When it comes to pricing, the sign industry likes to follow a basic rule that states all retail pricing should be based on the cost of your materials, plus a 30% markup to account for your skills, labor, and input. It’s a great approach to prescribe to day-1 beginners, but it’s not perfect. While this may work for aluminum sign blanks and basic monocolor designs, this formula could devalue your product and cheat your bottom line with some of the more time and labor-intensive items in your inventory.
In today’s post, we break down some basic pricing strategies beginners can use to design their business model when designing, manufacturing, and selling banners and signs. Read on to learn some of the business best practices that have helped the Signworld team distinguish itself from other sign companies, and set up our franchise family for success all across the country.
Banners are a mainstay in the digital graphics world and will account for a huge chunk of your revenue as a Signworld franchise owner. For that reason, it’s crucial that you get this one right; too much will drive the lion’s share of your clientele to competitors, but too little will seriously impact your bottom line come year’s end.
While we can’t prescribe a static price for all banners, we can give you a market standard to work with. Most digitally printed banners will go for around $8 per square foot. Some people will sell a 24” wide banner with spot color vinyl graphics at around $12.50 per foot. You can lower this price slightly to reward loyal customers if you’re being hired to produce something simple, like a one-color banner in cut vinyl. Otherwise, 2-3 color banners should fall around this price point.
If you’re having to start from scratch, don’t forget to tack on a design fee, because your expertise is adding value to the equation. A well-designed, full-color banner has much more value than some stock item picked out of a catalogue. Beyond the aesthetic appeal, a custom design allows the business owner to add colors, graphics, logos, or content that has been used elsewhere in their advertising campaigns. In doing so, they can reinforce the branding effort they’ve begun, make strong impressions on their customers, and increase the return-on-investment potential of every marketing dollar. Design fees can be set up for hourly billing, or charged in the form of a flat rate. Some companies charge upwards of $600-800 dollars on top of their standard prices! Don’t worry, this isn’t a way to gouge your clients; design fees are market standards.
- Magnetic signs. Industry standards vary from $40-199 for vinyl signs with mono or dual colors. If your sign company is just getting started, you will want to charge from the lower end of the spectrum, but don’t be afraid to ask for what you’re worth.
- Real estate signs. Real estate sign price standards vary depending on the material you choose. Aluminum signs range from $75-125, while corrugated plastic is much cheaper, sitting between $10-20 each. Don’t be discouraged by the low sales price with corrugated plastic, as this signage style is typically bought in bulk.
Learn more about Signworld’s pricing (and how it benefits our franchisees and clients alike!) at http://www.signworld.org.
Signworld is a national organization with more than 300 independently owned sign companies, which provide commercial custom signage and graphics. It’s personable, creative, rewarding and ideal for people-oriented individuals who have the desire to learn how to manage a sales and production business. Signworld has been a part of the industry’s profit and fun since 1988. With over 28 years in the business, Signworld has established itself as the leader in the no-royalties and no-rules sign business concept. The ongoing support and training along with state-of-the-art equipment helps leave the competition behind. For more details visit – https://signworld.org