Why charge more than VistaPrint

[CentralSigns]

Of late I have been put to the task of explaining why my prices are double VistaPrint. I am not attacking VistaPrint they were merely the company I was compared to. It could be any high volume too low price shop/factory. My prices are actually $7-10 per sq ft which is about double VistaPrints before add on price. Some claim this is market price. I don't think I overcharge for my products, but the uninformed may. I asked in a post several days ago what others were saying or doing with this issue. This is a reply to a customer that I recently sent out after much deliberation. I thought I would share it with all, as a number of us are caught in the same fold.

You are right I am more in price than online sellers. Please feel free to shop the lowest price. But for the record it has taken me several days to decide the best way to respond.

First lets look at VistaPrint, I don't charge Upload Fees, Outdoor Material Fees, Document Proof Fees, Shipping , Handling or any other hidden fees in addition to the 1/2 my price they quoted.

When someone wants a banner I come by measure it, I offer advice on the best product for the application, I get artwork, I work out the layout, I spell check the artwork, I find the right font, I find the clipart, picture, I come by again and show the customer the finished product before production, I make sample letters and supply viewing distance charts, I recreate logos from pictures of logos, I build the needed logos from scratch, I build logos and identities from scratch for some businesses entirely, I often re-jig the proofs several more times, sometimes the customer decides he wants something entirely different and I start again or not at all, then I get approval, I offer credit to 1/2 the cost of the product and expect payment 7-10 days net, I occasionally get payment 60 days latter no interest, I used quality materials, I use quality ink settings, If i can't produce it I send it to someone who can and probably don't charge much extra for that(<30%), I custom make the banner for application you choose where grommets should go or I make it to special specs, say pockets and snaps, I print or cut it, offer non standard sizes, I hand deliver it in person, I sometimes attempt delivery quite a few times, I make changes if the customer is really off on it, I offer to install it occasionally, I review the product with the customer, I stand behind the work, I remake it if it shreds in the first week, I offer the best suggestions on how to install it so it doesn't shred, I maintain the art work in several formats over several machines, I burn CD's of the artwork for free, I deal with all material supplier companies when the product prematurely fails, I remake the failed product to exact specs and I surely offer more but thats all I could think of for now.

When little Joe wants a fundraising banner for the hockey league I give one free, when Sally wants one for a soccer fundraiser I make one for free, and will for any other minor sport that needs one. They just need ask. Sometimes I make things at cost for non-profit groups and have even offered to on my own. If someone is deathly ill and needs assistance we help financially, emotionally or physically. VastaPrint is never there for you community or the people in it. Our business is part of the Community, and must continue to be a part of it, to be successful.

Lets look at the specialty shoes you provide, I'm sure they can be had for a cheaper price somewhere. Why do I shop locally, say in your shop as opposed to online. Well you offer the expertise of the best shoe for the application, you custom fit it, if you don't have it you get it in, if it just doesn't work you may take it back same day and clean, you offer to broker the warranty, you will get us another when it wears out.

All these things mentioned above go into customer service, I am sure I'll remember many more, but this is good for now. I do not make very much considering the time it takes to complete all the tasks I outlined, nowhere near what a plumber or electrician makes for their time. I hope I have answered the question you asked. This is the reasoning I have for charging more, I could take your artwork and charge you 40% less like VistaPrint, and stop there letting you create or decide all that needs done to create a good quality banner. No hard feelings if you decide to go to a wholesale banner supply company, feel free. I just wanted to answer the question you posed. I'll try to get down to your shop in the next day or so if I can, so think about what I've said here, and we can discuss it in more detail at that time.​

It wasn't my intent to burn anyone or ruffle any feathers. Any comments would be gladly taken, as I may have missed something. Hope this helps another smaller shop find it's way as well, I think I found mine.

 

[iSign]

I have written like you just did on many occasions.
I try not to anymore.

I will give you what I consider to be a constructive critique.

That email already went out, but I will suggest an exercise.
There is a friend here who has helped me edit my writing several times & I think you could use similar help.

I read your entire post as a courtesy... I didn't want to read it, but I did... so I would be in a fair position to comment.

It is 4 to 5 times too long. Your client will not want to read that.. guaranteed.. and they probably won't...

write it again, and cut it in half... by the time you do that, you will feel twice as proud of it, and will feel like you just cleaned your office and lost 10 pounds... light on your feet, clean, organized... ready to tackle anything...

Now you are ready to tackle the next thing...
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edit it down to half again!!
...now you will really feel great.. half that crap you needed to say just to vent... hell, the client won't read it, so saying it to him has no value.. say it here & then send your next client the drawn & quartered version...

I could tell you what parts I would keep, but I'm sure if you really try to pare it down, you will know what to cut...

and, lastly.. YOU DO TOO GOD DAMN MUCH FOR $10/ SQ. FT... Geeze.. if you really do personal on-site consultations, redraw logos, sample letters & banner installations... you can't be really making any money on that banner... if that's what kind of service you gave the guy going to vista... LET HIM GO!! - HE JUST DID YOU A FAVOR... replace him with someone who gets an email proof, one free BASIC revision, WITHOUT A PROOF.. and picks up their own dang banner...

 

[Fitch]

+1 to what Doug said

 

[CentralSigns]

I actually did give him a distance chart and sample letter to see if he could see it from the overpass. He is an old customer I did his first sign for him when he came to Canada from Brittan(business owner/fastrack immigration deal). The sign still looks like day one and he's still as proud of it as the day he opened.

Anyways I just listed some of the stuff we do as sign shops for any customers. Sometimes it's just in our heads, we may only do a few things. I certainly didn't do all that for him. But I do often deal in person laptop in hand. Thanks for your comments ISign your right as always.

 

[mountaingraphic]

I actually did give him a distance chart and sample letter to see if he could see it from the overpass. He is an old customer I did his first sign for him when he came to Canada from Brittan(business owner/fastrack immigration deal). The sign still looks like day one and he's still as proud of it as the day he opened.

Anyways I just listed some of the stuff we do as sign shops for any customers. Sometimes it's just in our heads, we may only do a few things. I certainly didn't do all that for him. But I do often deal in person laptop in hand. Thanks for your comments ISign your right as always.

I honestly thought it was a good read and well thought out..The only problem I see is that most people truly do not care the reason why 1 is low/high they just see its gonna save me X Dollars. I have went into reasoning with a customer on many occasions to justify my pricing and you can actually watch them not giving a f$*&..Craziest thing..But hopefully they do understand since they are as well in a business that can be had cheaply with lack of service/support..

You could have also told them "If you don't buy from us we will put up yard signs letting people know they can save half off your shoes by going online" lol..

 

[visual800]

I agree! If someone asks "why" I offer a brief explanation and then let them go. You talk alllllll day about why your product rocks but in the end the customer sees price. Thats all they see. I don't have time to convince others not to use cheap ass products or lessor quality. Its a waste of time LET THEM GO!

You cant save all of them

 

[Farmboy]

The sign still looks like day one and he's still as proud of it as the day he opened.

Yet he want's to bust your balls on price? Your work should speak for it's self. You shouldn't have to keep selling yourself to old customers, doing a great job and offering excellent service will do that for you.

 

[FrankenSigns.biz]

To the best of my knowledge, we have never butted heads with VistaPrint. Most customers know you get what you pay for.

As for customer service, we rarely do on-site consultations. It is time consuming and therefore expensive. In-shop consultations are more effective and infinitely easier to close.

We regularly print for charities and some fundraisers at our best wholesale rates, never at or below our cost, and certainly never for free.

Customer service, good graphic design and a diversified product line has value to your customers. Any person who needs an explanation as to why you won't or can't meet internet pricing, is obtuse and not worth your time.

 

[FatCat]

FWIW - whenever a customer tries to compare my prices to one from an online dealer I usually give them what I call "the hamburger comparison". Sometimes it pisses them off, often times it makes them chuckle and realize there is more to things than price alone. It goes something like this;

CUSTOMER: So what is your price on "INSERT PRODUCT HERE"?

ME: My price would be "INSERT MY PRICE HERE" for that.

CUSTOMER: Wow, you know I can get it for "INSERT LESS THAN MY PRICE HERE" from Cheap Crap-O-Matic online?

ME: "Well, by all means you can order it from there as that is a really low price. However, I can also go to "INSERT LOCAL STEAKHOUSE HERE" and get a really good hamburger for $10-12 or I can go to McDonald's and get one for .99¢....


Now, you really have to be careful on who you use that with. I've had 1-2 people walk out because of it. But I've also had several people actually laugh and place their order because of it.

YMMV

 

[vinylbarry]

I like it and we have people come in after vista print and want us to make one thats better but still want the same price its a fact and I just dont deal with it. If you want something thats going to last weeks go ahead if you want something thats going to last I will be glad to help you.

 

[TheSnowman]

Give them the Tommy Boy line. "You can get a good look at your butcher by stickin' your head up there, but wouldn't ya rather take his word for it? Wait...it's gotta be your bull?"

I had a guy in here the other day that we do business with a lot with the high school, he said they had some stuff online they were gonna order, and his wife had a CriCut that they were going to do stuff with. I told him if he'd just order from me, for $2 more, he'd already have the names printed on them, and everything done, all he'd have to do is pick them up. I told him I won't compete with online, but I will take care of him. It's going to be his choice rather he wants customer service, or save a couple bucks on a few signs.

 

[omgsideburns]

have you ever held any of that vistacrap in your hand? it's embarrassing.

 

[royster13]

I find clients are way different if you find them versus them finding you......I tend to seek clients out and create a "need" for them.....These folks are less price conscious than folks that find me while "shopping".....

 

[Jon Aston]

I think the intent and tone of your letter were excellent. Doug is right. Less is more. I also read about banners shredding (etc) about two times too many. It sounds like a regular occurrence.

Let me help you take a couple of steps back from this one incident and look at the bigger picture.

First, "fire his ass" (etc) sentiments - while supportive and totally understandable - are misguided without knowing the lifetime value of this customer. This fellow has been a customer for a long time. How profitable has he been? How profitable is he likely to be? How much value has and will he create for you in referrals?

Second, times are tough for alot of customers. Even if they happen to be in a region or industry not-so-hard-hit by the global economic crisis, their confidence in the future is probably weak at best. The "recovery" in the US economy is flat and shaky, which affects all of us... and until that changes, it might be prudent to anticipate more of these kinds of surprises from "loyal" customers.

Frankly, sign companies are in a unique position to turn this into opportunity. But will you? If you know what you are doing, you can have a direct, measurable, positive impact on your customer's bottom line. Banners, in particular, are a low risk, low involvement purchase... with potentially high return on investment. Target one or two high visibility or high profile customers to pilot/test banner campaigns. Work with those customers to measure results before and after. Publish case studies on your blog, or website and distribute via your newsletter. Launch a campaign to promote how you're helping businesses thrive in a tough economy. Work with those same customers to test other products... wraps, interior signage, whatever. Feed the campaign.

It really isn't rocket science. Get help if you don't know how.

If you agree with sentiments like "Your work should speak for itself" and "you shouldn't have to keep selling yourself to old customers" (sorry for singling out your comments Farmboy) you are making the mistake of seeing the world as it should be, versus how the world is in reality. On both counts.

I don't care how talented you are, your work doesn't speak for itself. For starters, most customers in the marketplace don't recognize your work when they see it (if they even see it). And every single person on earth (including you) sees your work through their own "filters" - each interprets the world around them through their own, irrational, cognitive biases. Where you see "quality", someone else sees "expensive"... or something totally weird and unpredictable like "I can't live up to the expectation of quality that communicates". Your marketing communications has to speak for your work, and your company's unique value proposition. Does it?

Customer loyalty has to be earned. And nurtured. And earned. Ad infinitum. This is the essence (and the point of) of brand strategy. Branding isn't just about logos and it isn't reserved for big business with massive budgets like Nike and McDonald's. It's about how customer's experience your company day-in and day-out and it's about how you continuously bring value to the relationship. Ultimately, it's about creating loyalty. So how can you do that? First and foremost, you can help them get the results they want. But you can also craft your marketing communications strategy to deliver insights that will help them grow their business. Share what's working for your other customers. Share relevant content you discover on the web. Blog it. Email it.

Finally, to bring the discussion full circle: Don't wait for a crisis (like losing one customer's business to Vista Print) to describe the value you provide in one, private email, to one single customer reactively. "Drip" that information consistently over time... proactively.

Hope that helps.

 

[skyhigh]

Good Post Central. Doug's advice was great, as was Jon's (as always).

I have had customers bring this up as well. I love to tell them the short story about a customer that wanted 1000 business cards they seen advertised for $9.99. After they were finished, their order totaled $90 after upgrade in stock, an uploaded logo, the better print quality they offer...... and lets not forget about shipping.

I tell them I can do the same price structure, and I would only charge $8.99 a thousand.

Works every time........if I get to talk to the customer first that is.

 

[CentralSigns]

Yet he want's to bust your balls on price? Your work should speak for it's self. You shouldn't have to keep selling yourself to old customers, doing a great job and offering excellent service will do that for you.

Thanks for your comments everyone. I will keep a piece of them all. Your right Farmboy, I have been selling signs lately 20% above the competitors price and getting all the work. Never thought that would happen. The perceived value must be there from some of the services I do provide. Jon, I totally get what you have said thanks for the time to give me so many ideas. I think I'll also start a blog and do a product test to see and showcase the value of good a good advertising campaign. Again thanks to all who commented.

 

[300mphGraphics]

I'd shorten up the letter and include this link: http://www.consumeraffairs.com/online/vistaprint.html

 

[p3]

can be summed up real short...

"price is what you pay, value is what you get."

 

[Gino]

The thoughts are good, but not in letter/e-mail form. What you have written above could be said in about 2 minutes in real time. The phrasing and ideas you have stated should be told in person. That was a speech, an eye to eye dialog, not a letter. Also, your grammar is really bad. You go in and out of present, past tense then back and forth and it makes you seem like a pissed off person who is just rambling. Like Jon said, you repeated things too many times. Either, try to find substitute words or eliminate the sentence.

I wanted to read it and had difficulty, so a good customer is going to probalby see the negativity and possibly think the wrong message.

Last thing, most of what you wrote will go over most layman's heads and the information again will be lost.