the option of cut vinyl for their sign? I'm worried about my existing customers that are used to paying one price and that price is about to go up. For those that have recently made that transition, can you give me some advice?

The only prices you should be posting are for products that you generate regularly like coroplast signs or some other retail items that you produce regularly.

Why would you take away vinyl as an option? It still has its uses for budget reasons on certain products. Don't limit yourself or your customers.

Also, existing customers are not going to want to see huge price increases. Ease em up slowly. I recently raised my prices and it shocked a lot of customers. I lost a few in the process. I started giving those existing customers a discount on the new prices and explained to them that they would be going up in the future and why. Let them adjust. Working out much better than when I just gave them the new price and it was 40% higher.

 

[Pat Whatley]

The problem I've always found with posting prices is it eliminates the opportunity to explain to the customer why your prices are higher (if they are) and doesn't give you to opportunity to make suggestions on products that would better fit their need.

 

[jiarby]

If a customer comes to me from a franchise shop that is charging $10-12/sqft then I offer $8-9 and look like a bargain. If I showed him a price sheet I may have left money on the table.

If he comes in and says the guy down the road will do it for $x.xx then I can decide if I want to match or not... with a price sheet I would have not gotten the opportunity to still get the job if they thought the price was too high on my website. Then maybe I can get him for an art charge, or maybe he needs business cards and a magnet in addition to his el-cheapo "NOW OPEN" banner.

I am with the old owner... advertising pricing only causes you to LOSE customers. Your competition can use that info to just underbid you. The customer can look at it and decide you are too pricey and never call you at all.

The price sheet and website do not make the sale.... YOU DO! You can profile and close the customer alot better than a spreadsheet or a pdf can!

So much of what we do is custom work. Pricing for 100pcs is different than for 5 pcs. The same print on various substrates can vary wildly. The customer does not know what they need. You need to talk to them to determine what is best for their needs.

Don't sell substrates... Sell solutions to your customers problems.

 

[skyhigh]

The problem I've always found with posting prices is it eliminates the opportunity to explain to the customer why your prices are higher (if they are) and doesn't give you to opportunity to make suggestions on products that would better fit their need.

I'm 100% with Pat on this one.
If anything, I would post prices of a couple generic products as a teaser.

 

[thinksigns]

I always felt that keeping prices hidden just created an adversarial relationship and that wouldn't be good for keeping customers for the long term. My theory was that if I was a customer, I would trust a company more if their prices were out in the open.

However, y'all make excellent points for not advertising them. I purposely don't take orders online and have a "design your own sign" section of the website because I want them to call or come by. It is starting to make more sense for me to take the prices off the website. I have a lot of thinking to do and not much time to do it.

 

[jiarby]

I would post prices of a couple generic products as a teaser.

This is a good tip!

We use vehicle magnets and 1-color screen printed coro signs for this... It attracts the moths to the lights. Even though they came in for the "24 signs for $99" special... they then discover that gets you 24x 1-color, single sided, no stake, text only, 4mm 12x18 coro signs.

Then you can add-on, or upsell to increase your profit. (2 or 3 colors screened signs, printed logo, double sided, wire stakes, digital mags versus cut vinyl, art charges/setup, lamination, etc..)

It is all about profiling the customer.

Before you can profile them you have to get them in the door or on the phone. Advertising pricing elimates a reason for the customer to contact you and you lose the opportunity to profile them, find out WHY they want signs, what problem they hope to solve, what they think they can pay, and then guide them into the best solution.

I would trust a company more if their prices were out in the open.

That may be true if you are buying a static commodity like a can of green beans... BUT... we sell custom products. A sign can be on dozens of substrates (banner, coro, MDO, AlumaLite, Steel, etc...), using lots of different technologies (solvent printed, engraved, screen printed, UV direct, cut vinyl, hand painted, etc...). Plus the variable of # of color, art & set up fees, quantities. It would be difficult to create an easily understandable price sheet to accomodate any eventuality.

PLUS... the customer doesn't know the difference between 10mm coro, MDO, Omega, Alumalite, Dibond, Sintra... You have to listen to the customer to determine where they will be using the sign, what environmental conditions it has to endure, what longevity is needed, how it will be installed (another opportunity to make money for you).

I find that rather than seeming distrustful to the customer this approach to pricing makes me look like an expert to them and it seems like I have their best interest in mind. Budget is always important... but it is rarely the only consideration. People do not like wasting money on an ineffective product that doesn't meet their needs. Your job is to help them figure that out.

If someone calls you asking for a quote for a specific product and uses trade names such as "4x8 Dibond sign with 751, 3 colors" it is probably a competitor price shopping rather than a legitimate customer!

Catch them by getting good at asking profiling questions!
"When do you need it?"
"How will you hang it?"
"Do you have a permit already?"
"What is the name of your business?"
"Where are you located?"
"What is installed there now?"
"Will you need installation hardware?"
"How long do you need it to last?"
"Will you ever need to change the copy, or advertise changing specials?"
"How many units do you need"
"What file format is your art in?"
"Do you have other sign products that you use (A-frames, Storefront Vinyl/Paint, Vehicle graphics, Coro Signs, Business Cards, Brochures, Bumper Stickers, Engraved signs, etc..)

There are a million of them. You can't ask them on a price sheet or webpage.