Question pricing

[Geneva Olson]

I seem to always be curious about pricing. I just want to make sure I'm priced right in my market....Trying to stay abreast pricing in the area. I know the generalities in the area, but I'm curious. Does anyone else use this website? http://thesignexpert.com

Is it fairly accurate? I kind of use it as a gauge at times and sometimes I'm off A LOT and other times Im in the same ballpark.
Just curious more than anything else.

 

[Johnny Best]

It is good to use for reference.

 

[FireSprint.com]

Another thing you could do is use our website and double or triple the prices for a general rule of thumb. Even if you don't buy from us.

https://www.firesprint.com

In any case, these tools are all a starting point. Pricing is about 50% science, 50% art of the market.

 

[Christian @ 2CT Media]

I seem to always be curious about pricing. I just want to make sure I'm priced right in my market....Trying to stay abreast pricing in the area. I know the generalities in the area, but I'm curious. Does anyone else use this website? http://thesignexpert.com

Is it fairly accurate? I kind of use it as a gauge at times and sometimes I'm off A LOT and other times Im in the same ballpark.
Just curious more than anything else.

I recommend starting to build your own pricing structure. It should be factual cost-based with market bearance in mind. It's a dynamic thing that is continuously in change. Relying on others pricing methods will lead to your experience. So use their method for a basis and then redevelop it to suite you.

 

[Geneva Olson]

Another thing you could do is use our website and double or triple the prices for a general rule of thumb. Even if you don't buy from us.

https://www.firesprint.com

In any case, these tools are all a starting point. Pricing is about 50% science, 50% art of the market.

Thanks,
I just signed up.

 

[Geneva Olson]

I recommend starting to build your own pricing structure. It should be factual cost-based with market bearance in mind. It's a dynamic thing that is continuously in change. Relying on others pricing methods will lead to your experience. So use their method for a basis and then redevelop it to suite you.

I have a pricing structure in place that is based on my overhead and costs. I just moved into a new location and it is in the heart of an area so I am getting a lot more business and requests for more items that I haven't had requested before. It looks like you are saying the same thing I said in my original post. I am constantly looking at pricing. I want to make sure I gather as much business as I can get. I am building accounts and it seems like I am doing it correctly. I have a pricelist that I am constantly revising and checking and double checking. Especially as I gather accounts.

 

[Jeremiah]

The information you search for comes from your experience. Are you the owner? Is this your first business? If 23 people from a chat site told you to charge 1.00 per letter and .50 per number, would you believe them ? If a person was born yesterday would they still take everything they were told as truth or better yet would they do what Everyone tells them ? Just a simple fatherly talk . There are not enough life rafts on the boat.

 

[Gino]

I think there was something nice in that one.

Like he said, you need to get what you need to keep your doors open, not what some guy down the street needs or some wholesaler, even if you put it up 2 or 3 times your cost. That's based entirely on what he needs to get to keep his doors open. Is he reasonable..... I tend to think so, but that does not equate to keeping YOUR doors open. Also, as mentioned, use other numbers as a guide, but not as your own.

If you have $XX amount into a job, does that include your rent, gas, electric, phone bill, insurance, tools you've bought over the years, toilet paper, paper towels, waste, mistakes, time talking to various people, time to look things up to prep for the job...... but most of all, does it include your time spent here ??

When you're comparing the going rate, are the others using high speed flatbeds, fancy laminating machines, do they have a second, third or numerous sets of hands helping ?? Do they have quality air controlled environments, many trucks to keep busy, lotsa employees....... ?? Everyone's outcome is gonna be different.

 

[Billct2]

I agree, it's part art and part science. I think the art part is more about pushing the limits ala Si Allen's "The highest price you can say without laughing" and the science part is knowing how low you can go before it's a loser.

 

[Skeezix]

I seem to always be curious about pricing. I just want to make sure I'm priced right in my market....Trying to stay abreast pricing in the area. I know the generalities in the area, but I'm curious. Does anyone else use this website? http://thesignexpert.com

Is it fairly accurate? I kind of use it as a gauge at times and sometimes I'm off A LOT and other times Im in the same ballpark.
Just curious more than anything else.

Hello.... I use the Sign Craft magazine pricing tool to get a gut check. Key is to know your overhead. Down to the cost of Xacto blades - all consumables with true landed costs.
Its a hassle to set up but doing a monthly review takes a minute and if you don't use a Quickbooks you can make a simple Google Sheet or excel to track the slight changes that you may see.

Use a Budget Template and fix it a bit.

12 months fixed costs are easy enough - consumables, fuel, power, standard vinyl that you stock ( you can compare supply houses and bands ).

Bottom line is know your overhead, be active in that and you should know the cost to produce - then you can quote what the job will be worth to you to do knowing the customer's budget.

 

[Gino]

I agree, it's part art and part science. I think the art part is more about pushing the limits ala Si Allen's "The highest price you can say without laughing" and the science part is knowing how low you can go before it's a loser.

Yeah, then he said........ and if the customer didn't blink or fall over, you'd say..... plus installation.

 

[Jeremiah]

Is there anyone who remembers before computers, before electric typewriters, only pencil and paper. Oh and school classes like economics? When High School tried to prepare you for the real world. Then It got much deeper in college. It didnt matter anymore after that because the business formula was stuck in your brain. I still drive my wife crazy when I say " give me a paper and pencil" .

 

[Christian @ 2CT Media]

Computers allow you to build that formula and alter variables to keep current. I still do my base math on paper, but once I build a structure I love the ease of forms and spreadsheets.

 

[Geneva Olson]

Hello.... I use the Sign Craft magazine pricing tool to get a gut check. Key is to know your overhead. Down to the cost of Xacto blades - all consumables with true landed costs.
Its a hassle to set up but doing a monthly review takes a minute and if you don't use a Quickbooks you can make a simple Google Sheet or excel to track the slight changes that you may see.

Use a Budget Template and fix it a bit.

12 months fixed costs are easy enough - consumables, fuel, power, standard vinyl that you stock ( you can compare supply houses and bands ).

Bottom line is know your overhead, be active in that and you should know the cost to produce - then you can quote what the job will be worth to you to do knowing the customer's budget.

I honestly think you've answered my question the best. I've got pricing in the area, I know what my overhead costs are. I'm building and g

I agree, it's part art and part science. I think the art part is more about pushing the limits ala Si Allen's "The highest price you can say without laughing" and the science part is knowing how low you can go before it's a loser.

I am doing all of these things. This IS my first business. I've been doing it a couple of years and have inched my way up. I retired from teaching. And because I have that teaching background, I am constantly researching. I ask a lot of questions from customers about what they want and some eat up the questions and others want to know why I need to ask so many questions. I ask EVERYONE questions. It's all information that I use to gauge pricing, the market, how others do it. I taught math so this business is like one giant algebra question. I calculate for waste, I calculate for the xacto blades, I calculate for the fabuloso to clean the shop. AND can we even talk about alcohol. (no. not to drink, although teachers are great drinkers).

 

[Christian @ 2CT Media]

I honestly think you've answered my question the best. I've got pricing in the area, I know what my overhead costs are. I'm building and g


I am doing all of these things. This IS my first business. I've been doing it a couple of years and have inched my way up. I retired from teaching. And because I have that teaching background, I am constantly researching. I ask a lot of questions from customers about what they want and some eat up the questions and others want to know why I need to ask so many questions. I ask EVERYONE questions. It's all information that I use to gauge pricing, the market, how others do it. I taught math so this business is like one giant algebra question. I calculate for waste, I calculate for the xacto blades, I calculate for the fabuloso to clean the shop. AND can we even talk about alcohol. (no. not to drink, although teachers are great drinkers).

You are on the right track. I wasn't trying to tell you that you were doing anything wrong, I was sharing the same process I went through 11 years ago and learned that none of what others say is ever going to be correct for your unique situation.

Our process now involves asking questions of clients, peers, and competitors to build a market window and then comparing it to our unique costs to formulate a price that fits our target margins. Sometimes we aren't the best fit on pricing so we look for solutions to move into that market if we deem it a potentially profitable one.

 

[Geneva Olson]

You are on the right track. I wasn't trying to tell you that you were doing anything wrong, I was sharing the same process I went through 11 years ago and learned that none of what others say is ever going to be correct for your unique situation.

Our process now involves asking questions of clients, peers, and competitors to build a market window and then comparing it to our unique costs to formulate a price that fits our target margins. Sometimes we aren't the best fit on pricing so we look for solutions to move into that market if we deem it a potentially profitable one.

Thank you for that.

I remember years ago when I was in elementary school, we took a field trip down to Galveston to a guy who PAINTED billboards. He showed us the process. I remember being in awe of the process. To look at that 40 years later and realize that we have come into a technology and I am PRINTING BIG graphics for big signs and vehicles. It's a cool feeling. and beats teaching hands down ANY DAY. Especially with the corona looming everywhere.

 

[BALLPARK]

Another thing you could do is use our website and double or triple the prices for a general rule of thumb. Even if you don't buy from us.

https://www.firesprint.com

In any case, these tools are all a starting point. Pricing is about 50% science, 50% art of the market.

Highly recommend that you add them as a vendor. They have great prices and it's easy to profit on quick turnarounds with them. They also have a great deal of marketing resources that can help increase your brand's image as a professional. I wish I would have found them when we first started as that alone would have helped us grow faster! We have our own marketing resources now, but man it took many, many, many hours away from other work that we could have been focusing on instead of creating our own.

 

[BALLPARK]

I seem to always be curious about pricing. I just want to make sure I'm priced right in my market....Trying to stay abreast pricing in the area. I know the generalities in the area, but I'm curious. Does anyone else use this website? http://thesignexpert.com

Is it fairly accurate? I kind of use it as a gauge at times and sometimes I'm off A LOT and other times Im in the same ballpark.
Just curious more than anything else.

I've not used it... Not saying it's not accurate. But when it comes to sales the price will be determined on the qty and the area of the sale. Most every industry type in the world will price review the local competition. I recommend that you look into your area's sales. Most clients are willing to share what the other company is charging as they hope you will go lower. Once you find out the other prices then dial in what you need to do to keep your doors open. You will find some that charge far more than you and others that charge far less than you. It's a long race... you will find your pricing points in due time.

Good luck...

 

[Billct2]

I agree about knowing the competitions price. Lots of people say it doesn't matter what competitors charge you have to set your own prices. Which is true to an extent. But knowing the market is important. You may be leaving money on the table with some products, or wasting your time trying to compete on others.