How Are Sign Companies Pricing Installations?

How do other shops strike the balance between being genuinely helpful and becoming the “free design department” for clients who continually fish for ideas without committing to a project?

Last month and this, our Shop Operations columnist Dale Salamacha suggested inviting collaboration with top clients — “they want to be involved,” he says. However, even with his Top 10, Salamacha limits the time. The clients described in the question above, however, don’t sound like Top 10 candidates; therefore, charging them by the hour seems perfectly reasonable, even smart. If any of them feel that is “nickel and diming,” they do not value your time. Charging means “continual fishing for ideas” should drastically reduce, both weeding out unserious customers or projects, and saving you time.

Is anyone using a phone-answering service? I would love to know others’ experiences. I loathe all the nonsense calls.

After a positve post a couple of months ago about their AI phone attendant, Dawn Homa, owner of Signarama Brighton (Brighton, CO), posted this update on LinkedIn: “Initially, everything was going smoothly; however, we soon encountered unexpected challenges. It turns out that AI can experience hallucinations, leading to inaccuracies and a lack of follow-through.” So, maybe AI isn’t quite ready to answer phones yet.

We asked the ST Brain Squad: How do other signshops figure out prices for installation? Do they have a system or just figure how long it will take with materials?

• First, know your break-even point for staff and equipment. [Then] you can easily price almost anything.
• Calculate your shop rate. Then if equipment is involved, mark that up appropriately.
• We have recently migrated away from pricing based on estimated time with materials and [now use] calculations that factor in install, production, as well as overhead costs.
• We’ve found that a hybrid approach works best — part system, part seasoned-gut instinct.
• Figure how many people are needed, types of installations, required tools, distance and time to complete.
• Keep track of all previous jobs and track go-backs as overhead (and employee review). Tabulate and average the estimates based on similar circumstances.
• Compare local shops’ pricing. Inspect and plan when doing a site check prior to installation.
• Figure the time and materials then add 15% for screw-ups, etc.
• We use our management program and input how many hours and installers. Then add travel time and whatever materials/equipment are needed. The program adds overhead. Then determine your mark-up percentage and you have your install price.