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Pricing signage can feel like a delicate balancing act – too high and you risk losing the job, too low and you’re eating into your profits. Craig Brown, Chairman of the BSGA, has seen it all and shares his insights on getting pricing right, staying competitive, and avoiding common pitfalls.
Start with the client's budget - even when they don’t want to share it
One of the biggest challenges in pricing is understanding what your client is willing to spend. “You need to know if they’ve got the budget for a Mini or a Rolls Royce,” Craig explains. “I’ve walked onto an industrial estate, seen an immaculate building, and assumed the budget was big, only to find out they were looking for the cheapest option possible.”
His advice? Ask the right questions early on. “A good brief helps you tailor materials and solutions within their price range rather than over-engineering something they can’t afford.”
The supply chain can make or break your pricing
Material costs are in constant flux, and that can wreak havoc on pricing if you’re not keeping up. “Pre-COVID, you could get almost anything on demand. Now, suppliers don’t hold the same stock levels, and prices change weekly,” Craig says.
Having strong supplier relationships is key. “Good suppliers, like Sign Trade Supplies , help you navigate stock issues, pricing shifts, and material alternatives. If you’re winning a job based on turnaround time but can’t get the materials, that’s a disaster.”
He also stresses the importance of understanding lead times. “It’s no good pricing a job based on a material you can’t get for four weeks. If your supplier tells you there’s a substitute that’s available now and costs 10% less, that’s a win.”
Fixed pricing can be a trap
Fixed-price contracts used to be the norm, but in today’s volatile market, they can be risky. “I used to see price increases once a year. Now, it’s monthly, sometimes even weekly,” Craig notes. “If you’re locked into a price and materials jump 20%, that’s coming straight out of your margin.”
His recommendation? “Always include a validity period in your quotes; 30 days is standard now. I still see smaller sign companies making the mistake of not doing this, and six months later, they’re stuck honouring a price that no longer works.”
Common pricing mistakes that eat into profits
Signmakers often underestimate how small pricing errors can add up. “I see people round prices down all the time – pricing a component at £105, then rounding it down to £99. Do this across the board, and your bottom line is the only thing taking a hit.”
Another rookie mistake? Forgetting to price both sides of a double-sided sign. “It sounds obvious, but I’ve seen it happen more times than I can count. If someone makes that mistake more than twice, they’re probably in the wrong job!”
Craig also warns about underpricing installation time. “People think they’ll be in and out in an hour, but what happens when the site isn’t ready, or access is trickier than expected? Build in contingency time – otherwise, you’re working for free.”
Speed vs. strategy - when to submit your quote
A common misconception is that the first quote in wins the job. “I don’t want to be the first in; I want to be second or third,” Craig explains. “If I’m too early, the client is still waiting for other quotes. If I’m later, I can have a real conversation about what the others have quoted and how my price compares.”
Following up is just as important. “Your job isn’t done when you send the quote. It’s done when the job is paid for. Too many signmakers send a quote and just wait. Check in, make sure they understand why you’ve recommended certain materials, and position yourself as an expert, not just a vendor.”
Pricing as part of your sales process
In the end, pricing isn’t just about numbers; it’s about relationships and expertise. “People buy from people,” Craig says. “If you only send a quote and let price be the only factor, they’ll choose the lowest. If you take the time to walk them through your recommendations, they’ll see the value in what you bring.”
The right pricing strategy isn’t just about making sales; it’s about making them profitably. By understanding budgets, staying on top of supply chain changes, and being strategic about how and when you quote, you can set your sign business up for long-term success.
Key Article Takeaways
Always start by understanding your client's budget —even if they’re reluctant to share it.
Stay agile with your supply chain ; build strong supplier relationships to manage changing material costs and lead times.
Avoid fixed pricing traps by including clear validity periods (e.g., 30 days) on your quotes.
Small pricing mistakes quickly add up —double-check your calculations and build contingency into your installation times.
Timing your quotes strategically matters ; being second or third can give you a competitive advantage.
Pricing is a sales tool —engage clients with your expertise, not just your numbers.