Many sign shops might have a specific way of doing things just because that’s the way they’ve always done it, but that doesn’t always mean it’s the best way to do it. We know that everyone has different ways of pricing channel letters, and if your way works for you, that’s great. You want to feel confident knowing that you’re giving your customers accurate, competitive rates while also ensuring that you’re making a profit off of your projects. At shopVOX, our custom pricing engine allows you to build your product pricing any way you like.
If you need assistance pricing channel letters, let shopVOX give you some help. Follow these tips to see one way that shopVOX handles pricing channel letters.
Find Your Desired Method
First, you need to figure out how your sign shop charges for channel letters. You might find people charging by the number of letters you use, by upright inch, or square foot. One way to consider is to price channel letters based on the total circumference of the whole project. It’s up to you how you’d like to do this at your sign shop, but whichever way you choose, you’ll want to make sure that you charge enough to cover costs and make a profit. Pricing by the total circumference is one way of determining the most accurate price for the project.
It’s important to find a pricing method that fits your sign shop best, and not everything that other sign shops do will work for you, even if others have had a lot of success with it. Sign shops that have been around for a long time probably already have a set way of doing things, but if you’re a newer business, you might need some extra help here. Our print shop software can help make pricing channel letters for your projects easier, no matter how you decide to do it. You can make adjustments in shopVOX when pricing channel letters so that it reflects your preferred method.
Determine the Granular Cost
When figuring out the cost of channel letters, you need to figure out how much the cost of the materials you’ll need to use will be. The cost for these materials can change significantly if you make even slight changes to the project, so this is important to understand. You want to be as specific as you can be when figuring out the granular cost of the materials for channel letters before you get any further. Things like what materials you use and what lighting, if any, the customer wants can drastically change how much you spend on materials and how much you need to charge your customer. Even the font you use for your channel letters can impact exactly how much you’ll need to complete a project. Although this sometimes might only make a slight difference, it can add up and take away from your profit if you don’t account for all of the materials you need.
Figure Out the Cost for Labor
The cost of materials used for channel letters isn’t the only thing you need to consider when determining the price. Determining the cost of labor is an equally important part of pricing channel letters. This is especially important for pricing channel letters, since you have people from multiple departments putting in hours of work for each of these projects that you need to account for. Your team will be putting in a lot of work for design, routing, bending cans, applying trim caps, and assembly so the cost needs to reflect this to compensate everyone involved. Be careful while getting into the cost of labor for your channel letters, so you don’t overlook any department or under-estimate how long certain work takes to be completed. Established sign shops may have an easier time determining the cost of labor when they have enough experience to know how long a job should take, but this might take more work if you’re just getting started.
When you’re determining the cost of channel letters, you want to be able to show your customers what the costs of their project are going to, so it’s important to be as specific as possible. This is something you’ll be able to do using shopVOX to create a quote for your customers. Our sign shop software gives you a place to add in all of the details that go into pricing channel letters for your customers.
Learn more about how shopVOX can help you run things at your sign shop.