Staying open and profitable

[Goatshaver]

Hey guys,

Since I'm slow right now I've got a bit more time to think about things going on with my business. Well to say the least the past year and a half has been great and really busy, even during this COVID time, I've stayed busy.

I'm finding things are slowing down, or I'm losing business to other competitors in the area that are more well off than I am equipment wise and they can offer more products. I just have one Epson S40600 and an old roland. I had a part-time job to help with income but as of this week I've been let go from that due to COVID and business decline so now I'm just on my own.

I've quoted a few jobs for people on things I can't do, like roll labels, through Stouse but it seems after the mark-up they never come back, assuming they have found a better price elsewhere or it's stuff I can't do. I have zero experience with wall graphics or vehicle lettering so I can't just pickup any of those jobs.

How do you keep things going when it gets slow?

 

[FatCat]

Many will tell you it's more efficient and profitable to specialize in a limited amount of offerings as a sign shop. (Channel letters only, vehicle wraps only, etc...) And while I don't disagree with that on paper, it can leave you in a pickle if that revenue stream dries up. I've kept my shop very diverse and that way the more we can offer, the more chance someone will bring that work to us, or at least give us a chance to bid.

 

[2B]

spend this time improving your presence and knowledge.

• social media (Facebook, Instagram, Twitter
  
• website
• call up the people who you bid to, ask them why.
• create a "special" - EXAMPLE order 2 sets of vehicle mags and get 6 company decals
• Outsourcing is a very HELPFUL tool when used correctly, do not think EVERYTHING has to be done in house

you mention vehicles, trying wrapping / lettering your yours and drive around
use scrap material, 2 weeks later change something


IMO there are better options than Stouse, their pricing RARELY wins or the margin is soo small it is pointless

 

[iPrintStuff]

Helpful to follow market trends. Before this we rarely ran any floor vinyls. Now we’re running 2-3 rolls a day. Can’t get away from the stuff lol

 

[ikarasu]

It's hard to say without knowing your business. Are you a one man show? Do you have sales reps?

Do you rely on word of mouth.... Or do you actively go out trying to find new business?

Outsourcing is great. What's your markup? If you're trying to make as much profit outsourcing you'll never win. Keep in mind you don't have the labor, machine wear and tear, material/ink and other overheard when outsourcing... You need to figure out how long it'll take you to do the outsourcing, add a few points and enjoy the cash. Or mark it up for what you would mark it up if you were doing it in house. There's a balancing act.

Just remember.... It's not a race to the bottom. You may be tempted to drop your pricing to nothing just to get work, but that'll only hurt you in the long run.

 

[zspace]

Your post starts off saying business has been great for the last year and a half even with COVID. If you're talking about a seasonal slowdown, we have a few lists that pay rewards when business picks back up.

Train. Look for weaknesses and gaps and find ways to overcome them and be more profitable. Cross train employees on equipment. Practice new skills like wrapping a wall or vehicle (employees practice on our building, parking lot and vehicle all the time). Update photoshop skills to offer more design services. Request samples of new materials to try printing.

Clean and Organize. Find material we can re-purpose. Get rid of old stock to make space for new products. Organize tools and spaces to be more efficient. Sharpen blades on saws and cutters. Review facility layout and processes to organize for more efficient workflow.

Maintenance. What needs attention? Change the oil in company vehicles and air compressors. Deep clean printers and other equipment. Freshen up the showroom area - paint, prints, samples, etc. Change the graphics on the front windows

Cold Call. Sales and service people focus on cold calls to build prospect lists and follow up on customers they haven't heard from for awhile.

Hope you find some of these to be helpful.

Alan

 

[Goatshaver]

Awesome! Thanks guys! This still all new to me and I've never advertised, it's all been word of mouth for me since that is how I started. I've got a good rep among a lot of people and that's most important is taking care of my customers. I value customer service as the most important piece of the puzzle. I like to have a good rapport with customers no matter what the job. Guess it's time to look into other channels of revenue and getting my name out there more.

It's hard to say without knowing your business. Are you a one man show? Do you have sales reps?

Do you rely on word of mouth.... Or do you actively go out trying to find new business?

Outsourcing is great. What's your markup? If you're trying to make as much profit outsourcing you'll never win. Keep in mind you don't have the labor, machine wear and tear, material/ink and other overheard when outsourcing... You need to figure out how long it'll take you to do the outsourcing, add a few points and enjoy the cash. Or mark it up for what you would mark it up if you were doing it in house. There's a balancing act.

Just remember.... It's not a race to the bottom. You may be tempted to drop your pricing to nothing just to get work, but that'll only hurt you in the long run.

Yes I'm a one man show here. Right now I don't look for any sales and I've been pretty busy without having to do that and just having repeat and customers referred by word-of-mouth.
I've only don't one outsource job and I did a 30% markup, which I feel is a decent amount but like you said I can't rely on doing that.

This is all learning for me on the non-production side, it just feels overwhelming at times to think about it.

 

[Krissy Louderback]

Be active on your social media page(s). I was told a long time ago to post something to my business FB page at least 3x per week. The more interaction others have with your page make you seem more "relevant" to the Google algorythms and will get you up higher in Google searches. Definately reach out to your clients for Google reviews. Almost ALL of my new clients mention our presence on Google and all of our 5 star reviews. It makes it easy for them to choose you over a competitor.

 

[Stacey K]

This might sound weird but...do you happen to have a dirt race track near you? Starting with lettering race cars is a great way to transition to vehicles. You can sponsor a car and go all out with the design, throw your name all over it advertise it on FB. Race cars, especially the lower classes are usually beat up so it's actually good practice. They are only concerned with what the car looks like from the stands so your mistakes while learning will never be seen. They often buy decals and team shirts too. That is how I started and I transitioned away from them as my business grew. Now I only make the lettering, I won't apply it.